text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1269

 PUBLIC LAW 95-598—NOV. 6, 1978

92 STAT. 2549

Public Law 95-598 95th Congress An Act To establish a uniform Law on the Subject of Bankruptcies.

Nov. 6, 1978 [H.R. 8200]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, Title 11, USC. Bankruptcy.

TITLE I—ENACTMENT OF TITLE 11 OF THE UNITED STATES CODE SEC. 101. The law relating to bankruptcy is codified and enacted llUSC prec.lOl as title 11 of the United States Code, entitled "Bankruptcy", and may notebe cited as 11 U.S.C. §, as follows: TITLE 11—BANKRUPTCY CHAPTER I. GENERAL PROVISIONS 3. CASE ADMINISTRATION 5. CREDITOES, THE DEBTOR, AND THE ESTATE 7. LIQUIDATION 9. ADJUSTMENT OF DEBTS OF A MUNICIPALITT II. REORGANIZATION 13. ADJUSTMENT OF DEBTS OF AN INDIVIDUAL W I T H BEOULAB INCOME 15. UNITED STATES TBUSTEES

Sec. 101 301 501 701 901 1101 1301 1501

CHAPTER 1—GENERAL PROVISIONS Sec. 101. 102. 103. 104. 105. 106. 107. 108. 109.

Definitions. Rules of construction. Applicability of chapters. Adjustment of dollar amounts. Power of court. Waiver of sovereign immunity. Public access to papers. Extension of time. Who may be a debtor.

§ lOL Definitions n USC lOi. I n this title— (1) "accountant" means accountant authorized under applicable law to practice public accounting, and includes professional accounting association, corporation, or partnership, if so authorized; (2) "affiliate" means— (A) entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities— (i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or (ii) solely to secure a debt, if such entity has not in fact exercised such power to vote; (B) corporation 20 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the debtor, or by an entity

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1270

 92 STAT. 2550

Post, p. 2615.

Post, p. 2594.

PUBLIC LAW 95-598—NOV. 6, 1978 that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities— (i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or (ii) solely to secure a debt, if such entity has not in fact exercised such power to vote; (C) person whose business is operated under a lease or operating agreement by a debtor, or person substantially all of whose property is operated under an operating agreement with the debtor; or (D) entity that operates the business or all or substantially all of the property of the debtor under a lease or operating agreement; (3) "attorney" means attorney, professional law association, corporation, or partnership, authorized under applicable law to practice law; (4) "claim" means— (A) right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured; or (B) right to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured, or unsecured; (5) "commodity broker" means futures commission merchant, foreign futures commission merchant, clearing organization, leverage transaction merchant, or commodity options dealer, as defined in section 761 of this title, with respect to which there is a customer, as defined in section 761(9) of this title; (6) "community claim" means claim that arose before the commencement of the case concerning the debtor for which property of the kind specified in section 541(a)(2) of this title is liable, whether or not there is any such property at the time of the commencement of the case; (7) "consumer debt" means debt incurred by an individual primarily for a personal, family, or household purpose; (8) "corporation"— (A) includes— (i) association having a power or privilege that a private corporation, but not an individual or a partnership, possesses; (ii) partnership association organized under a law that makes only the capital subscribed responsible for the debts of such association; Hii) joint-stock company; (iv) unincorporated company or association; or (v) business trust; but (B) does not include limited partnership: (9) "creditor" means— (A) entity that has a claim against the debtor that arose at the time of or before the order for relief concerning the debtor;

�

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1271

 PUBLIC LAW 95-598—NOV. 6, 1978

92 STAT. 2551

(B) entity that has a claim against the estate of a kind specified in section 502(f), 5 0 2 (g), 502(h) or 502(i) of this Post, p. 2579. title; or (C) entity that has a community claim; (10) "custodian" means— (A) receiver or trustee of any of the property of the debtor, appointed in a case or proceeding not under this title; (B) assignee under a general assignment for the benefit of the debtor's creditors; or (C) trustee, receiver, or agent under applicable law, or under a contract, that is appointed or authorized to take charge of property of the debtor for the purpose of enforcing a lien against such property, or for the purpose of general administration of such property for the benefit of the debtor's creditors; (11) "debt" means liability on a claim; (12) "debtor" means person or municipality concerning which a case under this title has been commenced; (13) "disinterested person" means person that— (A) is not a creditor, an equity security holder, or an insider; (B) is not and was not an investment banker for any outstanding security of the debtor; (C) has not been, within three years before the date of the filing of the petition, an investment banker for a security of the debtor, or an attorney for such an investment banker in connection with the offer, sale, or issuance of a security of the debtor; (D) is not and was not, within two years before the date of the filing of the petition, a director, officer, or employee of the debtor or of an investment banker specified in subparagraph (B) or (C) of this paragraph; and (E) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor or an investment banker specified in subparagraph (B) or (C) of this paragraph, or for any other reason; (14) "entity" includes person, estate, trust, governmental u n i t; (15) "equity security" means— (A) share in a corporation, whether or not transferable or denominated "stock", or similar security; (B) interest of a limited part n e r in a limited partnership; or (C) w a r r a n t or right, other than a right to convert, to purchase, sell, or subscribe to a share, security, or interest of a kind specified in subparagraph (A) or (B) of this paragraph; (16) "equity security holder" means holder of an equity security of the debtor; (17) "farmer" means person that received more than 80 percent of such person's gross income during the taxable year of such person immediately preceding the taxable year of such person during which the case under this title concerning such person was commenced from a farming operation owned or operated by such person;

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1272

 92 STAT. 2552

Post, p. 2645.

PUBLIC LAW 95-598—NOV. 6, 1978 (18) "farmino; operation" includes farming, tillafje of the soil, dairy farming, ranching, production or raising of crops, poultry, or livestock, and production of poultry or livestock products in an unmanufactured state; (19) "foreign proceeding" means proceeding, whether judicial or administrative and whether or not under bankruptcy law, in a foreign country in which the debtor's domicile, residence, principal place of business, or principal assets were located at the commencement of such proceeding, for the purpose of liquidating an estate, adjusting debts by composition, extension, or discharge, or effecting a reorganization; (20) "foreign representative" means duly selected trustee, administrator, or other representative of an estate in a foreign proceeding; (21) "governmental unit" means United States; State; Commonwealth; District; Territory; municipality; foreign state; department, agency, or instrumentality of the United States, a State, a Commonwealth, a District, a Territory, a municipality, or a foreign state; or other foreign or domestic government; (22) "indenture" means mortgage, deed of trust, or indenture, under which there is outstanding a security, other than a votingtrust certificate, constituting a claim against the debtor, a claim secured by a lien on any of the debtor's property, or an equity security of the debtor; (23) "indenture trustee" means trustee under an indenture; (24) "individual with regular income" means individual whose income is sufficiently stable and regular to enable such individual to make payments under a plan under chapter 13 of this title, other than a stock broker or a commodity broker; (25) "insider" includes— (A) if the debtor is an individual— (i) relative of the debtor or of a general partner of the debtor; (ii) partnership in which the debtor is a general partner; (iii) general partner of the debtor; or (iv) corporation of which the debtor is a director, officer, or person in control; (B) if the debtor is a corporation— (i) director of the debtor; (ii) officer of the debtor; (iii) person in control of the debtor; (iv) partnership in which the debtor is a general partner; (v) general partner of the debtor; or (vi) relative of a general partner, director, officer, or person in control of the debtor; (C) if the debtor is a partnership— (i) general partner in the debtor; (ii) relative of a general partner in, general partner of, or person in control of the debtor; (iii) partnership in which the debtor is a general partner; (iv) general partner of the debtor; or (v) person in control of the debtor; (D) if the debtor is a municipality, elected official of the debtor or relative of an elected official of the debtor;

�


text: Author:Charles Hulbert

title: Author:Charles Hulbert


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1273

 PUBLIC LAW 95-598—NOV. 6, 1978

92 STAT. 2553

(E) affiliate, or insider of an affiliate as if such affiliate were the debtor; and (F) manag-ing agent of the debtor; (26) "insolvent" means— (A) with reference to an entity other than a partnership, financial condition such that the sum of such entity's debts is greater than all of such entity's property, at a fair valuation, exclusive of— (i) property transferred, concealed, or removed with intent to hinder, delay, or defraud such entity's creditors; and (ii) property that may be exempted from property of the estate under section 522 of this title; and Post, p. 2586. (B) with reference to a partnership, financial condition such that the sum of such partnership's debts is greater than the aggregate of, at a fair valuation— (i) all of such partnership's property, exclusive of property of the kind specified in subparagraph (A)(i) of this paragraph; and (ii) the sum of the excess of the value of each general partner's separate property, exclusive of property of the kind specified in subparagraph (A) (ii) of this paragraph, over such partner's separate debts; (27) "judicial lien" means lien obtained by judgment, levy, sequestration, or other legal or equitable process or proceeding; (28) "lien" means charge against or interest in property to secure payment of a debt or performance of an obligation; (29) "municipality" means political subdivision or public agency or instrumentality of a State; (30) "person" includes individual, partnership, and corporation, but does not include governmental unit; (31) "petition" means petition filed under section 301, 302, 303, or 304 of this title, as the case may be, commencing a case under this title; (32) "purchaser" means transferee of a voluntary transfer, and includes immediate or mediate transferee of such a transferee; (33) "railroad" means common carrier by railroad engaged in the transportation of individuals or property or owner of trackage facilities leased by such a common carrier; (34) "relative" means individual related by affinity or consanguinity within the third degree as determined by the common law, or individual in a step or adoptive relationship within such third degree; (35) "security"— (A) includes— (i) note; (ii) stock; (iii) treasury stock; (iv) bond; (v) debenture; (vi) collateral trust certificate; (vii) pre-organization certificate or subscription; (viii) transferable share; (ix) voting-trust certificate; (x) certificate of deposit; (xi) certificate of deposit for security; (xii) investment contract or certificate of interest or

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1274

 92 STAT. 2554

Post, p. 2615.

