CHAPTER 5CREDITORS, THE DEBTOR, AND THE ESTATE
Sub Chapter III The Estate
Sec. 557. Expedited determination of interests in,
and abandonment or other disposition of grain assets
(a) This section applies only in a case concerning a debtor that
owns or operates a grain storage facility and only with respect to grain
and the proceeds of grain. This section does not affect the application
of any other section of this title to property other than grain and
proceeds of grain.
(b) In this section--
(1) ``grain'' means wheat, corn, flaxseed, grain sorghum,
barley, oats, rye, soybeans, other dry edible beans, or rice;
(2) ``grain storage facility'' means a site or physical
structure regularly used to store grain for producers, or to store
grain acquired from producers for resale; and
(3) ``producer'' means an entity which engages in the growing of
(c)(1) Notwithstanding sections 362, 363, 365, and 554 of this
title, on the court's own motion the court may, and on the request of
the trustee or an entity that claims an interest in grain or the
proceeds of grain the court shall, expedite the procedures for the
determination of interests in and the disposition of grain and the
proceeds of grain, by shortening to the greatest extent feasible such
time periods as are otherwise applicable for such procedures and by
establishing, by order, a timetable having a duration of not to exceed
120 days for the completion of the applicable procedure specified in
subsection (d) of this section. Such time periods and such timetable may
be modified by the court, for cause, in accordance with subsection (f)
of this section.
(2) The court shall determine the extent to which such time periods
shall be shortened, based upon--
(A) any need of an entity claiming an interest in such grain or
the proceeds of grain for a prompt determination of such interest;
(B) any need of such entity for a prompt disposition of such
(C) the market for such grain;
(D) the conditions under which such grain is stored;
(E) the costs of continued storage or disposition of such grain;
(F) the orderly administration of the estate;
(G) the appropriate opportunity for an entity to assert an
interest in such grain; and
(H) such other considerations as are relevant to the need to
expedite such procedures in the case.
(d) The procedures that may be expedited under subsection (c) of
this section include--
(1) the filing of and response to--
(A) a claim of ownership;
(B) a proof of claim;
(C) a request for abandonment;
(D) a request for relief from the stay of action against
property under section 362(a) of this title;
(E) a request for determination of secured status;
(F) a request for determination of whether such grain or the
proceeds of grain--
(i) is property of the estate;
(ii) must be turned over to the estate; or
(iii) may be used, sold, or leased; and
(G) any other request for determination of an interest in
such grain or the proceeds of grain;
(2) the disposition of such grain or the proceeds of grain,
before or after determination of interests in such grain or the
proceeds of grain, by way of--
(A) sale of such grain;
(C) distribution; or
(D) such other method as is equitable in the case;
(3) subject to sections 701, 702, 703, 1104, 1202, and 1302 of
this title, the appointment of a trustee or examiner and the
retention and compensation of any professional person required to
assist with respect to matters relevant to the determination of
interests in or disposition of such grain or the proceeds of grain;
(4) the determination of any dispute concerning a matter
specified in paragraph (1), (2), or (3) of this subsection.
(e)(1) Any governmental unit that has regulatory jurisdiction over
the operation or liquidation of the debtor or the debtor's business
shall be given notice of any request made or order entered under
subsection (c) of this section.
(2) Any such governmental unit may raise, and may appear and be
heard on, any issue relating to grain or the proceeds of grain in a case
in which a request is made, or an order is entered, under subsection (c)
of this section.
(3) The trustee shall consult with such governmental unit before
taking any action relating to the disposition of grain in the
possession, custody, or control of the debtor or the estate.
(f) The court may extend the period for final disposition of grain
or the proceeds of grain under this section beyond 120 days if the court
(1) the interests of justice so require in light of the
complexity of the case; and
(2) the interests of those claimants entitled to distribution of
grain or the proceeds of grain will not be materially injured by
such additional delay.
(g) Unless an order establishing an expedited procedure under
subsection (c) of this section, or determining any interest in or
approving any disposition of grain or the proceeds of grain, is stayed
(1) the reversal or modification of such order on appeal does
not affect the validity of any procedure, determination, or
disposition that occurs before such reversal or modification,
whether or not any entity knew of the pendency of the appeal; and
(2) neither the court nor the trustee may delay, due to the
appeal of such order, any proceeding in the case in which such order
(h)(1) The trustee may recover from grain and the proceeds of grain
the reasonable and necessary costs and expenses allowable under section
503(b) of this title attributable to preserving or disposing of grain or
the proceeds of grain, but may not recover from such grain or the
proceeds of grain any other costs or expenses.
(2) Notwithstanding section 326(a) of this title, the dollar amounts
of money specified in such section include the value, as of the date of
disposition, of any grain that the trustee distributes in kind.
(i) In all cases where the quantity of a specific type of grain held
by a debtor operating a grain storage facility exceeds ten thousand
bushels, such grain shall be sold by the trustee and the assets thereof
distributed in accordance with the provisions of this section.
(Added Pub. L. 98-353, title III, Sec. 352(a), July 10, 1984, 98 Stat.
359; amended Pub. L. 99-554, title II, Sec. 257(p), Oct. 27, 1986, 100
1986--Subsec. (d)(3). Pub. L. 99-554 inserted reference to section
1202 of this title.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99-554 effective 30 days after Oct. 27, 1986,
but not applicable to cases commenced under this title before that date,
see section 302(a), (c)(1) of Pub. L. 99-554, set out as a note under
section 581 of Title 28, Judiciary and Judicial Procedure.
Section effective with respect to cases filed 90 days after July 10,
1984, see section 552(a) of Pub. L. 98-353, set out as an Effective Date
of 1984 Amendment note under section 101 of this title.
Section Referred to in Other Sections
This section is referred to in sections 507, 546, 901 of this title.