7 U.S.C. § 24

Customer property with respect to commodity broker debtors; definitions

Read at: OLRCuscode.house.gov CornellLII GovInfogovinfo.gov JustiaTitle 7 CasesGoogle Scholar

(a) Regulations respecting commodity broker debtorsNotwithstanding title 11, the Commission may provide, with respect to a commodity broker that is a debtor under chapter 7 of title 11, by rule or regulation—(1) that certain cash, securities, other property, or commodity contracts are to be included in or excluded from customer property or member property;(2) that certain cash, securities, other property, or commodity contracts are to be specifically identifiable to a particular customer in a specific capacity;(3) the method by which the business of such commodity broker is to be conducted or liquidated after the date of the filing of the petition under such chapter, including the payment and allocation of margin with respect to commodity contracts not specifically identifiable to a particular customer pending their orderly liquidation;(4) any persons to which customer property and commodity contracts may be transferred under section 766 of title 11; and(5) how the net equity of a customer is to be determined.(b) Definitions

As used in this section, the terms “commodity broker”, “commodity contract”, “customer”, “customer property”, “member property”, “net equity”, and “security” have the meanings assigned such terms for the purposes of subchapter IV of chapter 7 of title 11.

The Commission shall exercise its authority to ensure that securities held in a portfolio margining account carried as a futures account are customer property and the owners of those accounts are customers for the purposes of subchapter IV of chapter 7 of title 11.

(Sept. 21, 1922, ch. 369, § 20, formerly § 19, as added Pub. L. 95–598, title III, § 302, Nov. 6, 1978, 92 Stat. 2673; renumbered and amended Pub. L. 97–222, § 20, July 27, 1982, 96 Stat. 241; Pub. L. 111–203, title VII, § 713(c), July 21, 2010, 124 Stat. 1647.)Editorial NotesAmendments

2010—Subsec. (c). Pub. L. 111–203 added subsec. (c).

1982—Subsec. (a)(3). Pub. L. 97–222, § 20(b), inserted “, including the payment and allocation of margin with respect to commodity contracts not specifically identifiable to a particular customer pending their orderly liquidation”.

Statutory Notes and Related SubsidiariesEffective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective on the later of 360 days after July 21, 2010, or, to the extent a provision of subtitle A (§§ 711–754) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation implementing such provision of subtitle A, see section 754 of Pub. L. 111–203, set out as a note under section 1a of this title.

Effective Date

Section effective Nov. 6, 1978, see section 402(d) of Pub. L. 95–598, set out as a note preceding section 101 of Title 11, Bankruptcy.

Notes of Decisions

Cited in 10 cases (1 in the last 5 years), 1996–2022 · leading case: In Re Griffin Trading Co., 245 B.R. 291 (Bankr. N.D. Ill. 2000).

Sort: Relevance Newest Treatment

In Re Griffin Trading Co., 245 B.R. 291 (Bankr. N.D. Ill. 2000). · cites it 20× “law applies to the distribution of Griffin’s assets, the CFTC has exceeded its statutory authority to regulate commodity broker bankruptcies, granted in 7 U.S.C. § 24 . Under U.S. law, which the Trustee seeks to apply, customer property comes under the trustee’s control, see 11…”

HSBC Bank USA v. Fane (In Re MF Global Inc.), 466 B.R. 244 (Bankr. S.D.N.Y. 2012). “” 7 U.S.C. § 24 (a). The CFTC drafted 17 C.”

Koch Supply & Trading, LP v. Giddens, 484 B.R. 18 (S.D.N.Y. 2012). · cites it 2× “See 7 U.S.C. § 24 (a)(1) (2012) (“Notwithstanding title 11, the [CFTC] may provide .”

Gradel v. Piranha Capital, L.P., 495 F.3d 729 (7th Cir. 2007). “The Commodity Futures Trading Act authorizes the Commission to promulgate regulations governing the liquidation of commodity brokers that are in Chapter 7 bankruptcy, 7 U.S.C. § 24 (a)(3); 11 U.S.C. §§ 761-767 , but the Commission’s statement does not cite any of those statutes,…”

Secure Leverage Grp., Inc. v. Bodenstein (In re Peregrine Fin. Grp., Inc.), 510 B.R. 190 (Bankr. N.D. Ill. 2014). “” 7 U.S.C. § 24 (a)(1). The CFTC and the trustee contend that this provision permits the CFTC, in effect, to alter the definitions of “customer property” and “commodity contract” in § 761 of the Bankruptcy Code.”

Hodge Bros., Inc. v. DeLong Co., Inc., 942 F. Supp. 412 (W.D. Wis. 1996). “§§ 1331 and 1367; 7 U.S.C. § 24 and 18 U.S.C. § 1964 . Defendants have counterclaimed, seeking declaratory and injunctive relief and money damages.”

Farmers Co-Operative Elevator, Woden, Iowa v. Doden, 946 F. Supp. 718 (N.D. Iowa 1996). “§ 1331 and the Commodity Exchange Act, 7 U.S.C. § 24 , making removal proper under 28 U.”

PricewaterhouseCoopers LLP v. Giddens ex rel. SIPA Liquidation of MF Global Inc. (In re MF Global Inc.), 505 B.R. 623 (S.D.N.Y. 2014). “The Bankruptcy Court held that the CME Settlement Assets, the JPMC Settlement Assets, and the Securities Excess did not fall under the definition of customer property.”

Commodity Futures Trading Comm'n v. Fin. Tree (E.D. Cal. 2022). “Therefore, pursuant to 7 U.S.C. § 24 2(a)(1)(B) and 17 C.F.R. § 1.”

Gradel, Theodore F. v. Piranha Capital (7th Cir. 2007). “The Commodity Futures Trading Act authorizes the Commis- sion to promulgate regulations governing the liquidation of commodity brokers that are in Chapter 7 bankruptcy, 7 U.S.C. § 24 (a)(3); 11 U.S.C. §§ 761-767 , but the Commis- sion’s statement does not cite any of those…”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.