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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 833 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 110

106th CONGRESS

  1st Session

                               H. R. 833

_______________________________________________________________________

                                 AN ACT

  To amend title 11 of the United States Code, and for other purposes.

_______________________________________________________________________

                              May 12, 1999

                 Read twice and placed on the calendar
                                                       Calendar No. 110
106th CONGRESS
  1st Session
                                H. R. 833

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 6, 1999

                                Received

                              May 12, 1999

                 Read twice and placed on the calendar

_______________________________________________________________________

                                 AN ACT

 
  To amend title 11 of the United States Code, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Bankruptcy Reform 
Act of 1999''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                TITLE I--CONSUMER BANKRUPTCY PROVISIONS

                   Subtitle A--Needs based bankruptcy

Sec. 101. Conversion.
Sec. 102. Dismissal or conversion.
Sec. 103. Notice of alternatives.
Sec. 104. Debtor financial management training test program.
              Subtitle B--Consumer Bankruptcy Protections

Sec. 105. Definitions.
Sec. 106. Enforcement.
Sec. 107. Sense of the Congress.
Sec. 108. Discouraging abusive reaffirmation practices.
Sec. 109. Promotion of alternative dispute resolution.
Sec. 110. Enhanced disclosure for credit extensions secured by a 
                            dwelling.
Sec. 111. Dual use debit card.
Sec. 112. Enhanced disclosures under an open-end credit plan.
Sec. 113. Protection of savings earmarked for the postsecondary 
                            education of children.
Sec. 114. Effect of discharge.
Sec. 115. Limiting trustee liability.
Sec. 116. Reinforce the fresh start.
Sec. 117. Discouraging bad faith repeat filings.
Sec. 118. Curbing abusive filings.
Sec. 119. Debtor retention of personal property security.
Sec. 120. Relief from the automatic stay when the debtor does not 
                            complete intended surrender of consumer 
                            debt collateral.
Sec. 121. Giving secured creditors fair treatment in chapter 13.
Sec. 122. Restraining abusive purchases on secured credit.
Sec. 123. Fair valuation of collateral.
Sec. 124. Domiciliary requirements for exemptions.
Sec. 125. Restrictions on certain exempt property obtained through 
                            fraud.
Sec. 126. Rolling stock equipment.
Sec. 127. Discharge under chapter 13.
Sec. 128. Bankruptcy judgeships.
Sec. 129. Additional amendments to title 11, United States Code.
Sec. 130. Amendment to section 1325 of title 11, United States Code.
Sec. 131. Application of the codebtor stay only when the stay protects 
                            the debtor.
Sec. 132. Adequate protection for investors.
Sec. 133. Limitation on luxury goods.
Sec. 134. Allowing a debtor to retain leased personal property by 
                            assumption.
Sec. 135. Adequate protection of lessors and purchase money secured 
                            creditors.
Sec. 136. Automatic stay.
Sec. 137. Extend period between bankruptcy discharges.
Sec. 138. Definition of domestic support obligation.
Sec. 139. Priorities for claims for domestic support obligations.
Sec. 140. Requirements to obtain confirmation and discharge in cases 
                            involving domestic support obligations.
Sec. 141. Exceptions to automatic stay in domestic support obligation 
                            proceedings.
Sec. 142. Nondischargeability of certain debts for alimony, 
                            maintenance, and support.
Sec. 143. Continued liability of property.
Sec. 144. Protection of domestic support claims against preferential 
                            transfer motions.
Sec. 145. Clarification of meaning of household goods.
Sec. 146. Nondischargeable debts.
Sec. 147. Monetary limitation on certain exempt property.
Sec. 148. Bankruptcy fees.
Sec. 149. Collection of child support.
Sec. 150. Excluding employee benefit plan participant contributions and 
                            other property from the estate.
Sec. 151. Clarification of postpetition wages and benefits.
Sec. 152. Exceptions to automatic stay in domestic support obligation 
                            proceedings.
Sec. 153. Automatic stay inapplicable to certain proceedings against 
                            the debtor.
Sec. 154. Disclosures.
Sec. 155. Debtor's bill of rights.
                TITLE II--DISCOURAGING BANKRUPTCY ABUSE

Sec. 201. Reenactment of chapter 12.
Sec. 202. Meetings of creditors and equity security holders.
Sec. 203. Protection of retirement savings in bankruptcy.
Sec. 204. Protection of refinance of security interest.
Sec. 205. Executory contracts and unexpired leases.
Sec. 206. Creditors and equity security holders committees.
Sec. 207. Amendment to section 546 of title 11, United States Code.
Sec. 208. Limitation.
Sec. 209. Amendment to section 330(a) of title 11, United States Code.
Sec. 210. Postpetition disclosure and solicitation.
Sec. 211. Preferences.
Sec. 212. Venue of certain proceedings.
Sec. 213. Period for filing plan under chapter 11.
Sec. 214. Fees arising from certain ownership interests.
Sec. 215. Defaults based on nonmonetary obligations.
Sec. 216. Sharing of compensation.
Sec. 217. Priority for administrative expenses.
Sec. 218. Nondischargeability of certain educational benefits and 
                            loans.
           TITLE III--GENERAL BUSINESS BANKRUPTCY PROVISIONS

Sec. 301. Definition of disinterested person.
Sec. 302. Miscellaneous improvements.
Sec. 303. Extensions.
Sec. 304. Local filing of bankruptcy cases.
Sec. 305. Permitting assumption of contracts.
             TITLE IV SMALL BUSINESS BANKRUPTCY PROVISIONS

Sec. 401. Flexible rules for disclosure Statement and plan.
Sec. 402. Definitions.
Sec. 403. Standard form disclosure Statement and plan.
Sec. 404. Uniform national reporting requirements.
Sec. 405. Uniform reporting rules and forms for small business cases.
Sec. 406. Duties in small business cases.
Sec. 407. Plan filing and confirmation deadlines.
Sec. 408. Plan confirmation deadline.
Sec. 409. Prohibition against extension of time.
Sec. 410. Duties of the United States trustee.
Sec. 411. Scheduling conferences.
Sec. 412. Serial filer provisions.
Sec. 413. Expanded grounds for dismissal or conversion and appointment 
                            of trustee or examiner.
Sec. 414. Study of operation of title 11, United States Code, with 
                            respect to small businesses.
Sec. 415. Payment of interest.
                TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS

Sec. 501. Petition and proceedings related to petition.
Sec. 502. Applicability of other sections to chapter 9.
              TITLE VI--STREAMLINING THE BANKRUPTCY SYSTEM

Sec. 601. Creditor representation at first meeting of creditors.
Sec. 602. Audit procedures.
Sec. 603. Giving creditors fair notice in chapter 7 and 13 cases.
Sec. 604. Dismissal for failure to timely file schedules or provide 
                            required information.
Sec. 605. Adequate time to prepare for hearing on confirmation of the 
                            plan.
Sec. 606. Chapter 13 plans to have a 5-year duration in certain cases.
Sec. 607. Sense of the Congress regarding expansion of rule 9011 of the 
                            Federal Rules of Bankruptcy Procedure.
Sec. 608. Elimination of certain fees payable in chapter 11 bankruptcy 
                            cases.
Sec. 609. Study of bankruptcy impact of credit extended to dependent 
                            students.
Sec. 610. Prompt relief from stay in individual cases.
Sec. 611. Stopping abusive conversions from chapter 13.
Sec. 612. Bankruptcy appeals.
Sec. 613. GAO study.
Sec. 614. Compensating trustees.
                       TITLE VII--BANKRUPTCY DATA

Sec. 701. Improved bankruptcy statistics.
Sec. 702. Uniform rules for the collection of bankruptcy data.
Sec. 703. Sense of the Congress regarding availability of bankruptcy 
                            data.
                 TITLE VIII--BANKRUPTCY TAX PROVISIONS

Sec. 801. Treatment of certain liens.
Sec. 802. Effective notice to government.
Sec. 803. Notice of request for a determination of taxes.
Sec. 804. Rate of interest on tax claims.
Sec. 805. Tolling of priority of tax claim time periods.
Sec. 806. Priority property taxes incurred.
Sec. 807. Chapter 13 discharge of fraudulent and other taxes.
Sec. 808. Chapter 11 discharge of fraudulent taxes.
Sec. 809. Stay of tax proceedings.
Sec. 810. Periodic payment of taxes in chapter 11 cases.
Sec. 811. Avoidance of statutory tax liens prohibited.
Sec. 812. Payment of taxes in the conduct of business.
Sec. 813. Tardily filed priority tax claims.
Sec. 814. Income tax returns prepared by tax authorities.
Sec. 815. Discharge of the estate's liability for unpaid taxes.
Sec. 816. Requirement to file tax returns to confirm chapter 13 plans.
Sec. 817. Standards for tax disclosure.
Sec. 818. Setoff of tax refunds.
            TITLE IX--ANCILLARY AND OTHER CROSS-BORDER CASES

Sec. 901. Amendment to add chapter 15 to title 11, United States Code.
Sec. 902. Other amendments to titles 11 and 28, United States Code.
                 TITLE X--FINANCIAL CONTRACT PROVISIONS

Sec. 1001. Treatment of certain agreements by conservators or receivers 
                            of insured depository institutions.
Sec. 1002. Authority of the corporation with respect to failed and 
                            failing institutions.
Sec. 1003. Amendments relating to transfers of qualified financial 
                            contracts.
Sec. 1004. Amendments relating to disaffirmance or repudiation of 
                            qualified financial contracts.
Sec. 1005. Clarifying amendment relating to master agreements.
Sec. 1006. Federal Deposit Insurance Corporation Improvement Act of 
                            1991.
Sec. 1007. Bankruptcy Code amendments.
Sec. 1008. Recordkeeping requirements.
Sec. 1009. Exemptions from contemporaneous execution requirement.
Sec. 1010. Damage measure.
Sec. 1011. Sipc stay.
Sec. 1012. Asset-backed securitizations.
Sec. 1013. Federal Reserve collateral requirements.
Sec. 1014. Effective date; application of amendments.
                    TITLE XI--TECHNICAL CORRECTIONS

Sec. 1101. Definitions.
Sec. 1102. Adjustment of dollar amounts.
Sec. 1103. Extension of time.
Sec. 1104. Technical amendments.
Sec. 1105. Penalty for persons who negligently or fraudulently prepare 
                            bankruptcy petitions.
Sec. 1106. Limitation on compensation of professional persons.
Sec. 1107. Special tax provisions.
Sec. 1108. Effect of conversion.
Sec. 1109. Allowance of administrative expenses.
Sec. 1110. Priorities.
Sec. 1111. Exemptions.
Sec. 1112. Exceptions to discharge.
Sec. 1113. Effect of discharge.
Sec. 1114. Protection against discriminatory treatment.
Sec. 1115. Property of the estate.
Sec. 1116. Preferences.
Sec. 1117. Postpetition transactions.
Sec. 1118. Disposition of property of the estate.
Sec. 1119. General provisions.
Sec. 1120. Appointment of elected trustee.
Sec. 1121. Abandonment of railroad line.
Sec. 1122. Contents of plan.
Sec. 1123. Discharge under chapter 12.
Sec. 1124. Bankruptcy cases and proceedings.
Sec. 1125. Knowing disregard of bankruptcy law or rule.
Sec. 1126. Transfers made by nonprofit charitable corporations.
Sec. 1127. Prohibition on certain actions for failure to incur finance 
                            charges.
Sec. 1128. Protection of valid purchase money security interests.
Sec. 1129. Trustees.
      TITLE XII--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS

Sec. 1201. Effective date; application of amendments.

                TITLE I--CONSUMER BANKRUPTCY PROVISIONS

                   Subtitle A--Needs based bankruptcy

SEC. 101. CONVERSION.

    Section 706(c) of title 11, United States Code, is amended by 
inserting ``or consents to'' after ``requests''.

SEC. 102. DISMISSAL OR CONVERSION.

    (a) In General.--Section 707 of title 11, United States Code, is 
amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 707. Dismissal of a case or conversion to a case under chapter 
              13'';
        and
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' after ``(b)''; and
                    (B) in paragraph (1), as redesignated by 
                subparagraph (A) of this paragraph--
                            (i) in the first sentence--
                                    (I) by striking ``but not at the 
                                request or suggestion of'' and 
                                inserting ``the trustee, or'';
                                    (II) by inserting ``, or, with the 
                                debtor's consent, convert such a case 
                                to a case under chapter 13 of this 
                                title,'' after ``consumer debts''; and
                                    (III) by striking ``substantial 
                                abuse'' and inserting ``abuse''; and
                            (ii) by striking the second and third 
                        sentences and inserting the following:
    ``(2)(A)(i) In considering under paragraph (1) whether the granting 
of relief would be an abuse of the provisions of this chapter, the 
court shall presume abuse exists if the debtor's current monthly income 
less estimated administrative expenses and reasonable attorneys' fees, 
and amounts set forth in clauses (ii) for monthly expenses (which shall 
include, if applicable, the continuation of actual expenses of a 
dependent child under the age of 18 for tuition, books, and required 
fees at a private elementary or secondary school, not exceeding $10,000 
per year, which amount shall be adjusted pursuant to section 104(b)), 
(iii) for monthly payments on account of secured debts, and (iv) for 
monthly unsecured priority debt payments, and multiplied by 60 months 
is not less than $6,000.
    ``(ii) The debtor's monthly expenses shall be the debtor's 
applicable monthly expense amounts specified under the National 
Standards and Local Standards, and the debtor's actual monthly expenses 
for the categories specified as Other Necessary Expenses issued by the 
Internal Revenue Service for the area in which the debtor resides, as 
in effect on the date of the entry of the order for relief, for the 
debtor, the dependents of the debtor, and the spouse of the debtor in a 
joint case, if the spouse is not otherwise a dependent. In addition, if 
it is demonstrated that it is reasonable and necessary, the debtor may 
also subtract an allowance of up to 5% of the food and clothing 
categories as specified by the National Standards issued by the 
Internal Revenue Service. Notwithstanding any other provision of this 
clause, the debtor's monthly expenses shall not include any payments 
for debts.
    ``(iii) The debtor's average monthly payments on account of secured 
debts shall be calculated as the total of all amounts scheduled as 
contractually due to secured creditors in each month of the 60 months 
following the date of the petition, and dividing that total by 60 
months.
    ``(iv) The debtor's monthly unsecured priority debt payments 
(including payments for priority child support and alimony claims) 
shall be calculated as the total amount of unsecured debts entitled to 
priority, and dividing the total by 60 months.
    ``(v) For the purposes of this subsection, a family or household 
shall consist of the debtor, the debtor's spouse, and the debtor's 
dependents, but not a legally separated spouse unless the spouse files 
a joint case with the debtor.
    ``(B) In any motion filed under this subsection, the presumption of 
abuse may be rebutted only by demonstrating extraordinary circumstances 
that require additional expenses or adjustment of current monthly 
income. In order to establish extraordinary circumstances, the debtor 
must itemize each additional expense or adjustment of income and 
provide documentation for such expenses or adjustment of income and a 
detailed explanation of the extraordinary circumstances which make such 
expenses or adjustment of income necessary and reasonable. The debtor 
shall attest under oath to the accuracy of any information provided to 
demonstrate that additional expenses or adjustment to income are 
required. The presumption of abuse may be rebutted only if such 
additional expenses or adjustments to income cause the debtor's current 
monthly income less estimated administrative expenses and reasonable 
attorneys' fees, and the amounts set forth in clauses (ii), (iii), and 
(iv) of subparagraph (A) when multiplied by 60 to be less than $6,000.
    ``(C) No judge, United States trustee, panel trustee, bankruptcy 
administrator or other party in interest shall bring a motion under 
this paragraph if the debtor and the debtor's spouse combined, as of 
the date of the order for relief, have current monthly total income 
equal to or less than the regional median household monthly income 
calculated on a semiannual basis for a household of equal size. 
However, for a household of more than four individuals, the median 
income shall be that of a household of four individuals plus $583 for 
each additional member of that household.
    ``(3) In considering under paragraph (1) whether the granting of 
relief would be an abuse of the provisions of this chapter in a case in 
which the presumption in paragraph (2)(A)(i) does not apply or has been 
rebutted, the court shall consider--
            ``(A) whether the debtor filed the petition in bad faith; 
        or
            ``(B) the totality of the circumstances (including whether 
        the debtor seeks to reject a personal services contract and the 
        financial need for such rejection as sought by the debtor) of 
        the debtor's financial situation demonstrates abuse.
    ``(4)(A) If a panel trustee appointed under section 586(a)(1) of 
title 28 or bankruptcy administrator brings a motion for dismissal or 
conversion under this subsection and the court grants that motion and 
finds that the action of the counsel for the debtor in filing under 
this chapter violated Rule 9011, the court shall assess damages which 
may include ordering:
            ``(i) the counsel for the debtor to reimburse the trustee 
        for all reasonable costs, including reasonable attorneys' fees.
            ``(ii) the assessment of an appropriate civil penalty 
        against the counsel for the debtor; and
            ``(iii) the payment of the civil penalty to the panel 
        trustee, bankruptcy administrator or the United States trustee.
    ``(B) In the case of a petition filed under sections 301, 302, or 
303 of this title and supporting lists, schedules and documents filed 
under section 521(a)(1) of this title, the signature of an attorney on 
the petition shall constitute a certificate that the attorney has--
            ``(i) performed a reasonable investigation into the 
        circumstances that gave rise to the petition; and
            ``(ii) determined that the petition, lists, schedules, and 
        documents--
                    ``(I) are well grounded in fact; and
                    ``(II) are warranted by existing law or a good 
                faith argument for the extension, modification, or 
                reversal of existing law and do not constitute an abuse 
                under paragraph (1) of this subsection.
    ``(5) The court may award a debtor all reasonable costs in 
contesting a motion filed by a party in interest (not including a 
trustee or the United States trustee) under this subsection (including 
reasonable attorneys' fees) if--
            ``(A) the court does not grant the motion; and
            ``(B) the court finds that--
                    ``(i) the position of the party that brought the 
                motion was not substantially justified; or
                    ``(ii) the party brought the motion solely for the 
                purpose of coercing a debtor into waiving a right 
                guaranteed to the debtor under this title.
    ``(6) However, only the court, the United States trustee, or the 
trustee may file a motion to dismiss or convert a case under this 
subsection if the current monthly income of the debtor and the debtor's 
spouse combined, as of the date of the order for relief, when 
multiplied by 12, is less than the highest national median family 
income last reported by the Bureau of the Census for a family of equal 
or lesser size, or in the case of a household of one person, the 
national median household income for one earner. Notwithstanding the 
foregoing, the national median family income for a family of more than 
four individuals shall be the national median family income last 
reported by the Bureau of the Census for a family of four individuals 
plus $583 for each additional member of the family.
    ``(7) In making a determination whether to dismiss a case under 
this section, the court may not take into consideration whether a 
debtor has made, or continues to make, charitable contributions (that 
meet the definition of `charitable contribution' under section 
548(d)(3)) to any qualified religious or charitable entity or 
organization (as that term is defined in section 548(d)(4)).
    ``(8) Not later than 3 years after the date of the enactment of the 
Bankruptcy Reform Act of 1999, the Director of the Executive Office for 
United States Trustees shall submit a report, to the Committee on the 
Judiciary of the House of Representatives and the Committee on the 
Judiciary of the Senate, containing its findings regarding the 
utilization of the Internal Revenue Service standards for determining 
the current monthly expenses under section 707(b)(1)(A)(ii) of title 
11, United States Code, of debtors and the impact that the application 
of such standards has had on debtors and on the bankruptcy courts. Such 
report may include recommendations for amendments to such title, 
consistent with the Director's findings.''.
    (b) Definitions.--Section 101 of title 11, United States Code, is 
amended--
            (1) by inserting after paragraph (10) the following:
            ``(10A) `current monthly income' means the average monthly 
        income from all sources derived which the debtor, or in a joint 
        case, the debtor and the debtor's spouse, receive without 
        regard to whether it is taxable income, in the 180 days 
        preceding the date of determination, and includes any amount 
        paid by anyone other than the debtor or, in a joint case, the 
        debtor and the debtor's spouse, on a regular basis to the 
        household expenses of the debtor or the debtor's dependents 
        and, in a joint case, the debtor's spouse if not otherwise a 
        dependent, but excludes payments to victims of war crimes or 
        crimes against humanity and benefits received under the Social 
        Security Act;''; and
            (2) by inserting after paragraph (17) the following:
            ``(17A) `estimated administrative expenses and reasonable 
        attorneys' fees' means 10 percent of projected payments under a 
        chapter 13 plan;''.
    (c) Administrative Provisions.--Section 704 of title 11, United 
States Code, is amended--
            (1) in paragraph (8) by striking ``and'' at the end;
            (2) in paragraph (9) by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(10)(A) With respect to an individual debtor, the trustee 
        shall review all materials filed by the debtor, consider all 
        information presented at the first meeting of creditors, and 
        within 10 days after the first meeting of creditors file with 
        the court a statement as to whether or not the debtor's case 
        should be presumed to be an abuse under section 707(b) of this 
        title. The court shall provide a copy of such statement to all 
        creditors within 5 days after such statement is filed. If, 
        based on the filing of such statement with the court, the 
        trustee determines that the debtor's case should be presumed to 
        be an abuse under section 707(b) of this title and if the 
        current monthly income of the debtor and the debtor's spouse 
        combined, as of the date of the order for relief, when 
        multiplied by 12, is not less than the highest national median 
        family income reported for a family of equal or lesser size, or 
        in the case of a household of one person, the national median 
        household income for one earner, then the trustee shall within 
        30 days of the filing of such statement, either--
                    ``(i) file a motion to dismiss or convert under 
                section 707(b) of this title; or
                    ``(ii) file a statement setting forth the reasons 
                the trustee or bankruptcy administrator does not 
                believe that such a motion would be appropriate.
            ``(B) Notwithstanding subparagraph (A), for purposes of 
        this paragraph the national family income for a family of more 
        than four individuals shall be the national median family 
        income last reported by the Bureau of the Census for a family 
        of four individuals plus $583 for each additional member of the 
        family.''.
    (d) Debtor's Duties.--Section 521(a)(1)(B) of title 11, United 
States Code, as amended by section 603, is amended--
            (1) in clause (v) by striking ``and'' at the end;
            (2) in clause (vi) by adding ``and'' at the end; and
            (3) by inserting the following after clause (vi):
                            ``(vii) a statement of the debtor's current 
                        monthly income, and the calculations which 
                        determine whether a presumption arises under 
                        section 707(b)(2)(A)(i), showing how each 
                        amount is calculated.''.
    (e) Bankruptcy Forms.--Section 2075 of title 28, United States 
Code, is amended by adding the following at the end of the first 
paragraph:
``The bankruptcy rules promulgated under this section shall prescribe a 
form for the statement referred to in section 521(a)(1)(B)(vii) of 
title 11, United States Code, and may provide general rules on the 
content of such statement.''.
    (f) Chapter 13.--Section 1325(a) of title 11, United States Code, 
is amended--
            (1) in paragraph (5) by striking ``and'' at the end;
            (2) in paragraph (6) by striking the period and inserting 
        ``; and''; and
            (3) by inserting the following after paragraph (6):
            ``(7) the action of the debtor in filing the petition under 
        this chapter was in good faith.''.
    (g) Clerical Amendment.--The table of sections at the beginning of 
chapter 7 of title 11, United States Code, is amended by striking the 
item relating to section 707 and inserting the following:

``707. Dismissal of a case or conversion to a case under chapter 13.''.

SEC. 103. NOTICE OF ALTERNATIVES.

    Section 342(b) of title 11, United States Code, is amended to read 
as follows:
    ``(b) Before the commencement of a case under this title by an 
individual whose debts are primarily consumer debts, the clerk shall 
give to such individual written notice containing--
            ``(1) a brief description of--
                    ``(A) chapters 7, 11, 12, and 13 and the general 
                purpose, benefits, and costs of proceeding under each 
                of those chapters; and
                    ``(B) the types of services available from credit 
                counseling agencies; and
            ``(2) statements specifying that--
                    ``(A) a person who knowingly and fraudulently 
                conceals assets or makes a false oath or statement 
                under penalty of perjury in connection with a 
                bankruptcy case shall be subject to fine, imprisonment, 
                or both; and
                    ``(B) all information supplied by a debtor in 
                connection with a bankruptcy case is subject to 
                examination by the Attorney General.''.

SEC. 104. DEBTOR FINANCIAL MANAGEMENT TRAINING TEST PROGRAM.

    (a) Development of Financial Management and Training Curriculum and 
Materials.--The Director of the Executive Office for United States 
Trustees (in this section referred to as the ``Director'') shall 
consult with a wide range of individuals who are experts in the field 
of debtor education, including trustees who are appointed under chapter 
13 of title 11, United States Code, and who operate financial 
management education programs for debtors, and shall develop a 
financial management training curriculum and materials that can be used 
to educate individual debtors on how to better manage their finances.
    (b) Test--(1) The Director shall select 6 judicial districts of the 
United States in which to test the effectiveness of the financial 
management training curriculum and materials developed under subsection 
(a).
    (2) For a 18-month period beginning not later than 270 days after 
the date of the enactment of this Act, such curriculum and materials 
shall be, for the 6 judicial districts selected under paragraph (1), 
used as the instructional course concerning personal financial 
management for purposes of section 111 of title 11, United States Code.
    (c) Evaluation.--(1) During the 1-year period referred to in 
subsection (b), the Director shall evaluate the effectiveness of--
            (A) the financial management training curriculum and 
        materials developed under subsection (a); and
            (B) a sample of existing consumer education programs such 
        as those described in the Report of the National Bankruptcy 
        Review Commission (October 20, 1997) that are representative of 
        consumer education programs carried out by the credit industry, 
        by trustees serving under chapter 13 of title 11, United States 
        Code, and by consumer counselling groups.
    (2) Not later than 3 months after concluding such evaluation, the 
Director shall submit a report to the Speaker of the House of 
Representatives and the President pro tempore of the Senate, for 
referral to the appropriate committees of the Congress, containing the 
findings of the Director regarding the effectiveness of such 
curriculum, such materials, and such programs and their costs.

              Subtitle B--Consumer Bankruptcy Protections

SEC. 105. DEFINITIONS.

    (a) Definitions.--Section 101 of title 11, United States Code, is 
amended--
            (1) by inserting after paragraph (2) the following:
            ``(3) `assisted person' means any person whose debts 
        consist primarily of consumer debts and whose non-exempt assets 
        are less than $150,000;'';
            (2) by inserting after paragraph (4) the following:
            ``(4A) `bankruptcy assistance' means any goods or services 
        sold or otherwise provided to an assisted person with the 
        express or implied purpose of providing information, advice, 
        counsel, document preparation or filing, or attendance at a 
        creditors' meeting or appearing in a proceeding on behalf of 
        another or providing legal representation with respect to a 
        proceeding under this title;''; and
            (3) by inserting after paragraph (12A) the following:
            ``(12B) `debt relief agency' means any person who provides 
        any bankruptcy assistance to an assisted person in return for 
        the payment of money or other valuable consideration, or who is 
        a bankruptcy petition preparer pursuant to section 110 of this 
        title, but does not include any person that is any of the 
        following or an officer, director, employee or agent thereof--
                    ``(A) any nonprofit organization which is exempt 
                from taxation under section 501(c)(3) of the Internal 
                Revenue Code of 1986;
                    ``(B) any creditor of the person to the extent the 
                creditor is assisting the person to restructure any 
                debt owed by the person to the creditor; or
                    ``(C) any depository institution (as defined in 
                section 3 of the Federal Deposit Insurance Act) or any 
                Federal credit union or State credit union (as those 
                terms are defined in section 101 of the Federal Credit 
                Union Act), or any affiliate or subsidiary of such a 
                depository institution or credit union;''.
    (b) Conforming Amendment.--In section 104(b)(1) by inserting 
``101(3),'' after ``sections''.

SEC. 106. ENFORCEMENT.

    (a) Enforcement.--Subchapter II of chapter 5 of title 11, United 
States Code, is amended by adding at the end the following:
``Sec. 526. Debt relief agency enforcement
    ``(a) A debt relief agency shall not--
            ``(1) fail to perform any service which the debt relief 
        agency has told the assisted person or prospective assisted 
        person the agency would provide that person in connection with 
        the preparation for or activities during a case or proceeding 
        under this title;
            ``(2) make any statement, or counsel or advise any assisted 
        person to make any statement in any document filed in a case or 
        proceeding under this title, which is untrue and misleading or 
        which upon the exercise of reasonable care, should be known by 
        the debt relief agency to be untrue or misleading;
            ``(3) misrepresent to any assisted person or prospective 
        assisted person, directly or indirectly, affirmatively or by 
        material omission, what services the debt relief agency can 
        reasonably expect to provide that person, or the benefits an 
        assisted person may obtain or the difficulties the person may 
        experience if the person seeks relief in a proceeding pursuant 
        to this title; or
            ``(4) advise an assisted person or prospective assisted 
        person to incur more debt in contemplation of that person 
        filing a case under this title or in order to pay an attorney 
        or bankruptcy petition preparer fee or charge for services 
        performed as part of preparing for or representing a debtor in 
        a case under this title.''.
    ``(b) Assisted Person Waivers Invalid.--Any waiver by any assisted 
person of any protection or right provided by or under this section 
shall not be enforceable against the debtor by any Federal or State 
court or any other person, but may be enforced against a debt relief 
agency.
    ``(c) Noncompliance.--
            ``(1) Any contract between a debt relief agency and an 
        assisted person for bankruptcy assistance which does not comply 
        with the material requirements of this section shall be treated 
        as void and may not be enforced by any Federal or State court 
        or by any other person.
            ``(2) Any debt relief agency shall be liable to an assisted 
        person in the amount of any fees or charges in connection with 
        providing bankruptcy assistance to such person which the debt 
        relief agency has received, for actual damages, and for 
        reasonable attorneys' fees and costs if the debt relief agency 
        is found, after notice and hearing, to have--
                    ``(A) intentionally or negligently failed to comply 
                with any provision of this section with respect to a 
                bankruptcy case or related proceeding of the assisted 
                person;
                    ``(B) provided bankruptcy assistance to an assisted 
                person in a case or related proceeding which is 
                dismissed or converted because of the debt relief 
                agency's intentional or negligent failure to file 
                bankruptcy papers, including papers specified in 
                section 521 of this title; or
                    ``(C) intentionally or negligently disregarded the 
                material requirements of this title or the Federal 
                Rules of Bankruptcy Procedure applicable to such debt 
                relief agency.
            ``(3) In addition to such other remedies as are provided 
        under State law, whenever the chief law enforcement officer of 
        a State, or an official or agency designated by a State, has 
        reason to believe that any person has violated or is violating 
        this section, the State--
                    ``(A) may bring an action to enjoin such violation;
                    ``(B) may bring an action on behalf of its 
                residents to recover the actual damages of assisted 
                persons arising from such violation, including any 
                liability under paragraph (2); and
                    ``(C) in the case of any successful action under 
                subparagraph (A) or (B), shall be awarded the costs of 
                the action and reasonable attorney fees as determined 
                by the court.
            ``(4) The United States District Court for any district 
        located in the State shall have concurrent jurisdiction of any 
        action under subparagraph (A) or (B) of paragraph (3).
            ``(5) Notwithstanding any other provision of Federal law 
        and in addition to any other remedy provided under Federal or 
        State law, if the court, on its own motion or on the motion of 
        the United States trustee or the debtor, finds that a person 
        intentionally violated this section, or engaged in a clear and 
        consistent pattern or practice of violating this section, the 
        court may--
                    ``(A) enjoin the violation of such section; or
                    ``(B) impose an appropriate civil penalty against 
                such person.
    ``(c) Relation to State Law.--This section shall not annul, alter, 
affect or exempt any person subject to those sections from complying 
with any law of any State except to the extent that such law is 
inconsistent with those sections, and then only to the extent of the 
inconsistency.''.
    (b) Conforming Amendment.--The table of sections for chapter 5 of 
title 11, United States Code, is amended by inserting after the item 
relating to section 527, the following:

``526. Debt relief agency enforcement.''.

SEC. 107. SENSE OF THE CONGRESS.

    It is the sense of the Congress that States should develop 
curricula relating to the subject of personal finance, designed for use 
in elementary and secondary schools.

SEC. 108. DISCOURAGING ABUSIVE REAFFIRMATION PRACTICES.

    Section 524 of title 11, United States Code, is amended--
            (1) in subsection (c)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A) by striking ``and'' 
                        at the end;
                            (ii) in subparagraph (B) by adding ``and'' 
                        at the end; and
                            (iii) by adding at the end the following:
            ``(C) if the consideration for such agreement is based on a 
        wholly unsecured consumer debt (except for debts owed to 
        creditors defined in section 461(b)(1)(A)(iv) of title 12, 
        United States Code), such agreement contains a clear and 
        conspicuous statement which advises the debtor--
                    ``(i) that the debtor is entitled to a hearing 
                before the court at which the debtor shall appear in 
                person and at which the court will decide whether the 
                agreement is an undue hardship, not in the debtor's 
                best interest, and not the result of a threat by the 
                creditor to take any action that cannot be legally 
                taken or that is not intended to be taken; and
                    ``(ii) that if the debtor is represented by 
                counsel, the debtor may waive the debtor's right to 
                such a hearing by signing a statement waiving the 
                hearing, stating that the debtor is represented by 
                counsel, and identifying such counsel;''; and
                    (B) in paragraph (6)(A)--
                            (i) by striking ``and'' at the end of 
                        clause (i);
                            (ii) by striking the period at the end of 
                        clause (ii) and inserting ``; and''; and
                            (iii) by adding at the end thereof the 
                        following:
                    ``(iii) not entered into by the debtor as the 
                result of a threat by the creditor to take any action 
                that cannot be legally taken or that is not intended to 
                be taken.''; and
            (2) in the third sentence of subsection (d)--
                    (A) by striking ``of this section'' and inserting a 
                comma; and
                    (B) by inserting after ``such agreement'' the 
                following:
``or if the consideration for such agreement is based on a wholly 
unsecured consumer debt (except for debts owed to creditors defined in 
section 461(b)(1)(A)(iv) of title 12, United States Code) and the 
debtor has not waived the debtor's right to a hearing on the agreement 
in accordance with subsection (c)(2)(C) of this section''.

SEC. 109. PROMOTION OF ALTERNATIVE DISPUTE RESOLUTION.

    (a) Reduction of Claim.--Section 502 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(k)(1) The court, on the motion of the debtor and after a 
hearing, may reduce a claim filed under this section based wholly on 
unsecured consumer debts by not more than 20 percent, if the debtor can 
prove by clear and convincing evidence that the claim was filed by a 
creditor who unreasonably refused to negotiate a reasonable alternative 
repayment schedule proposed by an approved credit counseling agency 
acting on behalf of the debtor, and if--
            ``(A) such offer was made within the period beginning 60 
        days before the filing of the petition;
            ``(B) such offer provided for payment of at least 60 
        percent of the amount of the debt over a period not to exceed 
        the repayment period of the loan, or a reasonable extension 
        thereof; and
            ``(C) no part of the debt under the alternative repayment 
        schedule is nondischargeable, is entitled to priority under 
        section 507 of this title, or would be paid a greater 
        percentage in a chapter 13 proceeding than offered by the 
        debtor.
    ``(2) The debtor shall have the burden of proving that the proposed 
alternative repayment schedule was made in the 60-day period specified 
in subparagraph (A) and that the creditor unreasonably refused to 
consider the debtor's proposal.''.
    (b) Limitation on Avoidability.--Section 547 of title 11, United 
States Code, is amended by adding at the end the following:
    ``(h) The trustee may not avoid a transfer if such transfer was 
made as a part of an alternative repayment plan between the debtor and 
any creditor of the debtor created by an approved credit counseling 
agency.''.

SEC. 110. ENHANCED DISCLOSURE FOR CREDIT EXTENSIONS SECURED BY A 
              DWELLING.

    (a) Study Required.--During the period beginning 180 days after the 
date of the enactment of this Act and ending 18 months after the date 
of the enactment, the Board of Governors of the Federal Reserve System 
(in this section referred to as the ``Board'') shall conduct a study 
and submit to Congress a report (including recommendations for any 
appropriate legislation) regarding--
            (1) whether a consumer engaging in an open-end credit 
        transaction (as defined pursuant to section 103 of the Truth in 
        lending Act) secured by the consumer's principal dwelling is 
        provided adequate information under Federal law, including 
        under section 127A of the Truth in Lending Act, regarding the 
        tax deductibility of interest paid on such transaction; and
            (2) whether a consumer engaging in a closed-end credit 
        transaction (as defined pursuant to section 103 of the Truth in 
        Lending Act) secured by the consumer's principal dwelling is 
        provided adequate information regarding the tax deductibility 
        of interest paid on such transaction.
In conducting such study, the Board shall specifically consider whether 
additional disclosures are necessary with respect to such open-end or 
closed-end credit transactions in which the amount of the credit 
extended exceeds the fair market value of the dwelling.
    (b) Regulations.--If the Board determines that additional 
disclosures are necessary in connection with transactions described in 
subsection (a), the Board, pursuant to its authority under the Truth in 
Lending Act, may promulgate regulations that would require such 
additional disclosures. Any such regulations promulgated by the Board 
under this section shall not take effect before the end of the 36-month 
period after the date of the enactment of this Act.

SEC. 111. DUAL USE DEBIT CARD.

    (a) Study Required.--The Board of Governors of the Federal Reserve 
System (in this section referred to as the ``Board'') shall conduct a 
study of existing protections provided to consumers to limit their 
liability for unauthorized use of a debit card or similar access 
device.
    (b) Specific Considerations.--In conducting the study required by 
subsection (a), the Board shall specifically consider the following--
            (1) the extent to which existing provisions of section 909 
        of the Electronic Fund Transfer Act and the Board's 
        implementing regulations provide adequate unauthorized use 
        liability protection for consumers;
            (2) the extent to which any voluntary industry rules have 
        enhanced the level of protection afforded consumers in 
        connection with such unauthorized use liability; and
            (3) whether amendments to the Electronic Funds Transfer Act 
        or the Board's implementing regulations thereto are necessary 
        to provide adequate protection for consumers in this area.
    (c) Report and Regulations.--Not later than 2 years after the date 
of the enactment of this Act, the Board shall make public a report on 
its findings with respect to the adequacy of existing protections 
afforded consumers with respect to unauthorized-use liability for debit 
cards and similar access devices. If the Board determines that such 
protections are inadequate, the Board, pursuant to its authority under 
the Electronic Funds Transfer Act, may issue regulations to address 
such inadequacy. Any regulations issued by the Board shall not be 
effective before 36 months after the date of the enactment of this Act.

SEC. 112. ENHANCED DISCLOSURES UNDER AN OPEN-END CREDIT PLAN.

