H. R. 5116—12
‘‘(A) the court determined at the time the plan was
confirmed that the plan was fair and equitable in accord-
ance with the requirements of section 1129(b);
‘‘(B) as part of the proceedings leading to issuance
of such injunction and confirmation of such plan, the court
had appointed a legal representative for the purpose of
protecting the rights of persons that might subsequently
assert demands described in subsection (g)(4)(B) with
respect to such plan; and
‘‘(C) such legal representative did not object to con-
firmation of such plan or issuance of such injunction; and
‘‘(2) for purposes of paragraph (1), if a trust described
in subsection (g)(2)(B)(i) is subject to a court order on the
date of the enactment of this Act staying such trust from
settling or paying further claims—
‘‘(A) the requirements of subsection (g)(2)(B)(ii)(V) shall
not apply with respect to such trust until such stay is
lifted or dissolved; and
‘‘(B) if such trust meets such requirements on the
date such stay is lifted or dissolved, such trust shall be
considered to have met such requirements continuously
from the date of the enactment of this Act.’’.
(b) RULE OF CONSTRUCTION.—Nothing in subsection (a), or in
the amendments made by subsection (a), shall be construed to
modify, impair, or supersede any other authority the court has
to issue injunctions in connection with an order confirming a plan
of reorganization.
SEC. 112. AUTHORITY OF BANKRUPTCY JUDGES TO CONDUCT JURY
TRIALS IN CIVIL PROCEEDINGS.
Section 157 of title 28, United States Code, is amended by
adding at the end the following:
‘‘(e) If the right to a jury trial applies in a proceeding that
may be heard under this section by a bankruptcy judge, the bank-
ruptcy judge may conduct the jury trial if specially designated
to exercise such jurisdiction by the district court and with the
express consent of all the parties.’’.
SEC. 113. SOVEREIGN IMMUNITY.
Section 106 of title 11, United States Code, is amended to
read as follows:
‘‘§ 106. Waiver of sovereign immunity
‘‘(a) Notwithstanding an assertion of sovereign immunity, sov-
ereign immunity is abrogated as to a governmental unit to the
extent set forth in this section with respect to the following:
‘‘(1) Sections 105, 106, 107, 108, 303, 346, 362, 363, 364,
365, 366, 502, 503, 505, 506, 510, 522, 523, 524, 525, 542,
543, 544, 545, 546, 547, 548, 549, 550, 551, 552, 553, 722,
724, 726, 728, 744, 749, 764, 901, 922, 926, 928, 929, 944,
1107, 1141, 1142, 1143, 1146, 1201, 1203, 1205, 1206, 1227,
1231, 1301, 1303, 1305, and 1327 of this title.
‘‘(2) The court may hear and determine any issue arising
with respect to the application of such sections to governmental
units.
‘‘(3) The court may issue against a governmental unit an
order, process, or judgment under such sections or the Federal
Rules of Bankruptcy Procedure, including an order or judgment
H. R. 5116—13
awarding a money recovery, but not including an award of
punitive damages. Such order or judgment for costs or fees
under this title or the Federal Rules of Bankruptcy Procedure
against any governmental unit shall be consistent with the
provisions and limitations of section 2412(d)(2)(A) of title 28.
‘‘(4) The enforcement of any such order, process, or judg-
ment against any governmental unit shall be consistent with
appropriate nonbankruptcy law applicable to such govern-
mental unit and, in the case of a money judgment against
the United States, shall be paid as if it is a judgment rendered
by a district court of the United States.
‘‘(5) Nothing in this section shall create any substantive
claim for relief or cause of action not otherwise existing under
this title, the Federal Rules of Bankruptcy Procedure, or
nonbankruptcy law.
‘‘(b) A governmental unit that has filed a proof of claim in
the case is deemed to have waived sovereign immunity with respect
to a claim against such governmental unit that is property of
the estate and that arose out of the same transaction or occurrence
out of which the claim of such governmental unit arose.
‘‘(c) Notwithstanding any assertion of sovereign immunity by
a governmental unit, there shall be offset against a claim or interest
of a governmental unit any claim against such governmental unit
that is property of the estate.’’.
SEC. 114. SERVICE OF PROCESS IN BANKRUPTCY PROCEEDINGS ON
AN INSURED DEPOSITORY INSTITUTION.
