Common use of Treatment of Accounts Clause in Contracts

Treatment of Accounts. (a) Accounts held by the debtor for a particu- lar customer in separate capacities shall be treated as accounts of separate customers. (b) If a stockbroker or a bank holds a cus- tomer net equity claim against the debtor that arose out of a transaction for a customer of such stockbroker or bank, each such customer of such stockbroker or bank shall be treated as a separate customer of the debtor. (c) Each trustee’s account specified as such on the debtor’s books, and supported by a trust deed filed with, and qualified as such by, the In- ternal Revenue Service, and under the Internal Revenue Code of 1986, shall be treated as a sepa- rate customer account for each beneficiary under such trustee account. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2613; Pub. L. 97–222, § 11, July 27, 1982, 96 Stat. 238; Pub. L. 98–353, title III, § 483, July 10, 1984, 98 Stat. 383; Pub. L. 103–394, title V, § 501(d)(28), Oct. 22, 1994, 108 Stat. 4146.) Section 745(a) indicates that each account held by a customer in a separate capacity is to be considered a separate account. This prevents the offset of accounts held in different capacities. Subsection (b) indicates that a bank or another stockbroker that is a customer of a debtor is consid- ered to hold its customers accounts in separate capac- ities. Thus a bank or other stockbroker is not treated as a mutual fund for purposes of bulk investment. This protects unrelated customers of a bank or other stock- holder from having their accounts offset. Subsection (c) effects the same result with respect to a trust so that each beneficiary is treated as the cus- tomer of the debtor rather than the trust itself. This eliminates any doubt whether a trustee holds a per- xxxxx account in a separate capacity from his trustee’s account. The Internal Revenue Code of 1986, referred to in sub- sec. (c), is classified generally to Title 26, Internal Rev- enue Code. 1994—Subsec. (c). Pub. L. 103–394 substituted ‘‘Inter- nal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.)’’. 1984—Subsec. (a). Pub. L. 98–353 inserted ‘‘the debtor for’’ after ‘‘by’’.

Treatment of Accounts. (a) Accounts held by the debtor for a particu- lar customer in separate capacities shall be treated as accounts of separate customers. (b) If a stockbroker or a bank holds a cus- tomer net equity claim against the debtor that arose out of a transaction for a customer of such stockbroker or bank, each such customer of such stockbroker or bank shall be treated as a separate customer of the debtor. (c) Each trustee’s account specified as such on the debtor’s books, and supported by a trust deed filed with, and qualified as such by, the In- ternal Revenue Service, and under the Internal Revenue Code of 1986, shall be treated as a sepa- rate customer account for each beneficiary under such trustee account. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2613; Pub. L. 97–222, § 11, July 27, 1982, 96 Stat. 238; Pub. L. 98–353, title III, § 483, July 10, 1984, 98 Stat00 Xxxx. 383000; Pub. L. 103–394, title V, § 501(d)(28), Oct. 22, 1994, 108 Stat. 4146.) HISTORICAL AND REVISION NOTES SENATE REPORT NO. 95–989 Section 745(a) indicates that each account held by a customer in a separate capacity is to be considered a separate account. This prevents the offset of accounts held in different capacities. Subsection (b) indicates that a bank or another stockbroker that is a customer of a debtor is consid- ered to hold its customers accounts in separate capac- ities. Thus a bank or other stockbroker is not treated as a mutual fund for purposes of bulk investment. This protects unrelated customers of a bank or other stock- holder from having their accounts offset. Subsection (c) effects the same result with respect to a trust so that each beneficiary is treated as the cus- tomer of the debtor rather than the trust itself. This eliminates any doubt whether a trustee holds a per- xxxxx account in a separate capacity from his trustee’s account. REFERENCES IN TEXT The Internal Revenue Code of 1986, referred to in sub- sec. (c), is classified generally to Title 26, Internal Rev- enue Code. 1994—Subsec. (c). Pub. L. 103–394 substituted ‘‘Inter- nal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.)’’. 1984—Subsec. (a). Pub. L. 98–353 inserted ‘‘the debtor for’’ after ‘‘by’’.AMENDMENTS

