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amounts set forth in the definition of the term ‘financial
participant’ in section 101(22A).’’.
SEC. 402. 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:
SEC. 403. DAMAGE MEASURE.
(a) Title 11, United States Code, is amended by insert-
ing after section 561 (as added by section 7(k)) the following
new section:
‘‘§ 561. Damage measure in connection with swap
agreements, securities contracts, forward
contracts, commodity contracts, repur-
chase 
agreements, 
or 
master 
netting
agreements
‘‘If the trustee rejects a swap agreement, securities con-
tract as defined in section 741 of this title, forward con-
tract, repurchase agreement, or master netting agreement
pursuant to section 365(a) of this title, or if a forward con-
tract merchant, stockbroker, financial institution, securities
clearing agency, repo participant, master netting agree-
ment participant, or swap participant liquidates, termi-
nates, or accelerates any such contract or agreement, dam-
ages shall be measured as of the earlier of—
‘‘(1) the date of such rejection; or
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‘‘(2) the date of such liquidation, termination, or
acceleration.’’.
(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 new para-
graph:
‘‘(2) A claim for damages calculated in accord-
ance with section 562 of this title shall be allowed
under subsection (a),(b), or (c) of this section or dis-
allowed under subsection (d) or (e) of this section as
if such claim had arisen before the date of the filing
of the petition.’’.
SEC. 404. ASSET-BACKED SECURITIZATIONS.
Section 541 of title 11, United States Code, is amend-
ed—
(1) in subsection (b), by striking ‘‘or’’ at the end
of paragraph (4);
(2) by redesignating paragraph (5) of subsection
(b) as paragraph (6);
(3) by inserting after paragraph (4) of sub-
section (b) the following new paragraph:
‘‘(5) any eligible asset (or proceeds thereof), to
the extent that such eligible asset was transferred by
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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); or’’; and
(4) by adding at the end the following new sub-
section:
‘‘(e) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) ASSET-BACKED SECURITIZATION.—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 or-
ganizations, issued by an issuer;
‘‘(2) ELIGIBLE ASSET.—The term ‘eligible asset’
means—
‘‘(A) financial assets (including interests
therein and proceeds thereof), either fixed or re-
volving, including residential and commercial
mortgage loans, consumer receivables, trade re-
ceivables, and lease receivables, that, by their
terms, convert into cash within a finite time pe-
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riod, 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) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means—
‘‘(A) an issuer; or
‘‘(B) a trust, corporation, partnership, or
other entity engaged exclusively in the business
of acquiring and transferring eligible assets di-
rectly or indirectly to an issuer and taking ac-
tions ancillary thereto;
‘‘(4) ISSUER.—The term ‘issuer’ means a trust,
corporation, partnership, or other entity engaged ex-
clusively in the business of acquiring and holding eli-
gible assets, issuing securities backed by eligible as-
sets, and taking actions ancillary thereto.
‘‘(5) TRANSFERRED.—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 in-
tention of removing them from the estate of the debtor
pursuant to subsection (b)(5), irrespective, without
limitation of—
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‘‘(A) whether the debtor directly or indi-
rectly 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 serv-
icing of all or any portion of such eligible assets;
or
‘‘(C) the characterization of such sale, con-
tribution, or other conveyance for tax, account-
ing, regulatory reporting, or other purposes.’’.
SEC. 405. PROHIBITION ON CERTAIN ACTIONS FOR FAILURE
TO INCUR FINANCE CHARGES.
Section 106 of the Truth in Lending Act (15 U.S.C.
1605) is amended by adding at the end the following:
‘‘(g) PROHIBITION ON CERTAIN ACTIONS FOR FAILURE
TO INCUR FINANCE CHARGES.—A creditor may not, solely
because a consumer has not incurred finance charges in
connection with an extension of credit—
‘‘(1) refuse to renew or continue to offer the ex-
tension of credit to that consumer; or
‘‘(2) charge a fee to that consumer in lieu of a
finance charge.’’.
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SEC. 406. FEES ARISING FROM CERTAIN OWNERSHIP INTER-
ESTS.
Section 523(a)(16) of title 11, United States Code, is
amended—
(1) by striking ‘‘dwelling’’ the first place it ap-
pears;
(2) by striking ‘‘ownership or’’ and inserting
‘‘ownership,’’;
(3) by striking ‘‘housing’’ the first place it ap-
pears; 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 owner-
ship interest in such unit, such corporation, or such
lot,’’.
SEC. 407. BANKRUPTCY FEES.
Section 1930 of title 28, United States Code, is amend-
ed—
(1) in subsection (a), by striking ‘‘Notwithstand-
ing section 1915 of this title, the parties’’ and insert-
ing ‘‘Subject to subsection (f), the parties’’; and
(2) by adding at the end the following:
‘‘(f)(1) The Judicial Conference of the United States
shall prescribe procedures for waiving fees under this sub-
section.