    (a) Initial and Annual Minimum Payment Disclosure.--Section 127(a) 
of the Truth in Lending Act (15 U.S.C. 1637(a)) is amended by adding at 
the end the following:
            ``(9) In the case of any credit or charge card account 
        under an open-end consumer credit plan on which a minimum 
        monthly or periodic payment will be required, other than an 
        account described in paragraph (8)--
                    ``(A) the following statement: `The minimum payment 
                amount shown on your billing statement is the smallest 
                payment which you can make in order to keep the account 
                in good standing. This payment option is offered as a 
                convenience and you may make larger payments at any 
                time. Making only the minimum payment each month will 
                increase the amount of interest you pay and the length 
                of time it takes to repay your outstanding balance.';
                    ``(B) if the plan provides that the consumer will 
                be permitted to forgo making a minimum payment during a 
                specified billing cycle, a statement, if applicable, 
                that if the consumer chooses to forgo making the 
                minimum payment, finance charges will continue to 
                accrue; and
                    ``(C) the following examples:
                            ``(i) if the average account balance under 
                        a creditor's open-end consumer credit plan, 
                        taken as an average of the account balances for 
                        all consumer accounts under that open-end 
                        consumer credit plan, is $1,000 or less, two 
                        examples, based on an annual percentage rate 
                        and method for determining minimum periodic 
                        payments recently in effect for that creditor, 
                        and based on outstanding balances of $250 and 
                        $500, showing the estimated minimum periodic 
                        payments, and the estimated period of time it 
                        would take to repay those outstanding balances 
                        of $250 and $500, if the consumer paid only the 
                        minimum periodic payment on each monthly or 
                        periodic statement and obtained no additional 
                        extensions of credit; or
                            ``(ii) if the average account balance under 
                        a creditor's open-end consumer credit plan, 
                        taken as an average of the account balances for 
                        all consumer accounts under that open-end 
                        consumer credit plan, is more than $1,000, 
                        three examples, based on an annual percentage 
                        rate and method for determining minimum 
                        periodic payments recently in effect for that 
                        creditor, and outstanding balances of $1,000, 
                        $1,500 and $2,000, showing the estimated 
                        minimum periodic payments, and the estimated 
                        period of time it would take to repay those 
                        outstanding balances of $1,000, $1,500 and 
                        $2,000 if the consumer paid only the minimum 
                        periodic payment on each monthly or periodic 
                        statement and obtained no additional extensions 
                        of credit.
            ``(10) With respect to one billing cycle per calendar year, 
        the creditor shall transmit to each consumer to whom the 
        creditor is required to transmit a statement pursuant to 
        subsection (b) for such billing cycle the following 
        information:
                    ``(A) the following statement: `The minimum payment 
                amount shown on your billing statement is the smallest 
                payment which you can make in order to keep the account 
                in good standing. This payment option is offered as a 
                convenience and you may make larger payments at any 
                time. Making only the minimum payment each month will 
                increase the amount of interest you pay and the length 
                of time it takes to repay your outstanding balance.';
                    ``(B) if the plan provides that the consumer will 
                be permitted to forgo making a minimum payment during a 
                specified billing cycle, a statement, if applicable, 
                that if the consumer chooses to forgo making the 
                minimum payment, finance charges will continue to 
                accrue;
                    ``(C) an example, based on an annual percentage 
                rate and method for determining minimum periodic 
                payments recently in effect for that creditor, and a 
                $500 outstanding balance, showing the estimated minimum 
                periodic payment, and the estimated period of time it 
                would take to repay the $500 outstanding balance if the 
                consumer paid only the minimum periodic payment on each 
                monthly or periodic statement and obtained no 
                additional extensions of credit; and
                    ``(D) a worksheet prescribed by the Board to assist 
                the consumer in determining the consumer's household 
                income and debt obligations.''.
    (b) Periodic Minimum Payment Disclosures.--Section 127(b) of the 
Truth in Lending Act (15 U.S.C. 1637(b)) is amended by adding at the 
end the following:
            ``(11) The following statement: `The minimum payment amount 
        shown on your billing statement is the smallest payment which 
        you can make in order to keep the account in good standing. 
        This payment option is offered as a convenience and you may 
        make larger payments at any time. Making only the minimum 
        payment each month will increase the amount of interest you pay 
        and the length of time it takes to repay your outstanding 
        balance.'.
            ``(12) the required minimum payment amount represented as a 
        dollar figure.
            ``(13) the date by which or the period within which the 
        required minimum payment must be made.''.
    (c) Disclosures Related to Introductory Rates.--Section 
127(c)(1)(A)(i) of the Truth in Lending Act (15 U.S.C. 
1637(c)(1)(A)(i)) is amended by inserting the following at the end of 
subclause (III):
                            ``(IV) Where the initial rate is temporary 
                        and will expire within a period of less than 1 
                        year, and is lower than the rate that will 
                        apply after the temporary rate expires--
                                    ``(A) the time period during which 
                                the initial rate will remain in effect; 
                                and
                                    ``(B) the annual percentage rate 
                                that will apply to the account after 
                                the temporary rate expires, or if that 
                                rate is a variable rate, the fact that 
                                the rate is variable, the rate at the 
                                time of mailing, and how the rate is 
                                determined.
                            ``(V)(A) Subject to subclauses (C) and (D), 
                        where the initial rate may increase upon the 
                        occurrence of one or more specific events, the 
                        following information:
                                    ``(i) the initial rate and the 
                                increased rate that may apply;
                                    ``(ii) if the increased rate is a 
                                variable rate, the fact that the 
                                increased rate is variable, the rate at 
                                the time of mailing, and how the rate 
                                is determined; and
                                    ``(iii) the specific event or 
                                events that may result in imposing the 
                                increased rate.
                            ``(B) At the creditor's option, the 
                        creditor may disclose the period for which the 
                        increased rate will remain in effect.
                            ``(C) If the increased rate cannot be 
                        determined at the time disclosures are given, 
                        an explanation of the specific event or events 
                        that may result in an increased rate must be 
                        disclosed.
                            ``(D) A creditor is not required to 
                        disclose an increased rate that is imposed when 
                        credit privileges are permanently 
                        terminated.''.
    (d) Internet-Based Credit Card Solicitations.--(1)--Section 127(c) 
of the Truth in Lending Act (15 U.S.C. 1637(c)) is amended by inserting 
after paragraph (5) the following:
            ``(6)(A) Any application to open a credit card account for 
        any person under an open-end consumer credit plan, and any 
        solicitation to open such an account without requiring an 
        application, that is made available through the Internet or an 
        interactive computer service, shall disclose the following:
                    ``(i) the information.--
                            ``(I) described in paragraph (1)(A) in the 
                        form required under section 122(c) of this 
                        chapter, subject to subsection (e); and
                            ``(II) described in paragraph (1)(B) in a 
                        clear and conspicuous form, subject to 
                        subsections (e) and (f);
                    ``(ii) a statement, in a conspicuous and prominent 
                location on or with the application or solicitation, 
                that--
                            ``(I) the information is accurate as of the 
                        date the application or solicitation was 
                        posted;
                            ``(II) the information contained in the 
                        application or solicitation is subject to 
                        change after such date;
                            ``(III) the applicant should contact the 
                        creditor for information on any change in the 
                        information presented on or with the 
                        application or solicitation since it was 
                        posted;
                    ``(iii) a clear and conspicuous disclosure of the 
                date the application or solicitation was posted and how 
                frequently the information described in subclause (i) 
                is updated; and
                    ``(iv) a disclosure, in a conspicuous and prominent 
                location on or with the application or solicitation, of 
                a toll-free telephone number or e-mail address at which 
                the applicant may contact the creditor to obtain any 
                change in the information provided on or with the 
                application or solicitation since it was posted.
    ``(B) The disclosures required under subparagraph (A) may be 
contained either:
            ``(i) on the webpage which contains the application or 
        solicitation; or
            ``(ii) on a separate webpage which can be directly accessed 
        using a hypertext link which is contained on the webpage which 
        contains the application or solicitation.
    ``(C) Upon receipt of a request for any of the information referred 
to in subparagraph (A), the creditor or its agent shall promptly 
disclose any change in the information required to be disclosed under 
subparagraph (A).
    ``(D) For purposes of this paragraph (6)--
            ``(i) the term `Internet' means the international computer 
        network of both Federal and non-Federal interoperable packets 
        switched data networks; and
            ``(ii) the term `interactive computer service' means any 
        information service system, or access software provider that 
        provides or enables computer access by multiple users to a 
        computer server, including specifically a service or system 
        that provides access to the Internet and such systems operated 
        or services offered by libraries or educational 
        institutions.''.
    (2) Section 122(c)(1) of the Truth in Lending Act (15 U.S.C. 
1632(c)(1)) is amended by striking ``and (4)(C)(i)(I)'' and inserting 
``, (4)(C)(i)(I) and (6)(A)(i)(I)''.
    (e) Enforcement.--Section 127 of the Truth in Lending Act (15 
U.S.C. 1637) is amended by adding at the end the following:
    ``(h) In promulgating regulations to implement the disclosure of an 
example required under subsection (a)(9)(C) and (a)(10), the Board 
shall set forth a model disclosure to accompany the example stating 
that the credit features shown are only an example which does not 
obligate the creditor, but is intended to illustrate the approximate 
length of time it could take to repay using the assumptions set forth 
in subsection (a)(9)(C) without regard to any other factors that could 
impact an approximate repayment period, including other credit features 
or the consumer's payment or other behavior with respect to the 
account. Compliance with the disclosures required under subsection 
(a)(9)(C) and (a)(10) shall be enforced exclusively by the Federal 
agencies set forth in section 108.''.
    (f) Regulatory Implementation.--The Board of Governors of the 
Federal Reserve System (in this section referred to as the ``Board'') 
shall promulgate regulations implementing the amendments made by 
subsections (a) and (b). Such regulations shall take effect no earlier 
than the end of the 36-month period beginning on the date of the 
enactment of this Act.
    (g) Study Required.--The Board shall conduct a study to determine 
whether consumers have adequate information about borrowing activities 
which may result in financial problems. In studying this issue, the 
Board shall consider the extent to which--
            (1) consumers, in establishing new credit arrangements, are 
        aware of their existing payment obligations, the need to 
        consider those obligations in deciding to take on new credit, 
        and how taking on excessive credit can result in financial 
        difficulty;
            (2) minimum periodic payment features offered in connection 
        with open-end credit plans impact consumer default rates;
            (3) consumers always make only the minimum payment 
        throughout the life of the plan;
            (4) consumers are aware that making only minimum payments 
        will increase the cost and repayment period of an open-end 
        loan; and
            (5) the availability of low minimum payment options is a 
        cause of consumers experiencing financial difficulty.
    (h) Report to Congress.--Before the end of the 2-year period 
beginning on the date of the enactment of this Act, the Board shall 
submit to Congress a report containing the findings of the Board in 
connection with the study required under subsection (g).
    (i) Regulations.--The Board shall, by regulation promulgated 
pursuant to its authority under the Truth in Lending Act, require 
additional disclosures to consumers regarding minimum payment features, 
including periodic statement disclosures, if the Board determines that 
such disclosures are necessary based on its findings. Any such 
regulations promulgated by the Board shall not take effect earlier than 
January 1, 2002.

SEC. 113. PROTECTION OF SAVINGS EARMARKED FOR THE POSTSECONDARY 
              EDUCATION OF CHILDREN.

    Section 522 of title 11, United States Code, is amended--
            (1) in subsection (b)(2)--
                    (A) in subparagraph (A) by striking ``and'' at the 
                end;
                    (B) in subparagraph (B) by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(C) except as provided in paragraph (n), funds placed in 
        an education individual retirement account (as defined in 
        section 530(b)(1) of the Internal Revenue Code of 1986) not 
        less than 365 days before the date of entry of the order of 
        relief but only to the extent such funds--
                    ``(i) are not pledged or promised to any entity in 
                connection with any extension of credit; and
                    ``(ii) are not excess contributions (as described 
                in section 4973(e) of the Internal Revenue Code of 
                1986).''; and
            (2) by adding at the end the following:
    ``(n) For purposes of subsection (b)(3)(C), funds placed in an 
education individual retirement account shall not be exempt under this 
subsection--
            ``(1) unless the designated beneficiary of such account was 
        a dependent child of the debtor for the taxable year for which 
        the funds were placed in such account; and
            ``(2) to the extent such funds exceed--
                    ``(A) $50,000 in the aggregate in all such accounts 
                having the same designated beneficiary; or
                    ``(B) $100,000 in the aggregate in all such 
                accounts attributable to all such dependent children of 
                the debtor.''.

SEC. 114. EFFECT OF DISCHARGE.

    Section 524 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(i) The willful failure of a creditor to credit payments received 
under a plan confirmed under this title (including a plan of 
reorganization confirmed under chapter 11 of this title) in the manner 
required by the plan (including crediting the amounts required under 
the plan) shall constitute a violation of any injunction under 
subsection (a)(2) which has arisen at the time of the failure.
    ``(j)(1) An individual who is injured by the willful failure of a 
creditor to comply with the requirements for a reaffirmation agreement 
under subsections (c) and (d), or by any willful violation of the 
injunction under subsection (a)(2), shall be entitled to recover--
            ``(A) the greater of--
                    ``(i) the amount of actual damages; or
                    ``(ii) $1,000; and
            ``(B) costs and attorneys' fees.
    ``(2) An action to recover for a violation specified in paragraph 
(1) may not be brought as a class action.''.

SEC. 115. LIMITING TRUSTEE LIABILITY.

    (a) Qualification of Trustee.--Section 322 of title 11, United 
States Code, is amended--
            (1) in subsection (a) by adding at the end the following:
        ``The trustee in a case under this title is not liable 
        personally or on such trustee's bond for acts taken within the 
        scope of the trustee's duties or authority as delineated by 
        other sections of this title or by order of the court, except 
        to the extent that the trustee acted with gross negligence. 
        Gross negligence shall be defined as reckless indifference or 
        deliberate disregard of the trustee's fiduciary duty.''; and
            (2) in subsection (c) by inserting ``for any acts within 
        the scope of the trustee's authority defined in subsection 
        (a)'' before the period at the end.
    (b) Role and Capacity of Trustee.--Section 323 of title 11, United 
States Code, is amended--
            (1) in subsection (b) by inserting at the end the 
        following: ``in the trustee's official capacity as 
        representative of the estate'' before the period at the end; 
        and
            (2) by adding at the end the following:
    ``(c) The trustee in a case under this title may not be sued, 
either personally, in a representative capacity, or against the 
trustee's bond in favor of the United States--
            ``(1) for acts taken in furtherance of the trustee's duties 
        or authority in a case in which the debtor is subsequently 
        determined to be ineligible for relief under the chapter in 
        which the trustee was appointed; or
            ``(2) for the dissemination of statistics and other 
        information regarding a case or cases, unless the trustee has 
        actual knowledge that the information is false.
    ``(d) The trustee in a case under this title may not be sued in a 
personal capacity without leave of the bankruptcy court in which the 
case is pending.''.

SEC. 116. REINFORCE THE FRESH START.

    (a) Restoration of an Effective Discharge.--Section 523(a)(17) of 
title 11, United States Code, is amended--
            (1) by striking ``by a court'' and inserting ``by any 
        court'';
            (2) by striking ``section 1915(b) or (f)'' and inserting 
        ``subsection (b) or (f)(2) of section 1915''; and
            (3) by inserting ``(or a similar non-Federal law)'' after 
        ``title 28'' each place it appears.

SEC. 117. DISCOURAGING BAD FAITH REPEAT FILINGS.

    Section 362(c) of title 11, United States Code, is amended--
            (1) in paragraph (1) by striking ``and'' at the end;
            (2) in paragraph (2) by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(3) If a single or joint case is filed by or against an 
        individual debtor under chapter 7, 11, or 13 (other than a case 
        refiled under a chapter other than chapter 7 after dismisssal 
        under section 707(b) of this title), and if a single or joint 
        case of the debtor was pending within the previous 1-year 
        period but was dismissed, the stay under subsection (a) with 
        respect to any action taken with respect to a debt or property 
        securing such debt or with respect to any lease will terminate 
        with respect to the debtor on the 30th day after the filing of 
        the later case. Upon motion by a party in interest for 
        continuation of the automatic stay and upon notice and a 
        hearing, the court may extend the stay in particular cases as 
        to any or all creditors (subject to such conditions or 
        limitations as the court may then impose) after notice and a 
        hearing completed before the expiration of the 30-day period 
        only if the party in interest demonstrates that the filing of 
        the later case is in good faith as to the creditors to be 
        stayed. A case is presumptively filed not in good faith (but 
        such presumption may be rebutted by clear and convincing 
        evidence to the contrary)--
                    ``(A) as to all creditors if--
                            ``(i) more than one previous case under any 
                        of chapter 7, 11, or 13 in which the individual 
                        was a debtor was pending within such 1-year 
                        period;
                            ``(ii) a previous case under any of 
                        chapters 7, 11, or 13 in which the individual 
                        was a debtor was dismissed within such 1-year 
                        period, after the debtor failed to file or 
                        amend the petition or other documents as 
                        required by this title or the court without 
                        substantial excuse (but mere inadvertence or 
                        negligence shall not be substantial excuse 
                        unless the dismissal was caused by the 
                        negligence of the debtor's attorney), failed to 
                        provide adequate protection as ordered by the 
                        court, or failed to perform the terms of a plan 
                        confirmed by the court; or
                            ``(iii) there has not been a substantial 
                        change in the financial or personal affairs of 
                        the debtor since the dismissal of the next most 
                        previous case under any of chapters 7, 11, or 
                        13 of this title, or there is not any other 
                        reason to conclude that the later case will be 
                        concluded, if a case under chapter 7 of this 
                        title, with a discharge, and if a chapter 11 or 
                        13 case, a confirmed plan which will be fully 
                        performed;
                    ``(B) as to any creditor that commenced an action 
                under subsection (d) in a previous case in which the 
                individual was a debtor if, as of the date of dismissal 
                of such case, that action was still pending or had been 
                resolved by terminating, conditioning, or limiting the 
                stay as to actions of such creditor.
            ``(4) If a single or joint case is filed by or against an 
        individual debtor under this title (other than a case refiled 
        under a chapter other than chapter 7 after a dismissal under 
        section 707(b) of this title), and if two or more single or 
        joint cases of the debtor were pending within the previous year 
        but were dismissed, the stay under subsection (a) will not go 
        into effect upon the filing of the later case. On request of a 
        party in interest, the court shall promptly enter an order 
        confirming that no stay is in effect. If a party in interest 
        requests within 30 days of the filing of the later case, the 
        court may order the stay to take effect in the case as to any 
        or all creditors (subject to such conditions or limitations as 
        the court may impose), after notice and hearing, only if the 
party in interest demonstrates that the filing of the later case is in 
good faith as to the creditors to be stayed. A stay imposed pursuant to 
the preceding sentence will be effective on the date of entry of the 
order allowing the stay to go into effect. A case is presumptively not 
filed in good faith (but such presumption may be rebutted by clear and 
convincing evidence to the contrary)--
                    ``(A) as to all creditors if--
                            ``(i) two or more previous cases under this 
                        title in which the individual was a debtor were 
                        pending within the 1-year period;
                            ``(ii) a previous case under this title in 
                        which the individual was a debtor was dismissed 
                        within the time period stated in this paragraph 
                        after the debtor failed to file or amend the 
                        petition or other documents as required by this 
                        title or the court without substantial excuse 
                        (but mere inadvertence or negligence shall not 
                        be substantial excuse unless the dismissal was 
                        caused by the negligence of the debtor's 
                        attorney), failed to provide adequate 
                        protection as ordered by the court, or failed 
                        to perform the terms of a plan confirmed by the 
                        court; or
                            ``(iii) there has not been a substantial 
                        change in the financial or personal affairs of 
                        the debtor since the dismissal of the next most 
                        previous case under this title, or there is not 
                        any other reason to conclude that the later 
                        case will be concluded, if a case under chapter 
                        7, with a discharge, and if a case under 
                        chapter 11 or 13, with a confirmed plan that 
                        will be fully performed; or
                    ``(B) as to any creditor that commenced an action 
                under subsection (d) in a previous case in which the 
                individual was a debtor if, as of the date of dismissal 
                of such case, such action was still pending or had been 
                resolved by terminating, conditioning, or limiting the 
                stay as to action of such creditor.''.

SEC. 118. CURBING ABUSIVE FILINGS.

    (a) In General.--Section 362(d) of title 11, United States Code, is 
amended--
            (1) in paragraph (2), by striking ``or'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(4) with respect to a stay of an act against real 
        property under subsection (a), by a creditor whose claim is 
        secured by an interest in such real estate, if the court finds 
        that the filing of the bankruptcy petition was part of a scheme 
        to delay, hinder, and defraud creditors that involved either--
                    ``(A) transfer of all or part ownership of, or 
                other interest in, the real property without the 
                consent of the secured creditor or court approval; or
                    ``(B) multiple bankruptcy filings affecting the 
                real property.
If recorded in compliance with applicable State laws governing notices 
of interests or liens in real property, an order entered pursuant to 
this subsection shall be binding in any other case under this title 
purporting to affect the real property filed not later than 2 years 
after that recording, except that a debtor in a subsequent case may 
move for relief from such order based upon changed circumstances or for 
good cause shown, after notice and a hearing. Any Federal, State, or 
local governmental unit which accepts notices of interests or liens in 
real property shall accept any certified copy of an order described in 
this subsection for indexing and recording.''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, is amended--
            (1) in paragraph (17), by striking ``or'' at the end;
            (2) in paragraph (18) by striking the period at the end and 
        inserting a semicolon; and
            (3) by inserting after paragraph (18) the following:
            ``(19) under subsection (a), of any act to enforce any lien 
        against or security interest in real property following the 
        entry of an order under section 362(d)(4) of this title as to 
        that property in any prior bankruptcy case for a period of 2 
        years after entry of such an order. The debtor in a subsequent 
        case, however, may move the court for relief from such order 
        based upon changed circumstances or for other good cause shown 
        (consistent with the standards for good faith in subsection 
        (c)), after notice and a hearing; or
            ``(20) under subsection (a), of any act to enforce any lien 
        against or security interest in real property--
                    ``(A) if the debtor is ineligible under section 
                109(g) of this title to be a debtor in a bankruptcy 
                case; or
                    ``(B) if the bankruptcy case was filed in violation 
                of a bankruptcy court order in a prior bankruptcy case 
                prohibiting the debtor from being a debtor in another 
                bankruptcy case.''.

SEC. 119. DEBTOR RETENTION OF PERSONAL PROPERTY SECURITY.

    Title 11, United States Code, is amended--
            (1) in section 521--
                    (A) in paragraph (4) by striking ``, and'' at the 
                end and inserting a semicolon;
                    (B) in paragraph (5) by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) in an individual case under chapter 7 of this title, 
        not retain possession of personal property as to which a 
        creditor has an allowed claim for the purchase price secured in 
        whole or in part by an interest in that personal property 
        unless, in the case of an individual debtor, the debtor takes 
        one of the following actions within 45 days after the first 
        meeting of creditors under section 341(a)--
                    ``(A) enters into an agreement with the creditor 
                pursuant to section 524(c) of this title with respect 
                to the claim secured by such property; or
                    ``(B) redeems such property from the security 
                interest pursuant to section 722 of this title.
        ``If the debtor fails to so act within the 45-day period, the 
        stay under section 362(a) of this title is terminated with 
        respect to the personal property of the estate or of the debtor 
        which is affected, such property shall no longer be property of 
        the estate, and the creditor may take whatever action as to 
        such property as is permitted by applicable nonbankruptcy law, 
        unless the court determines on the motion of the trustee 
        brought before the expiration of such 45-day period, and after 
        notice and a hearing, that such property is of consequential 
        value or benefit to the estate, orders appropriate adequate 
        protection of the creditor's interest, and orders the debtor to 
        deliver any collateral in the debtor's possession to the 
        trustee.''; and
            (2) in section 722 by inserting ``in full at the time of 
        redemption'' before the period at the end.

SEC. 120. RELIEF FROM THE AUTOMATIC STAY WHEN THE DEBTOR DOES NOT 
              COMPLETE INTENDED SURRENDER OF CONSUMER DEBT COLLATERAL.

    Title 11, United States Code, is amended as follows--
            (1) in section 362--
                    (A) by striking ``(e), and (f)'' in subsection (c) 
                and inserting in lieu thereof ``(e), (f), and (h)''; 
                and
                    (B) by redesignating subsection (h) as subsection 
                (i) and by inserting after subsection (g) the 
                following:
    ``(h) In an individual case pursuant to chapter 7, 11, or 13 the 
stay provided by subsection (a) is terminated with respect to personal 
property of the estate or of the debtor securing in whole or in part a 
claim, or subject to an unexpired lease, and such personal property 
shall no longer be property of the estate if the debtor fails within 
the applicable time set by section 521(a)(2) of this title--
            ``(1) to file timely any statement of intention required 
        under section 521(a)(2) of this title with respect to that 
        property or to indicate therein that the debtor will either 
        surrender the property or retain it and, if retaining it, 
        either redeem the property pursuant to section 722 of this 
        title, reaffirm the debt it secures pursuant to section 524(c) 
        of this title, or assume the unexpired lease pursuant to 
        section 365(p) of this title if the trustee does not do so, as 
        applicable; or
            ``(2) to take timely the action specified in that statement 
        of intention, as it may be amended before expiration of the 
        period for taking action, unless the statement of intention 
        specifies reaffirmation and the creditor refuses to reaffirm on 
        the original contract terms;
unless the court determines on the motion of the trustee filed before 
the expiration of the applicable time set by section 521(a)(2), and 
after notice and a hearing, that such property is of consequential 
value or benefit to the estate, orders appropriate adequate protection 
of the creditor's interest, and orders the debtor to deliver any 
collateral in the debtor's possession to the trustee. If the court does 
not so determine an order, the stay shall terminate upon the conclusion 
of the proceeding on the motion.''; and
            (2) in section 521, as amended by sections 603 and 604--
                    (A) in paragraph (2) by striking ``consumer'';
                    (B) in paragraph (2)(B)--
                            (i) by striking ``forty-five days after the 
                        filing of a notice of intent under this 
                        section'' and inserting ``30 days after the 
                        first date set for the meeting of creditors 
                        under section 341(a) of this title''; and
                            (ii) by striking ``forty-five day'' the 
                        second place it appears and inserting ``30-
                        day'';
                    (C) in paragraph (2)(C) by inserting ``except as 
                provided in section 362(h) of this title'' before the 
                semicolon; and
                    (D) by inserting after subsection (b) the 
                following:
    ``(c) If the debtor fails timely to take the action specified in 
subsection (a)(6) of this section, or in paragraphs (1) and (2) of 
section 362(h) of this title, with respect to property which a lessor 
or bailor owns and has leased, rented, or bailed to the debtor or as to 
which a creditor holds a security interest not otherwise voidable under 
section 522(f), 544, 545, 547, 548, or 549 of this title, nothing in 
this title shall prevent or limit the operation of a provision in the 
underlying lease or agreement which has the effect of placing the 
debtor in default under such lease or agreement by reason of the 
occurrence, pendency, or existence of a proceeding under this title or 
the insolvency of the debtor. Nothing in this subsection shall be 
deemed to justify limiting such a provision in any other 
circumstance.''.

SEC. 121. GIVING SECURED CREDITORS FAIR TREATMENT IN CHAPTER 13.

    Section 1325(a)(5)(B)(i) of title 11, United States Code, is 
amended to read as follows:
                    ``(i) the plan provides that the holder of such 
                claim retain the lien securing such claim until the 
                earlier of payment of the underlying debt determined 
                under nonbankruptcy law or discharge under section 1328 
                of this title, and that if the case under this chapter 
                is dismissed or converted without completion of the 
                plan, such lien shall also be retained by such holder 
                to the extent recognized by applicable nonbankruptcy 
                law; and''.

SEC. 122. RESTRAINING ABUSIVE PURCHASES ON SECURED CREDIT.

    Section 506 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(e) In an individual case under chapter 7, 11, 12, or 13--
            ``(1) subsection (a) shall not apply to an allowed claim to 
        the extent attributable in whole or in part to the purchase 
        price of personal property acquired by the debtor within 5 
        years of the filing of the petition, except for the purpose of 
        applying paragraph (3) of this subsection;
            ``(2) if such allowed claim attributable to the purchase 
        price is secured only by the personal property so acquired, the 
        value of the personal property and the amount of the allowed 
        secured claim shall be the sum of the unpaid principal balance 
        of the purchase price and accrued and unpaid interest and 
        charges at the contract rate;
            ``(3) if such allowed claim attributable to the purchase 
        price is secured by the personal property so acquired and other 
        property, the value of the security may be determined under 
        subsection (a), but the value of the security and the amount of 
        the allowed secured claim shall be not less than the unpaid 
        principal balance of the purchase price of the personal 
        property acquired and unpaid interest and charges at the 
        contract rate; and
            ``(4) in any subsequent case under this title that is filed 
        by or against the debtor in the 2-year period beginning on the 
        date the petition is filed in the original case, the value of 
        the personal property and the amount of the allowed secured 
        claim shall be deemed to be not less than the amount provided 
        under paragraphs (2) and (3) less any payments actually 
        received.''.

SEC. 123. FAIR VALUATION OF COLLATERAL.

    Section 506(a) of title 11, United States Code, is amended by 
adding at the end the following:
``In the case of an individual debtor under chapters 7 and 13, such 
value with respect to personal property securing an allowed claim shall 
be determined based on the replacement value of such property as of the 
date of filing the petition without deduction for costs of sale or 
marketing. With respect to property acquired for personal, family, or 
household purpose, replacement value shall mean the price a retail 
merchant would charge for property of that kind considering the age and 
condition of the property at the time value is determined.''.

SEC. 124. DOMICILIARY REQUIREMENTS FOR EXEMPTIONS.

    Section 522(b)(2)(A) of title 11, United States Code, is amended--
            (1) by striking ``180'' and inserting ``730''; and
            (2) by striking ``, or for a longer portion of such 180-day 
        period than in any other place'' and inserting ``or if the 
        debtor's domicile has not been located at a single State for 
        such 730-day period, the place in which the debtor's domicile 
        was located for 180 days immediately preceding the 730-day 
        period or for a longer portion of such 180-day period than in 
        any other place''.

SEC. 125. RESTRICTIONS ON CERTAIN EXEMPT PROPERTY OBTAINED THROUGH 
              FRAUD.

    Section 522 of title 11, United States Code, as amended by section 
113, is amended--
            (1) in subsection (b)(2)(A) by inserting ``subject to 
        subsection (o),'' before ``any property''; and
            (2) by adding at the end the following:
    ``(o) For purposes of subsection (b)(3)(A) and notwithstanding 
subsection (a), the value of an interest 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,
shall be reduced to the extent such value is attributable to any 
portion of any property that the debtor disposed of in the 730-day 
period ending of the date of the filing of the petition, with the 
intent to hinder, delay, or defraud a creditor and that the debtor 
could not exempt, or that portion that the debtor could not exempt, 
under subsection (b) if on such date the debtor had held the property 
so disposed of.''.

SEC. 126. ROLLING STOCK EQUIPMENT.

    (a) In General.--Section 1168 of title 11, United States Code, is 
amended to read as follows:
``Sec. 1168. Rolling stock equipment
    ``(a)(1) The right of a secured party with a security interest in 
or of a lessor or conditional vendor of equipment described in 
paragraph (2) to take possession of such equipment in compliance with 
an equipment security agreement, lease, or conditional sale contract, 
and to enforce any of its other rights or remedies under such security 
agreement, lease, or conditional sale contract, to sell, lease, or 
otherwise retain or dispose of such equipment, is not limited or 
otherwise affected by any other provision of this title or by any power 
of the court, except that the right to take possession and enforce 
those other rights and remedies shall be subject to section 362 of this 
title, if--
            ``(A) before the date that is 60 days after the date of 
        commencement of a case under this chapter, the trustee, subject 
        to the court's approval, agrees to perform all obligations of 
        the debtor under such security agreement, lease, or conditional 
        sale contract; and
            ``(B) any default, other than a default of a kind described 
        in section 365(b)(2) of this title, under such security 
        agreement, lease, or conditional sale contract--
                    ``(i) that occurs before the date of commencement 
                of the case and is an event of default therewith is 
                cured before the expiration of such 60-day period;
                    ``(ii) that occurs or becomes an event of default 
                after the date of commencement of the case and before 
                the expiration of such 60-day period is cured before 
                the later of--
                            ``(I) the date that is 30 days after the 
                        date of the default or event of the default; or
                            ``(II) the expiration of such 60-day 
                        period; and
                    ``(iii) that occurs on or after the expiration of 
                such 60-day period is cured in accordance with the 
                terms of such security agreement, lease, or conditional 
                sale contract, if cure is permitted under that 
                agreement, lease, or conditional sale contract.
    ``(2) The equipment described in this paragraph--
            ``(A) is rolling stock equipment or accessories used on 
        rolling stock equipment, including superstructures or racks, 
        that is subject to a security interest granted by, leased to, 
        or conditionally sold to a debtor; and
            ``(B) includes all records and documents relating to such 
        equipment that are required, under the terms of the security 
        agreement, lease, or conditional sale contract, that is to be 
        surrendered or returned by the debtor in connection with the 
        surrender or return of such equipment.
    ``(3) Paragraph (1) applies to a secured party, lessor, or 
conditional vendor acting in its own behalf or acting as trustee or 
otherwise in behalf of another party.
    ``(b) The trustee and the secured party, lessor, or conditional 
vendor whose right to take possession is protected under subsection (a) 
may agree, subject to the court's approval, to extend the 60-day period 
specified in subsection (a)(1).
    ``(c)(1) In any case under this chapter, the trustee shall 
immediately surrender and return to a secured party, lessor, or 
conditional vendor, described in subsection (a)(1), equipment described 
in subsection (a)(2), if at any time after the date of commencement of 
the case under this chapter such secured party, lessor, or conditional 
vendor is entitled pursuant to subsection (a)(1) to take possession of 
such equipment and makes a written demand for such possession of the 
trustee.
    ``(2) At such time as the trustee is required under paragraph (1) 
to surrender and return equipment described in subsection (a)(2), any 
lease of such equipment, and any security agreement or conditional sale 
contract relating to such equipment, if such security agreement or 
conditional sale contract is an executory contract, shall be deemed 
rejected.
    ``(d) With respect to equipment first placed in service on or prior 
to October 22, 1994, for purposes of this section--
            ``(1) the term `lease' includes any written agreement with 
        respect to which the lessor and the debtor, as lessee, have 
        expressed in the agreement or in a substantially 
        contemporaneous writing that the agreement is to be treated as 
        a lease for Federal income tax purposes; and
            ``(2) the term `security interest' means a purchase-money 
        equipment security interest.
    ``(e) With respect to equipment first placed in service after 
October 22, 1994, for purposes of this section, the term `rolling stock 
equipment' includes rolling stock equipment that is substantially 
rebuilt and accessories used on such equipment.''.
    (b) Aircraft Equipment and Vessels.--Section 1110 of title 11, 
United States Code, is amended to read as follows:
``Sec. 1110. Aircraft equipment and vessels
    ``(a)(1) Except as provided in paragraph (2) and subject to 
subsection (b), the right of a secured party with a security interest 
in equipment described in paragraph (3), or of a lessor or conditional 
vendor of such equipment, to take possession of such equipment in 
compliance with a security agreement, lease, or conditional sale 
contract, and to enforce any of its other rights or remedies, under 
such security agreement, lease, or conditional sale contract, to sell, 
lease, or otherwise retain or dispose of such equipment, is not limited 
or otherwise affected by any other provision of this title or by any 
power of the court.
    ``(2) The right to take possession and to enforce the other rights 
and remedies described in paragraph (1) shall be subject to section 362 
of this title if--
            ``(A) before the date that is 60 days after the date of the 
        order for relief under this chapter, the trustee, subject to 
        the approval of the court, agrees to perform all obligations of 
        the debtor under such security agreement, lease, or conditional 
        sale contract; and
            ``(B) any default, other than a default of a kind specified 
        in section 365(b)(2) of this title, under such security 
        agreement, lease, or conditional sale contract--
                    ``(i) that occurs before the date of the order is 
                cured before the expiration of such 60-day period;
                    ``(ii) that occurs after the date of the order and 
                before the expiration of such 60-day period is cured 
                before the later of--
                            ``(I) the date that is 30 days after the 
                        date of the default; or
                            ``(II) the expiration of such 60-day 
                        period; and
                    ``(iii) that occurs on or after the expiration of 
                such 60-day period is cured in compliance with the 
                terms of such security agreement, lease, or conditional 
                sale contract, if a cure is permitted under that 
                agreement, lease, or contract.
    ``(3) The equipment described in this paragraph--
            ``(A) is--
                    ``(i) an aircraft, aircraft engine, propeller, 
                appliance, or spare part (as defined in section 40102 
                of title 49) that is subject to a security interest 
                granted by, leased to, or conditionally sold to a 
                debtor that, at the time such transaction is entered 
                into, holds an air carrier operating certificate issued 
                pursuant to chapter 447 of title 49 for aircraft 
                capable of carrying 10 or more individuals or 6,000 
                pounds or more of cargo; or
                    ``(ii) a documented vessel (as defined in section 
                30101(1) of title 46) that is subject to a security 
                interest granted by, leased to, or conditionally sold 
                to a debtor that is a water carrier that, at the time 
                such transaction is entered into, holds a certificate 
                of public convenience and necessity or permit issued by 
                the Department of Transportation; and
            ``(B) includes all records and documents relating to such 
        equipment that are required, under the terms of the security 
        agreement, lease, or conditional sale contract, to be 
        surrendered or returned by the debtor in connection with the 
        surrender or return of such equipment.
    ``(4) Paragraph (1) applies to a secured party, lessor, or 
conditional vendor acting in its own behalf or acting as trustee or 
otherwise in behalf of another party.
    ``(b) The trustee and the secured party, lessor, or conditional 
vendor whose right to take possession is protected under subsection (a) 
may agree, subject to the approval of the court, to extend the 60-day 
period specified in subsection (a)(1).
    ``(c)(1) In any case under this chapter, the trustee shall 
immediately surrender and return to a secured party, lessor, or 
conditional vendor, described in subsection (a)(1), equipment described 
in subsection (a)(3), if at any time after the date of the order for 
relief under this chapter such secured party, lessor, or conditional 
vendor is entitled pursuant to subsection (a)(1) to take possession of 
such equipment and makes a written demand for such possession to the 
trustee.
    ``(2) At such time as the trustee is required under paragraph (1) 
to surrender and return equipment described in subsection (a)(3), any 
lease of such equipment, and any security agreement or conditional sale 
contract relating to such equipment, if such security agreement or 
conditional sale contract is an executory contract, shall be deemed 
rejected.
    ``(d) With respect to equipment first placed in service on or 
before October 22, 1994, for purposes of this section--
            ``(1) the term `lease' includes any written agreement with 
        respect to which the lessor and the debtor, as lessee, have 
        expressed in the agreement or in a substantially 
        contemporaneous writing that the agreement is to be treated as 
        a lease for Federal income tax purposes; and
            ``(2) the term `security interest' means a purchase-money 
        equipment security interest.''.

SEC. 127. DISCHARGE UNDER CHAPTER 13.

    Section 1328(a) of title 11, United States Code, is amended by 
striking paragraphs (1) through (3) and inserting the following:
            ``(1) provided for under section 1322(b)(5) of this title;
            ``(2) of the kind specified in paragraph (2), (4), (3)(B), 
        (5), (8), or (9) of section 523(a) of this title;
            ``(3) for restitution, or a criminal fine, included in a 
        sentence on the debtor's conviction of a crime; or
            ``(4) for restitution, or damages, awarded in a civil 
        action against the debtor as a result of willful or malicious 
        injury by the debtor that caused personal injury to an 
        individual or the death of an individual.''.

SEC. 128. BANKRUPTCY JUDGESHIPS.

    (a) Short Title.--This section may be cited as the ``Bankruptcy 
Judgeship Act of 1999''.
    (b) Temporary Judgeships.--
            (1) Appointments.--The following judgeship positions shall 
        be filled in the manner prescribed in section 152(a)(1) of 
        title 28, United States Code, for the appointment of bankruptcy 
        judges provided for in section 152(a)(2) of such title:
                    (A) One additional bankruptcy judgeship for the 
                eastern district of California.
                    (B) Four additional bankruptcy judgeships for the 
                central district of California.
                    (C) One additional bankruptcy judgeship for the 
                southern district of Florida.
                    (D) Two additional bankruptcy judgeships for the 
                district of Maryland.
                    (E) One additional bankruptcy judgeship for the 
                eastern district of Michigan.
                    (F) One additional bankruptcy judgeship for the 
                southern district of Mississippi.
                    (G) One additional bankruptcy judgeship for the 
                district of New Jersey.
                    (H) One additional bankruptcy judgeship for the 
                eastern district of New York.
                    (I) One additional bankruptcy judgeship for the 
                northern district of New York.
                    (J) One additional bankruptcy judgeship for the 
                southern district of New York.
                    (K) One additional bankruptcy judgeship for the 
                eastern district of Pennsylvania.
                    (L) One additional bankruptcy judgeship for the 
                middle district of Pennsylvania.
                    (M) One additional bankruptcy judgeship for the 
                western district of Tennessee.
                    (N) One additional bankruptcy judgeship for the 
                eastern district of Virginia.
            (2) Vacancies.--The first vacancy occurring in the office 
        of a bankruptcy judge in each of the judicial districts set 
        forth in paragraph (1) that--
                    (A) results from the death, retirement, 
                resignation, or removal of a bankruptcy judge; and
                    (B) occurs 5 years or more after the appointment 
                date of a bankruptcy judge appointed under paragraph 
                (1),
        shall not be filled.
    (c) Extensions.--
            (1) In general.--The temporary bankruptcy judgeship 
        positions authorized for the northern district of Alabama, the 
        district of Delaware, the district of Puerto Rico, the district 
        of South Carolina, and the eastern district of Tennessee under 
        section 3(a)(1), (3), (7), (8), and (9) of the Bankruptcy 
        Judgeship Act of 1992 (28 U.S.C. 152 note) are extended until 
        the first vacancy occurring in the office of a bankruptcy judge 
        in the applicable district resulting from the death, 
        retirement, resignation, or removal of a bankruptcy judge and 
        occurring--
                    (A) 8 years or more after November 8, 1993, with 
                respect to the northern district of Alabama;
                    (B) 10 years or more after October 28, 1993, with 
                respect to the district of Delaware;
                    (C) 8 years or more after August 29, 1994, with 
                respect to the district of Puerto Rico;
                    (D) 8 years or more after June 27, 1994, with 
                respect to the district of South Carolina; and
                    (E) 8 years or more after November 23, 1993, with 
                respect to the eastern district of Tennessee.
            (2) Applicability of other provisions.--All other 
        provisions of section 3 of the Bankruptcy Judgeship Act of 1992 
        remain applicable to such temporary judgeship position.
    (d) Technical Amendment.--The first sentence of section 152(a)(1) 
of title 28, United States Code, is amended to read as follows: ``Each 
bankruptcy judge to be appointed for a judicial district as provided in 
paragraph (2) shall be appointed by the United States court of appeals 
for the circuit in which such district is located.''.
    (e) Travel Expenses of Bankruptcy Judges.--Section 156 of title 28, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(g)(1) In this subsection, the term `travel expenses'--
            ``(A) means the expenses incurred by a bankruptcy judge for 
        travel that is not directly related to any case assigned to 
        such bankruptcy judge; and
            ``(B) shall not include the travel expenses of a bankruptcy 
        judge if--
                    ``(i) the payment for the travel expenses is paid 
                by such bankruptcy judge from the personal funds of 
                such bankruptcy judge; and
                    ``(ii) such bankruptcy judge does not receive funds 
                (including reimbursement) from the United States or any 
                other person or entity for the payment of such travel 
                expenses.
    ``(2) Each bankruptcy judge shall annually submit the information 
required under paragraph (3) to the chief bankruptcy judge for the 
district in which the bankruptcy judge is assigned.
    ``(3)(A) Each chief bankruptcy judge shall submit an annual report 
to the Director of the Administrative Office of the United States 
Courts on the travel expenses of each bankruptcy judge assigned to the 
applicable district (including the travel expenses of the chief 
bankruptcy judge of such district).
    ``(B) The annual report under this paragraph shall include--
            ``(i) the travel expenses of each bankruptcy judge, with 
        the name of the bankruptcy judge to whom the travel expenses 
        apply;
            ``(ii) a description of the subject matter and purpose of 
        the travel relating to each travel expense identified under 
        clause (i), with the name of the bankruptcy judge to whom the 
        travel applies; and
            ``(iii) the number of days of each travel described under 
        clause (ii), with the name of the bankruptcy judge to whom the 
        travel applies.
    ``(4)(A) The Director of the Administrative Office of the United 
States Courts shall--
            ``(i) consolidate the reports submitted under paragraph (3) 
        into a single report; and
            ``(ii) annually submit such consolidated report to 
        Congress.
    ``(B) The consolidated report submitted under this paragraph shall 
include the specific information required under paragraph (3)(B), 
including the name of each bankruptcy judge with respect to clauses 
(i), (ii), and (iii) of paragraph (3)(B).''.

SEC. 129. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED STATES CODE.

    Section 507(a) of title 11, United States Code, is amended by 
inserting after paragraph (9) the following:
            ``(10) Tenth, allowed claims for death or personal injuries 
        resulting from the operation of a motor vehicle or vessel if 
        such operation was unlawful because the debtor was intoxicated 
        from using alcohol, a drug or another substance.''.

