Statutes – Annotated Text of Section 503(b)(9) – Allowance of Administrative Expenses – 20 Day Goods

This page has been replaced.  An updated discussion can be found by at “Sec. 503 – Administrative Expenses

§ 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—

*  *  *  *

(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.

Click this link for a discussion of the elements of Section 503(b)(9), procedures for applying for this administrative expense and some of the challenges of suppliers in trying to avail themselves of the benefits of this Section.