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‘‘(2) Under the procedures described in paragraph (1),
the district court or the bankruptcy court may waive a fil-
ing fee described in paragraph (3) for a case commenced
under chapter 7 of title 11 if the court determines that an
individual debtor is unable to pay that fee in installments.
‘‘(3) A filing fee referred to in paragraph (2) is—
‘‘(A) a filing fee under subsection (a)(1); or
‘‘(B) any other fee prescribed by the Judicial
Conference of the United States under subsection (b)
that is payable to the clerk of the district court or the
clerk of the bankruptcy court upon the commencement
of a case under chapter 7 of title 11.
‘‘(4) In addition to waiving a fee described in para-
graph (3) under paragraph (2), the district court or the
bankruptcy court may waive any other fee prescribed under
subsection (b) or (c) if the court determines that the individ-
ual is unable to pay that fee in installments.’’.
SEC. 408. APPLICABILITY.
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.
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TITLE V—ANCILLARY AND
OTHER CROSS-BORDER CASES
SEC. 501. AMENDMENT TO ADD A CHAPTER 6 TO TITLE 11,
UNITED STATES CODE.
(a) IN GENERAL.—Title 11, United States Code, is
amended by inserting after chapter 5 the following:
‘‘CHAPTER 6—ANCILLARY AND OTHER
CROSS-BORDER CASES
‘‘Sec.
‘‘601. Purpose and scope of application.
‘‘SUBCHAPTER I—GENERAL PROVISIONS
‘‘602. Definitions.
‘‘603. International obligations of the United States.
‘‘604. Commencement of ancillary case.
‘‘605. Authorization to act in a foreign country.
‘‘606. Public policy exception.
‘‘607. Additional assistance.
‘‘608. Interpretation.
‘‘SUBCHAPTER II—ACCESS OF FOREIGN REPRESENTATIVES AND
CREDITORS TO THE COURT
‘‘609. Right of direct access.
‘‘610. Limited jurisdiction.
‘‘611. Commencement of bankruptcy case under section 301 or 303.
‘‘612. Participation of a foreign representative in a case under this title.
‘‘613. Access of foreign creditors to a case under this title.
‘‘614. Notification to foreign creditors concerning a case under this title.
‘‘SUBCHAPTER III—RECOGNITION OF A FOREIGN PROCEEDING AND
RELIEF
‘‘615. Application for recognition of a foreign proceeding.
‘‘616. Presumptions concerning recognition.
‘‘617. Order recognizing a foreign proceeding.
‘‘618. Subsequent information.
‘‘619. Relief that may be granted upon petition for recognition of a foreign pro-
ceeding.
‘‘620. Effects of recognition of a foreign main proceeding.
‘‘621. Relief that may be granted upon recognition of a foreign proceeding.
‘‘622. Protection of creditors and other interested persons.
‘‘623. Actions to avoid acts detrimental to creditors.
‘‘624. Intervention by a foreign representative.
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‘‘SUBCHAPTER IV—COOPERATION WITH FOREIGN COURTS AND
FOREIGN REPRESENTATIVES
‘‘625. Cooperation and direct communication between the court and foreign courts
or foreign representatives.
‘‘626. Cooperation and direct communication between the trustee and foreign
courts or foreign representatives.
‘‘627. Forms of cooperation.
‘‘SUBCHAPTER V—CONCURRENT PROCEEDINGS
‘‘628. Commencement of a case under this title after recognition of a foreign main
proceeding.
‘‘629. Coordination of a case under this title and a foreign proceeding.
‘‘630. Coordination of more than 1 foreign proceeding.
‘‘631. Presumption of insolvency based on recognition of a foreign main proceed-
ing.
‘‘632. Rule of payment in concurrent proceedings.
‘‘§ 601. 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 ef-
fective mechanisms for dealing with cases of cross-border in-
solvency with the objectives of—
‘‘(1) cooperation between—
‘‘(A) United States courts, United States
Trustees, trustees, examiners, debtors, and debt-
ors in possession; and
‘‘(B) the courts and other competent au-
thorities of foreign countries involved in cross-
border insolvency cases;
‘‘(2) greater legal certainty for trade and invest-
ment;
‘‘(3) fair and efficient administration of cross-
border insolvencies that protects the interests of all
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creditors, 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 trou-
bled 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 connec-
tion 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 pro-
ceeding under this title.
‘‘(c) This chapter does not apply to—
‘‘(1) a proceeding concerning an entity identified
by exclusion in subsection 109(b); or
‘‘(2) a natural person or a natural person and
that person’s spouse who have debts within the limits
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specified in under section 109(e) and who are citizens
of the United States or aliens lawfully admitted for
permanent residence in the United States.
