---
kind: "section"
citation: "11 U.S.C. § 749"
title: "11"
title_heading: "Bankruptcy"
number: "749"
heading: "Voidable transfers"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/11/749"
units:
  - "Chapter 7 — Liquidation"
  - "Subchapter III — Stockbroker Liquidation"
---

# §749. Voidable transfers

- (a) Except as otherwise provided in this section, any [transfer](/usc/11/101.md?p=54) of property that, but for such [transfer](/usc/11/101.md?p=54), would have been [customer property](/usc/11/741.md?p=4), may be avoided by the trustee, and such property shall be treated as [customer property](/usc/11/741.md?p=4), if and to the extent that the trustee avoids such [transfer](/usc/11/101.md?p=54) under section [544](/usc/11/544.md), [545](/usc/11/545.md), [547](/usc/11/547.md), [548](/usc/11/548.md), or [549](/usc/11/549.md) of this title. For the purpose of such sections, the property so transferred shall be deemed to have been property of the [debtor](/usc/11/101.md?p=13) and, if such [transfer](/usc/11/101.md?p=54) was made to a [customer](/usc/11/741.md?p=2) or for a [customer](/usc/11/741.md?p=2)’s benefit, such [customer](/usc/11/741.md?p=2) shall be deemed, for the purposes of this section, to have been a [creditor](/usc/11/101.md?p=10).
- (b) Notwithstanding sections [544](/usc/11/544.md), [545](/usc/11/545.md), [547](/usc/11/547.md), [548](/usc/11/548.md), and [549](/usc/11/549.md) of this title, the trustee may not avoid a [transfer](/usc/11/101.md?p=54) made before seven days after the order for relief if such [transfer](/usc/11/101.md?p=54) is approved by the [Commission](/usc/11/741.md?p=1) by rule or order, either before or after such [transfer](/usc/11/101.md?p=54), and if such [transfer](/usc/11/101.md?p=54) is—
  - (1) a [transfer](/usc/11/101.md?p=54) of a [securities](/usc/11/101.md?p=49) contract entered into or carried by or through the [debtor](/usc/11/101.md?p=13) on behalf of a [customer](/usc/11/741.md?p=2), and of any cash, [security](/usc/11/101.md?p=49), or other property margining or securing such [securities](/usc/11/101.md?p=49) contract; or
  - (2) the liquidation of a [securities](/usc/11/101.md?p=49) contract entered into or carried by or through the [debtor](/usc/11/101.md?p=13) on behalf of a [customer](/usc/11/741.md?p=2).

## Source credit

(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2614; Pub. L. 97–222, § 14, July 27, 1982, 96 Stat. 238; Pub. L. 111–16, § 2(8), May 7, 2009, 123 Stat. 1607.)

## Notes

### Historical and Revision Notes

### senate report no. 95–989

Section 749 indicates that if the trustee avoids a transfer, property recovered is customer property to any extent it would have been customer property but for the transfer. The section clarifies that a customer who receives a transfer of property of the debtor is a creditor and that property in a customer’s account is property of a creditor for purposes of the avoiding powers.

### Editorial Notes

### Amendments

2009—Subsec. (b). Pub. L. 111–16 substituted “seven days” for “five days” in introductory provisions.

1982—Pub. L. 97–222 substituted “(a) Except as otherwise provided in this section, any” for “Any”, and “but” for “except”, inserted “such property”, substituted “or 549” for “549, or 724(a)”, and added subsec. (b).

### Statutory Notes and Related Subsidiaries

### Effective Date of 2009 Amendment

Amendment by Pub. L. 111–16 effective Dec. 1, 2009, see section 7 of Pub. L. 111–16, set out as a note under section 109 of this title.