§ 753 TITLE 11—BANKRUPTCY Page 208 except as otherwise provided, see section 1501 of Pub. L. (ii) with respect to a futures commission 109–8, set out as a note under section 101 of this title. merchant or a clearing organization, any EFFECTIVE DATE OF 1984 AMENDMENT other contract, , agreement, or trans- action, in each case, that is cleared by a Amendment by Pub. L. 98–353 effective with respect clearing organization; to cases filed 90 days after July 10, 1984, see section (G) any combination of the agreements or 552(a) of Pub. L. 98–353, set out as a note under section transactions referred to in this paragraph; 101 of this title. (H) any option to enter into an agreement § 753. Stockbroker liquidation and forward con- or transaction referred to in this paragraph; tract merchants, brokers, - (I) a master agreement that provides for brokers, financial institutions, financial par- an agreement or transaction referred to in ticipants, securities clearing agencies, swap subparagraph (A), (B), (C), (D), (E), (F), (G), participants, repo participants, and master or (H), together with all supplements to such netting agreement participants master agreement, without regard to wheth- er the master agreement provides for an Notwithstanding any other provision of this agreement or transaction that is not a com- title, the exercise of rights by a forward con- modity contract under this paragraph, ex- tract merchant, commodity broker, stock- cept that the master agreement shall be con- broker, financial institution, financial partici- sidered to be a commodity contract under pant, securities clearing agency, swap partici- this paragraph only with respect to each pant, repo participant, or master netting agree- agreement or transaction under the master ment participant under this title shall not affect agreement that is referred to in subpara- the priority of any unsecured claim it may have graph (A), (B), (C), (D), (E), (F), (G), or (H); after the exercise of such rights. or (Added Pub. L. 109–8, title IX, § 907(m), Apr. 20, (J) any security agreement or arrange- 2005, 119 Stat. 181.) ment or other credit enhancement related to any agreement or transaction referred to in EFFECTIVE DATE this paragraph, including any guarantee or Section effective 180 days after Apr. 20, 2005, and not reimbursement obligation by or to a com- applicable with respect to cases commenced under this modity broker or financial participant in title before such effective date, except as otherwise connection with any agreement or trans- provided, see section 1501 of Pub. L. 109–8, set out as an action referred to in this paragraph, but not Effective Date of 2005 Amendment note under section to exceed the damages in connection with 101 of this title. any such agreement or transaction, meas- ured in accordance with section 562; SUBCHAPTER IV—COMMODITY BROKER LIQUIDATION (5) ‘‘commodity option’’ means agreement or transaction subject to regulation under sec- § 761. Definitions for this subchapter tion 4c(b) of the Act; (6) ‘‘commodity options dealer’’ means per- In this subchapter— son that extends credit to, or that accepts (1) ‘‘Act’’ means Commodity Exchange Act; cash, a security, or other property from, a cus- (2) ‘‘clearing organization’’ means a deriva- tomer of such person for the purchase or sale tives clearing organization registered under of an interest in a commodity option; the Act; (7) ‘‘contract market’’ means a registered (3) ‘‘Commission’’ means Commodity Fu- entity; tures Trading Commission; (8) ‘‘contract of sale’’, ‘‘commodity’’, ‘‘de- (4) ‘‘commodity contract’’ means— rivatives clearing organization’’, ‘‘future de- (A) with respect to a futures commission livery’’, ‘‘board of trade’’, ‘‘registered entity’’, merchant, contract for the purchase or sale and ‘‘futures commission merchant’’ have the of a commodity for future delivery on, or meanings assigned to those terms in the Act; subject to the rules of, a contract market or (9) ‘‘customer’’ means— board of trade; (A) with respect to a futures commission (B) with respect to a foreign futures com- merchant— mission merchant, foreign future; (i) entity for or with whom such futures (C) with respect to a leverage transaction commission merchant deals and that holds merchant, leverage transaction; a claim against such futures commission (D) with respect to a clearing organiza- merchant on account of a commodity con- tion, contract for the purchase or sale of a tract made, received, acquired, or held by commodity for future delivery