CHAPTER 3CASE ADMINISTRATION
Sub Chapter IV Administrative Powers
Sec. 366. Utility service
(a) Except as provided in subsection (b) of this section, a utility
may not alter, refuse, or discontinue service to, or discriminate
against, the trustee or the debtor solely on the basis of the
commencement of a case under this title or that a debt owed by the
debtor to such utility for service rendered before the order for relief
was not paid when due.
(b) Such utility may alter, refuse, or discontinue service if
neither the trustee nor the debtor, within 20 days after the date of the
order for relief, furnishes adequate assurance of payment, in the form
of a deposit or other security, for service after such date. On request
of a party in interest and after notice and a hearing, the court may
order reasonable modification of the amount of the deposit or other
security necessary to provide adequate assurance of payment.
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2578; Pub. L. 98-353, title III,
Sec. 443, July 10, 1984, 98 Stat. 373.)
Historical and Revision Notes
Section 366 of the House amendment represents a compromise between
comparable provisions contained in H.R. 8200 as passed by the House and
the Senate amendment. Subsection (a) is modified so that the applicable
date is the date of the order for relief rather than the date of the
filing of the petition. Subsection (b) contains a similar change but is
otherwise derived from section 366(b) of the Senate amendment, with the
exception that a time period for continued service of 20 days rather
than 10 days is adopted.
senate report no. 95-989
This section gives debtors protection from a cut-off of service by a
utility because of the filing of a bankruptcy case. This section is
intended to cover utilities that have some special position with respect
to the debtor, such as an electric company, gas supplier, or telephone
company that is a monopoly in the area so that the debtor cannot easily
obtain comparable service from another utility. The utility may not
alter, refuse, or discontinue service because of the nonpayment of a
bill that would be discharged in the bankruptcy case. Subsection (b)
protects the utility company by requiring the trustee or the debtor to
provide, within ten days, adequate assurance of payment for service
provided after the date of the petition.
1984--Subsec. (a). Pub. L. 98-353 inserted ``of the commencement of
a case under this title or'' after ``basis''.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98-353 effective with respect to cases filed 90
days after July 10, 1984, see section 552(a) of Pub. L. 98-353, set out
as a note under section 101 of this title.
Section Referred to in Other Sections
This section is referred to in sections 106, 901 of this title.