‘‘SUBCHAPTER I—GENERAL PROVISIONS
‘‘§ 602. 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 oper-
ations where the debtor carries out a nontransitory
economic activity;
‘‘(3) ‘foreign court’ means a judicial or other au-
thority competent to control or supervise a foreign
proceeding;
‘‘(4) ‘foreign main proceeding’ means a foreign
proceeding taking place in the country where the debt-
or has the center of its main interests;
‘‘(5) ‘foreign nonmain proceeding’ means a for-
eign proceeding, other than a foreign main proceed-
ing, taking place in a country where the debtor has
an establishment;
‘‘(6) ‘trustee’ includes a trustee, a debtor in pos-
session in a case under any chapter of this title, or
a debtor under chapters 9 or 13 of this title; and
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‘‘(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 to be located within that territory,
including any property that may properly be seized
or garnished by an action in a Federal or State court
in the United States.
‘‘§ 603. International obligations of the United States
‘‘To the extent that this chapter conflicts with an obli-
gation 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.
‘‘§ 604. 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 615.
‘‘§ 605. Authorization to act in a foreign country
‘‘A trustee or another entity designated by the court
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.
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‘‘§ 606. Public policy exception
‘‘Nothing in this chapter prevents the court from refus-
ing to take an action governed by this chapter if the action
would be manifestly contrary to the public policy of the
United States.
‘‘§ 607. Additional assistance
‘‘(a) Nothing in this chapter limits the power of the
court, upon recognition of a foreign proceeding, to 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 as-
sistance under this title or under other laws of the United
States, the court shall consider whether such additional as-
sistance, consistent with the principles of comity, will rea-
sonably 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 dis-
positions of property of the debtor;
‘‘(4) distribution of proceeds of the debtor’s prop-
erty substantially in accordance with the order pre-
scribed by this title; and
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‘‘(5) if appropriate, the provision of an oppor-
tunity for a fresh start for the individual that such
foreign proceeding concerns.
‘‘§ 608. Interpretation
‘‘In interpreting this chapter, the court shall consider
its international origin, and the need to promote an appli-
cation of this chapter that is consistent with the application
of similar statutes adopted by foreign jurisdictions.
‘‘SUBCHAPTER II—ACCESS OF FOREIGN REP-
RESENTATIVES AND CREDITORS TO THE
COURT
‘‘§ 609. Right of direct access
‘‘(a) A foreign representative is entitled to commence
a case under section 604 by filing a petition for recognition
under section 615, and upon recognition, to apply directly
to other Federal and State courts for appropriate relief in
those courts.
‘‘(b) Upon recognition, and subject to section 610, a
foreign representative has the capacity to sue and be sued.
‘‘(c) Recognition under this chapter is prerequisite to
the granting of comity or cooperation to a foreign proceed-
ing in any State or Federal court in the United States.
Any request for comity or cooperation in any court shall
be accompanied by a sworn statement setting forth whether
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recognition under section 615 has been sought and the sta-
tus of any such petition.
‘‘(d) Upon denial of recognition under this chapter,
the court may issue appropriate orders necessary to prevent
an attempt to obtain comity or cooperation from courts in
the United States without such recognition.
‘‘§ 610. Limited jurisdiction
‘‘The sole fact that a foreign representative files a peti-
tion under sections 604 and 615 does not subject the foreign
representative to the jurisdiction of any court in the United
States for any other purpose.
‘‘§ 611. Commencement of bankruptcy case under sec-
tion 301 or 303
‘‘(a) Upon filing a petition for 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) of this section must be accompanied by a statement de-
scribing the petition for recognition and its current status.
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) of this section prior
to such commencement.
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‘‘(c) A case under subsection (a) shall be dismissed un-
less recognition is granted.
‘‘§ 612. 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.
‘‘§ 613. 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) of this section does not change
or codify law in effect on the date of enactment of this chap-
ter as to the priority of claims under section 507 or 726,
except that the claim of a foreign creditor under those sec-
tions shall not be given a lower priority than the class of
general unsecured claims without priority solely because the
holder of such claim is a foreign creditor.
‘‘(2)(A) Subsection (a) of this section and paragraph
(1) of this subsection do not change or codify law in effect
on the date of enactment of this chapter as to the allow-
ability of foreign revenue claims or other foreign public law
claims in a proceeding under this title.
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‘‘(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 condi-
tions and circumstances specified therein.
‘‘§ 614. 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) The notification to creditors with foreign address-
es 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
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‘‘(3) contain any other information required to
be included in such a notification to creditors pursu-
ant to 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 addi-
tional time to creditors with foreign addresses as is reason-
able under the circumstances.
‘‘SUBCHAPTER III—RECOGNITION OF A FOREIGN
PROCEEDING AND RELIEF
‘‘§ 615. Application for recognition of a foreign pro-
ceeding
‘‘(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 affirm-
ing 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
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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 accom-
panied by a statement identifying all foreign proceedings
with respect to the debtor that are known to the foreign rep-
resentative.
‘‘(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.
‘‘§ 616. Presumptions concerning recognition
‘‘(a) If the decision or certificate referred to in section
615(b) indicates that the foreign proceeding is a foreign
proceeding within the meaning of section 101(23) and that
the person or body is a foreign representative within the
meaning of section 101(24), the court is entitled to so pre-
sume.
