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[House Report 106-126]
[From the U.S. Government Publishing Office]

106th Congress                                                   Report
  1st Session           HOUSE OF REPRESENTATIVES                106-126

=======================================================================

 
PROVIDING FOR THE CONSIDERATION OF H.R. 833, THE BANKRUPTCY REFORM ACT 
                                OF 1999

                                _______
                                

 May 4, 1999.--Referred to the House Calendar and ordered to be printed

                                _______

   Mr. Sessions, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 158]

    The Committee on Rules, having had under consideration 
House Resolution 158, by a non-record vote report the same to 
the House with the recommendation that the resolution be 
adopted.

                  summary of provisions of resolution

    The resolution provides for the consideration of H.R. 833, 
the ``Bankruptcy Reform Act of 1999,'' under a structured rule. 
The rule provides one hour of general debate divided equally 
between the chairman and ranking minority member of the 
Committee on the Judiciary.
    The rule waives points of order against consideration of 
the bill for failure to comply with section 302 (prohibiting 
consideration of legislation which exceeds a committee's 
allocation of new spending authority) or section 311 
(prohibiting consideration of legislation that would cause the 
total level of new budget authority or outlays in the most 
recent budget resolution to be exceeded or cause revenues to be 
less) of the Congressional Budget Act.
    The rule provides that it shall be in order to consider as 
an original bill for the purpose of amendment under the five-
minute rule the amendment in the nature of a substitute 
recommended by the Committee on the Judiciary now printed in 
the bill. The rule waives all points or order against the 
committee amendment in the nature of a substitute and 
amendments thereto.
    The rule makes in order only those amendments printed in 
this report. The rule provides that amendments made in order 
may be offered only in the order printed in this report, may be 
offered only by a Member designated in this report, shall be 
considered as read, shall be debatable for the time specified 
in this report equally divided and controlled by the proponent 
and an opponent, shall not be subject to amendment, and shall 
not be subject to a demand for division of the question in the 
House or in the Committee of the Whole.
    The rule allows for the Chairman of the Committee of the 
Whole to postpone votes during consideration of the bill, and 
to reduce voting time to five minutes on a postponed question 
if the vote follows a fifteen minute vote. Finally, the rule 
provides one motion to recommit with or without instructions.
    The waiver of all points of order includes section 302 of 
the Congressional Budget Act because section 128 of the 
committee amendment in the nature of a substitute creates 
several new judgeships and extends several existing judgeships. 
The waiver of all points of order also includes section 311 of 
the Congressional Budget Act because section 148 of the 
committee amendment in the nature of a substitute waives 
certain filing fees for indigent filers and section 608 waives 
certain fees for small businesses. Both the underlying 
legislation and the Nadler substitute require similar waivers.

                            committee votes

    Pursuant to clause 3(b) of House rule XIII the results of 
each record vote on an amendment or motion to report, together 
with the names of those voting for and against, are printed 
below:

Rules Committee Record Vote No. 20

    Date: May 4, 1999.
    Measure: H.R. 833, Bankruptcy Reform Act of 1999.
    Motion by: Mr. Moakley.
    Summary of motion: To make in order Amendment No. 28 
offered by Mr. Delahunt to add a new section 154 to the bill 
disallowing claims in bankruptcy for consumer credit card debts 
if, at the time of the solicitation to open the account, the 
debtor was not informed in writing in a clear and conspicuous 
manner of 9 specific factors.
    Results: Defeated 3 to 8.
    Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; 
Hastings--Nay; Myrick--Nay; Sessions--Nay; Reynolds--Nay; 
Moakley--Yea; Frost--Yea; Hall--Yea; Dreier--Nay.

Rules Committee Record Vote No. 21

    Date: May 4, 1999.
    Measure: H.R. 833, Bankruptcy Reform Act of 1999.
    Motion by: Mr. Moakley.
    Summary of motion: To make in order Amendment No. 10 
offered by Mr. Barrett of Wisconsin which caps liability for 
the unauthorized use of a debit card at $50, the same level as 
credit cards.
    Results: Defeated 3 to 8.
    Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; 
Hastings--Nay; Myrick--Nay; Sessions--Nay; Reynolds--Nay; 
Moakley--Yea; Frost--Yea; Hall--Yea; Dreier--Nay.

Rules Committee Record Vote No. 22

    Date: May 4, 1999.
    Measure: H.R. 833, Bankruptcy Reform Act of 1999.
    Motion by: Mr. Moakley.
    Summary of motion: To make in order Amendment No. 2 offered 
by Mr. Scott which exempts veterans benefits from the 
calculations of monthly income for the purpose of determining 
income available to creditors.
    Results: Defeated 4 to 7.
    Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; 
Hastings--Nay; Myrick--Nay; Sessions--Yea; Reynolds--Nay; 
Moakley--Yea; Frost--Yea; Hall--Yea; Dreier--Nay.

Rules Committee Record Vote No. 23

    Date: May 4, 1999.
    Measure: H.R. 833, Bankruptcy Reform Act of 1999.
    Motion by: Mr. Frost.
    Summary of motion: To make in order Amendment No. 21 
offered by Mr. Nadler and Ms. Jackson-Lee which excludes from 
the bill's definition of a debtor's current monthly income, 
which is used to determine that debtor's ability to repay 
debts, and payments received in satisfaction of a domestic 
support obligation.
    Results: Defeated 3 to 8.
    Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; 
Hastings--Nay; Myrick--Nay; Sessions--Nay; Reynolds--Nay; 
Moakley--Yea; Frost--Yea; Hall--Yea; Dreier--Nay.

Rules Committee Record Vote No. 24

    Date: May 4, 1999.
    Measure: H.R. 833, Bankruptcy Reform Act of 1999.
    Motion by: Mr. Frost.
    Summary of motion: To make in order Amendment No. 24 
offered by Mr. Conyers which excludes from the bill's 
definition of current monthly income any benefits received 
under the Social Security Act, in addition to excluding payment 
to victims of war crimes and crimes against humanity (as the 
bill already does).
    Results: Defeated 4 to 8.
    Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; Diaz-
Balart--Nay; Hastings--Nay; Myrick--Nay; Sessions--Yea; 
Reynolds--Nay; Moakley--Yea; Frost--Yea; Hall--Yea; Dreier--
Nay.

summary of amendments made in order to h.r. 833--bankruptcy reform act 
                                of 1999

    Gekas (10 Minutes). Manager's Amendment. The Amendment (1) 
makes various technical changes; (2) makes a clarifying 
revision to the type of expenses that a debtor may claim 
pursuant to the IRS Other Necessary Expenses categories (the 
revision specifies that the debtor must claim actual monthly 
expenses for the specified categories); (3) revises certain 
provisions so that they conform with the Bankruptcy Code's 
other provisions pertaining to an award of attorneys' fees; (4) 
clarifies that the chapter 7 trustee must file a statement as 
to whether or not a case should be presumed to be an abuse in 
every case administered by such trustee; (5) revised chapter 
13's requirements for confirmation to require the court to find 
that the debtor filed the chapter 13 case in good faith; (6) 
revises the title of section 134 of the bill; (7) deletes 
Section 215

(claims relating to insurance deposits in cases ancillary to 
foreign proceedings) as this provision is included in title XI 
of the bill, as revised by this Amendment; (8) adds a new 
provision to describe to certain procedural matters pertaining 
to appeals, as amended by the bill; (9) adds provisions with 
respect to the treatment of certain funds subject to state 
insurance law or regulation for the benefit of claim holders in 
the United States; (10) repeals sections of the Bankruptcy Code 
that are no longer necessary' and (11) amends a statutory 
cross-reference so that it better comports with the drafters' 
intent, which is to include in the definition of a ``financial 
participant'' certain securities contracts, forward contracts, 
repurchase agreements and swap agreements in addition to 
certain commodity contracts.
    Moran (VA)/Dooley/Ackerman (20 Minutes). Amends the Truth 
in Lending Act (TILA) to require Credit Card Issuers to make 
disclosures regarding minimum monthly payments. It would also 
ensure that consumers have all the information they need in 
order to avoid the imposition of late fees and requires that 
Worldwide Web-Based Credit Card Solicitations are subject to 
the same ``Schumer Box'' disclosures as all other credit card 
solicitations.
    Moran (VA) (20 minutes). Inserts a disclosure requiring 
that a debt relief agency providing bankruptcy assistance to an 
assisted person shall provide a written notice within three 
business days after the first date on which a debt relief 
agency first offers to provide any bankruptcy assistance 
services to an assisted person, advising assisted persons of 
their rights and responsibilities of disclosure. Requires that 
an attorney or bankruptcy petition preparer give an assisted 
person a written contract specifying what the attorney or 
preparer will do and the cost. Inserts a ``debtor's bill of 
rights.'' Requires that a debt relief agency disclose in any 
advertisement of bankruptcy assistance services or of the 
benefits of bankruptcy that the services or benefits are with 
respect to proceedings under this title of the Bankruptcy Code.
    Velazquez (20 minutes). To allow the expansion of the 
credit committee membership under chapter 11 bankruptcies to 
include a small business when it is determined that the small 
business' claims are disproportionately large to its gross 
revenues. And to ensure better access to information for those 
small businesses not included in the committee by allowing the 
committee to be open for comment and subject to additional 
reports or disclosures.
    Graham (20 minutes). The bankruptcy code prohibits the 
discharge of federally made, guaranteed or insured education 
loans or education loans made by non-profit institutions. This 
amendment would extend the prohibition from discharge to all 
qualified education loans. Includes exceptions for undue 
hardships.
    Dooley (20 minutes). Requires the Federal Trade Commission 
to set standards to be used by the United States Trustees in 
approving credit counseling agencies, programs described in 
section 109(h) and instructional courses concerning personal 
financial management.
    Conyers (20 minutes). Waives the provision of chapter 11 
relating to small business debtors or to single asset real 
estate in cases where the application of those provisions could 
result in the loss of 5 or more jobs.
    Watt (20 minutes). Replaces the provisions of H.R. 833 
which require that all bankruptcy filers file their tax returns 
with the court and instead require that a debtor file tax 
returns with the court at the request of any party in interest.
    Whitfield (20 minutes). Establishes a mechanism whereby 
bankruptcy trustees may receive compensation when they transfer 
cases from chapter 7 to chapter 13. Under this provision, the 
level of compensation would be determined by the bankruptcy 
judge.
    Hyde/Conyers (40 minutes). Deletes the reported bill's 
application of modified IRS expense allowances for determining 
permissible projected living expenses of debtors and their 
families during the life of chapter 13 plans. In its place, the 
amendment adopts a standard that allows only ``reasonably 
necessary'' expenses and directs the Executive office of United 
States Trustees to issue guidelines that will assist in making 
assessments of whether expenses qualify. The amendment does not 
affect other provisions of section 102 that are designed to 
limit the availability of an immediate fresh start in chapter 
7, channel significant numbers of chapter 7 debtors into five-
year chapter 13 repayment plans, and generate greater 
recoveries from creditors.
    Nadler/Conyers/Meehan/Berman (60 minutes). Substitute. 
Provides a realistic means test which takes into account the 
debtor's actual income and expenses. Does not omit expenses a 
debtor would have to pay in a chapter 13 plan from the test 
used to determine whether the debtor must file for chapter 13. 
Does not rely on IRS guidelines to determine how much a debtor 
should live on. Allows adequate judicial discretion to 
determine whether the debtor appropriately belongs in chapter 
7. Avoids using a debtor's ability to repay a specified 
percentage of unsecured non-priority debts which is easy for 
debtors to manipulate. Holds both debtor and creditor attorneys 
to strict application of Rule 9011's penalties for misconduct 
or bringing a frivolous case. Contains a safe harbor for 
families below the median national income. Provides a balance 
by requiring credit card lenders to behave responsibly and to 
provide borrowers with the information they need to avoid 
bankruptcy. Prevents some of the more highly publicized cases 
in which creditors illegally enforced debts after bankruptcy 
through ``reaffirmation agreements.'' Deletes a section which 
would have denied victims in these cases a legal remedy by 
prohibiting class action suits. Eliminates new grounds for 
making credit card debts non-dischargeable, but leaves intact 
current law which makes prebankruptcy debt run-up and 
fraudulently incurred debt non-dischargeable. Eliminates a 
provision which would have allowed landlords to evict debtors 
without obtaining the permission of the bankruptcy court. 
Removes a provision which allows secured creditors to treat the 
unsecured part of some loans as secured debt. Modifies the 
child support portions of the bill to take away the special new 
rights over families that state and local governments would 
have obtained in a bankruptcy case. Places families first.
    Texts of amendments made in order:

1. An Amendment To Be Offered by Representative Gekas of Pennsylvania, 
                or a Designee, Debatable for 10 Minutes

  In the table of contents of the bill--
          (1) in the item relating to section 107, strike 
        ``congress'' and insert ``Congress'', and
          (2) in the item relating to section 134, strike 
        ``Giving debtors the ability to keep'' and insert 
        ``Allowing a debtor to retain''.
  Page 9, line 1, strike ``applicable'' and insert ``actual''.
  Page 9, beginning on line 1, strike ``specifically listed'' 
and insert ``specified''.
  Page 10, line 3, strike ``proceeding brought'' and insert 
``motion filed''.
  Beginning on page 10, strike line 22 and all that follows 
through line 5 on page 11.
  Page 11, line 6, strike ``(D)'' and insert ``(C)''.
  Page 12, beginning on line 11, strike ``in prosecuting the 
motion''.
  Page 16, line 13, insert ``or not'' after ``whether''.
  Page 17, after line 16, insert the following (and make such 
technical and conforming changes as may be appropriate):
  (d) Debtor's Duties.--Section 521(a)(1)(B) of title 11, 
United States Code, as amended by section 603, is amended--
          (1) in clause (v) by striking ``and'' at the end;
          (2) in clause (vi) by adding ``and'' at the end;
          (3) by inserting the following after clause (vi):
                          ``(vii) a statement of the debtor's 
                        current monthly income, and the 
                        calculations which determine whether a 
                        presumption arises under section 
                        707(b)(2)(A)(i), showing how each 
                        amount is calculated.''.
  (e) Bankruptcy Forms.--Section 2075 of title 28, United 
States Code, is amended by adding the following at the end of 
the 1st paragraph:
``The bankruptcy rules promulgated under this section shall 
prescribe a form for the statement referred to in section 
521(a)(1)(B)(vii) of title 11, United States Code, and may 
provide general rules on the content of such statement.''.
  (f) Chapter 13.--Section 1325(a) of title 11, United States 
Code, is amended--
          (1) in paragraph (5) by striking ``and'' at the end;
          (2) in paragraph (6) by striking the period and 
        inserting ``; and'';
          (3) by inserting the following after paragraph (6):
          ``(7) the action of the debtor in filing the petition 
        under this chapter was in good faith.''.
  Page 19, line 15, strike ``this title'' and insert ``title 
11, United States Code''.
  Page 22, lines 17 and 20, insert ``case or'' after ``a''.
  Page 23, lines 9 and 12, strike ``proceeding'' and insert 
``case''.
  Page 77, strike line 1, and insert the following:

SEC. 134. ALLOWING THE DEBTOR TO RETAIN LEASED

  Beginning on page 114, strike line 1 and all that follows 
through line 5 on page 115 (and make such technical and 
conforming changes as may be appropriate).
  Page 91, line 15, insert ``(a) Amendment.--'' before 
``Section''.
  Page 92, beginning on line 13, strike ``expressly'' and all 
that follows through ``this paragraph'', and insert ``provides 
by statute''.
  Page 92, after line 15, insert the following:
  (b) Application of Amendment to Individual States.--(1) 
Section 522(p) of title 11, United States Code, as added by 
subsection (a), shall not apply with respect to a State before 
the end of the first regular session of the State legislature 
following the date of the enactment of this Act.
  (2) For purposes of paragraph (1), the term ``State'' has the 
meaning given such term in section 101 of title 11, United 
States Code.
  Page 115, beginning on line 20, strike ``(excluding'' and all 
that follows through ``secret)''.
  Page 116, line 7, insert ``(excluding executory contracts 
that transfer a right or interest under a filed or issued 
patent, copyright, trademark, trade dress, or trade secret)'' 
after ``contract''.
  Page 117, line 15, strike ``365(b)(1)(A)'' and insert 
``365(b)(2)''.
  Page 174, line 2, insert ``(a) Appeals.--'' before ``Title''.
  Page 175, line 9, strike ``(b)'' and insert ``(5)''.
  Page 175, indent lines 9 through 11 2 ems to the right.
  Page 175, line 12, strike ``(c)(1)'' and insert ``(b)(1)''.
  Page 175, line 17, strike ``(1)-(4)'' and insert ``(1) 
through (5)''.
  Page 175, line 24, strike ``subsection (b)'' and insert 
``paragraph (1)''
  Page 176, after line 6, insert the following:
  (b) Procedural Rules.--Until rules of practice and procedure 
are promulgated or amended pursuant to the Rules Enabling Act 
(28 U.S.C. sections 2071-77) to govern appeals to a bankruptcy 
appellate panel or to a court of appeals exercising 
jurisdiction pursuant to section 1293 of title 28, as added by 
this Act, the following shall apply:
          (1) A notice of appeal with respect to an appeal from 
        an order or judgment of a bankruptcy court to a court 
        of appeals or a bankruptcy appellate panel must be 
        filed within the time provided in Rule 8002 of the 
        Federal Rules of Bankruptcy Procedure.
          (2) An appeal to a bankruptcy appellate panel shall 
        be taken in the manner provided in Part VIIIof the 
Federal Rules of Bankruptcy Procedure and local court rules.
          (3) An appeal from an order or judgment of a 
        bankruptcy court directly to a court of appeals shall 
        be governed by the rules of practice and procedure that 
        apply to a civil appeal from a judgment of a district 
        court exercising original jurisdiction, as if the 
        bankruptcy court were a district court, except as 
        provided in paragraph (1) regarding the time to appeal 
        or by local court rules.
          (4) An appeal to a court of appeals from a decision, 
        judgment, order, or decree entered by a bankruptcy 
        appellate panel exercising appellate jurisdiction shall 
        be taken in the manner provided by Rule 6(b) of the 
        Federal Rules of Appellate Procedure.
  (c) Repealer.--(1) Section 158 of title 28, United States 
Code, is repealed.
  (2) The table of sections of chapter 6 of title 28, United 
States Code, is amended by striking the item relating to 
section 158.
  Page 208, line 9, insert ``, other than a foreign insurance 
company,'' after ``entity''.
  Page 208, after line 20, insert the following:
  ``(d) The court may not grant relief under this chapter with 
respect to any deposit, escrow, trust fund, or other security 
required or permitted under any applicable State insurance law 
or regulation for the benefit of claim holders in the United 
States.
  Page 231, strike line 13, and insert the following:

``SEC. 902. OTHER AMENDMENTS TO TITLES 11 AND 28 OF THE UNITED STATES 
                    CODE.

