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BANKRUPTCY · UNITED STATES CODE
Subchapter III. Administration
USC § 366. Utility service
(a) Except as provided in subsections
(b) and (c) of this section, a utility may not alter, refuse, or
discontinue service to, or discriminate against, the trustee or the debtor
solely on the basis of the commencement of a case under this title or that a
debt owed by the debtor to such utility for service rendered before the order
for relief was not paid when due.
(b) Such utility may alter, refuse, or discontinue service if neither the
trustee nor the debtor, within 20 days after the date of the order for relief,
furnishes adequate assurance of payment, in the form of a deposit or other
security, for service after such date. On request of a party in interest and
after notice and a hearing, the court may order reasonable modification of the
amount of the deposit or other security necessary to provide adequate
assurance of payment.
(A) For purposes of this subsection, the term
`assurance of payment' means--
(i) a cash deposit;
(ii) a letter of credit;
(iii) a certificate of deposit;
(iv) a surety bond;
(v) a prepayment of utility consumption; or
(vi) another form of security that is mutually agreed on between the
utility and the debtor or the trustee.
(B) For purposes of this subsection an administrative expense priority
shall not constitute an assurance of payment.
(2) Subject to paragraphs (3) and (4), with respect to a case filed
under chapter 11,
a utility referred to in subsection (a) may alter, refuse, or discontinue
utility service, if during the 30-day period beginning on the date of the
filing of the petition, the utility does not receive from the debtor or
the trustee adequate assurance of payment for utility service that is
satisfactory to the utility.
(A) On request of a party in interest and after notice and a hearing,
the court may order modification of the amount of an assurance of
payment under paragraph (2).
(B) In making a determination under this paragraph whether an
assurance of payment is adequate, the court may not consider--
(i) the absence of security before the date of the filing of the
(ii) the payment by the debtor of charges for utility service in a
timely manner before the date of the filing of the petition; or
(iii) the availability of an administrative expense priority.
(4) Notwithstanding any other provision of law, with respect to a case
subject to this subsection, a utility may recover or set off against a
security deposit provided to the utility by the debtor before the date of
the filing of the petition without notice or order of the court.