I

105TH CONGRESS

1ST SESSION H. R. 764

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

purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 13, 1997

Mr. HYDE (for himself, Mr. GEKAS, and Mr. MCCOLLUM) introduced the

following bill; which was referred to the Committee on the Judiciary

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 Amend5 ments of 1997’’.

6 SEC. 2. DEFINITIONS.

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

8 amended—

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

10 ‘‘In this title:’’;
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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) in paragraph (35)(B) by striking ‘‘para7 graphs (21B) and (33)(A)’’ and inserting ‘‘para8 graphs (23) and (35)’’;

9 (4) in each paragraph, by inserting ‘‘The term’’

10 after the paragraph designation;

11 (5) in each paragraph (as amended by para12 graph (4)) by inserting after the paragraph designa13 tion a heading, the text of which is—

14 (A) comprised of the term defined in the

15 paragraph;

16 (B) printed in capital and small capital

17 typeface; and

18 (C) followed by a period and a 1-em dash;

19 (6) in paragraphs (35A) and (38) by striking ‘‘;

20 and’’ at the end and inserting a period;

21 (7) in paragraphs (1) through (35), in para22 graphs (36) and (37), and in paragraphs (40)

23 through (55), by striking the semicolon at the end

24 and inserting a period; and
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1 (8) by redesignating paragraphs (4) through

2 (55) in numerical sequence.

3 SEC. 3. ADJUSTMENT OF DOLLAR AMOUNTS.

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

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

6 place it appears.

7 SEC. 4. COMPENSATION TO OFFICERS.

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

9 amended—

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

11 debtor’s attorney’’ after ‘‘1103’’; and

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

13 and inserting ‘‘(3) In’’.

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. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

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

20 amended—

21 (1) in subsection (b)(2)—

22 (A) in subparagraph (C) by striking ‘‘or’’

23 at the end; and

24 (B) by striking subparagraph (D) and in25 serting the following:
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1 ‘‘(D) the satisfaction of any penalty rate in any

2 executory contract or unexpired lease; or

3 ‘‘(E) the satisfaction of any provision relating

4 to a default arising from any failure by the debtor

5 to perform nonmonetary obligations under any exec6 utory contract or unexpired lease other than an

7 unexpired lease of personal property.’’;

8 (2) in subsection (c)—

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

10 end;

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

12 the end and inserting a period; and

13 (C) by striking paragraph (4);

14 (3) in subsection (d)—

15 (A) by striking paragraphs (5) through

16 (9); and

17 (B) by redesignating paragraph (10) as

18 paragraph (5); and

19 (4) in subsection (f)(1) by striking ‘‘; except

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

21 paragraph and inserting a period.

22 SEC. 7. ALLOWANCE OF ADMINISTRATIVE EXPENSES.

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

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

25 or (E) of’’ before ‘‘paragraph (3)’’.
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1 SEC. 8. PRIORITIES.

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

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

4 SEC. 9. EXEMPTIONS.

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

6 amended—

7 (1) in subsection (f)(1)(A)(ii)(II)—

8 (A) by striking ‘‘includes a liability des9 ignated as’’ and inserting ‘‘is for a liability that

10 is designated as, and is actually in the nature

11 of,’’; and

12 (B) by striking ‘‘, unless’’ and all that fol13 lows through the period; and

14 (2) in subsection (g)(2) by striking ‘‘subsection

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

16 SEC. 10. EXCEPTIONS TO DISCHARGE.

17 Section 523 of title 11, United States Code, is

18 amended—

19 (1) as amended by section 304(e) of Public Law

20 103–394 (108 Stat. 4133), in paragraph (15)—

21 (A) by inserting ‘‘or’’ after the semicolon

22 at the end; and

23 (B) by transferring such paragraph so as

24 to insert it after paragraph (14) of subsection

25 (a); and

26 (2) in subsection (a)—
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1 (A) in paragraph (3) by striking ‘‘or (6)’’

2 each place it appears and inserting ‘‘(6), or

3 (15)’’; and

4 (B) in paragraph (9) by inserting

5 ‘‘, watercraft, or aircraft’’ after ‘‘motor vehi6 cle’’.

