Title 11 — Bankruptcy
Chapter 7 — Liquidation
§ 747. Subordination of certain customer claims
Statutory text
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—
an insider;
a beneficial owner of at least five percent of any class of equity securities of the debtor, other than—
nonconvertible stock having fixed preferential dividend and liquidation rights; or
interests of limited partners in a limited partnership;
a limited partner with a participation of at least five percent in the net assets or net profits of the debtor; or
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.
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. § 747
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2613
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2613Pub. L. 97–222 § 13 · 96 Stat. 235
Substituted · 11 U.S.C. § 747
Pub. L. 97–222 substituted “the transaction giving rise to such claim occurred” for “such claim arose” in provisions preceding par. (1)
Source evidence
Code amendment note
Pub. L. 97–222 substituted “the transaction giving rise to such claim occurred” for “such claim arose” in provisions preceding par. (1).Enacted provision · exact public law section
Sec. 13. Section 747 of title 11, United States Code, is amended by striking out “such claim arose” and inserting in lieu thereof “the transaction giving rise to such claim occurred”.
1 of 2 references resolved to an enrolled provision · 1 partial
Notes
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.
Editorial Notes
Amendments
1982—Pub. L. 97–222 substituted “the transaction giving rise to such claim occurred” for “such claim arose” in provisions preceding par. (1).
Credits
1978–1982 · 2 acts
- 1978Pub. L. 95–598, , 92 Stat. 2613
- 1982Pub. L. 97–222, § 13, , 96 Stat. 238.
Show as published
(Pub. L. 95–598, , 92 Stat. 2613; Pub. L. 97–222, § 13, , 96 Stat. 238.)