I 

109TH CONGRESS 

2D SESSION H. R. 5585 

To improve the netting process for financial contracts, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 12, 2006 

Mr. MCHENRY (for himself and Ms. WASSERMAN SCHULTZ) introduced the 

following bill; which was referred to the Committee on Financial Services, 

and in addition to the Committee on the Judiciary, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To improve the netting process for financial contracts, 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 ‘‘Financial Netting Im5 provements Act of 2006’’. 

6 SEC. 2. TREATMENT OF CERTAIN AGREEMENTS BY CON7 SERVATORS OR RECEIVERS OF DEPOSITORY 

8 INSTITUTIONS. 

9 (a) DEFINITION OF SECURITIES CONTRACT.— 


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1 (1) FDIC-INSURED DEPOSITORY INSTITU2 TIONS.—Section 11(e)(8)(D)(ii) of the Federal De3 posit Insurance Act (12 U.S.C. 1821(e)(8)(D)(ii)) is 

4 amended— 

5 (A) in subclause (I)— 

6 (i) by striking ‘‘mortgage loan, or’’ 

7 and inserting ‘‘mortgage loan,’’; and 

8 (ii) by inserting before the semicolon 

9 ‘‘(whether or not such repurchase or re10 verse repurchase transaction is a ‘repur11 chase agreement’, as defined in clause 

12 (v))’’; 

13 (B) in subclause (IV)— 

14 (i) by inserting ‘‘(including by nova15 tion)’’ after ‘‘the guarantee’’; and 

16 (ii) by inserting before the semicolon 

17 ‘‘(whether or not such settlement is in con18 nection with any agreement or transaction 

19 referred to in subclauses (I) through (XII) 

20 (other than subclause (II))’’; 

21 (C) in subclause (IX), by striking ‘‘or 

22 (VIII)’’ each place such term appears and in23 serting ‘‘(VIII), (IX), or (X)’’; 

24 (D) by redesignating subclauses (VI), 

25 (VII), (VIII), (IX), and (X) as subclauses 


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1 (VIII), (IX), (X), (XI), and (XII), respectively; 

2 and 

3 (E) by inserting after subclause (V) the 

4 following new subparagraphs: 

5 ‘‘(VI) means any extension of 

6 credit for the clearance or settlement 

7 of securities transactions; 

8 ‘‘(VII) means any loan trans9 action coupled with a securities collar 

10 transaction, any prepaid securities 

11 forward transaction, or any total re12 turn swap transaction coupled with a 

13 securities sale transaction;’’. 

14 (2) INSURED CREDIT UNIONS.—Section 

15 207(c)(8)(D)(ii) of the Federal Credit Union Act 

16 (12 U.S.C. 1787(c)(8)(D)(ii)) is amended— 

17 (A) in subclause (I)— 

18 (i) by striking ‘‘mortgage loan, or’’ 

19 and inserting ‘‘mortgage loan,’’; and 

20 (ii) by inserting before the semicolon 

21 ‘‘(whether or not such repurchase or re22 verse repurchase transaction is a ‘repur23 chase agreement’, as defined in clause 

24 (v))’’; 

25 (B) in subclause (IV)— 


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1 (i) by inserting ‘‘(including by nova2 tion)’’ after ‘‘the guarantee’’; and 

3 (ii) by inserting before the semicolon 

4 ‘‘(whether or not such settlement is in con5 nection with any agreement or transaction 

6 referred to in subclauses (I) through (XII) 

7 (other than subclause (II))’’; 

8 (C) in subclause (IX), by striking ‘‘or 

9 (VIII)’’ each place such term appears and in10 serting ‘‘(VIII), (IX), or (X)’’; 

11 (D) by redesignating subclauses (VI), 

12 (VII), (VIII), (IX), and (X) as subclauses 

13 (VIII), (IX), (X), (XI), and (XII), respectively; 

14 and 

15 (E) by inserting after subclause (V) the 

16 following new subparagraphs: 

17 ‘‘(VI) means any extension of 

18 credit for the clearance or settlement 

19 of securities transactions; 

20 ‘‘(VII) means any loan trans21 action coupled with a securities collar 

22 transaction, any prepaid securities 

23 forward transaction, or any total re24 turn swap transaction coupled with a 

25 securities sale transaction;’’. 


