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Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>
2026-07-06 09:52:37 -04:00

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LegalText 11 U.S.C. § 751 Customer name securities us united_states_code code_section 11 BANKRUPTCY 7 LIQUIDATION 751 11 U.S.C. § 751 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/s751 data/legal/raw/us/code/title-11/usc11.xml ae28e76b417337835abeedab229b74cea6f826abef84f86efc3767fc19c03d98 49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2 00eaaed4238554100887165fb580112274bd87383503ded5bd63cb4fc77f7593 2026-07-04 official
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11 U.S.C. § 751 - Customer name securities

Text

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. 95598, Nov. 6, 1978, 92 Stat. 2614.)

Notes

Historical and Revision Notes

senate report no. 95989Section 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 customers 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 customers 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.