(a) If, after the date of the filing of the petition, an entity 
enters into a transaction with the debtor, in a manner that would have 
made such entity a customer had such transaction occurred before the 
date of the filing of the petition, and such transaction was entered 
into by such entity in good faith and before the qualification under 
section 322 of this title of a trustee, such entity shall be deemed a 
customer, and the date of such transaction shall be deemed to be the 
date of the filing of the petition for the purpose of determining such 
entity's net equity.
    (b) An entity does not have a claim as a customer to the extent that 
such entity transferred to the debtor cash or a security that, by 
contract, agreement, understanding, or operation of law, is--
        (1) part of the capital of the debtor; or
        (2) subordinated to the claims of any or all creditors.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2613; Pub. L. 97-222, Sec. 12, 
July 27, 1982, 96 Stat. 238.)


                      Historical and Revision Notes

                        senate report no. 95-989

    Section 746(a) protects entities who deal in good faith with the 
debtor after the filing of the petition and before a trustee is 
appointed by deeming such entities to be customers. The principal 
application of this section will be in an involuntary case before the 
order for relief, because Sec. 701(b) requires prompt appointment of an 
interim trustee after the order for relief.
    Subsection (b) indicates that an entity who holds securities that 
are either part of the capital of the debtor or that are subordinated to 
the claims of any creditor of the debtor is not a customer with respect 
to those securities. This subsection will apply when the stockbroker has 
sold securities in itself to the customer or when the customer has 
otherwise placed such securities in an account with the stockbroker.


                               Amendments

    1982--Pub. L. 97-222, Sec. 12(c), substituted ``claims'' for 
``claim'' in section catchline.
    Subsec. (a). Pub. L. 97-222, Sec. 12(a), substituted ``enters into'' 
for ``effects, with respect to cash or a security,'', struck out ``with 
respect to such cash or security'' wherever appearing, and substituted 
``the date of the filing of the petition'' for ``such date'', and 
``entered into'' for ``effected''.
    Subsec. (b). Pub. L. 97-222, Sec. 12(b), substituted ``transferred 
to the debtor'' for ``has a claim for'' in provisions preceding par. 
(1), and struck out ``is'' in par. (2).