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USC Title 11, Bankruptcy Code, Chapter 1 – General Provisions Section 101 Definitions

Section 101 of the Bankruptcy Code contains definitions of key bankruptcy terms. Definitions of these terms are extremely important. If a term is not defined it creates ambiguity when courts make decisions in cases and then the terms must be defined in addition to making a decision on the underlying issue.

In this title the following definitions shall apply:

(1) The term “accountant” means accountant authorized under applicable law to practice public
accounting, and includes professional accounting association, corporation, or partnership, if so
authorized.

(2) The term “affiliate” means—
(A)entity that directly or indirectly owns, controls, or holds with power to vote, 20
percent or more of the outstanding voting securities of the debtor, other than an entity
that holds such securities—
(i)in a fiduciary or agency capacity without sole discretionary power to vote such
securities; or
(ii)solely to secure a debt, if such entity has not in fact exercised such power to
vote;

(B) corporation 20 percent or more of whose outstanding voting securities are directly or
indirectly owned, controlled, or held with power to vote, by the debtor, or by an entity
that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more
of the outstanding voting securities of the debtor, other than an entity that holds such
securities—
(i)in a fiduciary or agency capacity without sole discretionary power to vote such
securities; or
(ii)solely to secure a debt, if such entity has not in fact exercised such power to
vote;
(C) person whose business is operated under a lease or operating agreement by a debtor,
or person substantially all of whose property is operated under an operating agreement
with the debtor; or

(D) entity that operates the business or substantially all of the property of the debtor
under a lease or operating agreement.

(3) The term “assisted person” means any person whose debts consist primarily of consumer
debts and the value of whose nonexempt property is less than $150,000.

(4) The term “attorney” means attorney, professional law association, corporation, or
partnership, authorized under applicable law to practice law.

(4A) The term “bankruptcy assistance” means any goods or services sold or otherwise provided
to an assisted person with the express or implied purpose of providing information, advice,
counsel, document preparation, or filing, or attendance at a creditors’ meeting or appearing in a
case or proceeding on behalf of another or providing legal representation with respect to a case
or proceeding under this title.

(5) The term “claim” means—
(A) right to payment, whether or not such right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal,
equitable, secured, or unsecured; or

(B) right to an equitable remedy for breach of performance if such breach gives rise to a
right to payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured, or
unsecured.

(6) The term “commodity broker” means futures commission merchant, foreign futures
commission merchant, clearing organization, leverage transaction merchant, or commodity
options dealer, as defined in section 761 of this title, with respect to which there is a customer, as
defined in section 761 of this title.

(7) The term “community claim” means claim that arose before the commencement of the case
concerning the debtor for which property of the kind specified in section 541(a)(2) of this title is
liable, whether or not there is any such property at the time of the commencement of the case.

(7A) The term “commercial fishing operation” means—
(A)the catching or harvesting of fish, shrimp, lobsters, urchins, seaweed, shellfish, or
other aquatic species or products of such species; or

(B)for purposes of section 109 and chapter 12section 109 and chapter 12, aquaculture
activities consisting of raising for market any species or product described in
subparagraph (A).
(7B) The term “commercial fishing vessel” means a vessel used by a family fisherman to carry
out a commercial fishing operation.

(8) The term “consumer debt” means debt incurred by an individual primarily for a personal,
family, or household purpose.

(9) The term “corporation”—
(A) includes—
(i)association having a power or privilege that a private corporation, but not an
individual or a partnership, possesses;
(ii)partnership association organized under a law that makes only the capital
subscribed responsible for the debts of such association;
(iii) joint-stock company;
(iv) unincorporated company or association; or
(v) business trust; but

(B)does not include limited partnership.

(10) The term “creditor” means—
(A) entity that has a claim against the debtor that arose at the time of or before the order
for relief concerning the debtor;

(B) entity that has a claim against the estate of a kind specified in section 348(d), 502(f),
502(g), 502(h) or 502(i) of this title; or

(C) entity that has a community claim.

(10A) The term “current monthly income”—
(A) means the average monthly income from all sources that the debtor receives (or in a
joint case the debtor and the debtor’s spouse receive) without regard to whether such
income is taxable income, derived during the 6-month period ending on—
(i) the last day of the calendar month immediately preceding the date of the
commencement of the case if the debtor files the schedule of current income
required by section 521(a)(1)(B)(ii); or
(ii) the date on which current income is determined by the court for purposes of
this title if the debtor does not file the schedule of current income required by
section 521(a)(1)(B)(ii); and

(B) includes any amount paid by any entity other than the debtor (or in a joint case the
debtor and the debtor’s spouse), on a regular basis for the household expenses of the
debtor or the debtor’s dependents (and in a joint case the debtor’s spouse if not otherwise
a dependent), but excludes benefits received under the Social Security Act, payments to
victims of war crimes or crimes against humanity on account of their status as victims of
such crimes, and payments to victims of international terrorism (as defined in section
2331 of title 18) or domestic terrorism (as defined in section 2331 of title 18) on account
of their status as victims of such terrorism.

