U.S. Code » Title 11 » Chapter CHAPTER 5— CREDITORS, THE DEBTOR, AND THE ESTATE › Subchapter SUBCHAPTER III— THE ESTATE

11 U.S.C. § 557

Expedited determination of interests in, and abandonment or other disposition of grain assets

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(a) This section applies only in a case concerning a debtor that owns or operates a grain storage facility and only with respect to grain and the proceeds of grain. This section does not affect the application of any other section of this title to property other than grain and proceeds of grain.(b) In this section—(1) “grain” means wheat, corn, flaxseed, grain sorghum, barley, oats, rye, soybeans, other dry edible beans, or rice;(2) “grain storage facility” means a site or physical structure regularly used to store grain for producers, or to store grain acquired from producers for resale; and(3) “producer” means an entity which engages in the growing of grain.(c)(1) Notwithstanding sections 362, 363, 365, and 554 of this title, on the court’s own motion the court may, and on the request of the trustee or an entity that claims an interest in grain or the proceeds of grain the court shall, expedite the procedures for the determination of interests in and the disposition of grain and the proceeds of grain, by shortening to the greatest extent feasible such time periods as are otherwise applicable for such procedures and by establishing, by order, a timetable having a duration of not to exceed 120 days for the completion of the applicable procedure specified in subsection (d) of this section. Such time periods and such timetable may be modified by the court, for cause, in accordance with subsection (f) of this section.(2) The court shall determine the extent to which such time periods shall be shortened, based upon—(A) any need of an entity claiming an interest in such grain or the proceeds of grain for a prompt determination of such interest;(B) any need of such entity for a prompt disposition of such grain;(C) the market for such grain;(D) the conditions under which such grain is stored;(E) the costs of continued storage or disposition of such grain;(F) the orderly administration of the estate;(G) the appropriate opportunity for an entity to assert an interest in such grain; and(H) such other considerations as are relevant to the need to expedite such procedures in the case.(d) The procedures that may be expedited under subsection (c) of this section include—(1) the filing of and response to—(A) a claim of ownership;(B) a proof of claim;(C) a request for abandonment;(D) a request for relief from the stay of action against property under section 362(a) of this title;(E) a request for determination of secured status;(F) a request for determination of whether such grain or the proceeds of grain—(i) is property of the estate;(ii) must be turned over to the estate; or(iii) may be used, sold, or leased; and(G) any other request for determination of an interest in such grain or the proceeds of grain;(2) the disposition of such grain or the proceeds of grain, before or after determination of interests in such grain or the proceeds of grain, by way of—(A) sale of such grain;(B) abandonment;(C) distribution; or(D) such other method as is equitable in the case;(3) subject to sections 701, 702, 703, 1104, 1183, 1202, and 1302 of this title, the appointment of a trustee or examiner and the retention and compensation of any professional person required to assist with respect to matters relevant to the determination of interests in or disposition of such grain or the proceeds of grain; and(4) the determination of any dispute concerning a matter specified in paragraph (1), (2), or (3) of this subsection.(e)(1) Any governmental unit that has regulatory jurisdiction over the operation or liquidation of the debtor or the debtor’s business shall be given notice of any request made or order entered under subsection (c) of this section.(2) Any such governmental unit may raise, and may appear and be heard on, any issue relating to grain or the proceeds of grain in a case in which a request is made, or an order is entered, under subsection (c) of this section.(3) The trustee shall consult with such governmental unit before taking any action relating to the disposition of grain in the possession, custody, or control of the debtor or the estate.(f) The court may extend the period for final disposition of grain or the proceeds of grain under this section beyond 120 days if the court finds that—(1) the interests of justice so require in light of the complexity of the case; and(2) the interests of those claimants entitled to distribution of grain or the proceeds of grain will not be materially injured by such additional delay.(g) Unless an order establishing an expedited procedure under subsection (c) of this section, or determining any interest in or approving any disposition of grain or the proceeds of grain, is stayed pending appeal—(1) the reversal or modification of such order on appeal does not affect the validity of any procedure, determination, or disposition that occurs before such reversal or modification, whether or not any entity knew of the pendency of the appeal; and(2) neither the court nor the trustee may delay, due to the appeal of such order, any proceeding in the case in which such order is issued.(h)(1) The trustee may recover from grain and the proceeds of grain the reasonable and necessary costs and expenses allowable under section 503(b) of this title attributable to preserving or disposing of grain or the proceeds of grain, but may not recover from such grain or the proceeds of grain any other costs or expenses.(2) Notwithstanding section 326(a) of this title, the dollar amounts of money specified in such section include the value, as of the date of disposition, of any grain that the trustee distributes in kind.(i) In all cases where the quantity of a specific type of grain held by a debtor operating a grain storage facility exceeds ten thousand bushels, such grain shall be sold by the trustee and the assets thereof distributed in accordance with the provisions of this section.(Added Pub. L. 98–353, title III, § 352(a), July 10, 1984, 98 Stat. 359; amended Pub. L. 99–554, title II, § 257(p), Oct. 27, 1986, 100 Stat. 3115; Pub. L. 116–54, § 4(a)(10), Aug. 23, 2019, 133 Stat. 1086.)Editorial NotesAmendments

2019—Subsec. (d)(3). Pub. L. 116–54 inserted “1183,” after “1104,”.