‘‘(b) The court is entitled to presume that documents
submitted in support of the petition for recognition are au-
thentic, whether the documents have been subjected to legal
processing under applicable law.
‘‘(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.
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‘‘§ 617. Order recognizing a foreign proceeding
‘‘(a) Subject to section 606, an order recognizing a for-
eign proceeding shall be entered if—
‘‘(1) the foreign proceeding is a foreign main
proceeding or foreign nonmain proceeding within the
meaning of section 602 and is a foreign proceeding
within the meaning of section 101(23);
‘‘(2) the person or body applying for recognition
is a foreign representative within the meaning of sec-
tion 101(24); and
‘‘(3) the petition meets the requirements of sec-
tion 615.
‘‘(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 debt-
or has an establishment within the meaning of section
602 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 shall constitute
recognition under this chapter.
‘‘(d) The provisions of this subchapter do not prevent
modification or termination of recognition if it is shown
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that the grounds for granting it were fully or partially lack-
ing or have ceased to exist, but in considering such action
the court shall give due weight to possible prejudice to par-
ties that have relied upon the granting of recognition. The
foreign proceeding may be closed in the manner prescribed
for a case under section 350.
‘‘§ 618. 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 con-
cerning—
‘‘(1) any substantial change in the status of the
foreign proceeding or the status of the foreign rep-
resentative’s appointment; and
‘‘(2) any other foreign proceeding regarding the
debtor that becomes known to the foreign representa-
tive.
‘‘§ 619. 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 petition is decided upon, 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, includ-
ing—
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‘‘(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 designated by the court, including an exam-
iner, in order to protect and preserve the value of as-
sets that, by their nature or because of other cir-
cumstances, are perishable, susceptible to devaluation
or otherwise in jeopardy; and
‘‘(3) any relief referred to in paragraph (3), (4),
or (7) of section 621(a).
‘‘(b) Unless extended under section 621(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 sec-
tion 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 appli-
cable to an injunction shall apply to relief under this sec-
tion.
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‘‘§ 620. Effects of recognition of a foreign main pro-
ceeding
‘‘(a) Upon recognition of a foreign proceeding that is
a foreign main proceeding—
‘‘(1) section 362 applies with respect to the debt-
or and that property of the debtor that is within the
territorial jurisdiction of the United States; and
‘‘(2) transfer, encumbrance, or any other disposi-
tion of an interest of the debtor in property within
the territorial jurisdiction of the United States is re-
strained as and to the extent that is provided for
property of an estate under sections 363, 549, and
552.
Unless the court orders otherwise, the foreign representative
may operate the debtor’s business and may exercise the pow-
ers of a trustee under section 549, subject to sections 363
and 552.
‘‘(b) The scope, and the modification or termination,
of the stay and restraints referred to in subsection (a) of
this section are subject to the exceptions and limitations
provided in subsections (b), (c), and (d) of section 362, sub-
sections (b) and (c) of section 363, and sections 552, 555
through 557, 559, and 560.
‘‘(c) Subsection (a) of this section does not affect the
right to commence individual actions or proceedings in a
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foreign country to the extent necessary to preserve a claim
against the debtor.
‘‘(d) Subsection (a) of this section does not affect the
right of a foreign representative or an entity to file a peti-
tion commencing a case under this title or the right of any
party to file claims or take other proper actions in such
a case.
‘‘§ 621. 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 individual actions or individual proceedings con-
cerning the debtor’s assets, rights, obligations or li-
abilities to the extent they have not been stayed under
section 620(a);
‘‘(2) staying execution against the debtor’s assets
to the extent it has not been stayed under section
620(a);
‘‘(3) suspending the right to transfer, encumber
or otherwise dispose of any assets of the debtor to the
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extent this right has not been suspended under section
620(a);
‘‘(4) providing for the examination of witnesses,
the taking of evidence or the delivery of information
concerning the debtor’s assets, affairs, rights, obliga-
tions or liabilities;
‘‘(5) entrusting the administration or realization
of all or part of the debtor’s assets within the terri-
torial jurisdiction of the United States to the foreign
representative or another person, including an exam-
iner, designated by the court;
‘‘(6) extending relief granted under section
619(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 for-
eign representative, entrust the distribution of all or part
of the debtor’s assets located in the United States to the for-
eign representative or another person, including an exam-
iner, designated by the court, provided that the court is sat-
isfied that the interests of creditors in the United States
are sufficiently protected.
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‘‘(c) In granting relief under this section to a rep-
resentative 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 for-
eign 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.
‘‘§ 622. Protection of creditors and other interested
persons
‘‘(a) In granting or denying relief under section 619
or 621, or in modifying or terminating relief under sub-
section (c) of this section, the court must find that the inter-
ests of the creditors and other interested persons or entities,
including the debtor, are sufficiently protected.
