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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5116 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 5116

              To amend title 11 of the United States Code.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 28, 1994

   Mr. Brooks (for himself, Mr. Fish, and Mr. Synar) introduced the 
  following bill; which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL

 
              To amend title 11 of the United States Code.

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

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Bankruptcy Reform 
Act of 1994''.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title.
              TITLE I--IMPROVED BANKRUPTCY ADMINISTRATION

Sec. 101. Expedited hearing on automatic stay.
Sec. 102. Jurisdiction to review interlocutory orders increasing 
                            certain time periods for filing plan.
Sec. 103. Expedited procedure for reaffirmation of debts.
Sec. 104. Powers of bankruptcy courts.
Sec. 105. Participation by bankruptcy administrator at meetings of 
                            creditors and equity security holders.
Sec. 106. Definition relating to eligibility to serve on chapter 11 
                            committees.
Sec. 107. Increased incentive compensation for trustees.
Sec. 108. Dollar adjustments.
Sec. 109. Premerger notification.
Sec. 110. Allowance of creditor committee expenses.
Sec. 111. Supplemental injunctions; settlement of claims and demands 
                            for payment.
Sec. 112. Authority of bankruptcy judges to conduct jury trials in 
                            civil proceedings.
Sec. 113. Sovereign immunity.
                 TITLE II--COMMERCIAL BANKRUPTCY ISSUES

Sec. 201. Aircraft equipment and vessels; rolling stock equipment.
Sec. 202. Limitation on liability of non-insider transferee for avoided 
                            transfer.
Sec. 203. Perfection of purchase-money security interest.
Sec. 204. Continued perfection.
Sec. 205. Rejection of unexpired leases of real property or timeshare 
                            interests.
Sec. 206. Contents of plan.
Sec. 207. Priority for independent sales representatives.
Sec. 208. Exclusion from the estate of interests in liquid and gaseous 
                            hydrocarbons transferred by the debtor 
                            pursuant to production payment agreements.
Sec. 209. Seller's right to reclaim goods.
Sec. 210. Investment of money of the estate.
Sec. 211. Election of trustee under chapter 11.
Sec. 212. Rights of partnership trustee against general partners.
Sec. 213. Exclusion from the estate of certain accounts and chattel 
                            paper.
Sec. 214. Timely filing of claims, interests, and adminstrative expense 
                            requests.
Sec. 215. Protection of security interest in post-petition rents.
Sec. 216. Amendment to definition of swap agreement.
                 TITLE III--CONSUMER BANKRUPTCY ISSUES

Sec. 301. Period for curing default relating to principal residence.
Sec. 302. Nondischargeability of fine under chapter 13.
Sec. 303. Impairment of exemptions.
Sec. 304. Protection of child support and alimony.
Sec. 305. Preservation of home mortgage liens.
Sec. 306. Interest on interest.
Sec. 307. Exception to discharge.
Sec. 308. Payments.
                TITLE IV--GOVERNMENTAL BANKRUPTCY ISSUES

Sec. 401. Exception from automatic stay for post-petition property 
                            taxes.
Sec. 402. Municipal bankruptcy.
                     TITLE V--TECHNICAL CORRECTIONS

Sec. 501. Amendments to bankruptcy definitions, necessitated by 
                            enactment of Public Law 101-647.
Sec. 502. Title 28 of the United States Code.
   TITLE VI--SEVERABILITY; EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

Sec. 601. Severability.
Sec. 602. Effective date; application of amendments.

              TITLE I--IMPROVED BANKRUPTCY ADMINISTRATION

SEC. 101. EXPEDITED HEARING ON AUTOMATIC STAY.

    The last sentence of section 362(e) of title 11, United States 
Code, is amended--
            (1) by striking ``commenced'' and inserting ``concluded'', 
        and
            (2) by inserting before the period at the end the 
        following:
``, unless the 30-day period is extended with the consent of the 
parties in interest or for a specific time which the court finds is 
required by compelling circumstances''.

SEC. 102. JURISDICTION TO REVIEW INTERLOCUTORY ORDERS INCREASING 
              CERTAIN TIME PERIODS FOR FILING PLAN.

    Section 158 of title 28, United States Code, is amended--
            (1) in subsection (a) by striking ``from'' the first place 
        it appears and all that follows through ``decrees,'', and 
        inserting the following:
            ``(1) from final judgments, orders, and decrees;
            ``(2) from interlocutory orders and decrees issued under 
        section 1121(d) of title 11 increasing the time periods 
        referred to in section 1121 of such title; and
            ``(3) with leave of the court, from other interlocutory 
        orders and decrees;''.

SEC. 103. EXPEDITED PROCEDURE FOR REAFFIRMATION OF DEBTS.

    (a) Reaffirmation.--Section 524(c) of title 11, United States Code, 
is amended--
            (1) in paragraph (2)--
                    (A) by inserting ``(A)'' after ``(2)'',
                    (B) by adding ``and'' at the end, and
                    (C) by inserting after subparagraph (A), as so 
                designated, the following:
                    ``(B) such agreement contains a clear and 
                conspicuous statement which advises the debtor that 
                such agreement is not required under this title, under 
                nonbankruptcy law, or under any agreement not in 
                accordance with the provisions of this subsection;'', 
                and
            (2) in paragraph (3)--
                    (A) in the matter preceding subparagraph (A) by 
                striking ``such agreement'' the last place it appears,
                    (B) in subparagraph (A)--
                            (i) by inserting ``such agreement'' after 
                        ``(A)'', and
                            (ii) by striking ``and'' at the end,
                    (C) in subparagraph (B)--
                            (i) by inserting ``such agreement'' after 
                        ``(B)'', and
                            (ii) by adding ``and'' at the end, and
            (3) by adding at the end the following:
                    ``(C) the attorney fully advised the debtor of the 
                legal effect and consequences of--
                            ``(i) an agreement of the kind specified in 
                        this subsection; and
                            ``(ii) any default under such an 
                        agreement;''.
    (b) Effect of Discharge.--The third sentence of section 524(d) of 
title 11, United States Code, is amended in the matter preceding 
paragraph (1) by inserting ``and was not represented by an attorney 
during the course of negotiating such agreement'' after ``this 
section''.

SEC. 104. POWERS OF BANKRUPTCY COURTS.

    (a) Status Conferences.--Section 105 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(d) The court, on its own motion or on the motion of any party in 
interest, may--
            ``(1) hold a status conference regarding any case or 
        proceeding under this title after notice to the parties in 
        interest; and
            ``(2) unless inconsistent with another provision of this 
        title or with applicable Bankruptcy Rules, issue an order at 
        any such conference prescribing such limitations and conditions 
        as the court deems appropriate to ensure that the case is 
        handled expeditiously and economically, including an order 
        that--
                    ``(A) sets the date by which the debtor must accept 
                or reject an executory contract or unexpired lease; or
                    ``(B) in a case under chapter 11 of this title--
                            ``(i) sets a date by which the debtor, or 
                        trustee if one has been appointed, shall file a 
                        disclosure statement and plan;
                            ``(ii) sets a date by which the debtor, or 
                        trustee if one has been appointed, shall 
                        solicit acceptances of a plan;
                            ``(iii) sets the date by which a party in 
                        interest other than a debtor may file a plan;
                            ``(iv) fixes the notice to be provided 
                        regarding the hearing on approval of the 
                        disclosure statement; or
                            ``(v) provides that the hearing on approval 
                        of the disclosure statement may be combined 
                        with the hearing on confirmation of the 
                        plan.''.
    (b) Abstention.--Section 1334 of title 28, United States Code, is 
amended--
            (1) by redesignating subsection (d) as subsection (e), and
            (2) in the second sentence of subsection (c)(2)--
                    (A) by inserting ``(other than a decision not to 
                abstain in a proceeding described in subsection 
                (c)(2))'' after ``subsection'', and
                    (B) by striking ``Any'' and inserting the 
                following:
    ``(d) Any''.
    (c) Establishment, Operation, and Termination of Bankruptcy 
Appellate Panel Service.--Section 158(b) of title 28, United States 
Code, is amended--
            (1) by striking paragraphs (3) and (4),
            (2) by redesignating paragraph (2) as paragraph (4),
            (3) by striking paragraph (1) and inserting the following:
    ``(1) The judicial council of a circuit shall establish a 
bankruptcy appellate panel service composed of bankruptcy judges of the 
districts in the circuit who are appointed by the judicial council in 
accordance with paragraph (3), to hear and determine, with the consent 
of all the parties, appeals under subsection (a) unless the judicial 
council finds that--
            ``(A) there are insufficient judicial resources available 
        in the circuit; or
            ``(B) establishment of such service would result in undue 
        delay or increased cost to parties in cases under title 11.
Not later than 90 days after making the finding, the judicial council 
shall submit to the Judicial Conference a report containing the factual 
basis of such finding.
    ``(2)(A) A judicial council may reconsider, at any time, the 
finding described in paragraph (1).
    ``(B) On the request of a majority of the district judges in a 
circuit for which a bankruptcy appellate panel service is established 
under paragraph (1), made after the expiration of the 1-year period 
beginning on the date such service is established, the judicial council 
of the circuit shall determine whether a circumstance specified in 
subparagraph (A) or (B) of such paragraphs exists.
    ``(C) On its own motion, after the expiration of the 3-year period 
beginning on the date an bankruptcy appellate panel service is 
established under paragraph (1), the judicial council of the circuit 
may determine whether a circumstance specified in subparagraph (A) or 
(B) of such paragraphs exists.
    ``(D) If the judicial council finds that either of such 
circumstances exists, the judicial council may provide for the 
completion of the appeals then pending before such service and the 
orderly termination of such service.
    ``(3) Bankruptcy judges appointed under paragraph (1) shall be 
appointed and may be reappointed under such paragraph.'', and
            (4) by inserting after paragraph (4), as so redesignated, 
        the following:
    ``(5) An appeal to be heard under this subsection shall be heard by 
a panel of 3 members of the bankruptcy appellate panel service, except 
that a member of such service may not hear an appeal originating in the 
district for which such member is appointed or designated under section 
152 of this title.
    ``(6) Appeals may not be heard under this subsection by a panel of 
the bankruptcy appellate panel service unless the district judges for 
the district in which the appeals occur, by majority vote, have 
authorized such service to hear and determine appeals originating in 
such district.''.
    (d) Appeals To Be Heard by Bankruptcy Appellate Panel Service.--
Section 158 of title 28, United States Code, is amended--
            (1) in subsection (c) by striking ``(c)'' and inserting 
        ``(2)'', and
            (2) by inserting after subsection (b) the following:
    ``(c)(1) Subject to subsection (b), each appeal under subsection 
(a) shall be heard by a 3-judge panel of the bankruptcy appellate panel 
service established under subsection (b)(1) unless--
            ``(A) the appellant elects at the time of filing the 
        appeal; or
            ``(B) any other party elects, not later than 30 days after 
        service of notice of the appeal;
to have such appeal heard by the district court.''.
    (e) Rules of Procedure and Evidence; Method of Prescribing.--
Section 2073 of title 28, United States Code, is amended--
            (1) in subsection (a)(2) by striking ``section 2072'' and 
        inserting ``sections 2072 and 2075'', and
            (2) in subsections (d) and (e) by inserting ``or 2075'' 
        after ``2072'' each place it appears.
    (f) Effective Date of Bankruptcy Rules.--Section 2075 of title 28, 
United States Code, is amended by striking ``ninety days'' and 
inserting ``180 days''.