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1 (b) DEFINITION OF FORWARD CONTRACT.— 

2 (1) FDIC-INSURED DEPOSITORY INSTITU3 TIONS.—Section 11(e)(8)(D)(iv)(I) of the Federal 

4 Deposit Insurance Act (12 U.S.C. 

5 1821(e)(8)(D)(iv)(I)) is amended by striking ‘‘trans6 action, reverse repurchase transaction’’ and inserting 

7 ‘‘or reverse repurchase transaction (whether or not 

8 such repurchase or reverse repurchase transaction is 

9 a ‘repurchase agreement’, as defined in clause (v))’’. 

10 (2) INSURED CREDIT UNIONS.—Section 

11 207(c)(8)(D)(iv)(I) of the Federal Credit Union Act 

12 (12 U.S.C. 1787(c)(8)(D)(iv)(I)) is amended by 

13 striking ‘‘transaction, reverse repurchase trans14 action’’ and inserting ‘‘or reverse repurchase trans15 action (whether or not such repurchase or reverse 

16 repurchase transaction is a ‘repurchase agreement’, 

17 as defined in clause (v))’’. 

18 (c) DEFINITION OF SWAP AGREEMENT.— 

19 (1) FDIC-INSURED DEPOSITORY INSTITU20 TIONS.—Section 11(e)(8)(D)(vi) of the Federal De21 posit Insurance Act (12 U.S.C. 1821(e)(8)(D)(vi)) is 

22 amended— 

23 (A) in subclause (I)— 


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1 (i) by striking ‘‘or precious metals’’ 

2 and inserting ‘‘, precious metals, or other 

3 commodity’’; and 

4 (ii) by striking ‘‘or a weather swap, 

5 weather derivative, or weather option’’ and 

6 inserting ‘‘weather swap, option, future, or 

7 forward agreement; an emissions swap, op8 tion, future, or forward agreement; or an 

9 inflation swap, option, future, or forward 

10 agreement’’; 

11 (B) in subclause (II)— 

12 (i) by inserting ‘‘or other derivatives’’ 

13 after ‘‘dealings in the swap’’; and 

14 (ii) by striking ‘‘future, or option’’ 

15 and inserting ‘‘future, option, or spot 

16 transaction’’; and 

17 (C) by striking ‘‘the Securities Act of 

18 1933, the Securities Exchange Act of 1934, the 

19 Public Utility Holding Company Act of 1935, 

20 the Trust Indenture Act of 1939, the Invest21 ment Company Act of 1940, the Investment 

22 Advisers Act of 1940, the Securities Investor 

23 Protection Act of 1970, the Commodity Ex24 change Act, the Gramm-Leach-Bliley Act, and 

25 the Legal Certainty for Bank Products Act of 


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1 2000’’ and inserting ‘‘the Gramm-Leach-Bliley 

2 Act, the Legal Certainty for Bank Products Act 

3 of 2000, the securities laws (as such term is de4 fined in section 3(a)(47) of the Securities Ex5 change Act of 1934) and the Commodity Ex6 change Act’’. 

7 (2) INSURED CREDIT UNIONS.—Section 

8 207(c)(8)(D)(vi) of the Federal Credit Union Act 

9 (12 U.S.C. 1787(c)(8)(D)(vi)) is amended— 

10 (A) in subclause (I)— 

11 (i) by striking ‘‘or precious metals’’ 

12 and inserting ‘‘, precious metals, or other 

13 commodity’’; and 

14 (ii) by striking ‘‘or a weather swap, 

15 weather derivative, or weather option’’ and 

16 inserting ‘‘weather swap, option, future, or 

17 forward agreement; an emissions swap, op18 tion, future, or forward agreement; or an 

