Temple City Bankruptcy Attorney, Bankruptcy Lawyer, Bankruptcy Code 11 USC Section 749

TITLE 11 - BANKRUPTCY
CHAPTER 7 - LIQUIDATION
    SUBCHAPTER III - STOCKBROKER LIQUIDATION

-HEAD-
    Sec. 749. Voidable transfers

-STATUTE-
      (a) Except as otherwise provided in this section, any transfer of
    property that, but for such transfer, would have been customer
    property, may be avoided by the trustee, and such property shall be
    treated as customer property, if and to the extent that the trustee
    avoids such transfer under section 544, 545, 547, 548, or 549 of
    this title. For the purpose of such sections, the property so
    transferred shall be deemed to have been property of the debtor
    and, if such transfer was made to a customer or for a customer's
    benefit, such customer shall be deemed, for the purposes of this
    section, to have been a creditor.
      (b) Notwithstanding sections 544, 545, 547, 548, and 549 of this
    title, the trustee may not avoid a transfer made before five days
    after the order for relief if such transfer is approved by the
    Commission by rule or order, either before or after such transfer,
    and if such transfer is - 
        (1) a transfer of a securities contract entered into or carried
      by or through the debtor on behalf of a customer, and of any
      cash, security, or other property margining or securing such
      securities contract; or
        (2) the liquidation of a securities contract entered into or
      carried by or through the debtor on behalf of a customer.

-SOURCE-
    (Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2614; Pub. L. 97-222, Sec.
    14, July 27, 1982, 96 Stat. 238.)


                       HISTORICAL AND REVISION NOTES                   

                         SENATE REPORT NO. 95-989                     
      Section 749 indicates that if the trustee avoids a transfer,
    property recovered is customer property to any extent it would have
    been customer property but for the transfer. The section clarifies
    that a customer who receives a transfer of property of the debtor
    is a creditor and that property in a customer's account is property
    of a creditor for purposes of the avoiding powers.

                                AMENDMENTS                            
      1982 - Pub. L. 97-222 substituted "(a) Except as otherwise
    provided in this section, any" for "Any", and "but" for "except",
    inserted "such property", substituted "or 549" for "549, or
    724(a)", and added subsec. (b).

-End-
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