Calendar No. 434

104TH CONGRESS

2D SESSION S. 1559

A BILL

To make technical corrections to title 11, United

States Code, and for other purposes.

JUNE 13, 1996

Reported with an amendment
II

Calendar No. 434

104TH CONGRESS

2D SESSION S. 1559

To make technical corrections to title 11, United States Code, and for other

purposes.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 6, 1996

Mr. GRASSLEY (for himself and Mr. HEFLIN) introduced the following bill;

which was read twice and referred to the Committee on the Judiciary

JUNE 13, 1996

Reported by Mr. HATCH, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To make technical corrections to title 11, United States

Code, and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Bankruptcy Technical

5 Corrections Act of 1996’’.
2

S 1559 RS

1 SEC. 2. DEFINITIONS.

2 Section 101 of title 11, United States Code, is

3 amended—

4 (1) by striking ‘‘In this title—’’ and inserting

5 ‘‘In this title:’’;

6 (2) in paragraph (51B)—

7 (A) by inserting ‘‘family farms and’’ after

8 ‘‘other than’’; and

9 (B) by striking all after ‘‘thereto’’ and in10 serting a semicolon;

11 (3) by reordering the paragraphs so that the

12 terms defined in the section are in alphabetical order

13 and redesignating the paragraphs accordingly;

14 (4) in paragraph (37)(B), as redesignated, by

15 striking ‘‘paragraphs (21B) and (33)(A)’’ and in16 serting ‘‘paragraphs (23) and (35)(A)’’;

17 (5) in each paragraph, by inserting a heading,

18 the text of which is comprised of the term defined

19 in the paragraph;

20 (6) by inserting ‘‘The term’’ after each para21 graph heading; and

22 (7) by striking the semicolon at the end of each

23 paragraph and ‘‘; and’’ at the end of paragraphs

24 (35) and (38) and inserting a period.
3

S 1559 RS

1 SEC. 3. ADJUSTMENT OF DOLLAR AMOUNTS.

2 Section 104 of title 11, United States Code, is

3 amended by inserting ‘‘522(f)(3),’’ after ‘‘522(d),’’ each

4 place it appears.

5 SEC. 4. COMPENSATION TO OFFICERS.

6 Section 330(a) of title 11, United States Code, is

7 amended—

8 (1) in paragraph (1), by inserting ‘‘, or the

9 debtor’s attorney’’ after ‘‘1103’’;

10 (2) in paragraph (3), by striking ‘‘(3)(A) In’’

11 and inserting ‘‘(3) In’’; and

12 (3) in paragraph (4)(A)(ii)(I), by striking ‘‘or’’

13 and inserting ‘‘and’’.

14 SEC. 5. EFFECT OF CONVERSION.

15 Section 348(f)(2) of title 11, United States Code, is

16 amended by inserting ‘‘of the estate’’ after ‘‘property’’ the

17 first place it appears.

18 SEC. 6. ALLOWANCE OF ADMINISTRATIVE EXPENSES.

19 Section 503(b)(4) of title 11, United States Code, is

20 amended by inserting ‘‘subparagraph (A), (B), (C), (D),

21 or (E) of’’ after ‘‘under’’.

22 SEC. 7. PRIORITIES.

23 Section 507(a)(7) of title 11, United States Code, is

24 amended by inserting ‘‘unsecured’’ after ‘‘allowed’’.
4

S 1559 RS

1 SEC. 8. EXEMPTIONS.

2 Section 522 of title 11, United States Code, is

3 amended—

4 (1) in subsections (b)(1) and (d)(10)(E), by

5 striking ‘‘unless’’ and inserting ‘‘but only to the ex6 tent that’’; and

7 (2) in subsection (f)(1)(A)(ii)(II), by striking

8 ‘‘support.;’’ and inserting ‘‘support;’’.

9 SEC. 9. EXCEPTIONS TO DISCHARGE.

10 Section 523(a)(3) of title 11, United States Code, is

11 amended by striking ‘‘or (6)’’ each place it appears and

12 inserting ‘‘(6), or (15)’’;

13 SEC. 10. PROTECTION AGAINST DISCRIMINATORY TREAT14 MENT.

15 Section 525(c) of title 11, United States Code, is

16 amended—

17 (1) in paragraph (1), by inserting ‘‘student’’ be18 fore ‘‘grant’’ the second place it appears; and

19 (2) in paragraph (2), by striking ‘‘the program

20 operated under part B, D, or E of’’ and inserting

21 ‘‘any program operated under’’.

