11 U.S.C. § 741 : US Code - Section 741: Definitions for this subchapter

Search 11 U.S.C. § 741 : US Code - Section 741: Definitions for this subchapter

In this subchapter -
(1) "Commission" means Securities and Exchange Commission;
(2) "customer" includes -
(A) entity with whom a person deals as principal or agent and
that has a claim against such person on account of a security
received, acquired, or held by such person in the ordinary
course of such person's business as a stockbroker, from or for
the securities account or accounts of such entity -
(i) for safekeeping;
(ii) with a view to sale;
(iii) to cover a consummated sale;
(iv) pursuant to a purchase;
(v) as collateral under a security agreement; or
(vi) for the purpose of effecting registration of transfer;
and
(B) entity that has a claim against a person arising out of -

(i) a sale or conversion of a security received, acquired,
or held as specified in subparagraph (A) of this paragraph;
or
(ii) a deposit of cash, a security, or other property with
such person for the purpose of purchasing or selling a
security;
(3) "customer name security" means security -
(A) held for the account of a customer on the date of the
filing of the petition by or on behalf of the debtor;
(B) registered in such customer's name on such date or in the
process of being so registered under instructions from the
debtor; and
(C) not in a form transferable by delivery on such date;
(4) "customer property" means cash, security, or other
property, and proceeds of such cash, security, or property,
received, acquired, or held by or for the account of the debtor,
from or for the securities account of a customer -
(A) including -
(i) property that was unlawfully converted from and that is
the lawful property of the estate;
(ii) a security held as property of the debtor to the
extent such security is necessary to meet a net equity claim
of a customer based on a security of the same class and
series of an issuer;
(iii) resources provided through the use or realization of
a customer's debit cash balance or a debit item includible in
the Formula for Determination of Reserve Requirement for
Brokers and Dealers as promulgated by the Commission under
the Securities Exchange Act of 1934; and
(iv) other property of the debtor that any applicable law,
rule, or regulation requires to be set aside or held for the
benefit of a customer, unless including such property as
customer property would not significantly increase customer
property; but
(B) not including -
(i) a customer name security delivered to or reclaimed by a
customer under section 751 of this title; or
(ii) property to the extent that a customer does not have a
claim against the debtor based on such property;
(5) "margin payment" means payment or deposit of cash, a
security, or other property, that is commonly known to the
securities trade as original margin, initial margin, maintenance
margin, or variation margin, or as a mark-to-market payment, or
that secures an obligation of a participant in a securities
clearing agency;
(6) "net equity" means, with respect to all accounts of a
customer that such customer has in the same capacity -
(A)(i) aggregate dollar balance that would remain in such
accounts after the liquidation, by sale or purchase, at the
time of the filing of the petition, of all securities positions
in all such accounts, except any customer name securities of
such customer; minus
(ii) any claim of the debtor against such customer in such
capacity that would have been owing immediately after such
liquidation; plus
(B) any payment by such customer to the trustee, within 60
days after notice under section 342 of this title, of any
business related claim of the debtor against such customer in
such capacity;
(7) "securities contract" -
(A) means -
(i) a contract for the purchase, sale, or loan of a
security, a certificate of deposit, a mortgage loan, any
interest in a mortgage loan, a group or index of securities,
certificates of deposit, or mortgage loans or interests
therein (including an interest therein or based on the value
thereof), or option on any of the foregoing, including an
option to purchase or sell any such security, certificate of
deposit, mortgage loan, interest, group or index, or option,
and including any repurchase or reverse repurchase
transaction on any such security, certificate of deposit,
mortgage loan, interest, group or index, or option (whether
or not such repurchase or reverse repurchase transaction is a
"repurchase agreement", as defined in section 101);
(ii) any option entered into on a national securities
exchange relating to foreign currencies;
(iii) the guarantee (including by novation) by or to any
securities clearing agency of a settlement of cash,
securities, certificates of deposit, mortgage loans or
interests therein, group or index of securities, or mortgage
loans or interests therein (including any interest therein or
based on the value thereof), or option on any of the
foregoing, including an option to purchase or sell any such
security, certificate of deposit, mortgage loan, interest,
group or index, or option (whether or not such settlement is
in connection with any agreement or transaction referred to
in clauses (i) through (xi));
(iv) any margin loan;
(v) any extension of credit for the clearance or settlement
of securities transactions;
(vi) any loan transaction coupled with a securities collar
transaction, any prepaid forward securities transaction, or
any total return swap transaction coupled with a securities
sale transaction;
(vii) any other agreement or transaction that is similar to
an agreement or transaction referred to in this subparagraph;
(viii) any combination of the agreements or transactions
referred to in this subparagraph;
(ix) any option to enter into any agreement or transaction
referred to in this subparagraph;
(x) a master agreement that provides for an agreement or
transaction referred to in clause (i), (ii), (iii), (iv),
(v), (vi), (vii), (viii), or (ix), together with all
supplements to any such master agreement, without regard to
whether the master agreement provides for an agreement or
transaction that is not a securities contract under this
subparagraph, except that such master agreement shall be
considered to be a securities contract under this
subparagraph only with respect to each agreement or
transaction under such master agreement that is referred to
in clause (i), (ii), (iii), (iv), (v), (vi), (vii), (viii),
or (ix); or
(xi) any security agreement or arrangement or other credit
enhancement related to any agreement or transaction referred
to in this subparagraph, including any guarantee or
reimbursement obligation by or to a stockbroker, securities
clearing agency, financial institution, or financial
participant in connection with any agreement or transaction
referred to in this subparagraph, but not to exceed the
damages in connection with any such agreement or transaction,
measured in accordance with section 562; and
(B) does not include any purchase, sale, or repurchase
obligation under a participation in a commercial mortgage loan;
(8) "settlement payment" means a preliminary settlement
payment, a partial settlement payment, an interim settlement
payment, a settlement payment on account, a final settlement
payment, or any other similar payment commonly used in the
securities trade; and
(9) "SIPC" means Securities Investor Protection Corporation.