(11) The term “custodian” means—
(A) receiver or trustee of any of the property of the debtor, appointed in a case or
proceeding not under this title;

(B) assignee under a general assignment for the benefit of the debtor’s creditors; or

(C) trustee, receiver, or agent under applicable law, or under a contract, that is appointed
or authorized to take charge of property of the debtor for the purpose of enforcing a lien
against such property, or for the purpose of general administration of such property for
the benefit of the debtor’s creditors.

(12) The term “debt” means liability on a claim.

(12A) The term “debt relief agency” means any person who provides any bankruptcy assistance
to an assisted person in return for the payment of money or other valuable consideration, or who
is a bankruptcy petition preparer under section 110, but does not include—
(A) any person who is an officer, director, employee, or agent of a person who provides
such assistance or of the bankruptcy petition preparer;

(B) a nonprofit organization that is exempt from taxation under section 501(c)(3) of the
Internal Revenue Code of 1986;

(C) a creditor of such assisted person, to the extent that the creditor is assisting such
assisted person to restructure any debt owed by such assisted person to the creditor;

(D) a depository institution (as defined in section 3 of the Federal Deposit Insurance Act)
or any Federal credit union or State credit union (as those terms are defined in section
101 of the Federal Credit Union Act), or any affiliate or subsidiary of such depository
institution or credit union; or

(E) an author, publisher, distributor, or seller of works subject to copyright protection
under title 17, when acting in such capacity.

(13) The term “debtor” means person or municipality concerning which a case under this title
has been commenced.

(13A) The term “debtor’s principal residence”—
(A) means a residential structure if used as the principal residence by the debtor,
including incidental property, without regard to whether that structure is attached to
real property; and

(B) includes an individual condominium or cooperative unit, a mobile or manufactured
home, or trailer if used as the principal residence by the debtor.

(14) The term “disinterested person” means a person that—
(A) is not a creditor, an equity security holder, or an insider;

(B) is not and was not, within 2 years before the date of the filing of the petition, a
director, officer, or employee of the debtor; and

(C) does not have an interest materially adverse to the interest of the estate or of any class
of creditors or equity security holders, by reason of any direct or indirect relationship
to, connection with, or interest in, the debtor, or for any other reason.

(14A) The term “domestic support obligation” means a debt that accrues before, on, or after the
date of the order for relief in a case under this title, including interest that accrues on that debt as
provided under applicable nonbankruptcy law notwithstanding any other provision of this title,
that is—
(A) owed to or recoverable by—
(i) a spouse, former spouse, or child of the debtor or such child’s parent, legal
guardian, or responsible relative; or

(ii) a governmental unit;

(B) in the nature of alimony, maintenance, or support (including assistance provided by a
governmental unit) of such spouse, former spouse, or child of the debtor or such child’s
parent, without regard to whether such debt is expressly so designated;

(C) established or subject to establishment before, on, or after the date of the order for
relief in a case under this title, by reason of applicable provisions of—
(i) a separation agreement, divorce decree, or property settlement agreement;

(ii) an order of a court of record; or

(iii) a determination made in accordance with applicable nonbankruptcy law by a
governmental unit; and

(D) not assigned to a nongovernmental entity, unless that obligation is assigned
voluntarily by the spouse, former spouse, child of the debtor, or such child’s parent,
legal guardian, or responsible relative for the purpose of collecting the debt.

(15) The term “entity” includes person, estate, trust, governmental unit, and United States
trustee.

(16) The term “equity security” means—
(A) share in a corporation, whether or not transferable or denominated “stock”, or similar
security;

(B) interest of a limited partner in a limited partnership; or

(C) warrant or right, other than a right to convert, to purchase, sell, or subscribe to a
share, security, or interest of a kind specified in subparagraph (A) or (B) of this
paragraph.

(17) The term “equity security holder” means holder of an equity security of the debtor.

(18) The term “family farmer” means—
(A) individual or individual and spouse engaged in a farming operation whose aggregate
debts do not exceed $3,237,000 and not less than 50 percent of whose aggregate
noncontingent, liquidated debts (excluding a debt for the principal residence of such
individual or such individual and spouse unless such debt arises out of a farming
operation), on the date the case is filed, arise out of a farming operation owned or
operated by such individual or such individual and spouse, and such individual or such
individual and spouse receive from such farming operation more than 50 percent of such
individual’s or such individual and spouse’s gross income for—
(i) the taxable year preceding; or
(ii) each of the 2d and 3d taxable years preceding;
the taxable year in which the case concerning such individual or such individual
and spouse was filed; or

(B) corporation or partnership in which more than 50 percent of the outstanding stock or
equity is held by one family, or by one family and the relatives of the members of such
family, and such family or such relatives conduct the farming operation, and
(i) more than 80 percent of the value of its assets consists of assets related to the
farming operation;
(ii) its aggregate debts do not exceed $3,237,000 and not less than 50 percent of
its aggregate noncontingent, liquidated debts (excluding a debt for one dwelling
which is owned by such corporation or partnership and which a shareholder or
partner maintains as a principal residence, unless such debt arises out of a farming
operation), on the date the case is filed, arise out of the farming operation owned
or operated by such corporation or such partnership; and
(iii) if such corporation issues stock, such stock is not publicly traded.