22 SEC. 11. PROPERTY OF THE ESTATE.

23 Section 541(b)(4)(B)(ii) of title 11, United States

24 Code (as added by section 208(b) of the Bankruptcy Re25 form Act of 1994), is amended by inserting ‘‘365 or’’ be26 fore ‘‘542’’.
5

S 1559 RS

1 SEC. 12. LIMITATIONS ON AVOIDING POWERS.

2 Subsection (g) of section 546 of title 11, United

3 States Code, as added by section 222(a) of the Bank4 ruptcy Reform Act of 1994 (108 Stat. 4129), is redesig5 nated as subsection (h).

6 SEC. 13. LIABILITY OF TRANSFEREE OF AVOIDED TRANS7 FER.

8 Section 550(c)(1) of title 11, United States Code, is

9 amended by striking ‘‘547(b)’’ and inserting ‘‘547’’.

10 SEC. 14. GENERAL PROVISIONS.

11 Section 901(a) of title 11, United States Code, is

12 amended by inserting ‘‘1123(d),’’ after ‘‘1123(b),’’.

13 SEC. 15. DISCHARGE.

14 Section 1228 of title 11, United States Code, is

15 amended by striking ‘‘1222(b)(10)’’ each place it appears

16 and inserting ‘‘1222(b)(9)’’.

17 SEC. 16. CONTENTS OF PLAN.

18 Section 1322 of title 11, United States Code, is

19 amended—

20 (1) in subsection (b), by striking ‘‘(c)’’ and in21 serting ‘‘(d)’’; and

22 (2) in subsection (e), by striking the comma

23 after ‘‘default’’ the second place it appears.

24 SEC. 17. DISCHARGE.

25 Section 1328(a) of title 11, United States Code, is

26 amended—
6

S 1559 RS

1 (1) in paragraph (1), by adding ‘‘or’’ after the

2 semicolon;

3 (2) in paragraph (2), by striking ‘‘or 523(a)(9)

4 of this title; or’’ and inserting a period; and

5 (3) in paragraph (3), by inserting ‘‘, or a fine

6 to the extent such fine exceeds $500,’’ after ‘‘restitu7 tion’’.

8 SEC. 18. BANKRUPTCY REVIEW COMMISSION.

9 Section 604 of the Bankruptcy Reform Act of 1994

10 (108 Stat. 4147) is amended—

11 (1) by striking subsection (g); and

12 (2) by redesignating subsection (h) as sub13 section (g).

14 SEC. 19. EFFECTIVE DATE OF AMENDMENTS.

15 The amendments made by this Act shall apply in all

16 cases or proceedings filed or commenced on or after March

17 22, 1996.

18 SECTION 1. SHORT TITLE.

19 This Act may be cited as the ‘‘Bankruptcy Technical

20 Corrections Act of 1996’’.

21 SEC. 2. DEFINITIONS.

22 Section 101 of title 11, United States Code, is amend23 ed—

24 (1) by striking ‘‘In this title—’’ and inserting

25 ‘‘In this title:’’;
7

S 1559 RS

1 (2) in paragraph (51B)—

2 (A) by inserting ‘‘family farms or’’ after

3 ‘‘other than’’; and

4 (B) by striking all after ‘‘thereto’’ and in5 serting a semicolon;

6 (3) by reordering the paragraphs so that the

7 terms defined in the section are in alphabetical order

8 and redesignating the paragraphs accordingly;

9 (4) in paragraph (37)(B) (defining insured de10 pository institution), as redesignated by paragraph

11 (3) of this section, by striking ‘‘paragraphs (21B) and

12 (33)(A)’’ and inserting ‘‘paragraphs (23) and

13 (35)(A)’’;

14 (5) in each paragraph, by inserting a heading,

15 the text of which is comprised of the term defined in

16 the paragraph;

17 (6) by inserting ‘‘The term’’ after each para18 graph heading; and

19 (7) by striking the semicolon at the end of each

20 paragraph and ‘‘; and’’ at the end of paragraphs (35)

21 and (38) and inserting a period.

22 SEC. 3. ADJUSTMENT OF DOLLAR AMOUNTS.

23 Section 104 of title 11, United States Code, is amended

24 by inserting ‘‘522(f)(3),’’ after ‘‘522(d),’’ each place it ap25 pears.
8

S 1559 RS

1 SEC. 4. COMPENSATION TO OFFICERS.

2 Section 330(a) of title 11, United States Code, is

3 amended—

4 (1) in paragraph (1), by inserting ‘‘, or the debt5 or’s attorney’’ after ‘‘1103’’; and

6 (2) in paragraph (3), by striking ‘‘(3)(A) In’’

7 and inserting ‘‘(3) In’’.

8 SEC. 5. EFFECT OF CONVERSION.

9 Section 348(f)(2) of title 11, United States Code, is

10 amended by inserting ‘‘of the estate’’ after ‘‘property’’ the

11 first place it appears.

