Laws: Cases and Codes : U.S. Code : Title 11 : Section 761


   
U.S. Code as of: 01/19/04
Section 761. Definitions for this subchapter

      In this subchapter - 
        (1) "Act" means Commodity Exchange Act;
        (2) "clearing organization" means a derivatives clearing
      organization registered under the Act;
        (3) "Commission" means Commodity Futures Trading Commission;
        (4) "commodity contract" means - 
          (A) with respect to a futures commission merchant, contract
        for the purchase or sale of a commodity for future delivery on,
        or subject to the rules of, a contract market or board of
        trade;
          (B) with respect to a foreign futures commission merchant,
        foreign future;
          (C) with respect to a leverage transaction merchant, leverage
        transaction;
          (D) with respect to a clearing organization, contract for the
        purchase or sale of a commodity for future delivery on, or
        subject to the rules of, a contract market or board of trade
        that is cleared by such clearing organization, or commodity
        option traded on, or subject to the rules of, a contract market
        or board of trade that is cleared by such clearing
        organization; or
          (E) with respect to a commodity options dealer, commodity
        option;

        (5) "commodity option" means agreement or transaction subject
      to regulation under section 4c(b) of the Act;
        (6) "commodity options dealer" means person that extends credit
      to, or that accepts cash, a security, or other property from, a
      customer of such person for the purchase or sale of an interest
      in a commodity option;
        (7) "contract market" means a registered entity;
        (8) "contract of sale", "commodity", "derivatives clearing
      organization", "future delivery", "board of trade", "registered
      entity", and "futures commission merchant" have the meanings
      assigned to those terms in the Act;
        (9) "customer" means - 
          (A) with respect to a futures commission merchant - 
            (i) entity for or with whom such futures commission
          merchant deals and that holds a claim against such futures
          commission merchant on account of a commodity contract made,
          received, acquired, or held by or through such futures
          commission merchant in the ordinary course of such futures
          commission merchant's business as a futures commission
          merchant from or for the commodity futures account of such
          entity; or
            (ii) entity that holds a claim against such futures
          commission merchant arising out of - 
              (I) the making, liquidation, or change in the value of a
            commodity contract of a kind specified in clause (i) of
            this subparagraph;
              (II) a deposit or payment of cash, a security, or other
            property with such futures commission merchant for the
            purpose of making or margining such a commodity contract;
            or
              (III) the making or taking of delivery on such a
            commodity contract;

          (B) with respect to a foreign futures commission merchant - 
            (i) entity for or with whom such foreign futures commission
          merchant deals and that holds a claim against such foreign
          futures commission merchant on account of a commodity
          contract made, received, acquired, or held by or through such
          foreign futures commission merchant in the ordinary course of
          such foreign futures commission merchant's business as a
          foreign futures commission merchant from or for the foreign
          futures account of such entity; or
            (ii) entity that holds a claim against such foreign futures
          commission merchant arising out of - 
              (I) the making, liquidation, or change in value of a
            commodity contract of a kind specified in clause (i) of
            this subparagraph;
              (II) a deposit or payment of cash, a security, or other
            property with such foreign futures commission merchant for
            the purpose of making or margining such a commodity
            contract; or
              (III) the making or taking of delivery on such a
            commodity contract;

          (C) with respect to a leverage transaction merchant - 
            (i) entity for or with whom such leverage transaction
          merchant deals and that holds a claim against such leverage
          transaction merchant on account of a commodity contract
          engaged in by or with such leverage transaction merchant in
          the ordinary course of such leverage transaction merchant's
          business as a leverage transaction merchant from or for the
          leverage account of such entity; or
            (ii) entity that holds a claim against such leverage
          transaction merchant arising out of - 
              (I) the making, liquidation, or change in value of a
            commodity contract of a kind specified in clause (i) of
            this subparagraph;
              (II) a deposit or payment of cash, a security, or other
            property with such leverage transaction merchant for the
            purpose of entering into or margining such a commodity
            contract; or
              (III) the making or taking of delivery on such a
            commodity contract;

