I

104TH CONGRESS

2D SESSION S. 1559

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 4, 1996

Referred to the Committee on the Judiciary

AN ACT

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’’.
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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 or’’ 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) (defining insured de15 pository institution), as redesignated by paragraph

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

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

18 (35)(A)’’;

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

20 the text of which is comprised of the term defined

21 in the paragraph;

22 (6) by inserting ‘‘The term’’ after each para23 graph heading; and

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

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

26 (35) and (38) and inserting a period.
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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’’; and

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

11 and inserting ‘‘(3) In’’.

12 SEC. 5. EFFECT OF CONVERSION.

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

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

15 first place it appears.

16 SEC. 6. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

17 Section 365 of title 11, United States Code, is

18 amended—

19 (1) in subsection (c)—

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

21 the end;

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

23 the end and inserting a period; and

24 (C) by striking paragraph (4);

25 (2) in subsection (d), by striking paragraphs

26 (5) through (9); and
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1 (3) in subsection (f)(1), by striking ‘‘; except

2 that’’ and all that follows through the end of the

3 paragraph and inserting a period.

4 SEC. 7. ALLOWANCE OF ADMINISTRATIVE EXPENSES.

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

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

7 or (E) of’’ before ‘‘paragraph (3)’’.

8 SEC. 8. PRIORITIES.

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

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

11 SEC. 9. EXEMPTIONS.

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

13 amended—

14 (1) in subsection (f)(1)(A)—

15 (A) in the matter preceding clause (i), by

16 striking ‘‘; or’’ at the end; and

17 (B) in clause (ii), by striking the period at

18 the end and inserting ‘‘; or’’; and

19 (2) in subsection (g)(2), by striking ‘‘subsection

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

21 SEC. 10. EXCEPTIONS TO DISCHARGE.

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

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

24 inserting ‘‘(6), or (15)’’;
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1 SEC. 11. PROTECTION AGAINST DISCRIMINATORY TREAT2 MENT.

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

4 amended—

5 (1) in paragraph (1), by inserting ‘‘student’’ be6 fore ‘‘grant’’ the second place it appears; and

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

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

9 ‘‘any program operated under’’.

10 SEC. 12. PROPERTY OF THE ESTATE.

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

12 Code (as added by section 208(b) of the Bankruptcy Re13 form Act of 1994), is amended by inserting ‘‘365 or’’ be14 fore ‘‘542’’.

15 SEC. 13. LIMITATIONS ON AVOIDING POWERS.

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

17 States Code, as added by section 222(a) of the Bank18 ruptcy Reform Act of 1994 (108 Stat. 4129), is redesig19 nated as subsection (h).

20 SEC. 14. LIABILITY OF TRANSFEREE OF AVOIDED TRANS21 FER.

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

23 States Code, is amended—

24 (1) in paragraph (1), by striking ‘‘avoided

25 under section 547(b)’’ and inserting ‘‘avoidable

26 under section 547’’; and
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1 (2) in the matter following paragraph (2), by

2 striking ‘‘recover under subsection (a) from a trans3 feree that is not an insider’’ and inserting ‘‘avoid

4 under section 547 such transfer, to the extent that

5 such transfer was made for the benefit of a trans6 feree that was not an insider at the time of such

7 transfer, or recover under subsection (a) from a

8 transferee that was not an insider at the time of

9 such transfer’’.

10 (b) CONFORMING AMENDMENT.—Section 547(b) of

11 title 11, United States Code, is amended by inserting ‘‘or

12 in section 550(c) of this title’’ after ‘‘subsection (c) of this

13 section’’.

14 SEC. 15. SETOFF.

15 Section 553(b)(1) is amended by striking

16 ‘‘362(b)(14)’’ and inserting ‘‘362(b)(17)’’.

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

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

19 SEC. 17. GENERAL PROVISIONS.

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

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

22 SEC. 18. PAYMENTS.

23 Section 1226(b)(2) is amended—

24 (1) by striking ‘‘1202(c) of this title’’ and in25 serting ‘‘586(b) of title 28’’; and
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1 (2) by striking ‘‘1202(d) of this title’’ and in2 serting ‘‘586(e)(1)(B) of title 28’’.

3 SEC. 19. DISCHARGE.

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

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

6 and inserting ‘‘1222(b)(9)’’.

7 SEC. 20. CONTENTS OF PLAN.

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

9 amended—

10 (1) in subsection (b), by striking ‘‘(c)’’ and in11 serting ‘‘(d)’’; and

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

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

14 SEC. 21. DISCHARGE.

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

16 amended by striking all after ‘‘except any debt—’’ and in17 serting the following:

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

19 this title;

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

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

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

23 in a sentence on the debtor’s conviction of a crime.’’.
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1 SEC. 22. BANKRUPTCY REVIEW COMMISSION.

2 Section 604 of the Bankruptcy Reform Act of 1994

3 (108 Stat. 4147) is amended—

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

5 (2) by redesignating subsection (h) as sub6 section (g).