12 SEC. 6. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

13 Section 365 of title 11, United States Code, is amend14 ed—

15 (1) in subsection (c)—

16 (A) in paragraph (2), by adding ‘‘or’’ at the

17 end;

18 (B) in paragraph (3), by striking ‘‘or’’ at

19 the end and inserting a period; and

20 (C) by striking paragraph (4);

21 (2) in subsection (d), by striking paragraphs (5)

22 through (9); and

23 (3) in subsection (f)(1), by striking ‘‘; except

24 that’’ and all that follows through the end of the para25 graph and inserting a period.
9

S 1559 RS

1 SEC. 7. ALLOWANCE OF ADMINISTRATIVE EXPENSES.

2 Section 503(b)(4) of title 11, United States Code, is

3 amended by inserting ‘‘subparagraph (A), (B), (C), (D), or

4 (E) of’’ before ‘‘paragraph (3)’’.

5 SEC. 8. PRIORITIES.

6 Section 507(a)(7) of title 11, United States Code, is

7 amended by inserting ‘‘unsecured’’ after ‘‘allowed’’.

8 SEC. 9. EXEMPTIONS.

9 Section 522 of title 11, United States Code, is amend10 ed—

11 (1) in each of subsections (b)(1) and (d)(10)(E),

12 by striking ‘‘unless’’ and inserting ‘‘but only to the

13 extent that’’;

14 (2) in subsection (f)(1)(A)(ii)(II), by striking

15 ‘‘support.;’’ and inserting ‘‘support;’’; and

16 (3) in subsection (g)(2), by striking ‘‘subsection

17 (f)(2)’’ and inserting ‘‘subsection (f)(1)(B)’’.

18 SEC. 10. EXCEPTIONS TO DISCHARGE.

19 Section 523(a)(3) of title 11, United States Code, is

20 amended by striking ‘‘or (6)’’ each place it appears and

21 inserting ‘‘(6), or (15)’’;

22 SEC. 11. PROTECTION AGAINST DISCRIMINATORY TREAT23 MENT.

24 Section 525(c) of title 11, United States Code, is

25 amended—
10

S 1559 RS

1 (1) in paragraph (1), by inserting ‘‘student’’ be2 fore ‘‘grant’’ the second place it appears; and

3 (2) in paragraph (2), by striking ‘‘the program

4 operated under part B, D, or E of’’ and inserting

5 ‘‘any program operated under’’.

6 SEC. 12. PROPERTY OF THE ESTATE.

7 Section 541(b)(4)(B)(ii) of title 11, United States Code

8 (as added by section 208(b) of the Bankruptcy Reform Act

9 of 1994), is amended by inserting ‘‘365 or’’ before ‘‘542’’.

10 SEC. 13. LIMITATIONS ON AVOIDING POWERS.

11 Subsection (g) of section 546 of title 11, United States

12 Code, as added by section 222(a) of the Bankruptcy Reform

13 Act of 1994 (108 Stat. 4129), is redesignated as subsection

14 (h).

15 SEC. 14. LIABILITY OF TRANSFEREE OF AVOIDED TRANS16 FER.

17 (a) IN GENERAL.—Section 550(c) of title 11, United

18 States Code, is amended—

19 (1) in paragraph (1), by striking ‘‘avoided under

20 section 547(b)’’ and inserting ‘‘avoidable under sec21 tion 547’’; and

22 (2) in the matter following paragraph (2), by

23 striking ‘‘recover under subsection (a) from a trans24 feree that is not an insider’’ and inserting ‘‘avoid

25 under section 547 such transfer, to the extent that
11

S 1559 RS

1 such transfer was made for the benefit of a transferee

2 that was not an insider at the time of such transfer,

3 or recover under subsection (a) from a transferee that

4 was not an insider at the time of such transfer’’.

5 (b) CONFORMING AMENDMENT.—Section 547(b) of title

6 11, United States Code, is amended by inserting ‘‘or in sec7 tion 550(c) of this title’’ after ‘‘subsection (c) of this sec8 tion’’.

9 SEC. 15. SETOFF.

10 Section 553(b)(1) is amended by striking ‘‘362(b)(14)’’

11 and inserting ‘‘362(b)(17)’’.

12 SEC. 16. DISPOSITION OF PROPERTY OF THE ESTATE.

13 Section 726(b) is amended by striking ‘‘1009,’’.

14 SEC. 17. GENERAL PROVISIONS.

15 Section 901(a) of title 11, United States Code, is

16 amended by inserting ‘‘1123(d),’’ after ‘‘1123(b),’’.

