11 U.S.C. § 555

Contractual right to liquidate, terminate, or accelerate a securities contract

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The exercise of a contractual right of a stockbroker, financial institution, financial participant, or securities clearing agency to cause the liquidation, termination, or acceleration 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 derivatives clearing organization (as defined in the Commodity Exchange Act), a multilateral clearing organization (as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991), a national securities exchange, a national securities association, a securities clearing agency, a contract market designated under the Commodity Exchange Act, a derivatives transaction execution facility registered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity Exchange Act), or in a resolution of the governing board thereof, and a right, whether or not in writing, arising under common law, under law merchant, or by reason of normal business practice.

Notes of Decisions
Cited in 8 cases (1 in the last 5 years), 1990–2023 · leading case: Maverick Long Enhanced Fund, Ltd. v. Lehman Bros. Holdings Inc. (In re Lehman Bros. Holdings Inc.), 594 B.R. 564 (S.D. Ill. 2018).
Maverick Long Enhanced Fund, Ltd. v. Lehman Bros. Holdings Inc. (In re Lehman Bros. Holdings Inc.), 594 B.R. 564 (S.D. Ill. 2018). · cites it 4× “See 11 U.S.C. §§ 555 - 56, 559 - 61. The rationale underpinning these provisions is that parties may be irreparably harmed if certain contractual rights, such as termination, cannot be exercised because one of the signatories has entered bankruptcy proceedings.”
Kipperman v. Circle Trust F.B.O. (In Re Grafton Partners, L.P.), 321 B.R. 527 (9th Cir. BAP 2005). · cites it 2× “6 The key provision was the creation in 11 U.S.C. § 555 of a power for a stockbroker or securities clearing agency to exercise a contractual right to liquidate a securities contract — including a right set forth in a rule or bylaw of a national securities exchange, national…”
Am. Home Mortg. Inv. Corp. v. Lehman Bros. (In Re Am. Home Mortg., Holdings, Inc.), 388 B.R. 69 (Bankr. D. Del. 2008). · cites it 2× “11 U.S.C. §§ 555 and 741. 42 . Complaint, Ex.”
Calyon New York Branch v. Am. Home Mortg. Corp. (In Re Am. Home Mortg., Inc.), 379 B.R. 503 (Bankr. D. Del. 2008). “11 U.S.C. § 555 . 43 . More precisely, the Court should determine whether the Purchasers are financial institutions.”
Golden State TD Investments, LLC v. Andrews Kurth LLP (In re California TD Investments, LLC), 489 B.R. 124 (Bankr. C.D. Cal. 2013). “See Draft Repurchase Agreement with accompanying e-mails, which is Plaintiffs Exhibit 7; Notice of Motion and Motion of Pacifieor, LLC for Order Con *128 firming Applicability of 11 U.S.C. § 555 (filed 11/21/07 in Case No.”
In Re Amcor Funding Corp., 117 B.R. 549 (D. Ariz. 1990). · cites it 2× “Drexel argued that the following language from 11 U.S.C. § 555 was also applicable: The exercise of a contractual right of a stockbroker .”
TMC Consulting Servs., L.L.C. v. Wright (Del. Super. Ct. 2017). “ORDERED, that all persons and entities (other than the Official Liquidators and their expressly authorized representatives and agents) are hereby enjoined, except as provided in 11 U.S.C. §§ 555 through 557, 559 through 562, 1520 and 1521 or as modified herein, from: (1)…”
AIG Fin. Prods. Corp. (Bankr. D. Del. 2023). “See 11 U.S.C. §§ 555 , 556, 559 & 560. See also Corrie Dep.”
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