Bankruptcy Technical Corrections Act of 1996

Summary: Bankruptcy Technical Corrections Act of 1996 - Makes technical corrections to Federal bankruptcy, criminal, and judiciary law. Redefines single asset real estate to exclude family farms and remove the $4 million ceiling on the amount of noncontingent, liquidated secured debts on such property. 
(Sec. 3) Requires triennial adjustment of the $5,000 minimum threshold value of certain implements, professional books, tools of the trade, farm animals, and crops with respect to which a debtor in certain States may not avoid the fixing of a nonpossessory, nonpurchase-money security interest lien. 
(Sec. 4) Allows a bankruptcy court to award reasonable compensation to a debtor's attorney. 
(Sec. 6) Repeals certain guidelines governing executory contracts and unexpired leases of aircraft terminals and aircraft gates, including the proscription against their assignment by the trustee in bankruptcy. 
(Sec. 14) Modifies guidelines relating to the liability of transferees of avoided transfers to prohibit the trustee in bankruptcy from avoiding a transfer made between 90 days and one year before the filing of the relief petition, if the transfer at the time was made for the benefit of a non-insider transferee. 
(Sec. 15) Revises set-off recovery rules to exclude from recovery by a trustee setoffs by swap participants. 
(Sec. 22) Repeals a provision for temporary continuation on the Bankruptcy Review Commission of certain members who have been or become employees or officers of a government. 
(Sec. 23) Requires the U.S. trustee to file a report certifying the election of an eligible, disinterested trustee at a meeting of creditors.  Declares that upon such filing:  (1) the trustee elected shall be considered to have been selected and appointed; and (2) the service shall terminate of any trustee previously appointed to fill the term of specified ineligible or incapacitated trustees. 
(Sec. 24) Amends the Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986 to extend until October 1, 2012, and October 1, 2013, respectively, the period during which specified portions of such Act regarding U.S. Trustees in bankruptcy and fees payable to them shall not apply to the judicial districts of Alabama and North Carolina (nor to cases pending in them). 
(Sec. 27) Amends Federal bankruptcy law to provide that the filing of certain bankruptcy petitions (including certain petitions under the Securities Investor Protection Act of 1970) does not operate as an automatic stay of a criminal enforcement of a judicial order requiring the payment of child support. 
(Sec. 28) Allows a debtor to exempt from his or her estate under State or local law an aggregate interest of no more than $500,000 in: (1) real or personal property used as a residence by either the debtor or a dependent; (2) a cooperative that owns property used as a residence by the debtor or a dependent; or (3) a burial plot for the debtor or a dependent. 
(Sec. 29) Confers exclusive authority upon the district court in the district in which a standing trustee in bankruptcy resides to review the Attorney General's determination of the trustee's actual, necessary expenses.  Requires such court to accord substantial deference to such determination.  Authorizes the court to reverse it only for abuse of discretion by the Attorney General. 
Provides that if the U.S. Trustee ceases assigning cases to a trustee, such trustee may seek judicial review of the decision in the district court in the district in which the trustee resides after exhausting all administrative remedies.  Requires such court to accord substantial deference to the U.S. Trustee's determination.  Authorizes the court to reverse it only for abuse of discretion by such Trustee. 
Authorizes the district court to order interim relief only if the court concludes, viewing all facts most favorably to the U.S. Trustee, that there was no basis for the Trustee's decision to cease assigning cases to the complainant trustee.  Declares the denial of a request for interim relief is final and not subject to further review.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bankruptcy Technical Corrections Act 
of 1996''.

SEC. 2. DEFINITIONS.