SEC. 105. PARTICIPATION BY BANKRUPTCY ADMINISTRATOR AT MEETINGS OF 
              CREDITORS AND EQUITY SECURITY HOLDERS.

    (a) Presiding Officer.--A bankruptcy administrator appointed under 
section 302(d)(3)(I) of the Bankruptcy Judges, United States Trustees, 
and Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note; Public 
Law 99-554; 100 Stat. 3123), as amended by section 317(a) of the 
Federal Courts Study Committee Implementation Act of 1990 (Public Law 
101-650; 104 Stat. 5115), or the bankruptcy administrator's designee 
may preside at the meeting of creditors convened under section 341(a) 
of title 11, United States Code. The bankruptcy administrator or the 
bankruptcy administrator's designee may preside at any meeting of 
equity security holders convened under section 341(b) of title 11, 
United States Code.
    (b) Examination of the Debtor.--The bankruptcy administrator or the 
bankruptcy administrator's designee may examine the debtor at the 
meeting of creditors and may administer the oath required under section 
343 of title 11, United States Code.

SEC. 106. DEFINITION RELATING TO ELIGIBILITY TO SERVE ON CHAPTER 11 
              COMMITTEES.

    Section 101(41) of title 11, United States Code, is amended to read 
as follows:
            ``(41) `person' includes individual, partnership, and 
        corporation, but does not include governmental unit, except 
        that a governmental unit that--
                    ``(A) acquires an asset from a person--
                            ``(i) as a result of the operation of a 
                        loan guarantee agreement; or
                            ``(ii) as receiver or liquidating agent of 
                        a person;
                    ``(B) is a guarantor of a pension benefit payable 
                by or on behalf of the debtor or an affiliate of the 
                debtor; or
                    ``(C) is the legal or beneficial owner of an asset 
                of--
                            ``(i) an employee pension benefit plan that 
                        is a governmental plan, as defined in section 
                        414(d) of the Internal Revenue Code of 1986; or
                            ``(ii) an eligible deferred compensation 
                        plan, as defined in section 457(b) of the 
                        Internal Revenue Code of 1986;
        shall be considered, for purposes of section 1102 of this 
        title, to be a person with respect to such asset or such 
        benefit;''.

SEC. 107. INCREASED INCENTIVE COMPENSATION FOR TRUSTEES.

    Section 326(a) of title 11, United States Code, is amended by 
striking ``fifteen'' and all that follows through ``$3,000'' the last 
place it appears, and inserting the following:
``25 percent on the first $5,000 or less, 10 percent on any amount in 
excess of $5,000 but not in excess of $50,000, 5 percent on any amount 
in excess of $50,000 but not in excess of $1,000,000, and reasonable 
compensation not to exceed 3 percent of such moneys in excess of 
$1,000,000''.

SEC. 108. DOLLAR ADJUSTMENTS.

    (a) Who May Be a Debtor Under Chapter 13.--Section 109(e) of title 
11, United States Code, is amended--
            (1) by striking ``$100,000'' each place it appears and 
        inserting ``$250,000'', and
            (2) by striking ``$350,000'' each place it appears and 
        inserting ``$750,000''.
    (b) Involuntary Cases.--Section 303(b) of title 11, United States 
Code, is amended--
            (1) in paragraph (1) by striking ``$5,000'' and inserting 
        ``$10,000'', and
            (2) in paragraph (2) by striking ``$5,000'' and inserting 
        ``$10,000''.
    (c) Priorities.--Section 507(a) of title 11, United States Code, is 
amended--
            (1) in paragraph (3)(B) by striking ``$2,000'' and 
        inserting ``$4,000'',
            (2) in paragraph (4)(B)(i) by striking ``$2,000'' and 
        inserting ``$4,000'',
            (3) in paragraph (5) by striking ``$2,000'' and inserting 
        ``$4,000'', and
            (4) in paragraph (6) by striking ``$900'' and inserting 
        ``$1,800''.
    (d) Exemptions.--Section 522(d) of title 11, United States Code, is 
amended--
            (1) in paragraph (1) by striking ``$7,500'' and inserting 
        ``$15,000'',
            (2) in paragraph (2) by striking ``$1,200'' and inserting 
        ``$2,400'',
            (3) in paragraph (3)--
                    (A) by striking ``$200'' and inserting ``$400'', 
                and
                    (B) by striking ``$4,000'' and inserting 
                ``$8,000'',
            (4) in paragraph (4) by striking ``$500'' and inserting 
        ``$1,000'',
            (5) in paragraph (5)--
                    (A) by striking ``$400'' and inserting ``$800'', 
                and
                    (B) by striking ``$3,750'' and inserting 
                ``$7,500'',
            (6) in paragraph (6) by striking ``$750'' and inserting 
        ``$1,500'',
            (7) in paragraph (8) by striking ``$4,000'' and inserting 
        ``$8,000'', and
            (8) in paragraph (11)(D) by striking ``$7,500'' and 
        inserting ``$15,000''.
    (e) Future Adjustments.--Section 104 of title 11, United States 
Code, is amended--
            (1) by inserting ``(a)'' before ``The'', and
            (2) by adding at the end the following:
    ``(h)(1) On April 1, 1998, and at each 3-year interval ending on 
April 1 thereafter, each dollar amount in effect under sections 109(e), 
303(b), 507(a), 522(d), and 523(a)(2)(C) immediately before such April 
1 shall be adjusted--
            ``(A) to reflect the change in the Consumer Price Index for 
        All Urban Consumers, published by the Department of Labor, for 
        the most recent 3-year period ending immediately before January 
        1 preceding such April 1, and
            ``(B) to round to the nearest $25 the dollar amount that 
        represents such change.
    ``(2) Not later than March 1, 1998, and at each 3-year interval 
ending on March 1 thereafter, the Judicial Conference of the United 
States shall publish in the Federal Register the dollar amounts that 
will become effective on such April 1 under sections 109(e), 303(b), 
507(a), and 522(d) of this title.
    ``(3) Adjustments made in accordance with paragraph (1) shall not 
apply with respect to cases commenced before the date of such 
adjustments.''.

SEC. 109. PREMERGER NOTIFICATION.

    Subparagraphs (A) and (B) of section 363(b) of title 11, United 
States Code, are amended to read as follows:
                    ``(A) notwithstanding subsection (a) of such 
                section, the notification required by such subsection 
                to be given by the debtor shall be given by the 
                trustee; and
                    ``(B) notwithstanding subsection (b) of such 
                section, each waiting period applicable under such 
                subsection shall end on the 10th day after the date of 
                the receipt required by subsection (b)(1)(A) of such 
                section unless such waiting period is extended--
                            ``(i) pursuant to subsection (g)(2) of such 
                        section or, in the case of a tender offer, 
                        pursuant to subsection (e)(2) of such section; 
                        or
                            ``(ii) by the court after notice and a 
                        hearing.''.

SEC. 110. ALLOWANCE OF CREDITOR COMMITTEE EXPENSES.

    Section 503(b)(3) of title 11, United States Code, is amended--
            (1) in subparagraph (D) by striking ``or'' at the end,
            (2) in subparagraph (E) by inserting ``or'' at the end, and
            (3) by adding at the end the following:
                    ``(F) a member of a committee appointed under 
                section 1102 of this title, if such expenses are 
                incurred in the performance of the duties of such 
                committee;''.

SEC. 111. SUPPLEMENTAL INJUNCTIONS; SETTLEMENT OF CLAIMS AND DEMANDS 
              FOR PAYMENT.