7 SEC. 11. PROTECTION AGAINST DISCRIMINATORY TREAT8 MENT.

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

10 amended—

11 (1) in paragraph (1) by inserting ‘‘student’’ be12 fore ‘‘grant’’ the second place it appears; and

13 (2) in paragraph (2) by striking ‘‘the program

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

15 ‘‘any program operated under’’.

16 SEC. 12. PROPERTY OF THE ESTATE.

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

18 Code, is amended by inserting ‘‘365 or’’ before ‘‘542’’.

19 SEC. 13. LIMITATIONS ON AVOIDING POWERS.

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

21 States Code, as added by section 222(a) of the Bank22 ruptcy Reform Act of 1994 (108 Stat. 4129), is redesig23 nated as subsection (h).
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1 SEC. 14. LIABILITY OF TRANSFEREE OF AVOIDED TRANS2 FER.

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

4 States Code, is amended—

5 (1) in paragraph (1) by striking ‘‘avoided under

6 section 547(b)’’ and inserting ‘‘avoidable under sec7 tion 547’’; and

8 (2) in the matter following paragraph (2) by

9 striking ‘‘recover under subsection (a) from a trans10 feree that is not an insider’’ and inserting ‘‘avoid

11 under section 547 such transfer, to the extent that

12 such transfer was made for the benefit of a trans13 feree that was not an insider at the time of such

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

15 transferee that was not an insider at the time of

16 such transfer’’.

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

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

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

20 section’’.

21 SEC. 15. SETOFF.

22 Section 553(b)(1) of title 11, United States Code, is

23 amended by striking ‘‘362(b)(14)’’ and inserting

24 ‘‘362(b)(17)’’.
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1 SEC. 16. DISPOSITION OF PROPERTY OF THE ESTATE.

2 Section 726(b) of title 11, United States Code, is

3 amended by striking ‘‘1009,’’.

4 SEC. 17. GENERAL PROVISIONS.

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

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

7 SEC. 18. DISCHARGE.

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

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

10 and inserting ‘‘1222(b)(9)’’.

11 SEC. 19. CONTENTS OF PLAN.

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

13 amended—

14 (1) in subsection (b) by striking ‘‘(c)’’ and in15 serting ‘‘(d)’’; and

16 (2) in subsection (e) by striking the comma

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

18 SEC. 20. APPOINTMENT OF TRUSTEE.

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

20 amended—

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

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

23 paragraph:

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

25 at a meeting of creditors under paragraph (1), the United
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1 States trustee shall file a report certifying that election.

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

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

4 shall be considered to have been selected and ap5 pointed for purposes of this section; and

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

7 subsection (d) shall terminate.

8 ‘‘(B) In the case of any dispute arising out of an elec9 tion under subparagraph (A), the court shall resolve the

10 dispute.’’.

11 SEC. 21. KNOWING DISREGARD OF BANKRUPTCY LAW OR

12 RULE.

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

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

15 ‘‘case under title 11’’.

16 SEC. 22. BANKRUPTCY CASES AND PROCEEDINGS.

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

18 amended—

19 (1) by striking ‘‘made under this subsection’’

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

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

22 ‘‘Subsection (c)’’.

23 SEC. 23. AUTOMATIC STAY.

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

25 amended—
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1 (1) in paragraph (1) by inserting before the

2 semicolon the following: ‘‘(including the criminal en3 forcement of a judicial order requiring the payment

4 of child support)’’; and

5 (2) in paragraph (3) by inserting ‘‘, or a secu6 rity interest in real property to which section

7 547(c)(3) applies,’’ after ‘‘property’’.

8 SEC. 24. EFFECTIVE DATE OF AMENDMENTS.

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

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

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

12 this Act, or commenced on or after the date of enactment

13 of this Act, under title 11 of the United States Code.

14 (b) EXCEPTION.—The amendments made by sections

15 2(2)(B), 6(1), and 10(2)(B) of this Act shall apply to all

16 cases commenced on or after the date of enactment of this

17 Act under title 11 of the United States Code.

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