    Section 101 of title 11, United States Code, is amended--
            (1) by striking ``In this title--'' and inserting ``In this 
        title:'';
            (2) in paragraph (51B)--
                    (A) by inserting ``family farms or'' after ``other 
                than''; and
                    (B) by striking all after ``thereto'' and inserting 
                a semicolon;
            (3) by reordering the paragraphs so that the terms defined 
        in the section are in alphabetical order and redesignating the 
        paragraphs accordingly;
            (4) in paragraph (37)(B) (defining insured depository 
        institution), as redesignated by paragraph (3) of this section, 
        by striking ``paragraphs (21B) and (33)(A)'' and inserting 
        ``paragraphs (23) and (35)(A)'';
            (5) in each paragraph, by inserting a heading, the text of 
        which is comprised of the term defined in the paragraph;
            (6) by inserting ``The term'' after each paragraph heading; 
        and
            (7) by striking the semicolon at the end of each paragraph 
        and ``; and'' at the end of paragraphs (35) and (38) and 
        inserting a period.

SEC. 3. ADJUSTMENT OF DOLLAR AMOUNTS.

    Section 104 of title 11, United States Code, is amended by 
inserting ``522(f)(3),'' after ``522(d),'' each place it appears.

SEC. 4. COMPENSATION TO OFFICERS.

    Section 330(a) of title 11, United States Code, is amended--
            (1) in paragraph (1), by inserting ``, or the debtor's 
        attorney'' after ``1103''; and
            (2) in paragraph (3), by striking ``(3)(A) In'' and 
        inserting ``(3) In''.

SEC. 5. EFFECT OF CONVERSION.

    Section 348(f)(2) of title 11, United States Code, is amended by 
inserting ``of the estate'' after ``property'' the first place it 
appears.

SEC. 6. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

    Section 365 of title 11, United States Code, is amended--
            (1) in subsection (c)--
                    (A) in paragraph (2), by adding ``or'' at the end;
                    (B) in paragraph (3), by striking ``or'' at the end 
                and inserting a period; and
                    (C) by striking paragraph (4);
            (2) in subsection (d), by striking paragraphs (5) through 
        (9); and
            (3) in subsection (f)(1), by striking ``; except that'' and 
        all that follows through the end of the paragraph and inserting 
        a period.

SEC. 7. ALLOWANCE OF ADMINISTRATIVE EXPENSES.

    Section 503(b)(4) of title 11, United States Code, is amended by 
inserting ``subparagraph (A), (B), (C), (D), or (E) of'' before 
``paragraph (3)''.

SEC. 8. PRIORITIES.

    Section 507(a)(7) of title 11, United States Code, is amended by 
inserting ``unsecured'' after ``allowed''.

SEC. 9. EXEMPTIONS.

    Section 522 of title 11, United States Code, is amended--
            (1) in subsection (f)(1)(A)--
                    (A) in the matter preceding clause (i), by striking 
                ``; or'' at the end; and
                    (B) in clause (ii), by striking the period at the 
                end and inserting ``; or''; and
            (2) in subsection (g)(2), by striking ``subsection (f)(2)'' 
        and inserting ``subsection (f)(1)(B)''.

SEC. 10. EXCEPTIONS TO DISCHARGE.

    Section 523(a)(3) of title 11, United States Code, is amended by 
striking ``or (6)'' each place it appears and inserting ``(6), or 
(15)'';

SEC. 11. PROTECTION AGAINST DISCRIMINATORY TREATMENT.

    Section 525(c) of title 11, United States Code, is amended--
            (1) in paragraph (1), by inserting ``student'' before 
        ``grant'' the second place it appears; and
            (2) in paragraph (2), by striking ``the program operated 
        under part B, D, or E of'' and inserting ``any program operated 
        under''.

SEC. 12. PROPERTY OF THE ESTATE.

    Section 541(b)(4)(B)(ii) of title 11, United States Code (as added 
by section 208(b) of the Bankruptcy Reform Act of 1994), is amended by 
inserting ``365 or'' before ``542''.

SEC. 13. LIMITATIONS ON AVOIDING POWERS.

    Subsection (g) of section 546 of title 11, United States Code, as 
added by section 222(a) of the Bankruptcy Reform Act of 1994 (108 Stat. 
4129), is redesignated as subsection (h).

