11-U.S.C.-747

§747 – Subordination of Certain Customer Claims

Pathway

Title 11 > Chapter 7 > Subchapter III > Section 747

Details

• Reference: Section 747
• Legend: §747 – Subordination of Certain Customer Claims
• USCode Year: 2013

Provision Content

Except as provided in section 510 of this title, unless all other customer net equity claims have been paid in full, the trustee may not pay in full or pay in part, directly or indirectly, any net equity claim of a customer that was, on the date the transaction giving rise to such claim occurred—

(1) an insider;

(2) a beneficial owner of at least five percent of any class of equity securities of the debtor, other than—

(A) nonconvertible stock having fixed preferential dividend and liquidation rights; or

(B) interests of limited partners in a limited partnership;

(3) a limited partner with a participation of at least five percent in the net assets or net profits of the debtor; or

(4) an entity that, directly or indirectly, through agreement or otherwise, exercised or had the power to exercise control over the management or policies of the debtor.

(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2613; Pub. L. 97–222, §13, July 27, 1982, 96 Stat. 238.)

Historical and Revision Notes

senate report no. 95–989

Section 747 subordinates to other customer claims, all claims of a customer who is an insider, a five percent owner of the debtor, or otherwise in control of the debtor.

Amendments

1982—Pub. L. 97–222 substituted the transaction giving rise to such claim occurred for such claim arose in provisions preceding par. (1).

U.S. Encyclopedia of Law Coverage

Subchapter III – Stockbroker Liquidation in the Legal Encyclopedia: Bankruptcy

In this entry about Subchapter III – Stockbroker Liquidation, 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.

11-U.S.C.-741 in the Legal Encyclopedia: Liquidation

In this entry about 11-U.S.C.-741, find legal reference material, bibliographies and premiere content related to liquidation in the American Encyclopedia of Law, presenting a comprehensive view of the United States liquidation-specific issues, written by authorities in the field.

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