‘‘(b) The court may subject relief granted under section
619 or 621 to conditions it considers appropriate.
‘‘(c) The court may, at the request of the foreign rep-
resentative or an entity affected by relief granted under sec-
tion 619 or 621, or at its own motion, modify or terminate
such relief.
‘‘§ 623. Actions to avoid acts detrimental to creditors
‘‘(a) Upon recognition of a foreign proceeding, the for-
eign representative has standing in a pending case under
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another chapter of this title to initiate actions under sec-
tions 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) of this section relates to assets that, under
United States law, should be administered in the foreign
nonmain proceeding.
‘‘§ 624. 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 FOR-
EIGN COURTS AND FOREIGN REPRESENTA-
TIVES
‘‘§ 625. Cooperation and direct communication be-
tween the court and foreign courts or for-
eign representatives
‘‘(a) In all matters included within section 601, 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,
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foreign courts or foreign representatives, subject to the rights
of parties in interest to notice and participation.
‘‘§ 626. Cooperation and direct communication be-
tween the trustee and foreign courts or
foreign representatives
‘‘(a) In all matters included in section 601, the trustee
or other person, including an examiner, designated by the
court, shall, subject to the supervision of the court, cooperate
to the maximum extent possible with foreign courts or for-
eign representatives.
‘‘(b) The trustee or other person, including an exam-
iner, designated by the court is entitled, subject to the super-
vision of the court, to communicate directly with foreign
courts or foreign representatives.
‘‘(c) 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(a).
‘‘§ 627. Forms of cooperation
‘‘Cooperation referred to in sections 625 and 626 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;
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‘‘(3) coordination of the administration and su-
pervision of the debtor’s assets and affairs;
‘‘(4) approval or implementation of agreements
concerning the coordination of proceedings; and
‘‘(5) coordination of concurrent proceedings re-
garding the same debtor.
‘‘SUBCHAPTER V—CONCURRENT PROCEEDINGS
‘‘§ 628. 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
that 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 625, 626, and 627, to other as-
sets of the debtor that are within the jurisdiction of the court
under sections 541(a) and 1334(e), 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.
‘‘§ 629. 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
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the same debtor, the court shall seek cooperation and coordi-
nation under sections 625, 626, and 627, and the following
shall apply:
‘‘(1) When the case in the United States is tak-
ing place at the time the petition for recognition of
the foreign proceeding is filed—
‘‘(A) any relief granted under sections 619
or 621 must be consistent with the case in the
United States; and
‘‘(B) even if the foreign proceeding is recog-
nized as a foreign main proceeding, section 620
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 proceed-
ing—
‘‘(A) any relief in effect under sections 619
or 621 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 re-
ferred to in section 620(a) shall be modified or
terminated if inconsistent with the case in the
United States.
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‘‘(3) In granting, extending, or modifying relief
granted to a representative of a foreign nonmain pro-
ceeding, the court must be satisfied that the relief re-
lates 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 628 and 629, the court may grant any
of the relief authorized under section 305.
‘‘§ 630. Coordination of more than 1 foreign proceed-
ing
‘‘In matters referred to in section 601, with respect to
more than one foreign proceeding regarding the debtor, the
court shall seek cooperation and coordination under sections
625, 626, and 627, and the following shall apply:
‘‘(1) Any relief granted under section 619 or 621
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 re-
lief in effect under section 619 or 621 shall be re-
viewed by the court and shall be modified or termi-
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nated if inconsistent with the foreign main proceed-
ing.
‘‘(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.
‘‘§ 631. Presumption of insolvency based on recogni-
tion of a foreign main proceeding
‘‘In the absence of evidence to the contrary, recognition
of a foreign main proceeding is for the purpose of commenc-
ing a proceeding under section 303, proof that the debtor
is generally not paying its debts.
‘‘§ 632. 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 5 the following:
‘‘6. Ancillary and Other Cross-Border Cases .............................
601’’.
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SEC. 502. 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 pe-
riod the following: ‘‘and this chapter, sections 307,
555 through 557, 559, and 560 apply in a case under
chapter 6’’; and
(2) by adding at the end the following:
‘‘(j) Chapter 6 applies only in a case under that chap-
ter, except that section 605 applies to trustees and to any
other entity designated by the court, including an examiner,
under chapters 7, 11, and 12, to debtors in possession under
chapters 11 and 12, and to debtors or trustees under chap-
ters 9 and 13 who are authorized to act under section 605.’’.
(b) DEFINITIONS.—Section 101 of title 11, United
States Code, is amended by striking paragraphs (23) and
(24) and inserting the following:
‘‘(23) ‘foreign proceeding’ means a collective ju-
dicial or administrative proceeding in a foreign state,
including an interim proceeding, pursuant to a law
relating to insolvency in which proceeding the assets
and affairs of the debtor are subject to control or su-
pervision by a foreign court, for the purpose of reor-
ganization or liquidation;
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‘‘(24) ‘foreign representative’ means a person or
body, including 1 appointed on an interim basis, au-
thorized in a foreign proceeding to administer the re-
organization 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 6.’’.