          (D) with respect to a clearing organization, clearing member
        of such clearing organization with whom such clearing
        organization deals and that holds a claim against such clearing
        organization on account of cash, a security, or other property
        received by such clearing organization to margin, guarantee, or
        secure a commodity contract in such clearing member's
        proprietary account or customers' account; or
          (E) with respect to a commodity options dealer - 
            (i) entity for or with whom such commodity options dealer
          deals and that holds a claim on account of a commodity
          contract made, received, acquired, or held by or through such
          commodity options dealer in the ordinary course of such
          commodity options dealer's business as a commodity options
          dealer from or for the commodity options account of such
          entity; or
            (ii) entity that holds a claim against such commodity
          options dealer arising out of - 
              (I) the making of, liquidation of, exercise of, or a
            change in value of, a commodity contract of a kind
            specified in clause (i) of this subparagraph; or
              (II) a deposit or payment of cash, a security, or other
            property with such commodity options dealer for the purpose
            of making, exercising, or margining such a commodity
            contract;

        (10) "customer property" means cash, a security, or other
      property, or proceeds of such cash, security, or property,
      received, acquired, or held by or for the account of the debtor,
      from or for the account of a customer - 
          (A) including - 
            (i) property received, acquired, or held to margin,
          guarantee, secure, purchase, or sell a commodity contract;
            (ii) profits or contractual or other rights accruing to a
          customer as a result of a commodity contract;
            (iii) an open commodity contract;
            (iv) specifically identifiable customer property;
            (v) warehouse receipt or other document held by the debtor
          evidencing ownership of or title to property to be delivered
          to fulfill a commodity contract from or for the account of a
          customer;
            (vi) cash, a security, or other property received by the
          debtor as payment for a commodity to be delivered to fulfill
          a commodity contract from or for the account of a customer;
            (vii) a security held as property of the debtor to the
          extent such security is necessary to meet a net equity claim
          based on a security of the same class and series of an
          issuer;
            (viii) property that was unlawfully converted from and that
          is the lawful property of the estate; and
            (ix) other property of the debtor that any applicable law,
          rule, or regulation requires to be set aside or held for the
          benefit of a customer, unless including such property as
          customer property would not significantly increase customer
          property; but

          (B) not including property to the extent that a customer does
        not have a claim against the debtor based on such property;

        (11) "foreign future" means contract for the purchase or sale
      of a commodity for future delivery on, or subject to the rules
      of, a board of trade outside the United States;
        (12) "foreign futures commission merchant" means entity engaged
      in soliciting or accepting orders for the purchase or sale of a
      foreign future or that, in connection with such a solicitation or
      acceptance, accepts cash, a security, or other property, or
      extends credit to margin, guarantee, or secure any trade or
      contract that results from such a solicitation or acceptance;
        (13) "leverage transaction" means agreement that is subject to
      regulation under section 19 of the Commodity Exchange Act, and
      that is commonly known to the commodities trade as a margin
      account, margin contract, leverage account, or leverage contract;
        (14) "leverage transaction merchant" means person in the
      business of engaging in leverage transactions;
        (15) "margin payment" means payment or deposit of cash, a
      security, or other property, that is commonly known to the
      commodities trade as original margin, initial margin, maintenance
      margin, or variation margin, including mark-to-market payments,
      settlement payments, variation payments, daily settlement
      payments, and final settlement payments made as adjustments to
      settlement prices;
        (16) "member property" means customer property received,
      acquired, or held by or for the account of a debtor that is a
      clearing organization, from or for the proprietary account of a
      customer that is a clearing member of the debtor; and
        (17) "net equity" means, subject to such rules and regulations
      as the Commission promulgates under the Act, with respect to the
      aggregate of all of a customer's accounts that such customer has
      in the same capacity - 
          (A) the balance remaining in such customer's accounts
        immediately after - 
            (i) all commodity contracts of such customer have been
          transferred, liquidated, or become identified for delivery;
          and
            (ii) all obligations of such customer in such capacity to
          the debtor have been offset; plus

          (B) the value, as of the date of return under section 766 of
        this title, of any specifically identifiable customer property
        actually returned to such customer before the date specified in
        subparagraph (A) of this paragraph; plus
          (C) the value, as of the date of transfer, of - 
            (i) any commodity contract to which such customer is
          entitled that is transferred to another person under section
          766 of this title; and
            (ii) any cash, security, or other property of such customer
          transferred to such other person under section 766 of this
          title to margin or secure such transferred commodity
          contract.



Previous [Notes] Next

Related Resources

Bankruptcy Law Guide

Bankruptcy Articles and Documents

Bankruptcy Forms

Bankruptcy Discussion

Ads by FindLaw