    (a) Supplemental Injunctions.--Section 524 of title 11, United 
States Code, is amended by adding at the end the following:
    ``(g)(1)(A) After notice and hearing, a court that enters an order 
confirming a plan of reorganization under chapter 11 may issue an 
injunction to supplement the injunctive effect of a discharge under 
this section.
    ``(B) An injunction may be issued under subparagraph (A) to enjoin 
persons and governmental units from taking legal action for the purpose 
of directly or indirectly collecting, recovering, or receiving payment 
or recovery of, on, or with respect to any claim or demand that, under 
a plan of reorganization, is to be paid in whole or in part by a trust 
described in paragraph (2)(B)(i), except such legal actions as are 
expressly allowed by the injunction, the confirmation order, or the 
plan of reorganization.
    ``(2)(A) If the requirements of subparagraph (B) are met at any 
time, then, after entry of an injunction under paragraph (1), any 
proceeding that involves the validity, application, construction, or 
modification of the injunction or of this subsection with respect to 
the injunction may be commenced only in the district court in which the 
injunction was entered, and such court shall have exclusive 
jurisdiction over any such proceeding without regard to the amount in 
controversy.
    ``(B) The requirements of this subparagraph are that--
            ``(i) the injunction is to be implemented in connection 
        with a trust that, pursuant to the plan of reorganization--
                    ``(I) is to assume the liabilities of a debtor 
                which at the time of entry of the order for relief has 
                been named as a defendant in personal injury, wrongful 
                death, or property-damage actions seeking recovery for 
                damages allegedly caused by the presence of, or 
                exposure to, asbestos or asbestos-containing products;
                    ``(II) is to be funded in whole or in part by the 
                securities of 1 or more debtors involved in the plan of 
                reorganization and by the obligation of such debtor or 
                debtors to make future payments, including dividends;
                    ``(III) is to own, or by the exercise of rights 
                granted under the plan could own, a majority of the 
                voting shares of--
                            ``(aa) each such debtor;
                            ``(bb) the parent corporation of each such 
                        debtor; or
                            ``(cc) a subsidiary of each such debtor 
                        that is also a debtor; and
                    ``(IV) is to use its assets or income to pay claims 
                and demands; and
            ``(ii) the court, at any time pursuant to its authority 
        under the plan, over the trust, or otherwise, determines that--
                    ``(I) the debtor may be subject to substantial 
                future demands for payment arising out of the same or 
                similar conduct or events that gave rise to the claims 
                that are addressed by the injunction;
                    ``(II) the actual amounts, numbers, and timing of 
                such future demands cannot be determined;
                    ``(III) pursuit of such demands outside the 
                procedures prescribed by the plan may threaten the 
                plan's purpose to deal equitably with claims and future 
                demands;
                    ``(IV) as part of the process of seeking approval 
                of the plan of reorganization--
                            ``(aa) the terms of the injunction proposed 
                        to be issued under paragraph (1)(A), including 
                        any provisions barring actions against third 
                        parties pursuant to paragraph (4)(A), shall be 
                        set out in the plan of reorganization and in 
                        any disclosure statement supporting the plan; 
                        and
                            ``(bb) a separate class or classes of the 
                        claimants whose claims are to be addressed by a 
                        trust described in clause (i) is established 
                        and votes, by at least 75 percent of those 
                        voting, in favor of the plan; and
                    ``(V) pursuant to court orders or otherwise, the 
                trust will operate through mechanisms such as 
                structured, periodic or supplemental payments, pro rata 
                distributions, matrices, or periodic review of 
                estimates of the numbers and values of present claims 
                and future demands or other comparable alternates, that 
                provide reasonable assurance that the trust will value, 
                and be in a financial position to pay, present claims 
                and future demands that involve similar claims in 
                substantially the same manner, except that with respect 
                to a trust in existence on the date of the enactment of 
                the Bankruptcy Amendments of 1994 that is subject to a 
                court order staying it from settling or paying further 
                claims--
                            ``(aa) the requirements of this subclause 
                        shall apply as of the date such stay is lifted 
                        or otherwise dissolved; and
                            ``(bb) such a trust that meets the 
                        requirements of the subclause as of the date 
                        such stay is lifted or dissolved, shall be 
                        treated for all legal purposes as being in 
                        compliance with this subsection from the date 
                        of the enactment of such Act.
    ``(3)(A) If the requirements of paragraph (2)(B) are met and the 
order approving the plan of reorganization was issued or affirmed by 
the district court that has jurisdiction over the reorganization 
proceedings, then after the time for appeal of the order that issues or 
affirms the plan of reorganization--
            ``(i) the injunction shall be valid and enforceable and may 
        not be revoked or modified by any court except through appeal 
        in accordance with paragraph (6);
            ``(ii) no entity that pursuant to the plan of 
        reorganization or thereafter becomes a direct or indirect 
        transferee of, or successor to any assets of, a debtor or trust 
        that is the subject of the injunction shall be liable with 
        respect to any claim or demand made against it by reason of its 
        becoming such a transferee or successor; and
            ``(iii) no entity that pursuant to the plan of 
        reorganization or thereafter makes a loan to such a debtor or 
        trust or to such a successor or transferee shall, by reason of 
        making the loan, be liable with respect to any claim or demand 
        made against it, nor shall any pledge of assets made in 
        connection with such a loan be upset or impaired for that 
        reason;
    ``(B) Subparagraph (A) shall not be construed to--
            ``(i) imply that an entity described in subparagraph (A) 
        (ii) or (iii) would, if this paragraph were not applicable, 
        have liability by reason of any of the acts described in 
        subparagraph (A);
            ``(ii) relieve any such entity of the duty to comply with, 
        or of liability under, any Federal or State law regarding the 
        making of a fraudulent conveyance in a transaction described in 
        subparagraph (A) (ii) or (iii); or
            ``(iii) relieve a debtor of the debtor's obligation to 
        comply with the terms of the plan of reorganization or affect 
        the power of the court to exercise its authority under sections 
        1141 and 1142 to compel the debtor to do so.
    ``(4)(A)(i) Subject to subparagraph (B), an injunction under 
paragraph (1) shall be valid and enforceable against all persons and 
governmental units that it addresses.
    ``(ii) Notwithstanding the provisions of section 524(e), such an 
injunction may bar any action directed against a third party who is 
identifiable from the terms of the injunction (by name or as part of an 
identifiable group) and is alleged to be directly or indirectly liable 
for the conduct of, claims against, or demands on the debtor by reason 
of--
            ``(I) the party's ownership of a financial interest in the 
        debtor, a past or present affiliate of the debtor, or a 
        predecessor in interest of the debtor;
            ``(II) the party's involvement in the management of the 
        debtor or a predecessor in interest of the debtor, or service 
        as an officer, director or employee of the debtor or a related 
        party;
            ``(III) the party's provision of insurance to the debtor or 
        a related party; or
            ``(IV) the party's involvement in a transaction affecting 
        the corporate structure or financial condition of the debtor or 
        a related party, including, but not limited to--
                    ``(aa) involvement in providing financing (debt or 
                equity), or advice to a person or entity involved in 
                such a transaction; or
                    ``(bb) acquiring or selling a financial interest in 
                an entity as part of such a transaction.
    ``(iii) As used in subparagraph (A), the term `related party' 
means--
            ``(I) a past or present affiliate of the debtor;
            ``(II) a predecessor in interest of the debtor; or
            ``(III) any person or entity that owned a financial 
        interest in--
                    ``(aa) the debtor;
                    ``(bb) a past or present affiliate of the debtor; 
                or
                    ``(cc) a predecessor interest in the debtor.
    ``(B) With respect to a demand (including a demand directed against 
a third party described in subparagraph (a)(ii)) that is made 
subsequent to the confirmation of a plan against any person or entity 
that is the subject of an injunction issued under paragraph (1), the 
injunction shall be valid and enforceable if, as part of the 
proceedings leading to its issuance, the court appointed a legal 
representative for the purpose of protecting the rights of persons that 
might subsequently assert such a demand.
    ``(5) In this subsection, the term `demand' means a demand for 
payment, present or future, that--
            ``(A) was not a claim during the proceedings leading to the 
        confirmation of a plan of reorganization;
            ``(B) arises out of the same or similar conduct or events 
        that gave rise to the claims addressed by the injunction issued 
        under paragraph (1); and
            ``(C) pursuant to the plan, is to be paid by a trust 
        described in paragraph (2)(B)(i).
    ``(6) Paragraph (3)(A)(i) does not bar an action taken by or at the 
direction of an appellate court on appeal of an injunction issued under 
paragraph (1) or of the order of confirmation that relates to the 
injunction.
    ``(7) This subsection applies to any injunction of the nature 
described in paragraph (1)(B) in effect, and any trust of the nature 
described in paragraph (2)(B) in existence, on or after the date of 
enactment of this subsection.
    ``(8) This subsection does not affect the operation of section 1144 
or the power of the district court to refer a proceeding under section 
157 of title 28 or any reference of a proceeding made prior to the date 
of enactment of this subsection.
    ``(9) Nothing in subsection (g) shall affect the court's authority 
to issue an injunction (including an injunction that requires claims 
and demands to be presented for payment solely to a trust or any other 
type of court approved settlement vehicle) which is entered pursuant to 
an order approving a plan of reorganization.''.
    (b) Settlement of Claims and Demands for Payment.--Section 105 of 
title 11, United States Code, is amended by adding at the end the 
following:
    ``(d) A court may issue an injunction that requires claims and 
demands to be presented for payment solely to a trust or other vehicle 
that is established for the purpose of settling such claims and demands 
and is approved by the court and entered into pursuant to an order 
approving a plan of reorganization.''.

SEC. 112. AUTHORITY OF BANKRUPTCY JUDGES TO CONDUCT JURY TRIALS IN 
              CIVIL PROCEEDINGS.

    Section 157(c) of title 28, United States Code, is amended by 
adding at the end the following:
    ``(3) If the right to a jury trial applies in a proceeding that may 
be heard under paragraph (1) or (2) of this subsection by a bankruptcy 
judge, the bankruptcy judge may conduct the jury trial, and may if 
specially designated to exercise such jurisdiction by the district and 
with the consent of all the parties.''.

SEC. 113. SOVEREIGN IMMUNITY.

