Title 11 — Bankruptcy
Chapter 11 — Reorganization
§ 1108. Authorization to operate business
Statutory text
Unless the court, on request of a party in interest and after notice and a hearing, orders otherwise, the trustee may operate the debtor’s business.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 95–598 · 92 Stat. 2549
Enacted · 11 U.S.C. § 1108
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2629
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2629Pub. L. 98–353 title III § 504 · 98 Stat. 333
Inserted · 11 U.S.C. § 1108
Pub. L. 98–353 inserted “, on request of a party in interest and after notice and a hearing,”
Source evidence
Code amendment note
Pub. L. 98–353 inserted “, on request of a party in interest and after notice and a hearing,”.Enacted provision · exact public law section
Sec. 504. Section 1108 of title 11 of the United States Code is amended by inserting “, on request of a party in interest and after notice and a hearing, after “court”.Effective date note
Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
1 of 2 references resolved to an enrolled provision · 1 partial
Notes
Historical and Revision Notes
legislative statements
The House amendment adopts section 1108 of the House bill in preference to the style of an identical substantive provision contained in the Senate amendment. Throughout title 11 references to a “trustee” is read to include other parties under various sections of the bill. For example, section 1107 applies to give the debtor in possession all the rights and powers of a trustee in a case under chapter 11; this includes the power of the trustee to operate the debtor’s business under section 1108.
senate report no. 95–989
This section permits the debtor’s business to continue to be operated, unless the court orders otherwise. Thus, in a reorganization case, operation of the business will be the rule, and it will not be necessary to go to the court to obtain an order authorizing operation.
house report no. 95–595
This section does not presume that a trustee will be appointed to operate the business of the debtor. Rather, the power granted to trustee under this section is one of the powers that a debtor in possession acquires by virtue of proposed 11 U.S.C. 1107.
Editorial Notes
Amendments
1984—Pub. L. 98–353 inserted “, on request of a party in interest and after notice and a hearing,”.
Statutory Notes and Related Subsidiaries
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after , see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
Credits
1978–1984 · 2 acts
Show as published
(Pub. L. 95–598, , 92 Stat. 2629; Pub. L. 98–353, title III, § 504, , 98 Stat. 384.)