7 SEC. 23. APPOINTMENT OF TRUSTEE.

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

9 amended—

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

11 (2) by adding at the end the following new

12 paragraph:

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

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

15 States trustee shall file a report certifying that election.

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

17 ‘‘(i) the trustee elected under paragraph (1)

18 shall be considered to have been selected and ap19 pointed for purposes of this section; and

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

21 subsection (d) shall terminate.

22 ‘‘(B) In the case of any dispute arising out of an elec23 tion under subparagraph (A), the court shall resolve the

24 dispute.’’.
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1 SEC. 24. EXTENSIONS.

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

3 States Trustees, and Family Farmer Bankruptcy Act of

4 1986 (28 U.S.C. 581 note) is amended—

5 (1) in subparagraph (A), in the matter follow6 ing clause (ii), by striking ‘‘October 1, 2002’’ and

7 inserting ‘‘October 1, 2012’’; and

8 (2) in subparagraph (F)—

9 (A) in clause (i)—

10 (i) in subclause (II), by striking ‘‘Oc11 tober 1, 2002’’ and inserting ‘‘October 1,

12 2012’’; and

13 (ii) in the matter following subclause

14 (II), by striking ‘‘October 1, 2003’’ and in15 serting ‘‘October 1, 2013’’; and

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

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

18 and inserting ‘‘October 1, 2013’’.

19 SEC. 25. KNOWING DISREGARD OF BANKRUPTCY LAW OR

20 RULE.

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

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

23 ‘‘case under title 11’’.

24 SEC. 26. BANKRUPTCY CASES AND PROCEEDINGS.

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

26 amended—
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1 (1) by striking ‘‘made under this subsection’’

2 and inserting ‘‘made under subsection (c)’’; and

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

4 ‘‘Subsection (c)’’.

5 SEC. 27. ENFORCEMENT OF CHILD SUPPORT.

6 Section 362(b)(1) of title 11, United States Code, is

7 amended by inserting before the semicolon the following:

8 ‘‘(including the criminal enforcement of a judicial order

9 requiring the payment of child support)’’.

10 SEC. 28. LIMITATION.

11 Section 522 of title 11, United States Code, as

12 amended by section 9, is further amended—

13 (1) in subsection (b)(2)(A), by inserting ‘‘sub14 ject to subsection (n),’’ before ‘‘any property’’; and

15 (2) by adding at the end the following new sub16 section:

17 ‘‘(n) As a result of electing under subsection

18 (b)(2)(A) to exempt property under State or local law, a

19 debtor may not exempt an aggregate interest of more than

20 $500,000 in value in—

21 ‘‘(1) real or personal property that the debtor

22 or a dependent of the debtor uses as a residence;

23 ‘‘(2) a cooperative that owns property that the

24 debtor or a dependent of the debtor uses as a resi25 dence; or
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1 ‘‘(3) a burial plot for the debtor or a dependent

2 of the debtor.’’.

3 SEC. 29. STANDING TRUSTEES.

4 (a) Section 330 of title 11 of the United States Code

5 is amended by adding to the end thereof the following:

6 ‘‘(e) Upon the request of a trustee appointed under

7 section 586(b) of title 28, and after all available adminis8 trative remedies have been exhausted, the district court

9 in the district in which the trustee resides shall have the

10 exclusive authority, notwithstanding section 326(b) of this

11 title, to review the determination of the actual, necessary

12 expenses of the standing trustee. In reviewing the deter13 mination, the district court shall accord substantial def14 erence to the determination made by the Attorney Gen15 eral, and may reverse the determination only if the Attor16 ney General has abused his or her discretion.’’.

17 (b) Section 324 of title 11, United States Code, is

18 amended by adding to the end thereof the following:

19 ‘‘(c)(1) Notwithstanding any provision of section 586

20 of title 28, in the event the United States Trustee ceases

21 assigning cases to a trustee appointed under section

22 586(b) of title 28, the trustee, after exhausting all avail23 able administrative remedies, may seek judicial review of

24 the decision in the district court in the district in which

25 the trustee resides. The district court shall accord sub-
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1 stantial deference to the determination made by the Unit2 ed States Trustee, and may reverse the determination only

3 if the United States Trustee has abused his or her discre4 tion.

5 ‘‘(2) Notwithstanding any other provision of law, the

6 district court may order interim relief under this para7 graph only if the court concludes, viewing all facts most

8 favorably to the United States Trustee, that there was no

9 basis for the United States Trustee’s decision to cease as10 signing cases to the trustee. The denial of a request for

11 interim relief shall be final and shall not be subject to fur12 ther review.’’.

13 SEC. 30. EFFECTIVE DATE OF AMENDMENTS.

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

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

16 apply to all cases pending on the date of enactment of

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

18 of this Act.

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

20 2(2)(B) of this Act shall apply to all cases commenced

21 on or after the date of enactment of this Act.

Passed the Senate August 2, 1996.

Attest: GARY SISCO,

Secretary.