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. 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 
transfer is--
        (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 
    contract; or
        (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.


                               Amendments

    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.


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Legal Resource Center: United States Code TITLE 11 Filing Bankruptcy Forms Software