---
kind: "range"
citation: "11 U.S.C. §§ 555–557"
title: "11"
from: "555"
to: "557"
count: 3
release: "119-102"
url: "https://uscodex.org/usc/11/555..557"
---

# §555. Contractual right to liquidate, terminate, or accelerate a securities contract


The exercise of a contractual right of a [stockbroker](/usc/11/101.md?p=53A), [financial institution](/usc/11/101.md?p=22), [financial participant](/usc/11/101.md?p=22A), or [securities clearing agency](/usc/11/101.md?p=48) to cause the liquidation, termination, or acceleration of a [securities](/usc/11/101.md?p=49) contract, as defined in [section 741 of this title](/usc/11/741.md), because of a condition of the kind specified in [section 365(e)(1) of this title](/usc/11/365.md?p=e-1) shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title unless such order is authorized under the provisions of the [Securities](/usc/11/101.md?p=49) Investor Protection Act of 1970 or any statute administered by the [Securities](/usc/11/101.md?p=49) and Exchange Commission. As used in this section, the term “contractual right” includes a right set forth in a rule or bylaw of a derivatives clearing organization (as defined in the Commodity Exchange Act), a multilateral clearing organization (as defined in the Federal Deposit Insurance [Corporation](/usc/11/101.md?p=9) Improvement Act of 1991), a national [securities](/usc/11/101.md?p=49) exchange, a national [securities](/usc/11/101.md?p=49) association, a [securities clearing agency](/usc/11/101.md?p=48), a contract market designated under the Commodity Exchange Act, a derivatives transaction execution facility registered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity Exchange Act), or in a resolution of the governing board thereof, and a right, whether or not in writing, arising under common law, under law merchant, or by reason of normal business practice.


# §556. Contractual right to liquidate, terminate, or accelerate a commodities contract or forward contract


The contractual right of a [commodity broker](/usc/11/101.md?p=6), [financial participant](/usc/11/101.md?p=22A), or [forward contract merchant](/usc/11/101.md?p=26) to cause the liquidation, termination, or acceleration of a commodity contract, as defined in [section 761 of this title](/usc/11/761.md), or [forward contract](/usc/11/101.md?p=25) because of a condition of the kind specified in [section 365(e)(1) of this title](/usc/11/365.md?p=e-1), and the right to a variation or maintenance [margin payment](/usc/11/101.md?p=38) received from a [trustee](/usc/11/1502.md?p=6) with respect to open commodity contracts or [forward contracts](/usc/11/101.md?p=25), shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by the order of a court in any proceeding under this title. As used in this section, the term “contractual right” includes a right set forth in a rule or bylaw of a derivatives clearing organization (as defined in the Commodity Exchange Act), a multilateral clearing organization (as defined in the Federal Deposit Insurance [Corporation](/usc/11/101.md?p=9) Improvement Act of 1991), a national [securities](/usc/11/101.md?p=49) exchange, a national [securities](/usc/11/101.md?p=49) association, a [securities clearing agency](/usc/11/101.md?p=48), a contract market designated under the Commodity Exchange Act, a derivatives transaction execution facility registered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity Exchange Act) or in a resolution of the governing board thereof and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal business practice.