SEC. 130. AMENDMENT TO SECTION 1325 OF TITLE 11, UNITED STATES CODE.

    Section 1325(b) of title 11, United States Code, is amended--
            (1) in paragraph (1), by inserting ``to unsecured 
        creditors'' after ``to make payments'';
            (2) in paragraph (2)--
                    (A) by inserting ``current monthly'' before 
                ``income'';
                    (B) by striking ``and which is not'' and inserting 
                ``less amounts'';
                    (C) by inserting after ``received by the debtor'', 
                ``(other than child support payments, foster care 
                payments, or disability payments for a dependent child 
                made in accordance with applicable nonbankruptcy law 
                and which is reasonably necessary to be expended)''; 
                and
                    (D) in subparagraph (A) by inserting after 
                ``dependent of the debtor'' the following: ``, as 
                determined in accordance with section 707(b)(2)(A) and 
                if applicable 707(b)(2)(B)''.

SEC. 131. APPLICATION OF THE CODEBTOR STAY ONLY WHEN THE STAY PROTECTS 
              THE DEBTOR.

    Section 1301(b) of title 11, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:
    ``(2)(A) Notwithstanding subsection (c) and except as provided in 
subparagraph (B), in any case in which the debtor did not receive the 
consideration for the claim held by a creditor, the stay provided by 
subsection (a) shall apply to that creditor for a period not to exceed 
30 days beginning on the date of the order for relief, to the extent 
the creditor proceeds against--
            ``(i) the individual that received that consideration; or
            ``(ii) property not in the possession of the debtor that 
        secures that claim.
    ``(B) Notwithstanding subparagraph (A), the stay provided by 
subsection (a) shall apply in any case in which the debtor is primarily 
obligated to pay the creditor in whole or in part with respect to a 
claim described in subparagraph (A) under a legally binding separation 
or property settlement agreement or divorce or dissolution decree with 
respect to--
            ``(i) an individual described in subparagraph (A)(i); or
            ``(ii) property described in subparagraph (A)(ii).
    ``(3) Notwithstanding subsection (c), the stay provided by 
subsection (a) shall terminate as of the date of confirmation of the 
plan, in any case in which the plan of the debtor provides that the 
debtor's interest in personal property subject to a lease with respect 
to which the debtor is the lessee will be surrendered or abandoned or 
no payments will be made under the plan on account of the debtor's 
obligations under the lease.''.

SEC. 132. ADEQUATE PROTECTION FOR INVESTORS.

    (a) Definition.--Section 101 of title 11, United States Code, is 
amended by inserting after paragraph (48) the following:
            ``(48A) `securities self regulatory organization' means 
        either a securities association registered with the Securities 
        and Exchange Commission pursuant to section 15A of the 
        Securities Exchange Act of 1934 or a national securities 
        exchange registered with the Securities and Exchange Commission 
        pursuant to section 6 of the Securities Exchange Act of 
        1934;''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, as amended by section 118, is amended--
            (1) in paragraph (19) by striking ``or'' at the end;
            (2) in paragraph (20) by striking the period at the end and 
        a inserting ``; or''; and
            (3) by inserting after paragraph (20) the following:
            ``(21) under subsection (a), of the commencement or 
        continuation of an investigation or action by a securities self 
        regulatory organization to enforce such organization's 
        regulatory power; of the enforcement of an order or decision, 
        other than for monetary sanctions, obtained in an action by the 
        securities self regulatory organization to enforce such 
        organization's regulatory power; or of any act taken by the 
        securities self regulatory organization to delist, delete, or 
        refuse to permit quotation of any stock that does not meet 
        applicable regulatory requirements.''.

SEC. 133. LIMITATION ON LUXURY GOODS.

    Section 523(a)(2)(C) of title 11, United States Code, is amended to 
read as follows:
                    ``(C)(i) for purposes of subparagraph (A), consumer 
                debts owed to a single creditor and aggregating more 
                than $250 for `luxury goods or services' incurred by an 
                individual debtor on or within 90 days before the order 
                for relief under this title, or cash advances 
                aggregating more than $250 that are extensions of 
                consumer credit under an open end credit plan obtained 
                by an individual debtor on or within 90 days before the 
                order for relief under this title, are presumed to be 
                nondischargeable; and
                    ``(ii) for purposes of this subparagraph--
                            ``(I) the term `luxury goods or services' 
                        does not include goods or services reasonably 
                        necessary for the support or maintenance of the 
                        debtor or a dependent of the debtor; and
                            ``(II) the term `an extension of consumer 
                        credit under an open end credit plan' has the 
                        same meaning such term has for purposes of the 
                        Consumer Credit Protection Act;''.

SEC. 134. ALLOWING THE DEBTOR TO RETAIN LEASED PERSONAL PROPERTY BY 
              ASSUMPTION.

    Section 365 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(p)(1) If a lease of personal property is rejected or not timely 
assumed by the trustee under subsection (d), the leased property is no 
longer property of the estate and the stay under section 362(a) of this 
title is automatically terminated.
    ``(2) In the case of an individual under chapter 7, the debtor may 
notify the creditor in writing that the debtor desires to assume the 
lease. Upon being so notified, the creditor may, at its option, notify 
the debtor that it is willing to have the lease assumed by the debtor 
and may, at its option, condition such assumption on cure of any 
outstanding default on terms set by the contract. If within 30 days of 
the notice from the creditor the debtor notifies the lessor in writing 
that the lease is assumed, the liability under the lease will be 
assumed by the debtor and not by the estate. The stay under section 362 
of this title and the injunction under section 524(a) of this title 
shall not be violated by notification of the debtor and negotiation of 
cure under this subsection. Nothing in this paragraph shall require a 
debtor to assume a lease, or a creditor to permit assumption.
    ``(3) In a case under chapter 11 of this title in which the debtor 
is an individual and in a case under chapter 13 of this title, if the 
debtor is the lessee with respect to personal property and the lease is 
not assumed in the plan confirmed by the court, the lease is deemed 
rejected as of the conclusion of the hearing on confirmation. If the 
lease is rejected, the stay under section 362 of this title and any 
stay under section 1301 is automatically terminated with respect to the 
property subject to the lease.''.

SEC. 135. ADEQUATE PROTECTION OF LESSORS AND PURCHASE MONEY SECURED 
              CREDITORS.

    (a) In General.--Chapter 13 of title 11, United States Code, is 
amended by adding after section 1307 the following:
``Sec. 1307A. Adequate protection in chapter 13 cases
    ``(a)(1)(A) On or before the date that is 30 days after the filing 
of a case under this chapter, the debtor shall make cash payments in an 
amount determined under paragraph (2), to--
            ``(i) any lessor of personal property; and
            ``(ii) any creditor holding a claim secured by personal 
        property to the extent that the claim is attributable to the 
        purchase of that property by the debtor.
    ``(B) The debtor or the plan shall continue making the adequate 
protection payments required under subparagraph (A) until the earlier 
of the date on which--
            ``(i) the creditor begins to receive actual payments under 
        the plan; or
            ``(ii) the debtor relinquishes possession of the property 
        referred to in subparagraph (A) to--
                    ``(I) the lessor or creditor; or
                    ``(II) any third party acting under claim of right, 
                as applicable.
    ``(2) The payments referred to in paragraph (1)(A) shall be the 
contract amount and shall reduce any amount payable under section 
1326(a) of the title.
    ``(b)(1) Subject to the limitations under paragraph (2), the court 
may, after notice and hearing, change the amount and timing of the 
dates of payment of payments made under subsection (a).
    ``(2)(A) The payments referred to in paragraph (1) shall be payable 
not less frequently than monthly.
    ``(B) The amount of payments referred to in paragraph (1) shall not 
be less than the amount of any weekly, biweekly, monthly, or other 
periodic payment scheduled as payable under the contract between the 
debtor and creditor.
    ``(c) Notwithstanding section 1326(b), the payments referred to in 
subsection (a)(1)(A) shall be continued in addition to plan payments 
under a confirmed plan until actual payments to the creditor begin 
under that plan, if the confirmed plan provides--
            ``(1) for payments to a creditor or lessor described in 
        subsection (a)(1); and
            ``(2) for the deferral of payments to such creditor or 
        lessor under the plan until the payment of amounts described in 
        section 1326(b).
    ``(d) Notwithstanding sections 362, 542, and 543, a lessor or 
creditor described in subsection (a) may retain possession of property 
described in that subsection that was obtained in accordance with 
applicable law before the date of filing of the petition until the 
first payment under subsection (a)(1)(A) is received by the lessor or 
creditor.
    ``(e) On or before 60 days after the filling of a case under this 
chapter, a debtor retaining possession of personal property subject to 
a lease or securing a claim attributable in whole or in part to the 
purchase price of such property shall provide each creditor or lessor 
reasonable evidence of the maintenance of any required insurance 
coverage with respect to the use or ownership of such property and 
continue to do so for so long as the debtor retains possession of such 
property.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 13 of title 11, United States Code, is amended by inserting 
after the item relating to section 1307 the following:

``1307A. Adequate protection in chapter 13 cases.''.

SEC. 136. AUTOMATIC STAY.

    Section 362(b) of title 11, United States Code, as amended by 
sections 118 and 132, is amended--
            (1) in paragraph (20), by striking ``or'' at the end;
            (2) in paragraph (21), by striking the period at the end 
        and inserting a semicolon; and
            (3) by inserting after paragraph (21) the following:
            ``(22) under subsection (a) of any transfer that is not 
        avoidable under section 544 of this title and that is not 
        avoidable under section 549 of this title;
            ``(23) under subsection (a)(3), of the continuation of any 
        eviction, unlawful detainer action, or similar proceeding by a 
        lessor against a debtor involving residential real property in 
        which the debtor resides as a tenant under a rental agreement 
        and the debtor has not paid rent to the lessor pursuant to the 
        terms of the lease agreement or applicable State law after the 
        commencement and during the course of the case;
            ``(24) under subsection (a)(3), of the commencement or 
        continuation of any eviction, unlawful detainer action, or 
        similar proceeding by a lessor against a debtor involving 
        residential real property in which the debtor resides as a 
        tenant under a rental agreement that has terminated pursuant to 
        the lease agreement or applicable State law;
            ``(25) under subsection (a)(3), of any eviction, unlawful 
        detainer action, or similar proceeding, if the debtor has 
        previously filed within the last year and failed to pay post-
        petition rent during the course of that case; or
            ``(26) under subsection (a)(3), of eviction actions based 
        on endangerment to property or person or the use of illegal 
        drugs.''.

SEC. 137. EXTEND PERIOD BETWEEN BANKRUPTCY DISCHARGES.

    Title 11, United States Code, is amended--
            (1) in section 727(a)(8) by striking ``six'' and inserting 
        ``8''; and
            (2) in section 1328 by adding at the end the following:
    ``(f) Notwithstanding subsections (a) and (b), the court shall not 
grant a discharge of all debts provided for by the plan or disallowed 
under section 502 of this title if the debtor has received a discharge 
in any case filed under this title within 5 years of the order for 
relief under this chapter.''.

SEC. 138. DEFINITION OF DOMESTIC SUPPORT OBLIGATION.

    Section 101 of title 11, United States Code, is amended--
            (1) by striking paragraph (12A); and
            (2) by inserting after paragraph (14) the following:
            ``(14A) `domestic support obligation' means a debt that 
        accrues before or after the entry of an order for relief under 
        this title that is--
                    ``(A) owed to or recoverable by--
                            ``(i) a spouse, former spouse, or child of 
                        the debtor or that child's legal guardian; or
                            ``(ii) a governmental unit;
                    ``(B) in the nature of alimony, maintenance, or 
                support (including assistance provided by a 
                governmental unit) of such spouse, former spouse, or 
                child, without regard to whether such debt is expressly 
                so designated;
                    ``(C) established or subject to establishment 
                before or after entry of an order for relief under this 
                title, by reason of applicable provisions of--
                            ``(i) a separation agreement, divorce 
                        decree, or property settlement agreement;
                            ``(ii) an order of a court of record; or
                            ``(iii) a determination made in accordance 
                        with applicable nonbankruptcy law by a 
                        governmental unit; and
                    ``(D) not assigned to a nongovernmental entity, 
                unless that obligation is assigned voluntarily by the 
                spouse, former spouse, child, or parent solely for the 
                purpose of collecting the debt.''.

SEC. 139. PRIORITIES FOR CLAIMS FOR DOMESTIC SUPPORT OBLIGATIONS.

    Section 507(a) of title 11, United States Code, is amended--
            (1) by striking paragraph (7);
            (2) by redesignating paragraphs (1) through (6) as 
        paragraphs (2) through (7), respectively;
            (3) in paragraph (2), as redesignated, by striking 
        ``First'' and inserting ``Second'';
            (4) in paragraph (3), as redesignated, by striking 
        ``Second'' and inserting ``Third'';
            (5) in paragraph (4), as redesignated, by striking 
        ``Third'' and inserting ``Fourth'';
            (6) in paragraph (5), as redesignated, by striking 
        ``Fourth'' and inserting ``Fifth'';
            (7) in paragraph (6), as redesignated, by striking 
        ``Fifth'' and inserting ``Sixth'';
            (8) in paragraph (7), as redesignated, by striking 
        ``Sixth'' and inserting ``Seventh''; and
            (9) by inserting before paragraph (2), as redesignated, the 
        following:
            ``(1) First, allowed claims for domestic support 
        obligations to be paid in the following order on the condition 
        that funds received under this paragraph by a governmental unit 
        in a case under this title be applied:
                    ``(A) Claims that, as of the date of entry of the 
                order for relief, are owed directly to a spouse, former 
                spouse, or child of the debtor, or the parent of such 
                child, without regard to whether the claim is filed by 
                the spouse, former spouse, child, or parent, or is 
                filed by a governmental unit on behalf of that person.
                    ``(B) Claims that, as of the date of entry of the 
                order for relief, are assigned by a spouse, former 
                spouse, child of the debtor, or the parent of that 
                child to a governmental unit or are owed directly to a 
                governmental unit under applicable nonbankruptcy 
                law.''.

SEC. 140. REQUIREMENTS TO OBTAIN CONFIRMATION AND DISCHARGE IN CASES 
              INVOLVING DOMESTIC SUPPORT OBLIGATIONS.

    Title 11, United States Code, is amended--
            (1) in section 1129(a), by adding at the end the following:
            ``(14) If the debtor is required by a judicial or 
        administrative order or statute to pay a domestic support 
        obligation, the debtor has paid all amounts payable under such 
        order or statute for such obligation that become payable after 
        the date on which the petition is filed.'';
            (2) in section 1325(a)--
                    (A) in paragraph (5), by striking ``and'' at the 
                end;
                    (B) in paragraph (6), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(7) if the debtor is required by a judicial or 
        administrative order or statute to pay a domestic support 
        obligation, the debtor has paid all amounts payable under such 
        order for such obligation that become payable after the date on 
        which the petition is filed.''; and
            (3) in section 1328(a), as amended by section 127, in the 
        matter preceding paragraph (1), by inserting ``, and with 
        respect to a debtor who is required by a judicial or 
        administrative order to pay a domestic support obligation, 
        certifies that all amounts payable under such order or statute 
        that are due on or before the date of the certification 
        (including amounts due before or after the petition was filed) 
        have been paid'' after ``completion by the debtor of all 
        payments under the plan''.

SEC. 141. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC SUPPORT OBLIGATION 
              PROCEEDINGS.

    Section 362(b) of title 11, United States Code, as amended by 
sections 118, 132, and 136, is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) under subsection (a)--
                    ``(A) of the commencement or continuation of an 
                action or proceeding for--
                            ``(i) the establishment of paternity; or
                            ``(ii) the establishment or modification of 
                        an order for domestic support obligations; or
                    ``(B) the collection of a domestic support 
                obligation from property that is not property of the 
                estate;'';
            (2) in paragraph (25), by striking ``or'' at the end;
            (3) in paragraph (26), by striking the period at the end 
        and inserting a semicolon; and
            (4) by inserting after paragraph (26) the following:
            ``(27) under subsection (a) with respect to the withholding 
        of income pursuant to an order as specified in section 466(b) 
        of the Social Security Act (42 U.S.C. 666(b)); or
            ``(28) under subsection (a) with respect to--
                    ``(A) the withholding, suspension, or restriction 
                of drivers' licenses, professional and occupational 
                licenses, and recreational licenses pursuant to State 
                law, as specified in section 466(a)(16) of the Social 
                Security Act (42 U.S.C. 666(a)(16)) or with respect to 
                the reporting of overdue support owed by an absent 
                parent to any consumer reporting agency as specified in 
                section 466(a)(7) of the Social Security Act (42 U.S.C. 
                666(a)(7));
                    ``(B) the interception of tax refunds, as specified 
                in sections 464 and 466(a)(3) of the Social Security 
                Act (42 U.S.C. 664 and 666(a)(3)); or
                    ``(C) the enforcement of medical obligations as 
                specified under title IV of the Social Security Act (42 
                U.S.C. 601 et seq.).''.

SEC. 142. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY, 
              MAINTENANCE, AND SUPPORT.

    Section 523 of title 11, United States Code, is amended--
            (1) in subsection (a), by striking paragraph (5) and 
        inserting the following:
            ``(5) for a domestic support obligation;'';
            (2) in subsection (a)(15)--
                    (A) by inserting ``or'' after ``court of record,''; 
                and
                    (B) by striking ``unless--'' and all that follows 
                through ``debtor'' the last place it appears; and
            (3) in subsection (c), by striking ``(6), or (15)'' each 
        place it appears and inserting ``or (6)''.

SEC. 143. CONTINUED LIABILITY OF PROPERTY.

    Section 522 of title 11, United States Code, is amended--
            (1) in subsection (c), by striking paragraph (1) and 
        inserting the following:
            ``(1) a debt of a kind specified in paragraph (1) or (5) of 
        section 523(a) (in which case, notwithstanding any provision of 
        applicable nonbankruptcy law to the contrary, such property 
        shall be liable for a debt of a kind specified in section 
        523(a)(5);''; and
            (2) in subsection (f)(1)(A), by striking the dash and all 
        that follows through the end of the subparagraph and inserting 
        ``of a kind that is specified in section 523(a)(5); or''.

SEC. 144. PROTECTION OF DOMESTIC SUPPORT CLAIMS AGAINST PREFERENTIAL 
              TRANSFER MOTIONS.

    Section 547(c)(7) of title 11, United States Code, is amended to 
read as follows:
            ``(7) to the extent such transfer was a bona fide payment 
        of a debt for a domestic support obligation; or''.

SEC. 145. CLARIFICATION OF MEANING OF HOUSEHOLD GOODS.

    Section 101 of title 11, United States Code, is amended by 
inserting after paragraph (27) the following:
            ``(27A) `household goods' includes tangible personal 
        property normally found in or around a residence, but does not 
        include motorized vehicles used for transportation purposes;''.

SEC. 146. NONDISCHARGEABLE DEBTS.

    Section 523(a) of title 11, United States Code, is amended by 
inserting after paragraph (14) the following:
            ``(14A) incurred to pay a debt that is nondischargeable by 
        reason of section 727, 1141, 1228(a), 1228(b), or 1328(c), or 
        any other provision of this subsection, if the debtor incurred 
        the debt to pay such a nondischargeable debt with the intent to 
        discharge in bankruptcy the newly-created debt, except that all 
        debts incurred to pay nondischargeable debts, without regard to 
        intent, are nondischargeable if incurred within 90 days of the 
        filing of the petition;''.

SEC. 147. MONETARY LIMITATION ON CERTAIN EXEMPT PROPERTY.

    (a) Amendment.--Section 522 of title 11, United States Code, as 
amended by section 125, is amended--
            (1) in subsection (b)(2)(A) by striking ``subsection (o)'' 
        and inserting ``subsections (o) and (p)'' before ``any 
        property''; and
            (2) by adding at the end the following:
    ``(p)(1) Except as provided in paragraphs (2) and (3), as a result 
of electing under subsection (b)(3)(A) to exempt property under State 
or local law, a debtor may not exempt any interest that exceeds 
$250,000 in value, in the aggregate, in--
            ``(A) real or personal property that the debtor or a 
        dependent of the debtor uses as a residence;
            ``(B) a cooperative that owns property that the debtor or a 
        dependent of the debtor uses as a residence; or
            ``(C) a burial plot for the debtor or a dependent of the 
        debtor.
    ``(2) The limitation under paragraph (1) shall not apply to an 
exemption claimed under subsection (b)(3)(A) by a family farmer for the 
principal residence of that farmer.
    ``(3) Paragraph (1) shall not apply to debtors if applicable State 
law provides by statute that such paragraph shall not apply to 
debtors.''.
    (b) Application of Amendment to Individual States.--(1) Section 
522(p) of title 11, United States Code, as added by subsection (a), 
shall not apply with respect to a State before the end of the first 
regular session of the State legislature following the date of the 
enactment of this Act.
    (2) For purposes of paragraph (1), the term ``State'' has the 
meaning given such term in section 101 of title 11, United States Code.

SEC. 148. BANKRUPTCY FEES.

    Section 1930 of title 28, United States Code, is amended--
            (1) in subsection (a) by striking ``Notwithstanding section 
        1915 of this title, the'' and inserting ``The''; and
            (2) by adding at the end the following:
    ``(f)(1) Pursuant to procedures prescribed by the Judicial 
Conference of the United States, the district court or the bankruptcy 
court may waive the filing fee in a case under chapter 7 of title 11 
for an individual debtor who is unable to pay such fee in installments. 
For purposes of this paragraph, the term `filing fee' means the filing 
fee required by subsection (a), or any other fee prescribed by the 
Judicial Conference under subsections (b) and (c) that is payable to 
the clerk upon the commencement of a case under chapter 7 of title 11, 
United States Code.
    ``(2) The district court or the bankruptcy court may also waive for 
such debtors other fees prescribed pursuant to subsections (b) and (c).
    ``(3) This subsection does not restrict the district court or the 
bankruptcy court from waiving, in accordance with Judicial Conference 
policy, fees prescribed pursuant to such subsections for other debtors 
and creditors.''.

SEC. 149. COLLECTION OF CHILD SUPPORT.

    (a) Duties of Trustee Under Chapter 7.--Section 704 of title 11, 
United States Code, as amended by section 102, is amended--
            (1) by inserting ``(a)'' before ``The trustee'';
            (2) in paragraph (9) by striking ``and'' at the end;
            (3) in paragraph (10) by striking the period and inserting 
        ``; and''; and
            (4) by adding at the end the following:
            ``(11) if, with respect to an individual debtor, there is a 
        claim for support of a child of the debtor or a custodial 
        parent of such child entitled to receive priority under section 
        507(a)(1) of this title, provide the applicable notification 
        specified in subsection (b).
    ``(b)(1) In any case described in subsection (a)(11), the trustee 
shall--
            ``(A)(i) notify in writing the holder of the claim of the 
        right of such holder to use the services of a State child 
        support enforcement agency established under sections 464 and 
        466 of the Social Security Act for the State in which the 
        holder resides; and
            ``(ii) include in the notice under this paragraph the 
        address and telephone number of the child support enforcement 
        agency; and
            ``(B)(i) notify in writing the State child support agency 
        of the State in which the holder of the claim resides of the 
        claim;
            ``(ii) include in the notice under this paragraph the name, 
        address, and telephone number of the holder of the claim; and
            ``(iii) at such time as the debtor is granted a discharge 
        under section 727 of this title, notify the holder of such 
        claim and the State child support agency of the State in which 
        such holder resides of--
                    ``(I) the granting of the discharge;
                    ``(II) the last recent known address of the debtor; 
                and
                    ``(III) with respect to the debtor's case, the name 
                of each creditor that holds a claim that is not 
                discharged under paragraph (2), (4), or (14A) of 
                section 523(a) of this title or that was reaffirmed by 
                the debtor under section 524(c) of this title.
    ``(2)(A) If, after receiving a notice under paragraph (1)(B)(iii), 
a holder of a claim or a State child support agency is unable to locate 
the debtor that is the subject of the notice, such holder or such 
agency may request from a creditor described in paragraph 
(1)(B)(iii)(III) the last known address of the debtor.
    ``(B) Notwithstanding any other provision of law, a creditor that 
makes a disclosure of a last known address of a debtor in connection 
with a request made under subparagraph (A) shall not be liable to the 
debtor or any other person by reason of making such disclosure.''.
    (b) Duties of Trustee Under Chapter 13.--Section 1302 of title 11, 
United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (4) by striking ``and'' at the 
                end;
                    (B) in paragraph (5) by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) if, with respect to an individual debtor, there is a 
        claim for support of a child of the debtor or a custodial 
        parent of such child entitled to receive priority under section 
        507(a)(1) of this title, provide the applicable notification 
        specified in subsection (d).''; and
            (2) by adding at the end the following:
    ``(d)(1) In any case described in subsection (b)(6), the trustee 
shall--
            ``(A)(i) notify in writing the holder of the claim of the 
        right of such holder to use the services of a State child 
        support enforcement agency established under sections 464 and 
        466 of the Social Security Act for the State in which the 
        holder resides; and
            ``(ii) include in the notice under this paragraph the 
        address and telephone number of the child support enforcement 
        agency; and
            ``(B)(i) notify in writing the State child support agency 
        of the State in which the holder of the claim resides of the 
        claim; and
            ``(ii) include in the notice under this paragraph the name, 
        address, and telephone number of the holder of the claim;
            ``(iii) at such time as the debtor is granted a discharge 
        under section 1328 of this title, notify the holder of the 
        claim and the State child support agency of the State in which 
        such holder resides of--
                    ``(I) the granting of the discharge;
                    ``(II) the last recent known address of the debtor; 
                and
                    ``(III) with respect to the debtor's case, the name 
                of each creditor that holds a claim that is not 
                discharged under paragraph (2), (4), or (14A) of 
                section 523(a) of this title or that was reaffirmed by 
                the debtor under section 524(c) of this title.
    ``(2)(A) If, after receiving a notice under paragraph (1)(B)(iii), 
a holder of a claim or a State child support agency is unable to locate 
the debtor that is the subject of the notice, such holder or such 
agency may request from a creditor described in paragraph (1)(B)(iii) 
the last known address of the debtor.
    ``(B) Notwithstanding any other provision of law, a creditor that 
makes a disclosure of a last known address of a debtor in connection 
with a request made under subparagraph (A) shall not be liable to the 
debtor or any other person by reason of making such disclosure.''.

SEC. 150. EXCLUDING EMPLOYEE BENEFIT PLAN PARTICIPANT CONTRIBUTIONS AND 
              OTHER PROPERTY FROM THE ESTATE.

    (a) In General.--Section 541(b) of title 11, United States Code, is 
amended--
            (1) by striking ``or'' at the end of paragraph (4)(B)(ii);
            (2) by striking the period at the end of paragraph (5) and 
        inserting ``; or''; and
            (3) by inserting after paragraph (5) the following:
            ``(7) any amount or interest in property to the extent that 
        an employer has withheld amounts from the wages of employees 
        for contribution to an employee benefit plan subject to title I 
        of the Employee Retirement Income Security Act of 1974, or to 
        the extent that the employer has received amounts as a result 
        of payments by participants or beneficiaries to an employer for 
        contribution to an employee benefit plan subject to title I of 
        the Employee Retirement Income Security Act of 1974.''.
    (b) Application of Amendment.--The amendment made by this section 
shall not apply to cases commenced under title 11, United States Code, 
before the expiration of the 180-day period beginning on the date of 
the enactment of this Act.

SEC. 151. CLARIFICATION OF POSTPETITION WAGES AND BENEFITS.

    Section 503(b)(1)(A) of title 11, United States Code, is amended to 
read as follows:
            ``(A) the actual, necessary costs and expenses of 
        preserving the estate, including wages, salaries, or 
        commissions for services rendered after the commencement of the 
        case, and wages and benefits attributable to any period of time 
        after commencement of the case as a result of the debtor's 
        violation of Federal law, without regard to when the original 
        unlawful act occurred or to whether any services were 
        rendered;''.

SEC. 152. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC SUPPORT OBLIGATION 
              PROCEEDINGS.

    Section 362(b)(2) of title 11, United States Code, is amended--
            (1) in subparagraph (A) by striking ``or'' at the end;
            (2) in subparagraph (B) by adding ``or'' at the end; and
            (3) by adding at the end the following:
                    ``(C) under subsection (a) of--
                            ``(i) the withholding of income for payment 
                        of a domestic support obligation pursuant to a 
                        judicial or administrative order or statute for 
                        such obligation that first becomes payable 
                        after the date on which the petition is filed; 
                        or
                            ``(ii) the withholding of income for 
                        payment of a domestic support obligation owed 
                        directly to the spouse, former spouse or child 
                        of the debtor or the parent of such child, 
                        pursuant to a judicial or administrative order 
                        or statute for such obligation that becomes 
                        payable before the date on which the petition 
                        is filed unless the court finds, after notice 
                        and hearing, that such withholding would render 
                        the plan infeasible;''.

SEC. 153. AUTOMATIC STAY INAPPLICABLE TO CERTAIN PROCEEDINGS AGAINST 
              THE DEBTOR.

    Section 362(b)(2) of title 11, United States Code, as amended by 
section 153, is amended--
            (1) in subparagraph (B) by striking ``or'' at the end;
            (2) by inserting after subparagraph (C) the following:
                    ``(D) the commencement or continuation of a 
                proceeding concerning a child custody or visitation;
                    ``(E) the commencement or continuation of a 
                proceeding alleging domestic violence; or
                    ``(F) the commencement or continuation of a 
                proceeding seeking a dissolution of marriage, except to 
                the extent the proceeding concerns property of the 
                estate;''.

SEC. 154. DISCLOSURES.

    (a) Disclosures.--Subchapter II of chapter 5 of title 11, United 
States Code, as amended by section 106, is amended by adding at the end 
the following:
``Sec. 527. Disclosures
    ``(a) A debt relief agency providing bankruptcy assistance to an 
assisted person shall provide the following notices to the assisted 
person:
            ``(1) the written notice required under section 342(b)(1) 
        of this title; and
            ``(2) to the extent not covered in the written notice 
        described in paragraph (1) of this section and no later than 
        three business days after the first date on which a debt relief 
        agency first offers to provide any bankruptcy assistance 
        services to an assisted person, a clear and conspicuous written 
        notice advising assisted persons of the following--
                    ``(A) all information the assisted person is 
                required to provide with a petition and thereafter 
                during a case under this title must be complete, 
                accurate and truthful;
                    ``(B) all assets and all liabilities must be 
                completely and accurately disclosed in the documents 
                filed to commence the case, and the replacement value 
                of each asset as defined in section 506 of this title 
                must be stated in those documents where requested after 
                reasonable inquiry to establish such value;
                    ``(C) current monthly income, the amounts specified 
                in section 707(b)(2) and, in a chapter 13 case, 
                disposable income (determined in accordance with 
                section 707(b)(2)) must be stated after reasonable 
                inquiry; and
                    ``(D) that information an assisted person provides 
                during their case may be audited pursuant to this title 
                and that failure to provide such information may result 
                in dismissal of the proceeding under this title or 
                other sanction including, in some instances, criminal 
                sanctions.
    ``(b) A debt relief agency providing bankruptcy assistance to an 
assisted person shall provide each assisted person at the same time as 
the notices required under subsection (a)(1) with the following 
statement, to the extent applicable, or one substantially similar. The 
statement shall be clear and conspicuous and shall be in a single 
document separate from other documents or notices provided to the 
assisted person:
    ```IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM 
AN ATTORNEY OR BANKRUPTCY PETITION PREPARER.
    ```If you decide to seek bankruptcy relief, you can represent 
yourself, you can hire an attorney to represent you, or you can get 
help in some localities from a bankruptcy petition preparer who is not 
an attorney. THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION 
PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR 
BANKRUPTCY PETITION PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. 
Ask to see the contract before you hire anyone.
    ```The following information helps you understand what must be done 
in a routine bankruptcy case to help you evaluate how much service you 
need. Although bankruptcy can be complex, many cases are routine.
    ```Before filing a bankruptcy case, either you or your attorney 
should analyze your eligibility for different forms of debt relief made 
available by the Bankruptcy Code and which form of relief is most 
likely to be beneficial for you. Be sure you understand the relief you 
can obtain and its limitations. To file a bankruptcy case, documents 
called a Petition, Schedules and Statement of Financial Affairs, as 
well as in some cases a Statement of Intention need to be prepared 
correctly and filed with the bankruptcy court. You will have to pay a 
filing fee to the bankruptcy court. Once your case starts, you will 
have to attend the required first meeting of creditors where you may be 
questioned by a court official called a ``trustee'' and by creditors.
    ```If you choose to file a chapter 7 case, you may be asked by a 
creditor to reaffirm a debt. You may want help deciding whether to do 
so and a creditor is not permitted to coerce you into reaffirming your 
debts.
    ```If you choose to file a chapter 13 case in which you repay your 
creditors what you can afford over three to five years, you may also 
want help with preparing your chapter 13 plan and with the confirmation 
hearing on your plan which will be before a bankruptcy judge.
    ```If you select another type of relief under the Bankruptcy Code 
other than chapter 7 or chapter 13, you will want to find out what 
needs to be done from someone familiar with that type of relief.
    ```Your bankruptcy case may also involve litigation. You are 
generally permitted to represent yourself in litigation in bankruptcy 
court, but only attorneys, not bankruptcy petition preparers, can give 
you legal advice.'.
    ``(c) Except to the extent the debt relief agency provides the 
required information itself after reasonably diligent inquiry of the 
assisted person or others so as to obtain such information reasonably 
accurately for inclusion on the petition, schedules or statement of 
financial affairs, a debt relief agency providing bankruptcy assistance 
to an assisted person, to the extent permitted by nonbankruptcy law, 
shall provide each assisted person at the time required for the notice 
required under subsection (a)(1) reasonably sufficient information 
(which shall be provided in a clear and conspicuous writing) to the 
assisted person on how to provide all the information the assisted 
person is required to provide under this title pursuant to section 521, 
including--
            ``(1) how to value assets at replacement value, determine 
        current monthly income, the amounts specified in section 
        707(b)(2)) and, in a chapter 13 case, how to determine 
        disposable income in accordance with section 707(b)(2) and 
        related calculations;
            ``(2) how to complete the list of creditors, including how 
        to determine what amount is owed and what address for the 
        creditor should be shown; and
            ``(3) how to determine what property is exempt and how to 
        value exempt property at replacement value as defined in 
        section 506 of this title.
    ``(d) A debt relief agency shall maintain a copy of the notices 
required under subsection (a) of this section for two years after the 
date on which the notice is given the assisted person.''.
    (b) Conforming Amendment.--The table of sections for chapter 5 of 
title 11, United States Code, as amended by section 106, is amended by 
inserting after the item relating to section 526 the following:

``527. Disclosures.''.

SEC. 155. DEBTOR'S BILL OF RIGHTS.

    Subchapter II of chapter 5 of title 11, United States Code, as 
amended by sections 106 and 154, is amended by adding at the end the 
following:
``Sec. 528. Debtor's bill of rights
    ``(a) A debt relief agency shall--
            ``(1) no later than five business days after the first date 
        on which a debt relief agency provides any bankruptcy 
        assistance services to an assisted person, but prior to such 
        assisted person's petition under this title being filed, 
        execute a written contract with the assisted person specifying 
        clearly and conspicuously the services the agency will provide 
        the assisted person and the basis on which fees or charges will 
        be made for such services and the terms of payment, and give 
        the assisted person a copy of the fully executed and completed 
        contract in a form the person can keep;
            ``(2) disclose in any advertisement of bankruptcy 
        assistance services or of the benefits of bankruptcy directed 
        to the general public (whether in general media, seminars or 
        specific mailings, telephonic or electronic messages or 
        otherwise) that the services or benefits are with respect to 
        proceedings under this title, clearly and conspicuously using 
        the following statement: `We are a debt relief agency. We help 
        people file Bankruptcy petitions to obtain relief under the 
        Bankruptcy Code.' or a substantially similar statement. An 
        advertisement shall be of bankruptcy assistance services if it 
        describes or offers bankruptcy assistance with a chapter 13 
        plan, regardless of whether chapter 13 is specifically 
        mentioned, including such statements as `federally supervised 
        repayment plan' or `Federal debt restructuring help' or other 
        similar statements which would lead a reasonable consumer to 
        believe that help with debts was being offered when in fact in 
        most cases the help available is bankruptcy assistance with a 
        chapter 13 plan; and
            ``(3) if an advertisement directed to the general public 
        indicates that the debt relief agency provides assistance with 
        respect to credit defaults, mortgage foreclosures, lease 
        eviction proceedings, excessive debt, debt collection pressure, 
        or inability to pay any consumer debt, disclose conspicuously 
        in that advertisement that the assistance is with respect to or 
        may involve proceedings under this title, using the following 
        statement: `We are a debt relief agency. We help people file 
        Bankruptcy petitions to obtain relief under the Bankruptcy 
        Code.' or a substantially similar statement.''.
    (b) Conforming Amendment.--The table of sections for chapter 5 of 
title 11, United States Code, as amended by sections 106 and 154, is 
amended by inserting after the item relating to section 527, the 
following:

``528. Debtor's bill of rights.''.

                TITLE II--DISCOURAGING BANKRUPTCY ABUSE

SEC. 201. REENACTMENT OF CHAPTER 12.

    (a) Reenactment.--Chapter 12 of title 11, United States Code, as in 
effect on March 31, 1999, is hereby reenacted.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on March 31, 1999.

SEC. 202. MEETINGS OF CREDITORS AND EQUITY SECURITY HOLDERS.

    Section 341 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(e) Notwithstanding subsections (a) and (b), the court, on the 
request of a party in interest and after notice and a hearing, for 
cause may order that the United States trustee not convene a meeting of 
creditors or equity security holders if the debtor has filed a plan as 
to which the debtor solicited acceptances prior to the commencement of 
the case.''.

SEC. 203. PROTECTION OF RETIREMENT SAVINGS IN BANKRUPTCY.

    (a) In General.--Section 522 of title 11, United States Code, as 
amended by sections 113, 125, and 147 is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) by striking ``(2)(A)'' and inserting:
    ``(3) Property listed in this paragraph is--
            ``(A) subject to subsections (o) and (p),'';
                            (ii) in subparagraph (B), by striking 
                        ``and'' at the end;
                            (iii) in subparagraph (C), by striking the 
                        period at the end and inserting ``; and''; and
                            (iv) by adding at the end the following:
            ``(D) retirement funds to the extent that those funds are 
        in a fund or account that is exempt from taxation under section 
        401, 403, 408, 408A, 414, 457, or 501(a) of the Internal 
        Revenue Code of 1986.'';
                    (B) by striking paragraph (1) and inserting:
    ``(2) Property listed in this paragraph is property that is 
specified under subsection (d), unless the State law that is applicable 
to the debtor under paragraph (3)(A) specifically does not so 
authorize.'';
                    (C) in the matter preceding paragraph (2)--
                            (i) by striking ``(b)'' and inserting 
                        ``(b)(1)'';
                            (ii) by striking ``paragraph (2)'' both 
                        places it appears and inserting ``paragraph 
                        (3)'';
                            (iii) by striking ``paragraph (1)'' each 
                        place it appears and inserting ``paragraph 
                        (2)''; and
                            (iv) by striking ``Such property is--''; 
                        and
                    (D) by adding at the end of the subsection the 
                following:
    ``(4) For purposes of paragraph (3)(D) and subsection (d)(12), the 
following shall apply:
            ``(A) If the retirement funds are in a retirement fund that 
        has received a favorable determination pursuant to section 7805 
        of the Internal Revenue Code of 1986, and that determination is 
        in effect as of the date of the commencement of the case under 
        section 301, 302, or 303 of this title, those funds shall be 
        presumed to be exempt from the estate.
            ``(B) If the retirement funds are in a retirement fund that 
        has not received a favorable determination pursuant to such 
        section 7805, those funds are exempt from the estate if the 
        debtor demonstrates that--
                    ``(i) no prior determination to the contrary has 
                been made by a court or the Internal Revenue Service; 
                and
                    ``(ii) the retirement fund is in substantial 
                compliance with the applicable requirements of the 
                Internal Revenue Code of 1986.
            ``(C) A direct transfer of retirement funds from one fund 
        or account that is exempt from taxation under section 401, 403, 
        408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 
        1986, pursuant to section 401(a)(31) of the Internal Revenue 
        Code of 1986, or otherwise, shall not cease to qualify for 
        exemption under paragraph (3)(D) or subsection (d)(12) by 
        reason of that direct transfer.
            ``(D)(i) Any distribution that qualifies as an eligible 
        rollover distribution within the meaning of section 402(c) of 
        the Internal Revenue Code of 1986 or that is described in 
        clause (ii) shall not cease to qualify for exemption under 
        paragraph (3)(D) or subsection (d)(12) by reason of that 
        distribution.
            ``(ii) A distribution described in this clause is an amount 
        that--
                    ``(I) has been distributed from a fund or account 
                that is exempt from taxation under section 401, 403, 
                408, 408A, 414, 457, or 501(a) of the Internal Revenue 
                Code of 1986; and
                    ``(II) to the extent allowed by law, is deposited 
                in such a fund or account not later than 60 days after 
                the distribution of that amount.''; and
            (2) in subsection (d)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``subsection (b)(1)'' and inserting 
                ``subsection (b)(2)''; and
                    (B) by adding at the end the following:
            ``(12) Retirement funds to the extent that those funds are 
        in a fund or account that is exempt from taxation under section 
        401, 403, 408, 408A, 414, 457, or 501(a) of the Internal 
        Revenue Code of 1986.''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, as amended by sections 118, 132, 136, and 141 is amended--
            (1) in paragraph (27), by striking ``or'' at the end;
            (2) in paragraph (28), by striking the period and inserting 
        ``; or'';
            (3) by inserting after paragraph (28) the following:
            ``(29) under subsection (a), of withholding of income from 
        a debtor's wages and collection of amounts withheld, pursuant 
        to the debtor's agreement authorizing that withholding and 
        collection for the benefit of a pension, profit-sharing, stock 
        bonus, or other plan established under section 401, 403, 408, 
        408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986 
        that is sponsored by the employer of the debtor, or an 
        affiliate, successor, or predecessor of such employer--
                    ``(A) to the extent that the amounts withheld and 
                collected are used solely for payments relating to a 
                loan from a plan that satisfies the requirements of 
                section 408(b)(1) of the Employee Retirement Income 
                Security Act of 1974 or is subject to section 72(p) of 
                the Internal Revenue Code of 1986; or
                    ``(B) in the case of a loan from a thrift savings 
                plan described in subchapter III of title 5, that 
                satisfies the requirements of section 8433(g) of such 
                title.''; and
            (4) by adding at the end of the flush material following 
        paragraph (29) the following: ``Paragraph (29) does not apply 
        to any amount owed to a plan referred to in that paragraph that 
        is incurred under a loan made during the 1-year period 
        preceding the filing of a petition. Nothing in paragraph (29) 
        may be construed to provide that any loan made under a 
        governmental plan under section 414(d), or a contract or 
        account under section 403(b), of the Internal Revenue Code of 
        1986 constitutes a claim or a debt under this title.''.
    (c) Exceptions to Discharge.--Section 523(a) of title 11, United 
States Code, is amended--
            (1) by striking ``or'' at the end of paragraph (17);
            (2) by striking the period at the end of paragraph (18) and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(19) owed to a pension, profit-sharing, stock bonus, or 
        other plan established under section 401, 403, 408, 408A, 414, 
        457, or 501(c) of the Internal Revenue Code of 1986, pursuant 
        to--
                    ``(A) a loan permitted under section 408(b)(1) of 
                the Employee Retirement Income Security Act of 1974) or 
                subject to section 72(p) of the Internal Revenue Code 
                of 1986; or
                    ``(B) a loan from the thrift savings plan described 
                in subchapter III of title 5, that satisfies the 
                requirements of section 8433(g) of such title.
Paragraph (19) does not apply to any amount owed to a plan referred to 
in that paragraph that is incurred under a loan made during the 1-year 
period preceding the filing of a petition. Nothing in paragraph (19) 
may be construed to provide that any loan made under a governmental 
plan under section 414(d), or a contract or account under section 
403(b), of the Internal Revenue Code of 1986 constitutes a claim or a 
debt under this title.''.
    (d) Plan Contents.--Section 1322 of title 11, United States Code, 
is amended by adding at the end the following:
    ``(f) A plan may not materially alter the terms of a loan described 
in section 362(b)(29) of this title.''.

