Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

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TITLE 11–BANKRUPTCY

CHAPTER 5–CREDITORS, THE DEBTOR, AND THE ESTATE

Sub Chapter III – The Estate

Sec. 559. Contractual right to liquidate a repurchase agreement


    The exercise of a contractual right of a repo participant to cause 
the liquidation of a repurchase agreement because of a condition of the 
kind specified in section 365(e)(1) of this title shall not be stayed, 
avoided, or otherwise limited by operation of any provision of this 
title or by order of a court or administrative agency in any proceeding 
under this title, unless, where the debtor is a stockbroker or 
securities clearing agency, such order is authorized under the 
provisions of the Securities Investor Protection Act of 1970 or any 
statute administered by the Securities and Exchange Commission. In the 
event that a repo participant liquidates one or more repurchase 
agreements with a debtor and under the terms of one or more such 
agreements has agreed to deliver assets subject to repurchase agreements 
to the debtor, any excess of the market prices received on liquidation 
of such assets (or if any such assets are not disposed of on the date of 
liquidation of such repurchase agreements, at the prices available at 
the time of liquidation of such repurchase agreements from a generally 
recognized source or the most recent closing bid quotation from such a 
source) over the sum of the stated repurchase prices and all expenses in 
connection with the liquidation of such repurchase agreements shall be 
deemed property of the estate, subject to the available rights of 
setoff. As used in this section, the term ``contractual right'' includes 
a right set forth in a rule or bylaw, applicable to each party to the 
repurchase agreement, of a national securities exchange, a national 
securities association, or a securities clearing agency, and a right, 
whether or not evidenced in writing, arising under common law, under law 
merchant or by reason of normal business practice.

(Added Pub. L. 98-353, title III, Sec. 396(a), July 10, 1984, 98 Stat. 
366; amended Pub. L. 103-394, title V, Sec. 501(d)(21), Oct. 22, 1994, 
108 Stat. 4146.)

                       References in Text

    The Securities Investor Protection Act of 1970, referred to in text, 
is Pub. L. 91-598, Dec. 30, 1970, 84 Stat. 1636, as amended, which is 
classified generally to chapter 2B-1 (Sec. 78aaa et seq.) of Title 15, 
Commerce and Trade. For complete classification of this Act to the Code, 
see section 78aaa of Title 15 and Tables.


                               Amendments

    1994--Pub. L. 103-394 struck out ``(15 U.S.C. 78aaa et seq.)'' after 
``Act of 1970''.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not 
applicable with respect to cases commenced under this title before Oct. 
22, 1994, see section 702 of Pub. L. 103-394, set out as a note under 
section 101 of this title.


                             Effective Date

    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.



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Note: For affordable legal assistance The Center For Debt Management highly recommends Standard Legal's Do-It-Yourself Bankruptcy Forms Software Kits. For credit repair services,
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