Member property refers to the assets that a clearing organization receives or holds for the account of a customer who is a clearing member. This includes any customer property that is acquired or maintained by the clearing organization on behalf of its customers. Essentially, it encompasses the financial assets that belong to customers but are managed by the clearing organization.
This term is primarily used in the context of bankruptcy law, specifically in cases involving commodity broker liquidation. Member property is crucial in determining how customer assets are treated during liquidation proceedings. Legal professionals may encounter this term in civil cases related to bankruptcy and financial regulations. Users can manage related forms and procedures using US Legal Forms, which provides templates drafted by attorneys.
Here are a couple of examples of abatement:
The primary legal reference for member property is found in 11 USCS § 761, which outlines the definitions and regulations regarding bankruptcy and liquidation processes for commodity brokers.
| Term | Definition | Key Differences |
|---|---|---|
| Customer Property | Assets owned by customers held by a broker or clearing organization. | Member property specifically refers to assets held for clearing members, while customer property can include assets of non-member customers. |
| Proprietary Account | Account where a broker trades using its own funds. | Member property pertains to customer assets, whereas proprietary accounts involve the broker's own assets. |
If you are a customer of a clearing organization and are concerned about your assets in the event of bankruptcy, it is advisable to review your account statements and understand the protections available for member property. You can also explore US Legal Forms for templates that may help you navigate related legal processes. If your situation is complex, consulting with a legal professional is recommended.
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