11 U.S.C. § 366 : US Code - Section 366: Utility service
Search 11 U.S.C. § 366 : US Code - Section 366: Utility service
(a) Except as provided in subsections (b) and (c) of this
section, a utility may not alter, refuse, or discontinue service
to, or discriminate against, the trustee or the debtor solely on
the basis of the commencement of a case under this title or that a
debt owed by the debtor to such utility for service rendered before
the order for relief was not paid when due.
(b) Such utility may alter, refuse, or discontinue service if
neither the trustee nor the debtor, within 20 days after the date
of the order for relief, furnishes adequate assurance of payment,
in the form of a deposit or other security, for service after such
date. On request of a party in interest and after notice and a
hearing, the court may order reasonable modification of the amount
of the deposit or other security necessary to provide adequate
assurance of payment.
(c)(1)(A) For purposes of this subsection, the term "assurance of
payment" means -
(i) a cash deposit;
(ii) a letter of credit;
(iii) a certificate of deposit;
(iv) a surety bond;
(v) a prepayment of utility consumption; or
(vi) another form of security that is mutually agreed on
between the utility and the debtor or the trustee.
(B) For purposes of this subsection an administrative expense
priority shall not constitute an assurance of payment.
(2) Subject to paragraphs (3) and (4), with respect to a case
filed under chapter 11, a utility referred to in subsection (a) may
alter, refuse, or discontinue utility service, if during the 30-day
period beginning on the date of the filing of the petition, the
utility does not receive from the debtor or the trustee adequate
assurance of payment for utility service that is satisfactory to
the utility.
(3)(A) On request of a party in interest and after notice and a
hearing, the court may order modification of the amount of an
assurance of payment under paragraph (2).
(B) In making a determination under this paragraph whether an
assurance of payment is adequate, the court may not consider -
(i) the absence of security before the date of the filing of
the petition;
(ii) the payment by the debtor of charges for utility service
in a timely manner before the date of the filing of the petition;
or
(iii) the availability of an administrative expense priority.
(4) Notwithstanding any other provision of law, with respect to a
case subject to this subsection, a utility may recover or set off
against a security deposit provided to the utility by the debtor
before the date of the filing of the petition without notice or
order of the court.
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