(2) BANKRUPTCY
CASES
AND
PROCEEDINGS.—
Section 1334(c) of title 28, United States Code, is
amended by striking ‘‘Nothing in’’ and inserting ‘‘Ex-
cept with respect to a case under chapter 6 of title 11,
nothing in’’.
(3) DUTIES OF TRUSTEES.—Section 586(a)(3) of
title 28, United States Code, is amended by inserting
‘‘6,’’ after ‘‘chapter’’.
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TITLE VI—MISCELLANEOUS
SEC. 
601. 
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 of this title, an unexpired lease of non-
residential real property under which the debtor is the lessee
shall be deemed rejected and the trustee shall immediately
surrender that nonresidential real 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) The court may extend the period determined
under subparagraph (A) only upon a motion of the lessor.’’.
SEC. 602. EXPEDITED APPEALS OF BANKRUPTCY CASES TO
COURTS OF APPEALS.
(a) IN GENERAL.—Section 158 of title 28, United
States Code, is amended—
(1) by redesignating subsection (d) as subsection
(e);
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ance or reinsurance in the United States with respect to
any claim made by a United States creditor against—
‘‘(A) a deposit required by an applicable State
insurance law;
‘‘(B) a multibeneficiary trust required by an ap-
plicable State insurance law to protect United States
policyholders or claimants against a foreign insur-
ance company; or
‘‘(C) a multibeneficiary trust authorized under
an applicable State insurance law to allow a domestic
insurance company that cedes reinsurance to the debt-
or to reflect the reinsurance as an asset or deduction
from liability in the ceding insurer’s financial state-
ments.’’.
SEC. 606. LIMITATION.
Section 546(c)(1)(B) of title 11, United States Code,
is amended by striking ‘‘20’’ and inserting ‘‘45’’.
SEC. 607. 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 inciden-
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tal to the storage and handling of goods, as provided
by section 7–209 of the Uniform Commercial Code.’’.
SEC. 608. AMENDMENT TO SECTION 330(a) OF TITLE 11,
UNITED STATES CODE.
Section 330(a) of title 11, United States Code, is
amended—
(1) in subsection (3)(A) after the word ‘‘award-
ed’’, by inserting ‘‘to an examiner, chapter 11 trustee,
or professional person’’; and
(2) by adding at the end of subsection (3)(A) the
following:
‘‘(3)(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.’’.
TITLE VII—TECHNICAL
CORRECTIONS
SEC. 701. DEFINITIONS.
Section 101 of title 11, United States Code, as amend-
ed by section 317, 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;
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(3) in paragraph (35)(B), by striking ‘‘para-
graphs (21B) and (33)(A)’’ and inserting ‘‘para-
graphs (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 farm-
er’’ after ‘‘debtor’’ the first place it appears; and
(B) by striking ‘‘thereto having aggregate’’
and all that follows through the end of the para-
graph;
(6) by amending paragraph (54) to read as fol-
lows:
‘‘(54) The term ‘transfer’ means—
‘‘(A) the creation of a lien;
‘‘(B) the retention of title as a security in-
terest;
‘‘(C) the foreclosure of a debtor’s equity of
redemption; or
‘‘(D) each mode, direct or indirect, absolute
or conditional, voluntary or involuntary, of dis-
posing of or parting with—
‘‘(i) property; or
‘‘(ii) an interest in property;’’;
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(7) in each of paragraphs (1) through (35), in
each of paragraphs (36) and (37), and in each of
paragraphs (40) through (56A) (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
(56A) in entirely numerical sequence, so as to result
in numerical paragraph designations of (4) through
(77), respectively.
SEC. 702. 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. 703. 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. 704. WHO MAY BE A DEBTOR.
Section 109(b)(2) of title 11, United States Code, is
amended by striking ‘‘subsection (c) or (d) of’’.
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SEC. 705. PENALTY FOR PERSONS WHO NEGLIGENTLY OR
FRAUDULENTLY PREPARE BANKRUPTCY PE-
TITIONS.
Section 110(j)(3) of title 11, United States Code, is
amended 
by 
striking 
‘‘attorney’s’’ 
and 
inserting
‘‘attorneys’ ’’.
SEC. 706. LIMITATION ON COMPENSATION OF PROFES-
SIONAL 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. 707. 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. 708. 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. 709. AUTOMATIC STAY.
