In this subchapter—
(1) "Commission"
means Securities and Exchange Commission;
(2) "customer"
includes—
(A)
entity with whom a
person deals as principal or agent
and that has a
claim against such
person on account of a
security
received, acquired, or held by such
person in the ordinary course of such
person's business as a
stockbroker, from or for the
securities account or accounts
of such
entity—
(i) for safekeeping;
(ii) with a view
to sale;
(iii) to cover a
consummated sale;
(iv) pursuant to
a purchase;
(v) as collateral
under a
security agreement; or
(vi) for the purpose
of effecting registration of
transfer;
and
(B)
entity that has a
claim against a
person arising out of—
(i) a sale or conversion
of a
security
received, acquired, or held as specified in subparagraph
(A) of this paragraph; or
(ii) a deposit of
cash, a
security,
or other property with such
person
for the purpose of purchasing or selling a
security;
(3) "customer name
security" means
security—
(A) held for the account
of a customer on the date of the filing of the petition
by or on behalf of the
debtor;
(B) registered in
such customer's name on such date or in the process
of being so registered under instructions from the
debtor; and
(C) not in a form
transferable by delivery on such date;
(4) "customer property"
means cash,
security,
or other property, and proceeds of such cash,
security, or property, received,
acquired, or held by or for the account of the
debtor, from or for the
securities account of a
customer—
(A) including—
(i) property that
was unlawfully converted from and that is the lawful property of the estate;
(ii) a
security
held as property of the
debtor
to the extent such
security is necessary to
meet a net equity
claim of a
customer
based on a
security
of the same class and series of an issuer;
(iii) resources provided
through the use or realization of a
customer's debit
cash balance or a debit item includible in the Formula for Determination
of Reserve Requirement for Brokers and Dealers as promulgated by the
Commission under the Securities Exchange Act of 1934;
and
(iv) other property
of the
debtor that any applicable
law, rule, or regulation requires to be set aside or held for the benefit
of a customer, unless including such property as
customer property would not significantly increase
customer property; but
(B) not including—
(i) a
customer name security delivered to or reclaimed by
a customer under section
751 of
this title; or
(ii) property to
the extent that a customer does not have a
claim against the debtor based on
such property;
(5) "margin payment"
means payment or deposit of cash, a
security, or other property,
that is commonly known to the
securities
trade as original margin, initial margin, maintenance
margin, or variation
margin, or as a mark-to-market payment, or that secures an obligation of
a participant in a
securities clearing
agency;
(6) "net equity"
means, with respect to all accounts of a
customer that
such customer has in the same capacity—
(A)(i) aggregate
dollar balance that would remain in such accounts after the liquidation,
by sale or purchase, at the time of the filing of the petition, of all
securities positions in all such
accounts, except any
customer name securities of such
customer; minus
(ii) any
claim of the
debtor against such
customer in such capacity that would have been owing
immediately after such liquidation; plus
(B) any payment by
such customer to the Trustee, within 60 days after
notice under section
342of this title,
of any business related
claim of
the
debtor against such
customer in such capacity;
(7) "securities contract"—
(A)
means—
(i)
a contract for the purchase, sale, or loan
of a
security,
including an option for the purchase or sale
of a security, a certificate
of deposit, a mortgage loan, or any interest in a mortgage
loan, or
a group or index of securities,
certificates of deposit, or mortgage loans or interests
therein (including any
interest therein or based on the value thereof), or
option on any of the foregoing, including an option
to purchase or sell any such
security,
certificate of deposit, mortgage loan, interest, group or index, or option,
and including any repurchase or reverse repurchase transaction on any such
security,
certificate of deposit, mortgage loan, interest, group or index, or option (whether or not such repurchase or reverse repurchase transaction is a "repurchase agreement", as defined in section
101);
(ii)
any option entered into on a national securities exchange relating to foreign
currencies;
, or
(iii)
the guarantee (including by novation)
of any settlement of
cash or securities by or to any
securities clearing agency;
of a settlement of cash, securities,
certificates of deposit, mortgage loans or interests therein, group or index
of securities, or mortgage loans or interests therein (including any interest
therein or based on the value thereof), or option on any of the foregoing,
including an option to purchase or sell any such
security,
certificate of deposit, mortgage loan, interest, group or index, or option (whether or not such settlement is in connection with any agreement or transaction referred to in clauses (i) through (xi));
(iv)
any margin loan;
(v) any extension of credit for the clearance or settlement of securities transactions;
(vi) any loan transaction coupled with a securities collar transaction, any prepaid forward securities transaction, or any total return swap transaction coupled with a securities sale transaction;
(v)
(vii)
any other agreement or transaction that is similar to an agreement or transaction
referred to in this subparagraph;
(vi)(viii) any combination of the agreements or transactions referred to in this subparagraph;
(vii)(ix) any option to enter into any agreement or transaction referred to in this
subparagraph;
(viii)(x) a master agreement that provides for an agreement or transaction referred
to in clause (i),
(ii),
(iii),
(iv),
(v),
(vi), or
(vii),
(viii), or
(ix),
together with
all supplements to any such master agreement, without regard to whether
the master agreement provides for an agreement or transaction that is not
a securities contract
under this subparagraph, except that such master agreement shall be considered
to be a securities contract
under this subparagraph only with respect to each agreement or transaction
under such master agreement that is referred to in clause
(i),
(ii),
(iii),
(iv),
(v),
(vi), or
(vii),
(viii), or
(ix); or
(ix)(xi) any
security
agreement or arrangement or other credit enhancement related
to any agreement or transaction referred to in this subparagraph, including
any guarantee or reimbursement obligation by or to a
stockbroker,
securities
clearing agency,
financial institution,
or
financial
participant in connection with any agreement or transaction referred
to in this subparagraph, but not to exceed the damages in connection with
any such agreement or transaction, measured in accordance with section
562;
and
(B)
does not include any purchase, sale, or repurchase obligation under a participation
in a commercial mortgage loan;
(8) "settlement
payment" means a preliminary
settlement
payment, a partial
settlement
payment, an interim
settlement
payment, a
settlement payment
on account, a final
settlement payment,
or any other similar payment commonly used in the
securities trade; and
(9) "SIPC" means
Securities Investor Protection Corporation.
(Pub. L. 95-598,
Nov. 6, 1978, 92 Stat. 2611; Pub. L. 97-222, § 8, July 27, 1982,
96 Stat. 237; Pub. L. 98-353, title III, § 482, July 10, 1984, 98
Stat. 382; Pub. L. 103-394, title V, § 501(d)(25), Oct. 22, 1994,
108 Stat. 4146; Pub. L.
109-8, Title
IX, § 907(a)(2), April 20,
2005, 119 Stat. 173; ; Pub. L.
109–390, § 5(a)(3), December 12, 2006, 120 Stat. 2700.)
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