Rule 7004 of the Federal Rules of Bankruptcy Procedure is
amended—
(1) in subdivision (b) by striking ‘‘In addition’’ and inserting
‘‘Except as provided in subdivision (h), in addition’’, and
(2) by adding at the end the following:
‘‘(h) SERVICE OF PROCESS ON AN INSURED DEPOSITORY INSTITU-
TION.—Service on an insured depository institution (as defined in
section 3 of the Federal Deposit Insurance Act) in a contested
matter or adversary proceeding shall be made by certified mail
addressed to an officer of the institution unless—
‘‘(1) the institution has appeared by its attorney, in which
case the attorney shall be served by first class mail;
‘‘(2) the court orders otherwise after service upon the
institution by certified mail of notice of an application to permit
service on the institution by first class mail sent to an officer
of the institution designated by the institution; or
‘‘(3) the institution has waived in writing its entitlement
to service by certified mail by designating an officer to receive
service.’’.
SEC. 115. MEETINGS OF CREDITORS AND EQUITY SECURITY HOLDERS.
Section 341 of title 11, United States Code, is amended by
adding at the end the following:
‘‘(d) Prior to the conclusion of the meeting of creditors or equity
security holders, the trustee shall orally examine the debtor to
ensure that the debtor in a case under chapter 7 of this title
is aware of—
‘‘(1) the potential consequences of seeking a discharge in
bankruptcy, including the effects on credit history;
‘‘(2) the debtor’s ability to file a petition under a different
chapter of this title;
H. R. 5116—14
‘‘(3) the effect of receiving a discharge of debts under this
title; and
‘‘(4) the effect of reaffirming a debt, including the debtor’s
knowledge of the provisions of section 524(d) of this title.’’.
SEC. 116. TAX ASSESSMENT.
Section 362(b)(9) of title 11, United States Code, is amended
to read as follows:
‘‘(9) under subsection (a), of—
‘‘(A) an audit by a governmental unit to determine
tax liability;
‘‘(B) the issuance to the debtor by a governmental
unit of a notice of tax deficiency;
‘‘(C) a demand for tax returns; or
‘‘(D) the making of an assessment for any tax and
issuance of a notice and demand for payment of such an
assessment (but any tax lien that would otherwise attach
to property of the estate by reason of such an assessment
shall not take effect unless such tax is a debt of the
debtor that will not be discharged in the case and such
property or its proceeds are transferred out of the estate
to, or otherwise revested in, the debtor).’’.
SEC. 117. ADDITIONAL TRUSTEE COMPENSATION.
Section 330(b) of title 11, United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’, and
(2) by adding at the end thereof the following:
‘‘(2) The Judicial Conference of the United States—
‘‘(A) shall prescribe additional fees of the same kind as
prescribed under section 1914(b) of title 28; and
‘‘(B) may prescribe notice of appearance fees and fees
charged against distributions in cases under this title;
to pay $15 to trustees serving in cases after such trustees’ services
are rendered. Beginning 1 year after the date of the enactment
of the Bankruptcy Reform Act of 1994, such $15 shall be paid
in addition to the amount paid under paragraph (1).’’.
TITLE II—COMMERCIAL BANKRUPTCY
ISSUES
SEC. 201. AIRCRAFT EQUIPMENT AND VESSELS; ROLLING STOCK
EQUIPMENT.
(a) AMENDMENT OF SECTION 1110.—Section 1110 of title 11,
United States Code, is amended to read as follows:
‘‘§ 1110. Aircraft equipment and vessels
‘‘(a)(1) The right of a secured party with a security interest
in equipment described in paragraph (2) or of a lessor or conditional
vendor of such equipment to take possession of such equipment
in compliance with a security agreement, lease, or conditional sale
contract is not affected by section 362, 363, or 1129 or by any
power of the court to enjoin the taking of possession unless—
‘‘(A) before the date that is 60 days after the date of
the order for relief under this chapter, the trustee, subject
to the court’s approval, agrees to perform all obligations of
the debtor that become due on or after the date of the order
H. R. 5116—15
under such security agreement, lease, or conditional sale con-
tract; 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 period; and
‘‘(ii) that occurs after the date of the order 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 period.