1986—Subsec. (d)(3). Pub. L. 99–554 inserted reference to section 1202 of this title.

Statutory Notes and Related SubsidiariesEffective Date of 2019 Amendment

Amendment by Pub. L. 116–54 effective 180 days after Aug. 23, 2019, see section 5 of Pub. L. 116–54, set out as a note under section 101 of this title.

Effective Date of 1986 Amendment

Amendment by Pub. L. 99–554 effective 30 days after Oct. 27, 1986, but not applicable to cases commenced under this title before that date, see section 302(a), (c)(1) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.

Effective Date

Section effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as an Effective Date of 1984 Amendment note under section 101 of this title.

Notes of Decisions
Cited in 25 cases (3 in the last 5 years), 1941–2026 · leading case: In Re Progress Lektro Shave Corporation
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In Re Progress Lektro Shave Corporation (1941) ca2 · cites it 2× “11 U.S.C.A. §§ 557 , 558. There is no question but that the appellant acted throughout in -good faith and a denial to him of compensation is a harsh conclusion.”
In the Matter of C & S Grain Company, Incorporated, Debtor-Appellant (1995) ca7 “See 11 U.S.C. § 557 (permitting the bankruptcy court to provide for an expedited determination of interests in grain assets).”
Farmers Rice Milling Co. v. Hawkins (In Re Bearhouse, Inc.) (1988) arwb · cites it 2× “On April 1, 1987, an order was entered pursuant to 11 U.S.C. § 557 authorizing the trustee to sell all of the grain stored at Bearhouse’s facilities subject to all existing claims of ownership as this Court will de *555 termine in this memorandum opinion.”
North Dakota Public Service Commission v. Jamestown Farmers Elevator, Inc. (1988) nd · cites it 2× “§ 362(a), requests for abandonment, sale, and distribution of grain or the proceeds of grain when the bankrupt owned or operated a grain storage facility.”
In Re Childress (1995) mowb · cites it 5× “This matter is before the Court on the motion for expedited hearing pursuant to 11 U.S.C. § 557 and motion for relief from the automatic stay filed by the Missouri Department of Agriculture (Department).”
In Re Westec Corporation (1970) txsd · cites it 2× “Since the Applicant was not eligible to represent the Trustee directly, 11 U.S.C.A. § 557 , whether or not the Applicant was in all respects eligible to represent the Debtor is subject to some question.”
In Re Hawkins Co., Ltd. (1989) idb · cites it 4× “The issues have been raised by various pleadings including: responses to the bills of particular, the various motions of Klein Bros, for subordination of producer claims to the Klein Bros, claims and to obtain possession of the beans under 11 U.S.C. § 557 , the motion for…”
Brodsky v. Independent Cement Corp. (In Re Marine Pollution Service, Inc.) (1989) nysb “Finally, pursuant to 11 U.S.C. § 557 , Transit Mix sought to preserve all avoided liens for the benefit of the estate.”
In Re Cuyahoga Finance Co. (1943) ca6 “The vital question on this appeal is whether the jurisdiction of the court ceases after restraining a pledgee creditor from disposing of the pledged assets in his possession without the consent of the court or whether such jurisdiction extends to determine set-offs of the debtor…”
First Nat. Bank in Houston, Texas v. Lake (1953) ca1 “The court said: ■ “The vital question on this appeal is whether the jurisdiction of the court ceases after restraining a pledgee creditor from disposing of the pledged assets in his possession without the consent of the court or whether such jurisdiction extends to determine…”
In Re McGrath Mfg. Co. of Omaha, Nebraska (1951) ned · cites it 2× “” 11 U.S.C.A. § 557 . That Mr. Ritchie was not disinterested is clear.”
First Nat. Bank of Smith Center, Kan. v. Nugent (1987) ksd “The bankruptcy court ordered on April 15, 1985, that the grain assets in the Trustee’s possession were subject to the expedited proceedings under 11 U.S.C. § 557 , and that Trustee’s plan for immediate sale of the grain and distribution of proceeds was proper and to be executed…”
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