Title 11 — Bankruptcy
Chapter 5 — Creditors, the Debtor, and the Estate
§ 555. Contractual right to liquidate, terminate, or accelerate a securities contract
Statutory text
The exercise of a contractual right of a stockbroker, financial institution, financial participant, or securities clearing agency to cause the liquidation, termination, or acceleration of a securities contract, as defined in section 741 of this title, because of a condition of the kind specified in section 365(e)(1) of this title shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title unless such order is authorized under the provisions of the Securities Investor Protection Act of 1970 or any statute administered by the Securities and Exchange Commission. 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 in writing, arising under common law, under law merchant, or by reason of normal business practice.
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. 97–222 § 6(a) · 96 Stat. 235
Enacted · 11 U.S.C. § 555
Added Pub. L. 97–222, § 6(a), July 27, 1982, 96 Stat. 236
Source evidence
Code source credit
Added Pub. L. 97–222, § 6(a), July 27, 1982, 96 Stat. 236Enacted provision · exact public law section
(a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new sections: “§ 555. Contractual right to liquidate a securities contract “The exercise of a contractual right of a stockbroker or securities clearing agency to cause the liquidation of a securities contract, as defined in section 741(7), because of a condition of the kind specified in section 365(e)(1) of this title shall not be stayed, avoided, or 11 USC 365. otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title unless such order is authorized under the provisions of the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) or any statute administered by the Securities and Exchange Commission. As used in this section, the term ‘contractual right’ includes a “Contractual right.” right set forth in a rule or bylaw of a national securities exchange, a national securities association, or a securities clearing agency. “§ 556. Contractual right to liquidate a commodities contract or forward contract “The contractual right of a commodity broker or forward contract merchant to cause the liquidation of a commodity contract, as defined in section 761(4), or forward contract because of a condition 11 USC 761. of the kind specified in section 365(e)(1) of this title, and the right to 11 USC 365. 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’ “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.”.Pub. L. 98–353 title III § 469 · 98 Stat. 333
Inserted · 11 U.S.C. § 555
Pub. L. 98–353 inserted “, financial institution,” after “stockbroker”
Source evidence
Code amendment note
Pub. L. 98–353 inserted “, financial institution,” after “stockbroker”.Enacted provision · exact public law section
Sec. 469. Section 555 of title 11 of the United States Code is amended by inserting “, financial institution,” after “stockbroker”.Bankruptcy Reform Act of 1994
Pub. L. 103–394 title V § 501(b)(6) · 108 Stat. 4106
Substituted · 11 U.S.C. § 555
Pub. L. 103–394 substituted “section 741 of this title” for “section 741(7)”
Struck · 11 U.S.C. § 555
Pub. L. 103–394 struck out “(15 U.S.C. 78aaa et seq.)” after “Act of 1970”
Source evidence
Code amendment note
Pub. L. 103–394 substituted “section 741 of this title” for “section 741(7)” and struck out “(15 U.S.C. 78aaa et seq.)” after “Act of 1970”.Enacted provision · exact public law section
(6) Section 555 of title 11, United States Code, is amended by striking “section 741(7)” and inserting “section 741 of this title”.Pub. L. 109–8 § 907(g)(1) · 119 Stat. 23
Substituted · 11 U.S.C. § 555
Pub. L. 109–8, § 907(g)(1), substituted “Contractual right to liquidate, terminate, or accelerate a securities contract” for “Contractual right to liquidate a securities contract” in section catchline
Source evidence
Code amendment note
Pub. L. 109–8, § 907(g)(1), substituted “Contractual right to liquidate, terminate, or accelerate a securities contract” for “Contractual right to liquidate a securities contract” in section catchline.Enacted provision · exact public law section
(1) by amending the section heading to read as follows: “§ 555. Contractual right to liquidate, terminate, or accelerate a securities contract” ; andEffective date note
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.Pub. L. 109–8 § 907(g)(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 555
Pub. L. 109–8, § 907(g)(2), (o)(7), in first sentence, inserted “financial participant,” after “financial institution,”
Substituted · 11 U.S.C. § 555
Pub. L. 109–8, § 907(g)(2), (o)(7), in first sentence, substituted “liquidation, termination, or acceleration” for “liquidation”
Substituted · 11 U.S.C. § 555
Pub. L. 109–8, § 907(g)(2), (o)(7), in first sentence, substituted second sentence for former second sentence which read as follows: “As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw of a national securities exchange, a national securities association, or a securities clearing agency.”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 907(g)(2), (o)(7), in first sentence, inserted “financial participant,” after “financial institution,” and substituted “liquidation, termination, or acceleration” for “liquidation”, and substituted second sentence for former second sentence which read as follows: “As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw of a national securities exchange, a national securities association, or a securities clearing agency.”Enacted provision · exact public law section
(2) in the first sentence, by striking “liquidation” and inserting “liquidation, termination, or acceleration”.Effective date note
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.
8 of 8 references resolved to an enrolled provision
Editorial Notes
References in Text
The Securities Investor Protection Act of 1970, referred to in text, is Pub. L. 91–598, , 84 Stat. 1636, as amended, which is classified generally to chapter 2B–1 (§ 78aaa et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 78aaa of Title 15 and Tables.
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, , 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.
Amendments1984–2005 · 3 rounds
2005
Pub. L. 109–8, § 907(g)(1), substituted “Contractual right to liquidate, terminate, or accelerate a securities contract” for “Contractual right to liquidate a securities contract” in section catchline.
Pub. L. 109–8, § 907(g)(2), (o)(7), in first sentence, inserted “financial participant,” after “financial institution,” and substituted “liquidation, termination, or acceleration” for “liquidation”, and substituted second sentence for former second sentence which read as follows: “As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw of a national securities exchange, a national securities association, or a securities clearing agency.”
1994
Pub. L. 103–394 substituted “section 741 of this title” for “section 741(7)” and struck out “(15 U.S.C. 78aaa et seq.)” after “Act of 1970”.
1984
Pub. L. 98–353 inserted “, financial institution,” after “stockbroker”.
Statutory Notes and Related Subsidiaries
Effective Date of 2005 Amendment
Amendment by Pub. L. 109–8 effective 180 days after , 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 , and not applicable with respect to cases commenced under this title before , see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
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
1982–2005 · 4 acts
- 1982Added Pub. L. 97–222, § 6(a), , 96 Stat. 236
- 1984amended Pub. L. 98–353, title III, § 469, , 98 Stat. 380
- 1994Pub. L. 103–394, title V, § 501(b)(6), (d)(20), , 108 Stat. 4143, 4146
- 2005Pub. L. 109–8, title IX, § 907(g), (o)(7), , 119 Stat. 177, 182.
Show as published
(Added Pub. L. 97–222, § 6(a), , 96 Stat. 236; amended Pub. L. 98–353, title III, § 469, , 98 Stat. 380; Pub. L. 103–394, title V, § 501(b)(6), (d)(20), , 108 Stat. 4143, 4146; Pub. L. 109–8, title IX, § 907(g), (o)(7), , 119 Stat. 177, 182.)