‘‘(2) Equipment is described in this paragraph if it is—
‘‘(A) an aircraft, aircraft engine, propeller, appliance, or
spare part (as defined in section 40102 of title 49) that is
subject to a security interest granted by, leased to, or condi-
tionally sold to a debtor that is a citizen of the United States
(as defined in section 40102 of title 49) holding an air carrier
operating certificate issued by the Secretary of Transportation
pursuant to chapter 447 of title 49 for aircraft capable of
carrying 10 or more individuals or 6,000 pounds or more of
cargo; or
‘‘(B) a documented vessel (as defined in section 30101(1)
of title 46) that is subject to a security interest granted by,
leased to, or conditionally sold to a debtor that is a water
carrier that holds a certificate of public convenience and neces-
sity or permit issued by the Interstate Commerce Commission.
‘‘(3) Paragraph (1) applies to a secured party, lessor, or condi-
tional 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 conditional
vendor whose right to take possession is protected under subsection
(a) may agree, subject to the court’s approval, to extend the
60-day period specified in subsection (a)(1).
‘‘(c) With respect to equipment first placed in service on or
prior to the date of enactment of this subsection, for purposes
of this section—
‘‘(1) the term ‘lease’ includes any written agreement with
respect to which the lessor and the debtor, as lessee, have
expressed in the agreement or in a substantially contempora-
neous writing that the agreement is to be treated as a lease
for Federal income tax purposes; and
‘‘(2) the term ‘security interest’ means a purchase-money
equipment security interest.’’.
(b) AMENDMENT OF SECTION 1168.—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 equipment in compliance
with an equipment security agreement, lease, or conditional sale
contract is not affected by section 362, 363, or 1129 or by any
power of the court to enjoin the taking of possession, unless—
‘‘(A) before the date that is 60 days after the date of
commencement of a case under this chapter, the trustee, subject
to the court’s approval, agrees to perform all obligations of
H. R. 5116—16
the debtor that become due on or after the date of commence-
ment of the case under such security 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 commencement of
the case and is an event of default therewith is cured
before the expiration of such 60-day period; and
‘‘(ii) that occurs or becomes an event of default after
the date of commencement of the case is cured before
the later of—
‘‘(I) the date that is 30 days after the date of
the default or event of default; or
‘‘(II) the expiration of such 60-day period.
‘‘(2) Equipment is described in this paragraph if it is rolling
stock equipment or accessories used on such equipment, including
superstructures and racks, that is subject to a security interest
granted by, leased to, or conditionally sold to the debtor.
‘‘(3) Paragraph (1) applies to a secured party, lessor, or condi-
tional 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 conditional
vendor whose right to take possession is protected under subsection
(a) may agree, subject to the court’s approval, to extend the
60-day period specified in subsection (a)(1).
‘‘(c) With respect to equipment first placed in service on or
prior to the date of enactment of this subsection, for purposes
of this section—
‘‘(1) the term ‘lease’ includes any written agreement with
respect to which the lessor and the debtor, as lessee, have
expressed in the agreement or in a substantially contempora-
neous writing that the agreement is to be treated as a lease
for Federal income tax purposes; and
‘‘(2) the term ‘security interest’ means a purchase-money
equipment security interest.
‘‘(d) With respect to equipment first placed in service after
the date of enactment of this subsection, for purposes of this section,
the term ‘rolling stock equipment’ includes rolling stock equipment
that is substantially rebuilt and accessories used on such equip-
ment.’’.
SEC. 202. LIMITATION ON LIABILITY OF NON-INSIDER TRANSFEREE
FOR AVOIDED TRANSFER.
Section 550 of title 11, United States Code, is amended—
(1) by redesignating subsections (c), (d), and (e) as sub-
sections (d), (e), and (f), respectively, and
(2) by inserting after subsection (b) the following:
‘‘(c) If a transfer made between 90 days and one year before
the filing of the petition—
‘‘(1) is avoided under section 547(b) of this title; and
‘‘(2) was made for the benefit of a creditor that at the
time of such transfer was an insider;
the trustee may not recover under subsection (a) from a transferee
that is not an insider.’’.
SEC. 203. PERFECTION OF PURCHASE-MONEY SECURITY INTEREST.
Section 547 of title 11, United States Code, is amended—
H. R. 5116—17
(1) in subsection (c)(3)(B) by striking ‘‘10’’ and inserting
‘‘20’’, and
(2) in subsection (e)(2)(A) by inserting ‘‘, except as provided
in subsection (c)(3)(B)’’ before the semicolon at the end.
