11 U.S.C. § 510 — Subordination
submitted 48 years ago by Pub. L. 95-598 to r/title-11-BANKRUPTCY · 198 words · no verdicts yet
A translation hasn’t been published for this section yet. The official text below is complete and authoritative.
A subordination agreement is enforceable in a case under this title to the same extent that such agreement is enforceable under applicable nonbankruptcy law.
For the purpose of distribution under this title, a claim* arising from rescission of a purchase or sale of a security of the debtor* or of an affiliate* of the debtor, for damages arising from the purchase or sale of such a security, or for reimbursement or contribution allowed under section 502 on account of such a claim, shall be subordinated to all claims or interests that are senior to or equal the claim or interest represented by such security, except that if such security is common stock, such claim has the same priority as common stock.
Notwithstanding subsections (a) and (b) of this section, after notice and a hearing, the court may—
under principles of equitable subordination, subordinate for purposes of distribution all or part of an allowed claim to all or part of another allowed claim or all or part of an allowed interest to all or part of another allowed interest; or
order that any lien securing such a subordinated claim be transferred to the estate.
Source credit: (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2586; Pub. L. 98–353, title III, § 451, July 10, 1984, 98 Stat. 375.)
- 1978Enacted · Pub. L. 95-598 · 92 Stat. 2586
- 1984Amended · Pub. L. 98-353 · 98 Stat. 375
A history note hasn’t been published yet. The record shows enactment by Pub. L. 95-598 on 1978-11-06.
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