Page:United States Statutes at Large Volume 92 Part 2.djvu/1334

 92 STAT. 2614

PUBLIC LAW 95-598—NOV. 6, 1978

tomer net equity claims have been paid in full, the trustee may not pay in full or pay in part, directly or indirectly, any net equity claim of a customer that was, on the date such claim arose— (1) an insider; (2) a beneficial owner of at least five percent of any class of equity securities of the debtor, other than— (A) nonconvertible stock having fixed preferential divi_ dend and liquidation rights; or '" (B) interests of limited partners in a limited partnership; (3) a limited partner with a participation of at least five percent in the net assets or net profits of the debtor; or (4) an entity that, directly or indirectly, through agreement or otherwise, exercised or had the power to exercise control over the management or policies of the debtor. 11 USC 748. § 748. Reduction of securities to money As soon as practicable after the date of the order for relief, the trustee shall reduce to money, consistent with good market practice, all securities held as property of the estate, except for customer name secuInfra. rities delivered or reclaimed under section 751 of this title. 11 USC 749. § 749. Voidable transfers Any transfer of property that, except for such transfer, would have been customer property, may be avoided by the trustee, and shall be treated as customer property, if and to the extent that the trustee avoids such transfer under section 544, 545, 547, 548, 549, or 724(a) 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. 11 USC 750. § 750. Distribution of securities The trustee may not distribute a security except under section 751 of this title. 11 USC 751. § 751. Customer name securities The trustee shall deliver any customer name security to or on behalf of the customer entitled to such security, unless such customer has a negative net equity. With the approval of the trustee, a customer may reclaim a customer name security after payment to the trustee, within such period as the trustee allows, of any claim of the debtor against such customer to the extent that such customer will not have a negative net equity after such payment. 11 USC 752. § 752. Customer property (a) The trustee shall distribute customer property ratably to customers on the basis and to the extent of such customers allowed net equity claims and in priority to all other claims, except claims specified Ante, p. 2583. in section 507(a)(1) of this title that are attributable to the administration of customer property. (b)(1) The trustee shall distribute customer property in excess of that distributed under subsection (a) of this section in accordance with section 726 of this title. Ante, p. 2586. (2) Except as provided in section 510 of this title, if a customer is not paid the full amount of such customer's allowed net equity claim from customer property, the unpaid portion of such claim is a claim entitled to distribution under section 726(a) of this title.

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