Title 11, BankruptcyRelease 119-102
§744 Executory Contracts
Title 11 › CHAPTER 7 — LIQUIDATION › SUBCHAPTER III — STOCKBROKER LIQUIDATION › § 744
Summary
The trustee must, within 30 days after the bankruptcy order, decide to keep or cancel ordinary securities contracts; if the trustee does not decide, the contracts are canceled.
Full Legal Text
Title 11, §744
Bankruptcy, Source: USLM XML via OLRC
Notwithstanding section 365(d)(1) of this title, the trustee shall assume or reject, under section 365 of this title, any executory contract of the debtor for the purchase or sale of a security in the ordinary course of the debtor’s business, within a reasonable time after the date of the order for relief, but not to exceed 30 days. If the trustee does not assume such a contract within such time, such contract is rejected.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
senate report no. 95–989
section 744 instructs the court to give the trustee a reasonable time, not to exceed 30 days, to assume or reject any executory contract of the stockbroker to buy or sell securities. Any contract not assumed within the time fixed by the court is considered to be rejected.
Editorial Notes
Amendments
1982—Pub. L. 97–222 inserted “but” after “relief,”.
Reference
Citations & Metadata
Citation
11 U.S.C. § 744
Title 11, Bankruptcy
Last Updated
Aug 21, 2026
Release point: 119-102