§ 742. Effect of section 362 of this title in this subchapter

Statutory text

Notwithstanding section 362 of this title, SIPC may file an application for a protective decree under the Securities Investor Protection Act of 1970. The filing of such application stays all proceedings in the case under this title unless and until such application is dismissed. If SIPC completes the liquidation of the debtor, then the court shall dismiss the case.

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.

1978
Pub. L. 95–598 · 92 Stat. 2549
Enacted · 11 U.S.C. § 742
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2613
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2613
1982
Pub. L. 97–222 § 9 · 96 Stat. 235
Substituted · 11 U.S.C. § 742
Pub. L. 97–222 substituted “title” for “chapter” after “all proceedings in the case under this”
Source evidence
Code amendment note
Pub. L. 97–222 substituted “title” for “chapter” after “all proceedings in the case under this”.
Enacted provision · exact public law section
Sec. 9. Section 742 of title 11, United States Code, is amended by striking out “chapter” and inserting in lieu thereof “title”.
1994
Bankruptcy Reform Act of 1994
Pub. L. 103–394 title V § 501(d)(26) · 108 Stat. 4106
Struck · 11 U.S.C. § 742
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 struck out “(15 U.S.C. 78aaa et seq.)” after “Act of 1970”.
Enacted provision · exact public law section
(26) in section 742 by striking “(15 U.S.C. 78aaa et seq.)”,
Effective date note
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.

2 of 3 references resolved to an enrolled provision · 1 partial

Notes

Historical and Revision Notes

legislative statements

Section 742 of the House amendment deletes a sentence contained in the Senate amendment requiring the trustee in an interstate stock-brokerage liquidation to comply with the provisions of subchapter IV of chapter 7 if the debtor is also a commodity broker. The House amendment expands the requirement to require the SIPC trustee to perform such duties, if the debtor is a commodity broker, under section 7(b) of the Securities Investor Protection Act [15 U.S.C. 78ggg(b)]. The requirement is deleted from section 742 since the trustee of an intrastate stockbroker will be bound by the provisions of subchapter IV of chapter 7 if the debtor is also a commodity broker by reason of section 103 of title 11.

senate report no. 95–989

Section 742 indicates that the automatic stay does not prevent SIPC from filing an application for a protective decree under SIPA. If SIPA does file such an application, then all bankruptcy proceedings are suspended until the SIPC action is completed. If SIPC completes liquidation of the stockbroker then the bankruptcy case is dismissed.

Editorial Notes

References in Text

The Securities Investor Protection Act of 1970, referred to in text, is Pub. L. 91–598, Dec. 30, 1970, 84 Stat. 1636, 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.

Amendments1982–1994 · 2 rounds

1994

Pub. L. 103–394 struck out “(15 U.S.C. 78aaa et seq.)” after “Act of 1970”.

1982

Pub. L. 97–222 substituted “title” for “chapter” after “all proceedings in the case under this”.

Statutory Notes and Related Subsidiaries

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.

Credits

1978–1994 · 3 acts

1978Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2613
1982Pub. L. 97–222, § 9, July 27, 1982, 96 Stat. 237
1994Pub. L. 103–394, title V, § 501(d)(26), Oct. 22, 1994, 108 Stat. 4146.

Show as published

(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2613; Pub. L. 97–222, § 9, July 27, 1982, 96 Stat. 237; Pub. L. 103–394, title V, § 501(d)(26), Oct. 22, 1994, 108 Stat. 4146.)