11 U.S.C. § 763: Treatment of accounts

Summary

Keep accounts separate when they belong to the same person but are held in different roles. A firm that is a member of a clearing organization must treat its own account as separate from its customers’ accounts. One customer's net equity cannot be used to offset or reduce the net equity in any other customer's account.

Title 11, §763

Bankruptcy, Source: USLM XML via OLRC

(a)Accounts held by the debtor for a particular customer in separate capacities shall be treated as accounts of separate customers.

(b)A member of a clearing organization shall be deemed to hold such member’s proprietary account in a separate capacity from such member’s customers’ account.

(c)The net equity in a customer’s account may not be offset against the net equity in the account of any other customer.

Notes & Related Subsidiaries

Historical and Revision Notes

senate report no. 95–989

section 763 provides for separate treatment of accounts held in separate capacities. A deficit in one account held for a customer may not be offset against the net equity in another account held by the same customer in a separate capacity or held by another customer.

Editorial Notes

Amendments

1984—Subsec. (a). Pub. L. 98–353 substituted “by the debtor for” for “by” and “treated as” for “deemed to be”.

Statutory Notes and Related Subsidiaries

Effective Date

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

§763 Treatment of Accounts