(19) The term “family farmer with regular annual income” means family farmer whose annual
income is sufficiently stable and regular to enable such family farmer to make payments under a
plan under chapter 12 of this title.

(19A) The term “family fisherman” means—
(A) an individual or individual and spouse engaged in a commercial fishing operation—
(i) whose aggregate debts do not exceed $1,500,000 and not less than 80 percent
of whose aggregate noncontingent, liquidated debts (excluding a debt for the
principal residence of such individual or such individual and spouse, unless such
debt arises out of a commercial fishing operation), on the date the case is filed,
arise out of a commercial fishing operation owned or operated by such individual
or such individual and spouse; and

(ii) who receive from such commercial fishing operation more than 50 percent of
such individual’s or such individual’s and spouse’s gross income for the taxable
year preceding the taxable year in which the case concerning such individual or
such individual and spouse was filed; or

(B) a corporation or partnership—
(i) in which more than 50 percent of the outstanding stock or equity is held by—
(I)1 family that conducts the commercial fishing operation; or
(II)1 family and the relatives of the members of such family, and such
family or such relatives conduct the commercial fishing operation; and

(ii)

(I) more than 80 percent of the value of its assets consists of assets related
to the commercial fishing operation;
(II) its aggregate debts do not exceed $1,500,000 and not less than 80
percent of its aggregate noncontingent, liquidated debts (excluding a debt
for 1 dwelling which is owned by such corporation or partnership and
which a shareholder or partner maintains as a principal residence, unless
such debt arises out of a commercial fishing operation), on the date the
case is filed, arise out of a commercial fishing operation owned or
operated by such corporation or such partnership; and
(III) if such corporation issues stock, such stock is not publicly traded.

(19B) The term “family fisherman with regular annual income” means a family fisherman whose
annual income is sufficiently stable and regular to enable such family fisherman to make
payments under a plan under chapter 12 of this title.

(20) The term “farmer” means (except when such term appears in the term “family farmer”)
person that received more than 80 percent of such person’s gross income during the taxable year
of such person immediately preceding the taxable year of such person during which the case
under this title concerning such person was commenced from a farming operation owned or
operated by such person.

(21) The term “farming operation” includes farming, tillage of the soil, dairy farming, ranching,
production or raising of crops, poultry, or livestock, and production of poultry or livestock
products in an unmanufactured state.

(21A) The term “farmout agreement” means a written agreement in which—
(A) the owner of a right to drill, produce, or operate liquid or gaseous hydrocarbons on
property agrees or has agreed to transfer or assign all or a part of such right to another
entity; and

(B) such other entity (either directly or through its agents or its assigns), as consideration,
agrees to perform drilling, reworking, recompleting, testing, or similar or related
operations, to develop or produce liquid or gaseous hydrocarbons on the property.

(21B) The term “Federal depository institutions regulatory agency” means—
(A) with respect to an insured depository institution (as defined in section 3(c)(2) of the
Federal Deposit Insurance Act) for which no conservator or receiver has been appointed,
the appropriate Federal banking agency (as defined in section 3(q) of such Act);

(B) with respect to an insured credit union (including an insured credit union for which
the National Credit Union Administration has been appointed conservator or liquidating
agent), the National Credit Union Administration;

(C) with respect to any insured depository institution for which the Resolution Trust
Corporation has been appointed conservator or receiver, the Resolution Trust
Corporation; and

(D) with respect to any insured depository institution for which the Federal Deposit
Insurance Corporation has been appointed conservator or receiver, the Federal Deposit
Insurance Corporation.

(22) The term “financial institution” means—
(A) a Federal reserve bank, or an entity that is a commercial or savings bank, industrial
savings bank, savings and loan association, trust company, federally-insured credit union,
or receiver, liquidating agent, or conservator for such entity and, when any such Federal
reserve bank, receiver, liquidating agent, conservator or entity is acting as agent or
custodian for a customer (whether or not a “customer”, as defined in section 741) in
connection with a securities contract (as defined in section 741) such customer; or

(B) in connection with a securities contract (as defined in section 741) an investment
company registered under the Investment Company Act of 1940.

