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
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.
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
1984--Subsec. (a). Pub. L. 98-353 inserted ``the debtor for'' after
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.