Post, p. 2611.

11 USC 102. After notice and a

hearing.

PUBLIC LAW 95-598—NOV. 6, 1978 participation in a profit-sharing agreement or in an oil, gas, or mineral royalty or lease, if such contract or interest is the subject of a registration statement filed with the Securities and Exchange Commission under the provisions of the Securities Act of 1933 (15 U.S.C. 77a et seq.), or is exempt under section 3(b) of such A(t (15 U.S.C. 77c(b)) from the requirement to file such a statement; (xiii) interest of a limited partner in a limited partnership; (xiv) other claim or interest commonly known as "security"; and (xv) certificate of interest or participation in, temporary or interim certificate for, receipt for, or warrant or right to subscribe to or purchase or sell, a secuity; but (B) does not include— (i) currency, check, draft, bill of excha,nge, or bank letter of credit; (ii) leverage transaction, as defined in section 761 (13) of this title; (iii) commodity futures contract or forward commodity contract; (iv) option, warrant, or right to subscribe to or purchase or sell a commodity futures contract; (v) option to purchase or sell a commodity; (vi) contract or certificate specified in clause (xii) of subparagraph (A) of this paragraph that is not the subject of such a registration statement filed with the Securities and Exchange Commission and is not exempt under section 3(b) of the Securities Act of 1933 (15 U.S.C. 77c(b)) from the requirement to file such a statement; or (vii) debt or evidence of indebtedness for goods sold and delivered or services rendered; (36) "security agreement" means agreement that creates or provides for a security interest; (37) "security interest" means lien created by an agreement; (38) "statutory lien" means lien arising solely by force of a statute on specified circumstances or conditions, or lien of distress for rent, whether or not statutory, but does not include security interest or judicial lien, whether or not such interest or lien is provided by or is dependent on a statute and whether or not such interest or lien is made fully effective by statute; (39) "stockbroker" means person with respect to which there is a customer, as defined in section 741(2) of this title, engaged in the business of effecting transactions in securities— (A) for the accounts of others; or (B) with members of the general public, from or for such person's own account; and (40) "transfer" means every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with property or with an interest in property, including retention of title as a security interest. § 102. Rules of construction I n this title—

^ ^ "after notice and a hearing", or a similar phrase—

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1275

 PUBLIC LAW 95-598—NOV. 6, 1978

92 STAT. 2555

(A) means after such notice as is a p p r o p r i a t e in the particular circumstances, and such opportunity for a hearing as is a p p r o p r i a t e in the particular circumstances; but (B) authorizes an act without an actual hearing if such notice is given properly and if— (i) such a hearing is not requested timely by a party in interest; or (ii) there is insufficient time for a hearing to be commenced before such act must be done, and the court authorizes such act; (2) "claim against the debtor" includes claim against property of the debtor; (3) "includes" and "including" are not limiting; (4) "may not " is prohibitive, and not permissive; (5) " o r " is not exclusive; (6) "order for relief" means entry of an order for relief; (7) the singular includes the p l u r a l; and (8) a definition, continued in a section of this title that refers to another section of this title, does not, for the purpose of such reference, affect the meaning of a term used in such other section, § 103. Applicability of chapters (a) Except as provided in section 1161 of this title, chapters 1, 3, and 5 of this title apply in a case under chapter 7, 1 1, or 13 of this title. (b) Subchapters I and II of chapter 7 of this title apply only in a case under such chapter. (c) Subchapter III of chapter 7 of this title applies only in a case under such chapter concerning a stockholder. (d) Subchapter IV of chapter 7 of this title applies only in a case under such chapter concerning a commodity broker except with respect to section 746(c) which applies to margin payments made by any debtor to a commodity broker or forward contract merchant. (e) Except as provided in section 901 of this title, only chapters 1 and 9 of this title apply in a case under such chapter 9. (f) Except as provided in section 901 of this title, subchapter I, II, and III of chapter 11 of this title apply only in a case under such chapter. (g) Subchapter IV of chapter 11 of this title applies only in a case under such chapter concerning a railroad. (h) Chapter 13 of this title applies only in a case under such chapter. § 104. Adjustment of dollar amounts The Judicial Conference of the United States shall transmit to the Congress and to the President before May 1, 1985, and before May 1 of every sixth year after May 1, 1985, a recommendation for the uniform percentage adjustment of each dollar amount in this title and in section 1930 of title 28. § 105. Power of court (a) The bankruptcy court may issue any order, process, or judgment that is necessarv or appropriate to carry out the provisions of this title. (b) Notwithstanding subsection (a) of this section, a bankruptcy court may not appoint a receiver in a case under this title. § 106. Waiver of sovereign immunity (a) A governmental unit is deemed to have waived sovereign immunity with respect to any claim against such governmental unit that

11 USC 103. Post, p. 2641. Post, pp. 2578, 2604, 2626, 2645.

Post, p. 2613. Post, p. 2621.

11 USC 104. Recommendation to Congress and the President.

11 USC 105.

11 USC 106.

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1276

 92 STAT. 2556

11 USC 107.

11 USC 108.

Post, p. 2645.

Post, p. 2592.

PUBLIC LAW 95-598—NOV. 6, 1978 is property of the estate and that arose out of the same transaction or occurrence out of which such governmental unit's claim arose. (b) There shall be offset against an allowed claim or interest of a governmental unit any claim against such governmental unit that is property of the estate. (c) Except as provided in subsections (a) and (b) of this section and notwithstanding any assertion of sovereign immunity— (1) a provision of this title that contains "creditor", "entity", or "governmental unit" applies to governmental units; and (2) a determination by the court of an issue arising under such a provision binds governmental units. § 107. Public access to papers (a) Except as provided in subsection (b) of this section, a paper filed in a case under this title and the dockets of a bankruptcy court are public records and open to examination by an entity at reasonable times without charge. (b) On request of a party in interest, the bankruptcy court shall, and on the bankruptcy court's own motion, the bankruptcy court may— (1) protect an entity with respect to a trade secret or confidential research, development, or commercial information; or (2) protect a person with respect to scandalous or defamatory matter contained in a paper filed in a case under this title. § 108. Extension of time (a) If applicable law, an order entered in a proceeding, or an agreement fixes a period within which the debtor may commence an action, and such period has not expired before the date of the filing of the petition, the trustee may commence such action only before the later of— (1) the end of such period, including any suspension of such period occurring on or after the commencement of the case; and (2) two years after the order for relief. (b) Except as provided in subsection (a) of this section, if applicable law, an order entered in a proceeding, or an agreement fixes a period within which the debtor or an individual protected under section 1301 of this title may file any pleading, demand, notice, or proof of claim or loss, cure a default, or perform any other similar act, and such period has not expired before the date of the filing of the petition, the trustee may only file, cure, or perform, as the case may be, before the later of— (1) the end of such period, including any suspension of such period occurring on or after the commencement of the case; and (2) 60 days after the order for relief. (c) Except as provided in section 524 of this title, if applicable law, an order entered in a proceeding, or an agreement fixes a period for commencing or continuing a civil action in a court other than a bankruptcy court on a claim against the debtor, or against an individual with respect to which such individual is protected under section 1301 of this title, and such period has not expired before the date of the filing of the petition, then such period does not expire until the later of— (1) the end of such period, including any suspension of such period occurring on or after the commencement of the case; and

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1277

 PUBLIC LAW 95-598—NOV. 6, 1978

92 STAT. 2557

(2) 30 days after notice of the termination or expiration of the stay under section 362, 922, or 1301 of this title, as the case may be, with respect to such claim. § 109. Who may be a debtor (a) Notwithstanding any other provision of this section, only a person that resides in the United States, or has a domicile, a place of business, or property in the United States, or a municipality, may be a debtor under this title. (b) A person may be a debtor under chapter 7 of this title only if such person is not— (1) a railroad; (2) a domestic insurance company, bank, savings bank, cooperative bank, savings and loan association, building and loan association, homestead association, or credit union; or (3) a foreign insurance company, bank, savings bank, cooperative bank, savings and loan association, building and loan association, homestead association, or credit union, engaged in such business in the United States. (c) An entity may be a debtor under chapter 9 of this title if and only if such entity— (1) is a municipality; (2) is generally authorized to be a debtor under such chapter by State law, or by a governmental officer or organization empowered by State law to authorize such entity to be a debtor under such chapter; (3) is insolvent or unable to meet such entity's debts as such debts mature; (4) desires to effect a plan to adjust such debts; and (5)(A) has obtained the agreement of creditors holding at least a majority in amount of the claims of each class that such entity intends to impair under a plan in a case under such chapter; (B) has negotiated in good faith with creditors and has failed to obtain the agreement of creditors holding at least a majority in amount of the claims of each class that such entity intends to impair under a plan in a case under such chapter; (C) is unable to negotiate with creditors because such negotiation is impracticable; or (D) reasonably believes that a creditor may attempt to obtain a preference. (d) Only a person that may be a debtor under chapter 7 of this title, except a stockholder or a commodity broker, and a railroad may be a debtor under chapter 11 of this title. (e) Only an individual with regular income that owes, on the date of the filing of the petition, noncontingent, liquidated, unsecured debts of less than $100,000 and noncontingent, liquidated, secured debts of less than $350,000, or an individual with regular income and such individual's spouse, except a stockbroker or a commodity broker, that owe, on the date of the filing of the petition, noncontingent, liquidated, unsecured debts that aggregate less than $100,000 and noncontingent, liquidated, secured debts of less than $350,000 may be a debtor under chapter 13 of this title.