(22A) The term “financial participant” means—
(A) an entity that, at the time it enters into a securities contract, commodity contract,
swap agreement, repurchase agreement, or forward contract, or at the time of the date of
the filing of the petition, has one or more agreements or transactions described in
paragraph (1), (2), (3), (4), (5), or (6) of section 561(a) with the debtor or any other entity
(other than an affiliate) of a total gross dollar value of not less than $1,000,000,000 in
notional or actual principal amount outstanding (aggregated across counterparties) at such
time or on any day during the 15-month period preceding the date of the filing of the
petition, or has gross mark-to-market positions of not less than $100,000,000 (aggregated
across counterparties) in one or more such agreements or transactions with the debtor or
any other entity (other than an affiliate) at such time or on any day during the 15-month
period preceding the date of the filing of the petition; or

(B) a clearing organization (as defined in section 402 of the Federal Deposit Insurance
Corporation Improvement Act of 1991).

(23) The term “foreign proceeding” means a collective judicial or administrative proceeding in a
foreign country, including an interim proceeding, under a law relating to insolvency or
adjustment of debt in which proceeding the assets and affairs of the debtor are subject to control
or supervision by a foreign court, for the purpose of reorganization or liquidation.

(24) The term “foreign representative” means a person or body, including a person or body
appointed on an interim basis, authorized in a foreign proceeding to administer the
reorganization or the liquidation of the debtor’s assets or affairs or to act as a representative of
such foreign proceeding.

(25) The term “forward contract” means—
(A) a contract (other than a commodity contract, as defined in section 761) for the
purchase, sale, or transfer of a commodity, as defined in section 761(8) of this title, or
any similar good, article, service, right, or interest which is presently or in the future
becomes the subject of dealing in the forward contract trade, or product or byproduct
thereof, with a maturity date more than two days after the date the contract is entered
into, including, but not limited to, a repurchase or reverse repurchase transaction
(whether or not such repurchase or reverse repurchase transaction is a “repurchase
agreement”, as defined in this section) [1] consignment, lease, swap, hedge transaction,
deposit, loan, option, allocated transaction, unallocated transaction, or any other similar
agreement;

(B) any combination of agreements or transactions referred to in subparagraphs (A) and
(C);

(C) any option to enter into an agreement or transaction referred to in subparagraph (A)
or (B);

(D) a master agreement that provides for an agreement or transaction referred to in
subparagraph (A), (B), or (C), together with all supplements to any such master
agreement, without regard to whether such master agreement provides for an agreement
or transaction that is not a forward contract under this paragraph, except that such master
agreement shall be considered to be a forward contract under this paragraph only with
respect to each agreement or transaction under such master agreement that is referred to
in subparagraph (A), (B), or (C); or

(E) any security agreement or arrangement, or other credit enhancement related to any
agreement or transaction referred to in subparagraph (A), (B), (C), or (D), including any
guarantee or reimbursement obligation by or to a forward contract merchant or financial
participant in connection with any agreement or transaction referred to in any such
subparagraph, but not to exceed the damages in connection with any such agreement or
transaction, measured in accordance with section 562.

(26) The term “forward contract merchant” means a Federal reserve bank, or an entity the
business of which consists in whole or in part of entering into forward contracts as or with
merchants in a commodity (as defined in section 761) or any similar good, article, service, right,

or interest which is presently or in the future becomes the subject of dealing in the forward
contract trade.

(27) The term “governmental unit” means United States; State; Commonwealth; District;
Territory; municipality; foreign state; department, agency, or instrumentality of the United States
(but not a United States trustee while serving as a trustee in a case under this title), a State, a
Commonwealth, a District, a Territory, a municipality, or a foreign state; or other foreign or
domestic government.

(27A) The term “health care business”—
(A) means any public or private entity (without regard to whether that entity is organized
for profit or not for profit) that is primarily engaged in offering to the general public
facilities and services for—
(i) the diagnosis or treatment of injury, deformity, or disease; and
(ii) surgical, drug treatment, psychiatric, or obstetric care; and

(B) includes—
(i) any—
(I) general or specialized hospital;
(II) ancillary ambulatory, emergency, or surgical treatment facility;
(III) hospice;
(IV) home health agency; and
(V) other health care institution that is similar to an entity referred to in
subclause (I), (II), (III), or (IV); and
(ii) any long-term care facility, including any—
(I) skilled nursing facility;
(II) intermediate care facility;
(III) assisted living facility;
(IV) home for the aged;
(V) domiciliary care facility; and
(VI) health care institution that is related to a facility referred to in
subclause (I), (II), (III), (IV), or (V), if that institution is primarily engaged
in offering room, board, laundry, or personal assistance with activities of
daily living and incidentals to activities of daily living.

(27B) The term “incidental property” means, with respect to a debtor’s principal residence—
(A) property commonly conveyed with a principal residence in the area where the real
property is located;
(B) all easements, rights, appurtenances, fixtures, rents, royalties, mineral rights, oil or
gas rights or profits, water rights, escrow funds, or insurance proceeds; and
(C) all replacements or additions.

(28) The term “indenture” means mortgage, deed of trust, or indenture, under which there is
outstanding a security, other than a voting-trust certificate, constituting a claim against the
debtor, a claim secured by a lien on any of the debtor’s property, or an equity security of the
debtor.