SEC. 14. LIABILITY OF TRANSFEREE OF AVOIDED TRANSFER.

    (a) In General.--Section 550(c) of title 11, United States Code, is 
amended--
            (1) in paragraph (1), by striking ``avoided under section 
        547(b)'' and inserting ``avoidable under section 547''; and
            (2) in the matter following paragraph (2), by striking 
        ``recover under subsection (a) from a transferee that is not an 
        insider'' and inserting ``avoid under section 547 such 
        transfer, to the extent that such transfer was made for the 
        benefit of a transferee that was not an insider at the time of 
        such transfer, or recover under subsection (a) from a 
        transferee that was not an insider at the time of such 
        transfer''.
    (b) Conforming Amendment.--Section 547(b) of title 11, United 
States Code, is amended by inserting ``or in section 550(c) of this 
title'' after ``subsection (c) of this section''.

SEC. 15. SETOFF.

    Section 553(b)(1) is amended by striking ``362(b)(14)'' and 
inserting ``362(b)(17)''.

SEC. 16. DISPOSITION OF PROPERTY OF THE ESTATE.

    Section 726(b) is amended by striking ``1009,''.

SEC. 17. GENERAL PROVISIONS.

    Section 901(a) of title 11, United States Code, is amended by 
inserting ``1123(d),'' after ``1123(b),''.

SEC. 18. PAYMENTS.

    Section 1226(b)(2) is amended--
            (1) by striking ``1202(c) of this title'' and inserting 
        ``586(b) of title 28''; and
            (2) by striking ``1202(d) of this title'' and inserting 
        ``586(e)(1)(B) of title 28''.

SEC. 19. DISCHARGE.

    Section 1228 of title 11, United States Code, is amended by 
striking ``1222(b)(10)'' each place it appears and inserting 
``1222(b)(9)''.

SEC. 20. CONTENTS OF PLAN.

    Section 1322 of title 11, United States Code, is amended--
            (1) in subsection (b), by striking ``(c)'' and inserting 
        ``(d)''; and
            (2) in subsection (e), by striking the comma after 
        ``default'' the second place it appears.

SEC. 21. DISCHARGE.

    Section 1328(a) of title 11, United States Code, is amended by 
striking all after ``except any debt--'' and inserting the following:
            ``(1) provided for under section 1322(b)(5) of this title;
            ``(2) of the kind specified in paragraph (5), (8), or (9) 
        of section 523(a) of this title; or
            ``(3) for restitution, or a criminal fine, included in a 
        sentence on the debtor's conviction of a crime.''.

SEC. 22. BANKRUPTCY REVIEW COMMISSION.

    Section 604 of the Bankruptcy Reform Act of 1994 (108 Stat. 4147) 
is amended--
            (1) by striking subsection (g); and
            (2) by redesignating subsection (h) as subsection (g).

SEC. 23. APPOINTMENT OF TRUSTEE.

    Section 1104(b) of title 11, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following new paragraph:
    ``(2)(A) If an eligible, disinterested trustee is elected at a 
meeting of creditors under paragraph (1), the United States trustee 
shall file a report certifying that election. Upon the filing of a 
report under the preceding sentence--
            ``(i) the trustee elected under paragraph (1) shall be 
        considered to have been selected and appointed for purposes of 
        this section; and
            ``(ii) the service of any trustee appointed under 
        subsection (d) shall terminate.
    ``(B) In the case of any dispute arising out of an election under 
subparagraph (A), the court shall resolve the dispute.''.

SEC. 24. EXTENSIONS.

    Section 302(d)(3) of the Bankruptcy, Judges, United States 
Trustees, and Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note) 
is amended--
            (1) in subparagraph (A), in the matter following clause 
        (ii), by striking ``October 1, 2002'' and inserting ``October 
        1, 2012''; and
            (2) in subparagraph (F)--
                    (A) in clause (i)--
                            (i) in subclause (II), by striking 
                        ``October 1, 2002'' and inserting ``October 1, 
                        2012''; and
                            (ii) in the matter following subclause 
                        (II), by striking ``October 1, 2003'' and 
                        inserting ``October 1, 2013''; and
                    (B) in clause (ii), in the matter following 
                subclause (II), by striking ``October 1, 2003'' and 
                inserting ``October 1, 2013''.

