11 U.S.C. § 503 : US Code - Section 503: Allowance of administrative expenses

Search 11 U.S.C. § 503 : US Code - Section 503: Allowance of administrative expenses

      (a) An entity may timely file a request for payment of an
    administrative expense, or may tardily file such request if
    permitted by the court for cause.
      (b) After notice and a hearing, there shall be allowed
    administrative expenses, other than claims allowed under section
    502(f) of this title, including - 
        (1)(A) the actual, necessary costs and expenses of preserving
      the estate including - 
          (i) wages, salaries, and commissions for services rendered
        after the commencement of the case; and
          (ii) wages and benefits awarded pursuant to a judicial
        proceeding or a proceeding of the National Labor Relations
        Board as back pay attributable to any period of time occurring
        after commencement of the case under this title, as a result of
        a violation of Federal or State law by the debtor, without
        regard to the time of the occurrence of unlawful conduct on
        which such award is based or to whether any services were
        rendered, if the court determines that payment of wages and
        benefits by reason of the operation of this clause will not
        substantially increase the probability of layoff or termination
        of current employees, or of nonpayment of domestic support
        obligations, during the case under this title;

        (B) any tax - 
          (i) incurred by the estate, whether secured or unsecured,
        including property taxes for which liability is in rem, in
        personam, or both, except a tax of a kind specified in section
        507(a)(8) of this title; or
          (ii) attributable to an excessive allowance of a tentative
        carryback adjustment that the estate received, whether the
        taxable year to which such adjustment relates ended before or
        after the commencement of the case;

        (C) any fine, penalty, or reduction in credit relating to a tax
      of a kind specified in subparagraph (B) of this paragraph; and
        (D) notwithstanding the requirements of subsection (a), a
      governmental unit shall not be required to file a request for the
      payment of an expense described in subparagraph (B) or (C), as a
      condition of its being an allowed administrative expense;
        (2) compensation and reimbursement awarded under section 330(a)
      of this title;
        (3) the actual, necessary expenses, other than compensation and
      reimbursement specified in paragraph (4) of this subsection,
      incurred by - 
          (A) a creditor that files a petition under section 303 of
        this title;
          (B) a creditor that recovers, after the court's approval, for
        the benefit of the estate any property transferred or concealed
        by the debtor;
          (C) a creditor in connection with the prosecution of a
        criminal offense relating to the case or to the business or
        property of the debtor;
          (D) a creditor, an indenture trustee, an equity security
        holder, or a committee representing creditors or equity
        security holders other than a committee appointed under section
        1102 of this title, in making a substantial contribution in a
        case under chapter 9 or 11 of this title;
          (E) a custodian superseded under section 543 of this title,
        and compensation for the services of such custodian; or
          (F) a member of a committee appointed under section 1102 of
        this title, if such expenses are incurred in the performance of
        the duties of such committee;

        (4) reasonable compensation for professional services rendered
      by an attorney or an accountant of an entity whose expense is
      allowable under subparagraph (A), (B), (C), (D), or (E) of
      paragraph (3) of this subsection, based on the time, the nature,
      the extent, and the value of such services, and the cost of
      comparable services other than in a case under this title, and
      reimbursement for actual, necessary expenses incurred by such
      attorney or accountant;
        (5) reasonable compensation for services rendered by an
      indenture trustee in making a substantial contribution in a case
      under chapter 9 or 11 of this title, based on the time, the
      nature, the extent, and the value of such services, and the cost
      of comparable services other than in a case under this title;
        (6) the fees and mileage payable under chapter 119 of title 28;
        (7) with respect to a nonresidential real property lease
      previously assumed under section 365, and subsequently rejected,
      a sum equal to all monetary obligations due, excluding those
      arising from or relating to a failure to operate or a penalty
      provision, for the period of 2 years following the later of the
      rejection date or the date of actual turnover of the premises,
      without reduction or setoff for any reason whatsoever except for
      sums actually received or to be received from an entity other
      than the debtor, and the claim for remaining sums due for the
      balance of the term of the lease shall be a claim under section
      502(b)(6);
        (8) the actual, necessary costs and expenses of closing a
      health care business incurred by a trustee or by a Federal agency
      (as defined in section 551(1) of title 5) or a department or
      agency of a State or political subdivision thereof, including any
      cost or expense incurred - 
          (A) in disposing of patient records in accordance with
        section 351; or
          (B) in connection with transferring patients from the health
        care business that is in the process of being closed to another
        health care business; and

        (9) the value of any goods received by the debtor within 20
      days before the date of commencement of a case under this title
      in which the goods have been sold to the debtor in the ordinary
      course of such debtor's business.

      (c) Notwithstanding subsection (b), there shall neither be
    allowed, nor paid - 
        (1) a transfer made to, or an obligation incurred for the
      benefit of, an insider of the debtor for the purpose of inducing
      such person to remain with the debtor's business, absent a
      finding by the court based on evidence in the record that - 
          (A) the transfer or obligation is essential to retention of
        the person because the individual has a bona fide job offer
        from another business at the same or greater rate of
        compensation;
          (B) the services provided by the person are essential to the
        survival of the business; and
          (C) either - 
            (i) the amount of the transfer made to, or obligation
          incurred for the benefit of, the person is not greater than
          an amount equal to 10 times the amount of the mean transfer
          or obligation of a similar kind given to nonmanagement
          employees for any purpose during the calendar year in which
          the transfer is made or the obligation is incurred; or
            (ii) if no such similar transfers were made to, or
          obligations were incurred for the benefit of, such
          nonmanagement employees during such calendar year, the amount
          of the transfer or obligation is not greater than an amount
          equal to 25 percent of the amount of any similar transfer or
          obligation made to or incurred for the benefit of such
          insider for any purpose during the calendar year before the
          year in which such transfer is made or obligation is
          incurred;

        (2) a severance payment to an insider of the debtor, unless - 
          (A) the payment is part of a program that is generally
        applicable to all full-time employees; and
          (B) the amount of the payment is not greater than 10 times
        the amount of the mean severance pay given to nonmanagement
        employees during the calendar year in which the payment is
        made; or

        (3) other transfers or obligations that are outside the
      ordinary course of business and not justified by the facts and
      circumstances of the case, including transfers made to, or
      obligations incurred for the benefit of, officers, managers, or
      consultants hired after the date of the filing of the petition.