  Page 233, after line 11, insert the following (and make such 
technical and conforming changes as may be appropriate):
  (d) Other Sections of Title 11.--(1) Section 109(b)(3) of 
title 11, United States Code, is amended to read as follows:
          ``(3)(A) a foreign insurance company, engaged in such 
        business in the United States; or
  ``(B) a foreign bank, savings bank, cooperative bank, savings 
and loan association, building and loan association, or credit 
union, which has a branch or agency (as defined in section 3101 
of title 12, United States Code) in the United States.''.
  (2) Section 303(k) of title 11, United States Code, is 
repealed.
  (3)(A) Section 304 of title 11, United States Code, is 
repealed.
  (B) The table of sections of chapter 3 of title 11, United 
States Code, is amended by striking the item relating to 
section 304.
  (C) Section 306 of title 11, United States Code, is amended 
by striking ``, 304,'' each place it appears.
  Page 279, beginning on line 1, strike ``that is described in 
section 561(a)(2)'' and insert ``described in paragraph (1), 
(2), (3), (4), or (5) of section 561(a)''.
                              ----------                              

 2. An Amendment To Be Offered by Representative Moran of Virginia, or 
 Representative Dooley of California, or a Designee, Debatable for 20 
                                Minutes

  Page 34, strike lines 7 through 25 and insert the following:
                  ``(C) the following examples:
                          ``(i) if the average account balance 
                        under a creditor's open-end consumer 
                        credit plan, taken as an average of the 
                        account balances for all consumer 
                        accounts under that open-end consumer 
                        credit plan, is $1,000 or less, two 
                        examples, based on an annual percentage 
                        rate and method for determining minimum 
                        periodic payments recently in effect 
                        for that creditor, and based on 
                        outstanding balances of $250 and $500, 
                        showing the estimated minimum periodic 
                        payments, and the estimated period of 
                        time it would take to repay those 
                        outstanding balances of $250 and $500, 
                        if the consumer paid only the minimum 
                        periodic payment on each monthly or 
                        periodic statement and obtained no 
                        additional extensions of credit; or
                          ``(ii) if the average account balance 
                        under a creditor's open-end consumer 
                        credit plan, taken as an average of the 
                        account balances for all consumer 
                        accounts under that open-end consumer 
                        credit plan, is more than $1,000, three 
                        examples, based on an annual percentage 
                        rate and method for determining minimum 
                        periodic payments recently in effect 
                        for that creditor, and outstanding 
                        balances of $1,000, $1,500 and $2,000, 
                        showing the estimated minimum periodic 
                        payments, and the estimated period of 
                        time it would take to repay those 
                        outstanding balances of $1,000, $1,500 
                        and $2,000 if the consumer paid only 
                        the minimum periodic payment on each 
                        monthly or periodic statement and 
                        obtained no additional extensions of 
                        credit.
          ``(10) With respect to one billing cycle per calendar 
        year, the creditor shall transmit to each consumer to 
        whom the creditor is required to transmit a statement 
        pursuant to subsection (b) for such billing cycle the 
        following information:
                  ``(A) the following statement: `The minimum 
                payment amount shown on your billing statement 
                is the smallest payment which you can make in 
                order to keep the account in good standing. 
                This payment option is offered as a convenience 
                and you may make larger payments at any time. 
                Making only the minimum payment each month will 
                increase the amount of interest you pay and the 
                length of time it takes to repay your 
                outstanding balance.';
                  ``(B) if the plan provides that the consumer 
                will be permitted to forgo making a minimum 
                payment during a specified billing cycle, a 
                statement, if applicable, that if the consumer 
                chooses to forgo making the minimum payment, 
                finance charges will continue to accrue;
                  ``(C) an example, based on an annual 
                percentage rate and method for determining 
                minimum periodic payments recently in effect 
                for that creditor, and a $500 outstanding 
                balance, showing the estimated minimum periodic 
                payment, and the estimated period of time it 
                would take to repay the $500 outstanding 
                balance if the consumer paid only the minimum 
                periodic payment on each monthly or periodic 
                statement and obtained no additional extensions 
                of credit; and
                  ``(D) a worksheet prescribed by the Board to 
                assist the consumer in determining the 
                consumer's household income and debt 
                obligations.''.
  Page 35, line 12, strike the close quotation marks and the 
period at the end.
  Page 35, after line 12 insert the following:
          ``(12) the required minimum payment amount 
        represented as a dollar figure.
          ``(13) the date by which or the period within which 
        the required minimum payment must be made.''.
  (c) Disclosures Related to Introductory Rates.--Section 
127(c)(1)(A)(i) of the Truth in Lending Act (15 U.S.C. 
1637(c)(1)(A)(i)) is amended by inserting the following at the 
end of subclause (III):
                          ``(IV) Where the initial rate is 
                        temporary and will expire within a 
                        period of less than 1 year, and is 
                        lower than the ratethat will apply 
after the temporary rate expires--
                                  ``(A) the time period during 
                                which the initial rate will 
                                remain in effect; and
                                  ``(B) the annual percentage 
                                rate that will apply to the 
                                account after the temporary 
                                rate expires, or if that rate 
                                is a variable rate, the fact 
                                that the rate is variable, the 
                                rate at the time of mailing, 
                                and how the rate is determined.
                          ``(V)(A) Subject to subclauses (C) 
                        and (D), where the initial rate may 
                        increase upon the occurrence of one or 
                        more specific events, the following 
                        information:
                                  ``(i) the initial rate and 
                                the increased rate that may 
                                apply;
                                  ``(ii) if the increased rate 
                                is a variable rate, the fact 
                                that the increased rate is 
                                variable, the rate at the time 
                                of mailing, and how the rate is 
                                determined; and
                                  ``(iii) the specific event or 
                                events that may result in 
                                imposing the increased rate.
                          ``(B) At the creditor's option, the 
                        creditor may disclose the period for 
                        which the increased rate will remain in 
                        effect.
                          ``(C) If the increased rate cannot be 
                        determined at the time disclosures are 
                        given, an explanation of the specific 
                        event or events that may result in an 
                        increased rate must be disclosed.
                          ``(D) A creditor is not required to 
                        disclose an increased rate that is 
                        imposed when credit privileges are 
                        permanently terminated.''.
  (d) Internet-Based Credit Card Solicitations.--(1)--Section 
127(c) of the Truth in Lending Act (15 U.S.C. 1637(c)) is 
amended by inserting after paragraph (5) the following:
          ``(6)(A) Any application to open a credit card 
        account for any person under an open-end consumer 
        credit plan, and any solicitation to open such an 
        account without requiring an application, that is made 
        available through the Internet or an interactive 
        computer service, shall disclose the following:
                  ``(i) the information.--
                          ``(I) described in paragraph (1)(A) 
                        in the form required under section 
                        122(c) of this chapter, subject to 
                        subsection (e), and
                          ``(II) described in paragraph (1)(B) 
                        in a clear and conspicuous form, 
                        subject to subsections (e) and (f);
                  ``(ii) a statement, in a conspicuous and 
                prominent location on or with the application 
                or solicitation, that--
                          ``(I) the information is accurate as 
                        of the date the application or 
                        solicitation was posted;
                          ``(II) the information contained in 
                        the application or solicitation is 
                        subject to change after such date;
                          ``(III) the applicant should contact 
                        the creditor for information on any 
                        change in the information presented on 
                        or with the application or solicitation 
                        since it was posted;
                  ``(iii) a clear and conspicuous disclosure of 
                the date the application or solicitation was 
                posted and how frequently the information 
                described in subclause (i) is updated; and
                  ``(iv) a disclosure, in a conspicuous and 
                prominent location on or with the application 
                or solicitation, of a toll-free telephone 
                number or e-mail address at which the applicant 
                may contact the creditor to obtain any change 
                in the information provided on or with the 
                application or solicitation since it was 
                posted.
  ``(B) The disclosures required under subparagraph (A) may be 
contained either:
          ``(i) on the webpage which contains the application 
        or solicitation; or
          ``(ii) on a separate webpage which can be directly 
        accessed using a hypertext link which is contained on 
        the webpage which contains the application or 
        solicitation.
  ``(C) Upon receipt of a request for any of the information 
referred to in subparagraph (A), the creditor or its agent 
shall promptly disclose any change in the information required 
to be disclosed under subparagraph (A).
  ``(D) For purposes of this paragraph (6)--
          ``(i) the term `Internet' means the international 
        computer network of both Federal and non-Federal 
        interoperable packets switched data networks; and
          ``(ii) the term `interactive computer service' means 
        any information service system, or access software 
        provider that provides or enables computer access by 
        multiple users to a computer server, including 
        specifically a service or system that provides access 
        to the Internet and such systems operated or services 
        offered by libraries or educational institutions.''.
  (2) Section 122(c)(1) of the Truth in Lending Act (15 U.S.C. 
1632(c)(1)) is amended by striking ``and (4)(C)(i)(I)'' and 
inserting ``, (4)(C)(i)(I) and (6)(A)(i)(I)''.
                              ----------                              

3. An Amendment To Be Offered by Representative Moran of Virginia, or a 
                   Designee, Debatable for 20 Minutes

  Page 101, after line 9, insert the following (and make such 
technical and conforming changes as may be appropriate):

SEC. 154. DISCLOSURES.

  (a) Disclosures.--Subchapter II of chapter 5 of title 11, 
United States Code, as amended by section 106, is amended by 
adding at the end the following:

``Sec. 527. Disclosures

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

``527. Disclosures.''.

SEC. 155. DEBTOR'S BILL OF RIGHTS.

  Subchapter II of chapter 5 of title 11, United States Code, 
as amended by sections 106 and 154, is amended by adding at the 
end the following:

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

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

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

4. An Amendment To Be Offered by Representative Velazquez of New York, 
                or a Designee, Debatable for 20 Minutes

  Page 109, line 23, insert ``(a) Appointment.--''.
  Page 110, line 4, insert the following before the close 
quotation marks:
The court may expand the membership of a committee to include a 
creditor that is small business if the court determines that 
such creditor holds claims of the kind represented by such 
committee that are, in the aggregate, disproportionately large 
when compared to the annual gross revenue of such creditor.
  Page 110, after line 4, insert the following:
  (b) Information.--Section 1102(b) of title 11, United States 
Code, is amended by adding at the end the following:
  ``(3) A committee appointed under subsection (a) shall 
provide access to information for creditors who hold claims of 
the kind represented by such committee and who are not 
appointed such committee, shall to be open for comment from 
such creditors, and shall be subject to a court order 
compelling additional reports or disclosure to be made to such 
creditors.''
                              ----------                              

    5. An Amendment To Be Offered by Representative Graham of South 
           Carolina, or a Designee, Debatable for 20 Minutes

  Page 119, after line 9, insert the following (and make such 
technical and conforming changes as may be appropriate):
  

SEC. 219. NONDISCHARGEABILITY OF CERTAIN EDUCATIONAL BENEFITS AND 
                    LOANS.

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

 6. An Amendment To Be Offered by Representative Dooley of California, 
                or a Designee, Debatable for 20 Minutes

  Page 124, strike lines 13 through 20, and insert the 
following:
  ``(a) The clerk of each district shall maintain a publicly 
available list of credit counseling agencies and of programs 
described in section 109(h) and instructional courses offered 
by such agencies currently approved by--
          ``(1) the United States Trustee; or
          ``(2) the bankruptcy administrator for the district.
  ``(b) The United States Trustee or bankruptcy administrator 
shall only approve credit counseling agencies which satisfy 
standards set in regulations promulgated by the Federal Trade 
Commission and which are accredited by the Council on 
Accreditation or an equivalent third party nonprofit 
accrediting organization.
  ``(c) The United States Trustee or bankruptcy administrator 
shall only approve programs or courses under subsection (a) if 
they satisfy standards set in regulations promulgated by the 
Executive Office of the United States Trustees. The Executive 
Office of the United States Trustee is authorized to promulgate 
regulations setting such standards.
  ``(d) The Federal Trade Commission shall have authority to 
promulgate regulations setting standards for credit counseling 
agencies for the purposes of subsection (b). Such standards 
shall establish minimum requirements for such agencies with 
respect to providing qualified counselors, safekeeping and 
payment of client funds, disclosure to clients, adequate 
counseling with respect to client credit problems, and such 
other matters as relate to the quality and financial security 
of such programs. Nothing in this provision shall limit the 
authority of the Federal Trade Commission pursuant to the 
Federal Trade Commission Act (15 U.S.C. 45 et seq.).
  ``(e) The United States Trustee or bankruptcy administrator 
may notify the clerk that a credit counseling agency, or a 
program or course, is no longer approved, in which case the 
clerk shall remove it from the list maintained under subsection 
(a).
  ``(2) Regulations.--The Federal Trade Commission and the 
Executive Office of United States Trustees shall promulgate 
regulations pursuant to the power delegated in this section 
within 180 days of the date of the enactment of this Act.''.
  Page 124, line 21, strike ``(2)'' and insert ``(3)''.
                              ----------                              

7. An Amendment To Be Offered by Representative Conyers of Michigan, or 
                  a Designee, Debatable for 20 Minutes

    Page 151, after line 24, insert the following (and make 
such technical and conforming changes as may be appropriate):

SEC. 416. APPLICABILITY OF CERTAIN PROVISIONS.

    The provisions of title 11 of the United States Code 
relating to small business debtors or to single asset real 
estate shall not apply in a case under such title if the 
application of any of such provisions in such case could result 
in the loss of 5 or more jobs.
                              ----------                              

8. An Amendment To Be Offered by Representative Watt of North Carolina, 
                or a Designee, Debatable for 20 Minutes

    Beginning on page 160, strike line 23 and all that follows 
through line 2 on page 161.
    Page 162, strike lines 1 through 15, and insert the 
following (and make such technical and conforming changes as 
may be appropriate):
    ``(f) An individual debtor in a case under chapter 7 or 13 
of this title shall file with the court at the request of any 
party in interest--
    ``(1) all tax returns, including any schedules or 
attachments, with respect to the period from the commencement 
of the case until such time as the case is closed;
    ``(2) at the time filed with the taxing authority, all tax 
returns, including any schedules or attachments, that were not 
filed with the taxing authority when the schedules under 
subsection (a)(1) were filed with respect to the period that is 
3 years before the order of relief;
    ``(3) any amendments to any of the tax returns, including 
schedules or attachments, described in paragraph (1) or (2); 
and
                              ----------                              

9. An Amendment To Be Offered by Representative Whitfield of Kentucky, 
                or a Designee, Debatable for 20 Minutes

  Page 176, after line 24, insert the following:

SEC. 614. COMPENSATING TRUSTEES.