SEC. 204. CONTINUED PERFECTION.
(a) AUTOMATIC STAY.—Section 362(b)(3) of title 11, United
States Code, is amended by inserting ‘‘, or to maintain or continue
the perfection of,’’ after ‘‘to perfect’’.
(b) LIMITATIONS ON AVOIDING POWERS.—Section 546(b) of title
11, United States Code, is amended to read as follows:
‘‘(b)(1) The rights and powers of a trustee under sections 544,
545, and 549 of this title are subject to any generally applicable
law that—
‘‘(A) permits perfection of an interest in property to be
effective against an entity that acquires rights in such property
before the date of perfection; or
‘‘(B) provides for the maintenance or continuation of perfec-
tion of an interest in property to be effective against an entity
that acquires rights in such property before the date on which
action is taken to effect such maintenance or continuation.
‘‘(2) If—
‘‘(A) a law described in paragraph (1) requires seizure of
such property or commencement of an action to accomplish
such perfection, or maintenance or continuation of perfection
of an interest in property; and
‘‘(B) such property has not been seized or such an action
has not been commenced before the date of the filing of the
petition;
such interest in such property shall be perfected, or perfection
of such interest shall be maintained or continued, by giving notice
within the time fixed by such law for such seizure or such
commencement.’’.
SEC. 205. REJECTION OF UNEXPIRED LEASES OF REAL PROPERTY OR
TIMESHARE INTERESTS.
(a) AMENDMENT TO SECTION 365.—Section 365(h) of title 11,
United States Code, is amended to read as follows:
‘‘(h)(1)(A) If the trustee rejects an unexpired lease of real prop-
erty under which the debtor is the lessor and—
‘‘(i) if the rejection by the trustee amounts to such a breach
as would entitle the lessee to treat such lease as terminated
by virtue of its terms, applicable nonbankruptcy law, or any
agreement made by the lessee, then the lessee under such
lease may treat such lease as terminated by the rejection;
or
‘‘(ii) if the term of such lease has commenced, the lessee
may retain its rights under such lease (including rights such
as those relating to the amount and timing of payment of
rent and other amounts payable by the lessee and any right
of use, possession, quiet enjoyment, subletting, assignment,
or hypothecation) that are in or appurtenant to the real prop-
erty for the balance of the term of such lease and for any
renewal or extension of such rights to the extent that such
rights are enforceable under applicable nonbankruptcy law.
‘‘(B) If the lessee retains its rights under subparagraph (A)(ii),
the lessee may offset against the rent reserved under such lease
for the balance of the term after the date of the rejection of such
H. R. 5116—18
lease and for the term of any renewal or extension of such lease,
the value of any damage caused by the nonperformance after the
date of such rejection, of any obligation of the debtor under such
lease, but the lessee shall not have any other right against the
estate or the debtor on account of any damage occurring after
such date caused by such nonperformance.
‘‘(C) The rejection of a lease of real property in a shopping
center with respect to which the lessee elects to retain its rights
under subparagraph (A)(ii) does not affect the enforceability under
applicable nonbankruptcy law of any provision in the lease pertain-
ing to radius, location, use, exclusivity, or tenant mix or balance.
‘‘(D) In this paragraph, ‘lessee’ includes any successor, assign,
or mortgagee permitted under the terms of such lease.
‘‘(2)(A) If the trustee rejects a timeshare interest under a
timeshare plan under which the debtor is the timeshare interest
seller and—
‘‘(i) if the rejection amounts to such a breach as would
entitle the timeshare interest purchaser to treat the timeshare
plan as terminated under its terms, applicable nonbankruptcy
law, or any agreement made by timeshare interest purchaser,
the timeshare interest purchaser under the timeshare plan
may treat the timeshare plan as terminated by such rejection;
or
‘‘(ii) if the term of such timeshare interest has commenced,
then the timeshare interest purchaser may retain its rights
in such timeshare interest for the balance of such term and
for any term of renewal or extension of such timeshare interest
to the extent that such rights are enforceable under applicable
nonbankruptcy law.
