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2026-07-06 09:52:37 -04:00

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LegalText 11 U.S.C. § 562 Timing of damage measurement in connection with swap agreements, securities contracts, forward contracts, commodity contracts, repurchase agreements, and master netting agreements us united_states_code code_section 11 BANKRUPTCY 5 CREDITORS, THE DEBTOR, AND THE ESTATE 562 11 U.S.C. § 562 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip /us/usc/t11/s562 data/legal/raw/us/code/title-11/usc11.xml 014111f979c5e49b2eaf633b2d141b36471682efa62c2594fdeea26b3b3b60dc 49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2 37cadc3a331b7858f8980fc7ab286f83bbaaab7ddc69405effa19a3e23414baf 2026-07-04 official
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11 U.S.C. § 562 - Timing of damage measurement in connection with swap agreements, securities contracts, forward contracts, commodity contracts, repurchase agreements, and master netting agreements

Text

(a) If the trustee rejects a swap agreement, securities contract (as defined in section 741), forward contract, commodity contract (as defined in section 761), repurchase agreement, or master netting agreement pursuant to section 365(a), or if a forward contract merchant, stockbroker, financial institution, securities clearing agency, repo participant, financial participant, master netting agreement participant, or swap participant liquidates, terminates, or accelerates such contract or agreement, damages shall be measured as of the earlier of—

(1) the date of such rejection; or

(2) the date or dates of such liquidation, termination, or acceleration.

(b) If there are not any commercially reasonable determinants of value as of any date referred to in paragraph (1) or (2) of subsection (a), damages shall be measured as of the earliest subsequent date or dates on which there are commercially reasonable determinants of value.

(c) For the purposes of subsection (b), if damages are not measured as of the date or dates of rejection, liquidation, termination, or acceleration, and the forward contract merchant, stockbroker, financial institution, securities clearing agency, repo participant, financial participant, master netting agreement participant, or swap participant or the trustee objects to the timing of the measurement of damages—

(1) the trustee, in the case of an objection by a forward contract merchant, stockbroker, financial institution, securities clearing agency, repo participant, financial participant, master netting agreement participant, or swap participant; or

(2) the forward contract merchant, stockbroker, financial institution, securities clearing agency, repo participant, financial participant, master netting agreement participant, or swap participant, in the case of an objection by the trustee,

has the burden of proving that there were no commercially reasonable determinants of value as of such date or dates.

(Added Pub. L. 1098, title IX, § 910(a)(1), Apr. 20, 2005, 119 Stat. 184.)

Notes

Statutory Notes and Related Subsidiaries

Effective DateSection effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 1098, set out as an Effective Date of 2005 Amendment note under section 101 of this title.