Sub Chapter III Stockbroker Liquidation
Sec. 749. Voidable transfers
(a) Except as otherwise provided in this section, any transfer of
property that, but for such transfer, would have been customer property,
may be avoided by the trustee, and such property shall be treated as
customer property, if and to the extent that the trustee avoids such
transfer under section 544, 545, 547, 548, or 549 of this title. For the
purpose of such sections, the property so transferred shall be deemed to
have been property of the debtor and, if such transfer was made to a
customer or for a customer's benefit, such customer shall be deemed, for
the purposes of this section, to have been a creditor.
(b) Notwithstanding sections 544, 545, 547, 548, and 549 of this
title, the trustee may not avoid a transfer made before five days after
the order for relief if such transfer is approved by the Commission by
rule or order, either before or after such transfer, and if such
(1) a transfer of a securities contract entered into or carried
by or through the debtor on behalf of a customer, and of any cash,
security, or other property margining or securing such securities
(2) the liquidation of a securities contract entered into or
carried by or through the debtor on behalf of a customer.
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2614; Pub. L. 97-222, Sec. 14,
July 27, 1982, 96 Stat. 238.)
Historical and Revision Notes
senate report no. 95-989
Section 749 indicates that if the trustee avoids a transfer,
property recovered is customer property to any extent it would have been
customer property but for the transfer. The section clarifies that a
customer who receives a transfer of property of the debtor is a creditor
and that property in a customer's account is property of a creditor for
purposes of the avoiding powers.
1982--Pub. L. 97-222 substituted ``(a) Except as otherwise provided
in this section, any'' for ``Any'', and ``but'' for ``except'', inserted
``such property'', substituted ``or 549'' for ``549, or 724(a)'', and
added subsec. (b).
Section Referred to in Other Sections
This section is referred to in section 106 of this title.