---
kind: "section"
citation: "7 U.S.C. § 24"
title: "7"
title_heading: "Agriculture"
number: "24"
heading: "Customer property with respect to commodity broker debtors; definitions"
release: "119-102"
url: "https://uscodex.org/usc/7/24"
units:
  - "Chapter 1 — Commodity Exchanges"
---

# §24. Customer property with respect to commodity broker debtors; definitions

- (a) **Regulations respecting commodity broker debtors—** Notwithstanding [title 11](/usc/11.md), the [Commission](/usc/7/1a.md?p=8) may provide, with respect to a [commodity broker](#b) that is a debtor under [chapter 7](/usc/11/ch7.md) of title 11, by rule or regulation—
  - (1) that certain cash, [securities](#b), other property, or [commodity contracts](#b) are to be included in or excluded from [customer property](#b) or [member property](#b);
  - (2) that certain cash, [securities](#b), other property, or [commodity contracts](#b) are to be specifically identifiable to a particular [customer](#b) in a specific capacity;
  - (3) the method by which the business of such [commodity broker](#b) is to be conducted or liquidated after the date of the filing of the petition under such chapter, including the payment and allocation of margin with respect to [commodity contracts](#b) not specifically identifiable to a particular [customer](#b) pending their orderly liquidation;
  - (4) any [persons](/usc/7/1a.md?p=38) to which [customer property](#b) and [commodity contracts](#b) may be transferred under [section 766 of title 11](/usc/11/766.md); and
  - (5) how the [net equity](#b) of a [customer](#b) is to be determined.
- (b) **Definitions—** As used in this section, the terms “commodity broker”, “commodity contract”, “customer”, “customer property”, “member property”, “net equity”, and “security” have the meanings assigned such terms for the purposes of subchapter IV of [chapter 7](/usc/11/ch7.md) of title 11.
- (c) **Portfolio margining accounts—** The [Commission](/usc/7/1a.md?p=8) shall exercise its [authority](/usc/7/2009aa.md?p=1) to ensure that [securities](#b) held in a portfolio margining account carried as a futures account are [customer property](#b) and the owners of those accounts are [customers](#b) for the purposes of subchapter IV of [chapter 7](/usc/11/ch7.md) of title 11.

## Source credit

(Sept. 21, 1922, ch. 369, § 20, formerly § 19, as added Pub. L. 95–598, title III, § 302, Nov. 6, 1978, 92 Stat. 2673; renumbered and amended Pub. L. 97–222, § 20, July 27, 1982, 96 Stat. 241; Pub. L. 111–203, title VII, § 713(c), July 21, 2010, 124 Stat. 1647.)

## Notes

### Editorial Notes

### Amendments

2010—Subsec. (c). Pub. L. 111–203 added subsec. (c).

1982—Subsec. (a)(3). Pub. L. 97–222, § 20(b), inserted “, including the payment and allocation of margin with respect to commodity contracts not specifically identifiable to a particular customer pending their orderly liquidation”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective on the later of 360 days after July 21, 2010, or, to the extent a provision of subtitle A (§§ 711–754) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation implementing such provision of subtitle A, see section 754 of Pub. L. 111–203, set out as a note under section 1a of this title.

### Effective Date

Section effective Nov. 6, 1978, see section 402(d) of Pub. L. 95–598, set out as a note preceding section 101 of Title 11, Bankruptcy.