    Section 106 of title 11, United States Code, is amended to read as 
follows:
``Sec. 106. Waiver of sovereign immunity
    ``(a) Notwithstanding an assertion of sovereign immunity, except as 
provided in subsection (d)--
            ``(1) all provisions of this title shall apply to 
        governmental units;
            ``(2) the court may hear and determine any issue arising 
        with respect to the application of such provisions to 
        governmental units; and
            ``(3) the court may issue and enforce any order, process, 
        or judgment against a governmental unit, including an order or 
        judgment awarding a money recovery, to the same extent as 
        against any other entity.
    ``(b) A governmental unit is deemed to have waived sovereign 
immunity with respect to a claim against such governmental unit that is 
property of the estate and that arose out of the same transaction or 
occurrence out of which the claim of such governmental unit arose.
    ``(c) Notwithstanding any assertion of sovereign immunity by a 
governmental unit, there shall be offset against a claim or interest of 
a governmental unit any claim against such governmental unit that is 
property of the estate.
    ``(d) Except as provided in subsections (b) and (c), a governmental 
unit may assert sovereign immunity with respect to a claim of the 
estate against such governmental unit only if such claim--
            ``(1) is not a tax claim or related to a tax claim subject 
        to determination under section 505; and
            ``(2)(A) is a claim of the debtor against such governmental 
        unit that arose before the commencement of the case and became 
        property of the estate only under paragraph (1) or (2) of 
        section 541(a); or
            ``(B) arises under nonbankruptcy law after the commencement 
        of the case from the operation of the business of the 
        debtor.''.

                 TITLE II--COMMERCIAL BANKRUPTCY ISSUES

SEC. 201. AIRCRAFT EQUIPMENT AND VESSELS; ROLLING STOCK EQUIPMENT.

    (a) Amendment of Section 1110.--Section 1110 of title 11, United 
States Code, is amended to read as follows:
``Sec. 1110. Aircraft equipment and vessels
    ``(a)(1) The right of a secured party with a security interest in 
equipment described in paragraph (2) 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 is not affected by section 362 or 363 or by any power of the 
court to enjoin the taking of possession unless--
            ``(A) before the date that is 60 days after the date of the 
        order for relief under this chapter, the trustee, subject to 
        the court's approval, agrees to perform all obligations of the 
        debtor that become due on or after the date of the order 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), 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; and
                    ``(ii) that occurs after the date of the order 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.
    ``(2) Equipment is described in this paragraph if it is--
            ``(A) 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 is a citizen of the United 
        States (as defined in 40102 of title 49) holding an air carrier 
        operating certificate issued by the Secretary of Transportation 
        pursuant to chapter 447 of title 49 for aircraft capable of 
        carrying 10 or more individuals; or
            ``(B) 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 holds a certificate of public convenience and 
        necessity or permit issued by the Interstate Commerce 
        Commission.
    ``(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) With respect to equipment first placed in service on or prior 
to the date of enactment of this subsection, 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.''.
    (b) Amendment of Section 1168.--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 is 
not affected by section 362 or 363 or by any power of the court to 
enjoin the taking of possession, unless--
            ``(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 that become due on or after the date of commencement 
        of the case 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), 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; and
                    ``(ii) that occurs or becomes an event of default 
                after the date of commencement of the case is cured 
                before the later of--
                            ``(I) the date that is 30 days after the 
                        date of the default or event of default; or
                            ``(II) the expiration of such 60-day 
                        period.
    ``(2) Equipment is described in this paragraph if it is rolling 
stock equipment or accessories used on such equipment, including 
superstructures and racks, that is subject to a security interest 
granted by, leased to, or conditionally sold to the debtor.
    ``(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) With respect to equipment first placed in service on or prior 
to the date of enactment of this subsection, 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.
    ``(d) With respect to equipment first placed in service after the 
date of enactment of this subsection, for purposes of this section, the 
term `rolling stock equipment' includes rolling stock equipment that is 
substantially rebuilt and accessories used on such equipment.''.

SEC. 202. LIMITATION ON LIABILITY OF NON-INSIDER TRANSFEREE FOR AVOIDED 
              TRANSFER.

    Section 550 of title 11, United States Code, is amended--
            (1) by redesignating subsections (c), (d), and (e) as 
        subsections (d), (e), and (f), respectively, and
            (2) by inserting after subsection (b) the following:
    ``(c) If a transfer made between ninety days and one year before 
the filing of the petition--
            ``(1) is avoided under section 547(b) of this title; and
            ``(2) was made for the benefit of a creditor that at the 
        time of such transfer was an insider;
the trustee may not recover under subsection (a) from a transferee that 
is not an insider.''.

SEC. 203. PERFECTION OF PURCHASE-MONEY SECURITY INTEREST.

    Section 547(c)(3)(B) of title 11, United States Code, is amended by 
striking ``10'' and inserting ``20''.

SEC. 204. CONTINUED PERFECTION.

    (a) Automatic Stay.--Section 362(b)(3) of title 11, United States 
Code, is amended by inserting ``, or to maintain or continue the 
perfection of,'' after ``to perfect''.
    (b) Limitations on Avoiding Powers.--Section 546(b) of title 11, 
United States Code, is amended to read as follows:
    ``(b)(1) The rights and powers of a trustee under sections 544, 
545, and 549 of this title are subject to any generally applicable law 
that--
            ``(A) permits perfection of an interest in property to be 
        effective against an entity that acquires rights in such 
        property before the date of perfection; or
            ``(B) provides for the maintenance or continuation of 
        perfection of an interest in property to be effective against 
        an entity that acquires rights in such property before the date 
        on which action is taken to effect such maintenance or 
        continuation.
    ``(2) If--
            ``(A) a law described in paragraph (1) requires seizure of 
        such property or commencement of an action to accomplish such 
        perfection, or maintenance or continuation of perfection of an 
        interest in property; and
            ``(B) such property has not been seized or an action has 
        not been commenced before the date of the filing of the 
        petition;
such interest in such property shall be perfected, or perfection of 
such interest shall be maintained or continued, by notice within the 
time fixed by such law for such seizure or such commencement.''.

SEC. 205. REJECTION OF UNEXPIRED LEASES OF REAL PROPERTY OR TIMESHARE 
              INTERESTS.

    (a) Amendment to Section 365.--Section 365(h) of title 11, United 
States Code, is amended to read as follows:
    ``(h)(1)(A) If the trustee rejects an unexpired lease of real 
property under which the debtor is the lessor and--
            ``(i) if the rejection by the trustee amounts to such a 
        breach as would entitle the lessee to treat such lease as 
        terminated by virtue of its terms, applicable nonbankruptcy 
        law, or any agreement made by the lessee, then the lessee under 
        such lease may treat such lease as terminated by the rejection; 
        or
            ``(ii) if the term of such lease has commenced, the lessee 
        may retain its rights under such lease (including rights such 
        as those relating to the amount and timing of payment of rent 
        and other amounts payable by the lessee and any right of use, 
        possession, quiet enjoyment, subletting, assignment, or 
        hypothecation) that are in or appurtenant to the real property 
        for the balance of the term of such lease and for any renewal 
        or extension of such rights are enforceable under applicable 
        nonbankruptcy law.
    ``(B) If the lessee retains its rights under subparagraph (A)(ii), 
the lessee may offset against the rent reserved under such lease for 
the balance of the term after the date of the rejection of such lease 
and for the term of any renewal or extension of such lease, the value 
of any damage caused by the nonperformance after the date of such 
rejection, of any obligation of the debtor under such lease, but the 
lessee shall not have any other right against the estate or the debtor 
on account of any damage occurring after such date caused by such 
nonperformance.
    ``(C) The rejection of a lease of real property in a shopping 
center with respect to which the lessee elects to retain its rights 
under subparagraph (A)(ii) does not affect the enforceability under 
applicable nonbankruptcy law of any provision in the lease pertaining 
to radius, location, use, exclusivity, or tenant mix or balance.
    ``(D) In this paragraph, `lessee' includes any successor, assign, 
or mortgagee permitted under the terms of such lease.
    ``(2)(A) If the trustee rejects a timeshare interest under a 
timeshare plan under which the debtor is the timeshare interest seller 
and--
            ``(i) if the rejection amounts to such a breach as would 
        entitle the timeshare interest purchaser to treat the timeshare 
        plan as terminated under its terms, applicable nonbankruptcy 
        law, or any agreement made by timeshare interest purchaser, the 
        timeshare interest purchaser under the timeshare plan may treat 
        the timeshare plan as terminated by such rejection; or
            ``(ii) if the term of such timeshare interest has 
        commenced, then the timeshare interest purchaser may retain its 
        rights in such timeshare interest for the balance of such term 
        and for any term of renewal or extension of such timeshare 
        interest to the extent that such rights are enforceable under 
        applicable nonbankruptcy law.
    ``(B) If the timeshare interest purchaser retains its rights under 
subparagraph (A), such timeshare interest purchaser may offset against 
the moneys due for such timeshare interest for the balance of the term 
after the date of the rejection of such timeshare interest, and the 
term of any renewal or extension of such timeshare interest, the value 
of any damage caused by the nonperformance after the date of such 
rejection, of any obligation of the debtor under such timeshare plan, 
but the timeshare interest purchaser shall not have any right against 
the estate or the debtor on account of any damage occurring after such 
date caused by such nonperformance.''.
    (b) Technical Amendment.--Section 553(b)(1) of title 11, United 
States Code, is amended by striking ``365(h)(2)'' and inserting 
``365(h)''.

SEC. 206. CONTENTS OF PLAN.

