11-U.S.C.-556
§556 – Contractual Right to Liquidate, Terminate, Or Accelerate A Commodities Contract Or Forward Contract
Pathway
Title 11 > Chapter 5 > Subchapter III > Section 556
Details
- Reference: Section 556
- Legend: §556 – Contractual Right to Liquidate, Terminate, Or Accelerate A Commodities Contract Or Forward Contract
- USCode Year: 2013
Provision Content
The contractual right of a commodity broker, financial participant, or forward contract merchant to cause the liquidation, termination, or acceleration of a commodity contract, as defined in section 761 of this title, or forward contract because of a condition of the kind specified in section 365(e)(1) of this title, and the right to a variation or maintenance margin payment received from a trustee with respect to open commodity contracts or forward contracts, shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by the order of a court in any proceeding under this title. As used in this section, the term contractual right includes a right set forth in a rule or bylaw of a derivatives clearing organization (as defined in the Commodity Exchange Act), a multilateral clearing organization (as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991), a national securities exchange, a national securities association, a securities clearing agency, a contract market designated under the Commodity Exchange Act, a derivatives transaction execution facility registered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity Exchange Act) or in a resolution of the governing board thereof and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal business practice.
(Added Pub. L. 97–222, §6(a), July 27, 1982, 96 Stat. 236; amended Pub. L. 101–311, title II, §205, June 25, 1990, 104 Stat. 270; Pub. L. 103–394, title V, §501(b)(7), Oct. 22, 1994, 108 Stat. 4143; Pub. L. 109–8, title IX, §§907(h), (o)(8), Apr. 20, 2005, 119 Stat. 178, 182.)
References in Text
The Commodity Exchange Act, referred to in text, is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as amended, which is classified generally to chapter 1 (§1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables.
The Federal Deposit Insurance Corporation Improvement Act of 1991, referred to in text, is Pub. L. 102–242, Dec. 19, 1991, 105 Stat. 2236, as amended. For complete classification of this Act to the Code, see Short Title of 1991 Amendment note set out under section 1811 of Title 12, Banks and Banking, and Tables.
Amendments
2005—Pub. L. 109–8, §907(o)(8), inserted , financial participant, after commodity broker in first sentence.
Pub. L. 109–8, §907(h), substituted Contractual right to liquidate, terminate, or accelerate a commodities contract or forward contract for Contractual right to liquidate a commodities contract or forward contract in section catchline, liquidation, termination, or acceleration for liquidation in first sentence, and As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw of a derivatives clearing organization (as defined in the Commodity Exchange Act), a multilateral clearing organization (as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991), a national securities exchange, a national securities association, a securities clearing agency, a contract market designated under the Commodity Exchange Act, a derivatives transaction execution facility registered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity Exchange Act) or in a resolution of the governing board thereof and a right, for As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw of a clearing organization or contract market or in a resolution of the governing board thereof and a right, in second sentence.
1994—Pub. L. 103–394 substituted section 761 of this title for section 761(4).
1990—Pub. L. 101–311 inserted before period at end and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal business practice.
Effective Date of 2005 Amendment
Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
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.
U.S. Encyclopedia of Law Coverage
11-U.S.C.-556 in the Legal Encyclopedia: Bankruptcy
In this entry about 11-U.S.C.-556, find legal reference material, bibliographies and premiere content related to bankruptcy in the American Encyclopedia of Law, presenting a comprehensive view of the United States bankruptcy-specific issues, written by authorities in the field.
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