Post, pp. 2623, 2645. H USC 109.

Post, p. 2604.

Post, p. 2621.

Post, p. 2626.

^o^^' P- 2645.

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1278

 92 STAT. 2558

PUBLIC LAW 95-598—NOV. 6, 1978

CHAPTER 3—CASE ADMINISTRATION SUBCHAPTER I—COMMENCEMENT OF A CASE Sec.

301. 302. 303. 304. 305. 306.

Voluntary cases. Joint cases. Involuntary cases. Cases ancillary to foreign proceedings. Abstention. Limited appearance. SUBCHAPTER II—OFFICERS

321. 322. 323. 324. 325. 326. 327. 328. 329. 330. 331.

Eligibility to serve as trustee. Qualification of trustee. Role and capacity of trustee. Removal of trustee or examiner. Effect of vacancy. Limitation on compensation of trustee. Employment of professional persons. Limitation on compensation of professional persons. Debtor's transactions with attorneys. Compensation of officers. Interim compensation. SUBCHAPTER III—ADMINISTRATION

341. Meetings of creditors and equity security holders. 3^2. Notice. 343. Examination of the debtor. 344. Self-incrimination; immunity. 345. Money of estates. 346. Special tax provisions. 347. Unclaimed property. 348. Effect of conversion. 349. Effect of dismissal. 350. Closing and reopening cases. SUBCHAPTER IV—ADMINISTRATIVE POWERS 361. Adequate protection. 362. Automatic stay. 363. Use, sale, or lease of property. 364. Obtaining credit. 365. Executory contracts and unexpired leases. 366. Utility service.

SUBCHAPTER I—COMMENCEMENT OF A CASE 11 USC 301.

11 USC 302.

§ 301. Voluntary cases A voluntary case under a chapter of this title is commenced by the filing with the bankruptcy court of a petition under such chapter by an entity that may be a debtor under such chapter. The commencement of a voluntary case under a chapter of this title constitutes an order for relief under such chapter. § 302. Joint cases (a) A joint case under a chapter of this title is commenced by the filing with the bankruptcy court of a single petition under such chapter by an individual that may be a debtor under such chapter and such individual's spouse. The commencement of a joint case under a chapter of this title constitutes an order for relief under such chapter. (b) After the commencement of a joint case, the court shall determine the extent, if any, to which the debtors' estates shall be consolidated.

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1279

 PUBLIC LAW 95-598—NOV. 6, 1978

92 STAT. 2559

§ 303. Involuntary cases (a) An involuntary case may be commenced only under chapter 7 or 11 of this title, and only against a person, except a farmer or a corporation that is not a moneyed, business, or commercial corporation, that may be a debtor under the chapter under which such case is commenced. (b) An involuntary case is commenced by the filing with the bankruptcy court of a petition under chapter 7 or 11 of this title— (1) by three or more entities, each of which is either a holder of a claim against such person that is not contingent as to liability or an indenture trustee representing such a holder, if such claims aggregate at least $5,000 more than the value of any lien on property of the debtor securing such claims held by the holders of such claims; (2) if there are fewer than 12 such holders, excluding any employee or insider of such person and any transferee of a transfer that is voidable under section 544, 545, 547, 548, 549, or 724(a) of this title, by one or more of such holders that hold in the aggregate at least $5,000 of such claims; (3) if such person is a partnership— (A) by fewer than all of the general partners in such partnership; or (B) if relief has been ordered under this title with respect to all of the general partners in such partnership, by a general partner in such partnership, the trustee of such a general partner, or a holder of a claim against such partnership; or (4) by a foreign representative of the estate in a foreign proceeding concerning such person. (c) After the filing of a petition under this section but before the case is dismissed or relief is ordered, a creditor holding an unsecured claim that is not contingent, other than a creditor filing under subsection (b) of this section, may join in the petition with the same effect as if such joining creditor were a petitioning creditor under subsection (b) of this section. (d) The debtor, or a general partner in a partnership debtor that did not join in the petition, may file an answer to a petition under this section. (e) After notice and a hearing, and for cause, the court may require the petitioners under this section to file a bond to indemnify the debtor for such amounts as the court may later allow under subsection (i) of this section. (f) Notwithstanding section 363 of this title, except to the extent that the court orders otherwise, and until an order for relief in the case, any business of the debtor may continue to operate, and the debtor may continue to use, acquire, or dispose of property as if an involuntary case concerning the debtor had not been commenced. (g) At any time after the commencement of an involuntary case under chapter 7 of this title but before an order for relief in the case, the court, on request of a party in interest, after notice to the debtor and a hearing, and if necessary to preserve the property of the estate or to prevent loss to the estate, may appoint an interim trustee under section 701 of this title to take possession of the property of the estate and to operate any business of the debtor. Before an order for relief, the debtor may regain possession of property in the possession of a trustee ordered appointed under this subsection if the debtor files such bond as the court requires, conditioned on the debtor's accounting for

11 USC 303. J?*^'PP- ^^"^^ 2626.

Post, pp. ^^^^^^^^' 2607.

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1280

 9 2 STAT. 2560

Post, p. 2627.

Post, p. 2604. 11 USC 304.

PUBLIC LAW 95-598—NOV. 6, 1978 and delivering to the ti'ustee, if there is an order for relief in the case, such property, or the value, as of the date the debtor regains possession. of such property. (h) I f the petition is not timely controverted, the court shall order relief against the debtor in an involuntary case under the chapter under which the petition was filed. Otherwise, after trial, the court shall order relief against the debtor in an involuntary case under the chapter under which the petition was filed, only if— (1) the debtor is generally not paying such debtor's debts as such debts become due; or (2) within 120 days before the date of the filing of the petition, a custodian, other than a trustee, receiver, or agent appointed or authorized to take charge of less than substantially all of the property of the debtor for the purpose of enforcing a lien aga/inst such property, was appointed or took possession. (i) If the court dismisses a petition under this section other than on consent of all petitioners and the debtor, and if the debtor does not waive the right to judgment under this subsection, the court may g r a n t judgment— (1) against the petitioners and in favor of the debtor for— (A) costs; (B) a reasonable attorney's fee; or (C) any damages proximately caused by the taking of possession of the debtor's property by a trustee appointed under subsection (g) of this section or section 1104 of this title; or (2) against any petitioner that filed the petition in bad faith. for— (A) any damages proximately caused by such filing; or (B) punitive damages. (j) Only after notice to all creditors and a hearing may the court dismiss a petition filed under this section— (1) on the motion of a petitioner; (2) on consent of all petitioners and the debtors; or (3) for want of prosecution. (k) Notwithstanding subsection (a) of t h i s section, an involuntary case may be commenced against a foreign bank that is not engaged in such business in the United States only under chapter 7 of this title and only if a foreign proceeding concerning such bank is pending. § 304. Cases ancillary to foreign proceedings (a) A case ancillary to a foreign proceeding is commenced by the filing with the bankruptcy court of a petition under this section by a foreign representative. (b) Subject to the provisions of subsection (c) of this section, if a party in interest does not timely controvert the petition, or after trial, the court may— (1) enjoin the commencement or continuation of— (A) any action against— (i) a debtor with respect to property involved in such foreign proceeding; or (ii) such property; or (B) the enforcement of any judgment against the debtor with respect to such property, or any act or the commencement or continuation of any judicial proceeding to create or enforce a lien against the property of such estate;

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1281

 PUBLIC LAW 95-598—NOV. 6, 1978.

(2) order turnover of the property of such estate, or the proceeds of such property, to such foreign representative; or (3) order other appropriate relief, (c) In determining whether to grant relief under subsection (b) of this section, the court shall be guided by what will best assure an economical and expeditious administration of such estate, consistent with— (1) just treatment of all holders of claims against or interests in such estate; (2) protection of claim holders in the United States against prejudice and inconvenience in the processing of claims in such foreign proceeding; (3) prevention of preferential or fraudulent dispositions of property of such estate; (4) distribution of proceeds of such estate substantially in accordance with the order prescribed by this title; (5) comity; and (6) if appropriate, the provision of an opportunity for a fregh start for the individual that such foreign proceeding concerns. § 305. Abstention (a) The court, after notice and a hearing, may dismiss a case under this title, or may suspend all proceedings in a case under this title, at any time if— (1) the interests of creditors and the debtor would be better served by such dismissal or suspension; or (2)(A) there is pending a foreign proceeding: and (B) the factors specified in section 304(c) of this title warrant such dismissal or suspension. (b) A foreign representative may seek dismissal or suspension under subsection (a)(2) of this section. (c) An order under subsection (a) of this section dismissing a case or suspending all proceedings in a case, or a decision not so to dismiss or suspend, is not reviewable by appeal or otherwise. § 306. Limited appearance An appearance in a bankruptcy court by a foreign representative in connection with a petition or request under section 303, 304, or 305 of this title does not submit such foreign representative to the jurisdiction of any court in the United States for any other purpose, but the bankruptcy court may condition any order under section 303, 304, or 305 of this title on compliance by such foreign representative with the orders of such bankruptcy court.

92 STAT. 2561 -

11 USC 305. Notice and hearing, -

11 USC 306.

SUBCHAPTER II—OFFICERS § 321. Eligibility to serve as trustee 11 USC 321. (a) A pereon may serve as trustee in a case under this title only if such person is— (1) an individual that is competent to perform the duties of trustee and, in a case under chapter 7 or 13 of this title, resides or Post, pp. 2604, has an office in the judicial district within which the case is pend- 2645. ing, or in any judicial district adjacent to such district; or (2) a corporation authorized by such corporation's charter or bylaws to act as trustee, and, in a case under chapter 7 or 13 of this title, having an office in at least one of such districts.

