FEDERAL · 11 U.S.C. · Chapter SUBCHAPTER III—STOCKBROKER LIQUIDATION
Reduction of securities to money
11 U.S.C. § 748
Title11 — Bankruptcy
ChapterSUBCHAPTER III—STOCKBROKER LIQUIDATION
This text of 11 U.S.C. § 748 (Reduction of securities to money) is published on Counsel Stack Legal Research, covering United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Bluebook
11 U.S.C. § 748.
Text
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 securities delivered or reclaimed under section 751 of this title.
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Related
First Federal Savings & Loan Ass'n of Lincoln v. Bevill, Bresler & Schulman, Inc. (In Re Bevill, Bresler & Schulman, Inc.)
59 B.R. 353 (D. New Jersey, 1986)
Source Credit
History
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2614.)
Editorial Notes
Historical and Revision Notes
senate report no. 95–989
Section 748 requires the trustee to liquidate all securities, except for customer name securities, of the estate in a manner consistent with good market practice. The trustee should refrain from flooding a thin market with a large percentage of shares in any one issue. If the trustee holds restricted securities or securities in which trading has been suspended, then the trustee must arrange to liquidate such securities in accordance with the securities laws. A private placement may be the only exemption available with the customer of the debtor the best prospect for such a placement. The subsection does not permit such a customer to bid in his net equity as part of the purchase price; a contrary result would permit a customer to receive a greater percentage on his net equity claim than other customers.
senate report no. 95–989
Section 748 requires the trustee to liquidate all securities, except for customer name securities, of the estate in a manner consistent with good market practice. The trustee should refrain from flooding a thin market with a large percentage of shares in any one issue. If the trustee holds restricted securities or securities in which trading has been suspended, then the trustee must arrange to liquidate such securities in accordance with the securities laws. A private placement may be the only exemption available with the customer of the debtor the best prospect for such a placement. The subsection does not permit such a customer to bid in his net equity as part of the purchase price; a contrary result would permit a customer to receive a greater percentage on his net equity claim than other customers.
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Bluebook (online)
11 U.S.C. § 748, Counsel Stack Legal Research, https://law.counselstack.com/usc/11/748.