(29) The term “indenture trustee” means trustee under an indenture.

(30) The term “individual with regular income” means individual whose income is sufficiently
stable and regular to enable such individual to make payments under a plan under chapter 13 of
this title, other than a stockbroker or a commodity broker.

(31) The term “insider” includes—
(A) if the debtor is an individual—
(i) relative of the debtor or of a general partner of the debtor;
(ii) partnership in which the debtor is a general partner;
(iii) general partner of the debtor; or
(iv) corporation of which the debtor is a director, officer, or person in control;

(B) if the debtor is a corporation—
(i) director of the debtor;
(ii) officer of the debtor;
(iii) person in control of the debtor;
(iv) partnership in which the debtor is a general partner;
(v) general partner of the debtor; or
(vi) relative of a general partner, director, officer, or person in control of the
debtor;

(C) if the debtor is a partnership—
(i) general partner in the debtor;
(ii) relative of a general partner in, general partner of, or person in control of the
debtor;
(iii) partnership in which the debtor is a general partner;
(iv) general partner of the debtor; or
(v) person in control of the debtor;

(E) if the debtor is a municipality, elected official of the debtor or relative of an elected
official of the debtor;

(E) affiliate, or insider of an affiliate as if such affiliate were the debtor; and

(F) managing agent of the debtor.

(32) The term “insolvent” means—
(A) with reference to an entity other than a partnership and a municipality, financial
condition such that the sum of such entity’s debts is greater than all of such entity’s
property, at a fair valuation, exclusive of—
(i) property transferred, concealed, or removed with intent to hinder, delay, or
defraud such entity’s creditors; and
(ii) property that may be exempted from property of the estate under section 522
of this title;

(B) with reference to a partnership, financial condition such that the sum of such
partnership’s debts is greater than the aggregate of, at a fair valuation—
(i) all of such partnership’s property, exclusive of property of the kind specified in
subparagraph (A)(i) of this paragraph; and
(ii) the sum of the excess of the value of each general partner’s nonpartnership
property, exclusive of property of the kind specified in subparagraph (A) of this
paragraph, over such partner’s nonpartnership debts; and

(C) with reference to a municipality, financial condition such that the municipality is—
(i) generally not paying its debts as they become due unless such debts are the
subject of a bona fide dispute; or
(ii) unable to pay its debts as they become due.

(33) The term “institution-affiliated party”—
(A) with respect to an insured depository institution (as defined in section 3(c)(2) of the
Federal Deposit Insurance Act), has the meaning given it in section 3(u) of the Federal
Deposit Insurance Act; and

(B) with respect to an insured credit union, has the meaning given it in section 206(r) of
the Federal Credit Union Act.

(34) The term “insured credit union” has the meaning given it in section 101(7) of the Federal
Credit Union Act.

(35) The term “insured depository institution”—
(A) has the meaning given it in section 3(c)(2) of the Federal Deposit Insurance Act; and

(B) includes an insured credit union (except in the case of paragraphs (21B) and (33)(A)
of this subsection).

(35A) The term “intellectual property” means—
(A) trade secret;

(B) invention, process, design, or plant protected under title 35;

(C) patent application;

(D) plant variety;

(E) work of authorship protected under title 17; or

(F) mask work protected under chapter 9 of title 17; to the extent protected by applicable
nonbankruptcy law.

(36) The term “judicial lien” means lien obtained by judgment, levy, sequestration, or other legal
or equitable process or proceeding.

(37) The term “lien” means charge against or interest in property to secure payment of a debt or
performance of an obligation.

(38) The term “margin payment” means, for purposes of the forward contract provisions of this
title, payment or deposit of cash, a security or other property, that is commonly known in the
forward contract trade as original margin, initial margin, maintenance margin, or variation
margin, including mark-to-market payments, or variation payments.

(38A) The term “master netting agreement”—
(A) means an agreement providing for the exercise of rights, including rights of netting,
setoff, liquidation, termination, acceleration, or close out, under or in connection with one
or more contracts that are described in any one or more of paragraphs (1) through (5) of
section 561(a), or any security agreement or arrangement or other credit enhancement
related to one or more of the foregoing, including any guarantee or reimbursement
obligation related to 1 or more of the foregoing; and

(B) if the agreement contains provisions relating to agreements or transactions that are
not contracts described in paragraphs (1) through (5) of section 561(a), shall be deemed
to be a master netting agreement only with respect to those agreements or transactions
that are described in any one or more of paragraphs (1) through (5) of section 561(a).

(38B) The term “master netting agreement participant” means an entity that, at any time before
the date of the filing of the petition, is a party to an outstanding master netting agreement with
the debtor.

(39) The term “mask work” has the meaning given it in section 901(a)(2) of title 17.