SEC. 204. PROTECTION OF REFINANCE OF SECURITY INTEREST.

    Subparagraphs (A), (B), and (C) of section 547(e)(2) of title 11, 
United States Code, are amended by striking ``10'' each place it 
appears and inserting ``30''.

SEC. 205. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

    Section 365(d)(4) of title 11, United States Code, is amended to 
read as follows:
    ``(4)(A) Subject to subparagraph (B), in any case under any chapter 
in this title, an unexpired lease of nonresidential real property under 
which the debtor is the lessee shall be deemed rejected, and the 
trustee shall immediately surrender such property to the lessor, if the 
trustee does not assume or reject the unexpired lease by the earlier 
of--
            ``(i) the date that is 120 days after the date of the order 
        for relief; or
            ``(ii) the date of the entry of an order confirming a plan.
    ``(B)(i) The court may extend the period determined under 
subparagraph (A) for 120 days upon motion of the trustee or the lessor 
for cause.
    ``(ii) If the court grants an extension under clause (i), the court 
may grant a subsequent extension only upon prior written consent of the 
lessor.''.

SEC. 206. CREDITORS AND EQUITY SECURITY HOLDERS COMMITTEES.

    (a) Appointment.--Section 1102(a)(2) of title 11, United States 
Code, is amended by inserting before the first sentence the following: 
``On its own motion or on request of a party in interest, and after 
notice and hearing, the court may order a change in the membership of a 
committee appointed under this subsection, if the court determines that 
the change is necessary to ensure adequate representation of creditors 
or equity security holders. The court may expand the membership of a 
committee to include a creditor that is small business if the court 
determines that such creditor holds claims of the kind represented by 
such committee that are, in the aggregate, disproportionately large 
when compared to the annual gross revenue of such creditor.''.
    (b) Information.--Section 1102(b) of title 11, United States Code, 
is amended by adding at the end the following:
    ``(3) A committee appointed under subsection (a) shall provide 
access to information for creditors who hold claims of the kind 
represented by such committee and who are not appointed such committee, 
shall to be open for comment from such creditors, and shall be subject 
to a court order compelling additional reports or disclosure to be made 
to such creditors.''.

SEC. 207. AMENDMENT TO SECTION 546 OF TITLE 11, UNITED STATES CODE.

    Section 546 of title 11, United States Code, is amended by 
inserting at the end thereof:
    ``(i) Notwithstanding section 545 (2) and (3) of this title, the 
trustee may not avoid a warehouseman's lien for storage, transportation 
or other costs incidental to the storage and handling of goods, as 
provided by section 7-209 of the Uniform Commercial Code.''.

SEC. 208. LIMITATION.

    Section 546(c)(1)(B) of title 11, United States Code, is amended by 
striking ``20'' and inserting ``45''.

SEC. 209. AMENDMENT TO SECTION 330(A) OF TITLE 11, UNITED STATES CODE.

    Section 330(a) of title 11, United States Code, is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (A) after ``awarded'', by 
                inserting ``to an examiner, chapter 11 trustee, or 
                professional person''; and
                    (B) by redesignating subdivisions (A) through (E) 
                as clauses (i) through (iv), respectively; and
            (2) by adding at the the following:
            ``(B) In determining the amount of reasonable compensation 
        to be awarded a trustee, the court shall treat such 
        compensation as a commission based on the results achieved.''.

SEC. 210. POSTPETITION DISCLOSURE AND SOLICITATION.

    Section 1125 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(g) Notwithstanding subsection (b), an acceptance or rejection of 
the plan may be solicited from a holder of a claim or interest if such 
solicitation complies with applicable nonbankruptcy law and if such 
holder was solicited before the commencement of the case in a manner 
complying with applicable nonbankruptcy law.''.

SEC. 211. PREFERENCES.

    Section 547(c) of title 11, United States Code, is amended--
            (1) by amending paragraph (2) to read as follows:
            ``(2) to the extent that such transfer was in payment of a 
        debt incurred by the debtor in the ordinary course of business 
        or financial affairs of the debtor and the transferee, and such 
        transfer was--
                    ``(A) made in the ordinary course of business or 
                financial affairs of the debtor and the transferee; or
                    ``(B) made according to ordinary business terms;'';
            (2) in paragraph (7) by striking ``or'' at the end;
            (3) in paragraph (8) by striking the period at the end and 
        inserting ``; or''; and
            (4) by adding at the end the following:
            ``(9) if, in a case filed by a debtor whose debts are not 
        primarily consumer debts, the aggregate value of all property 
        that constitutes or is affected by such transfer is less than 
        $5,000.''.

SEC. 212. VENUE OF CERTAIN PROCEEDINGS.

    Section 1409(b) of title 28, United States Code, is amended by 
inserting ``, or a nonconsumer debt against a noninsider of less than 
$10,000,'' after ``$5,000''.

SEC. 213. PERIOD FOR FILING PLAN UNDER CHAPTER 11.

    Section 1121(d) of title 11, United States Code, is amended--
            (1) by striking ``On'' and inserting ``(1) Subject to 
        paragraph (1), on''; and
            (2) by adding at the end the following:
    ``(2)(A) Such 120-day period may not be extended beyond a date that 
is 18 months after the date of the order for relief under this chapter.
    ``(B) Such 180-day period may not be extended beyond a date that is 
20 months after the date of the order for relief under this chapter.''.

SEC. 214. FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS.

    Section 523(a)(16) of title 11, United States Code, is amended--
            (1) by striking ``dwelling'' the first place it appears;
            (2) by striking ``ownership or'' and inserting 
        ``ownership,'';
            (3) by striking ``housing'' the first place it appears; and
            (4) by striking ``but only'' and all that follows through 
        ``such period,'', and inserting ``or a lot in a homeowners 
        association, for as long as the debtor or the trustee has a 
        legal, equitable, or possessory ownership interest in such 
        unit, such corporation, or such lot,''.

SEC. 215. DEFAULTS BASED ON NONMONETARY OBLIGATIONS.

    (a) Executory Contracts and Unexpired Leases.--Section 365 of title 
11, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(A) by striking the semicolon 
                at the end and inserting the following:
        ``other than a default that is a breach of a provision relating 
        to--
                    ``(i) the satisfaction of any provision (other than 
                a penalty rate or penalty provision) relating to a 
                default arising from any failure to perform nonmonetary 
                obligations under an unexpired lease of real property, 
                if it is impossible for the trustee to cure such 
                default by performing nonmonetary acts at and after the 
                time of assumption; or
                    ``(ii) the satisfaction of any provision (other 
                than a penalty rate or penalty provision) relating to a 
                default arising from any failure to perform nonmonetary 
                obligations under an executory contract (excluding 
                executory contracts that transfer a right or interest 
                under a filed or issued patent, copyright, trademark, 
                trade dress, or trade secret), if it is impossible for 
                the trustee to cure such default by performing 
                nonmonetary acts at and after the time of assumption 
                and if the court determines, based on the equities of 
                the case, that this subparagraph should not apply with 
                respect to such default;''; and
                    (B) by amending paragraph (2)(D) to read as 
                follows:
            ``(D) the satisfaction of any penalty rate or penalty 
        provision relating to a default arising from a failure to 
        perform nonmonetary obligations under an executory contract 
        (excluding executory contracts that transfer a right or 
        interest under a filed or issued patent, copyright, trademark, 
        trade dress, or trade secret) or under an unexpired lease of 
        real or personal property.'';
            (2) 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);
            (3) in subsection (d)--
                    (A) by striking paragraphs (5) through (9); and
                    (B) by redesignating paragraph (10) as paragraph 
                (5); and
            (4) in subsection (f)(1) by striking ``; except that'' and 
        all that follows through the end of the paragraph and inserting 
        a period.
    (b) Impairment of Claims or Interests.--Section 1124(2) of title 
11, United States Code, is amended--
            (1) in subparagraph (A) by inserting ``or of a kind that 
        section 365(b)(2) of this title expressly does not require to 
        be cured'' before the semicolon at the end;
            (2) in subparagraph (C) by striking ``and'' at the end;
            (3) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (4) by inserting after subparagraph (C) the following:
                    ``(D) if such claim or such interest arises from 
                any failure to perform a nonmonetary obligation, 
                compensates the holder of such claim or such interest 
                (other than the debtor or an insider) for any actual 
                pecuniary loss incurred by such holder as a result of 
                such failure; and''.

SEC. 216. SHARING OF COMPENSATION.

    Section 504 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(c) This section shall not apply with respect to sharing, or 
agreeing to share, compensation with a bona fide public service 
attorney referral program that operates in accordance with non-Federal 
law regulating attorney referral services and with rules of 
professional responsibility applicable to attorney acceptance of 
referrals.''.

SEC. 217. PRIORITY FOR ADMINISTRATIVE EXPENSES.

    Section 503(b) of title 11, United States Code, is amended--
            (1) by deleting ``and'' at the end of paragraph (5);
            (2) by striking the period at the end of paragraph (6) and 
        inserting ``; and''; and
            (3) by inserting the following after paragraph (6):
            ``(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 penalty provisions, for the period of one year 
        following the later of the rejection date or 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 a nondebtor; 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).''.

SEC. 218. NONDISCHARGEABILITY OF CERTAIN EDUCATIONAL BENEFITS AND 
              LOANS.

    Section 523(a)(8) of title 11, United States Code, is amended to 
read as follows:
            ``(8) for--
                    ``(A) an educational benefit overpayment or loan 
                made, insured or guaranteed by a governmental unit, or 
                made under any program funded in whole or in part by a 
                governmental unit or nonprofit institution, or for an 
                obligation to repay funds received as an educational 
                benefit, scholarship or stipend; or
                    ``(B) any other education loan incurred by an 
                individual debtor that meets the definition of 
                `Qualified Education Loan' under section 221(e)(1) of 
                the Internal Revenue Code,
        unless excepting such debt from discharge under this paragraph 
        will impose an undue hardship on the debtor and a debtor's 
        dependents;''.

           TITLE III--GENERAL BUSINESS BANKRUPTCY PROVISIONS

SEC. 301. DEFINITION OF DISINTERESTED PERSON.

    Section 101(14) of title 11, United States Code, is amended to read 
as follows:
            ``(14) `disinterested person' means a person that--
                    ``(A) is not a creditor, an equity security holder, 
                or an insider;
                    ``(B) is not and was not, within 2 years before the 
                date of the filing of the petition, a director, 
                officer, or employee of the debtor; and
                    ``(C) does not have an interest materially adverse 
                to the interest of the estate or of any class of 
                creditors or equity security holders, by reason of any 
                direct or indirect relationship to, connection with, or 
                interest in, the debtor, or for any other reason;''.

SEC. 302. MISCELLANEOUS IMPROVEMENTS.

    (a) Who May Be a Debtor.--Section 109 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(h)(1) Subject to paragraphs (2) and (3) and notwithstanding any 
other provision of this section, an individual may not be a debtor 
under this title unless that individual has, during the 90-day period 
preceding the date of filing of the petition of that individual, 
received credit counseling, including, at a minimum, participation in 
an individual or group briefing that outlined the opportunities for 
available credit counseling and assisted that individual in performing 
an initial budget analysis, through a credit counseling program 
(offered through an approved credit counseling service described in 
section 111(a)).
    ``(2)(A) Paragraph (1) shall not apply with respect to a debtor who 
resides in a district for which the United States trustee or bankruptcy 
administrator of the bankruptcy court of that district determines that 
the approved credit counseling services for that district are not 
reasonably able to provide adequate services to the additional 
individuals who would otherwise seek credit counseling from those 
programs by reason of the requirements of paragraph (1).
    ``(B) Each United States trustee or bankruptcy administrator that 
makes a determination described in subparagraph (A) shall review that 
determination not later than one year after the date of that 
determination, and not less frequently than every year thereafter.
    ``(3)(A) Subject to subparagraph (B), the requirements of paragraph 
(1) shall not apply with respect to a debtor who submits to the court a 
certification that--
            ``(i) describes exigent circumstances that merit a waiver 
        of the requirements of paragraph (1);
            ``(ii) states that the debtor requested credit counseling 
        services from an approved credit counseling service, but was 
        unable to obtain the services referred to in paragraph (1) 
        during the 5-day period beginning on the date on which the 
        debtor made that request or that the exigent circumstances 
        require filing before such 5-day period expires; and
            ``(iii) is satisfactory to the court.
    ``(B) With respect to a debtor, an exemption under subparagraph (A) 
shall cease to apply to that debtor on the date on which the debtor 
meets the requirements of paragraph (1), but in no case may the 
exemption apply to that debtor after the date that is 30 days after the 
debtor files a petition.''.
    (b) Chapter 7 Discharge.--Section 727(a) of title 11, United States 
Code, is amended--
            (1) in paragraph (9), by striking ``or'' at the end;
            (2) in paragraph (10), by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following:
            ``(11) after the filing of the petition, the debtor failed 
        to complete an instructional course concerning personal 
        financial management described in section 111 unless the debtor 
        resides in a district for which the United States trustee or 
        bankruptcy administrator of the bankruptcy court of that 
        district determines that the approved instructional courses are 
        not adequate to provide service to the additional individuals 
        who would be required to compete the instructional course by 
        reason of the requirements of this section. Each United States 
        trustee or bankruptcy administrator that makes such a 
        determination shall review that determination not later than 1 
        year after the date of that determination, and not less 
        frequently than every year thereafter.''.
    (c) Chapter 13 Discharge.--Section 1328 of title 11, United States 
Code, as amended by section 137, is amended by adding at the end the 
following:
    ``(g) The court shall not grant a discharge under this section to a 
debtor, unless after filing a petition the debtor has completed an 
instructional course concerning personal financial management described 
in section 111.
    ``(h) Subsection (g) shall not apply with respect to a debtor who 
resides in a district for which the United States trustee or bankruptcy 
administrator of the bankruptcy court of that district determines that 
the approved instructional courses are not adequate to provide service 
to the additional individuals who would be required to complete the 
instructional course by reason of the requirements of this section.
    ``(i) Each United States trustee or bankruptcy administrator that 
makes a determination described in subsection (h) shall review that 
determination not later than 1 year after the date of that 
determination, and not less frequently than every year thereafter.''.
    (d) Debtor's Duties.--Section 521 of title 11, United States Code, 
as amended by sections 604 and 120, is amended by adding at the end the 
following:
    ``(d) In addition to the requirements under subsection (a), an 
individual debtor shall file with the court--
            ``(1) a certificate from the credit counseling service that 
        provided the debtor services under section 109(h); and
            ``(2) a copy of the debt repayment plan, if any, developed 
        under section 109(h) through the credit counseling service 
        referred to in paragraph (1).''.
    (e) General Provisions.--
            (1) In general.--Chapter 1 of title 11, United States Code, 
        is amended by adding at the end the following:
``Sec. 111. Credit counseling services; financial management 
              instructional courses
    ``(a) The clerk of each district shall maintain a publicly 
available list of credit counseling agencies and of programs described 
in section 109(h) and instructional courses offered by such agencies 
currently approved by--
            ``(1) the United States Trustee; or
            ``(2) the bankruptcy administrator for the district.
    ``(b) The United States Trustee or bankruptcy administrator shall 
only approve credit counseling agencies which satisfy standards set in 
regulations promulgated by the Federal Trade Commission and which are 
accredited by the Council on Accreditation or an equivalent third party 
nonprofit accrediting organization.
    ``(c) The United States Trustee or bankruptcy administrator shall 
only approve programs or courses under subsection (a) if they satisfy 
standards set in regulations promulgated by the Executive Office of the 
United States Trustees. The Executive Office of the United States 
Trustee is authorized to promulgate regulations setting such standards.
    ``(d) The Federal Trade Commission shall have authority to 
promulgate regulations setting standards for credit counseling agencies 
for the purposes of subsection (b). Such standards shall establish 
minimum requirements for such agencies with respect to providing 
qualified counselors, safekeeping and payment of client funds, 
disclosure to clients, adequate counseling with respect to client 
credit problems, and such other matters as relate to the quality and 
financial security of such programs. Nothing in this provision shall 
limit the authority of the Federal Trade Commission pursuant to the 
Federal Trade Commission Act (15 U.S.C. 45 et seq.).
    ``(e) The United States Trustee or bankruptcy administrator may 
notify the clerk that a credit counseling agency, or a program or 
course, is no longer approved, in which case the clerk shall remove it 
from the list maintained under subsection (a).''.
            (2) Regulations.--The Federal Trade Commission and the 
        Executive Office of United States Trustees shall promulgate 
        regulations pursuant to the power delegated in this section 
        within 180 days of the date of the enactment of this Act.
            (3) Clerical amendment.--The table of sections at the 
        beginning of chapter 1 of title 11, United States Code, is 
        amended by adding at the end the following:

``111. Credit counseling services; financial management instructional 
                            courses.''.
    (e) Definitions.--Section 101 of title 11, United States Code, is 
amended--
            (1) by inserting after paragraph (13) the following:
            ``(13A) `debtor's principal residence' means a residential 
        structure including incidental property when the structure 
        contains 1 to 4 units, whether or not that structure is 
        attached to real property, and includes, without limitation, an 
        individual condominium or cooperative unit or mobile or 
        manufactured home or trailer;'';
            (2) by inserting after paragraph (27A), as added by section 
        318 of this Act, the following:
            ``(27B) `incidental property' means property incidental to 
        such residence including, without limitation, property commonly 
        conveyed with a principal residence where the real estate is 
        located, window treatments, carpets, appliances and equipment 
        located in the residence, and easements, appurtenances, 
        fixtures, rents, royalties, mineral rights, oil and gas rights, 
        escrow funds and insurance proceeds;'';
            (3) in section 362(b), as amended by sections 117, 118, 
        132, 136, 141, 203, 818, and 1007--
                    (A) in paragraph (28) by striking ``or'' at the end 
                thereof;
                    (B) in paragraph (29) by striking the period at the 
                end and inserting ``; or''; and
                    (C) by inserting after paragraph (29) the 
                following:
            ``(30) under subsection (a), until a prepetition default is 
        cured fully in a case under chapter 13 of this title by actual 
        payment of all arrears as required by the plan, of the 
        postponement, continuation or other similar delay of a 
        prepetition foreclosure proceeding or sale in accordance with 
        applicable nonbankruptcy law, but nothing herein shall imply 
        that such postponement, continuation or other similar delay is 
        a violation of the stay under subsection (a).''; and
            (4) by amending section 1322(b)(2) to read as follows:
            ``(2) modify the rights of holders of secured claims, other 
        than a claim secured primarily by a security interest in 
        property used as the debtor's principal residence at any time 
        during 180 days prior to the filing of the petition, or of 
        holders of unsecured claims, or leave unaffected the rights of 
        holders of any class of claims;''.
    (f) Limitation.--Section 362 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(j) If one case commenced under chapter 7, 11, or 13 of this 
title is dismissed due to the creation of a debt repayment plan 
administered by a credit counseling agency approved pursuant to section 
111 of this title, then for purposes of section 362(c)(3) of this title 
the subsequent case commenced under any such chapter shall not be 
presumed to be filed not in good faith.''.
    (g) Return of Goods Shipped.--Section 546(g) of title 11, United 
States Code, as added by section 222(a) of Public Law 103-394, is 
amended to read as follows:
    ``(h) Notwithstanding the rights and powers of a trustee under 
sections 544(a), 545, 547, 549, and 553 of this title, if the court 
determines on a motion by the trustee made not later than 120 days 
after the date of the order for relief in a case under chapter 11 of 
this title and after notice and hearing, that a return is in the best 
interests of the estate, the debtor, with the consent of the creditor, 
and subject to the prior rights, if any, of third parties in such 
goods, may return goods shipped to the debtor by the creditor before 
the commencement of the case, and the creditor may offset the purchase 
price of such goods against any claim of the creditor against the 
debtor that arose before the commencement of the case.''.

SEC. 303. 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 ``or October 1, 2002, whichever occurs 
        first''; and
            (2) in subparagraph (F)--
                    (A) in clause (i)--
                            (i) in subclause (II), by striking ``or 
                        October 1, 2002, whichever occurs first''; and
                            (ii) in the matter following subclause 
                        (II), by striking ``October 1, 2003, or''; and
                    (B) in clause (ii), in the matter following 
                subclause (II)--
                            (i) by striking ``before October 1, 2003, 
                        or''; and
                            (ii) by striking ``, whichever occurs 
                        first''.

SEC. 304. LOCAL FILING OF BANKRUPTCY CASES.

    Section 1408 of title 28, United States Code, is amended--
            (1) by striking ``Except'' and inserting ``(a) Except''; 
        and
            (2) by adding at the end the following:
    ``(b) For the purposes of subsection (a), if the debtor is a 
corporation, the domicile and residence of the debtor are conclusively 
presumed to be where the debtor's principal place of business in the 
United States is located.''.

SEC. 305. PERMITTING ASSUMPTION OF CONTRACTS.

    (a) Section 365(c) of title 11, United States Code, is amended to 
read as follows:
    ``(c)(1) The trustee may not assume or assign an executory contract 
or unexpired lease of the debtor, whether or not the contract or lease 
prohibits or restricts assignment of rights or delegation of duties, 
if--
            ``(A)(i) applicable law excuses a party to the contract or 
        lease from accepting performance from or rendering performance 
        to an assignee of the contract or lease, whether or not the 
        contract or lease prohibits or restricts assignment of rights 
        or delegation of duties; and
            ``(ii) the party does not consent to the assumption or 
        assignment; or
            ``(B) the contract is a contract to make a loan, or extend 
        other debt financing or financial accommodations, to or for the 
        benefit of the debtor, or to issue a security of the debtor.
    ``(2) Notwithstanding paragraph (1)(A) and applicable nonbankruptcy 
law, in a case under chapter 11 of this title, a trustee in a case in 
which a debtor is a corporation, or a debtor in possession, may assume 
an executory contract or unexpired lease of the debtor, whether or not 
the contract or lease prohibits or restricts assignment of rights or 
delegation of duties.
    ``(3) The trustee may not assume or assign an unexpired lease of 
the debtor of nonresidential real property, whether or not the contract 
or lease prohibits or restricts assignment of rights or delegation of 
duties, if the lease has been terminated under applicable nonbankruptcy 
law before the order for relief.''.
    (b) Section 365(d) of title 11, United States Code, is amended by 
striking paragraphs (5), (6), (7), (8), and (9), and redesignating 
paragraph (10) as paragraph (5).
    (c) Section 365(e) of title 11, United States Code, is amended to 
read as follows:
    ``(e)(1) Notwithstanding a provision in an executory contract or 
unexpired lease, or in applicable law, an executory contract or 
unexpired lease of the debtor may not be terminated or modified, and 
any right or obligation under such contract or lease may not be 
terminated or modified, at any time after the commencement of the case 
solely because of a provision in such contract or lease that is 
conditioned on--
            ``(A) the insolvency or financial condition of the debtor 
        at any time before the closing of the case;
            ``(B) the commencement of a case under this title; or
            ``(C) the appointment of or taking possession by a trustee 
        in a case under this title or a custodian before such 
        commencement.
    ``(2) Paragraph (1) does not apply to an executory contract or 
unexpired lease of the debtor if the trustee may not assume or assign, 
and the debtor in possession may not assume, the contract or lease by 
reason of the provisions of subsection (c) of this section.''.
    (d) Section 365(f)(1) of title 11, United States Code, is amended 
by striking the semicolon and all that follows through ``event''.

             TITLE IV SMALL BUSINESS BANKRUPTCY PROVISIONS

SEC. 401. FLEXIBLE RULES FOR DISCLOSURE STATEMENT AND PLAN.

    (a) Section 1125(a)(1) of title 11, United States Code, is amended 
by inserting before the semicolon following:
``and in determining whether a disclosure statement provides adequate 
information, the court shall consider the complexity of the case, the 
benefit of additional information to creditors and other parties in 
interest, and the cost of providing additional information''.
    (b) Section 1125(f) of title 11, United States Code, is amended to 
read as follows:
    ``(f) Notwithstanding subsection (b)--
            ``(1) the court may determine that the plan itself provides 
        adequate information and that a separate disclosure statement 
        is not necessary;
            ``(2) the court may approve a disclosure statement 
        submitted on standard forms approved by the court or adopted 
        pursuant to section 2075 of title 28, United States Code; and
            ``(3)(A) the court may conditionally approve a disclosure 
        statement subject to final approval after notice and a hearing;
            ``(B) acceptances and rejections of a plan may be solicited 
        based on a conditionally approved disclosure statement if the 
        debtor provides adequate information to each holder of a claim 
        or interest that is solicited, but a conditionally approved 
        disclosure statement shall be mailed not less than 20 days 
        before the date of the hearing on confirmation of the plan; and
    ``(C) the hearing on the disclosure statement may be combined with 
the hearing on confirmation of a plan.''.

SEC. 402. DEFINITIONS.

    (a) Definitions. Section 101 of title 11, United States Code, is 
amended by striking paragraph (51C) and inserting the following:
            ``(51C) `small business case' means a case filed under 
        chapter 11 of this title in which the debtor is a small 
        business debtor; and
            ``(51D) `small business debtor' means (A) a person 
        (including affiliates of such person that are also debtors 
        under this title) that has aggregate noncontingent, liquidated 
        secured and unsecured debts as of the date of the petition or 
        the order for relief in an amount not more than $4,000,000 
        (excluding debts owed to one or more affiliates or insiders), 
        except that if a group of affiliated debtors has aggregate 
        noncontingent liquidated secured and unsecured debts greater 
        than $4,000,000 (excluding debt owed to one or more affiliates 
        or insiders), then no member of such group is a small business 
        debtor;''.
    (b) Conforming Amendment.--Section 1102(a)(3) of title 11, United 
States Code, is amended by inserting ``debtor'' after ``small 
business'' .

SEC. 403. STANDARD FORM DISCLOSURE STATEMENT AND PLAN.

    The Advisory Committee on Bankruptcy Rules of the Judicial 
Conference of the United States shall, within a reasonable period of 
time after the date of the enactment of this Act, propose for adoption 
standard form disclosure statements and plans of reorganization for 
small business debtors (as defined in section 101 of title 11, United 
States Code, as amended by this Act), designed to achieve a practical 
balance between--
            (1) the reasonable needs of the courts, the United States 
        trustee, creditors, and other parties in interest for 
        reasonably complete information; and
            (2) economy and simplicity for debtors.

SEC. 404. UNIFORM NATIONAL REPORTING REQUIREMENTS.

    (a) Reporting Required.--
            (1) Title 11, United States Code, is amended by inserting 
        after section 307 the following:
``Sec. 308. Debtor reporting requirements
    ``A small business debtor shall file periodic financial and other 
reports containing information including--
            ``(1) the debtor's profitability, that is, approximately 
        how much money the debtor has been earning or losing during 
        current and recent fiscal periods;
            ``(2) reasonable approximations of the debtor's projected 
        cash receipts and cash disbursements over a reasonable period;
            ``(3) comparisons of actual cash receipts and disbursements 
        with projections in prior reports; and
            ``(4) whether the debtor is--
                    ``(A) in compliance in all material respects with 
                postpetition requirements imposed by this title and the 
                Federal Rules of Bankruptcy Procedure; and
                    ``(B) timely filing tax returns and paying taxes 
                and other administrative claims when due, and, if not, 
                what the failures are and how, at what cost, and when 
                the debtor intends to remedy such failures; and
            ``(5) such other matters as are in the best interests of 
        the debtor and creditors, and in the public interest in fair 
        and efficient procedures under chapter 11 of this title.''.
            (2) The table of sections of chapter 3 of title 11, United 
        States Code, is amended by inserting after the item relating to 
        section 307 the following:

``308. Debtor reporting requirements.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect 60 days after the date on which rules are prescribed 
pursuant to section 2075, title 28, United States Code to establish 
forms to be used to comply with section 308 of title 11, United States 
Code, as added by subsection (a).

SEC. 405. UNIFORM REPORTING RULES AND FORMS FOR SMALL BUSINESS CASES.

    (a) Proposal of Rules and Forms.--The Advisory Committee on 
Bankruptcy Rules of the Judicial Conference of the United States shall 
propose for adoption amended Federal Rules of Bankruptcy Procedure and 
Official Bankruptcy Forms to be used by small business debtors to file 
periodic financial and other reports containing information, including 
information relating to--
            (1) the debtor's profitability;
            (2) the debtor's cash receipts and disbursements; and
            (3) whether the debtor is timely filing tax returns and 
        paying taxes and other administrative claims when due.
    (b) Purpose.--The rules and forms proposed under subsection (a) 
shall be designed to achieve a practical balance between--
            (1) the reasonable needs of the bankruptcy court, the 
        United States trustee, creditors, and other parties in interest 
        for reasonably complete information;
            (2) the small business debtor's interest that required 
        reports be easy and inexpensive to complete; and
            (3) the interest of all parties that the required reports 
        help the small business debtor to understand its financial 
        condition and plan its future.

SEC. 406. DUTIES IN SMALL BUSINESS CASES.

    (a) Duties in Chapter 11 Cases.--Title 11, United States Code, is 
amended by inserting after section 1114 the following:
``Sec. 1115. Duties of trustee or debtor in possession in small 
              business cases
    ``(a) In a small business case, a trustee or the debtor in 
possession, in addition to the duties provided in this title and as 
otherwise required by law, shall--
            ``(1) append to the voluntary petition or, in an 
        involuntary case, file within 3 days after the date of the 
        order for relief--
                    ``(A) its most recent balance sheet, statement of 
                operations, cash-flow statement, Federal income tax 
                return; or
                    ``(B) a statement made under penalty of perjury 
                that no balance sheet, statement of operations, or 
                cash-flow statement has been prepared and no Federal 
                tax return has been filed;
            ``(2) attend, through its responsible individual, meetings 
        scheduled by the court or the United States trustee, including 
        initial debtor interviews and meetings of creditors convened 
        under section 341 of this title;
            ``(3) timely file all schedules and statements of financial 
        affairs, unless the court, after notice and a hearing, grants 
        an extension, which shall not extend such time period to a date 
        later than 30 days after the date of the order for relief, 
        absent extraordinary and compelling circumstances;
            ``(4) file all postpetition financial and other reports 
        required by the Federal Rules of Bankruptcy Procedure or by 
        local rule of the district court;
            ``(5) subject to section 363(c)(2) of this title, maintain 
        insurance customary and appropriate to the industry;
            ``(6)(A) timely file tax returns;
            ``(B) subject to section 363(c)(2) of this title, timely 
        pay all administrative expense tax claims, except those being 
        contested by appropriate proceedings being diligently 
        prosecuted; and
            ``(C) subject to section 363(c)(2) of this title, establish 
        one or more separate deposit accounts not later than 10 
        business days after the date of order for relief (or as soon 
        thereafter as possible if all banks contacted decline the 
        business) and deposit therein, not later than 1 business day 
        after receipt thereof or a responsible time set by the court, 
        all taxes payable for periods beginning after the date the case 
        is commenced that are collected or withheld by the debtor for 
        governmental units unless the court waives this requirement 
        after notice and hearing; and
            ``(7) allow the United States trustee, or its designated 
        representative, to inspect the debtor's business premises, 
        books, and records at reasonable times, after reasonable prior 
        written notice, unless notice is waived by the debtor.''.
    (b) Technical Amendment.--The table of sections of chapter 11, 
United States Code, is amended by inserting after the item relating to 
section 1114 the following:

``1115. Duties of trustee or debtor in possession in small business 
                            cases.''.

SEC. 407. PLAN FILING AND CONFIRMATION DEADLINES.

    Section 1121(e) of title 11, United States Code, is amended to read 
as follows:
    ``(e) In a small business case--
            ``(1) only the debtor may file a plan until after 90 days 
        after the date of the order for relief, unless a trustee has 
        been appointed under this chapter, or unless the court, on 
        request of a party in interest and after notice and hearing, 
        shortens such time;
            ``(2) the debtor shall file a plan, and any necessary 
        disclosure statement, not later than 90 days after the date of 
        the order for relief, unless the United States Trustee has 
        appointed under section 1102(a)(1) of this title a committee of 
        unsecured creditors that the court has determined, before the 
        90 days has expired, is sufficiently active and representative 
        to provide effective oversight of the debtor; and
            ``(3) the time periods specified in paragraphs (1) and (2) 
        of this subsection and the time fixed in section 1129(e) of 
        this title for confirmation of a plan, may be extended only as 
        follows:
                    ``(A) On request of a party in interest made within 
                the respective periods, and after notice and hearing, 
                the court may for cause grant one or more extensions, 
                cumulatively not to exceed 60 days, if the movant 
                establishes--
                            ``(i) that no cause exists to dismiss or 
                        convert the case or appoint a trustee or 
                        examiner under subparagraphs (A) (I) of section 
                        1112(b) of this title; and
                            ``(ii) that there is a reasonable 
                        possibility the court will confirm a plan 
                        within a reasonable time;
                    ``(B) On request of a party in interest made within 
                the respective periods, and after notice and hearing, 
                the court may for cause grant one or more extensions in 
                excess of those authorized under subparagraph (A) of 
                this paragraph, if the movant establishes:
                            ``(i) that no cause exists to dismiss or 
                        convert the case or appoint a trustee or 
                        examiner under subparagraphs (A) (I) of section 
                        1112(b)(3) of this title; and
                            ``(ii) that it is more likely than not that 
                        the court will confirm a plan within a 
                        reasonable time; and
                    ``(C) a new deadline shall be imposed whenever an 
                extension is granted.''.

SEC. 408. PLAN CONFIRMATION DEADLINE.

    Section 1129 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(e) In a small business case, the debtor shall confirm a plan not 
later than 150 days after the date of the order for relief unless--
            ``(1) the United States Trustee has appointed, under 
        section 1102(a)(1) of this title, a committee of unsecured 
        creditors that the court has determined, before the 150 days 
        has expired, is sufficiently active and representative to 
        provide effective oversight of the debtor; or
            ``(2) such 150-day period is extended as provided in 
        section 1121(e)(3) of this title.''.

SEC. 409. PROHIBITION AGAINST EXTENSION OF TIME.

    Section 105(d) of title 11, United States Code, is amended--
            (1) in paragraph (2)(B)(vi) by striking the period at the 
        end and inserting ``; and''; and
            (2) by adding at the end the following:
            ``(3) in a small business case, not extend the time periods 
        specified in sections 1121(e) and 1129(e) of this title except 
        as provided in section 1121(e)(3) of this title.''.

SEC. 410. DUTIES OF THE UNITED STATES TRUSTEE.

    Section 586(a) of title 28, United States Code, is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (G) by striking ``and at the 
                end'';
                    (B) by redesignating subparagraph (H) as 
                subparagraph (I); and
                    (C) by inserting after subparagraph (G) the 
                following:
                    ``(H) in small business cases (as defined in 
                section 101 of title 11), performing the additional 
                duties specified in title 11 pertaining to such 
                cases'';
            (2) in paragraph (5) by striking ``and at the end'';
            (3) in paragraph (6) by striking the period at the end and 
        inserting ``; and''; and
            (4) by inserting after paragraph (7) the following:
            ``(7) in each of such small business cases--
                    ``(A) conduct an initial debtor interview as soon 
                as practicable after the entry of order for relief but 
                before the first meeting scheduled under section 341(a) 
                of title 11 at which time the United States trustee 
                shall begin to investigate the debtor's viability, 
                inquire about the debtor's business plan, explain the 
                debtor's obligations to file monthly operating reports 
                and other required reports, attempt to develop an 
                agreed scheduling order, and inform the debtor of other 
                obligations;
                    ``(B) when determined to be appropriate and 
                advisable, visit the appropriate business premises of 
                the debtor and ascertain the state of the debtor's 
                books and records and verify that the debtor has filed 
                its tax returns; and
                    ``(C) review and monitor diligently the debtor's 
                activities, to identify as promptly as possible whether 
                the debtor will be unable to confirm a plan; and
            ``(8) in cases in which the United States trustee finds 
        material grounds for any relief under section 1112 of title 11, 
        the United States trustee shall apply promptly to the court for 
        relief.''.

SEC. 411. SCHEDULING CONFERENCES.

    Section 105(d) of title 11, United States Code, is amended--
            (1) in the matter preceding paragraph (1) by striking ``, 
        may'';
            (2) by amending paragraph (1) to read as follows:
            ``(1) shall hold such status conferences as are necessary 
        to further the expeditious and economical resolution of the 
        case; and''; and
            (3) in paragraph (2) by striking ``unless inconsistent with 
        another provision of this title or with applicable Federal 
        Rules of Bankruptcy Procedure'', and inserting ``may''.

SEC. 412. SERIAL FILER PROVISIONS.

    Section 362 of title 11, United States Code, as amended by section 
302, is amended--
            (1) in subsection (i) as so redesignated by section 122--
                    (A) by striking ``An'' and inserting ``(1) Except 
                as provided in paragraph (2), an''; and
                    (B) by adding at the end the following:
    ``(2) If such violation is based on an action taken by an entity in 
the good-faith belief that subsection (h) applies to the debtor, then 
recovery under paragraph (1) against such entity shall be limited to 
actual damages.''; and
            (2) by inserting after subsection (j), as added by section 
        302, the following:
    ``(k)(1) Except as provided in paragraph (2) of this subsection, 
the provisions of subsection (a) of thissection shall not apply in a 
case in which the debtor--
            ``(A) is a debtor in a case under this title pending at the 
        time the petition is filed;
            ``(B) was a debtor in a case under this title which was 
        dismissed for any reason by an order that became final in the 
        2-year period ending on the date of the order for relief 
        entered with respect to the petition;
            ``(C) was a debtor in a case under this title in which a 
        chapter 11, 12, or 13 plan was confirmed in the 2-year period 
        ending on the date of the order for relief entered with respect 
        to the petition; or
            ``(D) is an entity that has succeeded to substantially all 
        of the assets or business of a debtor described in subparagraph 
        (A), (B), or (C).
    ``(2) This subsection shall not apply--
            ``(A) to a case initiated by an involuntary petition filed 
        by a creditor that is not an insider or affiliate of the 
        debtor; or
            ``(B) after such time as the debtor, after notice and a 
        hearing, demonstrates by a preponderance of the evidence, that 
        the filing of such petition resulted from circumstances beyond 
        the control of the debtor and not foreseeable at the time the 
        earlier case was filed; and that it is more likely than not 
        that the court will confirm a plan, other than a liquidating 
        plan, within a reasonable time.''.

SEC. 413. EXPANDED GROUNDS FOR DISMISSAL OR CONVERSION AND APPOINTMENT 
              OF TRUSTEE OR EXAMINER.