on, or subject or through such futures commission mer- to the rules of, a contract market or board chant in the ordinary course of such fu- of trade that is cleared by such clearing or- tures commission merchant’s business as a ganization, or commodity option traded on, futures commission merchant from or for or subject to the rules of, a contract market a commodity contract account of such en- or board of trade that is cleared by such tity; or clearing organization; (ii) entity that holds a claim against (E) with respect to a commodity options such futures commission merchant arising dealer, commodity option; out of— (F)(i) any other contract, option, agree- (I) the making, liquidation, or change ment, or transaction that is similar to a in the value of a commodity contract of contract, option, agreement, or transaction a kind specified in clause (i) of this sub- referred to in this paragraph; and paragraph; Page 209 TITLE 11—BANKRUPTCY § 761

(II) a deposit or payment of cash, a se- (E) with respect to a commodity options curity, or other property with such fu- dealer— tures commission merchant for the pur- (i) entity for or with whom such com- pose of making or margining such a com- modity options dealer deals and that holds modity contract; or a claim on account of a commodity con- (III) the making or taking of delivery tract made, received, acquired, or held by on such a commodity contract; or through such commodity options dealer (B) with respect to a foreign futures com- in the ordinary course of such commodity mission merchant— options dealer’s business as a commodity (i) entity for or with whom such foreign options dealer from or for the commodity futures commission merchant deals and options account of such entity; or that holds a claim against such foreign fu- (ii) entity that holds a claim against tures commission merchant on account of such commodity options dealer arising out a commodity contract made, received, ac- of— quired, or held by or through such foreign (I) the making of, liquidation of, exer- futures commission merchant in the ordi- cise of, or a change in value of, a com- nary course of such foreign futures com- modity contract of a kind specified in mission merchant’s business as a foreign clause (i) of this subparagraph; or futures commission merchant from or for (II) a deposit or payment of cash, a se- the foreign futures account of such entity; curity, or other property with such com- or modity options dealer for the purpose of (ii) entity that holds a claim against making, exercising, or margining such a such foreign futures commission merchant commodity contract; arising out of— (10) ‘‘customer property’’ means cash, a se- (I) the making, liquidation, or change curity, or other property, or proceeds of such in value of a commodity contract of a cash, security, or property, received, acquired, kind specified in clause (i) of this sub- or held by or for the account of the debtor, paragraph; from or for the account of a customer— (II) a deposit or payment of cash, a se- (A) including— curity, or other property with such for- (i) property received, acquired, or held to eign futures commission merchant for , guarantee, secure, purchase, or the purpose of making or margining such sell a commodity contract; a commodity contract; or (ii) profits or contractual or other rights (III) the making or taking of delivery accruing to a customer as a result of a on such a commodity contract; commodity contract; (C) with respect to a leverage transaction (iii) an open commodity contract; merchant— (iv) specifically identifiable customer (i) entity for or with whom such leverage property; transaction merchant deals and that holds (v) warehouse receipt or other document a claim against such leverage transaction held by the debtor evidencing ownership of merchant on account of a commodity con- or title to property to be delivered to ful- tract engaged in by or with such leverage fill a commodity contract from or for the transaction merchant in the ordinary account of a customer; course of such leverage transaction mer- (vi) cash, a security, or other property chant’s business as a leverage transaction received by the debtor as payment for a merchant from or for the leverage account commodity to be delivered to fulfill a com- of such entity; or modity contract from or for the account of (ii) entity that holds a claim against a customer; such leverage transaction merchant aris- (vii) a security held as property of the ing out of— debtor to