San Marino Bankruptcy Attorney, Bankruptcy Lawyer, Bankruptcy Code 11 USC Section 562

TITLE 11 - BANKRUPTCY
CHAPTER 5 - CREDITORS, THE DEBTOR, AND THE ESTATE
    SUBCHAPTER III - THE ESTATE

-HEAD-
    Sec. 562. Timing of damage measurement in connection with swap
      agreements, securities contracts, forward contracts, commodity
      contracts, repurchase agreements, and master netting agreements

-STATUTE-
      (a) If the trustee rejects a swap agreement, securities contract
    (as defined in section 741), forward contract, commodity contract
    (as defined in section 761), repurchase agreement, or master
    netting agreement pursuant to section 365(a), or if a forward
    contract merchant, stockbroker, financial institution, securities
    clearing agency, repo participant, financial participant, master
    netting agreement participant, or swap participant liquidates,
    terminates, or accelerates such contract or agreement, damages
    shall be measured as of the earlier of - 
        (1) the date of such rejection; or
        (2) the date or dates of such liquidation, termination, or
      acceleration.

      (b) If there are not any commercially reasonable determinants of
    value as of any date referred to in paragraph (1) or (2) of
    subsection (a), damages shall be measured as of the earliest
    subsequent date or dates on which there are commercially reasonable
    determinants of value.
      (c) For the purposes of subsection (b), if damages are not
    measured as of the date or dates of rejection, liquidation,
    termination, or acceleration, and the forward contract merchant,
    stockbroker, financial institution, securities clearing agency,
    repo participant, financial participant, master netting agreement
    participant, or swap participant or the trustee objects to the
    timing of the measurement of damages - 
        (1) the trustee, in the case of an objection by a forward
      contract merchant, stockbroker, financial institution, securities
      clearing agency, repo participant, financial participant, master
      netting agreement participant, or swap participant; or
        (2) the forward contract merchant, stockbroker, financial
      institution, securities clearing agency, repo participant,
      financial participant, master netting agreement participant, or
      swap participant, in the case of an objection by the trustee,

    has the burden of proving that there were no commercially
    reasonable determinants of value as of such date or dates.

-SOURCE-
    (Added Pub. L. 109-8, title IX, Sec. 910(a)(1), Apr. 20, 2005, 119
    Stat. 184.)


                              EFFECTIVE DATE                          
      Section effective 180 days after Apr. 20, 2005, and not
    applicable with respect to cases commenced under this title before
    such effective date, except as otherwise provided, see section 1501
    of Pub. L. 109-8, set out as an Effective Date of 2005 Amendment
    note under section 101 of this title.

-End-
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