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201 F. Stockbroker, Commodity Broker and Clearing Bank Liquidations In addition to the standard liquidation rules set forth in Chapter 7, Chapter 7 contains specialized rules for the liquidation of stockbrokers (Subchapter III of Chapter 7; 11 U.S.C. §§ 741– 753), commodity brokers (Subchapter IV; 11 U.S.C. §§ 761–767) and certain clearing banks (Subchapter V; 11 U.S.C. §§ 781–784). These types of entities are not eligible for Chapter 11 reorganization, and can only commence Chapter 7 proceedings under the Bankruptcy Code, although, at least in the case of stockbrokers, there are other liquidation procedures available outside of the Bankruptcy Code. 1. Stockbrokers Stockbrokers can liquidate under either Subchapter III of Chapter 7 of the Bankruptcy Code or outside of the Bankruptcy Code pursuant to the Securities Investor Protection Act of 1970, otherwise known as "SIPA" (codified at 15 U.S.C. §§ 78aaa et seq.). Although similar in many respects, stockbroker liquidations under the Bankruptcy Code and under SIPA have some significant substantive and procedural differences. As an initial matter, a main difference between a stockbroker liquidation and the liquidation of a typical company is the addition of the concept of customers and the need to deal with assets held by the debtor for the account of a customer (i.e., "customer property" and "customer name securities"). A customer is an: (i) entity with whom a person deals as principal or agent and that has a claim against such person on account of a security received, acquired, or held by such person in the ordinary course of such person's business as a stockbroker, from or for the securities account or accounts of such entity (a) for safekeeping; (b) with a view to sale; (c) to

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