TITLE 11–BANKRUPTCY
CHAPTER 5–CREDITORS, THE DEBTOR, AND THE ESTATE
Sub Chapter III – The Estate
Sec. 555. Contractual right to liquidate a securities contract
The exercise of a contractual right of a stockbroker, financial
institution, or securities clearing agency to cause the liquidation of a
securities contract, as defined in section 741 of this title, 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 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. As used
in this section, the term ``contractual right'' includes a right set
forth in a rule or bylaw of a national securities exchange, a national
securities association, or a securities clearing agency.
(Added Pub. L. 97-222, Sec. 6(a), July 27, 1982, 96 Stat. 236; amended
Pub. L. 98-353, title III, Sec. 469, July 10, 1984, 98 Stat. 380; Pub.
L. 103-394, title V, Sec. 501(b)(6), (d)(20), Oct. 22, 1994, 108 Stat.
4143, 4146.)
References in Text
The Securities Investor Protection Act of 1970, referred to in text,
is Pub. L. 91-598, Dec. 30, 1970, 84 Stat. 1636, as amended, which is
classified generally to chapter 2B-1 (Sec. 78aaa et seq.) of Title 15,
Commerce and Trade. For complete classification of this Act to the Code,
see section 78aaa of Title 15 and Tables.
Amendments
1994--Pub. L. 103-394 substituted ``section 741 of this title'' for
``section 741(7)'' and struck out ``(15 U.S.C. 78aaa et seq.)'' after
``Act of 1970''.
1984--Pub. L. 98-353 inserted ``, financial institution,'' after
``stockbroker''.
Effective Date of 1994 Amendment
Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not
applicable with respect to cases commenced under this title before Oct.
22, 1994, see section 702 of Pub. L. 103-394, set out as a note under
section 101 of this title.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98-353 effective with respect to cases filed 90
days after July 10, 1984, see section 552(a) of Pub. L. 98-353, set out
as a note under section 101 of this title.
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