[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR190.03]

[Page 620-621]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 190_BANKRUPTCY--Table of Contents
 
Sec.  190.03  Operation of the debtor's estate subsequent to the primary 

liquidation date.

    Subsequent to the primary liquidation date, accounts which contain 
open commodity contracts not required to be liquidated under Sec.  
190.02 (f)(1) shall be operated by the trustee as follows:
    (a) Operation of accounts held open for transfer--(1) Establishment 
of transfer accounts. On the primary liquidation date, the trustee must 
generate a new statement of account for each class of account of a 
customer which contains a commodity contract not required to be 
liquidated under Sec.  190.02(f)(1). The opening balance of such 
statement must be equal to its funded balance, less the value on the 
date of its transfer or return of any property transferred or returned 
with respect to the net equity claim for such account prior to the 
primary liquidation date.
    (2) Accounting for transfer accounts. The opening balance of any 
statement generated on the primary liquidation date in accordance with 
paragraph (a)(1) of this section must be adjusted for operations on or 
subsequent to the primary liquidation date in the same manner as the 
equity in a commodity futures account maintained for or on behalf of a 
customer would adjusted in the ordinary course of business prior to the 
filing date: Provided, however, That such statement of account must also 
be adjusted to reflect certain adjustments to the funded balance in 
accordance with Sec.  190.07(c)(2), such that the balance in that 
account will always be equal to the funded balance of the claimant's net 
equity claim adjusted for corrections and subsequent operations less the 
value on the date of transfer or return of any property transferred or 
returned with respect to that claim prior to the primary liquidation 
date.
    (3) Margin calls. The trustee must promptly issue margin calls with 
respect to any account referred to under paragraph (a)(1) of this 
section in which the balance does not equal or exceed 100% of the 
maintenance margin requirements of the applicable board of

[[Page 621]]

trade with respect to the open commodity contracts in such account, or 
if there are no such maintenance margin requirements, 100% of the 
clearing organization margin requirements applicable to the open 
commodity contracts in such account, or if there are no maintenance 
margin requirements or clearing organization margin requirements, then 
50% of the initial margin applicable to the commodity contracts in such 
account: Provided, That no margin calls need be made to restore initial 
margin.
    (4) Margin payments. The trustee may make variation or maintenance 
margin payments to the broker carrying any account referred to in 
paragraph (a)(1) of this section as appropriate if such payments do not 
exceed the balance of the statement of account generated under paragraph 
(a)(1) of this section with respect to which such contracts are 
credited. Any customer for which commodity contracts remain open 
subsequent to the primary liquidation date will not be relieved of the 
obligation to make margin payments by reason of the bankruptcy of the 
commodity broker: Provided, That the full amount of any margin payment 
made by a customer subsequent to the primary liquidation date must be 
credited to the account referred to in paragraph (a)(1) of this section 
for which it was made.
    (5) Distribution. No distribution of equity may be made to or on 
behalf of customers by the trustee with respect to an account 
established in accordance with paragraph (a)(1) of this section, except 
pursuant to paragraph (a)(4) of this section and to Sec.  190.08(d).
    (b) Liquidation of open commodity contracts. Commodity contracts 
held open by the trustee in accordance with paragraph (a)(1) of this 
section must be liquidated promptly and in an orderly manner, if:
    (1) Any payment of margin would result in a deficit in the account 
in which they are held;
    (2) The customer for, or on whose behalf, the account is held fails 
to meet a margin call within a reasonable time;
    (3) The trustee has received no customer instructions with respect 
to such contract by the close of business on the fifth business day 
after entry of the order for relief;
    (4) The commodity contract has not been transferred in accordance 
with Sec.  190.08(d)(2) on or before the close of business on the tenth 
business day after entry of the order for relief; or
    (5) The commodity contract would otherwise remain open beyond the 
last day of trading in such contract or the first day on which notice of 
delivery may be tendered with respect to such contract, whichever occurs 
first.
    (c) Liquidation of specifically identifiable property other than 
open commodity contracts. All specifically identifiable property other 
than open commodity contracts which have not been liquidated prior to 
the primary liquidation date, and for which no customer instructions 
have been timely received must be liquidated, to the extent reasonably 
possible, no later than the close of business on the fifth business day 
after final publication of the notice referred to in Sec.  190.02(b)(1). 
All other specifically identifiable property must be liquidated or 
returned, to the extent reasonably possible, no later than the close of 
business on the tenth business day after final publication of such 
notice.