‘‘(B) If the timeshare interest purchaser retains its rights under
subparagraph (A), such timeshare interest purchaser may offset
against the moneys due for such timeshare interest for the balance
of the term after the date of the rejection of such timeshare interest,
and the term of any renewal or extension of such timeshare interest,
the value of any damage caused by the nonperformance after the
date of such rejection, of any obligation of the debtor under such
timeshare plan, but the timeshare interest purchaser shall not
have any right against the estate or the debtor on account of
any damage occurring after such date caused by such nonperform-
ance.’’.
(b) TECHNICAL AMENDMENT.—Section 553(b)(1) of title 11,
United States Code, is amended by striking ‘‘365(h)(2)’’ and insert-
ing ‘‘365(h)’’.
SEC. 206. CONTENTS OF PLAN.
Section 1123(b) of title 11, United States Code, is amended—
(1) in paragraph (4) by striking ‘‘and’’ at the end,
(2) by redesignating paragraph (5) as paragraph (6), and
(3) by inserting after paragraph (4) the following:
‘‘(5) modify the rights of holders of secured claims, other
than a claim secured only by a security interest in real property
that is the debtor’s principal residence, or of holders of
unsecured claims, or leave unaffected the rights of holders
of any class of claims; and’’.
SEC. 207. PRIORITY FOR INDEPENDENT SALES REPRESENTATIVES.
Section 507(a)(3) of title 11, United States Code, is amended
to read as follows:
H. R. 5116—19
‘‘(3) Third, allowed unsecured claims, but only to the extent
of $4,000 for each individual or corporation, as the case may
be, earned within 90 days before the date of the filing of
the petition or the date of the cessation of the debtor’s business,
whichever occurs first, for—
‘‘(A) wages, salaries, or commissions, including vaca-
tion, severance, and sick leave pay earned by an individual;
or
‘‘(B) sales commissions earned by an individual or by
a corporation with only 1 employee, acting as an independ-
ent contractor in the sale of goods or services for the
debtor in the ordinary course of the debtor’s business if,
and only if, during the 12 months preceding that date,
at least 75 percent of the amount that the individual or
corporation earned by acting as an independent contractor
in the sale of goods or services was earned from the
debtor;’’.
SEC. 208. EXCLUSION FROM THE ESTATE OF INTERESTS IN LIQUID
AND GASEOUS HYDROCARBONS TRANSFERRED BY THE
DEBTOR PURSUANT TO PRODUCTION PAYMENT AGREE-
MENTS.
(a) DEFINITION.—Section 101 of title 11, United States Code,
is amended—
(1) by inserting after paragraph (42) the following:
‘‘(42A) ‘production payment’ means a term overriding roy-
alty satisfiable in cash or in kind—
‘‘(A) contingent on the production of a liquid or gaseous
hydrocarbon from particular real property; and
‘‘(B) from a specified volume, or a specified value, from
the liquid or gaseous hydrocarbon produced from such prop-
erty, and determined without regard to production costs;’’,
and
(2) by inserting after the first paragraph (56) the following:
‘‘(56A) ‘term overriding royalty’ means an interest in liquid
or gaseous hydrocarbons in place or to be produced from
particular real property that entitles the owner thereof to a
share of production, or the value thereof, for a term limited
by time, quantity, or value realized;’’.
(b) PROPERTY OF THE ESTATE.—Section 541(b)(4) of title 11,
United States Code, is amended—
(1) in subparagraph (A) by striking ‘‘(A)’’ and inserting
‘‘(A)(i)’’,
(2) in subparagraph (B)—
(A) by striking ‘‘(B)’’ and inserting ‘‘(ii)’’,
(B) by striking ‘‘such interest’’ and inserting ‘‘the
interest referred to in clause (i)’’, and
(C) by striking the period at the end and inserting
‘‘; or’’, and
(3) by adding at the end the following:
‘‘(B)(i) the debtor has transferred such interest pursu-
ant to a written conveyance of a production payment to
an entity that does not participate in the operation of
the property from which such production payment is trans-
ferred; and
H. R. 5116—20
‘‘(ii) but for the operation of this paragraph, the estate
could include the interest referred to in clause (i) only
by virtue of section 542 of this title;’’.
SEC. 209. SELLER’S RIGHT TO RECLAIM GOODS.