(39A) The term “median family income” means for any year—
(A) the median family income both calculated and reported by the Bureau of the Census
in the then most recent year; and

(B) if not so calculated and reported in the then current year, adjusted annually after such
most recent year until the next year in which median family income is both calculated
and reported by the Bureau of the Census, to reflect the percentage change in the
Consumer Price Index for All Urban Consumers during the period of years occurring
after such most recent year and before such current year.

(40) The term “municipality” means political subdivision or public agency or instrumentality of
a State.

(40A) The term “patient” means any individual who obtains or receives services from a health
care business.

(40B) The term “patient records” means any record relating to a patient, including a written
document or a record recorded in a magnetic, optical, or other form of electronic medium.

(41) The term “person” includes individual, partnership, and corporation, but does not include
governmental unit, except that a governmental unit that—
(A) acquires an asset from a person—
(i) as a result of the operation of a loan guarantee agreement; or
(ii) as receiver or liquidating agent of a person;
(B) is a guarantor of a pension benefit payable by or on behalf of the debtor or an affiliate
of the debtor; or

(C) is the legal or beneficial owner of an asset of—
(i) an employee pension benefit plan that is a governmental plan, as defined in
section 414(d) of the Internal Revenue Code of 1986; or
(ii) an eligible deferred compensation plan, as defined in section 457(b) of the
Internal Revenue Code of 1986;

shall be considered, for purposes of section 1102 of this title, to be a person with respect to such
asset or such benefit.

(41A) The term “personally identifiable information” means—
(A) if provided by an individual to the debtor in connection with obtaining a product or a
service from the debtor primarily for personal, family, or household purposes—
(i) the first name (or initial) and last name of such individual, whether given at
birth or time of adoption, or resulting from a lawful change of name;
(ii) the geographical address of a physical place of residence of such individual;
(iii) an electronic address (including an e-mail address) of such individual;
(iv) a telephone number dedicated to contacting such individual at such physical
place of residence;
(v) a social security account number issued to such individual; or
(vi) the account number of a credit card issued to such individual; or

(B) if identified in connection with 1 or more of the items of information specified in
subparagraph (A)—
(i) a birth date, the number of a certificate of birth or adoption, or a place of birth;
or
(ii) any other information concerning an identified individual that, if disclosed,
will result in contacting or identifying such individual physically or electronically.

(42) The term “petition” means petition filed under section 301, 302, 303 and [2] 1504 of this
title, as the case may be, commencing a case under this title.

(42A) The term “production payment” means a term overriding royalty satisfiable in cash or in
kind—
(A) contingent on the production of a liquid or gaseous hydrocarbon from particular real
property; and

(B) from a specified volume, or a specified value, from the liquid or gaseous hydrocarbon
produced from such property, and determined without regard to production costs.

(43) The term “purchaser” means transferee of a voluntary transfer, and includes immediate or
mediate transferee of such a transferee.

(44) The term “railroad” means common carrier by railroad engaged in the transportation of
individuals or property or owner of trackage facilities leased by such a common carrier.

(45) The term “relative” means individual related by affinity or consanguinity within the third
degree as determined by the common law, or individual in a step or adoptive relationship within
such third degree.

(46) The term “repo participant” means an entity that, at any time before the filing of the
petition, has an outstanding repurchase agreement with the debtor.

(47) The term “repurchase agreement” (which definition also applies to a reverse repurchase
agreement)—
(A) means—
(i) an agreement, including related terms, which provides for the transfer of one or
more certificates of deposit, mortgage related securities (as defined in section 3 of
the Securities Exchange Act of 1934), mortgage loans, interests in mortgage
related securities or mortgage loans, eligible bankers’ acceptances, qualified
foreign government securities (defined as a security that is a direct obligation of,
or that is fully guaranteed by, the central government of a member of the
Organization for Economic Cooperation and Development), or securities that are
direct obligations of, or that are fully guaranteed by, the United States or any
agency of the United States against the transfer of funds by the transferee of such
certificates of deposit, eligible bankers’ acceptances, securities, mortgage loans,
or interests, with a simultaneous agreement by such transferee to transfer to the
transferor thereof certificates of deposit, eligible bankers’ acceptance, securities,
mortgage loans, or interests of the kind described in this clause, at a date certain
not later than 1 year after such transfer or on demand, against the transfer of
funds;
(ii) any combination of agreements or transactions referred to in clauses (i) and
(iii);
(iii) an option to enter into an agreement or transaction referred to in clause (i) or
(ii);
(iv) a master agreement that provides for an agreement or transaction referred to
in clause (i), (ii), or (iii), together with all supplements to any such master
agreement, without regard to whether such master agreement provides for an
agreement or transaction that is not a repurchase agreement under this paragraph,
except that such master agreement shall be considered to be a repurchase
agreement under this paragraph only with respect to each agreement or

transaction under the master agreement that is referred to in clause (i), (ii), or (iii);
or
(v) any security agreement or arrangement or other credit enhancement related to
any agreement or transaction referred to in clause (i), (ii), (iii), or (iv), including
any guarantee or reimbursement obligation by or to a repo participant or financial
participant in connection with any agreement or transaction referred to in any
such clause, but not to exceed the damages in connection with any such
agreement or transaction, measured in accordance with section 562 of this title;
and

(B) does not include a repurchase obligation under a participation in a commercial
mortgage loan.