the extent such security is nec- (I) the making, liquidation, or change essary to meet a net equity claim based on in value of a commodity contract of a a security of the same class and series of kind specified in clause (i) of this sub- an issuer; paragraph; (viii) property that was unlawfully con- (II) a deposit or payment of cash, a se- verted from and that is the lawful property curity, or other property with such le- of the estate; and verage transaction merchant for the pur- (ix) other property of the debtor that pose of entering into or margining such any applicable law, rule, or regulation re- a commodity contract; or quires to be set aside or held for the bene- (III) the making or taking of delivery fit of a customer, unless including such on such a commodity contract; property as customer property would not (D) with respect to a clearing organiza- significantly increase customer property; tion, clearing member of such clearing orga- but nization with whom such clearing organiza- tion deals and that holds a claim against (B) not including property to the extent such clearing organization on account of that a customer does not have a claim cash, a security, or other property received against the debtor based on such property; by such clearing organization to margin, (11) ‘‘foreign future’’ means contract for the guarantee, or secure a commodity contract purchase or sale of a commodity for future de- in such clearing member’s proprietary ac- livery on, or subject to the rules of, a board of count or customers’ account; or trade outside the United States; § 761 TITLE 11—BANKRUPTCY Page 210

(12) ‘‘foreign futures commission merchant’’ Pub. L. 109–8, title IX, § 907(a)(3), Apr. 20, 2005, 119 means entity engaged in soliciting or accept- Stat. 174; Pub. L. 111–203, title VII, § 724(b), July ing orders for the purchase or sale of a foreign 21, 2010, 124 Stat. 1684.) future or that, in connection with such a solic- HISTORICAL AND REVISION NOTES itation or acceptance, accepts cash, a security, or other property, or extends credit to margin, LEGISLATIVE STATEMENTS guarantee, or secure any trade or contract Subchapter IV of chapter 7 represents a compromise that results from such a solicitation or accept- between similar chapters in the House bill and Senate ance; amendment. Section 761(2) of the House amendment de- (13) ‘‘leverage transaction’’ means agree- fines ‘‘clearing organization’’ to cover an organization ment that is subject to regulation under sec- that clears commodity contracts on a contract market tion 19 of the Commodity Exchange Act, and or a board of trade; the expansion of the definition is that is commonly known to the intended to include clearing organizations that clear trade as a margin account, margin contract, commodity options. Section 761(4) of the House amend- ment adopts the term ‘‘commodity contract’’ as used in leverage account, or leverage contract; section 761(5) of the Senate amendment but with the (14) ‘‘leverage transaction merchant’’ means more precise substantive definitions contained in sec- person in the business of engaging in leverage tion 761(8) of the House bill. The definition is modified transactions; to insert ‘‘board of trade’’ to cover commodity options. (15) ‘‘margin payment’’ means payment or Section 761(5) of the House amendment adopts the defi- deposit of cash, a security, or other property, nition contained in section 761(6) of the Senate amend- that is commonly known to the commodities ment in preference to the definition contained in sec- trade as original margin, initial margin, main- tion 761(4) of the House bill which erroneously included onions. Section 761(9) of the House amendment rep- tenance margin, or variation margin, includ- resents a compromise between similar provisions con- ing mark-to-market payments, settlement tained in section 761(10) of the Senate amendment and payments, variation payments, daily settle- section 761(9) of the House bill. The compromise adopts ment payments, and final settlement pay- the substance contained in the House bill and adopts ments made as adjustments to settlement the terminology of ‘‘commodity contract’’ in lieu of prices; ‘‘contractual commitment’’ as suggested in the Senate (16) ‘‘member property’’ means customer amendment. Section 761(10) of the House amendment property received, acquired, or held by or for represents a compromise between similar sections in the account of a debtor that is a clearing orga- the House bill and Senate amendment regarding the definition of ‘‘customer property.’’ The definition of nization, from or for the proprietary account ‘‘distribution share’’ contained in section 761(12) of the of a customer that is a clearing member of the Senate amendment is deleted as unnecessary. Section debtor; and 761(12) of the House amendment adopts a definition of (17) ‘‘net equity’’ means, subject to such ‘‘foreign futures commission merchant’’ similar to the rules and regulations as the Commission pro- definition contained in section 761(14) of the Senate mulgates under the Act, with respect to the amendment. The definition is modified to cover either aggregate of all of a customer’s accounts that an entity engaged in soliciting orders or the purchase such customer has in the same capacity— or sale of a foreign future, or an entity that accepts cash, a security, or other property for credit in connec- (A) the balance remaining in such cus- tion with such a solicitation or acceptance. Section tomer’s accounts immediately after— 761(13) of the House amendment adopts a definition of (i) all commodity contracts of such cus- ‘‘leverage transaction’’ identical to the definition con- tomer have been transferred, liquidated, or tained in section 761(15) of the Senate amendment. Sec- become identified for delivery; and tion 761(15) of the House amendment adopts the defini- (ii) all obligations of such customer in tion of ‘‘margin payment’’ contained in section 761(17) such capacity to the debtor have been off- of the Senate amendment. Section 761(17) of the House set; plus amendment adopts a definition of ‘‘net equity’’ derived from section 761(15) of the House bill. (B) the value, as of the date of return under section 766 of this title, of any specifi- SENATE REPORT NO. 95–989 cally identifiable customer property actu- Paragraph (1) defines ‘‘Act’’ to mean the Commodity ally returned to such customer before the Exchange Act [7 U.S.C. 1 et seq.]. date specified in subparagraph (A) of this Paragraph (2) defines ‘‘clearing organization’’ to paragraph; plus mean an organization that clears (i.e., matches pur- chases and sales) commodity futures contracts made on (C) the value, as of the date of transfer, or subject to the rules of a contract market or com- of— modity options transactions made on or subject to the (i) any commodity contract to which rules of a commodity option exchange. Although com- such customer is entitled that is trans- modity option trading on exchanges is currently pro- ferred to another person under section 766 hibited, it is anticipated that CFTC may permit such of this title; and trading in the future. (ii) any cash, security, or other property Paragraphs (3) and (4) define terms ‘‘Commission’’ of such customer transferred to such other and ‘‘commodity ’’. person under section 766 of this title to Paragraph (5) [enacted as (4)] defines ‘‘commodity contract’’ to mean a commodity futures contract margin or secure such transferred com- (§ 761(4)), a commodity option (§ 761(6)), or a leverage modity contract. contract (§ 761(15)). (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2615; Pub. L. Paragraph (b) [probably should be ‘‘(6)’’ which was en- 97–222, § 16, July 27, 1982, 96 Stat. 238; Pub. L. acted as (5)] defines ‘‘commodity option’’ by reference to section 4c(b) of the Commodity Exchange Act [7 98–353, title III, § 485, July 10, 1984, 98 Stat. 383; U.S.C. 6c(b)]. Pub. L. 103–394, title V, § 501(d)(29), Oct. 22, 1994, Paragraphs (7), (8), and (9) [enacted as (6), (7), and (8)] 108 Stat. 4146; Pub. L. 106–554, § 1(a)(5) [title I, define ‘‘commodity options dealer,’’ ‘‘contract mar- § 112(c)(6)], Dec. 21, 2000, 114 Stat. 2763, 2763A–395; ket,’’ ‘‘contract of sale,’’ ‘‘commodity,’’ ‘‘future deliv- Page 211 TITLE 11—BANKRUPTCY § 761 ery,’’ ‘‘board of trade,’’ and ‘‘futures commission mer- cate that the definition means foreign future, leverage chant.’’ transaction, or commodity option, respectively. Paragraph (10) [enacted as (9)] defines the term ‘‘cus- Paragraph (9) defines ‘‘customer’’ in a similar style. tomer’’ to mean with respect to a futures commission It is anticipated that a debtor with multifaceted char- merchant or a foreign futures commission merchant, acteristics will have separate estates for each different the entity for whom the debtor carries a commodity fu- kind of customer. Thus, a debtor that is a leverage tures contract or foreign future, or with whom such a transaction merchant and a commodity options dealer contract is carried (such as another commodity would have separate estates for the leverage trans- broker), or from whom the debtor has received, ac- action customers and for the options customers, and a quired, or holds cash, securities, or other property aris- general estate for other creditors. Customers for each ing out of or connected with specified transactions in- kind of commodity broker, except the clearing organi- volving commodity futures contracts or foreign fu- zation, arise from either of two relationships. In sub- tures. This section also defines ‘‘customer’’ in the con- paragraphs (A), (B), (C), and (E), clause (i) treats with text of leverage transaction merchants, clearing orga- customers to the extent of contractual commitments nizations, and commodity options dealers. Persons as- with the debtor in either a broker or a dealer relation- sociated with a commodity broker, such as its employ- ship. Clause (ii) treats with customers to the extent of ees, officers, or partners, may be customers under this proceeds from contractual commitments or deposits for definition. the purpose of making contractual commitments. The The definition of ‘‘customer’’ serves to isolate that customer of the clearing organization is a member with class of persons entitled to the protection subchapter a proprietary or customers’ account. IV provides to customers. In addition, section 101(5) de- Paragraph (10) defines ‘‘customer property’’ to in- fines ‘‘commodity broker’’ to mean a futures commis- clude all property in customer accounts and property sion merchant, foreign futures commission merchant, that should have been in those accounts but was di- clearing organization, leverage transaction merchant, verted through conversion or mistake. Clause (i) refers or commodity options dealer, with respect to which to customer property not properly segregated by the there is a customer. Accordingly, the definition of cus- debtor or customer property converted and then recov- tomer also serves to designate those entities which ered so as to become property of the estate. Clause (vii) must utilize chapter 7 and are precluded from reor- is intended to exclude property that would cost more to ganizing under chapter 11. recover from a third party than the value of the prop- Paragraph (11) [enacted as (10)] defines ‘‘customer erty itself. Subparagraph (B) excludes property in a property’’ to mean virtually all property or proceeds customer’s account that belongs to the commodity thereof, received, acquired, or held by or for the ac- broker, such as a contract placed in the account by count of the debtor for a customer arising out of or in error, or cash due the broker for a margin payment connection with a transaction involving a commodity that the broker has made. contract. Paragraph (15) [enacted as (17)] defines ‘‘net equity’’ Paragraph (12) defines ‘‘distribution share’’ to mean to include the value of all contractual commitments at the amount to which a customer is entitled under sec- the time of liquidation or transfer less any obligations tion 765(a). owed by the customer to the debtor, such as brokerage Paragraphs (13), (14), (15), and (16) [enacted as (11), fees. In addition, the term includes the value of any (12), (13), and (14)] define ‘‘foreign future,’’ ‘‘foreign fu- specifically identifiable property as of the date of re- tures commission merchant,’’ ‘‘leverage transaction,’’ turn to the customer and the value of any customer and ‘‘leverage transaction merchant.’’ property transferred to another commodity broker as Paragraph (17) [enacted as (15)] defines ‘‘margin pay- of the date of transfer. This definition places the risk ment’’ to mean a payment or deposit commonly known of market fluctuations on the customer until commit- to the commodities trade as original margin, initial ments leave the estate. margin, or variation margin. Paragraph (18) [enacted as (16)] defines ‘‘member REFERENCES IN TEXT property.’’ Paragraph (19) [enacted as (17)] defines ‘‘net equity’’ The Commodity Exchange Act, referred to in pars. to be the sum of (A) the value of all customer property (1), (2), (8), and (17), is act Sept. 21, 1922, ch. 369, 42 Stat. remaining in a customer’s account immediately after 998, as amended, which is classified generally to chap- all commodity contracts of such customer have been ter 1 (§ 1 et seq.) of Title 7, Agriculture. Sections 4c(b) transferred, liquidated, or become identified for deliv- and 19 of the Act are classified to sections 6c(b) and 23, ery and all obligations of such customer to the debtor respectively, of Title 7. For complete classification of have been offset (such as margin payments, whether or this Act to the Code, see section 1 of Title 7 and Tables. not called, and brokerage commissions) plus (B) the AMENDMENTS value of specifically identifiable customer property previously returned to the customer by the trustee, 2010—Par. (4)(F). Pub. L. 111–203, § 724(b)(1), added sub- plus (C) if the trustee has transferred any commodity par. (F) and struck out former subpar. (F) which read contract to which the customer is entitled or any mar- as follows: ‘‘any other agreement or transaction that is gin or security for such contract, the value of such con- similar to an agreement or transaction referred to in tract and margin or security. Net equity, therefore, this paragraph;’’. will be the total amount of customer property to which Par. (9)(A)(i). Pub. L. 111–203, § 724(b)(2), substituted a customer is entitled as of the date of the filing of the ‘‘a commodity contract account’’ for ‘‘the commodity bankruptcy petition, although valued at subsequent futures account’’. dates. The Commission is given authority to promul- 2005—Par. (4)(F) to (J). Pub. L. 109–8 added subpars. gate rules and regulations to further refine this defini- (F) to (J). tion. 2000—Par. (2). Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(6)(A)], amended par. (2) generally. Prior to HOUSE REPORT NO. 95–595 amendment, par. (2) read as follows: ‘‘ ‘clearing organi- Paragraph (8) [enacted as (4)] is a dynamic definition zation’ means organization that clears commodity con- of ‘‘contractual commitment’’. The definition will vary tracts made on, or subject to the rules of, a contract depending on the character of the debtor in each case. market or board of trade;’’. If the debtor is a futures commission merchant or a Par. (7). Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(6)(B)], clearing organization, then subparagraphs (A) and (D) amended par. (7) generally. Prior to amendment, par. indicate that the definition means a contract of sale of (7) read as follows: ‘‘ ‘contract market’ means board of a commodity for future delivery on a contract market. trade designated as a contract market by the Commis- If the debtor is a foreign futures commission merchant, sion under the Act;’’. a leverage transaction merchant, or a commodity op- Par. (8). Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(6)(C)], tions dealer, then subparagraphs (B), (C), and (E) indi- amended par. (8) generally. Prior to amendment, par. § 762 TITLE 11—BANKRUPTCY Page 212

(8) read as follows: ‘‘ ‘contract of sale’, ‘commodity’, except as otherwise provided, see section 1501 of Pub. L. ‘future delivery’, ‘board of trade’, and ‘futures commis- 109–8, set out as a note under section 101 of this title. sion merchant’ have the meanings assigned to those terms in the Act;’’. EFFECTIVE DATE OF 1994 AMENDMENT 1994—Par. (1). Pub. L. 103–394, § 501(d)(29)(A), struck Amendment by Pub. L. 103–394 effective Oct. 22, 1994, out ‘‘(7 U.S.C. 1 et seq.)’’ after ‘‘Act’’. and not applicable with respect to cases commenced Par. (5). Pub. L. 103–394, § 501(d)(29)(B), struck out ‘‘(7 under this title before Oct. 22, 1994, see section 702 of U.S.C. 6c(b))’’ after ‘‘Act’’. Pub. L. 103–394, set out as a note under section 101 of Par. (13). Pub. L. 103–394, § 501(d)(29)(C), struck out ‘‘(7 this title. U.S.C. 23)’’ after ‘‘Act’’. 1984—Par. (10)(A)(viii). Pub. L. 98–353 substituted EFFECTIVE DATE OF 1984 AMENDMENT ‘‘from and that is the lawful property’’ for ‘‘and that is Amendment by Pub. L. 98–353 effective with respect property’’. to cases filed 90 days after July 10, 1984, see section 1982—Par. (2). Pub. L. 97–222, § 16(1), inserted ‘‘made’’ 552(a) of Pub. L. 98–353, set out as a note under section after ‘‘commodity contracts’’. 101 of this title. Par. (4). Pub. L. 97–222, § 16(2), substituted ‘‘with re- spect to’’ for ‘‘if the debtor is’’ wherever appearing, and § 762. Notice to the Commission and right to be substituted ‘‘cleared by such clearing organization, or commodity option traded on, or subject to the rules of, heard a contract market or board of trade that is cleared by (a) The clerk shall give the notice required by such clearing organization’’ for ‘‘cleared by the debtor’’ section 342 of this title to the Commission. in subpar. (D). Par. (9). Pub. L. 97–222, § 16(3), substituted ‘‘with re- (b) The Commission may raise and may appear spect to’’ for ‘‘if the debtor is’’ wherever appearing, in