Section 546(c)(1) of title 11, United States Code, is amended
to read as follows:
‘‘(1) such a seller may not reclaim any such goods unless
such seller demands in writing reclamation of such goods—
‘‘(A) before 10 days after receipt of such goods by
the debtor; or
‘‘(B) if such 10-day period expires after the commence-
ment of the case, before 20 days after receipt of such
goods by the debtor; and’’.
SEC. 210. INVESTMENT OF MONEY OF THE ESTATE.
Section 345(b) of title 11, United States Code, is amended—
(1) in paragraph (2) by striking the period at the end
and inserting a semicolon, and
(2) by adding at the end the following:
‘‘unless the court for cause orders otherwise.’’.
SEC. 211. ELECTION OF TRUSTEE UNDER CHAPTER 11.
(a) ELECTION AUTHORIZED.—Section 1104 of title 11 of the
United States Code is amended—
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively, and
(2) by inserting after subsection (a) the following:
‘‘(b) Except as provided in section 1163 of this title, on the
request of a party in interest made not later than 30 days after
the court orders the appointment of a trustee under subsection
(a), the United States trustee shall convene a meeting of creditors
for the purpose of electing one disinterested person to serve as
trustee in the case. The election of a trustee shall be conducted
in the manner provided in subsections (a), (b), and (c) of section
702 of this title.’’.
(b) CONFORMING AMENDMENT.—Section 1106(b) of title 11,
United States Code, is amended by striking ‘‘1104(c)’’ and inserting
‘‘1104(d)’’.
SEC. 212. RIGHTS OF PARTNERSHIP TRUSTEE AGAINST GENERAL
PARTNERS.
Section 723(a) of title 11, United States Code, is amended
by striking ‘‘for the full amount of the deficiency’’ and inserting
‘‘to the extent that under applicable nonbankruptcy law such gen-
eral partner is personally liable for such deficiency’’.
SEC. 213. IMPAIRMENT OF CLAIMS AND INTERESTS.
(a) OBJECTION
TO CLAIMS FILED UNTIMELY.—Section 502(b)
of title 11, United States Code, is amended—
(1) in paragraph (7) by striking ‘‘or’’ at the end,
(2) in paragraph (8) by striking the period at the end
and inserting ‘‘; or’’, and
(3) by adding at the end the following:
‘‘(9) proof of such claim is not timely filed, except to the
extent tardily filed as permitted under paragraph (1), (2), or
(3) of section 726(a) of this title or under the Federal Rules
of Bankruptcy Procedure, except that a claim of a governmental
H. R. 5116—21
unit shall be timely filed if it is filed before 180 days after
the date of the order for relief or such later time as the
Federal Rules of Bankruptcy Procedure may provide.’’.
(b) TARDILY FILED PRIORITY CLAIMS.—Section 726(a)(1) of title
11, United States Code, is amended by adding before the semicolon
the following: ‘‘, proof of which is timely filed under section 501
of this title or tardily filed before the date on which the trustee
commences distribution under this section’’.
(c) FILING OF REQUEST FOR ADMINISTRATIVE EXPENSES.—Sec-
tion 503(a) of title 11, United States Code, is amended—
(1) by inserting ‘‘timely’’ after ‘‘may’’, and
(2) by inserting ‘‘, or may tardily file such request if permitted
by the court for cause’’ before the period at the end.
(d) IMPAIRMENT
OF CLAIMS
OR INTERESTS.—Section 1124 of
title 11, United States Code, is amended—
(1) in paragraph (1) by inserting ‘‘or’’ at the end,
(2) in paragraph (2) by striking ‘‘; or’’ at the end and
inserting a period, and
(3) by striking paragraph (3).
SEC. 214. PROTECTION OF SECURITY INTEREST IN POST-PETITION
RENTS AND LODGING PAYMENTS.
(a) POSTPETITION
EFFECT
OF
SECURITY
INTEREST.—Section
552(b) of title 11, United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’,
(2) by striking ‘‘rents,’’ each place it appears, and
(3) by adding at the end the following:
‘‘(2) Except as provided in sections 363, 506(c), 522, 544, 545,
547, and 548 of this title, and notwithstanding section 546(b) of
this title, if the debtor and an entity entered into a security agree-
ment before the commencement of the case and if the security
interest created by such security agreement extends to property
of the debtor acquired before the commencement of the case and
to amounts paid as rents of such property or the fees, charges,
accounts, or other payments for the use or occupancy of rooms
and other public facilities in hotels, motels, or other lodging prop-
erties, then such security interest extends to such rents and such
fees, charges, accounts, or other payments acquired by the estate
after the commencement of the case to the extent provided in
such security agreement, except to any extent that the court, after
notice and a hearing and based on the equities of the case, orders
otherwise.’’.