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

 10. An Amendment To Be Offered by Representative Hyde of Illinois, or 
  Representative Conyers of Michigan, or a Designee, Debatable for 40 
                                Minutes

  Page 8, beginning on line 14, strike ``(which'' and all that 
follows through ``104(b))'' on line 19.
  Beginning on page 8, strike line 23, and all that follows 
through line 13 on page 9, and insert the following (and make 
such technical and conforming changes as may be appropriate):
  ``(ii) The debtor's monthly expenses shall be the debtor's 
monthly expenses reasonably necessary to be expended--
          ``(I) for the maintenance or support of the debtor, 
        the dependents of the debtor, and, in a joint case, the 
        spouse of the debtor if the spouse is not otherwise a 
        dependent; and
          ``(II) if the debtor is engaged in business, for the 
        payment of expenditures necessary for the continuation, 
        preservation, and operation of such business.
Notwithstanding any other provision of this clause, the 
debtor's monthly expenses shall not include any payments for 
debts described in clauses (iii) and (iv).
  Page 14, line 15, add close quotation marks and a period at 
the end.
  Beginning on page 14, strike line 16 and all that follows 
through line 3 on page 15.
  Page 101, after line 9, insert the following (and make such 
technical and conforming changes as may be appropriate):

SEC. 154. GUIDELINES FOR ASSESSING INCOME.

  Section 586 of title 28, United States Code, is amended by 
adding at the end the following:
  ``(f) Not later than 1 year after the effective date of this 
subsection, the Director of the Executive Office for United 
States Trustees shall issue guidelines to assist in making 
assessments of whether income is not reasonably necessary to be 
expended by a debtor for the maintenance or support of the 
debtor, the dependents of the debtor, and, in a joint case, the 
spouse of the debtor if the spouse is not otherwise a 
dependent.''.
  Page 153, line 23, insert ``as amended by section 154,'' 
after ``Code,''.
  Page 154, line 3, strike ``(f)'' and insert ``(g)''.
  Page 154, line 5, strike ``(f)(1)(A)'' and insert 
``(g)(1)(A)''.
  Page 156, line 22, strike ``586(f)'' and insert ``586(g)''.
  Page 157, line 4, strike ``586(f)'' and insert ``586(g)''.

11. An Amendment To Be Offered by Representative Nadler of New York, or 
                  a Designee, Debatable for 60 Minutes

  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.

                 TITLE I--CONSUMER BANKRUPTCY PROVISIONS

                   Subtitle A--Needs based bankruptcy

Sec. 101. Conversion.
Sec. 102. Dismissal or conversion.
Sec. 103. Notice of alternatives.
Sec. 104. Debtor financial management training test program.

               Subtitle B--Consumer Bankruptcy Protections

Sec. 105. Definitions.
Sec. 106. Enforcement.
Sec. 107. Sense of the congress.
Sec. 108. Discouraging abusive reaffirmation practices.
Sec. 109. Promotion of alternative dispute resolution.
Sec. 110. Enhanced disclosure for credit extensions secured by a 
          dwelling.
Sec. 111. Dual use debit card.
Sec. 112. Discouraging reckless lending practices.
Sec. 113. Protection of savings earmarked for the postsecondary 
          education of children.
Sec. 114. Effect of discharge.
Sec. 115. Limiting trustee liability.
Sec. 116. Reinforce the fresh start.
Sec. 117. Discouraging bad faith repeat filings.
Sec. 118. Curbing abusive filings.
Sec. 119. Debtor retention of personal property security.
Sec. 120. Relief from the automatic stay when the debtor does not 
          complete intended surrender of consumer debt collateral.
Sec. 121. Giving secured creditors fair treatment in chapter 13.
Sec. 123. Fair valuation of collateral.
Sec. 124. Domiciliary requirements for exemptions.
Sec. 125. Restrictions on certain exempt property obtained through 
          fraud.
Sec. 126. Rolling stock equipment.
Sec. 127. Discharge under chapter 13.
Sec. 128. Bankruptcy judgeships.
Sec. 129. Additional amendments to title 11, United States Code.
Sec. 131. Application of the codebtor stay only when the stay protects 
          the debtor.
Sec. 132. Adequate protection for investors.
Sec. 134. Giving debtors the ability to keep leased personal property by 
          assumption.
Sec. 135. Adequate protection of lessors and purchase money secured 
          creditors.
Sec. 136. Automatic stay.
Sec. 137. Extend period between bankruptcy discharges.
Sec. 139. Priorities for claims for domestic support obligations.
Sec. 142. Nondischargeability of certain debts for alimony, maintenance, 
          and support.
Sec. 143. Continued liability of property.
Sec. 144. Protection of domestic support claims against preferential 
          transfer motions.
Sec. 145. Clarification of meaning of household goods.
Sec. 147. Monetary limitation on certain exempt property.
Sec. 148. Bankruptcy fees.
Sec. 149. Collection of child support.
Sec. 150. Excluding employee benefit plan participant contributions and 
          other property from the estate.
Sec. 151. Clarification of postpetition wages and benefits.
Sec. 152. Exceptions to automatic stay in domestic support obligation 
          proceedings.
Sec. 153. Automatic stay inapplicable to certain proceedings against the 
          debtor.
Sec. 154. Definition of domestic support obligation.
Sec. 155. Requirements to obtain confirmation and discharge in cases 
          involving domestic support obligations.
Sec. 156. Exceptions to automatic stay in domestic support obligation 
          proceedings.
Sec. 157. Exemption for right to receive certain alimony, maintenance, 
          or support.
Sec. 158. Automatic stay inapplicable to certain proceedings against the 
          debtor.

                 TITLE II--DISCOURAGING BANKRUPTCY ABUSE

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

            TITLE III--GENERAL BUSINESS BANKRUPTCY PROVISIONS

Sec. 301. Definition of disinterested person.
Sec. 302. Miscellaneous improvements.
Sec. 303. Extensions.
Sec. 304. Local filing of bankruptcy cases.
Sec. 305. Permitting assumption of contracts.

              TITLE IV SMALL BUSINESS BANKRUPTCY PROVISIONS

Sec. 401. Flexible rules for disclosure Statement and plan.
Sec. 402. Definitions.
Sec. 403. Standard form disclosure Statement and plan.
Sec. 404. Uniform national reporting requirements.
Sec. 405. Uniform reporting rules and forms for small business cases.
Sec. 406. Duties in small business cases.
Sec. 407. Plan filing and confirmation deadlines.
Sec. 408. Plan confirmation deadline.
Sec. 409. Prohibition against extension of time.
Sec. 410. Duties of the United States trustee.
Sec. 411. Scheduling conferences.
Sec. 412. Serial filer provisions.
Sec. 413. Expanded grounds for dismissal or conversion and appointment 
          of trustee or examiner.
Sec. 414. Study of operation of title 11 of the United States Code with 
          respect to small businesses.
Sec. 415. Payment of interest.
Sec. 416. Protection of jobs.

                TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS

Sec. 501. Petition and proceedings related to petition.
Sec. 502. Applicability of other sections to chapter 9.

              TITLE VI--STREAMLINING THE BANKRUPTCY SYSTEM

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

                       TITLE VII--BANKRUPTCY DATA

Sec. 701. Improved bankruptcy statistics.
Sec. 702. Uniform rules for the collection of bankruptcy data.
Sec. 703. Sense of the Congress regarding availability of bankruptcy 
          data.

                  TITLE VIII--BANKRUPTCY TAX PROVISIONS

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

            TITLE IX--ANCILLARY AND OTHER CROSS-BORDER CASES

Sec. 901. Amendment to add chapter 15 to title 11, United States Code.
Sec. 902. Amendments to other chapters in title 11, United States Code.

                 TITLE X--FINANCIAL CONTRACT PROVISIONS

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

                     TITLE XI--TECHNICAL CORRECTIONS

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

     TITLE XII--GENERAL EFF ECTIVE DATE; APP LICATION OF AMENDMENTS

Sec. 1201. Effective date; application of amendments.

                TITLE I--CONSUMER BANKRUPTCY PROVISIONS

                   Subtitle A--Needs based bankruptcy

SEC. 101. CONVERSION.

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

SEC. 102. DISMISSAL OR CONVERSION.

  (a) In General.--Section 707 of title 11, United States Code, 
is amended--
          (1) by striking the section heading and inserting the 
        following:

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

          (2) by amending subsection (b) to read as follows:
  ``(b)(1) After notice and a hearing, a court, on its own 
motion or on a motion by the United States trustee, the 
trustee, or any part in interest who is eligible to bring a 
motion, may dismiss a case filed by an individual debtor under 
this chapter, or with the debtor's consent, convert such a case 
to a case under chapter 11 or 13 of this title if it finds that 
the granting of relief would be an abuse of the provisions of 
this chapter, the court shall consider whether--
          ``(A) the debtor has the ability to repay some 
        portion of the debtor's unsecured nonpriority debt as 
        determined under paragraphs (2) and (3);
          ``(B) the debtor has filed the petition in bad faith; 
        or
          ``(C) the totality of the circumstances (including 
        whether the debtor seeks to reject a personal services 
        contract and the financial need for such rejection as 
        sought by the debtor) of the debtor's financial 
        situation demonstrates abuse.
  ``(2) In considering under paragraph (1)(A) whether the 
granting of relief would be an abuse of the provisions of this 
chapter, the court shall conclusively presume abuse does not 
exist if the debtor's current monthly income, when multiplied 
by 12, is less than or equal to 100 percent of the highest 
national or applicable State or Statistical Area median family 
income reported for a family of equal size, whichever is 
greater, or in the case of a household of 1 person, less than 
or equal to 100 percent of the highest national or State or 
Metropolitan Statistical Area median household income for 1 
earner, whichever is greater, as adjusted, if applicable, as 
provided in paragraph (6).
  ``(3) In considering under paragraph (1)(A) whether the 
granting of relief would be an abuse of the provision of this 
chapter, the court shall presume abuse exists if--
          ``(A) the debtor's current monthly income, when 
        multiplied by 12, is less than or equal to 100 percent 
        of the highest national or applicable State or 
        Metropolitan Statistical Area median family income 
        reported for a family of equal size, whichever is 
        greater, or in the case of a household of 1 person, 
        less than or equal to 100 percent of the highest 
        national or State or Metropolitan Statistical Area 
        median household income for 1 yearner, whichever is 
        greater, as adjusted, if applicable, as provided in 
        paragraph (6); and
          ``(B) the product of--
                  ``(i) the debtor's current monthly income, 
                reduced by allowable monthly expenses specified 
                in paragraph (4) (which shall include, if 
                applicable the continuation of actual expenses 
                of a dependent child under the age of 18 for 
                tuition, books, and required fees at a private 
                elementary or secondary school, or comparable 
                expenses stemming from the home education of 
                such child, or the attendance of such child at 
                a public elementary or secondary school, not 
                exceeding $10,000) and monthly debt payments 
                specified in paragraph (5), and
                  ``(ii) multiplied by 36,
        less estimated administrative expenses and reasonable 
        attorneys' fees, is not less than $6,000 of the 
        debtor's nonpriority unsecured claims in the case.
  ``(4) For the purposes of this subsection, the debtor's 
allowable monthly expenses shall be the expenses reasonably 
necessary--
          ``(A) for the maintenance or support of the debtor, 
        the dependents of the debtor, and in a jointcase, the 
spouse of the debtor if the spouse is not otherwise a dependent; and
          ``(B) if the debtor is engaged in business, for the 
        payment of expenditures necessary for the continuation, 
        preservation, and operation of such business.
Notwithstanding any other provision of this clause, the 
debtor's monthly expenses shall not include payments for debts 
described in paragraph (5).
  ``(5) For purposes of this subsection, the debtor's monthly 
debt payments shall include--
          ``(A) the total amount scheduled as contractually due 
        on all secured debts in each month of the 36 months 
        following the date of the petition and divided by 36; 
        and
          ``(B) the debtor's expenses for payment of all 
        priority claims, including priority domestic support 
        obligations, calculated as the total amount of debts 
        entitled to priority in each month of the 36 months 
        following the date of the petition and divided by 36.
  ``(6) For the purposes of this subsection--
          ``(A) national or applicable State or Metropolitan 
        Statistical Area median family income reported for a 
        household of more than 4 individuals shall be that of a 
        household of 4 individuals plus $583 per month for each 
        additional member of that household;
          ``(B) a family or household shall consist of the 
        debtor, the debtor's spouse, and the debtor's 
        dependents, but not a legally separated spouse unless 
        the spouse files a joint case with the debtor.
  ``(7) In any proceeding brought under this subsection, the 
presumption of abuse may be rebutted by demonstrating special 
circumstances that justify additional reasonable expenses or 
adjustments of current monthly total income. In order to 
establish such circumstances, the debtor shall be required to--
          ``(A) itemize each additional expense or adjustment 
        of income; and
          ``(B) provide documentation of such expenses and a 
        detailed explanation of the circumstances that warrant 
        such expenses.
  ``(8)(A) As part of the schedule of current income and 
expenditures required under section 521, the debtor shall 
include--
          ``(i) a statement of the debtor's current monthly 
        income and calculations that show whether a presumption 
        arises under paragraph (1)(A) of this subsection; or
          ``(ii) a statement of the debtor's current monthly 
        income showing that the debtor is a debtor described in 
        paragraph (14) of this subsection.
  ``(B) The Supreme Court shall promulgate rules under section 
2075 of title 28, United States Code, that prescribe a form for 
a statement under subparagraph (A) and may provide general 
rules on the content of such statement.
  ``(9) If a trustee brings a motion for dismissal or 
conversion under this subsection, and the court grants that 
motion and finds that the action of the counsel for the debtor 
in filing under this chapter violated Rule 9011, the courts 
hall assess damages, which may include ordering--
          ``(A) the counsel for the debtor to reimburse the 
        trustee for all reasonable costs in prosecuting a 
        motion brought under section 707(b), including 
        reasonable attorneys' fees;
          ``(B) the assessment of an appropriate civil penalty 
        against the counsel for the debtor; and
          ``(C) the payment of the civil penalty to the trustee 
        or the United States trustee.
  ``(10) The court may award a debtor all reasonable costs and 
other appropriate damages in contesting a motion brought by a 
party in interest (other than a trustee, bankruptcy 
administrator, or United States trustee) under this subsection 
(including reasonable attorneys' fees) if the court does not 
grant the motion and the court finds that--
          ``(A) the position of the party that brought the 
        motion was not substantially justified; or
          ``(B) the party brought the motion solely for the 
        purpose of coercing the debtor into waiving a right 
        guaranteed to the debtor under this title.
  ``(11) A party in interest may not bring a motion under this 
section until the United States trustee has either filed a 
statement under section 704(b)(2)(A) or filed a motion under 
section 704(b)(2)(B).
  ``(12) If an attorney for a party in interest (other than a 
trustee, bankruptcy administrator, or United States trustee) 
brings a motion for dismissal or conversion under this 
subsection, and the court does not grant that motion and finds 
that the action of the counsel for the moving party in filing 
such motion under this chapter violated Rule 9011, the court 
shall assess damages, which may include ordering--
          ``(A) the counsel for the moving party to reimburse 
        the debtor for all reasonable costs in defending a 
        motion brought under section 707(b), including 
        reasonable attorneys' fees;
          ``(B) the assessment of an appropriate civil penalty 
        against the counsel for the moving party.
  ``(13) In making a determination whether to dismiss a case 
under this section, the court may not take into consideration 
whether a debtor has made, or continues to make, charitable 
contributions (that meet the definition of `charitable 
contribution' under section 548(d)(3) and as described by 
section 548(a)(2)of this title to any qualified religious or 
charitable entity or organization (as that term is defined in 
section 548(d)(4)) of this title.
  ``(14) No court, United States trustee, bankruptcy 
administrator, or other party in interest shall bring a motion 
under subsection (b)(1)(A) if, as of the date of the order for 
relief, the debtor's current monthly income, when multiplied by 
12, is less than or equal to 100 percent of the highest 
national or applicable State or Metropolitan Statistical Area 
median family income reported for a family of equal size, 
whichever is greater, or in the case of a household of 1 
person, less than or equal to 100 percent of the highest 
national or State or Metropolitan Statistical Area median 
household income for 1 earner, whichever is greater, as 
adjusted, if applicable, as provided in paragraph(6);''.
  (b) Definition.--Section 101 of title 11, United States Code, 
is amended--
          (1) by inserting after paragraph (10)the following:
          ``(10A) `current monthly income'--
                  ``(A) means the average monthly income from 
                all sources which the debtor, or in a joint 
                case, the debtor and the debtor's spouse, 
                receive without regard to whether the income is 
                taxable income, derived during the 180-day 
                period preceding the date of determination;
                  ``(B) includes any amount paid by any entity 
                other than the debtor (or, in a joint case, the 
                debtor and the debtor's spouse), on a regular 
                basis to the household expenses of the debtor 
                or the debtor's dependents (and, in a joint 
                case, the debtor's spouse if not otherwise a 
                dependent), but excludes--
                          ``(i) payments to victims of war 
                        crimes or crimes against humanity;
                          ``(ii) benefits received from the 
                        Department of Veterans Affairs in 
                        connection with service in the armed 
                        forces of the United States;
                          ``(iii) income received on account of 
                        disability;and
                          ``(iv) benefits received under the 
                        Social Security Act.'';
          (2) by inserting after paragraph (17) the following:
          ``(17A) `estimated administrative expenses' means 10 
        percent of projected payments under a chapter 13 
        plan;''.
  (c) Duties of Chapter 7 Trustee.--Section 704 of title 11, 
United States Code, is amended--
          (1) by inserting ``(a)'' before ``The trustee shall--
        ''; and
          (2) by adding at the end the following:
  ``(b)(1) With respect to an individual debtor under this 
chapter, the trustee shall review all materials filed by the 
debtor and, not later than 10 days after the first meeting of 
creditors, file with the court and the United States trustee a 
statement as to whether the debtor's case could be presumed to 
be an abuse under section 707(b).
  ``(2) Not later than 60 days after receiving a statement 
filed under paragraph (1), the United States trustee or 
bankruptcy administrator shall--
          ``(A) file a statement setting forth the reasons why 
        the bankruptcy administrator does not believe that such 
        a motion would be appropriate or would be prohibited 
        because the debtor is a debtor of the kind described in 
        section 707(b)(14) of this title; or
          ``(B) file a motion to dismiss or convert under 
        section 707(b) if, based on the filing of such 
        statement with the court, the United States trustee or 
        bankruptcy administrator determines that the case 
        should be presumed to be an abuse under section 707(b) 
        and the debtor's current monthly income, when 
        multiplied by 12, is less than or equal to 100 percent 
        of the highest national or applicable State or State 
        Metropolitan Statistical Area median family income 
        reported for a family of equal size, whichever is 
        greater, or in the case of a household of 1 person, 
        less than or equal to 100 percent of the highest 
        national or State or Metropolitan Statistical Area 
        median household income for 1 earner, whichever is 
        greater. For the purposes of determining whether a 
        motion would be appropriate to be filed, the United 
        States trustee shall consider adjustments to current 
        monthly income for income items received over the most 
        recent 180 days that are not reasonably expected to be 
        reflected in future income, or expenses likely to be 
        due under a chapter 13 plan which are not included in 
        the required statement of the debtor's expense. The 
        debtor shall, at the request of the United States 
        trustee, provide documentation for any current income 
        items that are not reasonably expected to be reelected 
        in future income, and a detailed explanation of the 
        circumstances that warrant making such adjustments. If 
        the United States trustee determines that, after 
        accounting for these adjustments, the debtor's current 
        monthly income, which multiplied by 12, is less than or 
        equal to 100 percent of the higher of the national, 
        State, or Metropolitan Statistical Area median family 
        income reported for a family of equal or lesser size, 
        or in the case of a household of 1 person, the national 
        median household income for 1 earner, then the case 
        shall be presumed not be an abuse of the previous of 
        this chapter.
For the purpose of this subsection, the national or applicable 
State or Metropolitan Statistical Area median family income 
reported for a household of more than 4 individuals shall be 
that of a household of 4 individuals plus $583 per month for 
each additional member of that household.
  ``(3) Paragraph (2) shall not be construed to preclude the 
court or any other party who is eligible to file a motion under 
section 707(b) from bringing such a motion.''.
  (d) Meeting of Creditors and Equity Security Holders.--
Section 341 of title 11, United States Code, is amended by 
adding the following new subsection:
  ``(e) The initial notice of the meeting of creditors shall 
indicate whether the debtor's current monthly income is 
reported to be equal or greater than the applicable median 
income for purposes of subsection 707(b) of this title.''.
  (e) Guidelines for Assessing Income.--Section 586 of title 
28, United States Code, is amended by adding the following new 
subsection:
  ``(f) Not later than 1 year after the effective date of this 
subsection, the Director of the Executive Office for the United 
States Trustees shall issue guidelines to assist in making 
assessment of whether income is not reasonably necessary to be 
expended by a debtor for the maintenance or support of the 
debtor, the dependents of the debtor, and in a joint case, the 
spouse of the debtor if the spouse is not otherwise a 
dependent. The director shall consult with the Department of 
the Treasury, and others as needed in developing the 
guidelines.''.
  (f) Section 104, title 11, United States Code, as amended by 
subsection ____ of this Act, is amended by striking out 
``523(a)(2)(C), and 707(b)(3)'' each place it appears and 
inserting ``523(a)(2)(C), and 707(b)'' in lieu thereof.
  (g) Clerical Amendment.--The table of sections at the 
beginning of chapter 7 of title 11, United States Code, is 
amended by striking the item relating to section 707 and 
inserting the following:

