11 U.S.C. § 559 : US Code - Section 559: Contractual right to liquidate, terminate, or accelerate a repurchase agreement

Search 11 U.S.C. § 559 : US Code - Section 559: Contractual right to liquidate, terminate, or accelerate a repurchase agreement

The exercise of a contractual right of a repo participant or
financial participant to cause the liquidation, termination, or
acceleration of a repurchase agreement because of a condition of
the kind specified in section 365(e)(1) of this title shall not be
stayed, avoided, or otherwise limited by operation of any provision
of this title or by order of a court or administrative agency in
any proceeding under this title, unless, where the debtor is a
stockbroker or securities clearing agency, such order is authorized
under the provisions of the Securities Investor Protection Act of
1970 or any statute administered by the Securities and Exchange
Commission. In the event that a repo participant or financial
participant liquidates one or more repurchase agreements with a
debtor and under the terms of one or more such agreements has
agreed to deliver assets subject to repurchase agreements to the
debtor, any excess of the market prices received on liquidation of
such assets (or if any such assets are not disposed of on the date
of liquidation of such repurchase agreements, at the prices
available at the time of liquidation of such repurchase agreements
from a generally recognized source or the most recent closing bid
quotation from such a source) over the sum of the stated repurchase
prices and all expenses in connection with the liquidation of such
repurchase agreements shall be deemed property of the estate,
subject to the available rights of setoff. As used in this section,
the term "contractual right" includes a right set forth in a rule
or bylaw of a derivatives clearing organization (as defined in the
Commodity Exchange Act), a multilateral clearing organization (as
defined in the Federal Deposit Insurance Corporation Improvement
Act of 1991), a national securities exchange, a national securities
association, a securities clearing agency, a contract market
designated under the Commodity Exchange Act, a derivatives
transaction execution facility registered under the Commodity
Exchange Act, or a board of trade (as defined in the Commodity
Exchange Act) or in a resolution of the governing board thereof and
a right, whether or not evidenced in writing, arising under common
law, under law merchant or by reason of normal business practice.