A court may allow redemption to begin where reserves are available
What the document says“with respect to the redemption of payment stablecoins held by a person, if the court finds, subject to the motion and attestation of the permitted payment stablecoin issuer, which shall be filed on the petition date or as soon as practicable thereafter, there are payment stablecoin reserves available for distribution on a ratable basis to similarly situated payment stablecoin holders”
Subsection (c)(2). The words are added as a new paragraph (5) of section 362(d) of title 11, United States Code. The court is to use best efforts to enter a final order beginning distributions not later than 14 days after the date of the required hearing. The issuer's motion and attestation are filed on the petition date or as soon as practicable after it.
What the document actually says“with respect to the redemption of payment stablecoins held by a person, if the court finds, subject to the motion and attestation of the permitted payment stablecoin issuer, which shall be filed on the petition date or as soon as practicable thereafter, there are payment stablecoin reserves available for distribution on a ratable basis to similarly situated payment stablecoin holders”
A court can let payouts start while a case runs. The maker must first file a motion and a sworn statement. The court must find there is backing to share out.
Holders in the same spot share the backing in equal steps. The court should aim to order payouts within 14 days of the hearing.
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