11 U.S.C. § 552 — Postpetition effect of security interest
submitted 48 years ago by Pub. L. 95-598 to r/title-11-BANKRUPTCY · 328 words · no verdicts yet
Property acquired by the bankruptcy estate or debtor after a case begins generally is not covered by a lien from a pre-case security agreement. Exceptions preserve certain interests in proceeds, products, offspring, profits, rents, and lodging payments, subject to listed statutes and possible court orders.
(a) Except as provided in subsection (b), property acquired by the estate or debtor* after the case begins is not subject to a lien resulting from a security agreement the debtor entered into before the case began.
(b)(1) Except as provided in sections 363, 506(c), 522, 544, 545, 547, and 548 of this title, if a debtor and an entity* entered into a security agreement before the case began, and the security interest covers the debtor’s property acquired before the case began and proceeds, products, offspring, or profits of that property, the security interest also covers those proceeds, products, offspring, or profits acquired by the estate after the case began. This applies only to the extent provided by the security agreement and applicable nonbankruptcy law, unless the court, after notice and a hearing and based on the equities of the case, orders otherwise.
(b)(2) Except as provided in sections 363, 506(c), 522, 544, 545, 547, and 548 of this title, and despite section 546(b) of this title, if a debtor and an entity entered into a security agreement before the case began, and the security interest covers the debtor’s property acquired before the case began and amounts paid as rent for that property or fees, charges, accounts, or other payments for using or occupying rooms and other public facilities in hotels, motels, or other lodging properties, the security interest also covers those rents and payments acquired by the estate after the case began. This applies only to the extent provided by the security agreement, unless the court, after notice and a hearing and based on the equities of the case, orders otherwise.
Except as provided in subsection (b) of this section, property acquired by the estate or by the debtor* after the commencement of the case is not subject to any lien resulting from any security agreement entered into by the debtor before the commencement of the case.
Except as provided in sections 363, 506(c), 522, 544, 545, 547, and 548 of this title, if the debtor and an entity* entered into a security agreement before the commencement of the case and if the security interest created by such security agreement extends to property of the debtor acquired before the commencement of the case and to proceeds, products, offspring, or profits of such property, then such security interest extends to such proceeds, products, offspring, or profits acquired by the estate after the commencement of the case to the extent provided by such security agreement and by applicable nonbankruptcy law, except to any extent that the court, after notice and a hearing and based on the equities of the case, orders otherwise.
Except as provided in sections 363, 506(c), 522, 544, 545, 547, and 548 of this title, and notwithstanding section 546(b) of this title, if the debtor and an entity entered into a security agreement before the commencement of the case and if the security interest created by such security agreement extends to property of the debtor acquired before the commencement of the case and to amounts paid as rents of such property or the fees, charges, accounts, or other payments for the use or occupancy of rooms and other public facilities in hotels, motels, or other lodging properties, then such security interest extends to such rents and such fees, charges, accounts, or other payments acquired by the estate after the commencement of the case to the extent provided in such security agreement, except to any extent that the court, after notice and a hearing and based on the equities of the case, orders otherwise.
Source credit: (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2602; Pub. L. 98–353, title III, § 466, July 10, 1984, 98 Stat. 380; Pub. L. 103–394, title II, § 214(a), Oct. 22, 1994, 108 Stat. 4126; Pub. L. 109–8, title XII, § 1204(2), Apr. 20, 2005, 119 Stat. 194.)
- 1978Enacted · Pub. L. 95-598 · 92 Stat. 2602
- 1984Amended · Pub. L. 98-353 · 98 Stat. 380
- 1994Amended · Pub. L. 103-394 · 108 Stat. 4126
- 2005Amended · Pub. L. 109-8 · 119 Stat. 194
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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