Page:United States Statutes at Large Volume 52.djvu/911

 PUBLIC LAWS-CH. 575-JUNE 22, 1938 ruptcy or of the original petition under chapter X, XI, XII or XIII of this Act, it shall be deemed to have been made immediately before bankruptcy. Voidable prefer- "b. Any such preference may be avoided by the trustee if the creditor receiving it or to be benefited thereby or his agent acting with refer- ence thereto has, at the time when the transfer is made, reasonable Recovery. cause to believe that the debtor is insolvent. Where the preference is voidable, the trustee may recover the property or, if it has been con- verted, its value from any person who has received or converted such property,'except a bona-fide purchaser from or lienor of the debtor's ieni8 here pur- transferee for a present fair equivalent value: Provided, however, chaser has given less That where such purchaser or lienor has given less than such value, vaiue. he shall nevertheless have a lien upon such property, but only to the extent of the consideration actually given by him. Where a prefer- ence by way of lien or security title is voidable, the court may on due notice order such lien or title to be preserved for the benefit of the estate, in which event such lien or title shall pass to the trustee. For Jurisdiction the purpose of any recovery or avoidance under this section, where plenary proceedings are necessary, any State court which would have had jurisdiction if bankruptcy had not intervened and any court of bankruptcy shall have concurrent jurisdiction. Preferehered a creditor has been preferred, and afterward in good faith giving further credit without security, gives the debtor further credit without security of any kind for prop- erty which becomes a part of the debtor's estate, the amount of such new credit remaining unpaid at the time of the adjudication in bank- ruptcy may be set off against the amount which would otherwise be recoverable from him. Payment to attor- "d. If a debtor shall, directly or indirectly, in contemplation of the ney, etc., by debtor in contemplation of filing of a petition by or against him, pay money or transfer property ilin of petition. to an attorney and counselor at law, solicitor in equity, or proctor in admiralty for services to be rendered, the transaction shall be reex- amined by the court on petition of the trustee or any creditor and shall be held valid only to the extent of a reasonable amount to be determined by the court, and the excess may be recovered by the trustee for the benefit of the estate. Where bankrupt is Wi a tockbroker "e. (1) Where the bankrupt is a stockbroker, the following defini- Definitions. tions and provisions of this subdivision shall apply: 'Property' shall include cash, securities, whether or not negotiable, and all other property of similar character; 'customers' of a stockbroker shall include persons who have claims on account of securities received, acquired, or held by the stockbroker from or for the account of such persons (a) for safekeeping, or (b) with a view to sale, or (c) to cover consummated sales, or (d) pursuant to purchases, or (e) as collateral security, or (f) by way of loans of securities by such persons to the stockbroker, and shall include persons who have claims against the stockbroker arising out of sales or conversions of such securities; 'cash customers' shall mean customers entitled to immediate possession of such securities without the payment of any sum to the stockbroker; the same person may be a cash customer with reference to certain securities and not a cash customer with reference to other securities, the 'net equity' of a customer's account shall be determined by excluding any specifically identifiable secu- rities reclaimable by the customer and by subtracting the indebtedness of the customer to the stockbroker from the sum which would have been owing by the stockbroker to the customer had the stockbroker liquidated, by sale or purchase on the date of bankruptcy, the remaining securities or security commitments of the customer. [52 STAT.

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