ALLcrimesfood&drugstaxestelecomcommercehealthconservationtransportationagricultureveteransbrowse all titles »
0

11 U.S.C. § 361Adequate protection

submitted 48 years ago by Pub. L. 95-598 to r/title-11-BANKRUPTCY · 174 words · no verdicts yet

in plain englishAI-generated · not legal advice

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.

Sections 362, 363, and 364 sometimes require "adequate protection" for someone's interest in property — for example, when the automatic stay blocks them from acting, when the trustee uses, sells, or leases the property, or when the trustee grants a new lien on it. This section lists three ways the trustee can provide that adequate protection: (1) making a cash payment, or ongoing cash payments, to the entity — to the extent its interest in the property has actually lost value because of the stay, use, sale, lease, or new lien; (2) giving the entity an extra or replacement lien, again limited to the amount of value its interest lost; or (3) providing some other kind of relief that gives the entity the "indubitable equivalent" — the full, undoubted equal — of its interest in the property, except that this other relief cannot include the administrative-expense compensation allowed under section 503(b)(1).
the actual law source: uscode.house.gov ↗public domain

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—

(1)

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;

(2)

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

(3)

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.)

history & why it existsrecord from the source credit
  • 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.

all 0 arguments · sorted by: best

0/280

no arguments yet — make the first case