(48) The term “securities clearing agency” means person that is registered as a clearing agency
under section 17A of the Securities Exchange Act of 1934, or exempt from such registration
under such section pursuant to an order of the Securities and Exchange Commission, or whose
business is confined to the performance of functions of a clearing agency with respect to
exempted securities, as defined in section 3(a)(12) of such Act for the purposes of such section
17A.

(48A) The term “securities self regulatory organization” means either a securities association
registered with the Securities and Exchange Commission under section 15A of the Securities
Exchange Act of 1934 or a national securities exchange registered with the Securities and
Exchange Commission under section 6 of the Securities Exchange Act of 1934.

(49) The term “security”—
(A) includes—
(i) note;
(ii) stock;
(iii) treasury stock;
(iv) bond;
(v) debenture;
(vi) collateral trust certificate;
(vii) pre-organization certificate or subscription;
(viii) transferable share;
(ix) voting-trust certificate;
(x) certificate of deposit;
(xi) certificate of deposit for security;
(xii) investment contract or certificate of interest or participation in a profit-
sharing agreement or in an oil, gas, or mineral royalty or lease, if such contract or
interest is required to be the subject of a registration statement filed with the
Securities and Exchange Commission under the provisions of the Securities Act
of 1933, or is exempt under section 3(b) of such Act from the requirement to file
such a statement;
(xiii) interest of a limited partner in a limited partnership;
(xiv) other claim or interest commonly known as “security”; and

(xv) certificate of interest or participation in, temporary or interim certificate for,
receipt for, or warrant or right to subscribe to or purchase or sell, a security; but

(B) does not include—
(i) currency, check, draft, bill of exchange, or bank letter of credit;
(ii) leverage transaction, as defined in section 761 of this title;
(iii) commodity futures contract or forward contract;
(iv) option, warrant, or right to subscribe to or purchase or sell a commodity
futures contract;
(v) option to purchase or sell a commodity;
(vi) contract or certificate of a kind specified in subparagraph (A)(xii) of this
paragraph that is not required to be the subject of a registration statement filed
with the Securities and Exchange Commission and is not exempt under section
3(b) of the Securities Act of 1933 from the requirement to file such a statement;
or
(vii) debt or evidence of indebtedness for goods sold and delivered or services
rendered.

(50) The term “security agreement” means agreement that creates or provides for a security
interest.

(51) The term “security interest” means lien created by an agreement.

(51A) The term “settlement payment” means, for purposes of the forward contract provisions of
this title, a preliminary settlement payment, a partial settlement payment, an interim settlement
payment, a settlement payment on account, a final settlement payment, a net settlement payment,
or any other similar payment commonly used in the forward contract trade.

(51B) The term “single asset real estate” means real property constituting a single property or
project, other than residential real property with fewer than 4 residential units, which generates
substantially all of the gross income of a debtor who is not a family farmer and on which no
substantial business is being conducted by a debtor other than the business of operating the real
property and activities incidental thereto.

(51C) The term “small business case” means a case filed under chapter 11 of this title in which
the debtor is a small business debtor.

(51D) The term “small business debtor”—
(A) subject to subparagraph (B), means a person engaged in commercial or business
activities (including any affiliate of such person that is also a debtor under this title and
excluding a person whose primary activity is the business of owning or operating real
property or activities incidental thereto) that has aggregate noncontingent liquidated
secured and unsecured debts as of the date of the filing of the petition or the date of the
order for relief in an amount not more than $2,000,000 (excluding debts owed to 1 or
more affiliates or insiders) for a case in which the United States trustee has not appointed
under section 1102(a)(1) a committee of unsecured creditors or where the court has

determined that the committee of unsecured creditors is not sufficiently active and
representative to provide effective oversight of the debtor; and

(B) does not include any member of a group of affiliated debtors that has aggregate
noncontingent liquidated secured and unsecured debts in an amount greater than
$2,000,000 (excluding debt owed to 1 or more affiliates or insiders).

(52) The term “State” includes the District of Columbia and Puerto Rico, except for the purpose
of defining who may be a debtor under chapter 9 of this title.

(53) The term “statutory lien” means lien arising solely by force of a statute on specified
circumstances or conditions, or lien of distress for rent, whether or not statutory, but does not
include security interest or judicial lien, whether or not such interest or lien is provided by or is
dependent on a statute and whether or not such interest or lien is made fully effective by statute.

(53A) The term “stockbroker” means person—
(A) with respect to which there is a customer, as defined in section 741 of this title; and

(B) that is engaged in the business of effecting transactions in securities—
(i) for the account of others; or
(ii) with members of the general public, from or for such person’s own account.