17 SEC. 18. PAYMENTS.

18 Section 1226(b)(2) is amended—

19 (1) by striking ‘‘1202(c) of this title’’ and insert20 ing ‘‘586(b) of title 28’’; and

21 (2) by striking ‘‘1202(d) of this title’’ and insert22 ing ‘‘586(e)(1)(B) of title 28’’.
12

S 1559 RS

1 SEC. 19. DISCHARGE.

2 Section 1228 of title 11, United States Code, is amend3 ed by striking ‘‘1222(b)(10)’’ each place it appears and in4 serting ‘‘1222(b)(9)’’.

5 SEC. 20. CONTENTS OF PLAN.

6 Section 1322 of title 11, United States Code, is amend7 ed—

8 (1) in subsection (b), by striking ‘‘(c)’’ and in9 serting ‘‘(d)’’; and

10 (2) in subsection (e), by striking the comma after

11 ‘‘default’’ the second place it appears.

12 SEC. 21. DISCHARGE.

13 Section 1328(a) of title 11, United States Code, is

14 amended by striking all after ‘‘except any debt—’’ and in15 serting the following:

16 ‘‘(1) provided for under section 1322(b)(5) of this

17 title;

18 ‘‘(2) of the kind specified in paragraph (5), (8),

19 or (9) of section 523(a) of this title; or

20 ‘‘(3) for restitution, or a criminal fine, included

21 in a sentence on the debtor’s conviction of a crime.’’.

22 SEC. 22. BANKRUPTCY REVIEW COMMISSION.

23 Section 604 of the Bankruptcy Reform Act of 1994

24 (108 Stat. 4147) is amended—

25 (1) by striking subsection (g); and
13

S 1559 RS

1 (2) by redesignating subsection (h) as subsection

2 (g).

3 SEC. 23. APPOINTMENT OF TRUSTEE.

4 Section 1104(b) of title 11, United States Code, is

5 amended—

6 (1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and

7 (2) by adding at the end the following new para8 graph:

9 ‘‘(2)(A) If an eligible, disinterested trustee is elected

10 at a meeting of creditors under paragraph (1), the United

11 States trustee shall file a report certifying that election.

12 Upon the filing of a report under the preceding sentence—

13 ‘‘(i) the trustee elected under paragraph (1) shall

14 be considered to have been selected and appointed for

15 purposes of this section; and

16 ‘‘(ii) the service of any trustee appointed under

17 subsection (d) shall terminate.

18 ‘‘(B) In the case of any dispute arising out of an elec19 tion under subparagraph (A), the court shall resolve the dis20 pute.’’.

21 SEC. 24. EXTENSIONS.

22 Section 302(d)(3) of the Bankruptcy, Judges, United

23 States Trustees, and Family Farmer Bankruptcy Act of

24 1986 (28 U.S.C. 581 note) is amended—
14

S 1559 RS

1 (1) in subparagraph (A), in the matter following

2 clause (ii), by striking ‘‘October 1, 2002’’ and insert3 ing ‘‘October 1, 2012’’; and

4 (2) in subparagraph (F)—

5 (A) in clause (i)—

6 (i) in subclause (II), by striking ‘‘Octo7 ber 1, 2002’’ and inserting ‘‘October 1,

8 2012’’; and

9 (ii) in the matter following subclause

10 (II), by striking ‘‘October 1, 2003’’ and in11 serting ‘‘October 1, 2013’’; and

12 (B) in clause (ii), in the matter following

13 subclause (II), by striking ‘‘October 1, 2003’’ and

14 inserting ‘‘October 1, 2013’’.

15 SEC. 25. KNOWING DISREGARD OF BANKRUPTCY LAW OR

16 RULE.

17 Section 156(a) of title 18, United States Code, is

18 amended by striking ‘‘case under this title’’ and inserting

19 ‘‘case under title 11’’.

20 SEC. 26. BANKRUPTCY CASES AND PROCEEDINGS.

21 Section 1334(d) of title 28, United States Code, is

22 amended—

23 (1) by striking ‘‘made under this subsection’’ and

24 inserting ‘‘made under subsection (c)’’; and
15

S 1559 RS

1 (2) by striking ‘‘This subsection’’ and inserting

2 ‘‘Subsection (c)’’.

3 SEC. 27. EFFECTIVE DATE OF AMENDMENTS.

4 (a) IN GENERAL.—Except as provided in subsection

5 (b) of this section, the amendments made by this Act shall

6 apply to all cases pending on the date of enactment of this

7 Act or commenced on or after the date of enactment of this

8 Act.

9 (b) EXCEPTION.—The amendment made by section

10 2(2)(B) of this Act shall apply to all cases commenced on

11 or after the date of enactment of this Act.