Laws: Cases and Codes : U.S. Code : Title 11 : Section 546


   
U.S. Code as of: 01/19/04
Section 546. Limitations on avoiding powers

      (a) An action or proceeding under section 544, 545, 547, 548, or
    553 of this title may not be commenced after the earlier of - 
        (1) the later of - 
          (A) 2 years after the entry of the order for relief; or
          (B) 1 year after the appointment or election of the first
        trustee under section 702, 1104, 1163, 1202, or 1302 of this
        title if such appointment or such election occurs before the
        expiration of the period specified in subparagraph (A); or

        (2) the time the case is closed or dismissed.

      (b)(1) The rights and powers of a trustee under sections 544,
    545, and 549 of this title are subject to any generally applicable
    law that - 
        (A) permits perfection of an interest in property to be
      effective against an entity that acquires rights in such property
      before the date of perfection; or
        (B) provides for the maintenance or continuation of perfection
      of an interest in property to be effective against an entity that
      acquires rights in such property before the date on which action
      is taken to effect such maintenance or continuation.

      (2) If - 
        (A) a law described in paragraph (1) requires seizure of such
      property or commencement of an action to accomplish such
      perfection, or maintenance or continuation of perfection of an
      interest in property; and
        (B) such property has not been seized or such an action has not
      been commenced before the date of the filing of the petition;

    such interest in such property shall be perfected, or perfection of
    such interest shall be maintained or continued, by giving notice
    within the time fixed by such law for such seizure or such
    commencement.
      (c) Except as provided in subsection (d) of this section, the
    rights and powers of a trustee under sections 544(a), 545, 547, and
    549 of this title are subject to any statutory or common-law right
    of a seller of goods that has sold goods to the debtor, in the
    ordinary course of such seller's business, to reclaim such goods if
    the debtor has received such goods while insolvent, but - 
        (1) such a seller may not reclaim any such goods unless such
      seller demands in writing reclamation of such goods - 
          (A) before 10 days after receipt of such goods by the debtor;
        or
          (B) if such 10-day period expires after the commencement of
        the case, before 20 days after receipt of such goods by the
        debtor; and

        (2) the court may deny reclamation to a seller with such a
      right of reclamation that has made such a demand only if the
      court - 
          (A) grants the claim of such a seller priority as a claim of
        a kind specified in section 503(b) of this title; or
          (B) secures such claim by a lien.

      (d) In the case of a seller who is a producer of grain sold to a
    grain storage facility, owned or operated by the debtor, in the
    ordinary course of such seller's business (as such terms are
    defined in section 557 of this title) or in the case of a United
    States fisherman who has caught fish sold to a fish processing
    facility owned or operated by the debtor in the ordinary course of
    such fisherman's business, the rights and powers of the trustee
    under sections 544(a), 545, 547, and 549 of this title are subject
    to any statutory or common law right of such producer or fisherman
    to reclaim such grain or fish if the debtor has received such grain
    or fish while insolvent, but - 
        (1) such producer or fisherman may not reclaim any grain or
      fish unless such producer or fisherman demands, in writing,
      reclamation of such grain or fish before ten days after receipt
      thereof by the debtor; and
        (2) the court may deny reclamation to such a producer or
      fisherman with a right of reclamation that has made such a demand
      only if the court secures such claim by a lien.

      (e) Notwithstanding sections 544, 545, 547, 548(a)(1)(B), and
    548(b) of this title, the trustee may not avoid a transfer that is
    a margin payment, as defined in section 101, 741, or 761 of this
    title, or settlement payment, as defined in section 101 or 741 of
    this title, made by or to a commodity broker, forward contract
    merchant, stockbroker, financial institution, or securities
    clearing agency, that is made before the commencement of the case,
    except under section 548(a)(1)(A) of this title.
      (f) Notwithstanding sections 544, 545, 547, 548(a)(1)(B), and
    548(b) of this title, the trustee may not avoid a transfer that is
    a margin payment, as defined in section 741 or 761 of this title,
    or settlement payment, as defined in section 741 of this title,
    made by or to a repo participant, in connection with a repurchase
    agreement and that is made before the commencement of the case,
    except under section 548(a)(1)(A) of this title.
      (g) Notwithstanding sections 544, 545, 547, 548(a)(1)(B) and
    548(b) of this title, the trustee may not avoid a transfer under a
    swap agreement, made by or to a swap participant, in connection
    with a swap agreement and that is made before the commencement of
    the case, except under section 548(a)(1)(A) of this title.
      (g) (!1) Notwithstanding the rights and powers of a trustee under
    sections 544(a), 545, 547, 549, and 553, if the court determines on
    a motion by the trustee made not later than 120 days after the date
    of the order for relief in a case under chapter 11 of this title
    and after notice and a hearing, that a return is in the best
    interests of the estate, the debtor, with the consent of a
    creditor, may return goods shipped to the debtor by the creditor
    before the commencement of the case, and the creditor may offset
    the purchase price of such goods against any claim of the creditor
    against the debtor that arose before the commencement of the case.




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