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11 U.S.C. § 752 — Customer property

submitted 48 years ago by Pub. L. 95-598 to r/title-11-BANKRUPTCY · 192 words · no verdicts yet

in plain englishAI-generated · not legal advice

The trustee must distribute customer property first and proportionally to customers based on their allowed net equity claims, subject to a stated administrative-claim exception. Any remaining property and unpaid customer claims are handled under section 726, and certain remaining collateral is divided between the general estate and customer property.

(a) The trustee must distribute customer property proportionally among customers, based on and up to the amount of each customer’s allowed net equity claim. These distributions have priority over all other claims, except claims of the type listed in section 507(a)(2) of this title when those claims result from administering the customer property.

(b) (1) The trustee must distribute customer property left after the distribution under subsection (a) according to section 726 of this title.

(2) Unless section 510 of this title provides otherwise, if customer property does not fully pay a customer’s allowed net equity claim, the unpaid part is a claim eligible for distribution under section 726 of this title.

(c) After a security interest created under the debtor’s security agreement is liquidated, any remaining cash or security, except property excluded under section 741(4)(B) of this title, must be divided between the general estate and customer property in the same proportion in which those two pools were subject to the security interest.

the actual law source: uscode.house.gov ↗public domain
(a)

The trustee shall distribute customer property ratably to customers on the basis and to the extent of such customers’ allowed net equity claims and in priority to all other claims, except claims of the kind specified in section 507(a)(2) of this title that are attributable to the administration of such customer property.

(b)
(1)

The trustee shall distribute customer property in excess of that distributed under subsection (a) of this section in accordance with section 726 of this title.

(2)

Except as provided in section 510 of this title, if a customer is not paid the full amount of such customer’s allowed net equity claim from customer property, the unpaid portion of such claim is a claim entitled to distribution under section 726 of this title.

(c)

Any cash or security remaining after the liquidation of a security interest created under a security agreement made by the debtor, excluding property excluded under section 741(4)(B) of this title, shall be apportioned between the general estate and customer property in the same proportion as the general estate of the debtor and customer property were subject to such security interest.

Source credit: (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2614; Pub. L. 97–222, § 15, July 27, 1982, 96 Stat. 238; Pub. L. 98–353, title III, § 484, July 10, 1984, 98 Stat. 383; Pub. L. 109–8, title XV, § 1502(a)(3), Apr. 20, 2005, 119 Stat. 216.)

history & why it existsrecord from the source credit
  • 1978Enacted · Pub. L. 95-598 · 92 Stat. 2614
  • 1982Amended · Pub. L. 97-222 · 96 Stat. 238
  • 1984Amended · Pub. L. 98-353 · 98 Stat. 383
  • 2005Amended · Pub. L. 109-8 · 119 Stat. 216

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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