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

SEC. 103. NOTICE OF ALTERNATIVES.

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

SEC. 104. DEBTOR FINANCIAL MANAGEMENT TRAINING TEST PROGRAM.

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

              Subtitle B--Consumer Bankruptcy Protections

SEC. 105. DEFINITIONS.

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

SEC. 106. ENFORCEMENT.

  (a) Enforcement.--Subchapter II of chapter 5 of title 11, 
United States Code, is amended by adding at the end the 
following:

``Sec. 526. Debt relief agency enforcement

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

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

SEC. 107. SENSE OF THE CONGRESS.

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

SEC. 108. DISCOURAGING ABUSIVE REAFFIRMATION PRACTICES.

  (a) Section 524 of title 11, United States Code, is amended--
          (1) in subsection (c)(2)(B) by adding at the end the 
        following:
                  ``(C)(i) such agreement contains a clear and 
                conspicuous statement advising the debtor of 
                the amount of the monthly payments, the total 
                amount payable and number of payments if the 
                payments are made according to schedule, the 
                amount of the total payment attributable to 
                principal, interest, late fees, and creditor's 
                attorneys fees, the interest rate, and the ways 
                in which terms differ from the original 
                agreement; and
                  ``(ii) if the debt is secured, the agreement 
                is accompanied by a copy of the instrument 
                creating the debt and any security interest or 
                lien and the documents necessary to show 
                perfection of the interest, and the agreement 
                contains a clear and conspicuous statement that 
                advises the debtor of the value of the 
                collateral and the date on which the lien will 
                be released if payments are made according to 
                schedule;'';
          (2) in subsection (c)(6)(B), by inserting after 
        ``real property'' the following: ``or is a debt 
        described in subsection (c)(7)''; and
          (3) by adding at the end of subsection (c) the 
        following:
          ``(7) in a case concerning an individual, if the 
        consideration for such agreement is based on whole or 
        in part on an unsecured consumer debt, or is based on 
        whole or in part upon a debt for an item of personalty, 
        the value of which at point of purchase was $500 or 
        less, and in which the creditor asserts a security 
        interest, the court approves such agreement as--
                  ``(A) in the best interest of the debtor in 
                light of the debtor's income and expenses;
                  ``(B) not imposing an undue hardship on the 
                debtor's future ability of the debtor to pay 
                for the needs of children and other dependents 
                (including court ordered support);
                  ``(C) not requiring the debtor to pay the 
                creditor's attorney's fees, expenses, or other 
                costs relating to the collection of the debt;
                  ``(D) not agreed upon by the debtor to 
                protect property necessary for the care and 
                maintenance of children or other dependents 
                that would have nominal value on repossession;
                  ``(E) not the product of coercive threats or 
                actions by the creditor in the creditor's 
                course of dealings with the debtor; and
                  ``(F) not unfair because excessive in amount 
                as compared to the value of the collateral;
          (4) in subsection (d)(2) by striking ``subsections 
        (c)(6)'' and inserting ``subsections (c)(6) and 
        (c)(7)'', and after ``of this section,'' by striking 
        ``if the consideration for such agreement is based in 
        whole or in part on a consumer debt that is not secured 
        by real property of the debtor'' and adding at the end 
        ``as applicable''.
  (b) Section 104 of title 11, United States Code, as amended 
by subsection ____ of this Act, is amended by striking out 
``523(a)(2)(C), and 707(b)(3)'' each place it appears and 
inserting ``523(a)(2)(C), 524(c)(7), and 707(b)(3)'' in lieu 
thereof.

SEC. 109. PROMOTION OF ALTERNATIVE DISPUTE RESOLUTION.

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

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

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

SEC. 111. DUAL USE DEBIT CARD.

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

SEC. 112. DISCOURAGING RECKLESS LENDING PRACTICES.

  (a) Limiting Claims Arising From Irresponsible Lending 
Practices.--Section 502(b) of title 11, United States Code, is 
amended--
          (1) in paragraph (8) by striking ``or'' at the end,
          (2) in paragraph (9) by striking the period at the 
        end and inserting a semicolon; and
          (3) by adding at the end the following:
          ``(10) the claim is for a consumer debt under an open 
        end credit plan (as defined in section 103 of the Truth 
        in Lending Act) and before incurring such debt under 
        such plan the debtor was not informed in writing in a 
        clear and conspicuous manner (or in the case of a 
        worldwide web-based solicitation to open a credit card 
        account under such plan, at the time of solicitation by 
        the person making the solicitation to open such 
        account)--
                  ``(A) of the method of determining the 
                required minimum payment amount, if a minimum 
                payment is required that is different from the 
                amount of any finance charge, and the charges 
                or penalties, if any, which may be imposed for 
                failure by the obligor to pay the required 
                finance charge or minimum payment amount;
                  ``(B) of repayment information that would 
                apply to the outstanding balance of the 
                consumer under the credit plan, including--
                          ``(i) the required minimum monthly 
                        payment on that balance, represented as 
                        both a dollar figure and a percentage 
                        of that balance;
                          ``(ii) the number of months (rounded 
                        to the nearest month) that it would 
                        take to pay the entire amount of that 
                        current balance if the consumer pays 
                        only the required minimum monthly 
                        payments and if no further advances are 
                        made;
                          ``(iii) the total cost to the 
                        consumer, including interest and 
                        principal payments, of paying that 
                        balance in full if the consumer pays 
                        only the required minimum monthly 
                        payments and if no further advances are 
                        made; and
                          (iv) the following statement: `If 
                        your current rate is a temporary 
                        introductory rate, your total costs may 
                        be higher.' ;
                  ``(C) of the method for determining the 
                required minimum payment amount to be paid for 
                each billing cycle, and the charge or penalty, 
                if any, to be imposed for any failure by the 
                obligor to pay the required minimum payment 
                amount;
                  ``(D) of any charge that may be imposed due 
                to the failure of the obligor to make payment 
                on or before a required payment due date, the 
                date that payment is due or, if different, the 
                date on which a late payment fee will be 
                charged, and that the terms and conditions of 
                such charge will be stated prominently in a 
                conspicuous location on each billing statement, 
                together with the amount of the charge to be 
                imposed if payment is made after such date; and
                  ``(E) in any application or solicitation for 
                a credit card issued under such plan that 
                offers, during an introductory period of less 
                than 1 year, an annual percentage rate of 
                interest that--
                          ``(i) is less than the annual 
                        percentage rate of interest which will 
                        apply after the end of such 
                        introductory period, of such rate in a 
                        statement that includes the following: 
                        `The annual percentage rate of interest 
                        applicable during the introductory 
                        period is not the annual percentage 
                        rate which will apply after the end of 
                        the introductory period. The permanent 
                        annual percentage rate will apply after 
                        [insert applicable date] and will be 
                        [insert applicable percentage rate].'  
                        ; or
                          ``(ii) varies in accordance with an 
                        index, which is less than the current 
                        annual percentage rate under the index 
                        which will apply after the end of such 
                        period, of such rate in a statement 
                        that includes the following: `The 
                        annual percentage rate of interest 
                        applicable during the introductory 
                        period is not the annual percentage 
                        rate which will apply after the end of 
                        the introductory period. The permanent 
                        annual percentage rate will be 
                        determined by an index and will apply 
                        after [insert date]. If the index which 
                        will apply after such date were applied 
                        to your account today, the annual 
                        percentage rate would be [insert 
                        applicable percentage rate].' ;
          ``(11) such claim is for a debt that arose from a 
        credit card account under an open end credit plan (as 
        defined in section 103 of the Truth in Lending Act, for 
        which account a creditor imposed a fee based on 
        inactivity for the account during any period in which 
        no advances were made if the obligor maintains any 
        outstanding balance and is charged a finance charge 
        applicable to such balance;
          ``(12) such claim is for a debt that arose from a 
        credit card account for which a credit card that was 
        issued to or on behalf of, any individual who has not 
        attained 21 years of age except in response to a 
        written request or application to the card issuer to 
        open a credit card account containing--
                  ``(A) the signature of the parent or guardian 
                of such individual indicating joint liability 
                for debts incurred by such individual in 
                connection with the account before such 
                individual reaches the age of 21; or
                  ``(B) a submission by such individual of 
                financial information indicating an independent 
                means of repaying any obligation arising from 
                the proposed extension of credit in connection 
                with the account;
          ``(13) such claim is for a debt that arose on an 
        account that a creditor cancelled, imposed a minimum 
        finance charge for any period (including any annual 
        period), imposed any fee in lieu of a minimum finance 
        charge, or imposed any other charge or penalty with 
        regard to such account or credit extended under such 
        account solely on the basis that any credit extended 
        has been repaid in full before the end of any grace 
        period applicable with respect to the extension of 
        credit, excluding a flat annual fee imposed on the 
        consumer in advance of any annual period to cover the 
        cost of maintaining a credit card account during such 
        annual period without regard to whether any credit is 
        actually extended under such account during such 
        period, or the actual finance charge applicable with 
        respect to any credit extended under such account 
        during such annual period at the annual percentage rate 
        disclosed to the consumer in accordance with this title 
        for the period of time any such credit is outstanding;
          ``(14) such claim is for a debt that arose from an 
        increase in any annual percentage rate of interest 
        (other than an increase due to the expiration of any 
        introductory percentage rate of interest or due solely 
        to a change in another rate of interest to which such 
        rate is indexed) applicable to any outstanding balance 
        of credit under such plan may take effect before the 
        beginning of the billing cycle which begins not less 
        than 15 days after the obligor receives notice of such 
        increase; and
          ``(15) that if an obligor referred to in paragraph 
        (14) cancels the credit card account before the 
        beginning of the billing cycle referred to in such 
        paragraph--
                  ``(A) if the an annual percentage rate of 
                interest applicable after the cancellation with 
                respect to such outstanding balance on such 
                account as of the date of cancellation exceeds 
                any annual percentage rate of interest 
                applicable with respect to such balance under 
                the terms and conditions in effect before the 
                increase referred to in paragraph (14); and
                  ``(B) the repayment of such outstanding 
                balance after the cancellation is not subject 
                to all other terms and conditions applicable 
                with respect to such account before the 
                increase referred to in such paragraph;
  (b) Definition.--Section 101 of title 11, United States Code, 
is amended by inserting after paragraph (9) the following:
          ``(9A) `credit card' includes any dual purpose or 
        multifunction card, including a stored-value card, 
        debit card, check card, check guarantee card, or 
        purchase-price discount card, that is connected with an 
        open end credit plan (as defined in section 103 of the 
        Truth in Lending Act) and can be used, either on 
        issuance or upon later activation, to obtain credit 
        directly or indirectly.''.

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

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

SEC. 114. EFFECT OF DISCHARGE.

  Section 524 of title 11, United States Code, is amended by 
adding at the end the following:
  ``(i) The willful failure of a creditor to credit payments 
received under a plan confirmed under this title (including a 
plan of reorganization confirmed under chapter 11 of this 
title) in the manner required by the plan (including crediting 
the amounts required under the plan) shall constitute a 
violation of any injunction under subsection (a)(2) which has 
arisen at the time of the failure.
  ``(j) An individual who is injured by the willful failure of 
a creditor to comply with the requirements for a reaffirmation 
agreement under subsections (c) and (d), or by any willful 
violation of the injunction under subsection (a)(2), shall be 
entitled to recover--
          ``(1) the greater of--
                  ``(A) the amount of actual damages; or
                  ``(B) $1,000; and
          ``(2) costs and attorneys' fees.''.

SEC. 115. LIMITING TRUSTEE LIABILITY.

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

SEC. 116. REINFORCE THE FRESH START.

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

SEC. 117. DISCOURAGING BAD FAITH REPEAT FILINGS.

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

SEC. 118. CURBING ABUSIVE FILINGS.

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

SEC. 119. DEBTOR RETENTION OF PERSONAL PROPERTY SECURITY.

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

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

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

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

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

SEC. 123. FAIR VALUATION OF COLLATERAL.

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

SEC. 124. DOMICILIARY REQUIREMENTS FOR EXEMPTIONS.

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

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

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

SEC. 126. ROLLING STOCK EQUIPMENT.

  (a) In General.--Section 1168 of title 11, United States 
Code, is amended to read as follows:

``Sec. 1168. Rolling stock equipment

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

``Sec. 1110. Aircraft equipment and vessels

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

SEC. 127. DISCHARGE UNDER CHAPTER 13.

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

SEC. 128. BANKRUPTCY JUDGESHIPS.

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

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

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

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

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

SEC. 132. ADEQUATE PROTECTION FOR INVESTORS.