    Section 1123(b) of title 11, United States Code, is amended--
            (1) in paragraph (4) by striking ``and'' at the end,
            (2) by redesignating paragraph (5) as paragraph (6), and
            (3) by inserting after paragraph (4) the following:
            ``(5) in a case in which the debtor is a small business, 
        modify the rights of holders of secured claims, except that--
                    ``(A) the rights of a holder of a claim secured 
                only by a security interest in real property that is 
                the debtor's principal residence may not be modified; 
                and
                    ``(B) notwithstanding section 506(a), the rights of 
                the holder of the most senior security interest in real 
                property that is the debtor's principal residence may 
                not be modified to reduce the secured claim to a value 
                that is less than the value of the allowed claim; 
                and''.

SEC. 207. PRIORITY FOR INDEPENDENT SALES REPRESENTATIVES.

    Section 507(a)(3) of title 11, United States Code, is amended to 
read as follows:
            ``(3) Third, allowed unsecured claims, but only to the 
        extent of $2,000 for each individual or corporation, as the 
        case may be, earned within 90 days before the date of the 
        filing of the petition or the date of the cessation of the 
        debtor's business, whichever occurs first, for--
                    ``(A) wages, salaries, or commissions, including 
                vacation, severance, and sick leave pay earned by an 
                individual; or
                    ``(B) sales commissions earned by an individual or 
                by a corporation with only 1 employee, acting as an 
                independent contractor in the sale of goods or services 
                for the debtor in the ordinary course of the debtor's 
                business if, and only if, during the 12 months 
                preceding that date, at least 75 percent of the amount 
                that the individual or corporation earned by acting as 
                an independent contractor in the sale of goods or 
                services was earned from the debtor;''.

SEC. 208. EXCLUSION FROM THE ESTATE OF INTERESTS IN LIQUID AND GASEOUS 
              HYDROCARBONS TRANSFERRED BY THE DEBTOR PURSUANT TO 
              PRODUCTION PAYMENT AGREEMENTS.

    (a) Definition.--Section 101 of title 11, United States Code, is 
amended--
            (1) by inserting after paragraph (42) the following:
            ``(42A) `production payment' means a payment (in cash or in 
        kind)--
                    ``(A) contingent on the production of a liquid or 
                gaseous hydrocarbon from particular real property; and
                    ``(B) attributable to part of a specified volume, 
                or part of a specified value, of the liquid or gaseous 
                hydrocarbon produced from such property, and determined 
                without regard to production costs.''.
    (b) Property of the Estate.--Section 541(b)(4) of title 11, United 
States Code, is amended--
            (1) in subparagraph (A) by striking ``(A)'' and inserting 
        ``(A)(i)'',
            (2) in subparagraph (B)--
                    (A) by striking ``(B)'' and inserting ``(ii),''
                    (B) by striking ``such interest'' and inserting 
                ``the interest referred to in clause (i)'', and
                    (C) by striking the period at the end and inserting 
                ``; or'', and
            (3) by adding at the end the following:
                    ``(B)(i) the debtor has transferred or has agreed 
                to transfer such interest pursuant to a written 
                agreement to make production payments to a person who 
                does not participate in the production of the liquid or 
                gaseous hydrocarbon with respect to which such payments 
                are made; and
                    ``(ii) but for the operation of this paragraph, the 
                estate could include the interest referred to in clause 
                (i) only by virtue of section 365 of this title.''.

SEC. 209. SELLER'S RIGHT TO RECLAIM GOODS.

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

SEC. 210. INVESTMENT OF MONEY OF THE ESTATE.

    Section 345(b) of title 11, United States Code, is amended--
            (1) in paragraph (2) by striking the period at the end and 
        inserting a semicolon, and
            (2) by adding ``unless the court for cause orders 
        otherwise.'' at the end of such subsection.

SEC. 211. ELECTION OF TRUSTEE UNDER CHAPTER 11.

    (a) Election Authorized.--Section 1104 of title 11 of the United 
States Code is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively, and
            (2) by inserting after subsection (a) the following:
    ``(b) Except as provided in section 1163 of this title, on the 
request of a party in interest made not later than 30 days after the 
court orders the appointment of a trustee under subsection (a), the 
United States trustee shall convene a meeting of creditors for the 
purpose of electing one disinterested person to serve as trustee in the 
case. The election of a trustee shall be conducted in the manner 
provided in subsections (a), (b), and (c) of section 702 of this 
title.''.
    (b) Conforming Amendment.--Section 1106(b) of title 11, United 
States Code, is amended by striking ``1104(c)'' and inserting 
``1104(d)''.

SEC. 212. RIGHTS OF PARTNERSHIP TRUSTEE AGAINST GENERAL PARTNERS.

    Section 723(a) of title 11, United States Code, is amended by 
striking ``for the full amount of the deficiency'' and inserting ``to 
the extent that under applicable nonbankruptcy law such general partner 
is personally liable for the debts of the partnership''.

SEC. 213. EXCLUSION FROM THE ESTATE OF CERTAIN ACCOUNTS AND CHATTEL 
              PAPER.

    Section 541(b) of title 11, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (3) by striking ``or'' at the end,
                    (B) in paragraph (4) by striking the period at the 
                end and inserting ``; or'', and
                    (C) by adding at the end the following:
            ``(5) any interest of the debtor in any account or chattel 
        paper to the extent that--
                    ``(A) such interest was actually sold under 
                applicable nonbankruptcy law by the debtor before the 
                date of commencement of the case, but without taking 
                into consideration whether the purchaser filed a 
                financing statement before such date; and
                    ``(B) but for the operation, the estate could 
                include such interest only by virtue of section 542 of 
                this title.'', and
            (2) by adding at the end the following:
    ``(e) For purposes of this section--
            ``(1) `account' means any right to payment for goods sold 
        or leased or for services rendered that is not evidence by an 
        instrument or chattel paper, whether or not it has been earned 
        by performance, and includes all right to payment earned or 
        unearned under a charter or other contract involving the use or 
        hire of a vessel and all rights incident to such charter or 
        such contract; and
            ``(2) `chattel paper' means--
                    ``(A) a writing or writings that evidence both a 
                monetary obligation and a security interest in or lease 
                of specific goods (excluding a charter or other 
                contract involving the use or hire of a vessel); or
                    ``(B) if a transaction described in subparagraph 
                (A) is evidenced both by such a security agreement or a 
                lease and by an instrument or a series of instruments, 
                the group of these writings taken together.''.

SEC. 214. TIMELY FILING OF CLAIMS, INTERESTS, AND ADMINSTRATIVE EXPENSE 
              REQUESTS.

    (a) Objection to Claims Filed Untimely.--Section 502(b) of title 
11, United States Code, is amended--
            (1) in paragraph (7) by striking ``or'' at the end,
            (2) in paragraph (8) by striking the period at the end and 
        inserting ``; or'', and
            (3) by adding at the end the following:
            ``(9) such claim is not timely filed, except to the extent 
        tardily filing permitted under paragraph (2) or (3) of section 
        726(a).''.
    (b) Filing of Request for Administrative Expenses.--Section 503(a) 
of title 11, United States Code, is amended--
            (1) by inserting ``timely'' after ``may'', and
            (2) by inserting ``, or may tardily file such request if 
        permitted by the court for cause'' before the period at the 
        end.

SEC. 215. PROTECTION OF SECURITY INTEREST IN POST-PETITION RENTS.

    Section 552(b) of title 11, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)'',
            (2) by striking ``rents,'' each place it appears, and
            (3) by adding at the end the following:
    ``(2) Except as provided in sections 363, 506(c), 522, 544, 545, 
547, and 548 of this title, if the debtor and an entity entered into a 
security agreement before the commencement of the case and if the 
security interest created by such security agreement extends to 
property of the debtor acquired before the commencement of the case and 
to rents of such property, then such security interest extends to such 
rents acquired by the estate after the commencement of the case to the 
extent provided in such security agreement, except to any extent that 
the court, after notice and a hearing and based on the equities of the 
case, orders otherwise.''.

SEC. 216. AMENDMENT TO DEFINITION OF SWAP AGREEMENT.

    Section 101(55)(A) of title 11, United States Code, is amended by 
inserting ``spot foreign exchange agreement,'' after ``forward foreign 
exchange agreement''.

                 TITLE III--CONSUMER BANKRUPTCY ISSUES

SEC. 301. PERIOD FOR CURING DEFAULT RELATING TO PRINCIPAL RESIDENCE.

    Section 1322 of title 11, United States Code, is amended--
            (1) by redesignating subsection (c) as subsection (d), and
            (2) by inserting after subsection (b) the following:
    ``(c) Notwithstanding subsection (b)(2) and applicable 
nonbankruptcy law--
            ``(1) a default with respect to, or that gave rise to, a 
        lien on the debtor's principal residence may be cured under 
        paragraph (3) or (5) of subsection (b) until such residence is 
        sold under such lien and in accordance with applicable 
        nonbankruptcy law; and
            ``(2) in a case in which the last payment on the original 
        payment schedule for a claim secured only by a security 
        interest in real property that is the debtor's principal 
        residence is due before the date on which the final payment 
        under the plan is due, the plan may provide for the payment of 
        the claim as modified pursuant to 1325(a)(5).''.

SEC. 302. NONDISCHARGEABILITY OF FINE UNDER CHAPTER 13.

    Section 1328(a)(3) of title 11, United States Code, is amended by 
inserting ``, or a fine (other than a fine imposed under subchapter C 
of chapter 227 of title 18 of the United States Code) to the extent 
such fine exceeds $500, '' after ``restitution''.

SEC. 303. IMPAIRMENT OF EXEMPTIONS.

