II 

116TH CONGRESS 

2D SESSION S. 4479 

To amend title 11, United States Code, to change the treatment of certain 

rental obligations during bankruptcy. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 6, 2020 

Mr. TILLIS introduced the following bill; which was read twice and referred 

to the Committee on the Judiciary 

A BILL 

To amend title 11, United States Code, to change the 

treatment of certain rental obligations during bankruptcy. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. BANKRUPTCY AMENDMENTS. 

4 (a) EXECUTORY CONTRACTS AND UNEXPIRED

5 LEASES.— 

6 (1) IN GENERAL.—Section 365(d) of title 11, 

7 United States Code, is amended— 

8 (A) in paragraph (3)— 

9 (i) by inserting ‘‘(A)’’ after ‘‘(3)’’; 


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1 (ii) by inserting ‘‘, except as provided 

2 in subparagraph (B)’’ after ‘‘such 60-day 

3 period’’; and 

4 (iii) by adding at the end the fol5 lowing: 

6 ‘‘(B) In a case under subchapter V of chapter 11, 

7 the time for performance of an obligation described in sub8 paragraph (A) arising under any unexpired lease of non9 residential real property may be extended by the court if 

10 the debtor is experiencing or has experienced a material 

11 financial hardship due, directly or indirectly, to the 

12 coronavirus disease 2019 (COVID–19) pandemic until the 

13 earlier of— 

14 ‘‘(i) the date that is 60 days after the date of 

15 the order for relief, which may be extended by the 

16 court for an additional period of 60 days if the court 

17 determines that the debtor is continuing to experi18 ence a material financial hardship due, directly or 

19 indirectly, to the coronavirus disease 2019 (COVID– 

20 19) pandemic; or 

21 ‘‘(ii) the date on which the lease is assumed or 

22 rejected under this section. 

23 ‘‘(C) An obligation described in subparagraph (A) for 

24 which an extension is granted under subparagraph (B) 

25 shall be treated as an administrative expense described in 


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1 section 507(a)(2) in accordance with section 1191(e).’’; 

2 and 

3 (B) in paragraph (4), by striking ‘‘120’’ 

4 each place it appears and inserting ‘‘210’’. 

5 (2) SUNSET.— 

6 (A) IN GENERAL.—Effective on the date 

7 that is 2 years after the date of enactment of 

8 this Act, section 365(d) of title 11, United 

9 States Code, is amended— 

10 (i) in paragraph (3)— 

11 (I) by striking ‘‘(A)’’ after ‘‘(3)’’; 

12 (II) by striking ‘‘, except as pro13 vided in subparagraph (B)’’ after 

14 ‘‘such 60-day period’’; and 

15 (III) by striking subparagraphs 

16 (B) and (C); and 

17 (ii) in paragraph (4), by striking 

18 ‘‘210’’ each place it appears and inserting 

19 ‘‘120’’. 

20 (B) SUBCHAPTER V CASES FILED BEFORE

21 SUNSET.—Notwithstanding the amendments 

22 made by subparagraph (A), the amendments 

23 made by paragraph (1) shall apply in any case 

24 commenced under subchapter V of chapter 11 

25 of title 11, United States Code, before the date 


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1 that is 2 years after the date of enactment of 

2 this Act. 

3 (b) PREFERENCES.— 

4 (1) IN GENERAL.—Section 547 of title 11, 

5 United States Code, is amended— 

6 (A) in subsection (b), in the matter pre7 ceding paragraph (1), by striking ‘‘and (i)’’ and 

8 inserting ‘‘, (i), and (j)’’; and 

9 (B) by adding at the end the following: 

10 ‘‘(j)(1) In this subsection: 

11 ‘‘(A) The term ‘covered payment of rental ar12 rearages’ means a payment of arrearages that— 

13 ‘‘(i) is made in connection with an agree14 ment or arrangement— 

15 ‘‘(I) between the debtor and a lessor 

16 to defer or postpone the payment of rent 

17 and other periodic charges under a lease of 

18 nonresidential real property; and 

19 ‘‘(II) made or entered into on or after 

20 March 13, 2020; 

21 ‘‘(ii) does not exceed the amount of rental 

22 and other periodic charges agreed to under the 

23 lease of nonresidential real property described 

24 in clause (i)(I) before March 13, 2020; and 


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1 ‘‘(iii) does not include fees, penalties, or in2 terest in an amount greater than the amount of 

3 fees, penalties, or interest— 

4 ‘‘(I) scheduled to be paid under the 

5 lease of nonresidential real property de6 scribed in clause (i)(I); or 

7 ‘‘(II) that the debtor would owe if the 

8 debtor had made every payment due under 

9 the lease of nonresidential real property 

10 described in clause (i)(I) on time and in 

11 full before March 13, 2020. 

12 ‘‘(B) The term ‘covered payment of supplier ar13 rearages’ means a payment of arrearages that— 

14 ‘‘(i) is made in connection with an agree15 ment or arrangement— 

16 ‘‘(I) between the debtor and a supplier 

17 of goods or services to defer or postpone 

18 the payment of amounts due under an ex19 ecutory contract for goods or services; and 

20 ‘‘(II) made or entered into on or after 

21 March 13, 2020; 

22 ‘‘(ii) does not exceed the amount due 

23 under the executory contract described in clause 

24 (i)(I) before March 13, 2020; and 


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1 ‘‘(iii) does not include fees, penalties, or in2 terest in an amount greater than the amount of 

3 fees, penalties, or interest— 

4 ‘‘(I) scheduled to be paid under the 

5 executory contract described in clause 

6 (i)(I); or 

7 ‘‘(II) that the debtor would owe if the 

8 debtor had made every payment due under 

9 the executory contract described in clause 

10 (i)(I) on time and in full before March 13, 

11 2020. 

12 ‘‘(2) The trustee may not avoid a transfer under this 

13 section for— 

14 ‘‘(A) a covered payment of rental arrearages; or 

15 ‘‘(B) a covered payment of supplier arrear16 ages.’’. 

17 (2) SUNSET.— 

18 (A) IN GENERAL.—Effective on the date 

19 that is 2 years after the date of enactment of 

20 this Act, section 547 of title 11, United States 

21 Code, is amended— 

22 (i) in subsection (b), in the matter 

23 preceding paragraph (1), by striking ‘‘, (i), 

24 and (j)’’ and inserting ‘‘and (i)’’; and 

25 (ii) by striking subsection (j). 


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1 (B) CASES FILED BEFORE SUNSET.—Not2 withstanding the amendments made by sub3 paragraph (A), the amendments made by para4 graph (1) shall apply in any case commenced 

5 under title 11, United States Code, before the 

6 date that is 2 years after the date of enactment 

7 of this Act. 

Æ 


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