§ 751. Customer name securities
215 words·~1 min read·
/usc/title-11/section-751A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The trustee shall deliver any customer name security to or on behalf of the customer entitled to such security, unless such customer has a negative net equity. With the approval of the trustee, a customer may reclaim a customer name security after payment to the trustee, within such period as the trustee allows, of any claim of the debtor against such customer to the extent that such customer will not have a negative net equity after such payment.
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2614.)
Historical and Revision Notes
senate report no. 95–989
Section 751 requires the trustee to deliver a customer name security to the customer entitled to such security unless the customer has a negative net equity. The customer’s net equity will be negative when the amount owed by the customer to the stockbroker exceeds the liquidation value of the non-customer name securities in the customer’s account. If the customer is a net debtor of the stockbroker, then the trustee may permit the customer to repay debts to the stockbroker so that the customer will no longer be in debt to the stockbroker.
If the customer refuses to pay such amount, then the court may order the customer to endorse the security in order that the trustee may liquidate such property.
Connections4 cite this
Cited by 4 sections
2 references not yet in our index
- Pub. L. 95–598
- 92 Stat. 2614
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§ 751
Customer name securities
U.S.C.×3
Stat.×1
Pub. L.Pub. L. 95–598
Stat.92 Stat. 2614
Cites 2Cited by 4 across 2 sources