    Section 522(f) of title 11, United States Code, is amended--
            (1) by inserting ``(1)'' before ``Notwithstanding'',
            (2) by redesignating paragraph (1) as subparagraph (A),
            (3) by redesignating paragraph (2) as subparagraph (B) and 
        subparagraphs (A), (B), and (C) of that paragraph as clauses 
        (i), (ii), and (iii), and
            (4) by adding at the end the following:
            ``(2)(A) For the purposes of this subsection, a lien shall 
        be considered to impair an exemption to the extent that the sum 
        of--
                    ``(i) the lien,
                    ``(ii) all other liens on the property that are 
                equal or greater in seniority to the lien; and
                    ``(iii) the amount of the exemption that the debtor 
                could claim if there were no liens on the property,
        exceeds the value that the debtor's interest in the property 
        would have in the absence of any liens.
            ``(B) In the case of a property subject to more than 1 
        lien, a lien that has been avoided shall not be considered in 
        making the calculation under subparagraph (A) with respect to 
        other liens.''.

SEC. 304. PROTECTION OF CHILD SUPPORT AND ALIMONY.

    (a) Relief From Automatic Stay.--Section 362(b)(2) of title 11, 
United States Code, is amended to read as follows:
            ``(2) under subsection (a) of this section--
                    ``(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 alimony, maintenance, or support; 
                        or
                    ``(B) of the collection of alimony, maintenance, or 
                support from property that is not property of the 
                estate;''.
    (b) Priority of Claims.--Section 507(a) of title 11, United States 
Code, is amended--
            (1) in paragraph (8) by striking ``(8) Eighth'' and 
        inserting ``(9) Ninth'',
            (2) in paragraph (7) by striking ``(7) Seventh'' and 
        inserting ``(8) Eighth'', and
            (3) by inserting after paragraph (6) the following:
            ``(7) Seventh, allowed claims for debts to a spouse, former 
        spouse, or child of the debtor, for alimony to, maintenance 
        for, or support of such spouse or child, in connection with a 
        separation agreement, divorce decree or other order of a court 
        of record, determination made in accordance with State or 
        territorial law by a governmental unit, or property settlement 
        agreement, but not to the extent that such debt--
                    ``(A) is assigned to another entity, voluntarily, 
                by operation of law, or otherwise; or
                    ``(B) includes a liability designated as alimony, 
                maintenance, or support, unless such liability is 
                actually in the nature of alimony, maintenance or 
                support.''.
    (c) Protection of Liens.--Section 522(f)(1) of title 11, United 
States Code, is amended by inserting after ``lien'' the following:
        ``, other than a judicial lien that secures a debt--
                    ``(A) to a spouse, former spouse, or child of the 
                debtor, for alimony to, maintenance for, or support of 
                such spouse or child, in connection with a separation 
                agreement, divorce decree or other order of a court of 
                record, determination made in accordance with State or 
                territorial law by a governmental unit, or property 
                settlement agreement; and
                    ``(B) to the extent that such debt--
                            ``(i) is not assigned to another entity, 
                        voluntarily, by operation of law, or otherwise; 
                        and
                            ``(ii) includes a liability designated as 
                        alimony, maintenance, or support, unless such 
                        liability is actually in the nature of alimony, 
                        maintenance or support.''.
    (d) Exception to Discharge.--Section 523 of Title 11, United States 
Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (11) by striking ``or'' at the 
                end,
                    (B) in paragraph (12) by inserting ``or'' after the 
                semicolon at the end, and
                    (C) by adding at the end the following:
            ``(13) assumed or incurred by the debtor in the course of a 
        divorce or separation or in connection with a separation 
        agreement, divorce decree or other order of a court of record, 
        a determination made in accordance with State or territorial 
        law by a governmental unit, or property settlement agreement, 
        unless--
                    ``(A) the debtor does not have the ability to pay 
                such debt from income or property of the debtor not 
                reasonably necessary to be expended for the maintenance 
                or support of the debtor or a dependent of the debtor 
                and, if the debtor is engaged in a business, for the 
                payment of expenditures necessary for the continuation, 
                preservation, and operation of such business; or
                    ``(B) discharging such debt would result in a 
                benefit to the debtor that outweighs the detrimental 
                consequences to a spouse, former spouse, or child of 
                the debtor.'', and
            (2) in subsection (c)(1) by striking ``or (6)'' each place 
        it appears and inserting ``(6), or (13)''.
    (e) Protection Against Trustee Avoidance.--Section 547(c) of title 
11, United States Code, is amended--
            (1) in paragraph (6) by striking ``or'' at the end,
            (2) by redesignating paragraph (7) as paragraph (8), and
            (3) by inserting after paragraph (6) the following:
            ``(7) to the extent such transfer was a bona fide payment 
        of a debt to a spouse, former spouse, or child of the debtor, 
        for alimony to, maintenance for, or support of such spouse or 
        child, in connection with a separation agreement, divorce 
        decree or other order of a court of record, determination made 
        in accordance with State or territorial law by a governmental 
        unit, or property settlement agreement, but not to the extent 
        that such debt--
                    ``(A) is assigned to another entity, voluntarily, 
                by operation of law, or otherwise; or
                    ``(B) includes a liability designated as alimony, 
                maintenance, or support, unless such liability is 
                actually in the nature of alimony, maintenance or 
                support.''.
    (f) Appearance Before Court.--Child support creditors or their 
representatives shall be permitted to appear and intervene without 
charge, and without meeting any special local court rule requirement 
for attorney appearances, in any bankruptcy proceeding in any 
bankruptcy court or district court of the United States if such 
representatives file a form in such court that contains information 
detailing the child support debt, its status, and other 
characteristics.
    (g) Conforming Amendments--Title 11 of the United States Code is 
amended--
            (1) in section 502(i) by striking ``507(a)(7)'' and 
        inserting ``507(a)(8)'',
            (2) in section 503(b)(1)(B)(i) by striking ``507(a)(7)'' 
        and inserting ``507(a)(8)'',
            (3) in section 523(a)(1)(A) by striking ``507(a)(7)'' and 
        inserting ``507(a)(8)'',
            (4) in section 724(b)(2) by striking ``or 507(a)(6)'' and 
        inserting ``507(a)(6), or 507(a)(7)'',
            (5) in section 726(b) by striking ``or (7)'' and inserting 
        ``, (7), or (8)'',
            (6) in section 1123(a)(1) by striking ``507(a)(7)'' and 
        inserting ``507(a)(8)'',
            (7) in section 1129(a)(9)--
                    (i) in subparagraph (B) by striking ``or 
                507(a)(6)'' and inserting ``, 507(a)(6), or 
                507(a)(7)'', and
                    (ii) in subparagraph (C) by striking ``507(a)(7)'' 
                and inserting ``507(a)(8)''.

SEC. 305. PRESERVATION OF HOME MORTGAGE LIENS.

    Section 1322(b)(2) of title 11, United States Code, is amended--
            (1) by striking ``, other than a claim secured only by a 
        security interest in real property that is the debtor's 
        principal residence,'', and
            (2) by striking the semicolon at the end and inserting the 
        following:
        ``, except that--
                    ``(A) the rights of a holder of a claim secured 
                only by a security interest in real property that is 
                the debtor's principal residence may not be modified; 
                and
                    ``(B) notwithstanding section 506(a), the rights of 
                the holder of the most senior security interest in real 
                property that is the debtor's principal residence may 
                not be modified to reduce the secured claim to a value 
                that is less than the value of the allowed claim;''.

SEC. 306. INTEREST ON INTEREST.

    (a) Chapter 11.--Section 1123 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(d) Notwithstanding subsection (a) of this section and sections 
506(b), 1129(a)(7), and 1129(b) of this title, if it is proposed in a 
plan to cure a default, the amount necessary to cure the default, shall 
be determined in accordance with the underlying agreement and 
applicable nonbankruptcy law.''.
    (b) Chapter 12.--Section 1222 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(d) Notwithstanding subsection (b)(2) of this section and 
sections 506(b) and 1225(a)(5) of this title, if it is proposed in a 
plan to cure a default, the amount necessary to cure the default, shall 
be determined in accordance with the underlying agreement and 
applicable nonbankruptcy law.''.
    (c) Chapter 13.--Section 1322 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(f) Notwithstanding subsection (b)(2) of this section and 
sections 506(b) and 1325(a)(5) of this title, if it is proposed in a 
plan to cure a default, the amount necessary to cure the default, shall 
be determined in accordance with the underlying agreement and 
applicable nonbankruptcy law.''.

SEC. 307. EXCEPTION TO DISCHARGE.

    Section 523(a)(2) of title 11, United States Code, is amended--
            (1) by striking ``$500'' and inserting ``$1,000'',
            (2) by striking ``forty'' and inserting ``60'', and
            (3) by striking ``twenty'' and inserting ``60''.

SEC. 308. PAYMENTS.

    Section 1326(a)(2) of title 11, United States Code, is amended in 
the second sentence by striking the period and inserting ``as soon as 
practicable.''.

                TITLE IV--GOVERNMENTAL BANKRUPTCY ISSUES

SEC. 401. EXCEPTION FROM AUTOMATIC STAY FOR POST-PETITION PROPERTY 
              TAXES.

    Section 362(b) of title 11, United States Code, is amended by 
inserting after paragraph (16) the following:
            ``(18) under subsection (a) of this section, of the 
        creation or perfection of a statutory lien for an ad valorem 
        property tax imposed by the District of Columbia, or a 
        political subdivision of a State, if such tax comes due after 
        the filing of the petition.''.

SEC. 402. MUNICIPAL BANKRUPTCY.

    Section 109(c)(2) of title 11, United States Code, is amended by 
striking ``generally authorized'' and inserting ``specifically 
authorized, in its capacity as a municipality or by name,''.

                     TITLE V--TECHNICAL CORRECTIONS

SEC. 501. AMENDMENTS TO BANKRUPTCY DEFINITIONS, NECESSITATED BY 
              ENACTMENT OF PUBLIC LAW 101-647.

