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TITLE 11.
BANKRUPTCY · UNITED STATES CODE
Chapter 5.
Creditors, the Debtor and the Estate
Subchapter I. Creditors and Claims
11
USC § 503. Allowance of administrative expenses
(a) An entity may timely file a request for payment of
an administrative expense, or may tardily file such request if permitted by
the court for cause.
(b) After notice and a hearing, there shall be allowed
administrative expenses, other than claims allowed under section
502(f) of this title, including--
(1)
(A) the actual, necessary costs and expenses of
preserving the estate including--
(i) wages, salaries, and commissions for services
rendered after the commencement of the case; and
(ii) wages and benefits awarded pursuant to a
judicial proceeding or a proceeding of the National Labor Relations
Board as back pay attributable to any period of time occurring after
commencement of the case under this title, as a result of a violation of
Federal or State law by the debtor, without regard to the time of the
occurrence of unlawful conduct on which such award is based or to
whether any services were rendered, if the court determines that payment
of wages and benefits by reason of the operation of this clause will not
substantially increase the probability of layoff or termination of
current employees, or of nonpayment of domestic support obligations,
during the case under this title;
(B) any tax--
(i) incurred by the estate, whether secured or
unsecured, including property taxes for which liability is in rem, in
personam, or both, except a tax of a kind specified in section
507(a)(8) of this title; or
(ii) attributable to an excessive allowance of a tentative carryback
adjustment that the estate received, whether the taxable year to which
such adjustment relates ended before or after the commencement of the
case;
(C) any fine, penalty, or reduction in credit relating to a tax of a
kind specified in subparagraph (B) of this paragraph; and
(D) notwithstanding the requirements of subsection (a),
a governmental unit shall not be required to file a request for the
payment of an expense described in subparagraph (B) or (C), as a condition
of its being an allowed administrative expense;
(2) compensation and reimbursement awarded under section
330(a) of this title;
(3) the actual, necessary expenses, other than
compensation and reimbursement specified in paragraph (4) of this
subsection, incurred by--
(A) a creditor that files a petition under section
303 of this title;
(B) a creditor that recovers, after the court’s approval, for the
benefit of the estate any property transferred or concealed by the debtor;
(C) a creditor in connection with the prosecution of a criminal offense
relating to the case or to the business or property of the debtor;
(D) a creditor, an indenture trustee, an equity security holder, or a
committee representing creditors or equity security holders other than a
committee appointed under section
1102 of this title, in making a substantial contribution in a case
under chapter
9 or 11
of this title;
(E) a custodian superseded under section
543 of this title, and compensation for the services of such
custodian; or
(F) a member of a committee appointed under section
1102 of this title, if such expenses are incurred in the performance
of the duties of such committee;
(4) reasonable compensation for professional
services rendered by an attorney or an accountant of an entity whose expense
is allowable under subparagraph (A), (B), (C), (D), or (E)
of paragraph (3) of this subsection, based on the time, the nature,
the extent, and the value of such services, and the cost of comparable
services other than in a case under this title, and reimbursement for
actual, necessary expenses incurred by such attorney or accountant;
(5) reasonable compensation for services rendered
by an indenture trustee in making a substantial contribution in a case under
chapter
9 or 11 of
this title, based on the time, the nature, the extent, and the value of such
services, and the cost of comparable services other than in a case under
this title;
(6) the fees and mileage payable under chapter
119 of title 28;
(7) with respect to a
nonresidential real property lease previously assumed under section
365, and subsequently rejected, a sum equal to all monetary obligations
due, excluding those arising from or relating to a failure to operate or a
penalty provision, for the period of 2 years following the later of the
rejection date or the date of actual turnover of the premises, without
reduction or setoff for any reason whatsoever except for sums actually
received or to be received from an entity other than the debtor, and the
claim for remaining sums due for the balance of the term of the lease shall
be a claim under section
502(b)(6);
(8) the actual, necessary costs and expenses of
closing a health care business incurred by a trustee or by a Federal agency
(as defined in section
551(1) of title 5) or a department or agency of a State or political
subdivision thereof, including any cost or expense incurred--
(A) in disposing of patient records in accordance with section
351; or
(B) in connection with transferring patients from the health care
business that is in the process of being closed to another health care
business; and
(9) the value of any goods received by the debtor
within 20 days before the date of commencement of a case under this title in
which the goods have been sold to the debtor in the ordinary course of such
debtor's business.
(c) Notwithstanding subsection (b), there shall
neither be allowed, nor paid--
(1) a transfer made to, or an obligation
incurred for the benefit of, an insider of the debtor for the purpose of
inducing such person to remain with the debtor's business, absent a
finding by the court based on evidence in the record that--
(A) the transfer or obligation is essential to retention of the
person because the individual has a bona fide job offer from another
business at the same or greater rate of compensation;
(B) the services provided by the person are essential to the survival
of the business; and
(C) either--
(i) the amount of the transfer made to, or obligation incurred for
the benefit of, the person is not greater than an amount equal to 10
times the amount of the mean transfer or obligation of a similar kind
given to nonmanagement employees for any purpose during the calendar
year in which the transfer is made or the obligation is incurred; or
(ii) if no such similar transfers were made to, or obligations were
incurred for the benefit of, such nonmanagement employees during such
calendar year, the amount of the transfer or obligation is not greater
than an amount equal to 25 percent of the amount of any similar
transfer or obligation made to or incurred for the benefit of such
insider for any purpose during the calendar year before the year in
which such transfer is made or obligation is incurred;
(2) a severance payment to an insider of the
debtor, unless--
(A) the payment is part of a program that is generally applicable to
all full-time employees; and
(B) the amount of the payment is not greater than 10 times the amount
of the mean severance pay given to nonmanagement employees during the
calendar year in which the payment is made; or
(3) other transfers or obligations that are
outside the ordinary course of business and not justified by the facts and
circumstances of the case, including transfers made to, or obligations
incurred for the benefit of, officers, managers, or consultants hired
after the date of the filing of the petition.
[Rev. 5-6-05]
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