Title 11, BankruptcyRelease 119-102
§946 Effect of Exchange of Securities Before the Date of the Filing of the Petition
Title 11 › CHAPTER 9 — ADJUSTMENT OF DEBTS OF A MUNICIPALITY › SUBCHAPTER III — THE PLAN › § 946
Summary
Swapping a claim for new securities, before or after filing, does not weaken the plan, and counts under section 1126(c) must include the swapped claim's amount and number.
Full Legal Text
Title 11, §946
Bankruptcy, Source: USLM XML via OLRC
The exchange of a new security under the plan for a claim covered by the plan, whether such exchange occurred before or after the date of the filing of the petition, does not limit or impair the effectiveness of the plan or of any provision of this chapter. The amount and number specified in section 1126(c) of this title include the amount and number of claims formerly held by a creditor that has participated in any such exchange.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Legislative Statements
The House amendment deletes section 950 of the Senate amendment as unnecessary. The constitutionality of chapter 9 of the House amendment is beyond doubt.
senate report no. 95–989
[section 949] This section [enacted as section 946], which follows section 97 of current law [section 417 of former title 11], permits an exchange of a security before the case is filed to constitute an acceptance of the plan if the exchange was under a proposal that later becomes the plan.
Reference
Citations & Metadata
Citation
11 U.S.C. § 946
Title 11, Bankruptcy
Last Updated
Aug 21, 2026
Release point: 119-102