Net Equity Law and Legal Definition
According to 11 USCS § 761 [Title 11. Bankruptcy; Chapter 7. Liquidation Subchapter iv. Commodity broker liquidation net equity means, subject to such rules and regulations as the Commission promulgates under the Act, with respect to the aggregate of all of a customer's accounts that such customer has in the same capacity--
“(A) the balance remaining in such customer's accounts immediately after--
(i) all commodity contracts of such customer have been transferred, liquidated, or become identified for delivery; and
(ii) all obligations of such customer in such capacity to the debtor have been offset; plus
(B) the value, as of the date of return under section 766 of this title [11 USCS § 766], of any specifically identifiable customer property actually returned to such customer before the date specified in subparagraph (A) of this paragraph; plus
(C) the value, as of the date of transfer, of--
(i) any commodity contract to which such customer is entitled that is transferred to another person under section 766 of this title [11 USCS § 766]; and
(ii) any cash, security, or other property of such customer transferred to such other person under section 766 of this title [11 USCS § 766] to margin or secure such transferred commodity contract.”