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

SEC. 134. GIVING DEBTORS THE ABILITY TO KEEP LEASED PERSONAL PROPERTY 
                    BY ASSUMPTION.

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

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

  (a) In General.--Chapter 13 of title 11, United States Code, 
is amended by adding after section 1307 the following:

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

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

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

SEC. 136. AUTOMATIC STAY.

  Section 362(b) of title 11, United States Code, as amended by 
sections 118 and 132, is amended--
          (1) in paragraph (20), by striking ``or'' at the end;
          (2) in paragraph (21), by striking the period at the 
        end and inserting a semicolon; and
          (3) by inserting after paragraph (21) the following:
          ``(22) under subsection (a) of any transfer that is 
        not avoidable under section 544 of this title and that 
        is not avoidable under section 549 of this title; or
          ``(23) under subsection (a)(3), of eviction actions 
        based on endangerment to property or person or the use 
        of illegal drugs.''.

SEC. 137. EXTEND PERIOD BETWEEN BANKRUPTCY DISCHARGES.

  Title 11, United States Code, is amended--
          (1) in section 727(a)(8) by striking ``six'' and 
        inserting ``7''; and
          (2) in section 1328 by adding at the end the 
        following:
  ``(f) Notwithstanding subsections (a) and (b), the court 
shall not grant a discharge of all debts provided for by the 
plan or disallowed under section 502 of this title if the 
debtor has received a discharge in any case filed under this 
title within 5 years of the order for relief under this 
chapter.''.

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

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

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

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

SEC. 143. CONTINUED LIABILITY OF PROPERTY.

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

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

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

SEC. 145. CLARIFICATION OF MEANING OF HOUSEHOLD GOODS.

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

SEC. 147. MONETARY LIMITATION ON CERTAIN EXEMPT PROPERTY.

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

SEC. 148. BANKRUPTCY FEES.

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

SEC. 149. COLLECTION OF CHILD SUPPORT.

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

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

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

SEC. 151. CLARIFICATION OF POSTPETITION WAGES AND BENEFITS.

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

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

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

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

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

SEC. 154. DEFINITION OF DOMESTIC SUPPORT OBLIGATION.

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

SEC. 155. REQUIREMENTS TO OBTAIN CONFIRMATION AND DISCHARGE IN CASES 
                    INVOLVING DOMESTIC SUPPORT OBLIGATIONS.

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

SEC. 156. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC SUPPORT OBLIGATION 
                    PROCEEDINGS.

  Section 362(b) of title 11, United States Code, as amended by 
sections 104 and 606, is amended--
          (1) amending paragraph (2) to read as follows:
          ``(2) under subsection (a)--
                  ``(A) of the commencement or continuation of 
                an action or proceeding for--
                          ``(i) the establishment of paternity 
                        as a part of an effort to collect 
                        domestic support obligations; or
                          ``(ii) the establishment or 
                        modification of an order for domestic 
                        support obligations; or
                  ``(B) the collection of a domestic support 
                obligation from property that is not property 
                of the estate; or
                  ``(C) under subsection (a) of--
                          ``(i) the withholding of income for 
                        payment of a domestic support 
                        obligation pursuant to a judicial or 
                        administrative order or statute for 
                        such obligation that first becomes 
                        payable after the date on which the 
                        petition is filed; or
                          ``(ii) the withholding of income for 
                        payment of a domestic support 
                        obligation owed directly to the spouse, 
                        former spouse or child of the debtor or 
                        the parent of such child, pursuant to a 
                        judicial or administrative order or 
                        statute for such obligation that 
                        becomes payable before the date on 
                        which the petition is filed unless the 
                        court finds, after notice and hearing, 
                        that such withholding would render the 
                        plan infeasible;'';
          (2) in paragraph (19), by striking ``or'' at the end;
          (3) in paragraph (20), by striking the period at the 
        end and inserting a semicolon; and
          (4) by inserting after paragraph (20) the following:
          ``(21) under subsection (a) with respect to--
                  ``(A) the withholding, suspension, or 
                restriction of drivers' licenses, professional 
                and occupational licenses, and recreational 
                licenses pursuant to State law, as specified in 
                section 466(a)(16) of the Social Security Act 
                (42 U.S.C. 666(a)(16)) or with respect to the 
                reporting of overdue support owed by an absent 
                parent to any consumer reporting agency as 
                specified in section 466(a)(7) of the Social 
                Security Act (42 U.S.C. 666(a)(7)) if such debt 
                is payable solely to a spouse, former spouse or 
                child of the debtor or the parent of such child 
                pursuant to a judicial or administrative order 
                or statute, unless the holder of such claim 
                agrees to waive such withholding, suspension or 
                restriction;
                  ``(B) the interception of tax refunds, as 
                specified in sections 464 and 466(a)(3) of the 
                Social Security Act (42 U.S.C. 664 and 
                666(a)(3)) if such tax refund is payable solely 
                to a spouse, former spouse or child of the 
                debtor or the parent of such child pursuant to 
                a judicial or administrative order or statute; 
                or
                  ``(C) the enforcement of medical obligations 
                as specified under title IV of the Social 
                Security Act (42 U.S.C. 601 et seq.).''.

SEC. 157. EXEMPTION FOR RIGHT TO RECEIVE CERTAIN ALIMONY, MAINTENANCE, 
                    OR SUPPORT.

  Section 522(b)(3) of title 11, United States Code, as so 
redesignated and amended by sections 115 and 203, is amended--
          (1) in subparagraph (C) by striking ``and'' at the 
        end,
          (2) in subparagraph (D) by striking the period at the 
        end and inserting ``; and'', and
          (3) by inserting after subparagraph (D) the 
        following:
          ``(E) the right to receive--
                  ``(i) alimony, maintenance , support, or 
                property traceable to alimony, maintenance , 
                support; or
                  ``(ii) amounts payable as a result of a 
                property settlement agreement with the debtor's 
                spouse or former spouse; or of an interlocutory 
                or final divorce decree;
        to the extent reasonably necessary for the support of 
        the debtor or a dependent of the debtor.''.

SEC. 158. AUTOMATIC STAY INAPPLICABLE TO CERTAIN PROCEEDINGS AGAINST 
                    THE DEBTOR.

  Section 362(b)(2) of title 11, United States Code, as amended 
by section 156, is amended--
          (1) in subparagraph (A) by striking ``or'' at the 
        end;
          (2) by inserting after subparagraph (B) the 
        following:
                  ``(C) the commencement or continuation of a 
                proceeding concerning a child custody or 
                visitation;
                  ``(D) the commencement or continuation of a 
                proceeding alleging domestic violence; or
                  ``(E) the commencement or continuation of a 
                proceeding seeking a dissolution of marriage, 
                except to the extent the proceeding concerns 
                property of the estate;''.

                TITLE II--DISCOURAGING BANKRUPTCY ABUSE

SEC. 201. REENACTMENT OF CHAPTER 12.

  (a) Reenactment.--(1) Chapter 12 of title 11 of the United 
States Code, as in effect on September 30, 1999, is hereby 
reenacted.
  (2) Paragraph (1) shall take effect on September 30, 1999.
  (b) Contents of Chapter 12 Plan.--Section 1222(a)(2) of title 
11, United States Code, is amended to read as follows:
          ``(2) provide for the full payment, in deferred cash 
        payments, of all claims entitled to priority under 
        section 507, unless--
                  ``(A) the claim is a claim owed to a 
                governmental unit that arises as a result of 
                the sale, transfer, exchange, or other 
                disposition of any farm asset used in the 
                debtor's farming operation, in which case the 
                claim shall be treated as an unsecured claim 
                that is not entitled to priority under section 
                507, but the debt shall be treated in such 
                manner only if the debtor receives a discharge; 
                or
                  ``(B) the holder of a particular claim agrees 
                to a different treatment of that claim; and''.
  (c) Special Notice Provisions.--Section 1231(d) of title 11, 
United States Code, is amended by striking ``a State or local 
governmental unit'' and inserting ``any governmental unit''.
  (d) Expanded Definition of Family Farmer.--Section 101(18) of 
title 11, United States Code, is amended--
          (1) in subparagraph (A)--
                  (A) by striking ``$1,500,000'' and inserting 
                ``$3,000,000'';
                  (B) by striking ``80'' and inserting ``50''; 
                and
                  (C) by striking ``the taxable year preceding 
                the taxable year'' and inserting ``at least 1 
                of the 3 taxable years preceding the taxable 
                year''; and
          (2) in subparagraph (B)--
                  (A) in clause (i), by striking ``80'' and 
                inserting ``50''; and
                  (B) in clause (ii), by striking 
                ``$1,500,000'' and inserting ``$3,000,000''.
  (e) Meetings of Creditors and Equity Security Holders.--
Section 341 of title 11, United States Code, is amended by 
adding at the end the following:
  ``(e) Notwithstanding subsections (a) and (b), the court, on 
the request of a party in interest and after notice and a 
hearing, for cause may order that the United States trustee not 
convene a meeting of creditors or equity security holders if 
the debtor has filed a plan as to which the debtor solicited 
acceptances prior to the commencement of the case.''.

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

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

SEC. 203. PROTECTION OF RETIREMENT SAVINGS IN BANKRUPTCY.

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

SEC. 204. PROTECTION OF REFINANCE OF SECURITY INTEREST.

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

SEC. 205. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

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

SEC. 206. CREDITORS AND EQUITY SECURITY HOLDERS COMMITTEES.

  Section 1102(a)(2) of title 11, United States Code, is 
amended by inserting before the first sentence the following: 
``On its own motion or on request of a party in interest, and 
after notice and hearing, the court may order a change in the 
membership of a committee appointed under this subsection, if 
the court determines that the change is necessary to ensure 
adequate representation of creditors or equity security 
holders.''.

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

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

SEC. 208. LIMITATION.

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

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

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

SEC. 210. POSTPETITION DISCLOSURE AND SOLICITATION.

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

SEC. 211. PREFERENCES.

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

SEC. 212. VENUE OF CERTAIN PROCEEDINGS.

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

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

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

SEC. 214. FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS.

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

SEC. 215. CLAIMS RELATING TO INSURANCE DEPOSITS IN CASES ANCILLARY TO 
                    FOREIGN PROCEEDINGS.

  Section 304 of title 11, United States Code, is amended to 
read as follows:

``Sec. 304. Cases ancillary to foreign proceedings

  ``(a) For purposes of this section--
          ``(1) the term `domestic insurance company' means a 
        domestic insurance company, as such term is used in 
        section 109(b)(2);
          ``(2) the term `foreign insurance company' means a 
        foreign insurance company, as such term is used in 
        section 109(b)(3);
          ``(3) the term `United States claimant' means a 
        beneficiary of any deposit referred to in subsection 
        (b) or any multibeneficiary trust referred to in 
        subsection (b);
          ``(4) the term `United States creditor' means, with 
        respect to a foreign insurance company--
                  ``(A) a United States claimant; or
                  ``(B) any business entity that operates in 
                the United States and that is a creditor; and
          ``(5) the term `United States policyholder' means a 
        holder of an insurance policy issued in the United 
        States.
  ``(b) The court may not grant relief under chapter 15 of this 
title with respect to any deposit, escrow, trust fund, or other 
security required or permitted under any applicable State 
insurance law or regulation for the benefit of claim holders in 
the United States.''.

SEC. 216. DEFAULTS BASED ON NONMONETARY OBLIGATIONS.

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

SEC. 217. SHARING OF COMPENSATION.

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

SEC. 218. PRIORITY FOR ADMINISTRATIVE EXPENSES.

  Section 503(b) of title 11, United States Code, is amended--
          (1) by deleting ``and'' at the end of paragraph (5);
          (2) by striking the period at the end of paragraph 
        (6) and inserting ``; and'';
          (3) by inserting the following after paragraph (6):
          ``(7) with respect to a nonresidential real property 
        lease previously assumed under section 365, and 
        subsequently rejected, a sum equal to all monetary 
        obligations due, excluding those arising from or 
        relating to a failure to operate or penalty provisions, 
        for the period of one year following the later of the 
        rejection date or date of actual turnover of the 
        premises, without reduction or setoff for any reason 
        whatsoever except for sums actually received or to be 
        received from a nondebtor; and the claim for remaining 
        sums due for the balance of the term of the lease shall 
        be a claim under section 502(b)(6).''.

           TITLE III--GENERAL BUSINESS BANKRUPTCY PROVISIONS

SEC. 301. DEFINITION OF DISINTERESTED PERSON.

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

SEC. 302. MISCELLANEOUS IMPROVEMENTS.

  (a) Who May Be a Debtor.--Section 109 of title 11, United 
States Code, is amended by adding at the end the following:
  ``(h)(1) Subject to paragraphs (2) and (3) and 
notwithstanding any other provision of this section, an 
individual may not be a debtor under this title unless that 
individual has, during the 90-day period preceding the date of 
filing of the petition of that individual, received credit 
counseling, including, at a minimum, participation in an 
individual or group briefing that outlined the opportunities 
for available credit counseling and assisted that individual in 
performing an initial budget analysis, through a credit 
counseling program (offered through an approved credit 
counseling service described in section 111(a)).
  ``(2)(A) Paragraph (1) shall not apply with respect to a 
debtor who resides in a district for which the United States 
trustee or bankruptcy administrator of the bankruptcy court of 
that district determines that the approved credit counseling 
services for that district are not reasonably able to provide 
adequate services to the additional individuals who would 
otherwise seek credit counseling from those programs by reason 
of the requirements of paragraph (1).
  ``(B) Each United States trustee or bankruptcy administrator 
that makes a determination described in subparagraph (A) shall 
review that determination not later than one year after the 
date of that determination, and not less frequently than every 
year thereafter.
  ``(3)(A) Subject to subparagraph (B), the requirements of 
paragraph (1) shall not apply with respect to a debtor who 
submits to the court a certification that--
          ``(i) describes exigent circumstances that merit a 
        waiver of the requirements of paragraph (1);
          ``(ii) states that the debtor requested credit 
        counseling services from an approved credit counseling 
        service, but was unable to obtain the services referred 
        to in paragraph (1) during the 5-day period beginning 
        on the date on which the debtor made that request or 
        that the exigent circumstances require filing before 
        such 5-day period expires; and
          ``(iii) is satisfactory to the court.
  ``(B) With respect to a debtor, an exemption under 
subparagraph (A) shall cease to apply to that debtor on the 
date on which the debtor meets the requirements of paragraph 
(1), but in no case may the exemption apply to that debtor 
after the date that is 30 days after the debtor files a 
petition.''.
  (b) Chapter 7 Discharge.--Section 727(a) of title 11, United 
States Code, is amended--
          (1) in paragraph (9), by striking ``or'' at the end;
          (2) in paragraph (10), by striking the period and 
        inserting ``; or''; and
          (3) by adding at the end the following:
          ``(11) after the filing of the petition, the debtor 
        failed to complete an instructional course concerning 
        personal financial management described in section 111 
        unless the debtor resides in a district for which the 
        United States trustee or bankruptcy administrator of 
        the bankruptcy court of that district determines that 
        the approved instructional courses are not adequate to 
        provide service to the additional individuals who would 
        be required to compete the instructional course by 
        reason of the requirements of this section. Each United 
        States trustee or bankruptcy administrator that makes 
        such a determination shall review that determination 
        not later than 1 year after the date of that 
        determination, and not less frequently than every year 
        thereafter.''.
  (c) Chapter 13 Discharge.--Section 1328 of title 11, United 
States Code, as amended by section 137, is amended by adding at 
the end the following:
  ``(g) The court shall not grant a discharge under this 
section to a debtor, unless after filing a petition the debtor 
has completed an instructional course concerning personal 
financial management described in section 111.
  ``(h) Subsection (g) shall not apply with respect to a debtor 
who resides in a district for which the United States trustee 
or bankruptcy administrator of the bankruptcy court of that 
district determines that the approved instructional courses are 
not adequate to provide service to the additional individuals 
who would be required to complete the instructional course by 
reason of the requirements of this section.
  ``(i) Each United States trustee or bankruptcy administrator 
that makes a determination described in subsection (h) shall 
review that determination not later than1 year after the date 
of that determination, and not less frequently than every year 
thereafter.''.
  (d) Debtor's Duties.--Section 521 of title 11, United States 
Code, as amended by sections 604 and 120, is amended by adding 
at the end the following:
  ``(d) In addition to the requirements under subsection (a), 
an individual debtor shall file with the court--
          ``(1) a certificate from the credit counseling 
        service that provided the debtor services under section 
        109(h); and
          ``(2) a copy of the debt repayment plan, if any, 
        developed under section 109(h) through the credit 
        counseling service referred to in paragraph (1).''.
  (e) General Provisions.--
          (1) In general.--Chapter 1 of title 11, United States 
        Code, is amended by adding at the end the following:

``Sec. 111. Credit counseling services; financial management 
                    instructional courses

  ``The clerk of each district shall maintain a list of credit 
counseling services that provide 1 or more programs described 
in section 109(h) and a list of instructional courses 
concerning personal financial management that have been 
approved by--
          ``(1) the United States trustee; or
          ``(2) the bankruptcy administrator for the 
        district.''.
          (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 1 of title 11, United States Code, 
        is amended by adding at the end the following:

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

SEC. 303. EXTENSIONS.

