Section 1501: Purpose and Scope of Application
Purpose and Scope of Application –Section 150111 USCS § 1501
(a) The purpose of this chapter [11 USCS §§ 1501 et seq.] is to incorporate the Model Law on Cross-Border Insolvency so as to provide effective mechanisms for dealing with cases of cross-border insolvency with the objectives of--
(1) cooperation between--
(A) courts of the United States, United States trustees, trustees, examiners, debtors, and debtors in possession; and
(B) the courts and other competent authorities of foreign countries involved in cross-border insolvency cases;
(2) greater legal certainty for trade and investment;
(3) fair and efficient administration of cross-border insolvencies that protects the interests of all creditors, and other interested entities, including the debtor;
(4) protection and maximization of the value of the debtor's assets; and
(5) facilitation of the rescue of financially troubled businesses, thereby protecting investment and preserving employment.
(b) This chapter [11 USCS §§ 1501 et seq.] applies where--
(1) assistance is sought in the United States by a foreign court or a foreign representative in connection with a foreign proceeding;
(2) assistance is sought in a foreign country in connection with a case under this title;
(3) a foreign proceeding and a case under this title with respect to the same debtor are pending concurrently; or
(4) creditors or other interested persons in a foreign country have an interest in requesting the commencement of, or participating in, a case or proceeding under this title.
(c) This chapter [11 USCS §§ 1501 et seq.] does not apply to--
(1) a proceeding concerning an entity, other than a foreign insurance company, identified by exclusion in section 109(b) [11 USCS § 109(b)];
(2) an individual, or to an individual and such individual's spouse, who have debts within the limits specified in section 109(e) [11 USCS § 109(e)] and who are citizens of the United States or aliens lawfully admitted for permanent residence in the United States; or
(3) an entity subject to a proceeding under the Securities Investor Protection Act of 1970 [15 USCS §§ 78aaa et seq.], a stockbroker subject to subchapter III of chapter 7 of this title [11 USCS §§ 741 et seq.], or a commodity broker subject to subchapter IV of chapter 7 of this title [11 USCS §§ 761 et seq.].
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