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The Act, then, grants exchanges the authority to cash checks and offer or situation dollars orders, expert services that are also rendered by banks. Of critical relevance, even so, could be the Act's express prohibition to the acceptance of deposits by currency exchanges.8 The Director would have us equate forex exchanges with banking companies and credit rating unions because they execute two essential services that banks and credit unions do: the cashing of checks as well as the issuance of money orders.
That an entity is empowered to render many of the services supplied by a bank has become held to become inadequate to sustain a discovering the entity is definitely the significant equal of the lender.
The Director apparently didn't file Along with the district courtroom a motion to dietary supplement the history on attract which debtors then would have been permitted to reply. In mild of the, we grant debtors' motion to strike, but Observe that in almost any celebration the factual issues contained inside the affidavit wouldn't have an effect on our willpower of the problems introduced on appeal
The definition of custodian to include a receiver or trustee is descriptive, and never meant to generally be limited to court docket officers with Those people titles. The definition is intended to incorporate other officers of your court docket if their functions are substantially comparable to All those of a receiver or trustee.
Certainly, the legislative background of part 543 supports the conclusion that the time period "custodian" contains prepetition liquidators who keep title to the debtor's belongings.
There's no similar definition in latest regulation. It really is outlined to facilitate drafting, and means a prepetition liquidator from the debtor's house, like an assignee for the advantage of creditors, a receiver of your debtor's property, or administrator from the debtor's residence.
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He then moved to dismiss the debtors' application for an buy necessitating his receiver to turn in excess of the debtors' residence plus the debtors' chapter 11 petitions on the bottom which the individual bankruptcy court docket lacked jurisdiction of the situation. Equally motions ended up denied. The bankruptcy courtroom subsequently ordered the appointment of the personal bankruptcy trustee and ordered the Director's receiver to show around the exchanges' assets into the trustee.
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The Director's contention which the exchanges aren't "standard businesses," but instead "special companies whose incredibly existence depended on licensing by the Point out of Illinois" does not change our conclusion the receiver's exceptional title towards the assets didn't preclude the submitting with the petitions. He is just rephrasing the argument, which We now have already turned down, that currency exchanges are akin to All those entities that are precluded from becoming debtors beneath eleven U.S.C. Sec. 109(b)(2).