Issue link: https://mbozikis.ufcontent.com/i/1422521
124 could use, sell or lease pursuant to Section 363, or that the debtor could exempt under Section 522, turn over that property to the trustee. The turnover power is self-executing and does not require the trustee to take any action or commence a proceeding or obtain a court order to compel turnover. See Cornerstone Prods., Inc. v. Pilot Plastics, Inc. (In re Cornerstone Prods., Inc.), No. 05-53533, 2007 Bankr. LEXIS 4101 (Bankr. E.D. Tex. Dec. 5, 2007). The turnover power also reaches estate property that is in the hands of secured creditors, who are offered various rights to replace the protection afforded by possession of the property. U.S. v. Whiting Pools, 462 U.S. 198, 206 (1983). Moreover, Section 542(b) requires that all entities that owe a debt to the debtor that is matured, payable on demand or payable on order turn over or pay that debt to the trustee or debtor-in- possession. A debt is "matured [or] payable on demand" if it is "presently payable," and not "only payable upon the occurrence of some later event." See Kids World of Am., Inc. v. State of Georgia (In re Kids World of Am., Inc.), 349 B.R. 152, 163 (Bankr. W.D. Ky. 2006). As noted above, Section 542 provides for certain exceptions to the turnover requirement. According to Section 542, a party need not return property or pay a debt where: (i) such property is of inconsequential value or benefit to the estate (11 U.S.C. § 542(a)); (ii) a party obligated on a debt to the debtor has a valid right of setoff (11 U.S.C. § 542(b)); (iii) a property holder lacks actual knowledge or notice of the bankruptcy filing and transfers the debtor's property or pays a debt owing to the debtor in good faith to a party other than the trustee (11 U.S.C. § 542(c)); or (iv) the debtor's property is automatically transferred to pay a life insurance premium (11 U.S.C. § 542(d)). There is no statute of limitations on turnover claims, because such claims are equitable in nature and are subject to the doctrine of laches. See Burtch v. Ganz (In re Mushroom Transp. Co.), 382 F.3d 325, 337 (3d Cir. 2004).