§763 — Title 11 Bankruptcy | U.S. Code

Summary

Accounts a person or business that owes money (the debtor) keeps for different customers must be kept and treated as separate when those accounts are for different roles or capacities. 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 (the customer’s balance after debts and credits) cannot be used to reduce or cancel another customer’s net equity.

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