    (a) Alphabetizing and Redesignating Definitions.--Section 101 of 
title 11 of the United States Code, as amended by section 208, is 
amended--
            (1) by redesignating paragraph (3) as paragraph (21),
            (2) by redesignating paragraph (4) and subsequent 
        paragraphs through paragraph (21) as paragraphs (3) through 
        (20), respectively,
            (3) by transferring paragraph (21), as so redesignated by 
        paragraph (1), so as to insert such paragraph after paragraph 
        (20),
            (4) by redesignating paragraphs (54) through (57), as in 
        effect immediately before the enactment of Public Law 101-647, 
        as paragraphs (61), (62), (36), and (40), respectively,
            (5) in paragraph (61), as so redesignated by paragraph (4), 
        by inserting ``and'' after the semicolon at the end,
            (6) in paragraph (62), as so redesignated by paragraph (4), 
        by striking the semicolon at the end and inserting a period,
            (7) in paragraph (36), as so redesignated by paragraph (4), 
        by striking ``and'' at the end,
            (8) in paragraph (40), as so redesignated by paragraph (4), 
        by striking the period at the end and inserting a semicolon,
            (9) by redesignating paragraphs (52) through (57), as so 
        redesignated by section 2522(e) of Public Law 101-647, as 
        paragraphs (55) through (60), respectively,
            (10) by transferring paragraph (39) so as to insert such 
        paragraph before paragraph (55), as so redesignated by 
        paragraph (9) of this subsection,
            (11) by redesignating paragraph (39) as paragraph (54),
            (12) by redesignating successively numbered paragraphs (40) 
        through (51) as paragraphs (41) through (53), respectively,
            (13) by transferring paragraph (40), as so redesignated by 
        paragraph (4) of this subsection, so as to insert such 
        paragraph before paragraph (41), as so redesignated by 
        paragraph (12) this subsection,
            (14) by redesignating paragraph (36) and subsequent 
        paragraphs through paragraph (38) as paragraphs (37) through 
        (39), respectively, and
            (15) by transferring paragraph (36), as so redesignated by 
        paragraph (4) of this subsection, so as to insert such 
        paragraph after paragraph (35).
    (b) Conforming and Related Amendments to Title 11 of the United 
States Code, Based on Redesignated Definitions.--(1) Section 101 of 
title 11 of the United States Code is amended--
            (A) in paragraph (5), as so redesignated by subsection (a), 
        by striking ``section 761(9)'' and inserting ``section 761'',
            (B) in paragraph (22) by striking ``section 741(7)'' and 
        inserting ``section 741'',
            (C) in paragraph (35)(B) by striking ``paragraphs (3)'' and 
        inserting ``paragraphs (21)'',
            (D) in paragraph (50)(B)(ii), as so redesignated by 
        subsection (a), by striking ``section 761(13)'' and inserting 
        ``section 761'', and
            (E) in paragraph (56)(A), as so redesignated by subsection 
        (a), by striking ``section 741(2)'' and inserting ``section 
        741''.
    (2) Section 362(b) of title 11, United States Code, is amended--
            (A) in paragraph (6)--
                    (i) by striking ``section 761(4)'' and inserting 
                ``section 761'',
                    (ii) by striking ``section 741(7)'' and inserting 
                ``section 741'',
                    (iii) by striking ``section 101(34), 741(5), or 
                761(15)'' and inserting ``section 101, 741, or 761'', 
                and
                    (iv) by striking ``section 101(35) or 741(8)'' and 
                inserting ``section 101 or 741'', and
            (B) in paragraph (7)--
                    (i) by striking ``section 741(5) or 761(15)'' and 
                inserting ``section 741 or 761'', and
                    (ii) by striking ``section 741(8)'' and inserting 
                ``section 741''.
    (3) Section 507(a)(5) of title 11, United States Code, is amended--
            (A) by striking ``section 557(b)(1)'' and inserting 
        ``section 557(b)'', and
            (B) by striking ``section 557(b)(2)'' and inserting 
        ``section 557(b)''.
    (4) Section 546 of title 11, United States Code, is amended--
            (A) in subsection (e)--
                    (i) by striking ``section 101(34), 741(5), or 
                761(15)'' and inserting ``section 101, 741, or 761'', 
                and
                    (ii) by striking ``section 101(35) or 741(8)'' and 
                inserting ``section 101 or 741'', and
            (B) in subsection (f)--
                    (i) by striking ``section 741(5) or 761(15)'' and 
                inserting ``section 741 or 761'', and
                    (ii) by striking ``section 741(8)'' and inserting 
                ``section 741''.
    (5) Section 548(d)(2) of title 11, United States Code, is amended--
            (A) in subparagraph (B)--
                    (i) by striking ``section 101(34), 741(5) or 
                761(15)'' and inserting ``section 101, 741, or 761'', 
                and
                    (ii) by striking ``section 101(35) or 741(8)'' and 
                inserting ``section 101 or 741'', and
            (B) in subparagraph (C)--
                    (i) by striking ``section 741(5) or 761(15)'' and 
                inserting ``section 741 or 761'', and
                    (ii) by striking ``section 741(8)'' and inserting 
                ``section 741''.
    (6) Section 555 of title 11, United States Code, is amended by 
striking ``section 741(7)'' and inserting ``section 741 of this 
title''.
    (7) Section 556 of title 11, United States Code, is amended by 
striking ``section 761(4)'' and inserting ``section 761 of this 
title''.
    (c) Conforming Amendments to Other Laws Based on Redesignated 
Definitions.--(1) Section 207(c)(8)(D) of the Federal Credit Union Act 
(12 U.S.C. 1787(c)(8)(D)) is amended--
            (A) in clause (ii)(I) by striking ``section 741(7)'' and 
        inserting ``section 741'',
            (B) in clause (iii) by striking ``section 101(24)'' and 
        inserting ``section 101'',
            (C) in clause (iv)(I) by striking ``section 101(41)'' and 
        inserting ``section 101'', and
            (D) in clause (v) by striking ``section 101(50)'' and 
        inserting ``section 101''.
    (2) Section 11(e)(8)(D) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(e)(8)(D)) is amended--
            (A) in clause (ii)(I) by striking ``section 741(7)'' and 
        inserting ``section 741'',
            (B) in clause (iii) by striking ``section 761(4)'' and 
        inserting ``section 761'',
            (C) in clause (iv) by striking ``section 101(24)'' and 
        inserting ``section 101'',
            (D) in clause (v)(I) by striking ``section 101(41)'' and 
        inserting ``section 101'', and
            (E) in clause (viii) by striking ``section 101(50)'' and 
        inserting ``section 101''.
    (d) Other Technical Amendments.--Title 11 of the United States Code 
is amended--
            (1) in section 101--
                    (A) in paragraph (33)--
                            (i) in subparagraph (A) by striking ``(12 
                        U.S.C. 1813(u))'', and
                            (ii) in subparagraph (B) by striking ``(12 
                        U.S.C. 1786(r))'',
                    (B) in paragraph (34) by striking ``(12 U.S.C. 
                1752(7))'',
                    (C) in paragraph (35)(A) by striking ``(12 U.S.C. 
                1813(c)(2))'',
                    (D) in paragraph (50), as so redesignated by 
                subsection (a)--
                            (i) by striking ``(15 U.S.C. 78q-1)'', and
                            (ii) by striking ``(15 U.S.C. 78c(12))'',
                    (E) in paragraph (51), as so redesignated by 
                subsection (a)--
                            (i) in subparagraph (A)(xii)--
                                    (I) by striking ``(15 U.S.C. 77a et 
                                seq.)'', and
                                    (II) by striking ``(15 U.S.C. 
                                77c(b))'', and
                            (ii) in subparagraph (B)(vi) by striking 
                        ``(15 U.S.C. 77c(b))'', and
                    (F) in paragraph (59), as so redesignated by 
                subsection (a), by striking the period at the end and 
                inserting a semicolon,
            (2) in section 109(b)(2) by striking ``(12 U.S.C. 
        1813(h))'',
            (3) in section 322(a) by striking ``1302, or 1202'' and 
        inserting ``1202, or 1302'',
            (4) in section 346--
                    (A) in subsection (a) by striking ``Internal 
                Revenue Code of 1954 (26 U.S.C. 1 et seq.)'' and 
                inserting ``Internal Revenue Code of 1986'', and
                    (B) in subsection (g)(1)(C) by striking ``Internal 
                Revenue Code of 1954 (26 U.S.C. 371)'' and inserting 
                ``Internal Revenue Code of 1986'',
            (5) in section 348--
                    (A) in subsection (b) by striking ``1301(a), 
                1305(a), 1201(a), 1221, and 1228(a)'' and inserting 
                ``1201(a), 1221, 1228(a), 1301(a), and 1305(a)'', and
                    (B) in subsections (b), (c), (d), and (e) by 
                striking ``1307, or 1208'' each place it appears and 
                inserting ``1208, or 1307'',
            (6) in section 349(a) by striking ``109(f)'' and inserting 
        ``109(g)'',
            (7) in section 362--
                    (A) in subsection (a) by striking ``(15 U.S.C. 
                78eee(a)(3))'', and
                    (B) in subsection (b)--
                            (i) by striking ``(15 U.S.C. 
                        78eee(a)(3))'',
                            (ii) in paragraph (10) by striking ``or'' 
                        at the end,
                            (iii) in paragraph (12)--
                                    (I) by striking ``the Ship Mortgage 
                                Act, 1920 (46 App. U.S.C. 911 et 
                                seq.)'' and inserting ``section 31325 
                                of title 46'',
                                    (II) by striking ``(46 App. U.S.C. 
                                911 et seq.)'', and
                                    (III) by striking ``(46 App. U.S.C. 
                                1117 and 1271 et seq., respectively)'',
                            (iv) in paragraph (13)--
                                    (I) by striking ``the Ship Mortgage 
                                Act, 1920 (46 App. U.S.C. 911 et 
                                seq.)'' each place it appears and 
                                inserting ``section 31325 of title 
                                46'',
                                    (II) by striking ``(46 App. U.S.C. 
                                1117 and 1271 et seq., respectively)'', 
                                and
                                    (III) by striking ``or'' at the 
                                end,
                            (v) in paragraph (15), as added by Public 
                        Law 101-508, by striking ``or'' at the end,
                            (vi) in paragraph (16), as added by Public 
                        Law 101-508--
                                    (I) by striking ``(20 U.S.C. 1001 
                                et seq.)'', and
                                    (II) by striking the period at the 
                                end and inserting a semicolon, and
                            (vii) in paragraph (14), as added by Public 
                        Law 101-311--
                                    (I) by striking the period at the 
                                end and inserting ``; or'',
                                    (II) by redesignating such 
                                paragraph as paragraph (17), and
                                    (III) by transferring such 
                                paragraph so as to insert such 
                                paragraph after paragraph (16),
            (8) in section 363--
                    (A) in subsection (b)(2) by striking ``(15 U.S.C. 
                18a)'', and
                    (B) in subsection (c)(1) by striking ``1304, 1203, 
                or 1204'' and inserting ``1203, 1204, or 1304'',
            (9) in section 364--
                    (A) in subsection (a) by striking ``1304, 1203, or 
                1204'' and inserting ``1203, 1204, or 1304'', and
                    (B) in subsection (f)--
                            (i) by striking ``(15 U.S.C. 77e)'', and
                            (ii) by striking ``(15 U.S.C. 77aaa et 
                        seq.)'',
            (10) in section 365--
                    (A) in subsection (d)(6)(C) by striking ``the 
                Federal Aviation Act of 1958 (49 U.S.C. 1301)'' and 
                inserting ``section 40102 of title 49'',
                    (B) in subparagraphs (A) and (B) of subsection 
                (g)(2) by striking ``1307, or 1208'' each place it 
                appears and inserting ``1208, or 1307'',
                    (C) in subsection (n)(1)(B) by striking ``to to'' 
                and inserting ``to'',
                    (D) in subsection (o) by striking ``the Federal'' 
                the first place it appears and all that follows through 
                ``successors,'', and inserting ``a Federal depository 
                institutions regulatory agency (or predecessor to such 
                agency)'', and
                    (E) by striking subsection (p),
            (11) in section 507--
                    (A) in subsection (a)(8) by striking ``the 
                Federal'' the first place it appears and all that 
                follows through ``successors,'', and inserting ``a 
                Federal depository institutions regulatory agency (or 
                predecessor to such agency)'', and
                    (B) in subsection (d) by striking ``or (a)(6)'' and 
                inserting ``(a)(6), (a)(7), (a)(8), or (a)(9)'',
            (12) in section 522(d)(10)(E)(iii)--
                    (A) by striking ``408, or 409'' the first place it 
                appears and inserting ``or 408'', and
                    (B) by striking ``Internal Revenue Code of 1954 (26 
                U.S.C. 401(a), 403(a), 403(b), 408, or 409)'' and 
                inserting ``Internal Revenue Code of 1986'',
            (13) in section 523--
                    (A) in subsection (a)--
                            (i) by striking ``1141,,'' and inserting 
                        ``1141,'',
                            (ii) in paragraph (2)(C) by striking ``(15 
                        U.S.C. 1601 et seq.)'', and
                            (iii) in paragraph (12) by striking the 
                        semicolon at the end and inserting a period,
                    (B) in subsection (b)--
                            (i) by striking ``(20 U.S.C. 1087-3)'', and
                            (ii) by striking ``(42 U.S.C. 294f)'', and
                    (C) in subsection (e) by striking ``depository 
                institution or insured credit union'' and inserting 
                ``insured depository institution'',
            (14) in section 524--
                    (A) in subsection (a)(3) by striking ``or 
                1328(c)(1)'' and inserting ``, 1228(a)(1), or 
                1328(a)(1)'',
                    (B) in subsection (c)(4) by striking ``recission'' 
                and inserting ``rescission'', and
                    (C) in subsection (d)(1)(B)(ii) by adding ``and'' 
                at the end,
            (15) in section 525(a)--
                    (A) by striking ``(7 U.S.C. 499a-499s)'',
                    (B) by striking ``(7 U.S.C. 181-229)'', and
                    (C) by striking ``(57 Stat. 422; 7 U.S.C. 204)'',
            (16) in section 542(e) by striking ``to to'' and inserting 
        ``to'',
            (17) in section 543(d)(1) by striking ``section,'' and 
        inserting ``section'',
            (18) in section 546(a)(1) by striking ``1302, or 1202'' and 
        inserting ``1202, or 1302'',
            (19) in section 549(b) inserting ``the trustee may not 
        avoid under subsection (a) of this section'' after 
        ``involuntary case,'',
            (20) in section 553--
                    (A) in subsection (a)(1) by striking ``other than 
                under section 502(b)(3) of this title'', and
                    (B) in subsection (b)(1) by striking 
                ``362(b)(14),,'' and inserting ``362(b)(14),'',
            (21) in section 555 by striking ``(15 U.S.C. 78aaa et 
        seq.)'',
            (22) in section 559 by striking ``(15 U.S.C. 78aaa et 
        seq.)'',
            (23) in section 706(a) by striking ``1307, or 1208'' and 
        inserting ``1208, or 1307'',
            (24) in section 724(d) by striking ``Internal Revenue Code 
        of 1954 (26 U.S.C. 6323)'' and inserting ``Internal Revenue 
        Code of 1986'',
            (25) in section 726(b)--
                    (A) inserting a comma after ``section 1112'', and
                    (B) by inserting ``1009,'' after ``chapter under 
                section'',
            (26) in section 741(4)(A)(iii) by striking ``(15 U.S.C. 78a 
        et seq.)'',
            (27) in section 742 by striking ``(15 U.S.C. 78aaa et 
        seq.)'',
            (28) in section 743 by striking ``342(a)'' and inserting 
        ``342'',
            (29) in section 745(c) by striking ``Internal Revenue Code 
        of 1954 (26 U.S.C. 1 et seq.)'' and inserting ``Internal 
        Revenue Code of 1986'',
            (30) in section 761--
                    (A) in paragraph (1) by striking ``(7 U.S.C. 1 et 
                seq.)'',
                    (B) in paragraph (5) by striking ``(7 U.S.C. 
                6c(b))'', and
                    (C) in paragraph (13) by striking ``(7 U.S.C. 
                23)'',
            (31) in section 1104(c) inserting a comma after 
        ``interest'',
            (32) in section 1123(a)(1) inserting a comma after 
        ``title'' the last place it appears,
            (33) in section 1129--
                    (A) in subsection (a)--
                            (i) in paragraph (4) by striking the 
                        semicolon at the end and inserting a period, 
                        and
                            (ii) in paragraph (12) inserting ``of title 
                        28'' after ``section 1930'', and
                    (B) in subsection (d) by striking ``(15 U.S.C. 
                77e)'',
            (34) in section 1145--
                    (A) in subsection (a)--
                            (i) by striking ``does'' and inserting 
                        ``do'',
                            (ii) by striking ``(15 U.S.C. 77e)'', and
                            (iii) in paragraph (3)(B)(i) by striking 
                        ``(15 U.S.C. 78m or 78o(d))'',
                    (B) in subsection (b)(1) by striking ``(15 U.S.C. 
                77b(11))'', and
                    (C) in subsection (d) by striking ``(15 U.S.C. 
                77aaa et seq.)'',
            (35) in section 1166(2) by striking ``(45 U.S.C. 791(b))'',
            (36) in section 1167--
                    (A) by striking ``(45 U.S.C. 151 et seq.)'', and
                    (B) by striking ``(45 U.S.C. 156)'',
            (37) in section 1226(b)(2)--
                    (A) by striking ``1202(d)'' and inserting 
                ``1202(c)'', and
                    (B) by striking ``1202(e)'' and inserting 
                ``1202(d)'',
            (38) in section 1302(b)(3) by striking ``and'' at the end, 
        and
            (39) in section 1328(a)--
                    (A) in paragraph (2) by striking ``(5) or (8)'' and 
                inserting ``(5), (8), or (9)'', and
                    (B) by striking the last paragraph (3), and
            (40) in the table of chapters by striking the item relating 
        to chapter 15.