(b) USE SALE, OR LEASE OF PROPERTY.—Section 363(a) of title
11, United States Code, is amended by inserting: ‘‘and the fees,
charges, accounts or other payments for the use or occupancy of
rooms and other public facilities in hotels, motels, or other lodging
properties’’ after ‘‘property’’.
SEC. 215. AMENDMENT TO DEFINITION OF SWAP AGREEMENT.
Subparagraph (A) of the first paragraph (55) of section 101
of title 11, United States Code, is amended by inserting ‘‘spot
foreign exchange agreement,’’ after ‘‘forward foreign exchange
agreement,’’.
SEC. 216. LIMITATION ON AVOIDING POWERS.
Section 546(a)(1) of title 11, United States Code, is amended
to read as follows:
‘‘(1) the later of—
H. R. 5116—22
‘‘(A) 2 years after the entry of the order for relief;
or
‘‘(B) 1 year after the appointment or election of the
first trustee under section 702, 1104, 1163, 1202, or 1302
of this title if such appointment or such election occurs
before the expiration of the period specified in subpara-
graph (A); or’’.
SEC. 217. SMALL BUSINESSES.
(a) DEFINITION.—Section 101 of title 11, United States Code,
is amended by inserting after paragraph (51) the following:
‘‘(51C) ‘small business’ means a person engaged in commer-
cial or business activities (but does not include a person whose
primary activity is the business of owning or operating real
property and activities incidental thereto) whose aggregate
noncontingent liquidated secured and unsecured debts as of
the date of the petition do not exceed $2,000,000;’’.
(b) CREDITORS’ COMMITTEES.—Section 1102(a) of title 11, United
States Code, is amended—
(1) in paragraph (1) by striking ‘‘As’’ and inserting ‘‘Except
as provided in paragraph (3), as’’; and
(2) by adding at the end the following:
‘‘(3) On request of a party in interest in a case in which
the debtor is a small business and for cause, the court may order
that a committee of creditors not be appointed.’’.
(c) CONVERSION
OR DISMISSAL.—Section 1112(b) of title 11,
United States Code, is amended by inserting ‘‘or bankruptcy
administrator’’ after ‘‘United States trustee’’.
(d) WHO MAY FILE A PLAN.—Section 1121 of title 11, United
States Code, is amended by adding at the end the following:
‘‘(e) In a case in which the debtor is a small business and
elects to be considered a small business—
‘‘(1) only the debtor may file a plan until after 100 days
after the date of the order for relief under this chapter;
‘‘(2) all plans shall be filed within 160 days after the
date of the order for relief; and
‘‘(3) on request of a party in interest made within the
respective periods specified in paragraphs (1) and (2) and after
notice and a hearing, the court may—
‘‘(A) reduce the 100-day period or the 160-day period
specified in paragraph (1) or (2) for cause; and
‘‘(B) increase the 100-day period specified in paragraph
(1) if the debtor shows that the need for an increase is
caused by circumstances for which the debtor should not
be held accountable.’’.
(e) POSTPETITION DISCLOSURE.—Section 1125 of title 11, United
States Code, is amended by adding at the end the following:
‘‘(f) Notwithstanding subsection (b), in a case in which the
debtor has elected under section 1121(e) to be considered a small
business—
‘‘(1) the court may conditionally approve a disclosure state-
ment subject to final approval after notice and a hearing;
‘‘(2) acceptances and rejections of a plan may be solicited
based on a conditionally approved disclosure statement as long
as the debtor provides adequate information to each holder
of a claim or interest that is solicited, but a conditionally
approved disclosure statement shall be mailed at least 10 days
H. R. 5116—23
prior to the date of the hearing on confirmation of the plan;
and
‘‘(3) a hearing on the disclosure statement may be combined
with a hearing on confirmation of a plan.’’.
SEC. 218. SINGLE ASSET REAL ESTATE.