19 inflation swap, option, future, or forward 

20 agreement’’; 

21 (B) in subclause (II)— 

22 (i) by inserting ‘‘or other derivatives’’ 

23 after ‘‘dealings in the swap’’; and 


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1 (ii) by striking ‘‘future, or option’’ 

2 and inserting ‘‘future, option, or spot 

3 transaction’’; and 

4 (C) by striking ‘‘the Securities Act of 

5 1933, the Securities Exchange Act of 1934, the 

6 Public Utility Holding Company Act of 1935, 

7 the Trust Indenture Act of 1939, the Invest8 ment Company Act of 1940, the Investment 

9 Advisers Act of 1940, the Securities Investor 

10 Protection Act of 1970, the Commodity Ex11 change Act, the Gramm-Leach-Bliley Act, and 

12 the Legal Certainty for Bank Products Act of 

13 2000’’ and inserting ‘‘the Gramm-Leach-Bliley 

14 Act, the Legal Certainty for Bank Products Act 

15 of 2000, the securities laws (as such term is de16 fined in section 3(a)(47) of the Securities Ex17 change Act of 1934) and the Commodity Ex18 change Act’’. 

19 SEC. 3. CLARIFYING AMENDMENTS RELATING TO DEFINI20 TION OF PERSON. 

21 (a) FDIC-INSURED DEPOSITORY INSTITUTIONS

22 DEFINITION OF PERSON.—Section 11(e)(8)(D) of the 

23 Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)) 

24 is amended by adding at the end the following: 


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1 ‘‘(ix) PERSON.—The term ‘person’ includes 

2 any governmental entity in addition to any enti3 ty included in the definition of such term in 

4 section 1 of title 1, United States Code.’’. 

5 (b) INSURED CREDIT UNIONS DEFINITION OF PER6 SON.—Section 207(c)(8)(D) of the Federal Credit Union 

7 Act (12 U.S.C. 1787(c)(8)(D)) is amended by adding at 

8 the end the following: 

9 ‘‘(ix) PERSON.—The term ‘person’ in10 cludes any governmental entity in addition 

11 to any entity included in the definition of 

12 such term in section 1 of title 1, United 

13 States Code.’’. 

14 SEC. 4. FEDERAL DEPOSIT INSURANCE CORPORATION IM15 PROVEMENT ACT OF 1991. 

16 (a) ENFORCEABILITY OF BILATERAL NETTING CON17 TRACTS.—Section 403 of the Federal Deposit Insurance 

18 Corporation Improvement Act of 1991 (12 U.S.C. 4403) 

19 is amended— 

20 (1) in each of subsections (a) and (f), by strik21 ing ‘‘paragraphs (8)(E), (8)(F), and (10)(B) of’’ 

22 each place such term appears; and 

23 (2) in subsection (a), by inserting ‘‘terminated, 

24 liquidated, accelerated, and’’ after ‘‘institutions shall 

25 be’’. 


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1 (b) ENFORCEABILITY OF CLEARING ORGANIZATION

2 NETTING CONTRACTS.—Section 404 of the Federal De3 posit Insurance Corporation Improvement Act of 1991 (12 

4 U.S.C. 4404) is amended— 

5 (1) in each of subsections (a) and (h), by strik6 ing ‘‘paragraphs (8)(E), (8)(F), and (10)(B) of’’ 

7 each place such term appears; and 

8 (2) in subsection (a), by inserting ‘‘terminated, 

9 liquidated, accelerated, and’’ after ‘‘organization 

10 shall be’’. 