Section 362(b) of title 11, United States Code, as
amended by sections 326 and 401 of this Act, is amended—
(1) in paragraph (21), by striking ‘‘or’’ at the
end;
(2) in paragraph (22), by striking the period at
the end and inserting a semicolon; and
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(3) by inserting after paragraph (22) the follow-
ing:
‘‘(23) under subsection (a) of this section of any
transfer that is not avoidable under section 544 and
that is not avoidable under section 549;
‘‘(24) under subsection (a)(3) of this section, of
the continuation of any eviction, unlawful detainer
action, or similar proceeding by a lessor against a
debtor involving residential real property in which
the debtor resides as a tenant under a rental agree-
ment and the debtor has not paid rent to the lessor
pursuant to the terms of the lease agreement or appli-
cable State law after the commencement and during
the course of the case;
‘‘(25) under subsection (a)(3) of this section, of
the commencement or continuation of any eviction,
unlawful detainer action, or similar proceeding by a
lessor against a debtor involving residential real
property in which the debtor resides as a tenant
under a rental agreement that has terminated pursu-
ant to the lease agreement or applicable State law;
‘‘(26) under subsection (a)(3) of this section, of
any eviction, unlawful detainer action, or similiar
proceeding, if the debtor has previously filed within
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the last year and failed to pay post-petition rent dur-
ing the course of that case; or
‘‘(27) under subsection (a)(3) of this section, of
eviction actions based on endangerment to property
or person or the use of illegal drugs.’’.
SEC. 710. AMENDMENT TO TABLE OF SECTIONS.
The table of sections for chapter 5 of title 11, United
States Code, is amended by striking the item relating to
section 556 and inserting the following:
‘‘556. Contractual right to liquidate a commodities contract or forward contract.’’.
SEC. 711. 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. 712. PRIORITIES.
Section 507(a) of title 11, United States Code, as
amended by section 323 of this Act, is amended—
(1) in paragraph (3)(B), by striking the semi-
colon at the end and inserting a period; and
(2) in paragraph (7), by inserting ‘‘unsecured’’
after ‘‘allowed’’.
SEC. 713. EXEMPTIONS.
Section 522 of title 11, United States Code, as amend-
ed by section 320 of this Act, is amended—
(1) in subsection (f)(1)(A)(ii)(II)—
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(A) by striking ‘‘includes a liability des-
ignated as’’ and inserting ‘‘is for a liability that
is designated as, and is actually in the nature
of,’’; and
(B) by striking ‘‘, unless’’ and all that fol-
lows through ‘‘support’’; and
(2) in subsection (g)(2), by striking ‘‘subsection
(f)(2)’’ and inserting ‘‘subsection (f)(1)(B)’’.
SEC. 714. EXCEPTIONS TO DISCHARGE.
Section 523 of title 11, United States Code, is amend-
ed—
(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 (14) 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)’’;
(5) in subsection (a)(17)—
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(A) by striking ‘‘by a court’’ and inserting
‘‘on a prisoner by any court’’;
(B) by striking ‘‘section 1915 (b) or (f)’’
and inserting ‘‘subsection (b) or (f)(2) of section
1915’’; and
(C) by inserting ‘‘(or a similar non-Federal
law)’’ after ‘‘title 28’’ each place it appears; and
(6) in subsection (e), by striking ‘‘a insured’’
and inserting ‘‘an insured’’.
SEC. 715. 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. 716. PROTECTION AGAINST DISCRIMINATORY TREAT-
MENT.
Section 525(c) of title 11, United States Code, is
amended—
(1) in paragraph (1), by inserting ‘‘student’’ be-
fore ‘‘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’’.
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SEC. 717. 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. 718. PREFERENCES.
Section 547 of title 11, United States Code, is amend-
ed—
(1) in subsection (b), by striking ‘‘subsection (c)’’
and inserting ‘‘subsections (c) and (h)’’; and
(2) by adding at the end the following:
‘‘(h) If the trustee avoids under subsection (b) a secu-
rity interest given 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 security interest shall be considered to be
avoided under this section only with respect to the creditor
that is an insider.’’.
SEC. 719. 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’’.
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SEC. 720. TECHNICAL AMENDMENT.
Section 552(b)(1) of title 11, United States Code, is
amended by striking ‘‘product’’ each place it appears and
inserting ‘‘products’’.
SEC. 721. DISPOSITION OF PROPERTY OF THE ESTATE.
Section 726(b) of title 11, United States Code, is
amended by striking ‘‘1009,’’.
SEC. 722. GENERAL PROVISIONS.
Section 901(a) of title 11, United States Code, as
amended by section 408, is amended by inserting
‘‘1123(d),’’ after ‘‘1123(b),’’.
SEC. 723. 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.
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‘‘(B) In the case of any dispute arising out of an elec-
tion under subparagraph (A), the court shall resolve the dis-
pute.’’.
SEC. 724. 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. 725. 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. 726. 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. 727. 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)—
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(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. 728. 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. 729. 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
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(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 ‘‘ ‘doc-
ument’’; and
(B) by striking ‘‘this title’’ and inserting
‘‘title 11’’.
SEC. 730. ROLLING STOCK EQUIPMENT.