    (a) Expanded Grounds for Dismissal or Conversion.--Section 1112(b) 
of title 11, United States Code, is amended to read as follows:
    ``(b)(1) Except as provided in paragraphs (2) and (4) of this 
subsection, and in subsection (c) of this section, on request of a 
party in interest, and after notice and a hearing, the court shall 
convert a case under this chapter to a case under chapter 7 of this 
title or dismiss a case under this chapter, or appoint a trustee or 
examiner under section 1104(e) of this title, whichever is in the best 
interest of creditors and the estate, if the movant establishes cause.
    ``(2) The court may decline to grant the relief specified in 
paragraph (1) of this subsection if the debtor or another party in 
interest objects and establishes by a preponderance of the evidence 
that--
            ``(A) it is more likely than not that a plan will be 
        confirmed within a time as fixed by this title or by order of 
        the court entered pursuant to section 1121(e)(3), or within a 
        reasonable time if no time has been fixed; and
            ``(B) if the cause is an act or omission of the debtor 
        that--
                    ``(i) there exists a reasonable justification for 
                the act or omission; and
                    ``(ii) the act or omission will be cured within a 
                reasonable time fixed by the court not to exceed 30 
                days after the court decides the motion, unless the 
                movant expressly consents to a continuance for a 
                specific period of time, or compelling circumstances 
                beyond the control of the debtor justify an extension.
    ``(3) For purposes of this subsection, cause includes--
            ``(A) substantial or continuing loss to or diminution of 
        the estate;
            ``(B) gross mismanagement of the estate;
            ``(C) failure to maintain insurance that poses a material 
        risk to the estate or the public;
            ``(D) unauthorized use of cash collateral harmful to one or 
        more creditors;
            ``(E) failure to comply with an order of the court;
            ``(F) failure timely to satisfy any filing or reporting 
        requirement established by this title or by any rule applicable 
        to a case under this chapter;
            ``(G) failure to attend the meeting of creditors convened 
        under section 341(a) of this title;
            ``(H) failure timely to provide information or attend 
        meetings reasonably requested by the United States trustee or 
        bankruptcy administrator;
            ``(I) failure timely to pay taxes due after the date of the 
        order for relief or to file tax returns due after the order for 
        relief;
            ``(J) failure to file a disclosure statement, or to file or 
        confirm a plan, within the time fixed by this title or by order 
        of the court;
            ``(K) failure to pay any fees or charges required under 
        chapter 123 of title 28, United States Code;
            ``(L) revocation of an order of confirmation under section 
        1144 of this title;
            ``(M) inability to effectuate substantial consummation of a 
        confirmed plan;
            ``(N) material default by the debtor with respect to a 
        confirmed plan; and
            ``(O) termination of a plan by reason of the occurrence of 
        a condition specified in the plan.
    ``(4) The court may grant relief under this subsection for cause as 
defined in subparagraphs C, F, G, H, or K of paragraph 3 of this 
subsection only upon motion of the United States trustee or bankruptcy 
administrator or upon the courts own motion.
    ``(5) The court shall commence the hearing on any motion under this 
subsection not later than 30 days after filing of the motion, and shall 
decide the motion within 15 days after commencement of the hearing, 
unless the movant expressly consents to a continuance for a specific 
period of time or compelling circumstances prevent the court from 
meeting the time limits established by this paragraph.''.
    (b) Additional Grounds for Appointment of Trustee or Examiner.--
Section 1104 of title 11, United States Code, is amended by adding at 
the end the following:
    ``(e) If grounds exist to convert or dismiss the case under section 
1112 of this title, the court may instead appoint a trustee or 
examiner, if it determines that such appointment is in the best 
interests of creditors and the estate.''.

SEC. 414. STUDY OF OPERATION OF TITLE 11, UNITED STATES CODE, WITH 
              RESPECT TO SMALL BUSINESSES.

    Not later than 2 years after the date of the enactment of this Act, 
the Administrator of the Small Business Administration, in consultation 
with the Attorney General, the Director of the Administrative Office of 
United States Trustees, and the Director of the Administrative Office 
of the United States Courts, shall--
            (1) conduct a study to determine--
                    (A) the internal and external factors that cause 
                small businesses, especially sole proprietorships, to 
                become debtors in cases under title 11, United States 
                Code, and that cause certain small businesses to 
                successfully complete cases under chapter 11 of such 
                title; and
                    (B) how Federal laws relating to bankruptcy may be 
                made more effective and efficient in assisting small 
                businesses to remain viable; and
            (2) submit to the President pro tempore of the Senate and 
        the Speaker of the House of Representatives a report 
        summarizing that study.

SEC. 415. PAYMENT OF INTEREST.

    Section 362(d)(3) of title 11, United States Code, is amended--
            (1) by inserting ``or 30 days after the court determines 
        that the debtor is subject to this paragraph, whichever is 
        later'' after ``90-day period)''; and
            (2) by amending subparagraph (B) to read as follows:
                    ``(B) the debtor has commenced monthly payments 
                (which payments may, in the debtor's sole discretion, 
                notwithstanding section 363(c)(2) of this title, be 
                made from rents or other income generated before or 
                after the commencement of the case by or from the 
                property) to each creditor whose claim is secured by 
                such real estate (other than a claim secured by a 
                judgment lien or by an unmatured statutory lien), which 
                payments are in an amount equal to interest at the 
                then-applicable nondefault contract rate of interest on 
                the value of the creditor's interest in the real 
                estate; or''.

                TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS

SEC. 501. PETITION AND PROCEEDINGS RELATED TO PETITION.

    (a) Technical Amendment Relating to Municipalities.--Section 921(d) 
of title 11, United States Code, is amended by inserting 
``notwithstanding section 301(b)'' before the period at the end.
    (b) Conforming Amendment.--Section 301 of title 11, United States 
Code, is amended--
            (1) by inserting ``(a)'' before ``A voluntary''; and
            (2) by amending the last sentence to read as follows:
    ``(b) The commencement of a voluntary case under a chapter of this 
title constitutes an order for relief under such chapter.''.

SEC. 502. APPLICABILITY OF OTHER SECTIONS TO CHAPTER 9.

    Section 901(a) of title 11, United States Code, is amended--
            (1) by inserting ``555, 556,'' after ``553,''; and
            (2) by inserting ``559, 560, 561, 562'' after ``557,''.

              TITLE VI--STREAMLINING THE BANKRUPTCY SYSTEM

SEC. 601. CREDITOR REPRESENTATION AT FIRST MEETING OF CREDITORS.

    Section 341(c) of title 11, United States Code, is amended by 
inserting after the first sentence the following: ``Notwithstanding any 
local court rule, provision of a State constitution, any other Federal 
or State law that is not a bankruptcy law, or other requirement that 
representation at the meeting of creditors under subsection (a) be by 
an attorney, a creditor holding a consumer debt or any representative 
of the creditor (which may include an entity or an employee of an 
entity and may be a representative for more than one creditor) shall be 
permitted to appear at and participate in the meeting of creditors and 
activities related thereto in a case under chapter 7 or 13, either 
alone or in conjunction with an attorney for the creditor. Nothing in 
this subsection shall be construed to require any creditor to be 
represented by an attorney at any meeting of creditors.''.

SEC. 602. AUDIT PROCEDURES.

    (a) Amendments.--Section 586 of title 28, United States Code, is 
amended--
            (1) in subsection (a) by amending striking paragraph (6) to 
        read as follows:
            ``(6) make such reports as the Attorney General directs, 
        including the results of audits performed under subsection (f); 
        and''; and
            (2) by adding at the end the following:
    ``(f)(1)(A) The Attorney General shall establish procedures to 
determine the accuracy, veracity, and completeness of petitions, 
schedules, and other information which the debtor is required to 
provide under sections 521 and 1322 of title 11, and, if applicable, 
section 111 of title 11, in individual cases filed under chapter 7 or 
13 of such title. Such audits shall be in accordance with generally 
accepted auditing standards and performed by independent certified 
public accountants or independent licensed public accountants.
    ``(B) Those procedures shall--
            ``(i) establish a method of selecting appropriate qualified 
        persons to contract to perform those audits;
            ``(ii) establish a method of randomly selecting cases to be 
        audited, except that not less than 1 out of every 250 cases in 
        each Federal judicial district shall be selected for audit;
            ``(iii) require audits for schedules of income and expenses 
        which reflect greater than average variances from the 
        statistical norm of the district in which the schedules were 
        filed; and
            ``(iv) establish procedures for providing, not less 
        frequently than annually, public information concerning the 
        aggregate results of such audits including the percentage of 
        cases, by district, in which a material misstatement of income 
        or expenditures is reported.
    ``(2) The United States trustee for each district is authorized to 
contract with auditors to perform audits in cases designated by the 
United States trustee according to the procedures established under 
paragraph (1).
    ``(3)(A) The report of each audit conducted under this subsection 
shall be filed with the court and transmitted to the United States 
trustee. Each report shall clearly and conspicuously specify any 
material misstatement of income or expenditures or of assets identified 
by the person performing the audit. In any case where a material 
misstatement of income or expenditures or of assets has been reported, 
the clerk of the bankruptcy court shall give notice of the misstatement 
to the creditors in the case.
    ``(B) If a material misstatement of income or expenditures or of 
assets is reported, the United States trustee shall--
            ``(i) report the material misstatement, if appropriate, to 
        the United States Attorney pursuant to section 3057 of title 
        18, United States Code; and
            ``(ii) if advisable, take appropriate action, including but 
        not limited to commencing an adversary proceeding to revoke the 
        debtor's discharge pursuant to section 727(d) of title 11, 
        United States Code.''.
    (b) Amendments to Section 521 of Title 11, U.S.C.--Section 521(a) 
of title 11, United States Code, as amended by section 603, is amended 
in paragraphs (3) and (4) by adding ``or an auditor appointed pursuant 
to section 586 of title 28, United States Code'' after ``serving in the 
case''.
    (c) Amendments to Section 727 of Title 11, U.S.C.--Section 727(d) 
of title 11, United States Code, is amended--
            (1) by deleting ``or'' at the end of paragraph (2);
            (2) by substituting ``; or'' for the period at the end of 
        paragraph (3); and
            (3) by adding the following at the end the following:
            ``(4) the debtor has failed to explain satisfactorily--
                    ``(A) a material misstatement in an audit performed 
                pursuant to section 586(f) of title 28, United States 
                Code; or
                    ``(B) a failure to make available for inspection 
                all necessary accounts, papers, documents, financial 
                records, files, and all other papers, things, or 
                property belonging to the debtor that are requested for 
                an audit conducted pursuant to section 586(f) of title 
                28, United States Code.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect 18 months after the date of the enactment of this Act.

SEC. 603. GIVING CREDITORS FAIR NOTICE IN CHAPTER 7 AND 13 CASES.

    (a) Notice.--Section 342 of title 11, United States Code, is 
amended--
            (1) in subsection (c)--
                    (A) by striking ``, but the failure of such notice 
                to contain such information shall not invalidate the 
                legal effect of such notice''; and
                    (B) by adding the following at the end:
``If the credit agreement between the debtor and the creditor or the 
last communication before the filing of the petition in a voluntary 
case from the creditor to a debtor who is an individual states an 
account number of the debtor which is the current account number of the 
debtor with respect to any debt held by the creditor against the 
debtor, the debtor shall include such account number in any notice to 
the creditor required to be given under this title. If the creditor has 
specified to the debtor an address at which the creditor wishes to 
receive correspondence regarding the debtor's account, any notice to 
the creditor required to be given by the debtor under this title shall 
be given at such address. For the purposes of this section, `notice' 
shall include, but shall not be limited to, any correspondence from the 
debtor to the creditor after the commencement of the case, any 
statement of the debtor's intention under section 521(a)(2) of this 
title, notice of the commencement of any proceeding in the case to 
which the creditor is a party, and any notice of the hearing under 
section 1324 of this title.'';
            (2) by adding at the end the following:
    ``(d) At any time, a creditor in a case of an individual debtor 
under chapter 7 or 13 may file with the court and serve on the debtor a 
notice of the address to be used to notify the creditor in that case. 
After 5 days following receipt of such notice, any notice the court or 
the debtor is required to give the creditor shall be given at that 
address.
    ``(e) An entity may file with the court a notice stating its 
address for notice in cases under chapters 7 and 13. After 30 days 
following the filing of such notice, any notice in any case filed under 
chapter 7 or 13 given by the court shall be to that address unless 
specific notice is given under subsection (d) with respect to a 
particular case.
    ``(f) Notice given to a creditor other than as provided in this 
section shall not be effective notice until it has been brought to the 
attention of the creditor. If the creditor has designated a person or 
department to be responsible for receiving notices concerning 
bankruptcy cases and has established reasonable procedures so that 
bankruptcy notices received by the creditor will be delivered to such 
department or person, notice will not be brought to the attention of 
the creditor until received by such person or department. No sanction 
under section 362(h) of this title or any other sanction which a court 
may impose on account of violations of the stay under section 362(a) of 
this title or failure to comply with section 542 or 543 of this title 
may be imposed on any action of the creditor unless the action takes 
place after the creditor has received notice of the commencement of the 
case effective under this section.''.
    (b) Debtor's Duties.--Section 521 of title 11, United States Code, 
as amended by sections 604, 120, and 302, is amended--
            (1) by inserting ``(a)'' before ``The debtor shall--'';
            (2) by striking paragraph (1) and inserting the following:
            ``(1) file--
                    ``(A) a list of creditors; and
                    ``(B) unless the court orders otherwise--
                            ``(i) a schedule of assets and liabilities;
                            ``(ii) a schedule of current monthly income 
                        and current expenditures prepared in accordance 
                        with section 707(b)(2);
                            ``(iii) a statement of the debtor's 
                        financial affairs and, if applicable, a 
                        certificate--
                                    ``(I) of an attorney whose name is 
                                on the petition as the attorney for the 
                                debtor or any bankruptcy petition 
                                preparer signing the petition pursuant 
                                to section 110(b)(1) of this title 
                                indicating that such attorney or 
                                bankruptcy petition preparer delivered 
                                to the debtor any notice required by 
                                section 342(b) of this title; or
                                    ``(II) if no attorney for the 
                                debtor is indicated and no bankruptcy 
                                petition preparer signed the petition, 
                                of the debtor that such notice was 
                                obtained and read by the debtor;
                            ``(iv) copies of any Federal tax returns, 
                        including any schedules or attachments, filed 
                        by the debtor for the 3-year period preceding 
                        the order for relief;
                            ``(v) copies of all payment advices or 
                        other evidence of payment, if any, received by 
                        the debtor from any employer of the debtor in 
                        the period 60 days prior to the filing of the 
                        petition; and
                            ``(vi) a statement disclosing any 
                        reasonably anticipated increase in income or 
                        expenditures over the 12-month period following 
                        the date of filing;''; and
            (3) by adding at the end the following:
    ``(e)(1) At any time, a creditor, in the case of an individual 
under chapter 7 or 13, may file with the court notice that the creditor 
requests the petition, schedules, and a statement of affairs filed by 
the debtor in the case and the court shall make those documents 
available to the creditor who requests those documents at a reasonable 
cost within 5 business days after such request.
    ``(2) At any time, a creditor in a case under chapter 13 may file 
with the court notice that the creditor requests the plan filed by the 
debtor in the case, and the court shall make such plan available to the 
creditor who requests such plan at a reasonable cost and not later than 
5 days after such request.
    ``(f) An individual debtor in a case under chapter 7 or 13 shall 
file with the court--
            ``(1) at the time filed with the taxing authority, all tax 
        returns, including any schedules or attachments, with respect 
        to the period from the commencement of the case until such time 
        as the case is closed;
            ``(2) at the time filed with the taxing authority, all tax 
        returns, including any schedules or attachments, that were not 
        filed with the taxing authority when the schedules under 
        subsection (a)(1) were filed with respect to the period that is 
        3 years before the order for relief;
            ``(3) any amendments to any of the tax returns, including 
        schedules or attachments, described in paragraph (1) or (2); 
        and
            ``(4) in a case under chapter 13, a statement subject to 
        the penalties of perjury by the debtor of the debtor's current 
        monthly income and expenditures in the preceding tax year and 
        current monthly income less expenditures for the month 
        preceding the statement prepared in accordance with section 
        707(b)(2) that shows how the amounts are calculated--
                    ``(A) beginning on the date that is the later of 90 
                days after the close of the debtor's tax year or 1 year 
                after the order for relief, unless a plan has been 
                confirmed; and
                    ``(B) thereafter, on or before the date that is 45 
                days before each anniversary of the confirmation of the 
                plan until the case is closed.
    ``(g)(1) A statement referred to in subsection (f)(4) shall 
disclose--
            ``(A) the amount and sources of income of the debtor;
            ``(B) the identity of any persons responsible with the 
        debtor for the support of any dependents of the debtor; and
            ``(C) the identity of any persons who contributed, and the 
        amount contributed, to the household in which the debtor 
        resides.
    ``(2) The tax returns, amendments, and statement of income and 
expenditures described in paragraph (1) shall be available to the 
United States trustee, any bankruptcy administrator, any trustee, and 
any party in interest for inspection and copying, subject to the 
requirements of subsection (h).
    ``(h)(1) Not later than 30 days after the date of the enactment of 
the Consumer Bankruptcy Reform Act of 1999, the Director of the 
Administrative Office of the United States Courts shall establish 
procedures for safeguarding the confidentiality of any tax information 
required to be provided under this section.
    ``(2) The procedures under paragraph (1) shall include reasonable 
restrictions on creditor access to tax information that is required to 
be provided under this section to verify creditor identity and to 
restrict use of the information except with respect to the case.
    ``(3) Not later than 1 year after the date of the enactment of the 
Consumer Bankruptcy Reform Act of 1999, the Director of the 
Administrative Office of the United States Courts shall prepare, and 
submit to Congress a report that--
            ``(A) assesses the effectiveness of the procedures under 
        paragraph (1) to provide timely and sufficient information to 
        creditors concerning the case; and
            ``(B) if appropriate, includes proposed legislation--
                    ``(i) to further protect the confidentiality of tax 
                information or to make it better available to 
                creditors; and
                    ``(ii) to provide penalties for the improper use by 
                any person of the tax information required to be 
                provided under this section.
    ``(i) If requested by the United States trustee or a trustee 
serving in the case, the debtor provide a document that establishes the 
identity of the debtor, including a driver's license, passport, or 
other document that contains a photograph of the debtor and such other 
personal identifying information relating to the debtor that 
establishes the identity of the debtor.''.
    (c) Section 1324 of title 11, United States Code, is amended--
            (1) by inserting ``(a)'' before ``After''; and
            (2) by inserting at the end thereof--
    ``(c) Whenever a party in interest is given notice of a hearing on 
the confirmation or modification of a plan under this chapter, such 
notice shall include the information provided by the debtor on the most 
recent statement filed with the court pursuant to section 
521(a)(1)(B)(ii) or (f)(4) of this title.''.

SEC. 604. DISMISSAL FOR FAILURE TO TIMELY FILE SCHEDULES OR PROVIDE 
              REQUIRED INFORMATION.

    Section 521 of title 11, United States Code, as amended by section 
603 is amended by inserting after subsection (a) the following:
    ``(b)(1) Notwithstanding section 707(a) of this title, and subject 
to paragraph (2), if an individual debtor in a voluntary case under 
chapter 7 or 13 fails to file all of the information required under 
subsection (a)(1) within 45 days after the filing of the petition 
commencing the case, the case shall be automatically dismissed 
effective on the 46th day after the filing of the petition.
    ``(2) With respect to a case described in paragraph (1), any party 
in interest may request the court to enter an order dismissing the 
case. The court shall, if so requested, enter an order of dismissal not 
later than 5 days after such request.
    ``(3) Upon request of the debtor made within 45 days after the 
filing of the petition commencing a case described in paragraph (1), 
the court may allow the debtor an additional period not to exceed 45 
days to file the information required under subsection (a)(1) if the 
court finds justification for extending the period for the filing.''.

SEC. 605. ADEQUATE TIME TO PREPARE FOR HEARING ON CONFIRMATION OF THE 
              PLAN.

    (a) Hearing.--Section 1324 of title 11, United States Code, is 
amended--
            (1) by striking ``After'' and inserting the following:
    ``(a) Except as provided in subsection (b) and after''; and
            (2) by adding at the end the following:
    ``(b) The hearing on confirmation of the plan may be held not 
earlier than 20 days, and not later than 45 days, after the meeting of 
creditors under section 341(a) of this title.''.

SEC. 606. CHAPTER 13 PLANS TO HAVE A 5-YEAR DURATION IN CERTAIN CASES.

    Title 11, United States Code, is amended--
            (1) by amending section 1322(d) to read as follows:
    ``(d) If the current monthly income of the debtor and the debtor's 
spouse combined, when multiplied by 12, is not less than the highest 
national median family income last reported by the Bureau of the Census 
for a family of equal or lesser size or, in the case of a household of 
one person, not less than the national median household income for one 
earner, the plan may not provide for payments over a period that is 
longer than 5 years. If the current monthly income of the debtor and 
the debtor's spouse combined, when multiplied by 12, is less than the 
highest national median family income for a family of equal or lesser 
size, or in the case of a household of one person, the national median 
household income for one earner, the plan may not provide for payments 
over a period that is longer than 3 years, unless the court, for cause, 
approves a longer period, but the court may not approve a period that 
is longer than 5 years. Notwithstanding the foregoing, the national 
median family income for a family of more than four individuals shall 
be the national median family income last reported by the Bureau of the 
Census for a family of four individuals plus $583 for each additional 
member of the family.'';
            (2) in section 1325(b)(1)(B) as amended by section 130--
                    (A) by striking ``three year period'' and inserting 
                ``applicable commitment period''; and
                    (B) by inserting at the end of subparagraph (B) the 
                following: ``The `applicable commitment period' shall 
                be not less than 5 years if the current monthly income 
                of the debtor and the debtor's spouse combined, when 
                multiplied by 12, is not less than the highest national 
                median family income last reported by the Bureau of the 
                Census for a family of equal or lesser size, or in the 
                case of a household of one person, the national median 
                household income for one earner. Notwithstanding the 
                foregoing, the national median family income for a 
                family of more than four individuals shall be the 
                national median family income last reported by the 
                Bureau of the Census for a family of four individuals 
                plus $583 for each additional member of the family.''; 
                and
            (3) in section 1329--
                    (A) by striking in subsection (c) ``three years'' 
                and inserting ``the applicable commitment period under 
                section 1325(b)(1)(B)''; and
                    (B) by inserting at the end of subsection (c) the 
                following:
``The duration period shall be 5 years if the current monthly income of 
the debtor and the debtor's spouse combined, when multiplied by 12, is 
not less than the highest national median family income last reported 
by the Bureau of the Census for a family of equal or lesser size or, in 
the case of a household of one person, the national median household 
income for one earner, as of the date of the modification and shall be 
3 years if the current monthly total income of the debtor and the 
debtor's spouse combined, when multiplied by 12, is less than the 
highest national median family income last reported by the Bureau of 
the Census for a family of equal or lesser size or, in the case of a 
household of one person, less than the national median household income 
for one earner as of the date of the modification. Notwithstanding the 
foregoing, the national median family income for a family of more than 
four individuals shall be the national median family income last 
reported by the Bureau of the Census for a family of four individuals 
plus $583 for each additional member of the family.''.

SEC. 607. SENSE OF THE CONGRESS REGARDING EXPANSION OF RULE 9011 OF THE 
              FEDERAL RULES OF BANKRUPTCY PROCEDURE.

    It is the sense of the Congress that rule 9011 of the Federal Rules 
of Bankruptcy Procedure (11 U.S.C. App) should be modified to include a 
requirement that all documents (including schedules), signed and 
unsigned, submitted to the court or to a trustee by debtors who 
represent themselves and debtors who are represented by an attorney be 
submitted only after the debtor or the debtor's attorney has made 
reasonable inquiry to verify that the information contained in such 
documents is well grounded in fact, and is warranted by existing law or 
a good-faith argument for the extension, modification, or reversal of 
existing law.

SEC. 608. ELIMINATION OF CERTAIN FEES PAYABLE IN CHAPTER 11 BANKRUPTCY 
              CASES.

    (a) Amendments.--Section 1930(a)(6) of title 28, United States 
Code, is amended--
            (1) in the first sentence by striking ``until the case is 
        converted or dismissed, whichever occurs first''; and
            (2) in the second sentence--
                    (A) by striking ``The'' and inserting ``Until the 
                plan is confirmed or the case is converted (whichever 
                occurs first) the''; and
                    (B) by striking ``less than $300,000;'' and 
                inserting ``less than $300,000. Until the case is 
                converted, dismissed, or closed (whichever occurs first 
                and without regard to confirmation of the plan) the fee 
                shall be''.
    (b) Delayed Effective Date.--The amendments made by subsection (a) 
shall take effect on October 1, 1999.

SEC. 609. STUDY OF BANKRUPTCY IMPACT OF CREDIT EXTENDED TO DEPENDENT 
              STUDENTS.

    Not later than 1 year after the date of the enactment of this Act, 
the Comptroller General of the United States shall--
            (1) conduct a study regarding the impact that the extension 
        of credit to individuals who are--
                    (A) claimed as dependents for purposes of the 
                Internal Revenue Code of 1986; and
                    (B) enrolled in post-secondary educational 
                institutions,
        has on the rate of cases filed under title 11, United States 
        Code; and
            (2) submit to the Speaker of the House of Representatives 
        and the President pro tempore of the Senate a report 
        summarizing such study.

SEC. 610. PROMPT RELIEF FROM STAY IN INDIVIDUAL CASES.

    Section 362(e) of title 11, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(e)''; and
            (2) by adding at the end the following:
    ``(2) Notwithstanding paragraph (1), in the case of an individual 
filing under chapter 7, 11, or 13, the stay under subsection (a) shall 
terminate on the date that is 60 days after a request is made by a 
party in interest under subsection (d), unless--
            ``(A) a final decision is rendered by the court during the 
        60-day period beginning on the date of the request; or
            ``(B) that 60-day period is extended--
                    ``(i) by agreement of all parties in interest; or
                    ``(ii) by the court for such specific period of 
                time as the court finds is required by for good cause 
                as described in findings made by the court.''.

SEC. 611. STOPPING ABUSIVE CONVERSIONS FROM CHAPTER 13.

    Section 348(f)(1) of title 11, United States Code, is amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B)--
                    (A) by striking ``in the converted case, with 
                allowed secured claims'' and inserting ``only in a case 
                converted to chapter 11 or 12 but not in a case 
                converted to chapter 7, with allowed secured claims in 
                cases under chapters 11 and 12''; and
                    (B) by striking the period and inserting ``; and''; 
                and
            (3) by adding at the end the following:
            ``(C) with respect to cases converted from chapter 13--
                    ``(i) the claim of any creditor holding security as 
                of the date of the petition shall continue to be 
                secured by that security unless the full amount of such 
                claim determined under applicable nonbankruptcy law has 
                been paid in full as of the date of conversion, 
                notwithstanding any valuation or determination of the 
                amount of an allowed secured claim made for the 
                purposes of the chapter 13 proceeding; and
                    ``(ii) unless a prebankruptcy default has been 
                fully cured pursuant to the plan at the time of 
                conversion, in any proceeding under this title or 
                otherwise, the default shall have the effect given 
                under applicable nonbankruptcy law.''.

SEC. 612. BANKRUPTCY APPEALS.

    (a) Appeals.--Title 28, United States Code, is amended by inserting 
after section 1292 the following:
``Sec. 1293. Bankruptcy appeals
    ``(a) The courts of appeals (other than the United States Court of 
Appeals for the Federal Circuit) shall have jurisdiction of appeals 
from the following:
            ``(1) Final orders and judgments entered by bankruptcy 
        courts and district courts in cases under title 11, in 
        proceedings arising under title 11, and in proceedings arising 
        in or related to a case under title 11, including final orders 
        in proceedings regarding the automatic stay of section 362 of 
        title 11, United States Code.
            ``(2) Interlocutory orders entered by bankruptcy courts and 
        district courts granting, continuing, modifying, refusing or 
        dissolving injunctions, or refusing to dissolve or modify 
        injunctions in cases under title 11, in proceedings arising 
        under title 11, and in proceedings arising in or related to a 
        case under title 11, other than interlocutory orders in 
        proceedings regarding the automatic stay of section 362 of 
        title 11, United States Code.
            ``(3) Interlocutory orders of bankruptcy courts and 
        district courts entered under section 1104(a) or 1121(d) of 
        title 11, or the refusal to enter an order under such section.
            ``(4) An interlocutory order of a bankruptcy court or 
        district court entered in a case under title 11, in a 
        proceeding arising under title 11, or in a proceeding arising 
        in or related to a case under title 11, if the court of appeals 
        that would have jurisdiction of an appeal of a final order 
        entered in such case or such proceeding permits, in its 
        discretion, appeal to be taken from such interlocutory order.
            ``(5) Final decisions, judgments, orders, and decrees 
        entered by a bankruptcy appellate panel under subsection (b) of 
        this section.
    ``(b)(1) The judicial council of a circuit may establish a 
bankruptcy appellate panel composed of bankruptcy judges in the circuit 
who are appointed by the judicial council, which panel shall exercise 
the jurisdiction to review orders and judgments of bankruptcy courts 
described in paragraphs (1) through (5) of subsection (a) of this 
section unless--
            ``(A) the appellant elects at the time of filing the 
        appeal; or
            ``(B) any other party elects, not later than 10 days after 
        service of the notice of the appeal,
to have such jurisdiction exercised by the court of appeals.
    ``(2) An appeal to be heard by a bankruptcy appellate panel under 
paragraph (1) shall be heard by three members of the bankruptcy 
appellate panel, provided that a member of such panel may not hear an 
appeal originating in the district for which such member is appointed 
or designated under section 152 of this title.
    ``(3) If authorized by the Judicial Conference of the United 
States, the judicial councils of two or more circuits may establish a 
joint bankruptcy appellate panel.''.
    (b) Procedural Rules.--Until rules of practice and procedure are 
promulgated or amended pursuant to the Rules Enabling Act (28 U.S.C. 
2071-77) to govern appeals to a bankruptcy appellate panel or to a 
court of appeals exercising jurisdiction pursuant to section 1293 of 
title 28, as added by this Act, the following shall apply:
            (1) A notice of appeal with respect to an appeal from an 
        order or judgment of a bankruptcy court to a court of appeals 
        or a bankruptcy appellate panel must be filed within the time 
        provided in Rule 8002 of the Federal Rules of Bankruptcy 
        Procedure.
            (2) An appeal to a bankruptcy appellate panel shall be 
        taken in the manner provided in Part VIII of the Federal Rules 
        of Bankruptcy Procedure and local court rules.
            (3) An appeal from an order or judgment of a bankruptcy 
        court directly to a court of appeals shall be governed by the 
        rules of practice and procedure that apply to a civil appeal 
        from a judgment of a district court exercising original 
        jurisdiction, as if the bankruptcy court were a district court, 
        except as provided in paragraph (1) regarding the time to 
        appeal or by local court rules.
            (4) An appeal to a court of appeals from a decision, 
        judgment, order, or decree entered by a bankruptcy appellate 
        panel exercising appellate jurisdiction shall be taken in the 
        manner provided by Rule 6(b) of the Federal Rules of Appellate 
        Procedure.
    (c) Repealer.--(1) Section 158 of title 28, United States Code, is 
repealed.
    (2) The table of sections of chapter 6 of title 28, United States 
Code, is amended by striking the item relating to section 158.

SEC. 613. GAO STUDY.

    (a) Study.--Not later than 270 days after the date of the enactment 
of this Act, the Comptroller General of the United States shall conduct 
a study of the feasibility, effectiveness, and cost of requiring 
trustees appointed under title 11, United States Code, or the 
bankruptcy courts, to provide to the Office of Child Support 
Enforcement promptly after the commencement of cases by individual 
debtors under such title, the names and social security numbers of such 
debtors for the purposes of allowing such Office to determine whether 
such debtors have outstanding obligations for child support (as 
determined on the basis of information in the Federal Case Registry or 
other national database).
    (b) Report.--Not later than 300 days after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
Speaker of the House of Representatives and the President pro tempore 
of the Senate, a report containing the results of the study required by 
subsection (a).

SEC. 614. COMPENSATING TRUSTEES.

    Title 11, United States Code, is amended--
            (1) in section 104(b)(1) in the material preceding 
        subparagraph (A)--
                    (A) by striking ``and''; and
                    (B) by inserting ``, 1326(b)(3)'' before 
                ``immediately'';
            (2) in section 326, by inserting at the end the following:
    ``(e) Notwithstanding any other provision of this section, the 
court shall allow reasonable compensation under section 330(a) of this 
title for the services and expenses of the trustee in taking the 
actions described in paragraphs (1) and (2) if--
            ``(1) a trustee in a chapter 7 case commences a motion to 
        dismiss or convert under section 707(b) and such motion is 
        granted; or
            ``(2) the trustee demonstrates by a preponderance of the 
        evidence that the case was converted or dismissed because of 
        the trustee's actions.''; and
            (3) in section 1326(b)--
                    (A) in paragraph (1), by striking ``and'';
                    (B) in paragraph (2), by striking the period at the 
                end thereof and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3)(A) the amount of the compensation described in 
        subclauses (I) and (II) which is unpaid at the time of each 
        such payment, prorated over the remaining duration of the 
        plan--
                    ``(i) and which has been allowed in a case--
                            ``(I) converted to this chapter; or
                            ``(II) dismissed from chapter 7 in which 
                        the debtor in this case was a debtor, whether 
                        dismissed voluntarily by the debtor or on 
                        motion of the trustee under section 707(b);
                    ``(ii) but only to the extent such compensation has 
                been allowed to a chapter 7 trustee under section 
                326(e);
            ``(B) the compensation payable to the chapter 7 trustee in 
        the case under this chapter shall not exceed the greater of the 
        trustee fee allowed pursuant to section 330 of this title 
        plus--
                    ``(i) $25 per month; or
                    ``(ii) the amount payable to unsecured nonpriority 
                creditors as provided by the plan multiplied by 5 
                percent, and the result divided by the number of months 
                in the plan; and
            ``(C) notwithstanding any other provision of this title, 
        any such compensation awarded to a chapter 7 trustee in a 
        converted or dismissed case shall be payable and may be 
        collected in a case under this chapter--
                    ``(i) even if such amount has been discharged in a 
                prior proceeding under this title; and
                    ``(ii) only to the extent permitted by this 
                section.''.

                       TITLE VII--BANKRUPTCY DATA

SEC. 701. IMPROVED BANKRUPTCY STATISTICS.

    (a) Amendment.--Chapter 6 of part I of title 28, United States 
Code, is amended by adding at the end the following:
``Sec. 159. Bankruptcy statistics
    ``(a) The clerk of each district shall compile statistics regarding 
individual debtors with primarily consumer debts seeking relief under 
chapters 7, 11, and 13 of title 11. Those statistics shall be in a form 
prescribed by the Director of the Administrative Office of the United 
States Courts (referred to in this section as the `Office').
    ``(b) The Director shall--
            ``(1) compile the statistics referred to in subsection (a);
            ``(2) make the statistics available to the public; and
            ``(3) not later than October 31, 2000, and annually 
        thereafter, prepare, and submit to Congress a report concerning 
        the information collected under subsection (a) that contains an 
        analysis of the information.
    ``(c) The compilation required under subsection (b) shall--
            ``(1) be itemized, by chapter, with respect to title 11, 
        United States Code;
            ``(2) be presented in the aggregate and for each district; 
        and
            ``(3) include information concerning--
                    ``(A) the total assets and total liabilities of the 
                debtors described in subsection (a), and in each 
                category of assets and liabilities, as reported in the 
                schedules prescribed pursuant to section 2075 of this 
                title and filed by those debtors;
                    ``(B) the current monthly income, and average 
                income and average expenses of those debtors as 
                reported on the schedules and statements that each such 
                debtor files under sections 521 and 1322 of title 11, 
                United States Code;
                    ``(C) the aggregate amount of debt discharged in 
                the reporting period, determined as the difference 
                between the total amount of debt and obligations of a 
                debtor reported on the schedules and the amount of such 
                debt reported in categories which are predominantly 
                nondischargeable;
                    ``(D) the average period of time between the filing 
                of the petition and the closing of the case;
                    ``(E) for the reporting period--
                            ``(i) the number of cases in which a 
                        reaffirmation was filed; and
                            ``(ii)(I) the total number of 
                        reaffirmations filed;
                            ``(II) of those cases in which a 
                        reaffirmation was filed, the number in which 
                        the debtor was not represented by an attorney; 
                        and
                            ``(III) of those cases, the number of cases 
                        in which the reaffirmation was approved by the 
                        court;
                    ``(F) with respect to cases filed under chapter 13 
                of title 11, for the reporting period--
                            ``(i)(I) the number of cases in which a 
                        final order was entered determining the value 
                        of property securing a claim in an amount less 
                        than the amount of the claim; and
                            ``(II) the number of final orders 
                        determining the value of property securing a 
                        claim issued;
                            ``(ii) the number of cases dismissed, the 
                        number of cases dismissed for failure to make 
                        payments under the plan, the number of cases 
                        refiled after dismissal, and the number of 
                        cases in which the plan was completed, 
                        separately itemized with respect to the number 
                        of modifications made before completion of the 
                        plan, if any; and
                            ``(iii) the number of cases in which the 
                        debtor filed another case within the 6 years 
                        previous to the filing;
                    ``(G) the number of cases in which creditors were 
                fined for misconduct and any amount of punitive damages 
                awarded by the court for creditor misconduct; and
                    ``(H) the number of cases in which sanctions under 
                rule 9011 of the Federal Rules of Bankruptcy Procedure 
                were imposed against debtor's counsel and damages 
                awarded under such Rule.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 6 of title 28, United States Code, is amended by adding at the 
end the following:

``159. Bankruptcy statistics.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect 18 months after the date of the enactment of this Act.

SEC. 702. UNIFORM RULES FOR THE COLLECTION OF BANKRUPTCY DATA.

    (a) Amendment.--Title 28, United States Code, is amended by 
inserting after section 589a the following:
``Sec. 589b. Bankruptcy data
    ``(a) Rules.--The Attorney General shall, within a reasonable time 
after the effective date of this section, issue rules requiring uniform 
forms for (and from time to time thereafter to appropriately modify and 
approve)--
            ``(1) final reports by trustees in cases under chapters 7, 
        12, and 13 of title 11, United States Code; and
            ``(2) periodic reports by debtors in possession or 
        trustees, as the case may be, in cases under chapter 11 of 
        title 11, United States Code.
    ``(b) Reports.--All reports referred to in subsection (a) shall be 
designed (and the requirements as to place and manner of filing shall 
be established) so as to facilitate compilation of data and maximum 
possible access of the public, both by physical inspection at one or 
more central filing locations, and by electronic access through the 
Internet or other appropriate media.
    ``(c) Required Information.--The information required to be filed 
in the reports referred to in subsection (b) shall be that which is in 
the best interests of debtors and creditors, and in the public interest 
in reasonable and adequate information to evaluate the efficiency and 
practicality of the Federal bankruptcy system. In issuing rules 
proposing the forms referred to in subsection (a), the Attorney General 
shall strike the best achievable practical balance between--
            ``(1) the reasonable needs of the public for information 
        about the operational results of the Federal bankruptcy system; 
        and
            ``(2) economy, simplicity, and lack of undue burden on 
        persons with a duty to file reports.
    ``(d) Final Reports.--Final reports proposed for adoption by 
trustees under chapters 7, 12, and 13 of title 11 shall, in addition to 
such other matters as are required by law or as the Attorney General in 
the discretion of the Attorney General, shall propose, include with 
respect to a case under such title--
            ``(1) information about the length of time the case was 
        pending;
            ``(2) assets abandoned;
            ``(3) assets exempted;
            ``(4) receipts and disbursements of the estate;
            ``(5) expenses of administration;
            ``(6) claims asserted;
            ``(7) claims allowed; and
            ``(8) distributions to claimants and claims discharged 
        without payment,
in each case by appropriate category and, in cases under chapters 12 
and 13 of title 11, date of confirmation of the plan, each modification 
thereto, and defaults by the debtor in performance under the plan.
    ``(e) Periodic Reports.--Periodic reports proposed for adoption by 
trustees or debtors in possession under chapter 11 of title 11 shall, 
in addition to such other matters as are required by law or as the 
Attorney General, in the discretion of the Attorney General, shall 
propose, include--
            ``(1) information about the standard industry 
        classification, published by the Department of Commerce, for 
        the businesses conducted by the debtor;
            ``(2) length of time the case has been pending;
            ``(3) number of full-time employees as at the date of the 
        order for relief and at end of each reporting period since the 
        case was filed;
            ``(4) cash receipts, cash disbursements and profitability 
        of the debtor for the most recent period and cumulatively since 
        the date of the order for relief;
            ``(5) compliance with title 11, whether or not tax returns 
        and tax payments since the date of the order for relief have 
        been timely filed and made;
            ``(6) all professional fees approved by the court in the 
        case for the most recent period and cumulatively since the date 
        of the order for relief (separately reported, in for the 
        professional fees incurred by or on behalf of the debtor, 
        between those that would have been incurred absent a bankruptcy 
        case and those not); and
            ``(7) plans of reorganization filed and confirmed and, with 
        respect thereto, by class, the recoveries of the holders, 
        expressed in aggregate dollar values and, in the case of 
        claims, as a percentage of total claims of the class 
        allowed.''.
    (b) Technical Amendment.--The table of sections of chapter 39 of 
title 28, United States Code, is amended by adding at the end the 
following:

``589b. Bankruptcy data.''.

SEC. 703. SENSE OF THE CONGRESS REGARDING AVAILABILITY OF BANKRUPTCY 
              DATA.

    It is the sense of the Congress that--
            (1) the national policy of the United States should be that 
        all data held by bankruptcy clerks in electronic form, to the 
        extent such data reflects only public records (as defined in 
        section 107 of title 11, United States Code), should be 
        released in a usable electronic form in bulk to the public 
        subject to such appropriate privacy concerns and safeguards as 
        the Judicial Conference of the United States may determine; and
            (2) there should be established a bankruptcy data system in 
        which--
                    (A) a single set of data definitions and forms are 
                used to collect data nationwide; and
                    (B) data for any particular bankruptcy case are 
                aggregated in the same electronic record.

                 TITLE VIII--BANKRUPTCY TAX PROVISIONS

SEC. 801. TREATMENT OF CERTAIN LIENS.

    (a) Treatment of Certain Liens.--Section 724 of title 11, United 
States Code, is amended--
            (1) in subsection (b), in the matter preceding paragraph 
        (1), by inserting ``(other than to the extent that there is a 
        properly perfected unavoidable tax lien arising in connection 
        with an ad valorem tax on real or personal property of the 
        estate)'' after ``under this title'';
            (2) in subsection (b)(2), after ``507(a)(1)'', insert 
        ``(except that such expenses, other than claims for wages, 
        salaries, or commissions which arise after the filing of a 
        petition, shall be limited to expenses incurred under chapter 7 
        of this title and shall not include expenses incurred under 
        chapter 11 of this title)''; and
            (3) by adding at the end the following:
    ``(e) Before subordinating a tax lien on real or personal property 
of the estate, the trustee shall--
            ``(1) exhaust the unencumbered assets of the estate; and
            ``(2) in a manner consistent with section 506(c) of this 
        title, recover from property securing an allowed secured claim 
        the reasonable, necessary costs and expenses of preserving or 
        disposing of that property.
    ``(f) Notwithstanding the exclusion of ad valorem tax liens set 
forth in this section and subject to the requirements of subsection 
(e)--
            ``(1) claims for wages, salaries, and commissions that are 
        entitled to priority under section 507(a)(3) of this title; or
            ``(2) claims for contributions to an employee benefit plan 
        entitled to priority under section 507(a)(4) of this title,
may be paid from property of the estate which secures a tax lien, or 
the proceeds of such property.''.
    (b) Determination of Tax Liability.--Section 505(a)(2) of title 11, 
United States Code, is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(C) the amount or legality of any amount arising in 
        connection with an ad valorem tax on real or personal property 
        of the estate, if the applicable period for contesting or 
        redetermining that amount under any law (other than a 
        bankruptcy law) has expired.''.