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1282

 92 STAT. 2562

PUBLIC LAW 95-598—NOV. 6, 1978

(b) A person that has served as an examiner in a case may not serve as trustee in the case. 11 USC 322. § 322. Qualification of trustee Post, pp. 2604, (a) A person selected under section 701,702, 703, 1104, 1163, or 1302 2605, 2627, of this title to serve as trustee in a case under this title qualifies if 2641, 2645. before five days after such selection, and before beginning official duties, such person has filed with the court a bond in favor of the United States conditioned on the faithful performance of such official duties. (b) The court shall determine— (1) the amount of a bond filed under subsection (a) of this , < (2) the sufficiency of the surety on such bond. •' (c) A trustee is not liable personally or on such trustee's bond in favor of the United States for any penalty or forfeiture incurred by the debtor. (d) A proceeding on a trustee's bond may not be commenced after two years after the date on which such trustee was discharged. 11 USC 323. § 323. Role and capacity of trustee (a) The trustee in a case under this title is the representative of the estate. (b) The trustee in a case under this title has capacity to sue and be sued. 11 USC 324. § 324. Removal of trustee or examiner The court, after notice and a hearing, may remove a trustee or an examiner, for cause. 11 USC 325. § 325. Effect of vacancy A vacancy in the office of trustee during a case does not abate any pending action or proceeding, and the successor trustee shall be substituted as a party in such action or proceeding. 11 USC 326. § 326. Limitation on compensation of trustee Post, pp. 2604, (a) In a case under chapter 7 or 11, the court may allow reasonable 2626. compensation under section 330 of this title of the trustee for the trustee'services, payable after the trustee renders such services, not to exceed fifteen percent on the first $1,000 or less, six percent on any amount in excess of $1,000 but not in excess of $3,000, three percent on any amount in excess of $3,000 but not in excess of $20,000, two percent on any amount in excess of $20,000 but not in excess of $50,000, and One percent on any amount in excess of $50,000, upon all moneys disbursed or turned over in the case by the trustee to parties in interest, excluding the debtor, but including holders of secured claims. Post, p. 2645. (b) In a case under chapter 13 of this title, the court may not allow compensation for services or reimbursement of expenses of a standing trustee appointed under section 1302(d) of this title, but may allow reasonable compensation under section 330 of this title of a trustee appointed under section 1302(a) of this title for the trustee'services, payable after the trustee renders such services, not to exceed five percent upon all payments under the plan. (c) If more than one person serves as trustee in the case, the aggregate compensation of such persons for such service may not exceed the maximum compensation prescribed for a single trustee by subsection (a) or (b) of this section, as the case may be. (d) The court may deny allowance of compensation for services and reimbursement of expenses of the trustee if the trustee—
 * section; and

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1283

 PUBLIC LAW 95-598—NOV. 6, 1978 (1) failed to make diligent inquiry into facts that would permit denial of allowance under section 328(c) of this title; or (2) with knowledge of such facts, employed a professional person under section 327 of this title. §327. Employment of professional persons ^(a) Except as otherwise provided in this section, the trustee, with the court's approval, may employ one or more attorneys, accountants, appraisers, auctioneers, or other professional persons, that do not hold or represent an interest adverse to the estate, and that are disinterested persons, to represent or assist the trustee in carrying out the trustee's duties under this title. (b) If the trustee is authorized to operate the business of the debtor under section 721 or 1108 of this title, and if the debtor has regularly employed attorneys, accountants, or other professional persons on salary, the trustee may retain or replace such professional persons if necessary in the operation of such business. (c) In a case under chapter 7 or 11 of this title, a person is not disqualified for employment under this section solely because of such person's employment by or representation of a creditor, but may not, while employed by the trustee, represent, in connection with the case, a creditor. (d) The court may authorize the trustee to act as attorney or accountant for the estate if such authorization is in the best interest of the estate. (e) The trustee, with the court's approval, may employ, for a specified special purpose, other than to represent the trustee m conducting the case, an attorney that has represented the debtor, if in the best interest of the estate, and if such attorney does not represent or hold any interest adverse to the debtor or to the estate with respect to the matter on which such attorney is to be employed. (f) The trustee may not employ a person that has served as an examiner in the case. § 328. Limitation on compensation of professional persons (a) The trustee, or a committee appointed under section 1102 of this title, with the court's approval, may employ or authorize the employment of a professional person under section 327 or 1103 of this title, as the case may be, on any reasonable terms and conditions of employment, including on a retainer, on an hourly basis, or on a contingent fee basis, Notwithstanding such terms and conditions, the court may allow compensation different from the compensation provided under such terms and conditions after the conclusion of such employment, if such terms and conditions prove to have been improvident in light of developments unanticipatable at the time of the fixing of such terms and conditions. (b) If the court has authorized a trustee to serve as an attorney or accountant for the estate under section 327(d) of this title, the court may allow compensation for the trustee'services as such attorney or accountant only to the extent that the trustee performed services as attorney or accountant for the estate and not for performance of any of the trustee's duties that are generally performed by a trustee without the assistance of an attorney or accountant for the estate. (c) Except as provided in section 327(c), 327(e), or 1107(b) of this title, the court may deny allowance of compensation for services and reimbursement of expenses of a professional person employed under section 327 or 1103 of this title if, at any time during such professional

92 STAT. 2563

11 USC 327.

Post, pp. 2606, 2629. Post, pp. 2604, 2626. . ^

^.^

H USC 328. Post, p. 2627.

Post, p. 2628.

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1284

 92 STAT. 2564 Post, p. 2627.

11 USC 329.

' _ I '

''

,.

Post, pp. 2626, 2645. 11 USC 330.

Post, p. 2604. 11 USC 331.

PUBLIC LAW 95-598—NOV. 6, 1978 person's employment under section 327 or 1103 of this title, such professional person is not a disinterested person, or represents or holds an interest adverse to the interest of the estate with respect to the matter on which such professional person is employed. §329. Debtor's transactions with attorneys (a) Any attorney representing a debtor in a case under this title, or in connection with such a case, whether or not such attorney applies for compensation under this title, shall file with the court a statement of the compensation paid or agreed to be paid, if such payment or agreement was made after one year before the date of the filing of the petition, for services rendered or to be rendered in contemplation of and in connection with the case by such attorney, and the source of such compensation. (b) If such compensation exceeds the reasonable value of any such services, the court may cancel any such agreement, or order the return of any such payment, to the extent excessive, to— (1) the trustee, if the property transferred— (A) would have been property of the estate; or (B) was to be paid by or on behalf of the debtor under a plan under chapter 11 or 13 of this title; or (2) the entity that made such payment. § 330. Compensation of officers (a) After notice to any parties in interest and to the United States trustee and a hearing, and subject to sections 326, 328, and 329 of this title, the court may award to a trustee, to an examiner, to a professional person employed under section 327 or 1103 of this title, or to the debtor's attorney— (1) reasonable compensation for actual, necessary services rendered by such trustee, examiner, professional person, or V 5 attorney, as the case may be, and by any paraprofessional persons employed by such trustee, professional person, or attorney, as the case may be, based on the time, the nature, the extent, and the value of such sendees, and the cost of comparable services other than in a case under this title; and (2) reimbursement for actual, necessary expenses. (b) There shall be paid from the filing fee in a case under chapter 7 of this title $20 to the trustee serving in such case, after such trustee's services are rendered. § 331. Interim compensation A trustee, an examiner, a debtor's attorney, or any professional person employed under section 327 or 1103 of this title may apply to the court not more than once every 120 days after an order for relief in a case under this title, or more often if the court permits, for such compensation for services rendered before the date of such an application or reimbursement for expenses incurred before such date as is provided under section 330 of this title. After notice and a hearing, the court may allow and disburse to such applicant such compensation or reimbursement. SUBCHAPTER III — A D M i m S T R A T I O N

11 USC 341.

§ 341. Meetings of creditors and equity security holders (a) Within a reasonable time after the order for relief in a case under this title, there shall be a meeting of creditors.

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1285

 PUBLIC LAW 95-598—NOV. 6, 1978

92 STAT. 2565

(b) The court may order a meeting of any equity security holders. (c) The court may not preside at, and may not attend, any meeting under this section. § 342. Notice There shall be given such notice as is appropriate of an order for relief in a case under this title. § 343. Examination of the debtor The debtor shall appear and submit to examination under oath at the meeting of creditors under section 341(a) of this title. Creditors, any indenture trustee, or any trustee or examiner in the case may examiner the debtor. §344. Self-incrimination; immunity Immunity for persons required to submit to examination, to testify, or to provide information in a case under this title may be granted under part V of title 18. § 345. Money of estates (a) A trustee in a case under this title may make such deposit or investment of the money of the estate for which such trustee serves as will yield the maximum reasonable net return on such money, taking into account the safety of such deposit or investment. (b) Except with respect to a deposit or investment that is insured or guaranteed by the United States or by a department, agency, or instrumentality of the United States or backed by the full faith and credit of the United States, the trustee shall require from an entity with which such money is deposited or invested— (1) a bond— (A) in favor of the United States; (B) secured by the undertaking of a corporate surety approved by the court for the district in which the case is pending; and (C) conditioned on— (i) a proper accounting for all money so deposited or invested and for any return on such money; (ii) prompt repayment of such money and return; and (iii) faithful performance of duties as a depository; • or (2) the deposit of securities of the kind specified in section 15 of title 6. § 346. Special tax provisions (a) Except to the extent otherwise provided in this section, subsections (b), (c), (d), (e), (g), (h), (i), and (j) of this section apply notwithstanding any State or local law imposing a tax, but subject to the Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.). (b)(1) In a case under chapter 7 or 11 of this title concerning an individual, any income of the estate may be taxed under a State or local law imposing a tax on or measured by income only to the estate, and may not be taxed to such individual. Except as provided in section 728 of this title, if such individual is a partner in a partnership, any gain or loss resulting from a distribution of property from such partnership, or any distributive share of income, gain, loss, deduction, or credit of such individual that is distributed, or considered distributed, from such partnership, after the commencement of the case is gain, loss, income, deduction, or credit, as the case may be, of the estate.

