PRIA, Government Policy, Made Personal

Summary

If a manufacturer files for bankruptcy under chapter 7 or chapter 11, it still must follow the safety and recall duties in sections 30112 and 30115–30120. In the bankruptcy case, those duties are treated as a claim by the United States and handled under subchapter II of chapter 37 of title 31. They get priority under section 3713(a)(1)(A), even if section 3713(a)(2) would say otherwise. This applies to actions taken before or after the bankruptcy filing to help protect consumers from safety defects or noncompliance.

Title 49, §30120A

Transportation, Source: USLM XML via OLRC

A manufacturer’s filing of a petition in bankruptcy under chapter 7 or chapter 11 of title 11 does not negate the manufacturer’s duty to comply with section 30112 or sections 30115 through 30120 of this title. In any bankruptcy proceeding, the manufacturer’s obligations under such sections shall be treated as a claim of the United States Government against such manufacturer, subject to subchapter II of chapter 37 of title 31, United States Code, and given priority pursuant to section 3713(a)(1)(A) of such chapter, notwithstanding section 3713(a)(2), to ensure that consumers are adequately protected from any safety defect or noncompliance determined to exist in the manufacturer’s products. This section shall apply equally to actions of a manufacturer taken before or after the filing of a petition in bankruptcy.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2015—Pub. L. 114–94 substituted “chapter 7 or chapter 11 of title 11” for “chapter 11 of title 11,”.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Oct. 1, 2012, see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of Title 23, Highways.

§30120A Recall Obligations and Bankruptcy of a Manufacturer