SEC. 802. EFFECTIVE NOTICE TO GOVERNMENT.

    (a) Effective Notice to Governmental Units.--Section 342 of title 
11, United States Code, as amended by section 603, is amended by adding 
at the end the following:
    ``(g) If a debtor lists a governmental unit as a creditor in a list 
or schedule, any notice required to be given by the debtor under this 
title, any rule, any applicable law, or any order of the court, shall 
identify the department, agency, or instrumentality through which the 
debtor is indebted. The debtor shall identify (with information such as 
a taxpayer identification number, loan, account or contract number, or 
real estate parcel number, where applicable), and describe the 
underlying basis for the governmental unit's claim. If the debtor's 
liability to a governmental unit arises from a debt or obligation owed 
or incurred by another individual, entity, or organization, or under a 
different name, the debtor shall identify such individual, entity, 
organization, or name.
    ``(h) The clerk shall keep and update quarterly, in the form and 
manner as the Director of the Administrative Office of the United 
States Courts prescribes, and make available to debtors, a register in 
which a governmental unit may designate a safe harbor mailing address 
for service of notice in cases pending in the district. A governmental 
unit may file a statement with the clerk designating a safe harbor 
address to which notices are to be sent, unless such governmental unit 
files a notice of change of address.''.
    (b) Adoption of Rules Providing Notice.--The Advisory Committee on 
Bankruptcy Rules of the Judicial Conference shall, within a reasonable 
period of time after the date of the enactment of this Act, propose for 
adoption enhanced rules for providing notice to State, Federal, and 
local government units that have regulatory authority over the debtor 
or which may be creditors in the debtor's case. Such rules shall be 
reasonably calculated to ensure that notice will reach the 
representatives of the governmental unit, or subdivision thereof, who 
will be the proper persons authorized to act upon the notice. At a 
minimum, the rules should require that the debtor--
            (1) identify in the schedules and the notice, the 
        subdivision, agency, or entity in respect of which such notice 
        should be received;
            (2) provide sufficient information (such as case captions, 
        permit numbers, taxpayer identification numbers, or similar 
        identifying information) to permit the governmental unit or 
        subdivision thereof, entitled to receive such notice, to 
        identify the debtor or the person or entity on behalf of which 
        the debtor is providing notice where the debtor may be a 
        successor in interest or may not be the same as the person or 
        entity which incurred the debt or obligation; and
            (3) identify, in appropriate schedules, served together 
        with the notice, the property in respect of which the claim or 
        regulatory obligation may have arisen, if any, the nature of 
        such claim or regulatory obligation and the purpose for which 
        notice is being given.
    (c) Effect of Failure of Notice.--Section 342 of title 11, United 
States Code, as amended by section 603 and subsection (a), is amended 
by adding at the end the following:
    ``(i) A notice that does not comply with subsections (d) and (e) 
shall not be effective unless the debtor demonstrates, by clear and 
convincing evidence, that timely notice was given in a manner 
reasonably calculated to satisfy the requirements of this section was 
given, and that--
            ``(1) either the notice was timely sent to the safe harbor 
        address provided in the register maintained by the clerk of the 
        district in which the case was pending for such purposes; or
            ``(2) no safe harbor address was provided in such list for 
        the governmental unit and that an officer of the governmental 
        unit who is responsible for the matter or claim had actual 
        knowledge of the case in sufficient time to act.''.

SEC. 803. NOTICE OF REQUEST FOR A DETERMINATION OF TAXES.

    Section 505(b) of title 11, United States Code, is amended by 
striking ``Unless'' at the beginning of the second sentence thereof and 
inserting ``If the request is made substantially in the manner 
designated by the governmental unit and unless''.

SEC. 804. RATE OF INTEREST ON TAX CLAIMS.

    (a) Amendment.--Chapter 5 of title 11, United States Code, is 
amended by adding at the end the following:
``Sec. 511. Rate of interest on tax claims
    ``If any provision of this title requires the payment of interest 
on a tax claim or requires the payment of interest to enable a creditor 
to receive the present value of the allowed amount of a tax claim, the 
rate of interest shall be as follows:
            ``(1) In the case of ad valorem tax claims, whether secured 
        or unsecured, other unsecured tax claims where interest is 
        required to be paid under section 726(a)(5) of this title, 
        secured tax claims, and administrative tax claims paid under 
        section 503(b)(1) of this title, the rate shall be determined 
        under applicable nonbankruptcy law.
            ``(2) In the case of all other tax claims, the minimum rate 
        of interest shall be the Federal short-term rate rounded to the 
        nearest full percent, determined under section 1274(d) of the 
        Internal Revenue Code of 1986, plus 3 percentage points.
                    ``(A) In the case of claims for Federal income 
                taxes, such rate shall be subject to any adjustment 
                that may be required under section 6621(d) of the 
                Internal Revenue Code of 1986.
                    ``(B) In the case of taxes paid under a confirmed 
                plan or reorganization, such rate shall be determined 
                as of the calendar month in which the plan is 
                confirmed.''.
    (b) Conforming Amendment.--The table of sections of chapter 5 of 
title 11, United States Code, is amended by inserting after the item 
relating to section 510 the following:

``511. Rate of interest on tax claims.''.

SEC. 805. TOLLING OF PRIORITY OF TAX CLAIM TIME PERIODS.

    Section 507(a)(8)(A) of title 11, United States Code, as so 
redesignated, is amended--
            (1) in clause (i) by inserting after ``petition'' and 
        before the semicolon ``, plus any time, plus 6 months, during 
        which the stay of proceedings was in effect in a prior case 
        under this title''; and
            (2) amend clause (ii) to read as follows:
                            ``(ii) assessed within 240 days before the 
                        date of the filing of the petition, exclusive 
                        of--
                                    ``(I) any time plus 30 days during 
                                which an offer in compromise with 
                                respect of such tax, was pending or in 
                                effect during such 240-day period;
                                    ``(II) any time plus 30 days during 
                                which an installment agreement with 
                                respect of such tax was pending or in 
                                effect during such 240-day period, up 
                                to 1 year; and
                                    ``(III) any time plus 6 months 
                                during which a stay of proceedings 
                                against collections was in effect in a 
                                prior case under this title during such 
                                240-day period.''.

SEC. 806. PRIORITY PROPERTY TAXES INCURRED.

    Section 507(a)(8)(B) of title 11, United States Code, is amended by 
striking ``assessed'' and inserting ``incurred''.

SEC. 807. CHAPTER 13 DISCHARGE OF FRAUDULENT AND OTHER TAXES.

    Section 1328(a)(2) of title 11, United States Code, is amended by 
inserting ``(1),'' after ``paragraph''.

SEC. 808. CHAPTER 11 DISCHARGE OF FRAUDULENT TAXES.

    Section 1141(d) of title 11, United States Code, is amended by 
adding at the end the following:
    ``(6) Notwithstanding the provisions of paragraph (1), the 
confirmation of a plan does not discharge a debtor which is a 
corporation from any debt for a tax or customs duty with respect to 
which the debtor made a fraudulent return or willfully attempted in any 
manner to evade or defeat such tax.''.

SEC. 809. STAY OF TAX PROCEEDINGS.

    (a) Section 362 Stay Limited to Prepetition Taxes.--Section 
362(a)(8) of title 11, United States Code, is amended by striking the 
period at the end and inserting ``, in respect of a tax liability for a 
taxable period ending before the order for relief.''.
    (b) Appeal of Tax Court Decisions Permitted.--Section 362(b)(9) of 
title 11, United States Code, is amended--
            (1) in subparagraph (C) by striking ``or'' at the end;
            (2) in subparagraph (D) by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(E) the appeal of a decision by a court or 
                administrative tribunal which determines a tax 
                liability of the debtor without regard to whether such 
                determination was made prepetition or postpetition.''.

SEC. 810. PERIODIC PAYMENT OF TAXES IN CHAPTER 11 CASES.

    Section 1129(a)(9) of title 11, United States Code, is amended--
            (1) in subparagraph (B) by striking ``and'' at the end; and
            (2) in subparagraph (C)--
                    (A) by striking ``deferred cash payments, over a 
                period not exceeding six years after the date of 
                assessment of such claim,'' and inserting ``regular 
                installment payments in cash, but in no case with a 
                balloon provision, and no more than three months apart, 
                beginning no later than the effective date of the plan 
                and ending on the earlier of five years after the 
                petition date or the last date payments are to be made 
                under the plan to unsecured creditors,''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (3) by adding at the end the following:
                    ``(D) with respect to a secured claim which would 
                be described in section 507(a)(8) of this title but for 
                its secured status, the holder of such claim will 
                receive on account of such claim cash payments of not 
                less than is required in subparagraph (C) and over a 
                period no greater than is required in such 
                subparagraph.''.

SEC. 811. AVOIDANCE OF STATUTORY TAX LIENS PROHIBITED.

    Section 545(2) of title 11, United States Code, is amended by 
striking the semicolon at the end and inserting ``, except where such 
purchaser is a purchaser described in section 6323 of the Internal 
Revenue Code of 1986 or similar provision of State or local law;''.

SEC. 812. PAYMENT OF TAXES IN THE CONDUCT OF BUSINESS.

    (a) Payment of Taxes Required.--Section 960 of title 28, United 
States Code, is amended--
            (1) by inserting ``(a)'' before ``Any''; and
            (2) by adding at the end the following:
    ``(b) Such taxes shall be paid when due in the conduct of such 
business unless--
            ``(1) the tax is a property tax secured by a lien against 
        property that is abandoned within a reasonable time after the 
        lien attaches, by the trustee of a bankruptcy estate, pursuant 
        to section 554 of title 11, United States Code; or
            ``(2) payment of the tax is excused under a specific 
        provision of title 11, United States Code.
    ``(c) In a case pending under chapter 7 of title 11, payment of a 
tax may be deferred until final distribution is made under section 726 
of title 11, United States Code, if--
            ``(1) the tax was not incurred by a trustee duly appointed 
        under chapter 7 of title 11, United States Code; or
            ``(2) before the due date of the tax, the court has made a 
        finding of probable insufficiency of funds of the estate to pay 
        in full the administrative expenses allowed under section 
        503(b) of title 11 that have the same priority in distribution 
        under section 726(b) of title 11 as such tax.''.
    (b) Payment of Ad Valorem Taxes Required.--Section 503(b)(1)(B) of 
title 11, United States Code, is amended in clause (i) by inserting 
after ``estate,'' and before ``except'' the following: ``whether 
secured or unsecured, including property taxes for which liability is 
in rem only, in personam or both,''.
    (c) Request for Payment of Administrative Expense Taxes 
Eliminated.--Section 503(b)(1) of title 11, United States Code, is 
amended by adding at the end the following:
            ``(D) notwithstanding the requirements of subsection (a) of 
        this section, a governmental unit shall not be required to file 
        a request for the payment of a claim described in subparagraph 
        (B) or (C);''.
    (d) Payment of Taxes and Fees as Secured Claims.--Section 506 of 
title 11, United States Code, is amended--
            (1) in subsection (b) by inserting ``or State statute'' 
        after ``agreement''; and
            (2) in subsection (c) by inserting ``, including the 
        payment of all ad valorem property taxes in respect of the 
        property'' before the period at the end.

SEC. 813. TARDILY FILED PRIORITY TAX CLAIMS.

    Section 726(a)(1) of title 11, United States Code, is amended by 
striking ``before the date on which the trustee commences distribution 
under this section'' and inserting ``on or before the earlier of 10 
days after the mailing to creditors of the summary of the trustee's 
final report or the date on which the trustee commences final 
distribution under this section''.

SEC. 814. INCOME TAX RETURNS PREPARED BY TAX AUTHORITIES.

    Section 523(a)(1)(B) of title 11, United States Code, is amended--
            (1) by inserting ``or equivalent report or notice,'' after 
        ``a return,'';
            (2) in clause (i)--
                    (A) by inserting ``or given'' after ``filed''; and
                    (B) by striking ``or'' at the end;
            (3) in clause (ii)--
                    (A) by inserting ``or given'' after ``filed''; and
                    (B) by inserting ``, report, or notice'' after 
                ``return''; and
            (4) by adding at the end the following:
                            ``(iii) for purposes of this subsection, a 
                        return--
                                    ``(I) must satisfy the requirements 
                                of applicable nonbankruptcy law, and 
                                includes a return prepared pursuant to 
                                section 6020(a) of the Internal Revenue 
                                Code of 1986, or similar State or local 
                                law, or a written stipulation to a 
                                judgment entered by a nonbankruptcy 
                                tribunal, but does not include a return 
                                made pursuant to section 6020(b) of the 
                                Internal Revenue Code of 1986, or 
                                similar State or local law; and
                                    ``(II) must have been filed in a 
                                manner permitted by applicable 
                                nonbankruptcy law; or''.

SEC. 815. DISCHARGE OF THE ESTATE'S LIABILITY FOR UNPAID TAXES.

    Section 505(b) of title 11, United States Code, is amended in the 
second sentence by inserting ``the estate,'' after 
``misrepresentation,''.

SEC. 816. REQUIREMENT TO FILE TAX RETURNS TO CONFIRM CHAPTER 13 PLANS.

    (a) Filing of Prepetition Tax Returns Required for Plan 
Confirmation.--Section 1325(a) of title 11, United States Code, as 
amended by section 140, is amended--
            (1) in paragraph (6) by striking ``and'' at the end;
            (2) in paragraph (7) by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(8) if the debtor has filed all Federal, State, and local 
        tax returns as required by section 1308 of this title.''.
    (b) Additional Time Permitted for Filing Tax Returns.--(1) Chapter 
13 of title 11, United States Code, as amended by section 135, is 
amended by adding at the end the following:
``Sec. 1308. Filing of prepetition tax returns
    ``(a) On or before the day prior to the day on which the first 
meeting of the creditors is convened under section 341(a) of this 
title, the debtor shall have filed with appropriate tax authorities all 
tax returns for all taxable periods ending in the 3-year period ending 
on the date of filing of the petition.
    ``(b) If the tax returns required by subsection (a) have not been 
filed by the date on which the first meeting of creditors is convened 
under section 341(a) of this title, the trustee may continue such 
meeting for a reasonable period of time, to allow the debtor additional 
time to file any unfiled returns, but such additional time shall be no 
more than--
            ``(1) for returns that are past due as of the date of the 
        filing of the petition, 120 days from such date;
            ``(2) for returns which are not past due as of the date of 
        the filing of the petition, the later of 120 days from such 
        date or the due date for such returns under the last automatic 
        extension of time for filing such returns to which the debtor 
        is entitled, and for which request has been timely made, 
        according to applicable nonbankruptcy law; and
            ``(3) upon notice and hearing, and order entered before the 
        lapse of any deadline fixed according to this subsection, where 
        the debtor demonstrates, by clear and convincing evidence, that 
        the failure to file the returns as required is because of 
        circumstances beyond the control of the debtor, the court may 
        extend the deadlines set by the trustee as provided in this 
        subsection for--
                    ``(A) a period of no more than 30 days for returns 
                described in paragraph (1) of this subsection; and
                    ``(B) for no more than the period of time ending on 
                the applicable extended due date for the returns 
                described in paragraph (2).
    ``(c) For purposes of this section only, a return includes a return 
prepared pursuant to section 6020 (a) or (b) of the Internal Revenue 
Code of 1986 or similar State or local law, or a written stipulation to 
a judgment entered by a nonbankruptcy tribunal.''.
    (2) The table of sections of chapter 13 of title 11, United States 
Code, is amended by inserting after the item relating to section 1307 
the following:

``1308. Filing of prepetition tax returns.''.
    (c) Dismissal or Conversion on Failure To Comply.--Section 1307 of 
title 11, United States Code, is amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (d) the following:
    ``(e) Upon the failure of the debtor to file tax returns under 
section 1308 of this title, on request of a party in interest or the 
United States trustee and after notice and a hearing, the court shall 
dismiss a case or convert a case under this chapter to a case under 
chapter 7 of this title, whichever is in the best interests of 
creditors and the estate.''.
    (d) Timely Filed Claims.--Section 502(b)(9) of title 11, United 
States Code, is amended by striking the period at the end and inserting 
``, and except that in a case under chapter 13 of this title, a claim 
of a governmental unit for a tax in respect of a return filed under 
section 1308 of this title shall be timely if it is filed on or before 
60 days after such return or returns were filed as required.''.
    (e) Rules for Objections to Claims and to Confirmation.--It is the 
sense of the Congress that the Advisory Committee on Bankruptcy Rules 
of the Judicial Conference should, within a reasonable period of time 
after the date of the enactment of this Act, propose for adoption 
amended Federal Rules of Bankruptcy Procedure which provide that--
            (1) notwithstanding the provisions of Rule 3015(f), in 
        cases under chapter 13 of title 11, United States Code, a 
        governmental unit may object to the confirmation of a plan on 
        or before 60 days after the debtor files all tax returns 
        required under sections 1308 and 1325(a)(7) of title 11, United 
        States Code; and
            (2) in addition to the provisions of Rule 3007, in a case 
        under chapter 13 of title 11, United States Code, no objection 
        to a tax in respect of a return required to be filed under such 
        section 1308 shall be filed until such return has been filed as 
        required.

SEC. 817. STANDARDS FOR TAX DISCLOSURE.

    Section 1125(a) of title 11, United States Code, is amended in 
paragraph (1)--
            (1) by inserting after ``records,'' the following: 
        ``including a full discussion of the potential material 
        Federal, State, and local tax consequences of the plan to the 
        debtor, any successor to the debtor, and a hypothetical 
        investor domiciled in the State in which the debtor resides or 
        has its principal place of business typical of the holders of 
        claims or interests in the case,'';
            (2) by inserting ``such'' after ``enable''; and
            (3) by striking ``reasonable'' where it appears after 
        ``hypothetical'' and by striking ``typical of holders of claims 
        or interests'' after ``investor''.

SEC. 818. SETOFF OF TAX REFUNDS.

    Section 362(b) of title 11, United States Code, as amended by 
sections 118, 132, 136, and 203, is amended--
            (1) in paragraph (29) by striking ``or'';
            (2) in paragraph (30) by striking the period at the end and 
        inserting ``; or''; and
            (3) by inserting after paragraph (30) the following:
            ``(31) under subsection (a) of the setoff of an income tax 
        refund, by a governmental unit, in respect of a taxable period 
        which ended before the order for relief against an income tax 
        liability for a taxable period which also ended before the 
        order for relief, unless--
                    ``(A) prior to such setoff, an action to determine 
                the amount or legality of such tax liability under 
                section 505(a) was commenced; or
                    ``(B) where the setoff of an income tax refund is 
                not permitted because of a pending action to determine 
                the amount or legality of a tax liability, the 
                governmental unit may hold the refund pending the 
                resolution of the action.''.

            TITLE IX--ANCILLARY AND OTHER CROSS-BORDER CASES

SEC. 901. AMENDMENT TO ADD CHAPTER 15 TO TITLE 11, UNITED STATES CODE.

    (a) In General.--Title 11, United States Code, is amended by 
inserting after chapter 13 the following:

          ``CHAPTER 15--ANCILLARY AND OTHER CROSS-BORDER CASES

``Sec.
``1501. Purpose and scope of application.
                   ``SUBCHAPTER I--GENERAL PROVISIONS

``1502. Definitions.
``1503. International obligations of the United States.
``1504. Commencement of ancillary case.
``1505. Authorization to act in a foreign country.
``1506. Public policy exception.
``1507. Additional assistance.
``1508. Interpretation.
``SUBCHAPTER II--ACCESS OF FOREIGN REPRESENTATIVES AND CREDITORS TO THE 
                                 COURT

``1509. Right of direct access.
``1510. Limited jurisdiction.
``1511. Commencement of case under section 301 or 303.
``1512. Participation of a foreign representative in a case under this 
                            title.
``1513. Access of foreign creditors to a case under this title.
``1514. Notification to foreign creditors concerning a case under this 
                            title.
    ``SUBCHAPTER III--RECOGNITION OF A FOREIGN PROCEEDING AND RELIEF

``1515. Application for recognition of a foreign proceeding.
``1516. Presumptions concerning recognition.
``1517. Order recognizing a foreign proceeding.
``1518. Subsequent information.
``1519. Relief that may be granted upon petition for recognition of a 
                            foreign proceeding.
``1520. Effects of recognition of a foreign main proceeding.
``1521. Relief that may be granted upon recognition of a foreign 
                            proceeding.
``1522. Protection of creditors and other interested persons.
``1523. Actions to avoid acts detrimental to creditors.
``1524. Intervention by a foreign representative.
     ``SUBCHAPTER IV--COOPERATION WITH FOREIGN COURTS AND FOREIGN 
                            REPRESENTATIVES

``1525. Cooperation and direct communication between the court and 
                            foreign courts or foreign representatives.
``1526. Cooperation and direct communication between the trustee and 
                            foreign courts or foreign representatives.
``1527. Forms of cooperation.
                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``1528. Commencement of a case under this title after recognition of a 
                            foreign main proceeding.
``1529. Coordination of a case under this title and a foreign 
                            proceeding.
``1530. Coordination of more than 1 foreign proceeding.
``1531. Presumption of insolvency based on recognition of a foreign 
                            main proceeding.
``1532. Rule of payment in concurrent proceedings.
``Sec. 1501. Purpose and scope of application
    ``(a) The purpose of this chapter is to incorporate the Model Law 
on Cross-Border Insolvency so as to provide effective mechanisms for 
dealing with cases of cross-border insolvency with the objectives of--
            ``(1) cooperation between--
                    ``(A) United States courts, United States trustees, 
                trustees, examiners, debtors, and debtors in 
                possession; and
                    ``(B) the courts and other competent authorities of 
                foreign countries involved in cross-border insolvency 
                cases;
            ``(2) greater legal certainty for trade and investment;
            ``(3) fair and efficient administration of cross-border 
        insolvencies that protects the interests of all creditors, and 
        other interested entities, including the debtor;
            ``(4) protection and maximization of the value of the 
        debtor's assets; and
            ``(5) facilitation of the rescue of financially troubled 
        businesses, thereby protecting investment and preserving 
        employment.
    ``(b) This chapter applies where--
            ``(1) assistance is sought in the United States by a 
        foreign court or a foreign representative in connection with a 
        foreign proceeding;
            ``(2) assistance is sought in a foreign country in 
        connection with a case under this title;
            ``(3) a foreign proceeding and a case under this title with 
        respect to the same debtor are taking place concurrently; or
            ``(4) creditors or other interested persons in a foreign 
        country have an interest in requesting the commencement of, or 
        participating in, a case or proceeding under this title.
    ``(c) This chapter does not apply to--
            ``(1) a proceeding concerning an entity, other than a 
        foreign insurance company, identified by exclusion in 
        subsection 109(b);
            ``(2) an individual, or to an individual and such 
        individual's spouse, who have debts within the limits specified 
        in section 109(e) and who are citizens of the United States or 
        aliens lawfully admitted for permanent residence in the United 
        States; or
            ``(3) an entity subject to a proceeding under the 
        Securities Investor Protection Act, a stockbroker subject to 
        subchapter III of chapter 7 of this title, or a commodity 
        broker subject to subchapter IV of chapter 7 of this title.
    ``(d) The court may not grant relief under this chapter with 
respect to any deposit, escrow, trust fund, or other security required 
or permitted under any applicable State insurance law or regulation for 
the benefit of claim holders in the United States.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``Sec. 1502. Definitions
    ``For the purposes of this chapter, the term--
            ``(1) `debtor' means an entity that is the subject of a 
        foreign proceeding;
            ``(2) `establishment' means any place of operations where 
        the debtor carries out a nontransitory economic activity;
            ``(3) `foreign court' means a judicial or other authority 
        competent to control or supervise a foreign proceeding;
            ``(4) `foreign main proceeding' means a foreign proceeding 
        taking place in the country where the debtor has the center of 
        its main interests;
            ``(5) `foreign nonmain proceeding' means a foreign 
        proceeding, other than a foreign main proceeding, taking place 
        in a country where the debtor has an establishment;
            ``(6) `trustee' includes a trustee, a debtor in possession 
        in a case under any chapter of this title, or a debtor under 
        chapter 9 of this title; and
            ``(7) `within the territorial jurisdiction of the United 
        States' when used with reference to property of a debtor refers 
        to tangible property located within the territory of the United 
        States and intangible property deemed under applicable 
        nonbankruptcy law to be located within that territory, 
        including any property subject to attachment or garnishment 
        that may properly be seized or garnished by an action in a 
        Federal or State court in the United States.
``Sec. 1503. International obligations of the United States
    ``To the extent that this chapter conflicts with an obligation of 
the United States arising out of any treaty or other form of agreement 
to which it is a party with one or more other countries, the 
requirements of the treaty or agreement prevail.
``Sec. 1504. Commencement of ancillary case
    ``A case under this chapter is commenced by the filing of a 
petition for recognition of a foreign proceeding under section 1515.
``Sec. 1505. Authorization to act in a foreign country
    ``A trustee or another entity (including an examiner) may be 
authorized by the court to act in a foreign country on behalf of an 
estate created under section 541. An entity authorized to act under 
this section may act in any way permitted by the applicable foreign 
law.
``Sec. 1506. Public policy exception
    ``Nothing in this chapter prevents the court from refusing to take 
an action governed by this chapter if the action would be manifestly 
contrary to the public policy of the United States.
``Sec. 1507. Additional assistance
    ``(a) Subject to the specific limitations stated elsewhere in this 
chapter the court, upon recognition of a foreign proceeding, the court 
may provide additional assistance to a foreign representative under 
this title or under other laws of the United States.
    ``(b) In determining whether to provide additional assistance under 
this title or under other laws of the United States, the court shall 
consider whether such additional assistance, consistent with the 
principles of comity, will reasonably assure--
            ``(1) just treatment of all holders of claims against or 
        interests in the debtor's property;
            ``(2) protection of claim holders in the United States 
        against prejudice and inconvenience in the processing of claims 
        in such foreign proceeding;
            ``(3) prevention of preferential or fraudulent dispositions 
        of property of the debtor;
            ``(4) distribution of proceeds of the debtor's property 
        substantially in accordance with the order prescribed by this 
        title; and
            ``(5) if appropriate, the provision of an opportunity for a 
        fresh start for the individual that such foreign proceeding 
        concerns.
``Sec. 1508. Interpretation
    ``In interpreting this chapter, the court shall consider its 
international origin, and the need to promote an application of this 
chapter that is consistent with the application of similar statutes 
adopted by foreign jurisdictions.

``SUBCHAPTER II--ACCESS OF FOREIGN REPRESENTATIVES AND CREDITORS TO THE 
                                 COURT

``Sec. 1509. Right of direct access
    ``(a) A foreign representative may commence a case under section 
1504 of this title by filing with the court a petition for recognition 
of a foreign proceeding under section 1515 of this title.
    ``(b) If the court grants recognition under section 1515 of this 
title, and subject to any limitations that the court may impose 
consistent with the policy of this chapter--
            ``(1) the foreign representative has the capacity to sue 
        and be sued in a court in the United States;
            ``(2) the foreign representative may apply directly to a 
        court in the United States for appropriate relief in that 
        court; and
            ``(3) a court in the United States shall grant comity or 
        cooperation to the foreign representative.
    ``(c) A request for comity or cooperation by a foreign 
representative in a court in the United States shall be accompanied by 
a certified copy of an order granting recognition under section 1517 of 
this title.
    ``(d) If the court denies recognition under this chapter, the court 
may issue any appropriate order necessary to prevent the foreign 
representative from obtaining comity or cooperation from courts in the 
United States.
    ``(e) Whether or not the court grants recognition, and subject to 
sections 306 and 1510 of this title, a foreign representative is 
subject to applicable nonbankruptcy law.
    ``(f) Notwithstanding any other provision of this section, the 
failure of a foreign representative to commence a case or to obtain 
recognition under this chapter does not affect any right the foreign 
representative may have to sue in a court in the United State to 
collect or recover a claim which is the property of the debtor.''.
``Sec. 1510. Limited jurisdiction
    ``The sole fact that a foreign representative files a petition 
under section 1515 does not subject the foreign representative to the 
jurisdiction of any court in the United States for any other purpose.
``Sec. 1511. Commencement of case under section 301 or 303
    ``(a) Upon recognition, a foreign representative may commence--
            ``(1) an involuntary case under section 303; or
            ``(2) a voluntary case under section 301 or 302, if the 
        foreign proceeding is a foreign main proceeding.
    ``(b) The petition commencing a case under subsection (a) must be 
accompanied by certified copy of an order granting recognition. The 
court where the petition for recognition has been filed must be advised 
of the foreign representative's intent to commence a case under 
subsection (a) prior to such commencement.
``Sec. 1512. Participation of a foreign representative in a case under 
              this title
    ``Upon recognition of a foreign proceeding, the foreign 
representative in that proceeding is entitled to participate as a party 
in interest in a case regarding the debtor under this title.
``Sec. 1513. Access of foreign creditors to a case under this title
    ``(a) Foreign creditors have the same rights regarding the 
commencement of, and participation in, a case under this title as 
domestic creditors.
    ``(b)(1) Subsection (a) does not change or codify present law as to 
the priority of claims under section 507 or 726 of this title, except 
that the claim of a foreign creditor under those sections shall not be 
given a lower priority than that of general unsecured claims without 
priority solely because the holder of such claim is a foreign creditor.
    ``(2)(A) Subsection (a) and paragraph (1) do not change or codify 
present law as to the allowability of foreign revenue claims or other 
foreign public law claims in a proceeding under this title.
    ``(B) Allowance and priority as to a foreign tax claim or other 
foreign public law claim shall be governed by any applicable tax treaty 
of the United States, under the conditions and circumstances specified 
therein.
``Sec. 1514. Notification to foreign creditors concerning a case under 
              this title
    ``(a) Whenever in a case under this title notice is to be given to 
creditors generally or to any class or category of creditors, such 
notice shall also be given to the known creditors generally, or to 
creditors in the notified class or category, that do not have addresses 
in the United States. The court may order that appropriate steps be 
taken with a view to notifying any creditor whose address is not yet 
known.
    ``(b) Such notification to creditors with foreign addresses 
described in subsection (a) shall be given individually, unless the 
court considers that, under the circumstances, some other form of 
notification would be more appropriate. No letters rogatory or other 
similar formality is required.
    ``(c) When a notification of commencement of a case is to be given 
to foreign creditors, the notification shall--
            ``(1) indicate the time period for filing proofs of claim 
        and specify the place for their filing;
            ``(2) indicate whether secured creditors need to file their 
        proofs of claim; and
            ``(3) contain any other information required to be included 
        in such a notification to creditors under this title and the 
        orders of the court.
    ``(d) Any rule of procedure or order of the court as to notice or 
the filing of a claim shall provide such additional time to creditors 
with foreign addresses as is reasonable under the circumstances.

    ``SUBCHAPTER III--RECOGNITION OF A FOREIGN PROCEEDING AND RELIEF

``Sec. 1515. Application for recognition of a foreign proceeding
    ``(a) A foreign representative applies to the court for recognition 
of the foreign proceeding in which the foreign representative has been 
appointed by filing a petition for recognition.
    ``(b) A petition for recognition shall be accompanied by--
            ``(1) a certified copy of the decision commencing the 
        foreign proceeding and appointing the foreign representative;
            ``(2) a certificate from the foreign court affirming the 
        existence of the foreign proceeding and of the appointment of 
        the foreign representative; or
            ``(3) in the absence of evidence referred to in paragraphs 
        (1) and (2), any other evidence acceptable to the court of the 
        existence of the foreign proceeding and of the appointment of 
        the foreign representative.
    ``(c) A petition for recognition shall also be accompanied by a 
statement identifying all foreign proceedings with respect to the 
debtor that are known to the foreign representative.
    ``(d) The documents referred to in paragraphs (1) and (2) of 
subsection (b) must be translated into English. The court may require a 
translation into English of additional documents.
``Sec. 1516. Presumptions concerning recognition
    ``(a) If the decision or certificate referred to in section 1515(b) 
indicates that the foreign proceeding is a foreign proceeding as 
defined in section 101 and that the person or body is a foreign 
representative as defined in section 101, the court is entitled to so 
presume.
    ``(b) The court is entitled to presume that documents submitted in 
support of the petition for recognition are authentic, whether or not 
they have been legalized.
    ``(c) In the absence of evidence to the contrary, the debtor's 
registered office, or habitual residence in the case of an individual, 
is presumed to be the center of the debtor's main interests.
``Sec. 1517. Order recognizing a foreign proceeding
    ``(a) Subject to section 1506, after notice and a hearing an order 
recognizing a foreign proceeding shall be entered if--
            ``(1) the foreign proceeding is a foreign main proceeding 
        or foreign nonmain proceeding within the meaning of section 
        1502;
            ``(2) the foreign representative applying for recognition 
        is a person or body as defined in section 101; and
            ``(3) the petition meets the requirements of section 1515.
    ``(b) The foreign proceeding shall be recognized--
            ``(1) as a foreign main proceeding if it is taking place in 
        the country where the debtor has the center of its main 
        interests; or
            ``(2) as a foreign nonmain proceeding if the debtor has an 
        establishment within the meaning of section 1502 in the foreign 
        country where the proceeding is pending.
    ``(c) A petition for recognition of a foreign proceeding shall be 
decided upon at the earliest possible time. Entry of an order 
recognizing a foreign proceeding constitutes recognition under this 
chapter.
    ``(d) The provisions of this subchapter do not prevent modification 
or termination of recognition if it is shown that the grounds for 
granting it were fully or partially lacking or have ceased to exist, 
but in considering such action the court shall give due weight to 
possible prejudice to parties that have relied upon the granting of 
recognition. The case under this chapter may be closed in the manner 
prescribed under section 350.
``Sec. 1518. Subsequent information
    ``From the time of filing the petition for recognition of the 
foreign proceeding, the foreign representative shall file with the 
court promptly a notice of change of status concerning--
            ``(1) any substantial change in the status of the foreign 
        proceeding or the status of the foreign representative's 
        appointment; and
            ``(2) any other foreign proceeding regarding the debtor 
        that becomes known to the foreign representative.
``Sec. 1519. Relief that may be granted upon petition for recognition 
              of a foreign proceeding
    ``(a) From the time of filing a petition for recognition until the 
court rules on the petition, the court may, at the request of the 
foreign representative, where relief is urgently needed to protect the 
assets of the debtor or the interests of the creditors, grant relief of 
a provisional nature, including--
            ``(1) staying execution against the debtor's assets;
            ``(2) entrusting the administration or realization of all 
        or part of the debtor's assets located in the United States to 
        the foreign representative or another person authorized by the 
        court, including an examiner, in order to protect and preserve 
        the value of assets that, by their nature or because of other 
        circumstances, are perishable, susceptible to devaluation or 
        otherwise in jeopardy; and
            ``(3) any relief referred to in paragraph (3), (4), or (7) 
        of section 1521(a).
    ``(b) Unless extended under section 1521(a)(6), the relief granted 
under this section terminates when the petition for recognition is 
decided upon.
    ``(c) It is a ground for denial of relief under this section that 
such relief would interfere with the administration of a foreign main 
proceeding.
    ``(d) The court may not enjoin a police or regulatory act of a 
governmental unit, including a criminal action or proceeding, under 
this section.
    ``(e) The standards, procedures, and limitations applicable to an 
injunction shall apply to relief under this section.
``Sec. 1520. Effects of recognition of a foreign main proceeding
    ``(a) Upon recognition of a foreign proceeding that is a foreign 
main proceeding--
            ``(1) sections 361 and 362 with respect to the debtor and 
        that property of the debtor that is within the territorial 
        jurisdiction of the United States;
            ``(2) sections 363, 549, and 552 of this title apply to a 
        transfer of an interest of the debtor in property that is 
        within the territorial jurisdiction of the United States to the 
        same extent that the sections would apply to property of an 
        estate;
            ``(3) unless the court orders otherwise, the foreign 
        representative may operate the debtor's business and may 
        exercise the rights and powers of a trustee under and to the 
        extent provided by sections 363 and 552; and
            ``(4) section 552 applies to property of the debtor that is 
        within the territorial jurisdiction of the United States.''.
    ``(b) Subsection (a) does not affect the right to commence an 
individual action or proceeding in a foreign country to the extent 
necessary to preserve a claim against the debtor.
    ``(c) Subsection (a) does not affect the right of a foreign 
representative or an entity to file a petition commencing a case under 
this title or the right of any party to file claims or take other 
proper actions in such a case.
``Sec. 1521. Relief that may be granted upon recognition of a foreign 
              proceeding
    ``(a) Upon recognition of a foreign proceeding, whether main or 
nonmain, where necessary to effectuate the purpose of this chapter and 
to protect the assets of the debtor or the interests of the creditors, 
the court may, at the request of the foreign representative, grant any 
appropriate relief, including--
            ``(1) staying the commencement or continuation of an 
        individual action or proceeding concerning the debtor's assets, 
        rights, obligations or liabilities to the extent they have not 
        been stayed under section 1520(a);
            ``(2) staying execution against the debtor's assets to the 
        extent it has not been stayed under section 1520(a);
            ``(3) suspending the right to transfer, encumber or 
        otherwise dispose of any assets of the debtor to the extent 
        this right has not been suspended under section 1520(a);
            ``(4) providing for the examination of witnesses, the 
        taking of evidence or the delivery of information concerning 
        the debtor's assets, affairs, rights, obligations or 
        liabilities;
            ``(5) entrusting the administration or realization of all 
        or part of the debtor's assets within the territorial 
        jurisdiction of the United States to the foreign representative 
        or another person, including an examiner, authorized by the 
        court;
            ``(6) extending relief granted under section 1519(a); and
            ``(7) granting any additional relief that may be available 
        to a trustee, except for relief available under sections 522, 
        544, 545, 547, 548, 550, and 724(a).
    ``(b) Upon recognition of a foreign proceeding, whether main or 
nonmain, the court may, at the request of the foreign representative, 
entrust the distribution of all or part of the debtor's assets located 
in the United States to the foreign representative or another person, 
including an examiner, authorized by the court, provided that the court 
is satisfied that the interests of creditors in the United States are 
sufficiently protected.
    ``(c) In granting relief under this section to a representative of 
a foreign nonmain proceeding, the court must be satisfied that the 
relief relates to assets that, under the law of the United States, 
should be administered in the foreign nonmain proceeding or concerns 
information required in that proceeding.
    ``(d) The court may not enjoin a police or regulatory act of a 
governmental unit, including a criminal action or proceeding, under 
this section.
    ``(e) The standards, procedures, and limitations applicable to an 
injunction shall apply to relief under paragraphs (1), (2), (3), and 
(6) of subsection (a).
``Sec. 1522. Protection of creditors and other interested persons
    ``(a) The court may grant relief under section 1519 or 1521, or may 
modify or terminate relief under subsection (c), only if the interests 
of the creditors and other interested entities, including the debtor, 
are sufficiently protected.
    ``(b) The court may subject relief granted under section 1519 or 
1521, or the operation of the debtor's business under section 
1520(a)(3) of this title, to conditions it considers appropriate, 
including the giving of security or the filing of a bond.
    ``(c) The court may, at the request of the foreign representative 
or an entity affected by relief granted under section 1519 or 1521, or 
at its own motion, modify or terminate such relief.
    ``(d) Section 1104(d) shall apply to the appointment of an examiner 
under this chapter. Any examiner shall comply with the qualification 
requirements imposed on a trustee by section 322.
``Sec. 1523. Actions to avoid acts detrimental to creditors
    ``(a) Upon recognition of a foreign proceeding, the foreign 
representative has standing in a case concerning the debtor pending 
under another chapter of this title to initiate actions under sections 
522, 544, 545, 547, 548, 550, and 724(a).
    ``(b) When the foreign proceeding is a foreign nonmain proceeding, 
the court must be satisfied that an action under subsection (a) relates 
to assets that, under United States law, should be administered in the 
foreign nonmain proceeding.
``Sec. 1524. Intervention by a foreign representative
    ``Upon recognition of a foreign proceeding, the foreign 
representative may intervene in any proceedings in a State or Federal 
court in the United States in which the debtor is a party.

     ``SUBCHAPTER IV--COOPERATION WITH FOREIGN COURTS AND FOREIGN 
                            REPRESENTATIVES

``Sec. 1525. Cooperation and direct communication between the court and 
              foreign courts or foreign representatives
    ``(a) Consistent with section 1501, the court shall cooperate to 
the maximum extent possible with foreign courts or foreign 
representatives, either directly or through the trustee.
    ``(b) The court is entitled to communicate directly with, or to 
request information or assistance directly from, foreign courts or 
foreign representatives, subject to the rights of parties in interest 
to notice and participation.
``Sec. 1526. Cooperation and direct communication between the trustee 
              and foreign courts or foreign representatives
    ``(a) Consistent with section 1501, the trustee or other person, 
including an examiner, authorized by the court, shall, subject to the 
supervision of the court, cooperate to the maximum extent possible with 
foreign courts or foreign representatives.
    ``(b) The trustee or other person, including an examiner, 
authorized by the court is entitled, subject to the supervision of the 
court, to communicate directly with foreign courts or foreign 
representatives.
``Sec. 1527. Forms of cooperation
    ``Cooperation referred to in sections 1525 and 1526 may be 
implemented by any appropriate means, including--
            ``(1) appointment of a person or body, including an 
        examiner, to act at the direction of the court;
            ``(2) communication of information by any means considered 
        appropriate by the court;
            ``(3) coordination of the administration and supervision of 
        the debtor's assets and affairs;
            ``(4) approval or implementation of agreements concerning 
        the coordination of proceedings; and
            ``(5) coordination of concurrent proceedings regarding the 
        same debtor.