Treatment of Accounts. (a) Accounts held by the debtor for a particu- lar customer in separate capacities shall be treated as accounts of separate customers. (b) If a stockbroker or a bank holds a cus- tomer net equity claim against the debtor that arose out of a transaction for a customer of such stockbroker or bank, each such customer of such stockbroker or bank shall be treated as a separate customer of the debtor. (c) Each trustee’s account specified as such on the debtor’s books, and supported by a trust deed filed with, and qualified as such by, the In- ternal Revenue Service, and under the Internal Revenue Code of 1986, shall be treated as a sepa- rate customer account for each beneficiary under such trustee account. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2613; Pub. L. 97–222, § 11, July 27, 1982, 96 Stat. 238; Pub. L. 98–353, title III, § 483, July 10, 1984, 98 Stat00 Xxxx. 383000; Pub. L. 103–394, title V, § 501(d)(28), Oct. 22, 1994, 108 Stat. 4146.) Section 745(a) indicates that each account held by a customer in a separate capacity is to be considered a separate account. This prevents the offset of accounts held in different capacities. Subsection (b) indicates that a bank or another stockbroker that is a customer of a debtor is consid- ered to hold its customers accounts in separate capac- ities. Thus a bank or other stockbroker is not treated as a mutual fund for purposes of bulk investment. This protects unrelated customers of a bank or other stock- holder from having their accounts offset. Subsection (c) effects the same result with respect to a trust so that each beneficiary is treated as the cus- tomer of the debtor rather than the trust itself. This eliminates any doubt whether a trustee holds a per- xxxxx account in a separate capacity from his trustee’s account. The Internal Revenue Code of 1986, referred to in sub- sec. (c), is classified generally to Title 26, Internal Rev- enue Code. 1994—Subsec. (c). Pub. L. 103–394 substituted ‘‘Inter- nal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.)’’. 1984—Subsec. (a). Pub. L. 98–353 inserted ‘‘the debtor for’’ after ‘‘by’’.

Treatment of Accounts. (a) Accounts held by the debtor for a particu- lar par- ticular customer in separate capacities shall be treated as accounts of separate customers. (b) If a stockbroker or a bank holds a cus- tomer net equity claim against the debtor that arose out of a transaction for a customer of such stockbroker or bank, each such customer of such stockbroker or bank shall be treated as a separate customer of the debtor. (c) Each trustee’s account specified as such on the debtor’s books, and supported by a trust deed filed with, and qualified as such by, the In- ternal Revenue Service, and under the Internal Revenue Code of 1986, shall be treated as a sepa- rate customer account for each beneficiary under such trustee account. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2613; Pub. L. 97–222, § 11, July 27, 1982, 96 Stat. 238; Pub. L. 98–353, title III, § 483, July 10, 1984, 98 Stat00 Xxxx. 383000; Pub. L. 103–394, title V, § 501(d)(28), Oct. 22, 1994, 108 Stat. 4146.) Section 745(a) indicates that each account held by a customer in a separate capacity is to be considered a separate account. This prevents the offset of accounts held in different capacities. Subsection (b) indicates that a bank or another stockbroker that is a customer of a debtor is consid- ered to hold its customers accounts in separate capac- ities. Thus a bank or other stockbroker is not treated as a mutual fund for purposes of bulk investment. This protects unrelated customers of a bank or other stock- holder from having their accounts offset. Subsection (c) effects the same result with respect to a trust so that each beneficiary is treated as the cus- tomer of the debtor rather than the trust itself. This eliminates any doubt whether a trustee holds a per- xxxxx account in a separate capacity from his trustee’s account. The Internal Revenue Code of 1986, referred to in sub- sec. (c), is classified generally to Title 26, Internal Rev- enue Code. 1994—Subsec. (c). Pub. L. 103–394 substituted ‘‘Inter- nal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.)’’. 1984—Subsec. (a). Pub. L. 98–353 inserted ‘‘the debtor for’’ after ‘‘by’’.