# §557. Expedited determination of interests in, and abandonment or other disposition of grain assets

- (a) This section applies only in a case concerning a [debtor](/usc/11/101.md?p=13) that owns or operates a [grain storage facility](#b-2) and only with respect to [grain](#b-1) and the proceeds of [grain](#b-1). This section does not affect the application of any other section of this title to property other than [grain](#b-1) and proceeds of [grain](#b-1).
- (b) In this section—
  - (1) “grain” means wheat, corn, flaxseed, grain sorghum, barley, oats, rye, soybeans, other dry edible beans, or rice;
  - (2) “grain storage facility” means a site or physical structure regularly used to store [grain](#b-1) for [producers](#b-3), or to store [grain](#b-1) acquired from [producers](#b-3) for resale; and
  - (3) “producer” means an [entity](/usc/11/101.md?p=15) which engages in the growing of [grain](#b-1).
- (c)
  - (1) Notwithstanding sections [362](/usc/11/362.md), [363](/usc/11/363.md), [365](/usc/11/365.md), and [554](/usc/11/554.md) of this title, on the court’s own motion the court may, and on the request of the [trustee](/usc/11/1502.md?p=6) or an [entity](/usc/11/101.md?p=15) that [claims](/usc/11/101.md?p=5) an interest in [grain](#b-1) or the proceeds of [grain](#b-1) the court shall, expedite the procedures for the determination of interests in and the disposition of [grain](#b-1) and the proceeds of [grain](#b-1), by shortening to the greatest extent feasible such time periods as are otherwise applicable for such procedures and by establishing, by order, a timetable having a duration of not to exceed 120 days for the completion of the applicable procedure specified in [subsection (d)](#d) of this section. Such time periods and such timetable may be modified by the court, for cause, in accordance with [subsection (f)](#f) of this section.
  - (2) The court shall determine the extent to which such time periods shall be shortened, based upon—
    - (A) any need of an [entity](/usc/11/101.md?p=15) claiming an interest in such [grain](#b-1) or the proceeds of [grain](#b-1) for a prompt determination of such interest;
    - (B) any need of such [entity](/usc/11/101.md?p=15) for a prompt disposition of such [grain](#b-1);
    - (C) the market for such [grain](#b-1);
    - (D) the conditions under which such [grain](#b-1) is stored;
    - (E) the costs of continued storage or disposition of such [grain](#b-1);
    - (F) the orderly administration of the estate;
    - (G) the appropriate opportunity for an [entity](/usc/11/101.md?p=15) to assert an interest in such [grain](#b-1); and
    - (H) such other considerations as are relevant to the need to expedite such procedures in the case.
- (d) The procedures that may be expedited under [subsection (c)](#c) of this section include—
  - (1) the filing of and response to—
    - (A) a [claim](/usc/11/101.md?p=5) of ownership;
    - (B) a proof of [claim](/usc/11/101.md?p=5);
    - (C) a request for abandonment;
    - (D) a request for relief from the stay of action against property under [section 362(a) of this title](/usc/11/362.md?p=a);
    - (E) a request for determination of secured status;
    - (F) a request for determination of whether such [grain](#b-1) or the proceeds of [grain](#b-1)—
      - (i) is property of the estate;
      - (ii) must be turned over to the estate; or
      - (iii) may be used, sold, or leased; and
    - (G) any other request for determination of an interest in such [grain](#b-1) or the proceeds of [grain](#b-1);
  - (2) the disposition of such [grain](#b-1) or the proceeds of [grain](#b-1), before or after determination of interests in such [grain](#b-1) or the proceeds of [grain](#b-1), by way of—
    - (A) sale of such [grain](#b-1);
    - (B) abandonment;
    - (C) distribution; or
    - (D) such other method as is equitable in the case;
  - (3) subject to sections [701](/usc/11/701.md), [702](/usc/11/702.md), [703](/usc/11/703.md), [1104](/usc/11/1104.md), [1183](/usc/11/1183.md), [1202](/usc/11/1202.md), and [1302](/usc/11/1302.md) of this title, the appointment of a [trustee](/usc/11/1502.md?p=6) or examiner and the retention and compensation of any professional [person](/usc/11/101.md?p=41) required to assist with respect to matters relevant to the determination of interests in or disposition of such [grain](#b-1) or the proceeds of [grain](#b-1); and
  - (4) the determination of any dispute concerning a matter specified in paragraph (1), (2), or (3) of this subsection.
- (e)
  - (1) Any [governmental unit](/usc/11/101.md?p=27) that has regulatory jurisdiction over the operation or liquidation of the [debtor](/usc/11/101.md?p=13) or the [debtor](/usc/11/101.md?p=13)’s business shall be given notice of any request made or order entered under [subsection (c)](#c) of this section.
  - (2) Any such [governmental unit](/usc/11/101.md?p=27) may raise, and may appear and be heard on, any issue relating to [grain](#b-1) or the proceeds of [grain](#b-1) in a case in which a request is made, or an order is entered, under [subsection (c)](#c) of this section.
  - (3) The [trustee](/usc/11/1502.md?p=6) shall consult with such [governmental unit](/usc/11/101.md?p=27) before taking any action relating to the disposition of [grain](#b-1) in the possession, custody, or control of the [debtor](/usc/11/101.md?p=13) or the estate.
- (f) The court may extend the period for final disposition of [grain](#b-1) or the proceeds of [grain](#b-1) under this section beyond 120 days if the court finds that—
  - (1) the interests of justice so require in light of the complexity of the case; and
  - (2) the interests of those claimants entitled to distribution of [grain](#b-1) or the proceeds of [grain](#b-1) will not be materially injured by such additional delay.
- (g) Unless an order establishing an expedited procedure under [subsection (c)](#c) of this section, or determining any interest in or approving any disposition of [grain](#b-1) or the proceeds of [grain](#b-1), is stayed pending appeal—
  - (1) the reversal or modification of such order on appeal does not affect the validity of any procedure, determination, or disposition that occurs before such reversal or modification, whether or not any [entity](/usc/11/101.md?p=15) knew of the pendency of the appeal; and
  - (2) neither the court nor the [trustee](/usc/11/1502.md?p=6) may delay, due to the appeal of such order, any proceeding in the case in which such order is issued.
- (h)
  - (1) The [trustee](/usc/11/1502.md?p=6) may recover from [grain](#b-1) and the proceeds of [grain](#b-1) the reasonable and necessary costs and expenses allowable under [section 503(b) of this title](/usc/11/503.md?p=b) attributable to preserving or disposing of [grain](#b-1) or the proceeds of [grain](#b-1), but may not recover from such [grain](#b-1) or the proceeds of [grain](#b-1) any other costs or expenses.
  - (2) Notwithstanding [section 326(a) of this title](/usc/11/326.md?p=a), the dollar amounts of money specified in such section include the value, as of the date of disposition, of any [grain](#b-1) that the [trustee](/usc/11/1502.md?p=6) distributes in kind.
- (i) In all cases where the quantity of a specific type of [grain](#b-1) held by a [debtor](/usc/11/101.md?p=13) operating a [grain storage facility](#b-2) exceeds ten thousand bushels, such [grain](#b-1) shall be sold by the [trustee](/usc/11/1502.md?p=6) and the assets thereof distributed in accordance with the provisions of this section.