' • ^H USC 342.

H USC 343.

11 USC 344. 18 USC 6001. H USC 345.

H USC 346.

Post, pp. 2604, 2626. Post, p. 2611.

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1286

 92 STAT. 2566 Post, p. 2611.

PUBLIC LAW 95-598—NOV. 6, 1978

(2) Except as otherwise provided in this section and in section 728 of this title, any income of the estate in such a case, and any State or local tax on or measured by such income, shall be computed in the same .p-^i: manner as the income and the tax of an estate. (8) The estate in such a case shall use the same accounting method as the debtor used immediately before the commencement of the case. (c)(1) The commencement of a ease under this title concerning a • corporation or a partnership does not effect a change in the status of such corporation or partnership for the purposes of any State or local law imposing a tax on or measured by income. Except as otherwise provided in this section and in section 728 of this title, any income of the estate in such case may be taxed only as though such case had not ,, ^, been commenced. (2) In such a case, except as provided in section 728 of this title, the trustee shall make any tax return otherwise required by State or local law to be filed by or on behalf of such operation or partnership in the '' ' same manner and form as such corporation or partnership, as the case may be, is required to make such return. Post, p. 2645. (d) In a case under chapter 13 of this title, any income of the estate or the debtor may be taxed under a State or local law imposing a tax on or measured by income only to the debtor, and may not be taxed to the estate. (e) A claim allowed under section 502(f) or 503 of this title, other than a claim for a tax that is not otherwise deductible or a capital expenditure that is not otherwise deductible, is deductible by the entity to which income of the estate is taxed unless such claim was deducted by another entity, and a deduction for such a claim is deemed to be a deduction attributable to a business. (f) The trustee shall withhold from any payment of claims for wages, salaries, commissions, dividends, interest, or other payments, or collect, any amount required to be withheld or collected under applicable State or local tax law, and shall pay such withheld or collected amount to the appropriate governmental unit at the time and in the manner required by such tax law, and with the same priority as the claim from which such amount was withheld was paid. (g)(1) Neither gain nor loss shall be recognized on a transfer— (A) by operation of law, of property to the estate; (B) other than a sale, of property from the estate to the debtor; or Post, p. 2626. (C) in a case under chapter 11 of this title concerning a corporation, of property from the estate to a corporation that is an affiliate participating in a joint plan with the debtor, or that is a J successor to the debtor under the plan, except that gain or loss in the recognition of gain or loss under section 371 of the Internal Revenue Code of 1954 (26 U.S.C. 371). • - ' (2) The transferee of a transfer of a kind specified in this subsection shall take the property transferred with the same character, and with the transferor's basis, as adjusted under subsection (j)(5) of this section, and holding period. Post, p. 2641. (h) Notwithstanding sections 728(a) and 1146(a) of this title, for the purpose of determining the number of taxable periods during which the debtor or the estate may use a loss carryover or a loss carryback, the taxable period of the debtor during which the case is commenced is deemed not to have been terminated by such commencement.
 * l may be recognized to the same extent that such transfer results

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1287

 PUBLIC LAW 95-598—NOV. 6, 1978

92 STAT. 2567

(i)(1) In a case under chapter 7 or 11 of this title concerning an Post, pp. 2604, individual, the estate shall succeed to the debtor's tax attributes, 2626. including— (A) any investment credit carryover; ^B) any recovery exclusion; (C) any loss carryover; (D) any foreign tax credit carryover; (E) any capital loss carryover; and (F) any claim of right. (2) After such a case is closed or dismissed, the debtor shall succeed to any tax attribute to which the estate succeeded under paragraph (1) of this subsection but that was not utilized by the estate. The debtor may utilize such tax attributes as though any applicable time limitations on such utilization by the debtor were suspended during the time during which the case was pending. (3) In such a case, the estate may carry back any loss of the estate to a taxable period of the debtor that ended before the order for relief under such chapter the same as the debtor could have carried back such loss had the debtor incurred such loss and the case under this title had not been commenced, but the debtor may not carry back any loss of the debtor from a taxable period that ends after such order to any taxable period of the debtor that ended before such order until after the case is closed. (j)(1) Except as otherwise provided in this subsection, income is not realized by the estate, the debtor, or a successor to the debtor by reason of forgiveness or discharge of indebtedness in a case under this title. (2) For the purposes of any State or local law imposing a tax on or measured by income, a deduction with respect to a liability may not be allowed for any taxable period during or after which such liability is forgiven or discharged under this title. In this paragraph, "a deduction with respect to a liability" includes a capital loss incurred on the , disposition of a capital asset with respect to a liability that was incurred in connection with the acquisition of such asset. (3) Except as provided in paragraph (4) of this subsection, for the purpose of any State or local law imposing a tax on or measured by income, any net operating loss of an individual or corporate debtor, including a net operating loss carryover to such debtor, shall be .; > reduced by the amount of indebtedness forgiven or discharged in a case under this title, except to the extent that such forgiveness or discharge resulted in a disallowance under paragraph (2) of this '' subsection. (4) A reduction of a net operating loss or a net operating loss carryover under paragraph (3) of this subsection or of basis under paragraph (5) of this subsection is not required to the extent that the indebtedness of an individual or corporate debtor forgiven or discharged— (A) consisted of items of a deductible nature that were not deducted by such debtor; or (B) resulted in an expired net operating loss carryover or other deduction that— (i) did not offset income for any taxable period; and (ii) did not contribute to a net operating loss in or a net operating loss carryover to the taxable period during or after which such indebtedness was discharged.

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1288

 92 STAT. 2568 ^

11 USC 347. Post, pp. 2608, 2650. 28 USC 2041.

Post, pp. 2624, 2635, 2644. 11 USC 348.

Post, p. 2604.

PUBLIC LAW 95-598—NOV. 6, 1978 (5) For the purposes of a State or local law imposing a tax on or measured by income, the basis of the debtor's property or of property transferred to an entity required to use the debtor's basis in whole or in part shall be reduced by the lesser of— (A)(i) the amount by which the indebtedness of the debtor has been forgiven or discharged in a case under this title; minus (ii) the total amount of adjustments made under paragraphs (2) and (3) of this subsection; and (B) the amount by which the total basis of the debtor's assets that were property of the estate before such forgiveness or discharge exceeds the debtor's total liabilities that were liabilities both before and after such forgiveness or discharge. (6) Notwithstanding paragraph (5) of this subsection, basis is not required to be reduced to the extent that the debtor elects to treat as taxable income, of the taxable period in which indebtedness is forgiven or discharged, the amount of indebtedness forgiven or discharged that otherwise would be applied in reduction of basis under paragraph (5) of this subsection. (7) For the purposes of this subsection, indebtedness with respect to which an equity security, other than an interest of a limited partner in a limited partnership, is issued to the creditor to whom such indebtedness was owned, or that is forgiven as a contribution to capital by an equity security holder other than a limited partner in the debtor, is not forgiven or discharged in a case under this title— (A) to any extent that such indebtedness did not consist of ' items of a deductible nature; or (B) if the issuance of such equity security has the same con' sequences under a law imposing a tax on or measured by income to such creditor as a payment in cash to such creditor in an amountequal to the fair market value of such equity security, then to the lesser of— (i) the extent that such issuance has the same such consequences; and (ii) the extent of such fair market value. § 347. Unclaimed property (a) Ninety days after the final distribution under section 726 or 1326 of this title in a case under chapter 7 or 13 of this title, as the case may be, the trustee shall stop payment on any check remaining unpaid, and any remaining property of the estate shall be paid into the court and disposed of under chapter 129 of title 28. (b) Any security, money, or other property remaining unclaimed at the expiration of the time allowed in a case under chapter 9 or 11 of this title for the presentation of a security or the performance of any other act as a condition to participation in the distribution under any plan confirmed under section 943(b), 1129, or 1173 of this title, as the case may be, becomes the property of the debtor or of the entity acquiring the assets of the debtor under the plan, as the case may be. § 348. Effect of conversion (a) Conversion of a case from a case under one chapter of this title to a case under another chapter of this title constitutes an order for relief under the chapter to which the case is converted, but, except as provided in subsections (b) and (c) of this section, does not effect a change in the date of the filing of the petition, the commencement of the case, or the order for relief. (b) Unless the court for cause orders otherwise, in sections 701(a),

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1289

 PUBLIC LAW 95-598—NOV. 6, 1978

92 STAT. 2569

727(a) (10), 727(b), 728(a), 728(b), 1102(a), 1110(a)(1), 1121(b), 1121(c), 1141(d)(4), 1146(a), 1146(b), 1301(a), 1305(a), and 1328(a) of this title, "the order for relief under this chapter" in a chapter to which a case has been converted under section 706, 1112, or 1307 of this title means the conversion of such case to such chapter. (c) Sections 342 and 365(d) of this title apply in a case that has been converted under section 706, 1112, or 1307 of this title, as if the conversion order were the order for relief. (d) A claim against the estate or the debtor that arises after the order for relief but before conversion in a case that is converted under section 1112 or 1307 of this title, other than a claim specified in section 503(b) of this title, shall be treated for all purposes as if such claim had arisen immediately before the date of the filing of the petition. (e) Conversion of a case under section 706, 1112, or 1307 of this title terminates the service of any trustee or examiner that is serving in the case before such conversion. § 349. Effect of dismissal (a) Unless the court, for cause, orders otherwise, the dismissal of a case under this title does not bar the discharge, in a later case under this title, of debts that were dischargeable in the case dismissed. (b) Unless the court, for cause, orders otherwise, a dismissal of a case other than under section 742 of this title— (1) reinstates— (A) any proceeding or custodianship superseded under section 543 of this title; (B) any transfer avoided under section 522, 544, 545, 547, 548, 549, or 724(a) of this title, or preserved under section 510(c)(2), 522(i)(2), or 551 of this title; and (C) any lien voided under section 506(d) of this title; (2) vacates any order, judgment, or transfer ordered, under section 522(i)(1), 542, 550, or 553 of this title; and (3) revests the property of the estate in the entity in which such property was vested immediately before the commencement of the case under this title. § 350. Closing and reopening cases (a) After an estate is fully administered and the court has discharged the trustee, the court shall close the case. (b) a case may be reopened in the court in which such case was closed to administer assets, to accord relief to the debtor, or for other cause.