11 SEC. 5. CONFORMING AMENDMENTS. 

12 (a) CLARIFYING DEFINITIONS.—Title 11, United 

13 States Code, is amended— 

14 (1) in section 101— 

15 (A) in paragraph (22)(A)— 

16 (i) by striking ‘‘(domestic or foreign)’’ 

17 after ‘‘an entity’’; and 

18 (ii) by inserting ‘‘(whether or not a 

19 ‘customer’, as defined in section 741)’’ 

20 after ‘‘custodian for a customer’’; 

21 (B) in paragraph (22A)— 

22 (i) by striking ‘‘on any day during the 

23 previous 15-month period’’ each place it 

24 appears and inserting ‘‘at such time or on 

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1 ceding the date of the filing of the peti2 tion’’; and 

3 (ii) by inserting ‘‘(aggregated across 

4 counterparties)’’ after ‘‘principal amount 

5 outstanding’’; 

6 (C) in paragraph (25)(A)— 

7 (i) by inserting ‘‘, as defined in sec8 tion 761’’ after ‘‘commodity contract’’; and 

9 (ii) by striking ‘‘repurchase trans10 action, reverse repurchase transaction,’’ 

11 and inserting ‘‘repurchase or reverse re12 purchase transaction (whether or not such 

13 repurchase or reverse repurchase trans14 action is a ‘repurchase agreement’, as de15 fined in this section)’’; 

16 (D) in paragraph (53B)(A)— 

17 (i) in clause (i)— 

18 (I) in subclause (II), by striking 

19 ‘‘or precious metals’’ and inserting ‘‘, 

20 precious metals, or other commodity’’; 

21 (II) in subclause (VII), by strik22 ing ‘‘or’’ at the end; 

23 (III) in subclause (VIII), by 

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1 er option’’ and inserting ‘‘option, fu2 ture, or forward agreement’’; and 

3 (IV) by adding at the end the fol4 lowing: 

5 ‘‘(IX) an emissions swap, option, 

6 future, or forward agreement; or 

7 ‘‘(X) an inflation swap, option, 

8 future, or forward agreement;’’; and 

9 (ii) in clause (ii)— 

10 (I) in subclause (I), by inserting 

11 ‘‘or other derivatives’’ after ‘‘dealings 

12 in the swap’’; and 

13 (II) in subclause (II), by striking 

14 ‘‘future, or option’’ and inserting ‘‘fu15 ture, option, or spot transaction’’; and 

16 (E) in paragraph (53B)(B), by striking 

17 ‘‘the Securities Act of 1933, the Securities Ex18 change Act of 1934, the Public Utility Holding 

19 Company Act of 1935, the Trust Indenture Act 

20 of 1939, the Investment Company Act of 1940, 

21 the Investment Advisers Act of 1940, the Secu22 rities Investor Protection Act of 1970, the Com23 modity Exchange Act, the Gramm-Leach-Bliley 

24 Act, and the Legal Certainty for Bank Products 

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1 Bliley Act, the Legal Certainty for Bank Prod2 ucts Act of 2000, the securities laws (as such 

3 term is defined in section 3(a)(47) of the Secu4 rities Exchange Act of 1934) and the Com5 modity Exchange Act’’; 

6 (2) in section 362(b)— 

7 (A) by striking paragraphs (6) and (7) and 

8 inserting the following: 

9 ‘‘(6) under subsection (a) of this section, of the 

10 exercise by a commodity broker, forward contract 

11 merchant, stockbroker, financial institution, finan12 cial participant, or securities clearing agency of any 

13 contractual right (as defined in section 555 or 556) 

14 under any security agreement or arrangement or 

15 other credit enhancement forming a part of or re16 lated to any commodity contract, forward contract 

17 or securities contract, or of any contractual right (as 

18 defined in section 555 or 556) to offset or net out 

19 any termination value, payment amount, or other 

20 transfer obligation arising under or in connection 

21 with 1 or more such contracts, including any master 

22 agreement for such contracts; 

23 ‘‘(7) under subsection (a) of this section, of the 

24 exercise by a repo participant or financial partici25 pant of any contractual right (as defined in section 


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1 559) under any security agreement or arrangement 

2 or other credit enhancement forming a part of or re3 lated to any repurchase agreement, or of any con4 tractual right (as defined in section 559) to offset or 

5 net out any termination value, payment amount, or 

6 other transfer obligation arising under or in connec7 tion with 1 or more such agreements, including any 