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``Sec. 1528. Commencement of a case under this title after recognition 
              of a foreign main proceeding
    ``After recognition of a foreign main proceeding, a case under 
another chapter of this title may be commenced only if the debtor has 
assets in the United States. The effects of such case shall be 
restricted to the assets of the debtor that are within the territorial 
jurisdiction of the United States and, to the extent necessary to 
implement cooperation and coordination under sections 1525, 1526, and 
1527, to other assets of the debtor that are within the jurisdiction of 
the court under sections 541(a) of this title, and 1334(e) of title 28, 
to the extent that such other assets are not subject to the 
jurisdiction and control of a foreign proceeding that has been 
recognized under this chapter.
``Sec. 1529. Coordination of a case under this title and a foreign 
              proceeding
    ``Where a foreign proceeding and a case under another chapter of 
this title are taking place concurrently regarding the same debtor, the 
court shall seek cooperation and coordination under sections 1525, 
1526, and 1527, and the following shall apply:
            ``(1) When the case in the United States is taking place at 
        the time the petition for recognition of the foreign proceeding 
        is filed--
                    ``(A) any relief granted under sections 1519 or 
                1521 must be consistent with the relief granted in the 
                case in the United States; and
                    ``(B) even if the foreign proceeding is recognized 
                as a foreign main proceeding, section 1520 does not 
                apply.
            ``(2) When a case in the United States under this title 
        commences after recognition, or after the filing of the 
        petition for recognition, of the foreign proceeding--
                    ``(A) any relief in effect under sections 1519 or 
                1521 shall be reviewed by the court and shall be 
                modified or terminated if inconsistent with the case in 
                the United States; and
                    ``(B) if the foreign proceeding is a foreign main 
                proceeding, the stay and suspension referred to in 
                section 1520(a) shall be modified or terminated if 
                inconsistent with the relief granted in the case in the 
                United States.
            ``(3) In granting, extending, or modifying relief granted 
        to a representative of a foreign nonmain proceeding, the court 
        must be satisfied that the relief relates to assets that, under 
        the law of the United States, should be administered in the 
        foreign nonmain proceeding or concerns information required in 
        that proceeding.
            ``(4) In achieving cooperation and coordination under 
        sections 1528 and 1529, the court may grant any of the relief 
        authorized under section 305.
``Sec. 1530. Coordination of more than 1 foreign proceeding
    ``In matters referred to in section 1501, with respect to more than 
1 foreign proceeding regarding the debtor, the court shall seek 
cooperation and coordination under sections 1525, 1526, and 1527, and 
the following shall apply:
            ``(1) Any relief granted under section 1519 or 1521 to a 
        representative of a foreign nonmain proceeding after 
        recognition of a foreign main proceeding must be consistent 
        with the foreign main proceeding.
            ``(2) If a foreign main proceeding is recognized after 
        recognition, or after the filing of a petition for recognition, 
        of a foreign nonmain proceeding, any relief in effect under 
        section 1519 or 1521 shall be reviewed by the court and shall 
        be modified or terminated if inconsistent with the foreign main 
        proceeding.
            ``(3) If, after recognition of a foreign nonmain 
        proceeding, another foreign nonmain proceeding is recognized, 
        the court shall grant, modify, or terminate relief for the 
        purpose of facilitating coordination of the proceedings.
``Sec. 1531. Presumption of insolvency based on recognition of a 
              foreign main proceeding
    ``In the absence of evidence to the contrary, recognition of a 
foreign main proceeding is for the purpose of commencing a proceeding 
under section 303, proof that the debtor is generally not paying its 
debts as such debts become due.
``Sec. 1532. Rule of payment in concurrent proceedings
    ``Without prejudice to secured claims or rights in rem, a creditor 
who has received payment with respect to its claim in a foreign 
proceeding pursuant to a law relating to insolvency may not receive a 
payment for the same claim in a case under any other chapter of this 
title regarding the debtor, so long as the payment to other creditors 
of the same class is proportionately less than the payment the creditor 
has already received.''.
    (b) Clerical Amendment.--The table of chapters for title 11, United 
States Code, is amended by inserting after the item relating to chapter 
13 the following:

``15. Ancillary and Other Cross-Border Cases................    1501''.

SEC. 902. OTHER AMENDMENTS TO TITLES 11 AND 28, UNITED STATES CODE.

    (a) Applicability of Chapters.--Section 103 of title 11, United 
States Code, is amended--
            (1) in subsection (a), by inserting before the period the 
        following: ``, and this chapter, sections 307, 304, 555 through 
        557, 559, and 560 apply in a case under chapter 15''; and
            (2) by adding at the end the following:
    ``(j) Chapter 15 applies only in a case under such chapter, except 
that--
            ``(1) sections 1505, 1513, and 1514 apply in all cases 
        under this title; and
            ``(2) section 1509 applies whether or not a case under this 
        title is pending.''.
    (b) Definitions.--Paragraphs (23) and (24) of title 11, United 
States Code, are amended to read as follows:
            ``(23) `foreign proceeding' means a collective judicial or 
        administrative proceeding in a foreign country, including an 
        interim proceeding, under a law relating to insolvency or 
        adjustment of debt in which proceeding the assets and affairs 
        of the debtor are subject to control or supervision by a 
        foreign court, for the purpose of reorganization or 
        liquidation;
            ``(24) `foreign representative' means a person or body, 
        including a person or body appointed on an interim basis, 
        authorized in a foreign proceeding to administer the 
        reorganization or the liquidation of the debtor's assets or 
        affairs or to act as a representative of the foreign 
        proceeding;''.
    (c) Amendments to Title 28, United States Code.--
            (1) Procedures.--Section 157(b)(2) of title 28, United 
        States Code, is amended--
                    (A) in subparagraph (N), by striking ``and'' at the 
                end;
                    (B) in subparagraph (O), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(P) recognition of foreign proceedings and other matters 
        under chapter 15 of title 11, United States Code.''.
            (2) Bankruptcy cases and proceedings.--Section 1334(c) of 
        title 28, United States Code, is amended by striking ``Nothing 
        in'' and inserting ``Except with respect to a case under 
        chapter 15 of title 11, nothing in''.
            (3) Duties of trustees.--Section 586(a)(3) of title 28, 
        United States Code, is amended by striking ``or 13'' and 
        inserting ``13, or 15,'' after ``chapter''.
    (d) Other Sections of Title 11.--(1) Section 109(b)(3) of title 11, 
United States Code, is amended to read as follows:
            ``(3)(A) a foreign insurance company, engaged in such 
        business in the United States; or
            ``(B) a foreign bank, savings bank, cooperative bank, 
        savings and loan association, building and loan association, or 
        credit union, which has a branch or agency (as defined in 
        section 3101 of title 12, United States Code) in the United 
        States.''.
    (2) Section 303(k) of title 11, United States Code, is repealed.
    (3)(A) Section 304 of title 11, United States Code, is repealed.
    (B) The table of sections of chapter 3 of title 11, United States 
Code, is amended by striking the item relating to section 304.
    (C) Section 306 of title 11, United States Code, is amended by 
striking ``, 304,'' each place it appears.
            (4) Section 305(a)(2) of title 11, United States Code, is 
        amended to read:
            ``(2)(A) a petition under section 1515 of this title for 
        recognition of a foreign proceeding has been granted; and
            ``(B) the purposes of chapter 15 of this title would be 
        best served by such dismissal or suspension.''.
            (5) Section 508 of title 11, United States Code, is amended 
        by striking subsection (a) and by striking out the letter 
        ``(b)'' at the beginning of the second paragraph.

                 TITLE X--FINANCIAL CONTRACT PROVISIONS

SEC. 1001. TREATMENT OF CERTAIN AGREEMENTS BY CONSERVATORS OR RECEIVERS 
              OF INSURED DEPOSITORY INSTITUTIONS.

    (a) Definition of Qualified Financial Contract.--Section 
11(e)(8)(D)(i) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)(D)(i)) is amended by inserting ``, resolution or order'' 
after ``any similar agreement that the Corporation determines by 
regulation''.
    (b) Definition of Securities Contract.--Section 11(e)(8)(D)(ii) of 
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(ii)) is 
amended to read as follows:
                            ``(ii) Securities contract.--The term 
                        `securities contract'--
                                    ``(I) means a contract for the 
                                purchase, sale, or loan of a security, 
                                a certificate of deposit, a mortgage 
                                loan, or any interest in a mortgage 
                                loan, a group or index of securities, 
                                certificates of deposit, or mortgage 
                                loans or interests therein (including 
                                any interest therein or based on the 
                                value thereof) or any option on any of 
                                the foregoing, including any option to 
                                purchase or sell any such security, 
                                certificate of deposit, loan, interest, 
                                group or index, or option;
                                    ``(II) does not include any 
                                purchase, sale, or repurchase 
                                obligation under a participation in a 
                                commercial mortgage loan unless the 
                                Corporation determines by regulation, 
                                resolution, or order to include any 
                                such agreement within the meaning of 
                                such term;
                                    ``(III) means any option entered 
                                into on a national securities exchange 
                                relating to foreign currencies;
                                    ``(IV) means the guarantee by or to 
                                any securities clearing agency of any 
                                settlement of cash, securities, 
                                certificates of deposit, mortgage loans 
                                or interests therein, group or index of 
                                securities, certificates of deposit, or 
                                mortgage loans or interests therein 
                                (including any interest therein or 
                                based on the value thereof) or option 
                                on any of the foregoing, including any 
                                option to purchase or sell any such 
                                security, certificate of deposit, loan, 
                                interest, group or index or option;
                                    ``(V) means any margin loan;
                                    ``(VI) means any other agreement or 
                                transaction that is similar to any 
                                agreement or transaction referred to in 
                                this clause;
                                    ``(VII) means any combination of 
                                the agreements or transactions referred 
                                to in this clause;
                                    ``(VIII) means any option to enter 
                                into any agreement or transaction 
                                referred to in this clause;
                                    ``(IX) means a master agreement 
                                that provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (III), (IV), (V), (VI), (VII), or 
                                (VIII), together with all supplements 
                                to any such master agreement, without 
                                regard to whether the master agreement 
                                provides for an agreement or 
                                transaction that is not a securities 
                                contract under this clause, except that 
                                the master agreement shall be 
                                considered to be a securities contract 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (III), (IV), (V), (VI), 
                                (VII), or (VIII); and
                                    ``(X) means any security agreement 
                                or arrangement or other credit 
                                enhancement related to any agreement or 
                                transaction referred to in this 
                                clause.''.
    (c) Definition of Commodity Contract.--Section 11(e)(8)(D)(iii) of 
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(iii)) is 
amended to read as follows:
                            ``(iii) Commodity contract.--The term 
                        `commodity contract' means--
                                    ``(I) with respect to a futures 
                                commission merchant, a contract for the 
                                purchase or sale of a commodity for 
                                future delivery on, or subject to the 
                                rules of, a contract market or board of 
                                trade;
                                    ``(II) with respect to a foreign 
                                futures commission merchant, a foreign 
                                future;
                                    ``(III) with respect to a leverage 
                                transaction merchant, a leverage 
                                transaction;
                                    ``(IV) with respect to a clearing 
                                organization, a contract for the 
                                purchase or sale of a commodity for 
                                future delivery on, or subject to the 
                                rules of, a contract market or board of 
                                trade that is cleared by such clearing 
                                organization, or commodity option 
                                traded on, or subject to the rules of, 
                                a contract market or board of trade 
                                that is cleared by such clearing 
                                organization;
                                    ``(V) with respect to a commodity 
                                options dealer, a commodity option;
                                    ``(VI) any other agreement or 
                                transaction that is similar to any 
                                agreement or transaction referred to in 
                                this clause;
                                    ``(VII) any combination of the 
                                agreements or transactions referred to 
                                in this clause;
                                    ``(VIII) any option to enter into 
                                any agreement or transaction referred 
                                to in this clause;
                                    ``(IX) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (II), (III), (IV), (V), (VI), 
                                (VII), or (VIII), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                commodity contract under this clause, 
                                except that the master agreement shall 
                                be considered to be a commodity 
                                contract under this clause only with 
                                respect to each agreement or 
                                transaction under the master agreement 
                                that is referred to in subclause (I), 
                                (II), (III), (IV), (V), (VI), (VII), or 
                                (VIII); or
                                    ``(X) a security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreement or transaction 
                                referred to in this clause.''.
    (d) Definition of Forward Contract.--Section 11(e)(8)(D)(iv) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(iv)) is amended 
to read as follows:
                            ``(iv) Forward contract.--The term `forward 
                        contract' means--
                                    ``(I) a contract (other than a 
                                commodity contract) for the purchase, 
                                sale, or transfer of a commodity or any 
                                similar good, article, service, right, 
                                or interest which is presently or in 
                                the future becomes the subject of 
                                dealing in the forward contract trade, 
                                or product or byproduct thereof, with a 
                                maturity date more than 2 days after 
                                the date the contract is entered into, 
                                including, but not limited to, a 
                                repurchase agreement, reverse 
                                repurchase agreement, consignment, 
                                lease, swap, hedge transaction, 
                                deposit, loan, option, allocated 
                                transaction, unallocated transaction, 
                                or any other similar agreement;
                                    ``(II) any combination of 
                                agreements or transactions referred to 
                                in subclauses (I) and (III);
                                    ``(III) any option to enter into 
                                any agreement or transaction referred 
                                to in subclause (I) or (II);
                                    ``(IV) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclauses 
                                (I), (II), or (III), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                forward contract under this clause, 
                                except that the master agreement shall 
                                be considered to be a forward contract 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (II), or (III); or
                                    ``(V) a security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreement or transaction 
                                referred to in subclause (I), (II), 
                                (III), or (IV).''.
    (e) Definition of Repurchase Agreement.--Section 11(e)(8)(D)(v) of 
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(v)) is 
amended to read as follows:
                            ``(v) Repurchase agreement.--The term 
                        `repurchase agreement' (which definition also 
                        applies to a reverse repurchase agreement)--
                                    ``(I) mean an agreement, including 
                                related terms, which provides for the 
                                transfer of one or more certificates of 
                                deposit, mortgage-related securities 
                                (as such term is defined in the 
                                Securities Exchange Act of 1934), 
                                mortgage loans, interests in mortgage-
                                related securities or mortgage loans, 
                                eligible bankers' acceptances, 
                                qualified foreign government securities 
                                or securities that are direct 
                                obligations of, or that are fully 
                                guaranteed by, the United States or any 
                                agency of the United States against the 
                                transfer of funds by the transferee of 
                                such certificates of deposit, eligible 
                                bankers' acceptances, securities, 
                                loans, or interests with a simultaneous 
                                agreement by such transferee to 
                                transfer to the transferor thereof 
                                certificates of deposit, eligible 
                                bankers' acceptances, securities, 
                                loans, or interests as described above, 
                                at a date certain not later than 1 year 
                                after such transfers or on demand, 
                                against the transfer of funds, or any 
                                other similar agreement;
                                    ``(II) does not include any 
                                repurchase obligation under a 
                                participation in a commercial mortgage 
                                loan unless the Corporation determines 
                                by regulation, resolution, or order to 
                                include any such participation within 
                                the meaning of such term;
                                    ``(III) means any combination of 
                                agreements or transactions referred to 
                                in subclauses (I) and (IV);
                                    ``(IV) means any option to enter 
                                into any agreement or transaction 
                                referred to in subclause (I) or (III);
                                    ``(V) means a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (III), or (IV), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                repurchase agreement under this clause, 
                                except that the master agreement shall 
                                be considered to be a repurchase 
                                agreement under this subclause only 
                                with respect to each agreement or 
                                transaction under the master agreement 
                                that is referred to in subclause (I), 
                                (III), or (IV); and
                                    ``(VI) means a security agreement 
                                or arrangement or other credit 
                                enhancement related to any agreement or 
                                transaction referred to in subclause 
                                (I), (III), (IV), or (V).
                        For purposes of this clause, the term 
                        `qualified foreign government security' means a 
                        security that is a direct obligation of, or 
                        that is fully guaranteed by, the central 
                        government of a member of the Organization for 
                        Economic Cooperation and Development (as 
                        determined by regulation or order adopted by 
                        the appropriate Federal banking authority).''.
    (f) Definition of Swap Agreement.--Section 11(e)(8)(D)(iv) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(vi)) is amended 
to read as follows:
                            ``(vi) Swap agreement.--The term `swap 
                        agreement' means--
                                    ``(I) any agreement, including the 
                                terms and conditions incorporated by 
                                reference in any such agreement, which 
                                is an interest rate swap, option, 
                                future, or forward agreement, including 
                                a rate floor, rate cap, rate collar, 
                                cross-currency rate swap, and basis 
                                swap; a spot, same day-tomorrow, 
                                tomorrow-next, forward, or other 
                                foreign exchange or precious metals 
                                agreement; a currency swap, option, 
                                future, or forward agreement; an equity 
                                index or equity swap, option, future, 
                                or forward agreement; a debt index or 
                                debt swap, option, future, or forward 
                                agreement; a credit spread or credit 
                                swap, option, future, or forward 
                                agreement; a commodity index or 
                                commodity swap, option, future, or 
                                forward agreement;
                                    ``(II) any agreement or transaction 
                                similar to any other agreement or 
                                transaction referred to in this clause 
                                that is presently, or in the future 
                                becomes, regularly entered into in the 
                                swap market (including terms and 
                                conditions incorporated by reference in 
                                such agreement) and that is a forward, 
                                swap, future, or option on one or more 
                                rates, currencies, commodities, equity 
                                securities or other equity instruments, 
                                debt securities or other debt 
                                instruments, or economic indices or 
                                measures of economic risk or value;
                                    ``(III) any combination of 
                                agreements or transactions referred to 
                                in this clause;
                                    ``(IV) any option to enter into any 
                                agreement or transaction referred to in 
                                this clause;
                                    ``(V) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (II), (III), or (IV), together 
                                with all supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement contains an 
                                agreement or transaction that is not a 
                                swap agreement under this clause, 
                                except that the master agreement shall 
                                be considered to be a swap agreement 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (II), (III), or (IV); 
                                and
                                    ``(VI) any security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreements or 
                                transactions referred to in 
                                subparagraph (I), (II), (III), or (IV).
                        Such term is applicable for purposes of this 
                        title only and shall not be construed or 
                        applied so as to challenge or affect the 
                        characterization, definition, or treatment of 
                        any swap agreement under any other statute, 
                        regulation, or rule, including the Securities 
                        Act of 1933, the Securities Exchange Act of 
                        1934, the Public Utility Holding Company Act of 
                        1935, the Trust Indenture Act of 1939, the 
                        Investment Company Act of 1940, the Investment 
                        Advisers Act of 1940, the Securities Investor 
                        Protection Act of 1970, the Commodity Exchange 
                        Act, and the regulations promulgated by the 
                        Securities and Exchange Commission or the 
                        Commodity Futures Trading Commission.''.
    (g) Definition of Transfer.--Section 11(e)(8)(D)(viii) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(viii)) is 
amended to read as follows:
                            ``(viii) Transfer.--The term `transfer' 
                        means every mode, direct or indirect, absolute 
                        or conditional, voluntary or involuntary, of 
                        disposing of or parting with property or with 
                        an interest in property, including retention of 
                        title as a security interest and foreclosure of 
                        the depository institutions's equity of 
                        redemption.''.
    (h) Treatment of Qualified Financial Contracts.--Section 11(e)(8) 
of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)) is 
amended--
            (1) in subparagraph (A), by striking ``paragraph (10)'' and 
        inserting ``paragraphs (9) and (10)'';
            (2) in subparagraph (A)(i), by striking ``to cause the 
        termination or liquidation'' and inserting ``such person has to 
        cause the termination, liquidation, or acceleration'';
            (3) by amending subparagraph (A)(ii) to read as follows:
                            ``(ii) any right under any security 
                        agreement or arrangement or other credit 
                        enhancement related to one or more qualified 
                        financial contracts described in clause (i);''; 
                        and
            (4) by amending subparagraph (E)(ii) to read as follows:
                            ``(ii) any right under any security 
                        agreement or arrangement or other credit 
                        enhancement related to one or more qualified 
                        financial contracts described in clause (i);''.
    (i) Avoidance of Transfers.--Section 11(e)(8)(C)(i) of the Federal 
Deposit Insurance Act (12 U.S.C. 1821(e)(8)(C)(i)) is amended by 
inserting ``section 5242 of the Revised Statutes of the United States 
(12 U.S.C. 91) or any other Federal or State law relating to the 
avoidance of preferential or fraudulent transfers,'' before ``the 
Corporation''.

SEC. 1002. AUTHORITY OF THE CORPORATION WITH RESPECT TO FAILED AND 
              FAILING INSTITUTIONS.

    (a) In General.--Section 11(e)(8) of the Federal Deposit Insurance 
Act (12 U.S.C. 1821(e)(8)) is amended--
            (1) in subparagraph (E), by striking ``other than paragraph 
        (12) of this subsection, subsection (d)(9)'' and inserting 
        ``other than subsections (d)(9) and (e)(10)''; and
            (2) by adding at the end the following new subparagraphs:
                    ``(F) Clarification.--No provision of law shall be 
                construed as limiting the right or power of the 
                Corporation, or authorizing any court or agency to 
                limit or delay, in any manner, the right or power of 
                the Corporation to transfer any qualified financial 
                contract in accordance with paragraphs (9) and (10) of 
                this subsection or to disaffirm or repudiate any such 
                contract in accordance with subsection (e)(1) of this 
                section.
                    ``(G) Walkaway clauses not effective.--
                            ``(i) In general.--Notwithstanding the 
                        provisions of subparagraphs (A) and (E), and 
                        sections 403 and 404 of the Federal Deposit 
                        Insurance Corporation Improvement Act of 1991, 
                        no walkaway clause shall be enforceable in a 
                        qualified financial contract of an insured 
                        depository institution in default.
                            ``(ii) Walkaway clause defined.--For 
                        purposes of this subparagraph, the term 
                        `walkaway clause' means a provision in a 
                        qualified financial contract that, after 
                        calculation of a value of a party's position or 
                        an amount due to or from 1 of the parties in 
                        accordance with its terms upon termination, 
                        liquidation, or acceleration of the qualified 
                        financial contract, either does not create a 
                        payment obligation of a party or extinguishes a 
                        payment obligation of a party in whole or in 
                        part solely because of such party's status as a 
                        nondefaulting party.''.
    (b) Technical and Conforming Amendment.--Section 11(e)(12)(A) of 
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(12)(A)) is amended 
by inserting ``or the exercise of rights or powers'' after ``the 
appointment''.

SEC. 1003. AMENDMENTS RELATING TO TRANSFERS OF QUALIFIED FINANCIAL 
              CONTRACTS.

    (a) Transfers of Qualified Financial Contracts to Financial 
Institutions.--Section 11(e)(9) of the Federal Deposit Insurance Act 
(12 U.S.C. 1821(e)(9)) is amended to read as follows:
            ``(9) Transfer of qualified financial contracts.--
                    ``(A) In general.--In making any transfer of assets 
                or liabilities of a depository institution in default 
                which includes any qualified financial contract, the 
                conservator or receiver for such depository institution 
                shall either--
                            ``(i) transfer to one financial 
                        institution, other than a financial institution 
                        for which a conservator, receiver, trustee in 
                        bankruptcy, or other legal custodian has been 
                        appointed or which is otherwise the subject of 
                        a bankruptcy or insolvency proceeding--
                                    ``(I) all qualified financial 
                                contracts between any person or any 
                                affiliate of such person and the 
                                depository institution in default;
                                    ``(II) all claims of such person or 
                                any affiliate of such person against 
                                such depository institution under any 
                                such contract (other than any claim 
                                which, under the terms of any such 
                                contract, is subordinated to the claims 
                                of general unsecured creditors of such 
                                institution);
                                    ``(III) all claims of such 
                                depository institution against such 
                                person or any affiliate of such person 
                                under any such contract; and
                                    ``(IV) all property securing or any 
                                other credit enhancement for any 
                                contract described in subclause (I) or 
                                any claim described in subclause (II) 
                                or (III) under any such contract; or
                            ``(ii) transfer none of the qualified 
                        financial contracts, claims, property or other 
                        credit enhancement referred to in clause (i) 
                        (with respect to such person and any affiliate 
                        of such person).
                    ``(B) Transfer to foreign bank, foreign financial 
                institution, or branch or agency of a foreign bank or 
                financial institution.--In transferring any qualified 
                financial contracts and related claims and property 
                pursuant to subparagraph (A)(i), the conservator or 
                receiver for such depository institution shall not make 
                such transfer to a foreign bank, financial institution 
                organized under the laws of a foreign country, or a 
                branch or agency of a foreign bank or financial 
                institution unless, under the law applicable to such 
                bank, financial institution, branch or agency, to the 
                qualified financial contracts, and to any netting 
                contract, any security agreement or arrangement or 
                other credit enhancement related to one or more 
                qualified financial contracts, the contractual rights 
                of the parties to such qualified financial contracts, 
                netting contracts, security agreements or arrangements, 
                or other credit enhancements are enforceable 
                substantially to the same extent as permitted under 
                this section.
                    ``(C) Transfer of contracts subject to the rules of 
                a clearing organization.--In the event that a 
                conservator or receiver transfers any qualified 
                financial contract and related claims, property and 
                credit enhancements pursuant to subparagraph (A)(i) and 
                such contract is subject to the rules of a clearing 
                organization, the clearing organization shall not be 
                required to accept the transferee as a member by virtue 
                of the transfer.
                    ``(D) Definition.--For purposes of this section, 
                the term `financial institution' means a broker or 
                dealer, a depository institution, a futures commission 
                merchant, or any other institution as determined by the 
                Corporation by regulation to be a financial 
                institution.''.
    (b) Notice to Qualified Financial Contract Counterparties.--Section 
11(e)(10)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(10)(A)) is amended by amending the flush material following 
clause (ii) to read as follows: ``the conservator or receiver shall 
notify any person who is a party to any such contract of such transfer 
by 5:00 p.m. (eastern time) on the business day following the date of 
the appointment of the receiver, in the case of a receivership, or the 
business day following such transfer, in the case of a 
conservatorship.''.
    (c) Rights Against Receiver and Treatment of Bridge Banks.--Section 
11(e)(10) of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(10)) 
is further amended--
            (1) by redesignating subparagraph (B) as subparagraph (D); 
        and
            (2) by inserting after subparagraph (A) the following new 
        subparagraphs:
                    ``(B) Certain rights not enforceable.--
                            ``(i) Receivership.--A person who is a 
                        party to a qualified financial contract with an 
                        insured depository institution may not exercise 
                        any right such person has to terminate, 
                        liquidate, or net such contract under paragraph 
                        (8)(A) or section 403 or 404 of the Federal 
                        Deposit Insurance Corporation Improvement Act 
                        of 1991 solely by reason of or incidental to 
                        the appointment of a receiver for the 
                        depository institution (or the insolvency or 
                        financial condition of the depository 
                        institution for which the receiver has been 
                        appointed)--
                                    ``(I) until 5:00 p.m. (eastern 
                                time) on the business day following the 
                                date of the appointment of the 
                                receiver; or
                                    ``(II) after the person has 
                                received notice that the contract has 
                                been transferred pursuant to paragraph 
                                (9)(A).
                            ``(ii) Conservatorship.--A person who is a 
                        party to a qualified financial contract with an 
                        insured depository institution may not exercise 
                        any right such person has to terminate, 
                        liquidate, or net such contract under paragraph 
                        (8)(E) or sections 403 or 404 of the Federal 
                        Deposit Insurance Corporation Improvement Act 
                        of 1991, solely by reason of or incidental to 
                        the appointment of a conservator for the 
                        depository institution (or the insolvency or 
                        financial condition of the depository 
                        institution for which the conservator has been 
                        appointed).
                            ``(iii) Notice.--For purposes of this 
                        subsection, the Corporation as receiver or 
                        conservator of an insured depository 
                        institution shall be deemed to have notified a 
                        person who is a party to a qualified financial 
                        contract with such depository institution if 
                        the Corporation has taken steps reasonably 
                        calculated to provide notice to such person by 
                        the time specified in subparagraph (A) of this 
                        subsection.
                    ``(C) Treatment of bridge banks.--The following 
                institutions shall not be considered a financial 
                institution for which a conservator, receiver, trustee 
                in bankruptcy, or other legal custodian has been 
                appointed or which is otherwise the subject of a 
                bankruptcy or insolvency proceeding for purposes of 
                subsection (e)(9)--
                            ``(i) a bridge bank; or
                            ``(ii) a depository institution organized 
                        by the Corporation, for which a conservator is 
                        appointed either--
                                    ``(I) immediately upon the 
                                organization of the institution; or
                                    ``(II) at the time of a purchase 
                                and assumption transaction between such 
                                institution and the Corporation as 
                                receiver for a depository institution 
                                in default.''.

SEC. 1004. AMENDMENTS RELATING TO DISAFFIRMANCE OR REPUDIATION OF 
              QUALIFIED FINANCIAL CONTRACTS.

    Section 11(e) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)) is further amended--
            (1) by redesignating paragraphs (11) through (15) as 
        paragraphs (12) through (16), respectively; and
            (2) by inserting after paragraph (10) the following new 
        paragraph:
            ``(11) Disaffirmance or repudiation of qualified financial 
        contracts.--In exercising the rights of disaffirmance or 
        repudiation of a conservator or receiver with respect to any 
        qualified financial contract to which an insured depository 
        institution is a party, the conservator or receiver for such 
        institution shall either--
                    ``(A) disaffirm or repudiate all qualified 
                financial contracts between--
                            ``(i) any person or any affiliate of such 
                        person; and
                            ``(ii) the depository institution in 
                        default; or
                    ``(B) disaffirm or repudiate none of the qualified 
                financial contracts referred to in subparagraph (A) 
                (with respect to such person or any affiliate of such 
                person).''.

SEC. 1005. CLARIFYING AMENDMENT RELATING TO MASTER AGREEMENTS.

    Section 11(e)(8)(D)(vii) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(e)(8)(D)(vii)) is amended to read as follows:
                            ``(vii) Treatment of master agreement as 
                        one agreement.--Any master agreement for any 
                        contract or agreement described in any 
                        preceding clause of this subparagraph (or any 
                        master agreement for such master agreement or 
                        agreements), together with all supplements to 
                        such master agreement, shall be treated as a 
                        single agreement and a single qualified 
                        financial contract. If a master agreement 
                        contains provisions relating to agreements or 
                        transactions that are not themselves qualified 
                        financial contracts, the master agreement shall 
                        be deemed to be a qualified financial contract 
                        only with respect to those transactions that 
                        are themselves qualified financial 
                        contracts.''.

SEC. 1006. FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF 
              1991.

    (a) Definitions.--Section 402 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 (12 U.S.C. 4402) is amended--
            (1) in paragraph (6)--
                    (A) by redesignating subparagraphs (B) through (D) 
                as subparagraphs (C) through (E), respectively;
                    (B) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) an uninsured national bank or an uninsured 
                State bank that is a member of the Federal Reserve 
                System if the national bank or State member bank is not 
                eligible to make application to become an insured bank 
                under section 5 of the Federal Deposit Insurance 
                Act;''; and
                    (C) by amending subparagraph (C) (as redesignated) 
                to read as follows:
                    ``(C) a branch or agency of a foreign bank, a 
                foreign bank and any branch or agency of the foreign 
                bank, or the foreign bank that established the branch 
                or agency, as those terms are defined in section 1(b) 
                of the International Banking Act of 1978;'';
            (2) in paragraph (11), by adding before the period ``and 
        any other clearing organization with which such clearing 
        organization has a netting contract'';
            (3) by amending paragraph (14)(A)(i) to read as follows:
                            ``(i) means a contract or agreement between 
                        two or more financial institutions, clearing 
                        organizations, or members that provides for 
                        netting present or future payment obligations 
                        or payment entitlements (including liquidation 
                        or closeout values relating to such obligations 
                        or entitlements) among the parties to the 
                        agreement; and''; and
            (4) by adding at the end the following new paragraph:
            ``(15) Payment.--The term `payment' means a payment of 
        United States dollars, another currency, or a composite 
        currency, and a noncash delivery, including a payment or 
        delivery to liquidate an unmatured obligation.''.
    (b) Enforceability of Bilateral Netting Contracts.--Section 403 of 
the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 
U.S.C. 4403) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) General Rule.--Notwithstanding any other provision of State 
or Federal law (other than paragraphs (8)(E), (8)(F), and (10)(B) of 
section 11(e) of the Federal Deposit Insurance Act or any order 
authorized under section 5(b)(2) of the Securities Investor Protection 
Act of 1970, the covered contractual payment obligations and the 
covered contractual payment entitlements between any two financial 
institutions shall be netted in accordance with, and subject to the 
conditions of, the terms of any applicable netting contract (except as 
provided in section 561(b)(2) of title 11, United States Code).''; and
            (2) by adding at the end the following new subsection:
    ``(f) Enforceability of Security Agreements.--The provisions of any 
security agreement or arrangement or other credit enhancement related 
to one or more netting contracts between any two financial institutions 
shall be enforceable in accordance with their terms (except as provided 
in section 561(b)(2) of title 11, United States Code) and shall not be 
stayed, avoided, or otherwise limited by any State or Federal law 
(other than paragraphs (8)(E), (8)(F), and (10)(B) of section 11(e) of 
the Federal Deposit Insurance Act and section 5(b)(2) of the Securities 
Investor Protection Act of 1970).''.
    (c) Enforceability of Clearing Organization Netting Contracts.--
Section 404 of the Federal Deposit Insurance Corporation Improvement 
Act of 1991 (12 U.S.C. 4404) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) General Rule.--Notwithstanding any other provision of State 
or Federal law (other than paragraphs (8)(E), (8)(F), and (10)(B) of 
section 11(e) of the Federal Deposit Insurance Act and any order 
authorized under section 5(b)(2) of the Securities Investor Protection 
Act of 1970, the covered contractual payment obligations and the 
covered contractual payment entitlements of a member of a clearing 
organization to and from all other members of a clearing organization 
shall be netted in accordance with and subject to the conditions of any 
applicable netting contract (except as provided in section 561(b)(2) of 
title 11, United States Code).''; and
            (2) by adding at the end the following new subsection:
    ``(h) Enforceability of Security Agreements.--The provisions of any 
security agreement or arrangement or other credit enhancement related 
to one or more netting contracts between any two members of a clearing 
organization shall be enforceable in accordance with their terms 
(except as provided in section 561(b)(2) of title 11, United States 
Code) and shall not be stayed, avoided, or otherwise limited by any 
State or Federal law other than paragraphs (8)(E), (8)(F), and (10)(B) 
of section 11(e) of the Federal Deposit Insurance Act and section 
5(b)(2) of the Securities Investor Protection Act of 1970.''.
    (d) Enforceability of Contracts With Uninsured National Banks and 
Uninsured Federal Branches and Agencies.--The Federal Deposit Insurance 
Corporation Improvement Act of 1991 (12 U.S.C. 4401 et seq.) is 
amended--
            (1) by redesignating section 407 as section 408; and
            (2) by adding after section 406 the following new section:

``SEC. 407. TREATMENT OF CONTRACTS WITH UNINSURED NATIONAL BANKS AND 
              UNINSURED FEDERAL BRANCHES AND AGENCIES.

    ``(a) In General.--Notwithstanding any other provision of law, 
paragraphs (8), (9), (10), and (11) of section 11(e) of the Federal 
Deposit Insurance Act shall apply to an uninsured national bank or 
uninsured Federal branch or Federal agency except--
            ``(1) any reference to the `Corporation as receiver' or 
        `the receiver or the Corporation' shall refer to the receiver 
        of an uninsured national bank or uninsured Federal branch or 
        Federal agency appointed by the Comptroller of the Currency;
            ``(2) any reference to the `Corporation' (other than in 
        section 11(e)(8)(D) of such Act), the `Corporation, whether 
        acting as such or as conservator or receiver', a `receiver', or 
        a `conservator' shall refer to the receiver or conservator of 
        an uninsured national bank or uninsured Federal branch or 
        Federal agency appointed by the Comptroller of the Currency; 
        and
            ``(3) any reference to an `insured depository institution' 
        or `depository institution' shall refer to an uninsured 
        national bank or an uninsured Federal branch or Federal agency.
    ``(b) Liability.--The liability of a receiver or conservator of an 
uninsured national bank or uninsured Federal branch or agency shall be 
determined in the same manner and subject to the same limitations that 
apply to receivers and conservators of insured depository institutions 
under section 11(e) of the Federal Deposit Insurance Act.
    ``(c) Regulatory Authority.--
            ``(1) In general.--The Comptroller of the Currency, in 
        consultation with the Federal Deposit Insurance Corporation, 
        may promulgate regulations to implement this section.
            ``(2) Specific requirement.--In promulgating regulations to 
        implement this section, the Comptroller of the Currency shall 
        ensure that the regulations generally are consistent with the 
        regulations and policies of the Federal Deposit Insurance 
        Corporation adopted pursuant to the Federal Deposit Insurance 
        Act.
    ``(d) Definitions.--For purposes of this section, the terms 
`Federal branch', `Federal agency', and `foreign bank' have the same 
meaning as in section 1(b) of the International Banking Act.''.

SEC. 1007. BANKRUPTCY CODE AMENDMENTS.