Pos^ pp. 2609, 2611, 2626, ?^^^' ff^}' 2545 I547 265o' ' Post, pp. 2606, 2630, 2647.

H USC 349.

Post, p. 2613. Post, ip. 2595. Post, pp. 2596-2601, j^^J' 26O2 ^' Post, pp. 2601, 2602. H USC 350.

SUBCHAPTER IV—ADMINISTRATIVE POWERS § 361. Adequate protection H USC 361. When adequate protection is required under section 362, 363, or 364 of this title of an interest of an entity in property, such adequate protection may be provided by— (1) requiring the trustee to make periodic cash payments to such entity, to the extent that the stay under section 362 of this title, use, sale, or lease under section 363 of this title, or any grant f of a lien under section 364 of this title results in a decrease in the value of such entity's interest in such property; (2) providing to such entity an additional or replacement lien to the extent that such stay, use, sale, lease, or grant results in a

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1290

 92 STAT. 2570

PUBLIC LAW 95-598—NOV. 6, 1978

decrease in the value of such entity's interest in such property; or (3) granting such other relief, other than entitling such entity to compensation allowable under section 503(b)(1) of this title as an administrative expense, as will result in the realization by such entity of the indubitable equivalent of such entity's interest in such property. 11 USC 362. § 362. Automatic stay (a) Except as provided in subsection (b) of this section, a petition filed under section 301, 302, or 303 of this title operates as a stay, applicable to all entities, of— (1) the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other '. proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title; (2) the enforcement, against the debtor or against property of the estate, of a judgment obtained before the commencement of the case under this title; (3) any act to obtain possession of property of the estate or ^- of property from the estate; (4) any act to create, perfect, or enforce any lien against property of the estate; (5) any act to create, perfect, or enforce against property of the debtor any lien to the extent that such lien secures a claim that arose before the commencement of the case under this title; (6) any act to collect, assess, or recover a claim against the debtor that arose before the commencement of the case under this ': title; (7) the setoff of any debt owing to the debtor that arose before the commencement of the case under this title against any claim against the debtor; and (8) the commencement or continuation of a proceeding before the United States Tax Court concerning the debtor. (b) The filing of a petition under section 301, 302, or 303 of this title does not operate as a stay— (1) under subsection (a) of this section, of the commencement or continuation of a criminal action or proceeding against the debtor; (2) under subsection (a) of this section, of the collection of alimony, maintenance, or support from property that is not property of the estate; (3) under subsection (a) of this section, of any act to perfect ^ an interest in property to the extent that the trustee's rights and Post, p. 2597. powers are subject to such perfection under section 546(b) of this title; (4) under subsection (a)(1) of this section, of the commencement or continuation of an action or proceeding by a governmental unit to enforce such governmental unit's police or regulatory power; (5) under subsection (a)(2) of this section, of the enforcement of a judgment, other than a money judgment, obtained in an action or proceeding by a governmental unit to enforce such I governmental unit's police or regulatory power; (6) under subsection (a)(7) of this section, of the setoff of any mutual debt and claim that are commodity futures contracts,

�


text: Dictionary of National Biography, 1901 supplement/Müller, Friedrich Max


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1291

 PUBLIC LAW 95-598—NOV. 6, 1978

92 STAT. 2571

forward commodity contracts, leverage transactions, options, warrants, rights to purchase or sell commodity futures contracts or securities, or options to purchase or sell commodities or securities; (7) under subsection (a) of this section, of the commencement of any action by the Secretary of Housing and Urban Development to foreclose a mortgage or deed of trust in any case in which the mortgage or deed of trust held by said Secretary is insured or was formerly insured under the National Housing Act and covers property, or combinations of property, consisting of five or more living units; or (8) under subsection (a) of this section, of the issuance to the debtor by a governmental unit of a notice of tax deficiency. (c) Except as provided in subsections (d), (e), and (f) of this section— (1) the stay of an act against property of the estate under subsection (a) of this section continues until such property is no longer property of the estate; and (2) the stay of any other act under subsection (a) of this section continues until the earliest of— (A) the time the case is closed; (B) the time the case is dismissed; and (C) if the case is a case under chapter 7 of this title concerning an individual or a case under chapter 9, 11, or 13 of this title, the time a discharge is granted or denied. (d) On request of a party in interest and after notice and a hearing, the court shall grant relief from the stay provided under subsection (a) of this section, such as by terminating, annulling, modifying, or conditioning such stay— (1) for cause, including the lack of adequate protection of an interest in property of such party in interest; or (2) with respect to a stay of an act against property, if— (A) the debtor does not have an equity in such property; and (B) such property is not necessary to an effective reorganization. (e) Thirty days after a request under subsection (d) of this section for relief from the stay of any act against property of the estate under subsection (a) of this section, such stay is terminated with respect to the party in interest making such request, unless the court, after notice and a hearing, orders such stay continued in effect pending, or as a result of, a final hearing and determination under subsection (d) of this section. A hearing under this subsection may be a preliminary hearing, or may be consolidated with the final hearing under subsection (d) of this section. If the hearing under this subsection is a preliminary hearing— (1) the court shall order such stay so continued if there is a reasonable likelihood that the party opposing relief from such stay will prevail at the final hearing under subsection (d) of this section; and (2) such final hearing shall be commenced within thirty days after such preliminary hearing. (f) The court, without a hearing, shall grant such relief from the stay provided under subsection (a) of this section as is necessary to prevent irreparable damage to the interest of an entity in property, if such interest will suffer such damage before there is an opportunity

12 USC 1701.

Post, p. 2604. Post, pp. 2621, 2626, 2645.

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1292

 92 STAT. 2572

PUBLIC LAW 95-598—NOV. 6, 1978

for notice and a hearing under subsection (d) or (e) of this section, (g) In any hearing under subsection (d) or (e) of this section concerning relief from the stay of any act under subsection (a) of this section— (1) the party requesting such relief has the burden of proof on the issue of the debtor's equity in property; and (2) the party opposing such relief has the burden of proof on all other issues, 11 USC 363. § 36a. Use, sale, or lease of property Cash collateral. (a) In this section, "cash collateral" means cash, negotiable instruments, documents of title, securities, deposit accounts, or other cash equivalents in which the estate and an entity other than the estate have an interest. Notice and (b) The trustee, after notice and a hearing, may use, sell, or lease, hearing. other than in the ordinary course of business, property of the estate. (c)(1) If the business of the debtor is authorized to be operated Post, pp. 2606, under section 721, 1108, or 1304 of this title and unless the court orders 2629, 2646. otherwise, the trustee may enter into transactions, including the sale or lease of property of the estate, in the ordinary course of business, without notice or a hearing, and may use property of the estate in the ordinary course of business without notice or a hearing. (2) The trustee may not use, sell, or lease cash collateral under paragraph (1) of this subsection unless— (A) each entity that has an interest in such cash collateral consents; or (B) the court, after notice and a hearing, authorizes such use, sale, or lease in accordance with the provisions of this section. (3) Any hearing under paragraph (2)(B) of this subsection may be a preliminary hearing or may be consolidated with a hearing under subsection (e) of this section, but shall be scheduled in accordance with the needs of the debtor. If the hearing under paragraph (2)(B) of this subsection is a preliminary hearing, the court may authorize such use, sale, or lease only if there is a reasonable likelihood that the trustee will prevail at the final hearing under subsection (e) of this section. The court shall act promptly on any request for authorization under paragraph (2)(B) of this subsection. (4) Except as provided in paragraph (2) of this subsection, the trustee shall segregate and account for any cash collateral in the trustee's possession, custody, or control. (d) The trustee may use, sell, or lease property under subsection (b) or (c) of this section only to the extent not inconsistent with any relief granted under section 362(c), 362(d), 362(e), or 362(f) of this title. (e) Notwithstanding any other provision of this section, at any time, on request of an entity that has an interest in property used, sold, or leased, or proposed to be used, sold, or leased, by the trustee, the court shall prohibit or condition such use, sale, or lease as is necessary to provide adequate protection of such interest. In any hearing under this section, the trustee has the burden of proof on the issue of adequate protection. (f) The trustee may sell property under subsection (b) or (c) of this section free and clear of any interest in such property of an entity other than the estate, only if— (1) applicable nonbankruptcy law permits sale of such property free and clear of such interest;., (2) such entity consents;

