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Current as of January 01, 2024 | Updated by Findlaw Staff
(a)Regulations respecting commodity broker debtors
Notwithstanding Title 11, the Commission may provide, with respect to a commodity broker that is a debtor under chapter 7 of Title 11, by rule or regulation--
(1) that certain cash, securities, other property, or commodity contracts are to be included in or excluded from customer property or member property;
(2) that certain cash, securities, other property, or commodity contracts are to be specifically identifiable to a particular customer in a specific capacity;
(3) the method by which the business of such commodity broker is to be conducted or liquidated after the date of the filing of the petition under such chapter, including the payment and allocation of margin with respect to commodity contracts not specifically identifiable to a particular customer pending their orderly liquidation;
(4) any persons to which customer property and commodity contracts may be transferred under section 766 of Title 11; and
(5) how the net equity of a customer is to be determined.
(b)Definitions
As used in this section, the terms “commodity broker”, “commodity contract”, “customer”, “customer property”, “member property”, “net equity”, and “security” have the meanings assigned such terms for the purposes of subchapter IV of chapter 7 of Title 11.
(c)Portfolio margining accounts
The Commission shall exercise its authority to ensure that securities held in a portfolio margining account carried as a futures account are customer property and the owners of those accounts are customers for the purposes of subchapter IV of chapter 7 of Title 11.
Cite this article: FindLaw.com - 7 U.S.C. § 24 - U.S. Code - Unannotated Title 7. Agriculture § 24. Customer property with respect to commodity broker debtors; definitions - last updated January 01, 2024 | https://codes.findlaw.com/us/title-7-agriculture/7-usc-sect-24/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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