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

SEC. 304. LOCAL FILING OF BANKRUPTCY CASES.

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

SEC. 305. PERMITTING ASSUMPTION OF CONTRACTS.

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

             TITLE IV SMALL BUSINESS BANKRUPTCY PROVISIONS

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

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

SEC. 402. DEFINITIONS.

  (a) Definitions. Section 101 of title 11, United States Code, 
is amended by striking paragraph (51C) and inserting the 
following:
          ``(51C) `small business case' means a case filed 
        under chapter 11 of this title in which the debtor is a 
        small business debtor; and
          ``(51D) `small business debtor' means (A) a person 
        (including affiliates of such person that are also 
        debtors under this title) that has aggregate 
        noncontingent, liquidated secured and unsecured debts 
        as of the date of the petition or the order for relief 
        in an amount not more than $4,000,000 (excluding debts 
        owed to 1 or more affiliates or insiders), except that 
        if a group of affiliated debtors has aggregate 
        noncontingent liquidated secured and unsecured debts 
        greater than $4,000,000 (excluding debt owed to 1 or 
        more affiliates or insiders), then no member of such 
        group is a small business debtor;''.
  (b) Conforming Amendment.--Section 1102(a)(3) of title 11, 
United States Code, is amended by inserting ``debtor'' after 
``small business'' .

SEC. 403. STANDARD FORM DISCLOSURE STATEMENT AND PLAN.

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

SEC. 404. UNIFORM NATIONAL REPORTING REQUIREMENTS.

  (a) Reporting Required.--
          (1) Title 11 of the United States Code is amended by 
        inserting after section 307 the following:

``Sec. 308. Debtor reporting requirements

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

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

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

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

SEC. 406. DUTIES IN SMALL BUSINESS CASES.

  (a) Duties in Chapter 11 Cases.--Title 11 of the United 
States Code is amended by inserting after section 1114 the 
following:

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

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

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

SEC. 407. PLAN FILING AND CONFIRMATION DEADLINES.

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

SEC. 408. PLAN CONFIRMATION DEADLINE.

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

SEC. 409. PROHIBITION AGAINST EXTENSION OF TIME.

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

SEC. 410. DUTIES OF THE UNITED STATES TRUSTEE.

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

SEC. 411. SCHEDULING CONFERENCES.

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

SEC. 412. SERIAL FILER PROVISIONS.

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

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

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

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

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

SEC. 415. PAYMENT OF INTEREST.

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

SEC. 416. PROTECTION OF JOBS.

  The provisions of title 11 of the United States Code relating 
to small business debtors or to single asset real estate shall 
not apply in a case under such title if the application of any 
of such provisions in such case could result in the loss of 5 
or more jobs.

                TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS

SEC. 501. PETITION AND PROCEEDINGS RELATED TO PETITION.

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

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

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

              TITLE VI--STREAMLINING THE BANKRUPTCY SYSTEM

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

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

SEC. 602. AUDIT PROCEDURES.

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

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

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

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

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

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

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

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

  Title 11, United States Code, is amended--
          (1) by amending section 1322(d) to read as follows:
  ``(d) If the current monthly income of the debtor and the 
debtor's spouse combined, when multiplied by 12, is not less 
than the highest national median family income last reported by 
the Bureau of the Census for a family of equal or lesser size 
or, in the case of a household of 1 person, not less than the 
national median household income for 1 earner, the plan may not 
provide for payments over a period that is longer than 5 years. 
If the current monthly income of the debtor and the debtor's 
spouse combined, when multiplied by 12, is less than the 
highest national median family income for a family of equal or 
lesser size, or in the case of a household of 1 person, the 
national median household income for 1 earner, the plan may not 
provide for payments over a period that is longer than 3 years, 
unless the court, for cause, approves a longer period, but the 
court may not approve a period that is longer than 5 years. 
Notwithstanding the foregoing, the national median family 
income for a family of more than 4 individuals shall be the 
national median family income last reported by the Bureau of 
the Census for a family of 4 individuals plus $583 for each 
additional member of the family.'';
          (2) in section 1325(b)(1)(B) as amended by section 
        130--
                  (A) by striking ``three year period'' and 
                inserting ``applicable commitment period''; and
                  (B) by inserting at the end of subparagraph 
                (B) the following: ``The `applicable commitment 
                period' shall be not less than 5 years if the 
                current monthly income of the debtor andthe 
debtor's spouse combined, when multiplied by 12, is not less than the 
highest national median family income last reported by the Bureau of 
the Census for a family of equal or lesser size, or in the case of a 
household of 1 person, the national median household income for 1 
earner. Notwithstanding the foregoing, the national median family 
income for a family of more than 4 individuals shall be the national 
median family income last reported by the Bureau of the Census for a 
family of 4 individuals plus $583 for each additional member of the 
family.''; and
          (3) in section 1329--
                  (A) by striking in subsection (c) ``three 
                years'' and inserting ``the applicable 
                commitment period under section 
                1325(b)(1)(B)''; and
                  (B) by inserting at the end of subsection (c) 
                the following:
``The duration period shall be 5 years if the current monthly 
income of the debtor and the debtor's spouse combined, when 
multiplied by 12, is not less than the highest national median 
family income last reported by the Bureau of the Census for a 
family of equal or lesser size or, in the case of a household 
of 1 person, the national median household income for 1 earner, 
as of the date of the modification and shall be 3 years if the 
current monthly total income of the debtor and the debtor's 
spouse combined, when multiplied by 12, is less than the 
highest national median family income last reported by the 
Bureau of the Census for a family of equal or lesser size or, 
in the case of a household of 1 person, less than the national 
median household income for 1 earner as of the date of the 
modification. Notwithstanding the foregoing, the national 
median family income for a family of more than 4 individuals 
shall be the national median family income last reported by the 
Bureau of the Census for a family of 4 individuals plus $583 
for each additional member of the family.''.

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

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

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

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

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

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

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

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

SEC. 611. STOPPING ABUSIVE CONVERSIONS FROM CHAPTER 13.

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

SEC. 612. BANKRUPTCY APPEALS.

  Title 28 of the United States Code is amended by inserting 
after section 1292 the following:

``Sec. 1293. Bankruptcy appeals

  ``(a) The courts of appeals (other than the United States 
Court of Appeals for the Federal Circuit) shall have 
jurisdiction of appeals from the following:
          ``(1) Final orders and judgments entered by 
        bankruptcy courts and district courts in cases under 
        title 11, in proceedings arising under title 11, and in 
        proceedings arising in or related to a case under title 
        11, including final orders in proceedings regarding the 
        automatic stay of section 362 of title 11.
          ``(2) Interlocutory orders entered by bankruptcy 
        courts and district courts granting, continuing, 
        modifying, refusing or dissolving injunctions, or 
        refusing to dissolve or modify injunctions in cases 
        under title 11, in proceedings arising under title 11, 
        and in proceedings arising in or related to a case 
        under title 11, other than interlocutory orders in 
        proceedings regarding the automatic stay of section 362 
        of title 11.
          ``(3) Interlocutory orders of bankruptcy courts and 
        district courts entered under section 1104(a) or 
        1121(d) of title 11, or the refusal to enter an order 
        under such section.
          ``(4) An interlocutory order of a bankruptcy court or 
        district court entered in a case under title 11, in a 
        proceeding arising under title 11, or in a proceeding 
        arising in or related to a case under title 11, if the 
        court of appeals that would have jurisdiction of an 
        appeal of a final order entered in such case or such 
        proceeding permits, in its discretion, appeal to be 
        taken from such interlocutory order.
  ``(b) Final decisions, judgments, orders, and decrees entered 
by a bankruptcy appellate panel under subsection (b) of this 
section.
  ``(c)(1) The judicial council of a circuit may establish a 
bankruptcy appellate panel composed of bankruptcy judges in the 
circuit who are appointed by the judicial council, which panel 
shall exercise the jurisdiction to review orders and judgments 
of bankruptcy courts described in paragraphs (1)-(4) of 
subsection (a) of this section unless--
          ``(A) the appellant elects at the time of filing the 
        appeal; or
          ``(B) any other party elects, not later than 10 days 
        after service of the notice of the appeal;
to have such jurisdiction exercised by the court of appeals.
  ``(2) An appeal to be heard by a bankruptcy appellate panel 
under this subsection (b) shall be heard by 3 members of the 
bankruptcy appellate panel, provided that a member of such 
panel may not hear an appeal originating in the district for 
which such member is appointed or designated under section 152 
of this title.
  ``(3) If authorized by the Judicial Conference of the United 
States, the judicial councils of 2 or more circuits may 
establish a joint bankruptcy appellate panel.''.

SEC. 613. GAO STUDY.

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

                       TITLE VII--BANKRUPTCY DATA

SEC. 701. IMPROVED BANKRUPTCY STATISTICS.

  (a) Amendment.--Chapter 6 of part I of title 28, United 
States Code, is amended by adding at the end the following:

``Sec. 159. Bankruptcy statistics

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

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

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

  (a) Amendment.--Title 28 of the United States Code is amended 
by inserting after section 589a the following:

``Sec. 589b. Bankruptcy data

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

``589b. Bankruptcy data.''.

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

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

                 TITLE VIII--BANKRUPTCY TAX PROVISIONS

SEC. 801. TREATMENT OF CERTAIN LIENS.

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

SEC. 802. EFFECTIVE NOTICE TO GOVERNMENT.

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

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

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

SEC. 804. RATE OF INTEREST ON TAX CLAIMS.

  (a) Amendment.--Chapter 5 of title 11, United States Code, is 
amended by adding at the end the following:

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

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

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

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

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

SEC. 806. PRIORITY PROPERTY TAXES INCURRED.

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

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

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

SEC. 808. CHAPTER 11 DISCHARGE OF FRAUDULENT TAXES.

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

SEC. 809. STAY OF TAX PROCEEDINGS.

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

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

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

SEC. 811. AVOIDANCE OF STATUTORY TAX LIENS PROHIBITED.

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

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

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

SEC. 813. TARDILY FILED PRIORITY TAX CLAIMS.

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

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

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

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

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

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

  (a) Filing of Prepetition Tax Returns Required for Plan 
Confirmation.--Section 1325(a) of title 11, United States Code, 
as amended by section 140, is amended--
          (1) in paragraph (6) by striking ``and'' at the end;
          (2) in paragraph (7) by striking the period at the 
        end and inserting ``; and''; and
          (3) by adding at the end the following:
          ``(8) if the debtor has filed all Federal, State, and 
        local tax returns as required by section 1308 of this 
        title.''.
  (b) Additional Time Permitted for Filing Tax Returns.--(1) 
Chapter 13 of title 11, United States Code, as amended by 
section 135, is amended by adding at the end the following:

``Sec. 1308. Filing of prepetition tax returns

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

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

SEC. 817. STANDARDS FOR TAX DISCLOSURE.

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

SEC. 818. SETOFF OF TAX REFUNDS.

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

            TITLE IX--ANCILLARY AND OTHER CROSS-BORDER CASES

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

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

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

``Sec.
``1501. Purpose and scope of application.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``1502. Definitions.
``1503. International obligations of the United States.
``1504. Commencement of ancillary case.
``1505. Authorization to act in a foreign country.
``1506. Public policy exception.
``1507. Additional assistance.
``1508. Interpretation.

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

``1509. Right of direct access.
``1510. Limited jurisdiction.
``1511. Commencement of case under section 301 or 303.
``1512. Participation of a foreign representative in a case under this 
          title.
``1513. Access of foreign creditors to a case under this title.
``1514. Notification to foreign creditors concerning a case under this 
          title.

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

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

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

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

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``1528. Commencement of a case under this title after recognition of a 
          foreign main proceeding.
``1529. Coordination of a case under this title and a foreign 
          proceeding.
``1530. Coordination of more than 1 foreign proceeding.
``1531. Presumption of insolvency based on recognition of a foreign main 
          proceeding.
``1532. Rule of payment in concurrent proceedings.

``Sec. 1501. Purpose and scope of application

  ``(a) The purpose of this chapter is to incorporate the Model 
Law on Cross-Border Insolvency so as to provide effective 
mechanisms for dealing with cases of cross-border insolvency 
with the objectives of--
          ``(1) cooperation between--
                  ``(A) United States courts, United States 
                trustees, trustees, examiners, debtors, and 
                debtors in possession; and
                  ``(B) the courts and other competent 
                authorities of foreign countries involved in 
                cross-border insolvency cases;
          ``(2) greater legal certainty for trade and 
        investment;
          ``(3) fair and efficient administration of cross-
        border insolvencies that protects the interests of 
allcreditors, and other interested entities, including the debtor;
          ``(4) protection and maximization of the value of the 
        debtor's assets; and
          ``(5) facilitation of the rescue of financially 
        troubled businesses, thereby protecting investment and 
        preserving employment.
  ``(b) This chapter applies where--
          ``(1) assistance is sought in the United States by a 
        foreign court or a foreign representative in connection 
        with a foreign proceeding;
          ``(2) assistance is sought in a foreign country in 
        connection with a case under this title;
          ``(3) a foreign proceeding and a case under this 
        title with respect to the same debtor are taking place 
        concurrently; or
          ``(4) creditors or other interested persons in a 
        foreign country have an interest in requesting the 
        commencement of, or participating in, a case or 
        proceeding under this title.
  ``(c) This chapter does not apply to--
          ``(1) a proceeding concerning an entity identified by 
        exclusion in subsection 109(b);
          ``(2) an individual, or to an individual and such 
        individual's spouse, who have debts within the limits 
        specified in section 109(e) and who are citizens of the 
        United States or aliens lawfully admitted for permanent 
        residence in the United States; or
          ``(3) an entity subject to a proceeding under the 
        Securities Investor Protection Act, a stockbroker 
        subject to subchapter III of chapter 7 of this title, 
        or a commodity broker subject to subchapter IV of 
        chapter 7 of this title.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``Sec. 1502. Definitions

  ``For the purposes of this chapter, the term--
          ``(1) `debtor' means an entity that is the subject of 
        a foreign proceeding;
          ``(2) `establishment' means any place of operations 
        where the debtor carries out a nontransitory economic 
        activity;
          ``(3) `foreign court' means a judicial or other 
        authority competent to control or supervise a foreign 
        proceeding;
          ``(4) `foreign main proceeding' means a foreign 
        proceeding taking place in the country where the debtor 
        has the center of its main interests;
          ``(5) `foreign nonmain proceeding' means a foreign 
        proceeding, other than a foreign main proceeding, 
        taking place in a country where the debtor has an 
        establishment;
          ``(6) `trustee' includes a trustee, a debtor in 
        possession in a case under any chapter of this title, 
        or a debtor under chapter 9 of this title; and
          ``(7) `within the territorial jurisdiction of the 
        United States' when used with reference to property of 
        a debtor refers to tangible property located within the 
        territory of the United States and intangible property 
        deemed under applicable nonbankruptcy law to be located 
        within that territory, including any property subject 
        to attachment or garnishment that may properly be 
        seized or garnished by an action in a Federal or State 
        court in the United States.

``Sec. 1503. International obligations of the United States

  ``To the extent that this chapter conflicts with an 
obligation of the United States arising out of any treaty or 
other form of agreement to which it is a party with 1 or more 
other countries, the requirements of the treaty or agreement 
prevail.

``Sec. 1504. Commencement of ancillary case

  ``A case under this chapter is commenced by the filing of a 
petition for recognition of a foreign proceeding under section 
1515.

``Sec. 1505. Authorization to act in a foreign country

  ``A trustee or another entity (including an examiner) may be 
authorized by the court to act in a foreign country on behalf 
of an estate created under section 541. An entity authorized to 
act under this section may act in any way permitted by the 
applicable foreign law.

``Sec. 1506. Public policy exception

  ``Nothing in this chapter prevents the court from refusing to 
take an action governed by this chapter if the action would be 
manifestly contrary to the public policy of the United States.

``Sec. 1507. Additional assistance

  ``(a) Subject to the specific limitations stated elsewhere in 
this chapter the court, upon recognition of a foreign 
proceeding, the court may provide additional assistance to a 
foreign representative under this title or under other laws of 
the United States.
  ``(b) In determining whether to provide additional assistance 
under this title or under other laws of the United States, the 
court shall consider whether such additional assistance, 
consistent with the principles of comity, will reasonably 
assure--
          ``(1) just treatment of all holders of claims against 
        or interests in the debtor's property;
          ``(2) protection of claim holders in the United 
        States against prejudice and inconvenience in the 
        processing of claims in such foreign proceeding;
          ``(3) prevention of preferential or fraudulent 
        dispositions of property of the debtor;
          ``(4) distribution of proceeds of the debtor's 
        property substantially in accordance with the order 
        prescribed by this title; and
          ``(5) if appropriate, the provision of an opportunity 
        for a fresh start for the individual that such foreign 
        proceeding concerns.

