Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

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TITLE 11–BANKRUPTCY

CHAPTER 7–LIQUIDATION

Sub Chapter III – Stockbroker Liquidation

Sec. 745. Treatment of accounts

    (a) Accounts held by the debtor for a particular customer in 
separate capacities shall be treated as accounts of separate customers.
    (b) If a stockbroker or a bank holds a customer net equity claim 
against the debtor that arose out of a transaction for a customer of 
such stockbroker or bank, each such customer of such stockbroker or bank 
shall be treated as a separate customer of the debtor.
    (c) Each trustee's account specified as such on the debtor's books, 
and supported by a trust deed filed with, and qualified as such by, the 
Internal Revenue Service, and under the Internal Revenue Code of 1986, 
shall be treated as a separate customer account for each beneficiary 
under such trustee account.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2613; Pub. L. 97-222, Sec. 11, 
July 27, 1982, 96 Stat. 238; Pub. L. 98-353, title III, Sec. 483, July 
10, 1984, 98 Stat. 383; Pub. L. 103-394, title V, Sec. 501(d)(28), Oct. 
22, 1994, 108 Stat. 4146.)


                      Historical and Revision Notes

                        senate report no. 95-989

    Section 745(a) indicates that each account held by a customer in a 
separate capacity is to be considered a separate account. This prevents 
the offset of accounts held in different capacities.
    Subsection (b) indicates that a bank or another stockbroker that is 
a customer of a debtor is considered to hold its customers accounts in 
separate capacities. Thus a bank or other stockbroker is not treated as 
a mutual fund for purposes of bulk investment. This protects unrelated 
customers of a bank or other stockholder from having their accounts 
offset.
    Subsection (c) effects the same result with respect to a trust so 
that each beneficiary is treated as the customer of the debtor rather 
than the trust itself. This eliminates any doubt whether a trustee holds 
a personal account in a separate capacity from his trustee's account.

                       References in Text

    The Internal Revenue Code of 1986, referred to in subsec. (c), is 
classified generally to Title 26, Internal Revenue Code.


                               Amendments

    1994--Subsec. (c). Pub. L. 103-394 substituted ``Internal Revenue 
Code of 1986'' for ``Internal Revenue Code of 1954 (26 U.S.C. 1 et 
seq.)''.
    1984--Subsec. (a). Pub. L. 98-353 inserted ``the debtor for'' after 
``by''.
    1982--Subsec. (c). Pub. L. 97-222 substituted ``Each'' for ``A''.


                    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 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.



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