Common use of Customer Property Clause in Contracts

Customer Property. (a) The trustee shall distribute customer prop- erty ratably to customers on the basis and to the extent of such customers’ allowed net equity claims and in priority to all other claims, except claims of the kind specified in section 507(a)(2) of this title that are attributable to the admin- istration of such customer property. (1) The trustee shall distribute customer property in excess of that distributed under sub- section (a) of this section in accordance with section 726 of this title. (2) Except as provided in section 510 of this title, if a customer is not paid the full amount of such customer’s allowed net equity claim from customer property, the unpaid portion of such claim is a claim entitled to distribution under section 726 of this title. (c) Any cash or security remaining after the liquidation of a security interest created under a security agreement made by the debtor, ex- cluding property excluded under section 741(4)(B) of this title, shall be apportioned be- tween the general estate and customer property in the same proportion as the general estate of the debtor and customer property were subject to such security interest. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2614; Pub. L. 97–222, § 15, July 27, 1982, 96 Stat. 238; Pub. L.

Customer Property. (a) The trustee shall distribute customer prop- erty ratably to customers on the basis and to the extent of such customers’ allowed net equity claims and in priority to all other claims, except claims of the kind specified in section 507(a)(2) of this title that are attributable to the admin- istration of such customer property. (1) The trustee shall distribute customer property in excess of that distributed under sub- section (a) of this section in accordance with section 726 of this title. (2) Except as provided in section 510 of this title, if a customer is not paid the full amount of such customer’s allowed net equity claim from customer property, the unpaid portion of such claim is a claim entitled to distribution under section 726 of this title. (c) Any cash or security remaining after the liquidation of a security interest created under a security agreement made by the debtor, ex- cluding property excluded under section 741(4)(B) of this title, shall be apportioned be- tween the general estate and customer property in the same proportion as the general estate of the debtor and customer property were subject to such security interest. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2614; Pub. L. 97–222, § 15, July 27, 1982, 96 Stat. 238; Pub. L.L. 98–353, title III, § 484, July 10, 1984, 98 Stat. 383;