``Sec. 1508. Interpretation

  ``In interpreting this chapter, the court shall consider its 
international origin, and the need to promote an application of 
this chapter that is consistent with the application of similar 
statutes adopted by foreign jurisdictions.

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

``Sec. 1509. Right of direct access

  ``(a) A foreign representative may commence a case under 
section 1504 of this title by filing with the court a petition 
for recognition of a foreign proceeding under section 1515 of 
this title.
  ``(b) If the court grants recognition under section 1515 of 
this title, and subject to any limitations that the court may 
impose consistent with the policy of this chapter--
          ``(1) the foreign representative has the capacity to 
        sue and be sued in a court in the United States;
          ``(2) the foreign representative may apply directly 
        to a court in the United States for appropriate relief 
        in that court; and
          ``(3) a court in the United States shall grant comity 
        or cooperation to the foreign representative.
  ``(c) A request for comity or cooperation by a foreign 
representative in a court in the United States shall be 
accompanied by a certified copy of an order granting 
recognition under section 1517 of this title.
  ``(d) If the court denies recognition under this chapter, the 
court may issue any appropriate order necessary to prevent the 
foreign representative from obtaining comity or cooperation 
from courts in the United States.
  ``(e) Whether or not the court grants recognition, and 
subject to sections 306 and 1510 of this title, a foreign 
representative is subject to applicable nonbankruptcy law.
  ``(f) Notwithstanding any other provision of this section, 
the failure of a foreign representative to commence a case or 
to obtain recognition under this chapter does not affect any 
right the foreign representative may have to sue in a court in 
the United State to collect or recover a claim which is the 
property of the debtor.''.

``Sec. 1510. Limited jurisdiction

  ``The sole fact that a foreign representative files a 
petition under section 1515 does not subject the foreign 
representative to the jurisdiction of any court in the United 
States for any other purpose.

``Sec. 1511. Commencement of case under section 301 or 303

  ``(a) Upon recognition, a foreign representative may 
commence--
          ``(1) an involuntary case under section 303; or
          ``(2) a voluntary case under section 301 or 302, if 
        the foreign proceeding is a foreign main proceeding.
  ``(b) The petition commencing a case under subsection (a) 
must be accompanied by certified copy of an order granting 
recognition. The court where the petition for recognition has 
been filed must be advised of the foreign representative's 
intent to commence a case under subsection (a) prior to such 
commencement.

``Sec. 1512. Participation of a foreign representative in a case under 
                    this title

  ``Upon recognition of a foreign proceeding, the foreign 
representative in that proceeding is entitled to participate as 
a party in interest in a case regarding the debtor under this 
title.

``Sec. 1513. Access of foreign creditors to a case under this title

  ``(a) Foreign creditors have the same rights regarding the 
commencement of, and participation in, a case under this title 
as domestic creditors.
  ``(b)(1) Subsection (a) does not change or codify present law 
as to the priority of claims under section 507 or 726 of this 
title, except that the claim of a foreign creditor under those 
sections shall not be given a lower priority than that of 
general unsecured claims without priority solely because the 
holder of such claim is a foreign creditor.
  ``(2)(A) Subsection (a) and paragraph (1) do not change or 
codify present law as to the allowability of foreign revenue 
claims or other foreign public law claims in a proceeding under 
this title.
  ``(B) Allowance and priority as to a foreign tax claim or 
other foreign public law claim shall be governed by any 
applicable tax treaty of the United States, under the 
conditions and circumstances specified therein.

``Sec. 1514. Notification to foreign creditors concerning a case under 
                    this title

  ``(a) Whenever in a case under this title notice is to be 
given to creditors generally or to any class or category of 
creditors, such notice shall also be given to the known 
creditors generally, or to creditors in the notified class or 
category, that do not have addresses in the United States. The 
court may order that appropriate steps be taken with a view to 
notifying any creditor whose address is not yet known.
  ``(b) Such notification to creditors with foreign addresses 
described in subsection (a) shall be given individually, unless 
the court considers that, under the circumstances, some other 
form of notification would be more appropriate. No letters 
rogatory or other similar formality is required.
  ``(c) When a notification of commencement of a case is to be 
given to foreign creditors, the notification shall--
          ``(1) indicate the time period for filing proofs of 
        claim and specify the place for their filing;
          ``(2) indicate whether secured creditors need to file 
        their proofs of claim; and
          ``(3) contain any other information required to be 
        included in such a notification to creditors under this 
        title and the orders of the court.
  ``(d) Any rule of procedure or order of the court as to 
notice or the filing of a claim shall provide such additional 
time to creditors with foreign addresses as is reasonable under 
the circumstances.

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

``Sec. 1515. Application for recognition of a foreign proceeding

  ``(a) A foreign representative applies to the court for 
recognition of the foreign proceeding in which the foreign 
representative has been appointed by filing a petition for 
recognition.
  ``(b) A petition for recognition shall be accompanied by--
          ``(1) a certified copy of the decision commencing the 
        foreign proceeding and appointing the foreign 
        representative;
          ``(2) a certificate from the foreign court affirming 
        the existence of the foreign proceeding and of the 
        appointment of the foreign representative; or
          ``(3) in the absence of evidence referred to in 
        paragraphs (1) and (2), any other evidence acceptable 
        to the court of the existence of the foreign proceeding 
        and of the appointment of the foreign representative.
  ``(c) A petition for recognition shall also be accompanied by 
a statement identifying all foreign proceedings with respect to 
the debtor that are known to the foreign representative.
  ``(d) The documents referred to in paragraphs (1) and (2) of 
subsection (b) must be translated into English. The court may 
require a translation into English of additional documents.

``Sec. 1516. Presumptions concerning recognition

  ``(a) If the decision or certificate referred to in section 
1515(b) indicates that the foreign proceeding is a foreign 
proceeding as defined in section 101 and that the person or 
body is a foreign representative as defined in section 101, the 
court is entitled to so presume.
  ``(b) The court is entitled to presume that documents 
submitted in support of the petition for recognition are 
authentic, whether or not they have been legalized.
  ``(c) In the absence of evidence to the contrary, the 
debtor's registered office, or habitual residence in the case 
of an individual, is presumed to be the center of the debtor's 
main interests.

``Sec. 1517. Order recognizing a foreign proceeding

  ``(a) Subject to section 1506, after notice and a hearing an 
order recognizing a foreign proceeding shall be entered if--
          ``(1) the foreign proceeding is a foreign main 
        proceeding or foreign nonmain proceeding within the 
        meaning of section 1502;
          ``(2) the foreign representative applying for 
        recognition is a person or body as defined in section 
        101; and
          ``(3) the petition meets the requirements of section 
        1515.
  ``(b) The foreign proceeding shall be recognized--
          ``(1) as a foreign main proceeding if it is taking 
        place in the country where the debtor has the center of 
        its main interests; or
          ``(2) as a foreign nonmain proceeding if the debtor 
        has an establishment within the meaning of section 1502 
        in the foreign country where the proceeding is pending.
  ``(c) A petition for recognition of a foreign proceeding 
shall be decided upon at the earliest possible time. Entry of 
an order recognizing a foreign proceeding constitutes 
recognition under this chapter.
  ``(d) The provisions of this subchapter do not prevent 
modification or termination of recognition if it is shown that 
the grounds for granting it were fully or partially lacking or 
have ceased to exist, but in considering such action the court 
shall give due weight to possible prejudice to parties that 
have relied upon the granting of recognition. The case under 
this chapter may be closed in the manner prescribed under 
section 350.

``Sec. 1518. Subsequent information

  ``From the time of filing the petition for recognition of the 
foreign proceeding, the foreign representative shall file with 
the court promptly a notice of change of status concerning--
          ``(1) any substantial change in the status of the 
        foreign proceeding or the status of the foreign 
        representative's appointment; and
          ``(2) any other foreign proceeding regarding the 
        debtor that becomes known to the foreign 
        representative.

``Sec. 1519. Relief that may be granted upon petition for recognition 
                    of a foreign proceeding

  ``(a) From the time of filing a petition for recognition 
until the court rules on the petition, the court may, at the 
request of the foreign representative, where relief is urgently 
needed to protect the assets of the debtor or the interests of 
the creditors, grant relief of a provisional nature, 
including--
          ``(1) staying execution against the debtor's assets;
          ``(2) entrusting the administration or realization of 
        all or part of the debtor's assets located in the 
        United States to the foreign representative or another 
        person authorized by the court, including an examiner, 
        in order to protect and preserve the value of assets 
        that, by their nature or because of other 
        circumstances, are perishable, susceptible to 
        devaluation or otherwise in jeopardy; and
          ``(3) any relief referred to in paragraph (3), (4), 
        or (7) of section 1521(a).
  ``(b) Unless extended under section 1521(a)(6), the relief 
granted under this section terminates when the petition for 
recognition is decided upon.
  ``(c) It is a ground for denial of relief under this section 
that such relief would interfere with the administration of a 
foreign main proceeding.
  ``(d) The court may not enjoin a police or regulatory act of 
a governmental unit, including a criminal action or proceeding, 
under this section.
  ``(e) The standards, procedures, and limitations applicable 
to an injunction shall apply to relief under this section.

``Sec. 1520. Effects of recognition of a foreign main proceeding

  ``(a) Upon recognition of a foreign proceeding that is a 
foreign main proceeding--
          ``(1) sections 361 and 362 with respect to the debtor 
        and that property of the debtor that is within the 
        territorial jurisdiction of the United States;
          ``(2) sections 363, 549, and 552 of this title apply 
        to a transfer of an interest of the debtor in property 
        that is within the territorial jurisdiction of the 
        United States to the same extent that the sections 
        would apply to property of an estate;
          ``(3) unless the court orders otherwise, the foreign 
        representative may operate the debtor's business and 
        may exercise the rights and powers of a trustee under 
        and to the extent provided by sections 363 and 552; and
          ``(4) section 552 applies to property of the debtor 
        that is within the territorial jurisdiction of the 
        United States.''.
  ``(b) Subsection (a) does not affect the right to commence an 
individual action or proceeding in a foreign country to the 
extent necessary to preserve a claim against the debtor.
  ``(c) Subsection (a) does not affect the right of a foreign 
representative or an entity to file a petition commencing a 
case under this title or the right of any party to file claims 
or take other proper actions in such a case.

``Sec. 1521. Relief that may be granted upon recognition of a foreign 
                    proceeding

  ``(a) Upon recognition of a foreign proceeding, whether main 
or nonmain, where necessary to effectuate the purpose of this 
chapter and to protect the assets of the debtor or the 
interests of the creditors, the court may, at the request of 
the foreign representative, grant any appropriate relief, 
including--
          ``(1) staying the commencement or continuation of an 
        individual action or proceeding concerning the debtor's 
        assets, rights, obligations or liabilities to the 
        extent they have not been stayed under section 1520(a);
          ``(2) staying execution against the debtor's assets 
        to the extent it has not been stayed under section 
        1520(a);
          ``(3) suspending the right to transfer, encumber or 
        otherwise dispose of any assets of the debtor to the 
        extent this right has not been suspended under section 
        1520(a);
          ``(4) providing for the examination of witnesses, the 
        taking of evidence or the delivery of information 
        concerning the debtor's assets, affairs, rights, 
        obligations or liabilities;
          ``(5) entrusting the administration or realization of 
        all or part of the debtor's assets within the 
        territorial jurisdiction of the United States to the 
        foreign representative or another person, including an 
        examiner, authorized by the court;
          ``(6) extending relief granted under section 1519(a); 
        and
          ``(7) granting any additional relief that may be 
        available to a trustee, except for relief available 
        under sections 522, 544, 545, 547, 548, 550, and 
        724(a).
  ``(b) Upon recognition of a foreign proceeding, whether main 
or nonmain, the court may, at the request of the foreign 
representative, entrust the distribution of all or part of the 
debtor's assets located in the United States to the foreign 
representative or another person, including an examiner, 
authorized by the court, provided that the court is satisfied 
that the interests of creditors in the United States are 
sufficiently protected.
  ``(c) In granting relief under this section to a 
representative of a foreign nonmain proceeding, the court must 
be satisfied that the relief relates to assets that, under the 
law of the United States, should be administered in the foreign 
nonmain proceeding or concerns information required in that 
proceeding.
  ``(d) The court may not enjoin a police or regulatory act of 
a governmental unit, including a criminal action or proceeding, 
under this section.
  ``(e) The standards, procedures, and limitations applicable 
to an injunction shall apply to relief under paragraphs (1), 
(2), (3), and (6) of subsection (a).

``Sec. 1522. Protection of creditors and other interested persons

  ``(a) The court may grant relief under section 1519 or 1521, 
or may modify or terminate relief under subsection (c), only if 
the interests of the creditors and other interested entities, 
including the debtor, are sufficiently protected.
  ``(b) The court may subject relief granted under section 1519 
or 1521, or the operation of the debtor's business under 
section 1520(a)(3) of this title, to conditions it considers 
appropriate, including the giving of security or the filing of 
a bond.
  ``(c) The court may, at the request of the foreign 
representative or an entity affected by relief granted under 
section 1519 or 1521, or at its own motion, modify or terminate 
such relief.
  ``(d) Section 1104(d) shall apply to the appointment of an 
examiner under this chapter. Any examiner shall comply with the 
qualification requirements imposed on a trustee by section 322.

``Sec. 1523. Actions to avoid acts detrimental to creditors

  ``(a) Upon recognition of a foreign proceeding, the foreign 
representative has standing in a case concerning the debtor 
pending under another chapter of this title to initiate actions 
under sections 522, 544, 545, 547, 548, 550, and 724(a).
  ``(b) When the foreign proceeding is a foreign nonmain 
proceeding, the court must be satisfied that an action under 
subsection

(a) relates to assets that, under United States law, should be 
administered in the foreign nonmain proceeding.

``Sec. 1524. Intervention by a foreign representative

  ``Upon recognition of a foreign proceeding, the foreign 
representative may intervene in any proceedings in a State or 
Federal court in the United States in which the debtor is a 
party.

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

``Sec. 1525. Cooperation and direct communication between the court and 
                    foreign courts or foreign representatives

  ``(a) Consistent with section 1501, the court shall cooperate 
to the maximum extent possible with foreign courts or foreign 
representatives, either directly or through the trustee.
  ``(b) The court is entitled to communicate directly with, or 
to request information or assistance directly from, foreign 
courts or foreign representatives, subject to the rights of 
parties in interest to notice and participation.

``Sec. 1526. Cooperation and direct communication between the trustee 
                    and foreign courts or foreign representatives

  ``(a) Consistent with section 1501, the trustee or other 
person, including an examiner, authorized by the court, shall, 
subject to the supervision of the court, cooperate to the 
maximum extent possible with foreign courts or foreign 
representatives.
  ``(b) The trustee or other person, including an examiner, 
authorized by the court is entitled, subject to the supervision 
of the court, to communicate directly with foreign courts or 
foreign representatives.

``Sec. 1527. Forms of cooperation

  ``Cooperation referred to in sections 1525 and 1526 may be 
implemented by any appropriate means, including--
          ``(1) appointment of a person or body, including an 
        examiner, to act at the direction of the court;
          ``(2) communication of information by any means 
        considered appropriate by the court;
          ``(3) coordination of the administration and 
        supervision of the debtor's assets and affairs;
          ``(4) approval or implementation of agreements 
        concerning the coordination of proceedings; and
          ``(5) coordination of concurrent proceedings 
        regarding the same debtor.

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``Sec. 1528. Commencement of a case under this title after recognition 
                    of a foreign main proceeding

  ``After recognition of a foreign main proceeding, a case 
under another chapter of this title may be commenced only if 
the debtor has assets in the United States. The effects of such 
case shall be restricted to the assets of the debtor that are 
within the territorial jurisdiction of the United States and, 
to the extent necessary to implement cooperation and 
coordination under sections 1525, 1526, and 1527, to other 
assets of the debtor that are within the jurisdiction of the 
court under sections 541(a) of this title, and 1334(e) of title 
28, to the extent that such other assets are not subject to the 
jurisdiction and control of a foreign proceeding that has been 
recognized under this chapter.