and be heard on any issue in a case under this subpar. (A) substituted ‘‘such futures commission mer- chapter. chant’’ for ‘‘the debtor’’ wherever appearing and ‘‘such (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2618.) futures commission merchant’s’’ for ‘‘the debtor’s’’, in subpar. (B) substituted ‘‘such foreign futures commis- HISTORICAL AND REVISION NOTES sion merchant’’ for ‘‘the debtor’’ wherever appearing and ‘‘such foreign futures commission merchant’s’’ for SENATE REPORT NO. 95–989 ‘‘the debtor’s’’, in subpar. (C) substituted ‘‘such lever- Section 762 provides that the Commission shall be age transaction merchant’’ for ‘‘the debtor’’ wherever given such notice as is appropriate of an order for relief appearing and ‘‘such leverage transaction merchant’s’’ in a bankruptcy case and that the Commission may for ‘‘the debtor’s’’, inserted ‘‘or’’ after the semicolon in raise and may appear and may be heard on any issue in cl. (i), and substituted ‘‘holds’’ for ‘‘hold’’ in cl. (ii), in case involving a commodity broker liquidation. subpar. (D) substituted ‘‘such clearing organization’’ for ‘‘the debtor’’ wherever appearing, and in subpar. (E) § 763. Treatment of accounts substituted ‘‘such commodity options dealer’’ for ‘‘the debtor’’ wherever appearing and ‘‘such commodity op- (a) Accounts held by the debtor for a particu- tions dealer’s’’ for ‘‘the debtor’s’’. lar customer in separate capacities shall be Par. (10). Pub. L. 97–222, § 16(4), struck out ‘‘at any treated as accounts of separate customers. time’’ after ‘‘security, or property,’’ in provisions pre- (b) A member of a clearing organization shall ceding subpar. (A). Par. (12). Pub. L. 97–222, § 16(5), inserted a comma be deemed to hold such member’s proprietary after ‘‘property’’ and struck out the comma after account in a separate capacity from such mem- ‘‘credit’’. ber’s customers’ account. Par. (13). Pub. L. 97–222, § 16(6), substituted ‘‘section 19 (c) The net equity in a customer’s account of the Commodity Exchange Act (7 U.S.C. 23)’’ for ‘‘sec- may not be offset against the net equity in the tion 217 of the Commodity Futures Trading Commis- account of any other customer. sion Act of 1974 (7 U.S.C. 15a)’’. Par. (14). Pub. L. 97–222, § 16(7), struck out ‘‘that is en- (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2618; Pub. L. gaged’’ after ‘‘means person’’. 98–353, title III, § 486, July 10, 1984, 98 Stat. 383.) Par. (15). Pub. L. 97–222, § 16(8), substituted ‘‘mark-to- market payments, settlement payments, variation pay- HISTORICAL AND REVISION NOTES ments, daily settlement payments, and final settle- SENATE REPORT NO. 95–989 ment payments made as adjustments to settlement prices’’ for ‘‘a daily variation settlement payment’’. Section 763 provides for separate treatment of ac- Par. (16). Pub. L. 97–222, § 16(9), struck out ‘‘at any counts held in separate capacities. A deficit in one ac- time’’ after ‘‘customer property’’. count held for a customer may not be offset against the Par. (17). Pub. L. 97–222, § 16(10), in provisions preced- net equity in another account held by the same cus- ing subpar. (A) substituted ‘‘has’’ for ‘‘holds’’, in sub- tomer in a separate capacity or held by another cus- par. (A) inserted ‘‘the’’ after ‘‘(A)’’ in provisions preced- tomer. ing cl. (i), and ‘‘in such capacity’’ after ‘‘customer’’ in cl. (ii). AMENDMENTS 1984—Subsec. (a). Pub. L. 98–353 substituted ‘‘by the EFFECTIVE DATE OF 2010 AMENDMENT debtor for’’ for ‘‘by’’ and ‘‘treated as’’ for ‘‘deemed to Amendment by Pub. L. 111–203 effective on the later be’’. of 360 days after July 21, 2010, or, to the extent a provi- sion of subtitle A (§§ 711–754) of title VII of Pub. L. EFFECTIVE DATE OF 1984 AMENDMENT 111–203 requires a rulemaking, not less than 60 days Amendment by Pub. L. 98–353 effective with respect after publication of the final rule or regulation imple- to cases filed 90 days after July 10, 1984, see section menting such provision of subtitle A, see section 754 of 552(a) of Pub. L. 98–353, set out as a note under section Pub. L. 111–203, set out as a note under section 1a of 101 of this title. Title 7, Agriculture. § 764. Voidable transfers EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109–8 effective 180 days after (a) Except as otherwise provided in this sec- Apr. 20, 2005, and not applicable with respect to cases tion, any transfer by the debtor of property commenced under this title before such effective date, that, but for such transfer, would have been cus-