8 master agreement for such agreements;’’; 

9 (B) by striking paragraph (17) and insert10 ing the following: 

11 ‘‘(17) under subsection (a) of this section, of 

12 the exercise by a swap participant or financial par13 ticipant of any contractual right (as defined in sec14 tion 560) under any security agreement or arrange15 ment or other credit enhancement forming a part of 

16 or related to any swap agreement, or of any contrac17 tual right (as defined in section 560) to offset or net 

18 out any termination value, payment amount, or 

19 other transfer obligation arising under or in connec20 tion with 1 or more such agreements, including any 

21 master agreement for such agreements;’’; and 

22 (C) by striking paragraph (27) and insert23 ing the following: 

24 ‘‘(27) under subsection (a) of this section, of 

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1 pant of any contractual right (as defined in section 

2 555, 556, 559, or 560) under any security agree3 ment or arrangement or other credit enhancement 

4 forming a part of or related to any master netting 

5 agreement, or of any contractual right (as defined in 

6 section 555, 556, 559, or 560) to offset or net out 

7 any termination value, payment amount, or other 

8 transfer obligation arising under or in connection 

9 with 1 or more such master netting agreements to 

10 the extent that such participant is eligible to exercise 

11 such rights under paragraph (6), (7), or (17) for 

12 each individual contract covered by the master net13 ting agreement in issue; and’’; and 

14 (3) in section 741(7)(A)— 

15 (A) in clause (i)— 

16 (i) by striking ‘‘mortgage loan or’’ 

17 and inserting ‘‘mortgage loan,’’; and 

18 (ii) by inserting before the semicolon 

19 ‘‘(whether or not such repurchase or re20 verse repurchase transaction is a ‘repur21 chase agreement’, as defined in section 

22 101)’’; 

23 (B) in clause (iii)— 

24 (i) by inserting ‘‘(including by nova25 tion)’’ after ‘‘the guarantee’’; and 


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1 (ii) by inserting before the semicolon 

2 ‘‘(whether or not such settlement is in con3 nection with any agreement or transaction 

4 referred to in clauses (i) through (xi))’’; 

5 (C) in clause (viii), by striking ‘‘or (vii)’’ 

6 each place it appears and inserting ‘‘(vii), (viii), 

7 or (ix)’’; 

8 (D) by redesignating clauses (v) through 

9 (ix) as clauses (vii) through (xi), respectively; 

10 and 

11 (E) by inserting after clause (iv) the fol12 lowing: 

13 ‘‘(v) any extension of credit for 

14 the clearance or settlement of securi15 ties transactions; 

16 ‘‘(vi) any loan transaction cou17 pled with a securities collar trans18 action, any prepaid forward securities 

19 transaction, or any total return swap 

20 transaction coupled with a securities 

21 sale transaction;’’. 

22 (b) LIMITATION OF AVOIDANCE POWERS UNDER

23 MASTER NETTING AGREEMENT.—Section 546 of title 11, 

24 United States Code, is amended— 

25 (1) in subsection (e)— 


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1 (A) by inserting ‘‘(or for the benefit of)’’ 

2 before ‘‘a commodity broker’’; and 

3 (B) by inserting ‘‘or that is a transfer 

4 made by or to (or for the benefit of) a com5 modity broker, forward contract merchant, 

6 stockbroker, financial institution, financial par7 ticipant, or securities clearing agency, in con8 nection with a securities contract, as defined in 

9 section 741(7), commodity contract, as defined 

10 in section 761(4), or forward contract,’’ after 

11 ‘‘securities clearing agency,’’; 

12 (2) in subsection (f)— 

13 (A) by striking ‘‘that is a margin payment, 

14 as defined in section 741 or 761 of this title, 

15 or settlement payment, as defined in section 

16 741 of this title,’’; and 

17 (B) by inserting ‘‘(or for the benefit of)’’ 

18 before ‘‘a repo participant’’; 

19 (3) in subsection (g), by inserting ‘‘(or for the 

20 benefit of)’’ before ‘‘a swap participant’’; and 

21 (4) in subsection (j), by inserting ‘‘(or for the 

22 benefit of)’’ after ‘‘made by or to’’. 

