11 U.S.C. § 361 — Adequate protection
submitted 48 years ago by Pub. L. 95-598 to r/title-11-BANKRUPTCY · 174 words · no verdicts yet
When a creditor's interest in property needs protection during bankruptcy, the trustee has three options. The trustee can make cash payments to cover any drop in the property's value. The trustee can also offer a replacement lien, or give other relief that fully makes up for the loss.
When adequate protection is required under section 362, 363, or 364 of this title of an interest of an entity* in property, such adequate protection may be provided by—
requiring the trustee to make a cash payment or periodic cash payments to such entity, to the extent that the stay under section 362 of this title, use, sale, or lease under section 363 of this title, or any grant of a lien under section 364 of this title results in a decrease in the value of such entity’s interest in such property;
providing to such entity an additional or replacement lien to the extent that such stay, use, sale, lease, or grant results in a decrease in the value of such entity’s interest in such property; or
granting such other relief, other than entitling such entity to compensation allowable under section 503(b)(1) of this title as an administrative expense, as will result in the realization by such entity of the indubitable equivalent of such entity’s interest in such property.
Source credit: (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2569; Pub. L. 98–353, title III, § 440, July 10, 1984, 98 Stat. 370.)
- 1978Enacted · Pub. L. 95-598 · 92 Stat. 2569
- 1984Amended · Pub. L. 98-353 · 98 Stat. 370
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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