(a) IN GENERAL.—Section 1168 of title 11, United
States Code, is amended to read as follows:
‘‘§ 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 equip-
ment 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 other-
wise affected by any other provision of this title or by any
power of the court, except that that right to take possession
and enforce those other rights and remedies shall be subject
to section 362, if—
‘‘(A) before the date that is 60 days after the
date of commencement of a case under this chapter,
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the trustee, subject to the court’s approval, agrees to
perform all obligations of the debtor under such secu-
rity agreement, lease, or conditional sale contract;
and
‘‘(B) any default, other than a default of a kind
described in section 365(b)(2), under such security
agreement, lease, or conditional sale contract—
‘‘(i) that occurs before the date of com-
mencement 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 de-
fault 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 pe-
riod; 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.
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‘‘(2) The equipment described in this paragraph—
‘‘(A) is rolling stock equipment or accessories
used on rolling stock equipment, including super-
structures or racks, that is subject to a security inter-
est 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 condi-
tional vendor whose right to take possession is protected
under subsection (a) may agree, subject to the court’s ap-
proval, 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, les-
sor, 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 chap-
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ter such secured party, lessor, or conditional vendor is enti-
tled 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 re-
jected.
‘‘(d) With respect to equipment first placed in service
on or prior to October 22, 1994, for purposes of this sec-
tion—
‘‘(1) the term ‘lease’ includes any written agree-
ment with respect to which the lessor and the debtor,
as lessee, have expressed in the agreement or in a sub-
stantially contemporaneous writing that the agree-
ment is to be treated as a lease for Federal income
tax purposes; and
‘‘(2) the term ‘security interest’ means a pur-
chase-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
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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:
‘‘§ 1110. Aircraft equipment and vessels
‘‘(a)(1) Except as provided in paragraph (2) and sub-
ject 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 se-
curity 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 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 secu-
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rity agreement, lease, or conditional sale contract;
and
‘‘(B) any default, other than a default of a kind
specified in section 365(b)(2), 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 pe-
riod;
‘‘(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 pe-
riod; 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 per-
mitted 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 in-
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terest granted by, leased to, or conditionally sold
to a debtor that, at the time such transaction is
entered into, holds an air carrier operating cer-
tificate issued pursuant to chapter 447 of title 49
for aircraft capable of carrying 10 or more indi-
viduals or 6,000 pounds or more of cargo; or
‘‘(ii) a documented vessel (as defined in sec-
tion 30101(1) of title 46) that is subject to a se-
curity interest granted by, leased to, or condi-
tionally 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 ne-
cessity 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 condi-
tional vendor whose right to take possession is protected
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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, les-
sor, 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 pur-
suant to subsection (a)(1) to take possession of such equip-
ment 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 re-
jected.
‘‘(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 agree-
ment with respect to which the lessor and the debtor,
as lessee, have expressed in the agreement or in a sub-
stantially contemporaneous writing that the agree-
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ment is to be treated as a lease for Federal income
tax purposes; and
‘‘(2) the term ‘security interest’ means a pur-
chase-money equipment security interest.’’.
SEC. 731. 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 peti-
tion was part of a scheme to delay, hinder, and de-
fraud 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.
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If recorded in compliance with applicable State laws gov-
erning notices of interests or liens in real property, an order
entered pursuant to this subsection shall be binding in any
other case under this title purporting to affect the real prop-
erty 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.’’.
(b) AUTOMATIC STAY.—Section 362(b) of title 11,
United States Code, as amended by section 709, is amend-
ed—
(1) in paragraph (24), by striking ‘‘or’’ at the
end;
(2) in paragraph (25) by striking the period at
the end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(26) under subsection (a) of this section, 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) 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, how-
ever, may move the court for relief from such order
based upon changed circumstances or for other good
cause shown, after notice and a hearing; or
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‘‘(27) under subsection (a) of this section, of any
act to enforce any lien against or security interest in
real property—
‘‘(A) if the debtor is ineligible under section
109(g) 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. 732. 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 Admin-
istration, 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 proprietor-
ships, 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
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(B) how Federal laws relating to bank-
ruptcy 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 Representa-
tives a report summarizing that study.
SEC. 733. 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 nonbank-
ruptcy law that governs the transfer of property by
a corporation or trust that is not a moneyed, busi-
ness, 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’’.
(b) CONFIRMATION OF PLAN FOR REORGANIZATION.—
Section 1129(a) of title 11, United States Code, is amended
by adding at the end the following:
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‘‘(14) 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, is amended by adding at the end the
following:
‘‘(e) Notwithstanding any other provision of this title,
property that is held by a debtor that is a corporation de-
scribed 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 gen-
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eral of the State in which the debtor is incorporated, was
formed, or does business.
SEC. 734. EFFECTIVE DATE; APPLICATION OF AMEND-
MENTS.
(a) EFFECTIVE DATE.—Except as provided in sub-
section (b), this title and the amendments made by this title
shall take effect on the date of enactment of this Act.
(b) APPLICATION OF AMENDMENTS.—The amendments
made by this title shall apply only with respect to cases
commenced under title 11, United States Code, on or after
the date of enactment of this Act.
Attest:
Secretary.