SEC. 25. KNOWING DISREGARD OF BANKRUPTCY LAW OR RULE.

    Section 156(a) of title 18, United States Code, is amended by 
striking ``case under this title'' and inserting ``case under title 
11''.

SEC. 26. BANKRUPTCY CASES AND PROCEEDINGS.

    Section 1334(d) of title 28, United States Code, is amended--
            (1) by striking ``made under this subsection'' and 
        inserting ``made under subsection (c)''; and
            (2) by striking ``This subsection'' and inserting 
        ``Subsection (c)''.

SEC. 27. ENFORCEMENT OF CHILD SUPPORT.

    Section 362(b)(1) of title 11, United States Code, is amended by 
inserting before the semicolon the following: ``(including the criminal 
enforcement of a judicial order requiring the payment of child 
support)''.

SEC. 28. LIMITATION.

    Section 522 of title 11, United States Code, as amended by section 
9, is further amended--
            (1) in subsection (b)(2)(A), by inserting ``subject to 
        subsection (n),'' before ``any property''; and
            (2) by adding at the end the following new subsection:
    ``(n) As a result of electing under subsection (b)(2)(A) to exempt 
property under State or local law, a debtor may not exempt an aggregate 
interest of more than $500,000 in value in--
            ``(1) real or personal property that the debtor or a 
        dependent of the debtor uses as a residence;
            ``(2) a cooperative that owns property that the debtor or a 
        dependent of the debtor uses as a residence; or
            ``(3) a burial plot for the debtor or a dependent of the 
        debtor.''.

SEC. 29. STANDING TRUSTEES.

    (a) Section 330 of title 11 of the United States Code is amended by 
adding to the end thereof the following:
    ``(e) Upon the request of a trustee appointed under section 586(b) 
of title 28, and after all available administrative remedies have been 
exhausted, the district court in the district in which the trustee 
resides shall have the exclusive authority, notwithstanding section 
326(b) of this title, to review the determination of the actual, 
necessary expenses of the standing trustee. In reviewing the 
determination, the district court shall accord substantial deference to 
the determination made by the Attorney General, and may reverse the 
determination only if the Attorney General has abused his or her 
discretion.''.
    (b) Section 324 of title 11, United States Code, is amended by 
adding to the end thereof the following:
    ``(c)(1) Notwithstanding any provision of section 586 of title 28, 
in the event the United States Trustee ceases assigning cases to a 
trustee appointed under section 586(b) of title 28, the trustee, after 
exhausting all available administrative remedies, may seek judicial 
review of the decision in the district court in the district in which 
the trustee resides. The district court shall accord substantial 
deference to the determination made by the United States Trustee, and 
may reverse the determination only if the United States Trustee has 
abused his or her discretion.
    ``(2) Notwithstanding any other provision of law, the district 
court may order interim relief under this paragraph only if the court 
concludes, viewing all facts most favorably to the United States 
Trustee, that there was no basis for the United States Trustee's 
decision to cease assigning cases to the trustee. The denial of a 
request for interim relief shall be final and shall not be subject to 
further review.''.

SEC. 30. EFFECTIVE DATE OF AMENDMENTS.

    (a) In General.--Except as provided in subsection (b) of this 
section, the amendments made by this Act shall apply to all cases 
pending on the date of enactment of this Act or commenced on or after 
the date of enactment of this Act.
    (b) Exception.--The amendment made by section 2(2)(B) of this Act 
shall apply to all cases commenced on or after the date of enactment of 
this Act.

            Passed the Senate August 2, 1996.

            Attest:

                                                    GARY SISCO,

                                                             Secretary.