SEC. 502. TITLE 28 OF THE UNITED STATES CODE.

    Section 586(a)(3) of title 28, United States Code, is amended in 
the matter preceding subparagraph (A) by inserting ``12,'' after 
``11,''.

   TITLE VI--SEVERABILITY; EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

SEC. 601. SEVERABILITY.

    If any provision of this Act or amendment made by this Act or the 
application of such provision or amendment to any person or 
circumstance is held to be unconstitutional, the remaining provisions 
of and amendments made by this Act and the application of such other 
provisions and amendments to any person or circumstance shall not be 
affected thereby.

SEC. 602. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as provided in subsection (b), this Act 
shall take effect on the date of the enactment of this Act.
    (b) Application of Amendments.--(1) Except as provided in paragraph 
(2), the amendments made by this Act shall not apply with respect to 
cases commenced under title 11 of the United States Code before the 
date of the enactment of this Act.
    (2)(A) Paragraph (1) shall not apply with respect to the amendment 
made by section 111(a) .
    (B) The amendment made by section 113 shall apply with respect to 
cases commenced under title 11 of the United States Code before, on, 
and after the date of the enactment of this Act.
    (C) Section 1110 of title 11, United States Code, as amended by 
section 201 of this Act, shall apply with respect to any lease, as 
defined in such section 1110(c) as so amended, entered into in 
connection with a settlement of any proceeding in any case pending 
under title 11 of the United States Code on the date of the enactment 
of this Act.
    (D) The amendments made by section 306 shall apply only to 
agreements entered into after the date of enactment of this Act.
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