23 (c) SIPC STAY.—Section 5(b)(2)(C)(iii) of the Secu24 rities Investor Protection Act of 1970 (15 U.S.C. 

25 78eee(b)(2)(C)(iii)) is amended— 


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1 (1) by inserting ‘‘a derivatives clearing organi2 zation (as defined in the Commodity Exchange Act), 

3 a multilateral clearing organization (as defined in 

4 the Federal Deposit Insurance Corporation Improve5 ment Act of 1991),’’ after ‘‘rule or bylaw of’’; and 

6 (2) by striking ‘‘or a securities clearance agen7 cy, a right set forth in a bylaw of a clearing organi8 zation or contract market’’ and inserting ‘‘a securi9 ties clearing agency, a contract market designated 

10 under the Commodity Exchange Act, a derivatives 

11 transaction execution facility registered under the 

12 Commodity Exchange Act, or a board of trade (as 

13 defined in the Commodity Exchange Act),’’. 

14 (d) SAVINGS CLAUSE.—Title IX of the Bankruptcy 

15 Abuse Prevention and Consumer Protection Act of 2005 

16 (Public Law 109–8, 119 Stat. 146) is amended by adding 

17 at the end the following: 

18 ‘‘SEC. 912. SAVINGS CLAUSE. 

19 ‘‘The meanings of terms used in this title are applica20 ble for the purposes of this title only, and shall not be 

21 construed or applied so as to challenge or affect the char22 acterization, definition, or treatment of any similar terms 

23 under any other statute, regulation, or rule, including the 

24 Gramm-Leach-Bliley Act, the Legal Certainty for Bank 

25 Products Act of 2000, the securities laws (as such term 


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1 is defined in section 3(a)(47) of the Securities Exchange 

2 Act of 1934), and the Commodity Exchange Act.’’. 

3 SEC. 6. WALKAWAY CLAUSES. 

4 (a) FDIC-INSURED DEPOSITORY INSTITUTIONS.— 

5 Section 11(e)(8)(G) of the Federal Deposit Insurance Act 

6 (12 U.S.C. 1821(e)(8)(G)) is amended by striking clause 

7 (ii) and inserting the following new clauses: 

8 ‘‘(ii) LIMITED SUSPENSION OF CER9 TAIN OBLIGATIONS.—In the case of a 

10 qualified financial contract referred to in 

11 clause (i), any payment or delivery obliga12 tions otherwise due from a party pursuant 

13 to the qualified financial contract shall be 

14 suspended from the time the receiver is ap15 pointed until the earlier of— 

16 ‘‘(I) the time such party receives 

17 notice that such contract has been 

18 transferred pursuant to subparagraph 

19 (A); or 

20 ‘‘(II) 5:00 p.m. (eastern time) on 

21 the business day following the date of 

22 the appointment of the receiver. 

23 ‘‘(iii) WALKAWAY CLAUSE DE24 FINED.—For purposes of this subpara25 graph, the term ‘walkaway clause’ means 


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1 any provision in a qualified financial con2 tract that suspends, conditions, or extin3 guishes a payment obligation of a party, in 

4 whole or in part, or does not create a pay5 ment obligation of a party that would oth6 erwise exist, solely because of such party’s 

7 status as a nondefaulting party in connec8 tion with the insolvency of an insured de9 pository institution that is a party to the 

10 contract or the appointment of or the exer11 cise of rights or powers by a conservator or 

12 receiver of such depository institution, and 

13 not as a result of a party’s exercise of any 

14 right to offset, setoff, or net obligations 

15 that exist under the contract, any other 

16 contract between those parties, or applica17 ble law.’’. 

18 (b) INSURED CREDIT UNIONS.—Section 

19 207(c)(8)(G) of the Federal Credit Union Act 12 U.S.C. 