    (a) Definitions of Forward Contract, Repurchase Agreement, 
Securities Clearing Agency, Swap Agreement, Commodity Contract, and 
Securities Contract.--Title 11, United States Code, is amended--
            (1) in section 101--
                    (A) in paragraph (25)--
                            (i) by striking ``means a contract'' and 
                        inserting ``means--
                    ``(A) a contract'';
                            (ii) by striking ``, or any combination 
                        thereof or option thereon;'' and inserting ``, 
                        or any other similar agreement;''; and
                            (iii) by adding at the end the following:
                    ``(B) any combination of agreements or transactions 
                referred to in subparagraphs (A) and (C);
                    ``(C) any option to enter into an agreement or 
                transaction referred to in subparagraph (A) or (B);
                    ``(D) a master agreement that provides for an 
                agreement or transaction referred to in subparagraph 
                (A), (B), or (C), together with all supplements to any 
                such master agreement, without regard to whether such 
                master agreement provides for an agreement or 
                transaction that is not a forward contract under this 
                paragraph, except that such master agreement shall be 
                considered to be a forward contract under this 
                paragraph only with respect to each agreement or 
                transaction under such master agreement that is 
                referred to in subparagraph (A), (B) or (C); or
                    ``(E) a security agreement or arrangement, or other 
                credit enhancement related to any agreement or 
                transaction referred to in subparagraph (A), (B), (C), 
                or (D), but not to exceed the actual value of such 
                contract, option, agreement, or transaction on the date 
                of the filing of the petition;'';
                    (B) in paragraph (46), by striking ``on any day 
                during the period beginning 90 days before the date 
                of'' and replacing it with ``at any time before'';
                    (C) by amending paragraph (47) to read as follows:
            ``(47) `repurchase agreement' (which definition also 
        applies to a reverse repurchase agreement) means--
                            ``(i) an agreement, including related 
                        terms, which provides for the transfer of one 
                        or more certificates of deposit, mortgage-
                        related securities (as defined in the 
                        Securities Exchange Act of 1934), mortgage 
                        loans, interests in mortgage-related securities 
                        or mortgage loans, eligible bankers' 
                        acceptances, qualified foreign government 
                        securities; or securities that are direct 
                        obligations of, or that are fully guaranteed 
                        by, the United States or any agency of the 
                        United States against the transfer of funds by 
                        the transferee of such certificates of deposit, 
                        eligible bankers' acceptances, securities, 
                        loans, or interests; with a simultaneous 
                        agreement by such transferee to transfer to the 
                        transferor thereof certificates of deposit, 
                        eligible bankers' acceptance, securities, 
                        loans, or interests of the kind described 
                        above, at a date certain not later than 1 year 
                        after such transfer or on demand, against the 
                        transfer of funds;
                            ``(ii) any combination of agreements or 
                        transactions referred to in clauses (i) and 
                        (iii);
                            ``(iii) an option to enter into an 
                        agreement or transaction referred to in clause 
                        (i) or (ii);
                            ``(iv) a master agreement that provides for 
                        an agreement or transaction referred to in 
                        clause (i), (ii), or (iii), together with all 
                        supplements to any such master agreement, 
                        without regard to whether such master agreement 
                        provides for an agreement or transaction that 
                        is not a repurchase agreement under this 
                        paragraph, except that such master agreement 
                        shall be considered to be a repurchase 
                        agreement under this paragraph only with 
                        respect to each agreement or transaction under 
                        the master agreement that is referred to in 
                        clause (i), (ii), or (iii); or
                            ``(v) a security agreement or arrangement 
                        or other credit enhancement related to any 
                        agreement or transaction referred to in clause 
                        (i), (ii), (iii), or (iv), but not to exceed 
                        the actual value of such contract on the date 
                        of the filing of the petition; and
                    ``(B) does not include a repurchase obligation 
                under a participation in a commercial mortgage loan,
        and, for purposes of this paragraph, the term `qualified 
        foreign government security' means a security that is a direct 
        obligation of, or that is fully guaranteed by, the central 
        government of a member of the Organization for Economic 
        Cooperation and Development;'';
                    (D) in paragraph (48) by inserting ``or exempt from 
                such registration under such section pursuant to an 
                order of the Securities and Exchange Commission'' after 
                ``1934''; and
                    (E) by amending paragraph (53B) to read as follows:
            ``(53B) `swap agreement'--
                    ``(A) means--
                            ``(i) any agreement, including the terms 
                        and conditions incorporated by reference in 
                        such agreement, which is an interest rate swap, 
                        option, future, or forward agreement, including 
                        a rate floor, rate cap, rate collar, cross-
                        currency rate swap, and basis swap; a spot, 
                        same day-tomorrow, tomorrow-next, forward, or 
                        other foreign exchange or precious metals 
                        agreement; a currency swap, option, future, or 
                        forward agreement; an equity index or an equity 
                        swap, option, future, or forward agreement; a 
                        debt index or a debt swap, option, future, or 
                        forward agreement; a credit spread or a credit 
                        swap, option, future, or forward agreement; or 
                        a commodity index or a commodity swap, option, 
                        future, or forward agreement;
                            ``(ii) any agreement or transaction similar 
                        to any other agreement or transaction referred 
                        to in this paragraph that--
                                    ``(I) is presently, or in the 
                                future becomes, regularly entered into 
                                in the swap market (including terms and 
                                conditions incorporated by reference 
                                therein); and
                                    ``(II) is a forward, swap, future, 
                                or option on one or more rates, 
                                currencies commodities, equity 
                                securities, or other equity 
                                instruments, debt securities or other 
                                debt instruments, or on an economic 
                                index or measure of economic risk or 
                                value;
                            ``(iii) any combination of agreements or 
                        transactions referred to in this paragraph;
                            ``(iv) any option to enter into an 
                        agreement or transaction referred to in this 
                        paragraph;
                            ``(v) a master agreement that provides for 
                        an agreement or transaction referred to in 
                        clause (i), (ii), (iii), or (iv), together with 
                        all supplements to any such master agreement, 
                        and without regard to whether the master 
                        agreement contains an agreement or transaction 
                        that is not a swap agreement under this 
                        paragraph, except that the master agreement 
                        shall be considered to be a swap agreement 
                        under this paragraph only with respect to each 
                        agreement or transaction under the master 
                        agreement that is referred to in clause (i), 
                        (ii), (iii), or (iv); or
                    ``(B) any security agreement or arrangement or 
                other credit enhancement related to any agreements or 
                transactions referred to in subparagraph (A); and
                    ``(C) is applicable for purposes of this title only 
                and shall not be construed or applied so as to 
                challenge or affect the characterization, definition, 
                or treatment of any swap agreement under any other 
                statute, regulation, or rule, including the Securities 
                Act of 1933, the Securities Exchange Act of 1934, the 
                Public Utility Holding Company Act of 1935, the Trust 
                Indenture Act of 1939, the Investment Company Act of 
                1940, the Investment Advisers Act of 1940, the 
                Securities Investor Protection Act of 1970, the 
                Commodity Exchange Act, and the regulations prescribed 
                by the Securities and Exchange Commission or the 
                Commodity Futures Trading Commission.'';
            (2) by amending section 741(7) to read as follows:
            ``(7) `securities contract'--
                    ``(A) means--
                            ``(i) a contract for the purchase, sale, or 
                        loan of a security, a certificate of deposit, a 
                        mortgage loan or any interest in a mortgage 
                        loan, a group or index of securities, 
                        certificates of deposit or mortgage loans or 
                        interests therein (including an interest 
                        therein or based on the value thereof), or 
                        option on any of the foregoing, including an 
                        option to purchase or sell any such security 
                        certificate of deposit, loan, interest, group 
                        or index or option;
                            ``(ii) any option entered into on a 
                        national securities exchange relating to 
                        foreign currencies;
                            ``(iii) the guarantee by or to any 
                        securities clearing agency of a settlement of 
                        cash, securities, certificates of deposit 
                        mortgage loans or interests therein, group or 
                        index of securities, or mortgage loans or 
                        interests therein (including any interest 
                        therein or based on the value thereof), or 
                        option on any of the foregoing, including an 
                        option to purchase or sell any such security 
                        certificate of deposit, loan, interest, group 
                        or index or option;
                            ``(iv) any margin loan;
                            ``(v) any other agreement or transaction 
                        that is similar to an agreement or transaction 
                        referred to in this paragraph;
                            ``(vi) any combination of the agreements or 
                        transactions referred to in this paragraph;
                            ``(vii) any option to enter into any 
                        agreement or transaction referred to in this 
                        paragraph;
                            ``(viii) a master agreement that provides 
                        for an agreement or transaction referred to in 
                        clause (i), (ii), (iii), (iv), (v), (vi), or 
                        (vii), together with all supplements to any 
                        such master agreement, without regard to 
                        whether the master agreement provides for an 
                        agreement or transaction that is not a 
                        securities contract under this paragraph, 
                        except that such master agreement shall be 
                        considered to be a securities contract under 
                        this paragraph only with respect to each 
                        agreement or transaction under such master 
                        agreement that is referred to in clause (i), 
                        (ii), (iii), (iv), (v), (vi), or (vii); or
                            ``(ix) any security agreement or 
                        arrangement, or other credit enhancement, 
                        related to any agreement or transaction 
                        referred to in this paragraph, but not to 
                        exceed the actual value of such contract on the 
                        date of the filing of the petition; and
                    ``(B) does not include any purchase, sale, or 
                repurchase obligation under a participation in a 
                commercial mortgage loan.''; and
            (3) in section 761(4)--
                    (A) by striking ``or'' at the end of subparagraph 
                (D); and
                    (B) by adding at the end the following:
                    ``(F) any other agreement or transaction that is 
                similar to an agreement or transaction referred to in 
                this paragraph;
                    ``(G) any combination of the agreements or 
                transactions referred to in this paragraph;
                    ``(H) any option to enter into an agreement or 
                transaction referred to in this paragraph;
                    ``(I) a master agreement that provides for an 
                agreement or transaction referred to in subparagraph 
                (A), (B), (C), (D), (E), (F), (G), or (H), together 
                with all supplements to such master netting agreement, 
                without regard to whether the master netting agreement 
                provides for an agreement or transaction that is not a 
                commodity contract under this paragraph, except that 
                the master agreement shall be considered to be a 
                commodity contract under this paragraph only with 
                respect to each agreement or transaction under the 
                master agreement that is referred to in subparagraph 
                (A), (B), (C), (D), (E), (F), (G), or (H); or
                    ``(J) a security agreement or arrangement, or other 
                credit enhancement related to any agreement or 
                transaction referred to in this paragraph, but not to 
                exceed the actual value of such contract on the date of 
                the filing of the petition;''.
    (b) Definitions of Financial Institution, Financial Participant, 
and Forward Contract Merchant.--Section 101 of title 11, United States 
Code, is amended--
            (1) by amending paragraph (22) to read as follows:
            ``(22) `financial institution' means--
                    ``(A) a Federal reserve bank, or an entity 
                (domestic or foreign) that is a commercial or savings 
                bank, industrial savings bank, savings and loan 
                association, trust company, or receiver or conservator 
                for such entity and, when any such Federal reserve 
                bank, receiver, conservator or entity is acting as 
                agent or custodian for a customer in connection with a 
                securities contract, as defined in section 741 of this 
                title, such customer; or
                    ``(B) in connection with a securities contract, as 
                defined in section 741 of this title, an investment 
                company registered under the Investment Company Act of 
                1940;'';
            (2) by inserting after paragraph (22) the following:
            ``(22A) `financial participant' means an entity that, at 
        the time it enters into a securities contract, commodity 
        contract or forward contract, or at the time of the filing of 
        the petition, has one or more agreements or transactions 
        described in paragraph (1), (2), (3), (4), or (5) of section 
        561(a) with the debtor or any other entity (other than an 
        affiliate) of a total gross dollar value of at least 
        $1,000,000,000 in notional or actual principal amount 
        outstanding on any day during the previous 15-month period, or 
        has gross mark-to-market positions of at least $100,000,000 
        (aggregated across counterparties) in one or more such 
        agreement or transaction with the debtor or any other entity 
        (other than an affiliate) on any day during the previous 15-
        month period;''; and
            (3) by amending paragraph (26) to read as follows:
            ``(26) `forward contract merchant' means a Federal reserve 
        bank, or an entity whose business consists in whole or in part 
        of entering into forward contracts as or with merchants or in a 
        commodity, as defined or in section 761 of this title, or any 
        similar good, article, service, right, or interest which is 
        presently or in the future becomes the subject of dealing or in 
        the forward contract trade;''.
    (c) Definition of Master Netting Agreement and Master Netting 
Agreement Participant.--Section 101 of title 11, United States Code, is 
amended by inserting after paragraph (38) the following new paragraphs:
            ``(38A) `master netting agreement' means an agreement 
        providing for the exercise of rights, including rights of 
        netting, setoff, liquidation, termination, acceleration, or 
        closeout, under or in connection with one or more contracts 
        that are described in any one or more of paragraphs (1) through 
        (5) of section 561(a), or any security agreement or arrangement 
        or other credit enhancement related to one or more of the 
        foregoing. If a master netting agreement contains provisions 
        relating to agreements or transactions that are not contracts 
        described in paragraphs (1) through (5) of section 561(a), the 
        master netting agreement shall be deemed to be a master netting 
        agreement only with respect to those agreements or transactions 
        that are described in any one or more of the paragraphs (1) 
        through (5) of section 561(a);
            ``(38B) `master netting agreement participant' means an 
        entity that, at any time before the filing of the petition, is 
        a party to an outstanding master netting agreement with the 
        debtor;''.
    (d) Swap Agreements, Securities Contracts, Commodity Contracts, 
Forward Contracts, Repurchase Agreements, and Master Netting Agreements 
Under the Automatic-Stay.--
            (1) In general.--Section 362(b) of title 11, United States 
        Code, as amended by sections 118, 132, 136, 142, 203, and 818, 
        is amended--
                    (A) in paragraph (6), by inserting ``, pledged to, 
                and under the control of,'' after ``held by'';
                    (B) in paragraph (7), by inserting ``, pledged to, 
                and under the control of,'' after ``held by'';
                    (C) by amending paragraph (17) to read as follows:
            ``(17) under subsection (a), of the setoff by a swap 
        participant of a mutual debt and claim under or in connection 
        with one or more swap agreements that constitutes the setoff of 
        a claim against the debtor for any payment or other transfer of 
        property due from the debtor under or in connection with any 
        swap agreement against any payment due to the debtor from the 
        swap participant under or in connection with any swap agreement 
        or against cash, securities, or other property held by, pledged 
        to, and under the control of, or due from such swap participant 
        to margin guarantee, secure, or settle a swap agreement;'';
                    (D) in paragraph (30) by striking ``or'' at the 
                end;
                    (E) in paragraph (31) by striking the period at the 
                end and inserting ``; or''; and
                    (F) by inserting after paragraph (31) the following 
                new paragraph:
            ``(32) under subsection (a), of the setoff by a master 
        netting agreement participant of a mutual debt and claim under 
        or in connection with one or more master netting agreements or 
        any contract or agreement subject to such agreements that 
        constitutes the setoff of a claim against the debtor for any 
        payment or other transfer of property due from the debtor under 
        or in connection with such agreements or any contract or 
        agreement subject to such agreements against any payment due to 
        the debtor from such master netting agreement participant under 
        or in connection with such agreements or any contract or 
        agreement subject to such agreements or against cash, 
        securities, or other property held by, pledged or and under the 
        control of, or due from such master netting agreement 
        participant to margin, guarantee, secure, or settle such 
        agreements or any contract or agreement subject to such 
        agreements, to the extent such participant is eligible to 
        exercise such offset rights under paragraph (6), (7), or (17) 
        for each individual contract covered by the master netting 
        agreement in issue.''.
            (2) Limitation.--Section 362 of title 11, United States 
        Code, as amended by sections 120, 302, and 412, is amended by 
        adding at the end the following:
    ``(l) Limitation.--The exercise of rights not subject to the stay 
arising under subsection (a) pursuant to paragraph (6), (7), or (17), 
or (31) of subsection (b) shall not be stayed by any order of a court 
or administrative agency in any proceeding under this title.''.
    (e) Limitation of Avoidance Powers Under Master Netting 
Agreement.--Section 546 of title 11, United States Code, as amended by 
sections 207 and 302, is amended--
            (1) in subsection (g) (as added by section 103 of Public 
        Law 101-311)--
                    (A) by striking ``under a swap agreement''; and
                    (B) by striking ``in connection with a swap 
                agreement'' and inserting ``under or in connection with 
                any swap agreement''; and
            (2) by adding at the end the following:
    ``(j) Notwithstanding sections 544, 545, 547, 548(a)(2)(B), and 
548(b) of this title, the trustee may not avoid a transfer made by or 
to a master netting agreement participant under or in connection with 
any master netting agreement or any individual contract covered thereby 
that is made before the commencement of the case, except under section 
548(a)(1)(A) of this title, and except to the extent the trustee could 
otherwise avoid such a transfer made under an individual contract 
covered by such master netting agreement.''.
    (f) Fraudulent Transfers of Master Netting Agreements.--Section 
548(d)(2) of title 11, United States Code, is amended--
            (1) in subparagraph (C), by striking ``and'';
            (2) in subparagraph (D), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
            ``(E) a master netting agreement participant that receives 
        a transfer in connection with a master netting agreement or any 
        individual contract covered thereby takes for value to the 
        extent of such transfer, except, with respect to a transfer 
        under any individual contract covered thereby, to the extent 
        such master netting agreement participant otherwise did not 
        take (or is otherwise not deemed to have taken) such transfer 
        for value.''.
    (g) Termination or Acceleration of Securities Contracts.--Section 
555 of title 11, United States Code, is amended--
            (1) by amending the section heading to read as follows:
``Sec. 555. Contractual right to liquidate, terminate, or accelerate a 
              securities contract'';
        and
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''.
    (h) Termination or Acceleration of Commodities or Forward 
Contracts.--Section 556 of title 11, United States Code, is amended--
            (1) by amending the section heading to read as follows:
``Sec. 556. Contractual right to liquidate, terminate, or accelerate a 
              commodities contract or forward contract'';
        and
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''.
    (i) Termination or Acceleration of Repurchase Agreements.--Section 
559 of title 11, United States Code, is amended--
            (1) by amending the section heading to read as follows:
``Sec. 559. Contractual right to liquidate, terminate, or accelerate a 
              repurchase agreement'';
        and
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''.
    (j) Liquidation, Termination, or Acceleration of Swap Agreements.--
Section 560 of title 11, United States Code, is amended--
            (1) by amending the section heading to read as follows:
``Sec. 560. Contractual right to liquidate, terminate, or accelerate a 
              swap agreement'';
        and
            (2) in the first sentence, by striking ``termination of a 
        swap agreement'' and inserting ``liquidation, termination, or 
        acceleration of one or more swap agreements''; and
            (3) by striking ``in connection with any swap agreement'' 
        and inserting ``in connection with the termination, 
        liquidation, or acceleration of one or more swap agreements''.
    (k) Liquidation, Termination, Acceleration, or Offset Under a 
Master Netting Agreement and Across Contracts.--(1) Title 11, United 
States Code, is amended by inserting after section 560 the following:
``Sec. 561. Contractual right to terminate, liquidate, accelerate, or 
              offset under a master netting agreement and across 
              contracts
    ``(a) In General.--Subject to subsection (b), the exercise of any 
contractual right, because of a condition of the kind specified in 
section 365(e)(1), to cause the termination, liquidation, or 
acceleration of or to offset or net termination values, payment amounts 
or other transfer obligations arising under or in connection with one 
or more (or the termination, liquidation, or acceleration of one or 
more)--
            ``(1) securities contracts, as defined in section 741(7);
            ``(2) commodity contracts, as defined in section 761(4);
            ``(3) forward contracts;
            ``(4) repurchase agreements;
            ``(5) swap agreements; or
            ``(6) master netting agreements,
shall not be stayed, avoided, or otherwise limited by operation of any 
provision of this title or by any order of a court or administrative 
agency in any proceeding under this title.
    ``(b) Exception.--
            ``(1) A party may exercise a contractual right described in 
        subsection (a) to terminate, liquidate, or accelerate only to 
        the extent that such party could exercise such a right under 
        section 555, 556, 559, or 560 for each individual contract 
        covered by the master netting agreement in issue.
            ``(2) If a debtor is a commodity broker subject to 
        subchapter IV of chapter 7 of this title--
                    ``(A) a party may not net or offset an obligation 
                to the debtor arising under, or in connection with, a 
                commodity contract against any claim arising under, or 
                in connection with, other instruments, contracts, or 
                agreements listed in subsection (a) except to the 
                extent the party has positive net equity in the 
                commodity accounts at the debtor, as calculated under 
                subchapter IV; and
                    ``(B) another commodity broker may not net or 
                offset an obligation to the debtor arising under, or in 
                connection with, a commodity contract entered into or 
                held on behalf of a customer of the debtor against any 
                claim arising under, or in connection with, other 
                instruments, contracts, or agreements listed in 
                subsection (a).
    ``(c) Definition.--As used in this section, the term `contractual 
right' includes a right set forth in a rule or bylaw of a national 
securities exchange, a national securities association, or a securities 
clearing agency, a right set forth in a bylaw of a clearing 
organization or contract market or in a resolution of the governing 
board thereof, and a right, whether or not evidenced in writing, 
arising under common law, under law merchant, or by reason of normal 
business practice.''.
    (2) Conforming amendment.--The table of sections of chapter 9 of 
title 11, United States Code, is amended by inserting after the item 
relating to section 560 the following:

``561. Contractual right to terminate, liquidate, accelerate, or offset 
                            under a master netting agreement and across 
                            contracts.
    (l) Ancillary Proceedings.--Section 304 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(d) Any provisions of this title relating to securities 
contracts, commodity contracts, forward contracts, repurchase 
agreements, swap agreements, or master netting agreements shall apply 
in a case ancillary to a foreign proceeding under this section or any 
other section of this title, so that enforcement of contractual 
provisions of such contracts and agreements in accordance with their 
terms will not be stayed or otherwise limited by operation of any 
provision of this title or by order of a court in any case under this 
title, and to limit avoidance powers to the same extent as in a 
proceeding under chapter 7 or 11 of this title (such enforcement not to 
be limited based on the presence or absence of assets of the debtor in 
the United States).''.
    (m) Commodity Broker Liquidations.--Title 11, United States Code, 
is amended by inserting after section 766 the following:
``Sec. 767. Commodity broker liquidation and forward contract 
              merchants, commodity brokers, stockbrokers, financial 
              institutions, securities clearing agencies, swap 
              participants, repo participants, and master netting 
              agreement participants
    ``Notwithstanding any other provision of this title, the exercise 
of rights by a forward contract merchant, commodity broker, 
stockbroker, financial institution, securities clearing agency, swap 
participant, repo participant, or master netting agreement participant 
under this title shall not affect the priority of any unsecured claim 
it may have after the exercise of such rights.''.
    (n) Stockbroker Liquidations.--Title 11, United States Code, is 
amended by inserting after section 752 the following:
``Sec. 753. Stockbroker liquidation and forward contract merchants, 
              commodity brokers, stockbrokers, financial institutions, 
              securities clearing agencies, swap participants, repo 
              participants, and master netting agreement participants
    ``Notwithstanding any other provision of this title, the exercise 
of rights by a forward contract merchant, commodity broker, 
stockbroker, financial institution, securities clearing agency, swap 
participant, repo participant, financial participant, or master netting 
agreement participant under this title shall not affect the priority of 
any unsecured claim it may have after the exercise of such rights.''.
    (o) Setoff.--Section 553 of title 11, United States Code, is 
amended--
            (1) in subsection (a)(3)(C), by inserting ``(except for a 
        setoff of a kind described in section 362(b)(6), 362(b)(7), 
        362(b)(17), 362(b)(19), 555, 556, 559, 560 or 561 of this 
        title)'' before the period; and
            (2) in subsection (b)(1), by striking ``362(b)(14),'' and 
        inserting ``362(b)(17), 362(b)(19), 555, 556, 559, 560, 561''.
    (p) Securities Contracts, Commodity Contracts, and Forward 
Contracts.--Title 11, United States Code, is amended--
            (1) in section 362(b)(6), by striking ``financial 
        institutions,'' each place such term appears and inserting 
        ``financial institution, financial participant'';
            (2) in section 546(e), by inserting ``financial 
        participant,'' after ``financial institution,'';
            (3) in section 548(d)(2)(B), by inserting ``financial 
        participant,'' after ``financial institution,'';
            (4) in section 555--
                    (A) by inserting ``financial participant,'' after 
                ``financial institution,''; and
                    (B) by inserting before the period at the end ``, a 
                right set forth in a bylaw of a clearing organization 
                or contract market or in a resolution of the governing 
                board thereof, and a right, whether or not in writing, 
                arising under common law, under law merchant, or by 
                reason of normal business practice''; and
            (5) in section 556, by inserting ``, financial 
        participant'' after ``commodity broker''.
    (q) Conforming Amendments.--Title 11, United States Code, is 
amended--
            (1) in the table of sections of chapter 5--
                    (A) by amending the items relating to sections 555 
                and 556 to read as follows:

``555. Contractual right to liquidate, terminate, or accelerate a 
                            securities contract.
``556. Contractual right to liquidate, terminate, or accelerate a 
                            commodities contract or forward 
                            contract.'';
                and
                    (B) by amending the items relating to sections 559 
                and 560 to read as follows:

``559. Contractual right to liquidate, terminate, or accelerate a 
                            repurchase agreement.
``560. Contractual right to liquidate, terminate, or accelerate a swap 
                            agreement.'';
                and
            (2) in the table of sections of chapter 7--
                    (A) by inserting after the item relating to section 
                766 the following:

``767. Commodity broker liquidation and forward contract merchants, 
                            commodity brokers, stockbrokers, financial 
                            institutions, securities clearing agencies, 
                            swap participants, repo participants, and 
                            master netting agreement participants.'';
                and
                    (B) by inserting after the item relating to section 
                752 the following:

``753. Stockbroker liquidation and forward contract merchants, 
                            commodity brokers, stockbrokers, financial 
                            institutions, securities clearing agencies, 
                            swap participants, repo participants, and 
                            master netting agreement participants.''.

SEC. 1008. RECORDKEEPING REQUIREMENTS.

    Section 11(e)(8) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)) is amended by adding at the end the following new 
subparagraph:
                    ``(H) Recordkeeping requirements.--The Corporation, 
                in consultation with the appropriate Federal banking 
                agencies, may prescribe regulations requiring more 
                detailed recordkeeping with respect to qualified 
                financial contracts (including market valuations) by 
                insured depository institutions.''.

SEC. 1009. EXEMPTIONS FROM CONTEMPORANEOUS EXECUTION REQUIREMENT.

    Section 13(e)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
1823(e)(2)) is amended to read as follows:
            ``(2) Exemptions from contemporaneous execution 
        requirement.--An agreement to provide for the lawful 
        collateralization of--
                    ``(A) deposits of, or other credit extension by, a 
                Federal, State, or local governmental entity, or of any 
                depositor referred to in section 11(a)(2), including an 
                agreement to provide collateral in lieu of a surety 
                bond;
                    ``(B) bankruptcy estate funds pursuant to section 
                345(b)(2) of title 11, United States Code;
                    ``(C) extensions of credit, including any 
                overdraft, from a Federal reserve bank or Federal home 
                loan bank; or
                    ``(D) one or more qualified financial contracts, as 
                defined in section 11(e)(8)(D),
        shall not be deemed invalid pursuant to paragraph (1)(B) solely 
        because such agreement was not executed contemporaneously with 
        the acquisition of the collateral or because of pledges, 
        delivery, or substitution of the collateral made in accordance 
        with such agreement.''.

SEC. 1010. DAMAGE MEASURE.

    (a) Title 11, United States Code, as amended by section 1007, is 
amended--
            (1) by inserting after section 561 the following:
``Sec. 562. Damage measure in connection with swap agreements, 
              securities contracts, forward contracts, commodity 
              contracts, repurchase agreements, or master netting 
              agreements
    ``If the trustee rejects a swap agreement, securities contract as 
defined in section 741 of this title, forward contract, commodity 
contract (as defined in section 761 of this title) repurchase 
agreement, or master netting agreement pursuant to section 365(a) of 
this title, or if a forward contract merchant, stockbroker, financial 
institution, securities clearing agency, repo participant, financial 
participant, master netting agreement participant, or swap participant 
liquidates, terminates, or accelerates such contract or agreement, 
damages shall be measured as of the earlier of--
            ``(1) the date of such rejection; or
            ``(2) the date of such liquidation, termination, or 
        acceleration.''; and
            (2) in the table of sections of chapter 5 by inserting 
        after the item relating to section 561 the following:

``562. Damage measure in connection with swap agreements, securities 
                            contracts, forward contracts, commodity 
                            contracts, repurchase agreements, or master 
                            netting agreements.''.
    (b) Claims Arising From Rejection.--Section 502(g) of title 11, 
United States Code, is amended--
            (1) by designating the existing text as paragraph (1); and
            (2) by adding at the end the following:
    ``(2) A claim for damages calculated in accordance with section 561 
of this title shall be allowed under subsection (a), (b), or (c), or 
disallowed under subsection (d) or (e), as if such claim had arisen 
before the date of the filing of the petition.''.

SEC. 1011. SIPC STAY.

    Section 5(b)(2) of the Securities Investor Protection Act of 1970 
(15 U.S.C. 78eee(b)(2)) is amended by adding after subparagraph (B) the 
following new subparagraph:
                    ``(C) Exception from stay.--
                            ``(i) Notwithstanding section 362 of title 
                        11, United States Code, neither the filing of 
                        an application under subsection (a)(3) nor any 
                        order or decree obtained by Securities Investor 
                        Protection Corporation from the court shall 
                        operate as a stay of any contractual rights of 
                        a creditor to liquidate, terminate, or 
                        accelerate a securities contract, commodity 
                        contract, forward contract, repurchase 
                        agreement, swap agreement, or master netting 
                        agreement, each as defined in title 11, to 
                        offset or net termination values, payment 
                        amounts, or other transfer obligations arising 
                        under or in connection with one or more of such 
                        contracts or agreements, or to foreclose on any 
                        cash collateral pledged by the debtor whether 
                        or not with respect to one or more of such 
                        contracts or agreements.
                            ``(ii) Notwithstanding clause (i), such 
                        application, order, or decree may operate as a 
                        stay of the foreclosure on securities 
                        collateral pledged by the debtor, whether or 
                        not with respect to one or more of such 
                        contracts or agreements, securities sold by the 
                        debtor under a repurchase agreement or 
                        securities lent under a securities lending 
                        agreement.
                            ``(iii) As used in this section, the term 
                        `contractual right' includes a right set forth 
                        in a rule or bylaw of a national securities 
                        exchange, a national securities association, or 
                        a securities clearing agency, a right set forth 
                        in a bylaw of a clearing organization or 
                        contract market or in a resolution of the 
                        governing board thereof, and a right, whether 
                        or not in writing, arising under common law, 
                        under law merchant, or by reason of normal 
                        business practice.''.

SEC. 1012. ASSET-BACKED SECURITIZATIONS.

    Section 541 of title 11, United States Code, as amended by section 
150, is amended--
            (1) by redesignating paragraph (5) of subsection (b) as 
        paragraph (6);
            (2) by inserting after paragraph (4) of subsection (b) the 
        following new paragraph:
            ``(5) any eligible asset (or proceeds thereof), to the 
        extent that such eligible asset was transferred by the debtor, 
        before the date of commencement of the case, to an eligible 
        entity in connection with an asset-backed securitization, 
        except to the extent such asset (or proceeds or value thereof) 
        may be recovered by the trustee under section 550 by virtue of 
        avoidance under section 548(a);''; and
            (3) by adding at the end the following new subsection:
    ``(e) For purposes of this section, the following definitions shall 
apply:
            ``(1) the term `asset-backed securitization' means a 
        transaction in which eligible assets transferred to an eligible 
        entity are used as the source of payment on securities, the 
        most senior of which are rated investment grade by one or more 
        nationally recognized securities rating organizations, issued 
        by an issuer;
            ``(2) the term `eligible asset' means--
                    ``(A) financial assets (including interests therein 
                and proceeds thereof), either fixed or revolving, 
                including residential and commercial mortgage loans, 
                consumer receivables, trade receivables, and lease 
                receivables, that, by their terms, convert into cash 
                within a finite time period, plus any residual interest 
                in property subject to receivables included in such 
                financial assets plus any rights or other assets 
                designed to assure the servicing or timely distribution 
                of proceeds to security holders;
                    ``(B) cash; and
                    ``(C) securities.
            ``(3) the term `eligible entity' means--
                    ``(A) an issuer; or
                    ``(B) a trust, corporation, partnership, or other 
                entity engaged exclusively in the business of acquiring 
                and transferring eligible assets directly or indirectly 
                to an issuer and taking actions ancillary thereto;
            ``(4) the term `issuer' means a trust, corporation, 
        partnership, or other entity engaged exclusively in the 
        business of acquiring and holding eligible assets, issuing 
        securities backed by eligible assets, and taking actions 
        ancillary thereto; and
            ``(5) the term `transferred' means the debtor, pursuant to 
        a written agreement, represented and warranted that eligible 
        assets were sold, contributed, or otherwise conveyed with the 
        intention of removing them from the estate of the debtor 
        pursuant to subsection (b)(5), irrespective, without limitation 
        of--
                    ``(A) whether the debtor directly or indirectly 
                obtained or held an interest in the issuer or in any 
                securities issued by the issuer;
                    ``(B) whether the debtor had an obligation to 
                repurchase or to service or supervise the servicing of 
                all or any portion of such eligible assets; or
                    ``(C) the characterization of such sale, 
                contribution, or other conveyance for tax, accounting, 
                regulatory reporting, or other purposes.''.

SEC. 1013. FEDERAL RESERVE COLLATERAL REQUIREMENTS.

    The third sentence of the third undesignated paragraph of section 
16 of the Federal Reserve Act (12 U.S.C. 412) is amended by striking 
``acceptances acquired under the provisions of section 13 of this Act'' 
and inserting ``acceptances acquired under section 10A, 10B, 13, or 13A 
of this Act''.

SEC. 1014. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--This title shall take effect on the date of 
the enactment of this Act.
    (b) Application of Amendments.--The amendments made by this title 
shall apply with respect to cases commenced or appointments made under 
any Federal or State law after the date of the enactment of this Act, 
but shall not apply with respect to cases commenced or appointments 
made under any Federal or State law before the date of the enactment of 
this Act.

                    TITLE XI--TECHNICAL CORRECTIONS

SEC. 1101. DEFINITIONS.

    Section 101 of title 11, United States Code, as amended by sections 
102, 105, 132, 138, 301, 302, 402, 902, and 1007, is amended--
            (1) by striking ``In this title--'' and inserting ``In this 
        title:'';
            (2) in each paragraph, by inserting ``The term'' after the 
        paragraph designation;
            (3) in paragraph (35)(B), by striking ``paragraphs (21B) 
        and (33)(A)'' and inserting ``paragraphs (23) and (35)'';
            (4) in each of paragraphs (35A) and (38), by striking ``; 
        and'' at the end and inserting a period;
            (5) in paragraph (51B)--
                    (A) by inserting ``who is not a family farmer'' 
                after ``debtor'' the first place it appears; and
                    (B) by striking ``thereto having aggregate'' and 
                all that follows through the end of the paragraph;
            (6) by amending paragraph (54) to read as follows:
            ``(54) The term `transfer' means--
                    ``(A) the creation of a lien;
                    ``(B) the retention of title as a security 
                interest;
                    ``(C) the foreclosure of a debtor's equity of 
                redemption; or
                    ``(D) each mode, direct or indirect, absolute or 
                conditional, voluntary or involuntary, of disposing of 
                or parting with--
                            ``(i) property; or
                            ``(ii) an interest in property;'';
            (7) in each of paragraphs (1) through (35), in each of 
        paragraphs (36) and (37), and in each of paragraphs (40) 
        through (55) (including paragraph (54), as amended by paragraph 
        (6) of this section), by striking the semicolon at the end and 
        inserting a period; and
            (8) by redesignating paragraphs (4) through (55), including 
        paragraph (54), as amended by paragraph (6) of this section, in 
        entirely numerical sequence.

SEC. 1102. ADJUSTMENT OF DOLLAR AMOUNTS.

    Section 104 of title 11, United States Code, is amended by 
inserting ``522(f)(3), 707(b)(5),'' after ``522(d),'' each place it 
appears.

SEC. 1103. EXTENSION OF TIME.

    Section 108(c)(2) of title 11, United States Code, is amended by 
striking ``922'' and all that follows through ``or'', and inserting 
``922, 1201, or''.

SEC. 1104. TECHNICAL AMENDMENTS.

    Title 11, United States Code, is amended--
            (1) in section 109(b)(2) by striking ``subsection (c) or 
        (d) of''; and
            (2) in section 552(b)(1) by striking ``product'' each place 
        it appears and inserting ``products''.

SEC. 1105. PENALTY FOR PERSONS WHO NEGLIGENTLY OR FRAUDULENTLY PREPARE 
              BANKRUPTCY PETITIONS.

    Section 110(j)(3) of title 11, United States Code, is amended by 
striking ``attorney's'' and inserting ``attorneys'''.

SEC. 1106. LIMITATION ON COMPENSATION OF PROFESSIONAL PERSONS.

    Section 328(a) of title 11, United States Code, is amended by 
inserting ``on a fixed or percentage fee basis,'' after ``hourly 
basis,''.

SEC. 1107. SPECIAL TAX PROVISIONS.

    Section 346(g)(1)(C) of title 11, United States Code, is amended by 
striking ``, except'' and all that follows through ``1986''.

SEC. 1108. 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. 1109. 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. 1110. PRIORITIES.

    Section 507(a) of title 11, United States Code, as amended by 
section 323, is amended in paragraph (4), as so redesignated by section 
142, by striking the semicolon at the end and inserting a period.

SEC. 1111. EXEMPTIONS.

    Section 522(g)(2) of title 11, United States Code, is amended by 
striking ``subsection (f)(2)'' and inserting ``subsection (f)(1)(B)''.

SEC. 1112. EXCEPTIONS TO DISCHARGE.

    Section 523 of title 11, United States Code, as amended by section 
146, is amended--
            (1) in subsection (a)(3), by striking ``or (6)'' each place 
        it appears and inserting ``(6), or (15)'';
            (2) as amended by section 304(e) of Public Law 103-394 (108 
        Stat. 4133), in paragraph (15), by transferring such paragraph 
        so as to insert it after paragraph (14A) of subsection (a);
            (3) in subsection (a)(9), by inserting ``, watercraft, or 
        aircraft'' after ``motor vehicle'';
            (4) in subsection (a)(15), as so redesignated by paragraph 
        (2) of this subsection, by inserting ``to a spouse, former 
        spouse, or child of the debtor and'' after ``(15)''; and
            (5) in subsection (e), by striking ``a insured'' and 
        inserting ``an insured''.

SEC. 1113. EFFECT OF DISCHARGE.

    Section 524(a)(3) of title 11, United States Code, is amended by 
striking ``section 523'' and all that follows through ``or that'' and 
inserting ``section 523, 1228(a)(1), or 1328(a)(1) of this title, or 
that''.

SEC. 1114. 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. 1115. PROPERTY OF THE ESTATE.

    Section 541(b)(4)(B)(ii) of title 11, United States Code, is 
amended by inserting ``365 or'' before ``542''.

SEC. 1116. PREFERENCES.

    (a) In General.--Section 547 of title 11, United States Code, is 
amended--
            (1) in subsection (b), by striking ``subsection (c)'' and 
        inserting ``subsections (c) and (i)''; and
            (2) by adding at the end the following:
    ``(i) If the trustee avoids under subsection (b) a transfer made 
between 90 days and 1 year before the date of the filing of the 
petition, by the debtor to an entity that is not an insider for the 
benefit of a creditor that is an insider, such transfer may be avoided 
under this section only with respect to the creditor that is an 
insider.''.
    (b) Applicability.--The amendments made by this section shall apply 
to any case that is pending or commenced on or after the date of the 
enactment of this Act.

SEC. 1117. POSTPETITION TRANSACTIONS.

    Section 549(c) of title 11, United States Code, is amended--
            (1) by inserting ``an interest in'' after ``transfer of'';
            (2) by striking ``such property'' and inserting ``such real 
        property''; and
            (3) by striking ``the interest'' and inserting ``such 
        interest''.

SEC. 1118. DISPOSITION OF PROPERTY OF THE ESTATE.

    Section 726(b) of title 11, United States Code, is amended by 
striking ``1009,''.

SEC. 1119. GENERAL PROVISIONS.

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

SEC. 1120. APPOINTMENT OF ELECTED 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:
    ``(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. 1121. ABANDONMENT OF RAILROAD LINE.

    Section 1170(e)(1) of title 11, United States Code, is amended by 
striking ``section 11347'' and inserting ``section 11326(a)''.

SEC. 1122. CONTENTS OF PLAN.

    Section 1172(c)(1) of title 11, United States Code, is amended by 
striking ``section 11347'' and inserting ``section 11326(a)''.

SEC. 1123. DISCHARGE UNDER CHAPTER 12.

    Subsections (a) and (c) of section 1228 of title 11, United States 
Code, are amended by striking ``1222(b)(10)'' each place it appears and 
inserting ``1222(b)(9)''.

SEC. 1124. 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) and this subsection''.

SEC. 1125. KNOWING DISREGARD OF BANKRUPTCY LAW OR RULE.

    Section 156(a) of title 18, United States Code, is amended--
            (1) in the first undesignated paragraph--
                    (A) by inserting ``(1) the term'' before 
                ```bankruptcy''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (2) in the second undesignated paragraph--
                    (A) by inserting ``(2) the term'' before 
                ```document''; and
                    (B) by striking ``this title'' and inserting 
                ``title 11''.

SEC. 1126. TRANSFERS MADE BY NONPROFIT CHARITABLE CORPORATIONS.

    (a) Sale of Property of Estate.--Section 363(d) of title 11, United 
States Code, is amended--
            (1) by striking ``only'' and all that follows through the 
        end of the subsection and inserting ``only--
            ``(1) in accordance with applicable nonbankruptcy law that 
        governs the transfer of property by a corporation or trust that 
        is not a moneyed, business, or commercial corporation or trust; 
        and
            ``(2) to the extent not inconsistent with any relief 
        granted under subsection (c), (d), (e), or (f) of section 362 
        of this title.''.
    (b) Confirmation of Plan for Reorganization.--Section 1129(a) of 
title 11, United States Code, as amended by section 140, is amended by 
adding at the end the following:
            ``(15) All transfers of property of the plan shall be made 
        in accordance with any applicable provisions of nonbankruptcy 
        law that govern the transfer of property by a corporation or 
        trust that is not a moneyed, business, or commercial 
        corporation or trust.''.
    (c) Transfer of Property.--Section 541 of title 11, United States 
Code, as amended by section 1102, is amended by adding at the end the 
following:
    ``(f) Notwithstanding any other provision of this title, property 
that is held by a debtor that is a corporation described in section 
501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax 
under section 501(a) of such Code may be transferred to an entity that 
is not such a corporation, but only under the same conditions as would 
apply if the debtor had not filed a case under this title.''.
    (d) Applicability.--The amendments made by this section shall apply 
to a case pending under title 11, United States Code, on the date of 
the enactment of this Act, except that the court shall not confirm a 
plan under chapter 11 of this title without considering whether this 
section would substantially affect the rights of a party in interest 
who first acquired rights with respect to the debtor after the date of 
the petition. The parties who may appear and be heard in a proceeding 
under this section include the attorney general of the State in which 
the debtor is incorporated, was formed, or does business.
    (e) Rule of Construction.--Nothing in this section shall be deemed 
to require the court in which a case under chapter 11 is pending to 
remand or refer any proceeding, issue, or controversy to any other 
court or to require the approval of any other court for the transfer of 
property.

SEC. 1127. PROHIBITION ON CERTAIN ACTIONS FOR FAILURE TO INCUR FINANCE 
              CHARGES.

    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended 
by adding at the end the following:
    ``(i) Prohibition on Certain Actions for Failure To Incur Finance 
Charges.--A creditor of an account under an open end consumer credit 
plan may not terminate an account prior to its expiration date solely 
because the consumer has not incurred finance charges on the account. 
Nothing in this subsection shall prohibit a creditor from terminating 
an account for inactivity in 3 or more consecutive months.''.

SEC. 1128. PROTECTION OF VALID PURCHASE MONEY SECURITY INTERESTS.

    Section 547(c)(3)(B) of title 11, United States Code, is amended by 
striking ``20'' and inserting ``30''.

SEC. 1129. TRUSTEES.

    (a) Suspension and Termination of Panel Trustees and Standing 
Trustees.--Section 586(d) of title 28, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(d)''; and
            (2) by adding at the end the following:
    ``(2) A trustee whose appointment under subsection (a)(1) or under 
subsection (b) is terminated or who ceases to be assigned to cases 
filed under title 11, United States Code, may obtain judicial review of 
the final agency decision by commencing an action in the United States 
district court for the district for which the panel to which the 
trustee is appointed under subsection (a)(1), or in the United States 
district court for the district in which the trustee is appointed under 
subsection (b) resides, after first exhausting all available 
administrative remedies, which if the trustee so elects, shall also 
include an administrative hearing on the record. Unless the trustee 
elects to have an administrative hearing on the record, the trustee 
shall be deemed to have exhausted all administrative remedies for 
purposes of this paragraph if the agency fails to make a final agency 
decision within 90 days after the trustee requests administrative 
remedies. The Attorney General shall prescribe procedures to implement 
this paragraph. The decision of the agency shall be affirmed by the 
district court unless it is unreasonable and without cause based on the 
administrative record before the agency.''.
    (b) Expenses of Standing Trustees.--Section 586(e) of title 28, 
United States Code, is amended by adding at the end the following:
    ``(3) After first exhausting all available administrative remedies, 
an individual appointed under subsection (b) may obtain judicial review 
of final agency action to deny a claim of actual, necessary expenses 
under this subsection by commencing an action in the United States 
district court in the district where the individual resides. The 
decision of the agency shall be affirmed by the district court unless 
it is unreasonable and without cause based upon the administrative 
record before the agency.
    ``(4) The Attorney General shall prescribe procedures to implement 
this subsection.''.

      TITLE XII--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS

SEC. 1201. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as provided otherwise in this Act, this 
Act and the amendments made by this Act shall take effect 180 days 
after the date of the enactment of this Act.
    (b) Application of Amendments.--Except as otherwise provided in 
this Act, the amendments made by this Act shall not apply with respect 
to cases commenced under title 11, United States Code, before the 
effective date of this Act.

            Passed the House of Representatives May 5, 1999.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.
```