11 U.S.C. § 741
Section 741 · Definitions for this subchapter
Current version, with additions and removals from the April 20, 2005 version.
In this subchapter—
In this subchapter—
(1) “Commission” means Securities and Exchange Commission;
(1) “Commission” means Securities and Exchange Commission;
(2) “customer” includes—
(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—
(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;
(i) for safekeeping;
(ii) with a view to sale;
(ii) with a view to sale;
(iii) to cover a consummated sale;
(iii) to cover a consummated sale;
(iv) pursuant to a purchase;
(iv) pursuant to a purchase;
(v) as collateral under a security agreement; or
(v) as collateral under a security agreement; or
(vi) for the purpose of effecting registration of transfer; and
(vi) for the purpose of effecting registration of transfer; and
(B) entity that has a claim against a person arising out of—
(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
(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;
(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—
(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;
(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
(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;
(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—
(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—
(A) including—
(i) property that was unlawfully converted from and that is the lawful property of the estate;
(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;
(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
(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
(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—
(B) not including—
(i) a customer name security delivered to or reclaimed by a customer under section 751 of this title; or
(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;
(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;
(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—
(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
(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
(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;
(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”—
(7) “securities contract”—
(A) means—
(A) means—
(ii) any option entered into on a national securities exchange relating to foreign currencies;
(ii) any option entered into on a national securities exchange relating to foreign currencies;
(iv) any margin loan;
(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;
(B) does not include any purchase, sale, or repurchase obligation under a participation in a commercial mortgage loan;
(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
(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.
(9) “SIPC” means Securities Investor Protection Corporation.