20 1787(c)(8)(G)) is amended by striking clause (ii) and in21 serting the following new clauses: 

22 ‘‘(ii) LIMITED SUSPENSION OF CER23 TAIN OBLIGATIONS.—In the case of a 

24 qualified financial contract referred to in 

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1 tions otherwise due from a party pursuant 

2 to the qualified financial contract shall be 

3 suspended from the time the liquidating 

4 agent is appointed until the earlier of— 

5 ‘‘(I) the time such party receives 

6 notice that such contract has been 

7 transferred pursuant to subparagraph 

8 (A); or 

9 ‘‘(II) 5:00 p.m. (eastern time) on 

10 the business day following the date of 

11 the appointment of the liquidating 

12 agent. 

13 ‘‘(iii) WALKAWAY CLAUSE DE14 FINED.—For purposes of this subpara15 graph, the term ‘walkaway clause’ means 

16 any provision in a qualified financial con17 tract that suspends, conditions, or extin18 guishes a payment obligation of a party, in 

19 whole or in part, or does not create a pay20 ment obligation of a party that would oth21 erwise exist, solely because of such party’s 

22 status as a nondefaulting party in connec23 tion with the insolvency of an insured cred24 it union or the appointment of or the exer25 cise of rights or powers by a conservator or 


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1 liquidating agent of such credit union, and 

2 not as a result of a party’s exercise of any 

3 right to offset, setoff, or net obligations 

4 that exist under the contract, any other 

5 contract between those parties, or applica6 ble law.’’. 

7 SEC. 7. COMPENSATION OF CHAPTER 7 TRUSTEES; CHAP8 TER 7 FILING FEES. 

9 (a) AMENDMENTS TO TITLE 11 OF THE UNITED

10 STATES CODE.— 

11 (1) COMPENSATION OF CHAPTER 7 TRUST12 EES.—Section 330(b)(1) of title 11, United States 

13 Code, is amended by striking ‘‘$45’’ and inserting 

14 ‘‘$100’’. 

15 (2) RELATED AMENDMENTS.—Section 330(b) 

16 of title 11, United States Code, is amended— 

17 (A) by striking ‘‘(1)’’, and 

18 (B) by striking paragraph (2). 

19 (b) AMENDMENTS TO TITLE 28 OF THE UNITED

20 STATES CODE.— 

21 (1) CHAPTER 7 FILING FEE.—Section 

22 1930(a)(1)(A) of title 28 of the United States Code, 

23 as amended by section 10101 of Public Law 109– 

24 171, is amended by striking ‘‘$245’’ and inserting 

25 ‘‘$300’’, and 


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1 (2) UNITED STATES TRUSTEE FUND.—Section 

2 589a(b)(1)(A) of title 28, United States Code, is 

3 amended by striking ‘‘40.46’’ and inserting ‘‘29.67’’. 

4 (c) RELATED AMENDMENT REGARDING COLLEC5 TIONS AND DEPOSITS OF MISCELLANEOUS BANKRUPTCY

6 FEES.—Section 406(b) of the Judiciary Appropriations 

7 Act, 1990 (28 U.S.C. 1931 note) is amended by striking 

8 ‘‘28.87’’ and inserting ‘‘21.17’’. 

9 (d) CONFORMING AMENDMENT.—Section 10101(a) 

10 of Public Law 109–171 is amended by striking paragraph 

11 (2). 

12 (e) EFFECTIVE DATE; APPLICATION OF AMEND13 MENTS.—The amendments made by this section shall take 

14 effect 60 days after the date of the enactment of this Act 

15 and shall not apply with respect to cases commenced 

16 under title 11 of the United States Code before the date 

17 such amendments take effect. 

18 SEC. 8. SCOPE OF APPLICATION. 

19 Subject to section 7(e), the amendments made by this 

20 Act shall not apply to any cases commenced under title 

21 11, United States Code, or appointments made under any 

22 Federal or State law, before the date of the enactment 

23 of this Act. 

Æ 


hmoore on PROD1PC68 with HMBILLS