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1293

 PUBLIC LAW 95-598—NOV. 6, 1978

92 STAT. 2573

(3) such interest is a lien and the price at which such property is to be sold is greater than the aggregate value of such interest; (4) such interest is in bona fide dispute; or (5) such entity could be compelled, in a legal or equitable proceeding, to accept a money satisfaction of such interest. (g) Notwithstanding subsection (f) of this section, the trustee may sell property under subsection (b) or (c) of this section free and clear of any vested or contingent right in the nature of dower or curtesy. (h) Notwithstanding subsection (f) of this section, the trustee may sell both the estate's interest, under subsection (b) or (c) of this section, and the interest of any co-owner in property in which the debtor had, immediately before the commencement of the case, an undivided interest as a tenant in common, joint tenant, or tenant by the entirety, only if— (1) partition in kind of such property among the estate and such co-owners is impracticable; (2) sale of the estate's undivided interest in such property would realize significantly less for the estate than sale of such property free of the interests of such co-owners; (3) the benefit to the estate of a sale of such property free of the interests of co-owners outweighs the detriment, if any, to such co-owners; and (4) such property is not used in the production, transmission, or distribution, for sale, of electric energy or of natural or synthetic gas for heat, light, or power. (i) Before the consummation of a sale of property to which subsection (g) or (h) of this section applies, or of property of the estate that was community property of the debtor and the debtor's spouse immediately before the commencement of the case, the debtor's spouse, or a co-owner of such property, as the case may be, may purchase such property at the price at which such sale is to be consummated. (]) After a sale of property to which subsection (g) or (h) of this section applies, the trustee shall distribute to the debtor's spouse or the co-owners of such property, as the case may be, and to the estate, the proceeds of such sale, less the costs and expenses, not including any compenation of the trustee, of such sale, according to the interests of such spouse or co-owners, and of the estate. (k) At a sale under subsection (b) of this section of property that is subject to a lien that secures an allowed claim, if the holder of such claim purchases such property, such holder may offset such claim against the purchase price of such property. (1) The trustee may use, sell, or lease property under subsection (b) or (c) of this section, or a plan under chapter 11 or 13 of this title may Post, pp. 2626, provide for the use, sale, or lease of property, notwithstanding any pro- 2645. vision in a contract, a lease, or applicable law that is conditioned on the insolvency or financial conditions of the debtor, on the commencement of a case under this title concerning the debtor, or on the appointment of a taking possession by a trustee in a case under this title or a , custodian, and that effects, or gives an option to effect, a forfeiture, modification, or termination of the debtor's interests in such property. (m) The reversal or modification on appeal of an authorization under subsection (b) or (c) of this section of a sale or lease of property does not affect the validity of a sale or lease under such authorization to an entity that purchased or leased such property in good faith, whether or not such entity knew of the pendency of the appeal, unless such authorization and such sale or lease were stayed pending appeal. (n) The trustee may void a sale under this section if the sale price

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1294

 92 STAT. 2574

PUBLIC LAW 95-598—NOV. 6, 1978 was controlled by an agreement among potential bidders at such sale, or may recover from a party to such agreement any amount by which the value of the property sold exceeds the price at which such sale was consummated, and may recover any costs, attorneys' fees, or expenses incurred in voiding such sale or recovering such amount. The court may grant judgment in favor of the estate and against any such party that entered into such agreement in willful disregard of this subsection for punitive damages in addition to any recovery under the preceding sentence.

11 USC 364.

§ 364. Obtaining credit (a) If the trustee is authorized to operate the business of the debtor Post, pp. 2606, under section 721, 1108, or 1304 of this title, unless the court orders 2629, 2646. otherwise, the trustee may obtain unsecured credit and incur unsecured debt in the ordinary course of business allowable under section 503 (b)(1) of this title as an administrative expense. Notice and (b) The court, after notice and a hearing, may authorize the trustee hearing. to obtain unsecured credit or to incur unsecured debt other than under subsection (a) of this section, allowable under section 503(b)(1) of this title as an administrative expense. (c) If the trustee is unable to obtain unsecured credit allowable under section 503(b)(1) of this title as an administrative expense, the court, after notice and a hearing, may authorize the obtaining of credit or the incurring of debt— (1) with priority over any or all administrative expenses of the kind specified in section 503(b) or 507(b) of this title; (2) secured by a lien on property of the estate that is not otherwise subject to a lien; or (3) secured by a junior lien on property of the estate that is subject to a lien. (d)(1) The court, after notice and a hearing, may authorize the obtaining of credit or the incurring of debt secured by a senior or equal lien on property of the estate that is subject to a lien only if— (A) the trustee is unable to obtain such credit otherwise; and (B) there is adequate protection of the interest of the holder of the lien on the property of the estate on which such senior or equal lien is proposed to be granted. (2) In any hearing under this subsection, the trustee has the burden of proof on the issue of adequate protection. (e) The reversal or modification on appeal of an authorization under this section to obtain credit or incur debt, or of a grant under this section of a priority or a lien, does not affect the validity of any debt so incurred, or any priority or lien so granted, to an entity that extended such credit in good faith, whether or not such entity knew of the pendency of the appeal, unless such authorization and the incurring of such debt, or the granting of such priority or lien, were stayed pending appeal. (f) Except with respect to an entity that is an underwriter as defined Post, p. 2639. in section 1145(b) of this title, section 5 of the Securities Act of 1933 (15 U.S.C. 77e), the Trust Indenture Act of 1939 (15 U.S.C. 77aaa et seq.), and any State or local law requiring registration for offer or sale of a security or registration or licensing of an issuer of, underwriter of, or broker or dealer in, a security does not apply to the offer or sale under this section of a security that is not an equity security. 11 USC 365. § 365. Executory contracts and unexpired leases Post, p. 2619. (a) Except as provided in sections 765 and 766 of this title and in subsections (b), (c),and (d) of this section, the tinistee, subject to the

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1295

 PUBLIC LAW 95-598—NOV. 6, 1978

92 STAT. 2575

court's approval, may assume or reject any executory contract or unexpired lease of the debtor. (b)(1) If there has been a default in an executory contract or unexpired lease of the debtor, the trustee may not assume such contract or lease unless, at the time of assumption of such contract or lease, the trustee—• (A) cures, or provides adequate assurance that the trustee will promptly cure, such default; (B) compensates, or provides adequate assurance that the trustee will promptly compensate, a party other than the debtor to such contract or lease, for any actual pecuniary loss to such party resulting from such default; and (C) provides adequate assurance of future performance under such contract or lease. (2) Paragraph (1) of this subsection does not apply to a default that is a breach of a provision relating to—• (A) the insolvency or financial condition of the debtor at any time before the closing of the case; (B) the commencement of a case under this title; or (C) the appointment of or taking possession by a trustee in a case under this title or a custodian before such commencement. (3) For the purposes of paragraph (1) of this section, adequate assurance of future performance of a lease of real property in a shopping center includes adequate assurance— (A) of the source of rent and other consideration due under such lease; (B) that any percentage rent due under such lease will not decline substantially; (C) that assumption or assignment of such lease will not breach substantially any provision, such as a radius, location, use, or exclusivity provision, in any other lease, financing agreement, or master agreement relating to such shopping center; and (D) that assumption or assignment of such lease will not disrupt substantially any tenant mix or balance in such shopping center. (4) Notwithstanding any other provision of this section, if there has been a default in an unexpired lease of the debtor, other than a default of a kind specified in paragraph (2) of this subsection, the trustee may not require a lessor to provide services or supplies incidental to such lease before assumption of such lease unless the lessor is compensated under the terms of such lease for any services and supplies provided under such lease before assumption of such lease. (c) The trustee may not assume or assign an executory contract or unexpired lease of the debtor, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties, if— (1)(A) applicable law excuses a party, other than the debtor, to such contract or lease from accepting performance from or rendering performance to the trustee or an assignee of such contract or lease, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties; and (B) such party does not consent to such assumption or assignment; or (2) such contract is a contract to make a loan, or extend other debt financing or financial accommodations, to or for the benefit of the debtor, or to issue a security of the debtor. (d)(1) In a case under chapter 7 of this title, if the trustee does Post, p. 2604. not assume or reject an executory contract or unexpired lease of the debtor within 60 days after the order for relief, or within such addi-

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1296

 92 STAT. 2576

PUBLIC LAW 95-598—NOV. 6, 1978

tional time as the court, for cause, within such 60-day period, fixes, then such contract or lease is deemed rejected. Post, pp. 2621, (2) In a case under chapter 9,11, or 13 of this title, the trustee may 2626, 2645. assume or reject an executory contract or unexpired lease of the debtor at any time before the confirmation of a plan, but the court, on request of any party to such contract or lease, may order the trustee to determine within a specified period of time whether to assume or reject such contract or lease. (e)(1) Notwithstanding a provision in an executory contract or unexpired lease, or in applicable law, an executory contract or unexpired lease of the debtor may not be terminated or modified, and any right or obligation under such contract or lease may not be terminated or modified, at any time after the commencement of the case solely because of a provision in such contract or lease that is conditioned on— (A) the insolvency or financial condition of the debtor at any time before the closing of the case; (B) the commencement of a case under this title; or (C) the appointment of or taking possession by a trustee in a case under this title or a custodian before such commencement. (2) Paragraph (1) of this subsection does not apply to an executory contract or unexpired lease of the debtor, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties, if— (A)(i) applicable law excuses a party, other than the debtor, to such contract or lease from accepting performance from or rendering performance to the trustee or to an assignee of such -• • contract or lease, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties; and (ii) such party does not consent to such assumption or assignment; or (B) such contract is a contract to make a loan, or extend other debt financing or financial accommodations, to or for the benefit of the debtor, or to issue a security of the debtor. (f)(1) Except as provided in subsection (c) of this section, notwithstanding a provision in an executory contract or unexpired lease ' of the debtor, or in applicable law, that prohibits, restricts, or conditions the assignment of such contract or lease, the trustee may assign such contract or lease under paragraph (2) of this subsection. (2) The trustee may assign an executory contract or unexpired lease of the debtor only if— (A) the trustee assumes such contract or lease in accordance with the provisions of this section; and (B) adequate assurance of future performance by the assignee of such contract or lease is provided, whether or not there has been a default in such contract or lease. (3) Notwithstanding a provision in an executory contract or unexpired lease of the debtor, or in applicable law that terminates or modifies, or permits a party other than the debtor to terminate or modify, such contract or lease or a right or obligation under such contract or lease on account of an assignment of such contract or lease, such contract, lease, right, or obligation may not be terminated or modified under such provision because of the assumption or assignment of such contract or lease by the trustee. ,, (g) Except as provided in subsections (h)(2) and (i)(2) of this section, the rejection of an executory contract or unexpired lease of the debtor constitutes a breach of such contract or lease—

�


text:
Page:Hockey, Canada's Royal Winter Game.djvu/14

 his desire to give a perpetual challenge cup to be emblematic of the championship of the Dominion.