``Sec. 1529. Coordination of a case under this title and a foreign 
                    proceeding

  ``Where a foreign proceeding and a case under another chapter 
of this title are taking place concurrently regarding the same 
debtor, the court shall seek cooperation and coordination under 
sections 1525, 1526, and 1527, and the following shall apply:
          ``(1) When the case in the United States is taking 
        place at the time the petition for recognition of the 
        foreign proceeding is filed--
                  ``(A) any relief granted under sections 1519 
                or 1521 must be consistent with the relief 
                granted in the case in the United States; and
                  ``(B) even if the foreign proceeding is 
                recognized as a foreign main proceeding, 
                section 1520 does not apply.
          ``(2) When a case in the United States under this 
        title commences after recognition, or after the filing 
        of the petition for recognition, of the foreign 
        proceeding--
                  ``(A) any relief in effect under sections 
                1519 or 1521 shall be reviewed by the court and 
                shall be modified or terminated if inconsistent 
                with the case in the United States; and
                  ``(B) if the foreign proceeding is a foreign 
                main proceeding, the stay and suspension 
                referred to in section 1520(a) shall be 
                modified or terminated if inconsistent with the 
                relief granted in the case in the United 
                States.
          ``(3) In granting, extending, or modifying relief 
        granted to a representative of a foreign nonmain 
        proceeding, the court must be satisfied that the relief 
        relates to assets that, under the law of the United 
        States, should be administered in the foreign nonmain 
        proceeding or concerns information required in that 
        proceeding.
          ``(4) In achieving cooperation and coordination under 
        sections 1528 and 1529, the court may grant any of the 
        relief authorized under section 305.

``Sec. 1530. Coordination of more than 1 foreign proceeding

  ``In matters referred to in section 1501, with respect to 
more than 1 foreign proceeding regarding the debtor, the court 
shall seek cooperation and coordination under sections 1525, 
1526, and 1527, and the following shall apply:
          ``(1) Any relief granted under section 1519 or 1521 
        to a representative of a foreign nonmain proceeding 
        after recognition of a foreign main proceeding must be 
        consistent with the foreign main proceeding.
          ``(2) If a foreign main proceeding is recognized 
        after recognition, or after the filing of a petition 
        for recognition, of a foreign nonmain proceeding, any 
        relief in effect under section 1519 or 1521 shall be 
        reviewed by the court and shall be modified or 
        terminated if inconsistent with the foreign main 
        proceeding.
          ``(3) If, after recognition of a foreign nonmain 
        proceeding, another foreign nonmain proceeding is 
        recognized, the court shall grant, modify, or terminate 
        relief for the purpose of facilitating coordination of 
        the proceedings.

``Sec. 1531. Presumption of insolvency based on recognition of a 
                    foreign main proceeding

  ``In the absence of evidence to the contrary, recognition of 
a foreign main proceeding is for the purpose of commencing a 
proceeding under section 303, proof that the debtor is 
generally not paying its debts as such debts become due.

``Sec. 1532. Rule of payment in concurrent proceedings

  ``Without prejudice to secured claims or rights in rem, a 
creditor who has received payment with respect to its claim in 
a foreign proceeding pursuant to a law relating to insolvency 
may not receive a payment for the same claim in a case under 
any other chapter of this title regarding the debtor, so long 
as the payment to other creditors of the same class is 
proportionately less than the payment the creditor has already 
received.''.
  (b) Clerical Amendment.--The table of chapters for title 11, 
United States Code, is amended by inserting after the item 
relating to chapter 13 the following:

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

SEC. 902. AMENDMENTS TO OTHER CHAPTERS IN TITLE 11, UNITED STATES CODE.

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

                 TITLE X--FINANCIAL CONTRACT PROVISIONS

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

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

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

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

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

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

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

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

SEC. 1005. CLARIFYING AMENDMENT RELATING TO MASTER AGREEMENTS.

  Section 11(e)(8)(D)(vii) of the Federal Deposit Insurance Act 
(12 U.S.C. 1821(e)(8)(D)(vii)) is amended to read as follows:
                          ``(vii) Treatment of master agreement 
                        as 1 agreement.--Any master agreement 
                        for any contract or agreement described 
                        in any preceding clause of this 
                        subparagraph (or any master agreement 
                        for such master agreement or 
                        agreements), together with all 
                        supplements to such master agreement, 
                        shall be treated as a single agreement 
                        and a single qualified financial 
                        contract. If a master agreement 
                        contains provisions relating to 
                        agreements or transactions that are not 
                        themselves qualified financial 
                        contracts, the master agreement shall 
                        be deemed to be a qualified financial 
                        contract only with respect to those 
                        transactions that are themselves 
                        qualified financial contracts.''.

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

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

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

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

SEC. 1007. BANKRUPTCY CODE AMENDMENTS.

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

``Sec. 555. Contractual right to liquidate, terminate, or accelerate a 
                    securities contract''; and

          (2) in the first sentence, by striking 
        ``liquidation'' and inserting ``liquidation, 
        termination, or acceleration''.
  (h) Termination or Acceleration of Commodities or Forward 
Contracts.--Section 556 of title 11, United States Code, is 
amended--
          (1) by amending the section heading to read as 
        follows:

``Sec. 556. Contractual right to liquidate, terminate, or accelerate a 
                    commodities contract or forward contract''; and

          (2) in the first sentence, by striking 
        ``liquidation'' and inserting ``liquidation, 
        termination, or acceleration''.
  (i) Termination or Acceleration of Repurchase Agreements.--
Section 559 of title 11, United States Code, is amended--
          (1) by amending the section heading to read as 
        follows:

``Sec. 559. Contractual right to liquidate, terminate, or accelerate a 
                    repurchase agreement''; and

          (2) in the first sentence, by striking 
        ``liquidation'' and inserting ``liquidation, 
        termination, or acceleration''.
  (j) Liquidation, Termination, or Acceleration of Swap 
Agreements.--Section 560 of title 11, United States Code, is 
amended--
          (1) by amending the section heading to read as 
        follows:

``Sec. 560. Contractual right to liquidate, terminate, or accelerate a 
                    swap agreement''; and

          (2) in the first sentence, by striking ``termination 
        of a swap agreement'' and inserting ``liquidation, 
        termination, or acceleration of 1 or more swap 
        agreements''; and
          (3) by striking ``in connection with any swap 
        agreement'' and inserting ``in connection with the 
        termination, liquidation, or acceleration of 1 or more 
        swap agreements''.
  (k) Liquidation, Termination, Acceleration, or Offset Under a 
Master Netting Agreement and Across Contracts.--(1) Title 11, 
United States Code, is amended by inserting after section 560 
the following:

``Sec. 561. Contractual right to terminate, liquidate, accelerate, or 
                    offset under a master netting agreement and across 
                    contracts

  ``(a) In General.--Subject to subsection (b), the exercise of 
any contractual right, because of a condition of the kind 
specified in section 365(e)(1), to cause the termination, 
liquidation, or acceleration of or to offset or net termination 
values, payment amounts or other transfer obligations arising 
under or in connection with 1 or more (or the termination, 
liquidation, or acceleration of 1 or more)--
          ``(1) securities contracts, as defined in section 
        741(7);
          ``(2) commodity contracts, as defined in section 
        761(4);
          ``(3) forward contracts;
          ``(4) repurchase agreements;
          ``(5) swap agreements; or
          ``(6) master netting agreements,
shall not be stayed, avoided, or otherwise limited by operation 
of any provision of this title or by any order of a court or 
administrative agency in any proceeding under this title.
  ``(b) Exception.--
          ``(1) A party may exercise a contractual right 
        described in subsection (a) to terminate, liquidate, or 
        accelerate only to the extent that such party could 
        exercise such a right under section 555, 556, 559, or 
        560 for each individual contract covered by the master 
        netting agreement in issue.
          ``(2) If a debtor is a commodity broker subject to 
        subchapter IV of chapter 7 of this title--
                  ``(A) a party may not net or offset an 
                obligation to the debtor arising under, or in 
                connection with, a commodity contract against 
                any claim arising under, or in connection with, 
                other instruments, contracts, or agreements 
                listed in subsection (a) except to the extent 
                the party has positive net equity in the 
                commodity accounts at the debtor, as calculated 
                under subchapter IV; and
                  ``(B) another commodity broker may not net or 
                offset an obligation to the debtor arising 
                under, or in connection with, a commodity 
                contract entered into or held on behalf of a 
                customer of the debtor against any claim 
                arising under, or in connection with, other 
                instruments, contracts, or agreements listed in 
                subsection (a).
  ``(c) Definition.--As used in this section, the term 
`contractual right' includes a right set forth in a rule or 
bylaw of a national securities exchange, a national securities 
association, or a securities clearing agency, a right set forth 
in a bylaw of a clearing organization or contract market or in 
a resolution of the governing board thereof, and a right, 
whether or not evidenced in writing, arising under common law, 
under law merchant, or by reason of normal business 
practice.''.
  (2) Conforming amendment.--The table of sections of chapter 9 
of title 11, United States Code, is amended by inserting after 
the item relating to section 560 the following:

``561. Contractual right to terminate, liquidate, accelerate, or offset 
          under a master netting agreement and across contracts.
  (l) Ancillary Proceedings.--Section 304 of title 11, United 
States Code, as amended by section 215, is amended by adding at 
the end the following:
  ``(c) Any provisions of this title relating to securities 
contracts, commodity contracts, forward contracts, repurchase 
agreements, swap agreements, or master netting agreements shall 
apply in a case ancillary to a foreign proceeding under this 
section or any other section of this title, so that enforcement 
of contractual provisions of such contracts and agreements in 
accordance with their terms will not be stayed or otherwise 
limited by operation of any provision of this title or by order 
of a court in any case under this title, and to limit avoidance 
powers to the same extent as in a proceeding under chapter 7 or 
11 of this title (such enforcement not to be limited based on 
the presence or absence of assets of the debtor in the United 
States).''.
  (m) Commodity Broker Liquidations.--Title 11, United States 
Code, is amended by inserting after section 766 the following:

``Sec. 767. Commodity broker liquidation and forward contract 
                    merchants, commodity brokers, stockbrokers, 
                    financial institutions, securities clearing 
                    agencies, swap participants, repo participants, and 
                    master netting agreement participants

  ``Notwithstanding any other provision of this title, the 
exercise of rights by a forward contract merchant, commodity 
broker, stockbroker, financial institution, securities clearing 
agency, swap participant, repo participant, or master netting 
agreement participant under this title shall not affect the 
priority of any unsecured claim it may have after the exercise 
of such rights.''.
  (n) Stockbroker Liquidations.--Title 11, United States Code, 
is amended by inserting after section 752 the following:

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

  ``Notwithstanding any other provision of this title, the 
exercise of rights by a forward contract merchant, commodity 
broker, stockbroker, financial institution, securities clearing 
agency, swap participant, repo participant, financial 
participant, or master netting agreement participant under this 
title shall not affect the priority of any unsecured claim it 
may have after the exercise of such rights.''.
  (o) Setoff.--Section 553 of title 11, United States Code, is 
amended--
          (1) in subsection (a)(3)(C), by inserting ``(except 
        for a setoff of a kind described in section 362(b)(6), 
        362(b)(7), 362(b)(17), 362(b)(19), 555, 556, 559, 560 
        or 561 of this title)'' before the period; and
          (2) in subsection (b)(1), by striking ``362(b)(14),'' 
        and inserting ``362(b)(17), 362(b)(19), 555, 556, 559, 
        560, 561''.
  (p) Securities Contracts, Commodity Contracts, and Forward 
Contracts.--Title 11, United States Code, is amended--
          (1) in section 362(b)(6), by striking ``financial 
        institutions,'' each place such term appears and 
        inserting ``financial institution, financial 
        participant'';
          (2) in section 546(e), by inserting ``financial 
        participant,'' after ``financial institution,'';
          (3) in section 548(d)(2)(B), by inserting ``financial 
        participant,'' after ``financial institution,'';
          (4) in section 555--
                  (A) by inserting ``financial participant,'' 
                after ``financial institution,''; and
                  (B) by inserting before the period at the end 
                ``, a right set forth in a bylaw of a clearing 
                organization or contract market or in a 
                resolution of the governing board thereof, and 
                a right, whether or not in writing, arising 
                under common law, under law merchant, or by 
                reason of normal business practice''; and
          (5) in section 556, by inserting ``, financial 
        participant'' after ``commodity broker''.
  (q) Conforming Amendments.--Title 11 of the United States 
Code is amended--
          (1) in the table of sections of chapter 5--
                  (A) by amending the items relating to 
                sections 555 and 556 to read as follows:

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

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

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

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

SEC. 1008. RECORDKEEPING REQUIREMENTS.

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

SEC. 1009. EXEMPTIONS FROM CONTEMPORANEOUS EXECUTION ---REQUIREMENT.

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

SEC. 1010. DAMAGE MEASURE.

  (a) Title 11, United States Code, as amended by section 1007, 
is amended--
          (1) by inserting after section 561 the following:

``Sec. 562. Damage measure in connection with swap agreements, 
                    securities contracts, forward contracts, commodity 
                    contracts, repurchase agreements, or master netting 
                    agreements

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

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

SEC. 1011. SIPC STAY.

  Section 5(b)(2) of the Securities Investor Protection Act of 
1970 (15 U.S.C. 78eee(b)(2)) is amended by adding after 
subparagraph (B) the following new subparagraph:
                  ``(C) Exception from stay.--
                          ``(i) Notwithstanding section 362 of 
                        title 11, United States Code, neither 
                        the filing of an application under 
                        subsection (a)(3) nor any order or 
                        decree obtained by Securities Investor 
                        Protection Corporation from the court 
                        shall operate as a stay of any 
                        contractual rights of a creditor to 
                        liquidate, terminate, or accelerate a 
                        securities contract, commodity 
                        contract, forward contract, repurchase 
                        agreement, swap agreement, or master 
                        netting agreement, each as defined in 
                        title 11, to offset or net termination 
                        values, payment amounts, or other 
                        transfer obligations arising under or 
                        in connection with 1 or more of such 
                        contracts or agreements, or to 
                        foreclose on any cash collateral 
                        pledged by the debtor whether or not 
                        with respect to 1 or more of such 
                        contracts or agreements.
                          ``(ii) Notwithstanding clause (i), 
                        such application, order, or decree may 
                        operate as a stay of the foreclosure on 
                        securities collateral pledged by the 
                        debtor, whether or not with respect to 
                        1 or more of such contracts or 
                        agreements, securities sold by the 
                        debtor under a repurchase agreement or 
                        securities lent under a securities 
                        lending agreement.
                          ``(iii) As used in this section, the 
                        term `contractual right' includes a 
                        right set forth in a rule or bylaw of a 
                        national securities exchange, a 
                        national securities association, or a 
                        securities clearing agency, a right set 
                        forth in a bylaw of a clearing 
                        organization or contract market or in a 
                        resolution of the governing board 
                        thereof, and a right, whether or not in 
                        writing, arising under common law, 
                        under law merchant, or by reason of 
                        normal business practice.''.

SEC. 1012. ASSET-BACKED SECURITIZATIONS.

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

SEC. 1013. FEDERAL RESERVE COLLATERAL REQUIREMENTS.

  The 3d sentence of the 3d undesignated paragraph of section 
16 of the Federal Reserve Act (12 U.S.C. 412) is amended by 
striking ``acceptances acquired under the provisions of section 
13 of this Act'' and inserting ``acceptances acquired under 
section 10A, 10B, 13, or 13A of this Act''.

SEC. 1014. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

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

                    TITLE XI--TECHNICAL CORRECTIONS

SEC. 1101. DEFINITIONS.

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

SEC. 1102. ADJUSTMENT OF DOLLAR AMOUNTS.

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

SEC. 1103. EXTENSION OF TIME.

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

SEC. 1104. TECHNICAL AMENDMENTS.

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

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

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

SEC. 1106. LIMITATION ON COMPENSATION OF PROFESSIONAL PERSONS.

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

SEC. 1107. SPECIAL TAX PROVISIONS.

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

SEC. 1108. EFFECT OF CONVERSION.

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

SEC. 1109. ALLOWANCE OF ADMINISTRATIVE EXPENSES.

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

SEC. 1110. PRIORITIES.

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

SEC. 1111. EXEMPTIONS.

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

SEC. 1112. EXCEPTIONS TO DISCHARGE.

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

SEC. 1113. EFFECT OF DISCHARGE.

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

SEC. 1114. PROTECTION AGAINST DISCRIMINATORY TREATMENT.

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

SEC. 1115. PROPERTY OF THE ESTATE.

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

SEC. 1116. PREFERENCES.

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

SEC. 1117. POSTPETITION TRANSACTIONS.

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

SEC. 1118. DISPOSITION OF PROPERTY OF THE ESTATE.

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

SEC. 1119. GENERAL PROVISIONS.

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

SEC. 1120. APPOINTMENT OF ELECTED TRUSTEE.

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

SEC. 1121. ABANDONMENT OF RAILROAD LINE.

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

SEC. 1122. CONTENTS OF PLAN.

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

SEC. 1123. DISCHARGE UNDER CHAPTER 12.

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

SEC. 1124. BANKRUPTCY CASES AND PROCEEDINGS.

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

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

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

SEC. 1126. TRANSFERS MADE BY NONPROFIT CHARITABLE CORPORATIONS.

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

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

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

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

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

SEC. 1129. TRUSTEES.

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

      TITLE XII--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS

SEC. 1201. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

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

                                
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