(53B) The term “swap agreement”—
(A) means—
(i) any agreement, including the terms and conditions incorporated by reference in
such agreement, which is—
(I) an interest rate swap, option, future, or forward agreement, including a
rate floor, rate cap, rate collar, cross-currency rate swap, and basis swap;
(II) a spot, same day-tomorrow, tomorrow-next, forward, or other foreign
exchange, precious metals, or other commodity agreement;
(III) a currency swap, option, future, or forward agreement;
(IV) an equity index or equity swap, option, future, or forward agreement;
(V) a debt index or debt swap, option, future, or forward agreement;
(VI) a total return, credit spread or credit swap, option, future, or forward
agreement;
(VII) a commodity index or a commodity swap, option, future, or forward
agreement;
(VIII) a weather swap, option, future, or forward agreement;
(IX) an emissions swap, option, future, or forward agreement; or
(X) an inflation swap, option, future, or forward agreement;

(ii) any agreement or transaction that is similar to any other agreement or
transaction referred to in this paragraph and that—
(I) is of a type that has been, is presently, or in the future becomes, the
subject of recurrent dealings in the swap or other derivatives markets
(including terms and conditions incorporated by reference therein); and

(II) is a forward, swap, future, option, or spot transaction on one or more
rates, currencies, commodities, equity securities, or other equity
instruments, debt securities or other debt instruments, quantitative
measures associated with an occurrence, extent of an occurrence, or
contingency associated with a financial, commercial, or economic
consequence, or economic or financial indices or measures of economic or
financial risk or value;
(iii) any combination of agreements or transactions referred to in this
subparagraph;
(iv) any option to enter into an agreement or transaction referred to in this
subparagraph;
(v) a master agreement that provides for an agreement or transaction referred to in
clause (i), (ii), (iii), or (iv), together with all supplements to any such master
agreement, and without regard to whether the master agreement contains an
agreement or transaction that is not a swap agreement under this paragraph,
except that the master agreement shall be considered to be a swap agreement
under this paragraph only with respect to each agreement or transaction under the
master agreement that is referred to in clause (i), (ii), (iii), or (iv); or
(vi) any security agreement or arrangement or other credit enhancement related to
any agreements or transactions referred to in clause (i) through (v), including any
guarantee or reimbursement obligation by or to a swap participant or financial
participant in connection with any agreement or transaction referred to in any
such clause, but not to exceed the damages in connection with any such
agreement or transaction, measured in accordance with section 562; and

(B) is applicable for purposes of this title only, and shall not be construed or applied so as
to challenge or affect the characterization, definition, or treatment of any swap agreement
under any other statute, regulation, or rule, including the Gramm-Leach-Bliley Act, the
Legal Certainty for Bank Products Act of 2000, the securities laws (as such term is
defined in section 3(a)(47) of the Securities Exchange Act of 1934) and the Commodity
Exchange Act.

(53C) The term “swap participant” means an entity that, at any time before the filing of the
petition, has an outstanding swap agreement with the debtor.

(56A) [3] The term “term overriding royalty” means an interest in liquid or gaseous
hydrocarbons in place or to be produced from particular real property that entitles the owner
thereof to a share of production, or the value thereof, for a term limited by time, quantity, or
value realized.

(53D) The term “timeshare plan” means and shall include that interest purchased in any
arrangement, plan, scheme, or similar device, but not including exchange programs, whether by
membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, right to
use agreement, or by any other means, whereby a purchaser, in exchange for consideration,

receives a right to use accommodations, facilities, or recreational sites, whether improved or
unimproved, for a specific period of time less than a full year during any given year, but not
necessarily for consecutive years, and which extends for a period of more than three years. A
“timeshare interest” is that interest purchased in a timeshare plan which grants the purchaser the
right to use and occupy accommodations, facilities, or recreational sites, whether improved or
unimproved, pursuant to a timeshare plan.

(54) The term “transfer” means—
(A) the creation of a lien;
(B) the retention of title as a security interest;
(C) the foreclosure of a debtor’s equity of redemption; or
(D) each mode, direct or indirect, absolute or conditional, voluntary or involuntary, of
disposing of or parting with—
(i) property; or
(ii) an interest in property.

(54A) The term “uninsured State member bank” means a State member bank (as defined in
section 3 of the Federal Deposit Insurance Act) the deposits of which are not insured by the
Federal Deposit Insurance Corporation.

(55) The term “United States”, when used in a geographical sense, includes all locations where
the judicial jurisdiction of the United States extends, including territories and possessions of the
United States.

** Nothing on this website, or the included Bankruptcy Code, is intended to imply or predict the result or any outcome of any legal matter that you may be considering or involved in. The Law Offices of Lin & Wood makes no warranties of any nature that the Bankruptcy Code included on this website is current. The Bankruptcy Code is regularly amended and changed. The Law Offices of Lin & Wood makes its best effort to update the Bankruptcy Code as changes are made.**

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