This was made known at a dinner tendered the Ottawa Hockey team, of which His Excellency was patron, when Lord Kilcoursie, who represented Lord Stanley, read a letter in which the latter said, "I have for some time been thinking that it would be a good thing if there were a challenge cup which would be held, from year to year, by the leading hockey club in Canada. There does not appear to be any such outward or visible sign of the championship at present, and considering the interest that hockey matches now elicit, and the importance of having the games fairly played under rules generally recognized, I am willing to give a cup that shall be held from year to year by the winning club."

The cup was subsequently entrusted to Sheriff Sweetland and Mr. P. D. Ross, of Ottawa, who were instructed to hand it over to the Montreal A.A.A. Hockey Club, as winners of the Amateur Hockey Association championship.

In view of the fact that there were several hockey associations in Canada, Lord Stanley asked the trustees to suggest some means of making the competitions for the cup open to all, and thus, as representative as


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1297

 PUBLIC LAW 95-598—NOV. 6, 1978

92 STAT. 2577

(1) if such contract or lease has not been assumed under this section or under a plan confirmed under chapter 9, 11, or 13 of this title, immediately before the date of the filing of the petition; or (2) if such contract or lease has been assumed under this section or under a plan confirmed under chapter 9,11, or 13 of this title— (A) if before such rejection the case has not been converted under section 1112 or 1307 of this title, at the time of such rejection; or (B) if before such rejection the case has been converted under section 1112 or 1307 of this title— 7 (i) immediately before the date of such conversion, if such contract or lease was assumed before such conversion; or s: / (ii) at the time of such rejection, if such contract or lease was assumed after such conversion, (h)(1) If the trustee rejects an unexpired lease of real property of the debtor under which the debtor is the lessor, the lessee under such lease may treat the lease as terminated by such rejection, or, in the alternative, may remain in possession for the balance of the term of such lease and any renewal or extension of such term that is enforceable by such lessee under applicable nonbankruptcy law. (2) If such lessee remains in possession, such lessee may offset against the rent reserved under such lease for the balance of the term after the date of the rejection of such lease, and any such renewal or extension, any damages occurring after such date caused by the nonperformance of any obligation of the debtor after such date, but such lessee does not have any rights against the estate on account of any damages arising after such date from such rejection, other than such offset. (i)(1) If the trustee rejects an executory contract of the debtor for the sale of real property under which the purchaser is in possession, such purchaser may treat such contract as terminated, or, in the alternative, may remain in possession of such real property. (2) If such purchaser remains in possession— (A) such purchaser shall continue to make all payments due under such contract, but may, offset against such payments any damages occurring after the date of the rejection of such contract caused by the nonperformance of any obligation of the debtor after such date, but such purchaser does not have any rights against the estate on account of any damages arising after such date from such rejection, other than such offset; and (B) the trustee shall deliver title to such purchaser in accordance with the provisions of such contract, but is relieved of all other obligations to perform under such contract. (j) A purchaser that treats an executory contract as terminated under subsection (i) of this section, or a party whose executory contract to purchase real property from the debtor is reiected and under which such party is not in possession, has a lien on the interest of the debtor in such property for the recovery of any portion of the purchase price that such purchaser or party has paid. (k) Assignment by the trustee to an entity of a contract or lease assumed under this section relieves the trustee and the estate from any liability for any breach of such contract or lease occurring after such assignment.

Post, pp. 2621, 2626, 2645.

Post, pp. 2630, 2647.

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1298

 92 STAT. 2578

PUBLIC LAW 95-598—NOV. 6, 1978

11 USC 366.

§ 366. Utility service (a) Except as provided in subsection (b) of this section, a utility may not alter, refuse, or discontinue service to, or discriminate against, the trustee or the debtor solely on the basis that a debt owed by the debtor to such utility for service rendered before the order for relief was not paid when due. (b) Such utility may alter, refuse, or discontinue service if neither i'.; '• the trustee nor the debtor, within 20 days after the date of the order for relief, furnishes adequate assurance of payment, in the form of a deposit or other security, for service after such date. On request of a party in interest and after notice and a hearing, the court may order reasonable modification of the amount of the deposit or other security necessary to provide adequate assurance of payment.

CHAPTER 5—CREDITORS, THE DEBTOR, AND THE ESTATE Sec. 501. 502. 503. 504. 505. 506. 507. 508. 509. 510.

SUBCHAPTER I-CREDITORS AND CLAIMS Filing of proofs of claims or interests. Allowance of claims or interests. Allowance of administrative expenses. Sharing of compensation. Determination of tax liability, Determination of secured status. Priorities. Effect of distribution other than under this title. Claims of codebtors. Subordination.

SUBCHAPTER II—DEBTOR'S DUTIES AND BENEFITS 521. 522. 523. 524. 525.

Debtor's duties. Exemptions. Exceptions to discharge. Effect of discharge. Protection against discriminatory treatment. SUBCHAPTER III — THE ESTATE

541. Property of the estate. 542. Turnover of property to the estate. 543. Turnover of property by a custodian. 544. Trustee as lien creditor and as successor to certain creditors and purchasers. 545. Statutory liens. 546. Limitations on avoiding powers. 547. Preferences. 548. Fraudulent transfers and obligations. 549. Postpetition transactions. 550. Liability of transferee of avoided transfer. 551. Automatic preservation of avoided transfer. 552. Postpetition effect of security interest. 553. Setoff. 554. Abandonment of property of the estate.

SUBCHAPTER I—CREDITORS AND CLAIMS 11 USC 501.

§ 501. Filing of proofs of claims or interests (a) A creditor or an indenture trustee may file a proof of claim. An equity security holder may file a proof of interest. (b) If a creditor does not timely file a proof of such creditx)r's claim, an entity that is liable to such creditor with the debtor, or that has secured such creditor, may file a proof of such claim.

�


text:
Page:United States Statutes at Large Volume 92 Part 2.djvu/1299

 PUBLIC LAW 95-598—NOV. 6, 1978

92 STAT. 2579

(c) If a creditor does not timely file a proof of such creditor's claim, the debtor or the trustee may file a proof of such claim. (d) A claim of a kind specified in section 502(f), 502(g), 502(h) or 502(i) of this title may be filed under subsection (a), (b), or (c) of this section the same as if such claim were a claim against the debtor and had arisen before the date of the filing of the petition. § 502. Allowance of claims or interests ^^ ^^^ ^^2. (a) A claim or interest, proof of which is filed under section 501 of this title, is deemed allowed, unless a party in interest, including a creditor of a partner in a partnership that is a debtor in a case under chapter 7 of this title, objects. . Post, f. 2604. (b) Except as provided in subsections (f), (g), (h) and (i) of this section, if such objection to a claim is made, the court, after notice and a hearing, shall determine the amount of such claim as of the date of the filing of the petition, and shall allow such claim in such amount, except to the extent that— (1) such claim is unenforceable against the debtor, and unenforceable against property of the debtor, under any agreement or applicable law for a reason other than because such claim is contingent or unmatured; (2) such claim is for unmatured interest; (3) such claim may be oiffset under section 553 of this title Post, p. 2602. against a debt owing to the debtor; (4) if such claim is for a tax assessed against property of the estate, such claim exceeds value of the interest of the estate in such property; (5) if such claim is for services of an insider or attorney of the debtor, such claim exceeds the reasonable value of such services; (6) the claim is for a debt that is unmatured on the date of the filing of the petition, and that is excepted from discharge under section 523(a)(5) of this title | (7) if such claim is the claim of a lessor for damages resulting from the termination of a lease of real property, such claim exceeds— (A) the rent reserved by such lease, without acceleration, for the greater of one year, or 15 percent, not to exceed three years, of the remaining term of such lease, following the earlier of— (i j the date of the filing of the petition; and (ii) the date on which such lessor reposessed, or the lessee surrendered, the leased property; plus (B) any unpaid rent due under such lease, without acceleration, on the earlier of such dates; (8) if such claim is for damages resulting from the termination of an employment contract, such claim exceeds— (A) the compensation provided by such contract, without acceleration, for one year following the earlier of— (i) the date of the filing of the petition; and (ii) the date on which the employer directed the employee to terminate, or such employee terminated, performance under such contract; plus (B) the unpaid compensation due under such contract without acceleration, on the earlier of such dates; or (9) such claim results from a reduction, due to late payment, in the amount of an otherwise applicable credit available to the