(a) DEFINITION.—Section 101 of title 11, United States Code,
is amended by inserting after paragraph (51) the following:
‘‘(51B) ‘single asset real estate’ means real property con-
stituting a single property or project, other than residential
real property with fewer than 4 residential units, which gen-
erates substantially all of the gross income of a debtor and
on which no substantial business is being conducted by a debtor
other than the business of operating the real property and
activities incidental thereto having aggregate noncontingent,
liquidated secured debts in an amount no more than
$4,000,000;’’.
(b) AUTOMATIC STAY.—Section 362(d) of title 11, United States
Code, is amended—
(1) in paragraph (1) by striking ‘‘or’’ at the end,
(2) in paragraph (2) by striking the period at the end
and inserting ‘‘; or’’, and
(3) by adding at the end the following:
‘‘(3) with respect to a stay of an act against single asset
real estate under subsection (a), by a creditor whose claim
is secured by an interest in such real estate, unless, not later
than the date that is 90 days after the entry of the order
for relief (or such later date as the court may determine for
cause by order entered within that 90-day period)—
‘‘(A) the debtor has filed a plan of reorganization that
has a reasonable possibility of being confirmed within a
reasonable time; or
‘‘(B) the debtor has commenced monthly payments to
each creditor whose claim is secured by such real estate
(other than a claim secured by a judgment lien or by
an unmatured statutory lien), which payments are in an
amount equal to interest at a current fair market rate
on the value of the creditor’s interest in the real estate.’’.
SEC. 219. LEASES OF PERSONAL PROPERTY.
(a) ASSUMPTION.—Section 365(b)(2) of title 11, United States
Code, is amended—
(1) in subparagraph (B) by striking ‘‘or’’ at the end,
(2) in subparagraph (C) by striking the period and inserting
‘‘; or’’,
(3) by adding at the end the following:
‘‘(D) the satisfaction of any penalty rate or provision relat-
ing to a default arising from any failure by the debtor to
perform nonmonetary obligations under the executory contract
or unexpired lease.’’.
(b) PERFORMANCE.—Section 365(d) of title 11, United States
Code, is amended by adding at the end the following:
‘‘(10) The trustee shall timely perform all of the obligations
of the debtor, except those specified in section 365(b)(2), first
arising from or after 60 days after the order for relief in
a case under chapter 11 of this title under an unexpired lease
of personal property (other than personal property leased to
an individual primarily for personal, family, or household pur-
H. R. 5116—24
poses), until such lease is assumed or rejected notwithstanding
section 503(b)(1) of this title, unless the court, after notice
and a hearing and based on the equities of the case, orders
otherwise with respect to the obligations or timely performance
thereof. This subsection shall not be deemed to affect the trust-
ee’s obligations under the provisions of subsection (b) or (f).
Acceptance of any such performance does not constitute waiver
or relinquishment of the lessor’s rights under such lease or
under this title.’’.
(c) LIMITATION.—Section 363(e) of title 11, United States Code
is amended by adding at the end the following:
‘‘This subsection also applies to property that is subject to any
unexpired lease of personal property (to the exclusion of such prop-
erty being subject to an order to grant relief from the stay under
section 362).’’.
SEC. 220. EXEMPTION FOR SMALL BUSINESS INVESTMENT COMPA-
NIES.
Section 109(b)(2) of title 11, United States Code, is amended
by inserting after ‘‘homestead association,’’ the following: ‘‘a small
business investment company licensed by the Small Business
Administration under subsection (c) or (d) of section 301 of the
Small Business Investment Act of 1958,’’.
SEC. 221. PAYMENT OF TAXES WITH BORROWED FUNDS.
Section 523(a) of title 11, United States Code, is amended—
(1) in paragraph (13) by striking the period at the end
and inserting a semicolon, and
(2) by adding at the end the following:
‘‘(14) incurred to pay a tax to the United States that would
be nondischargeable pursuant to paragraph (1);’’.
SEC. 222. RETURN OF GOODS.
(a) LIMITATION ON AVOIDING POWERS.—Section 546 of title 11,
United States Code, is amended by adding at the end the following:
‘‘(g) Notwithstanding the rights and powers of a trustee under
sections 544(a), 545, 547, 549, and 553, if the court determines
on a motion by the trustee made not later than 120 days after
the date of the order for relief in a case under chapter 11 of
this title and after notice and a hearing, that a return is in the
best interests of the estate, the debtor, with the consent of a
creditor, may return goods shipped to the debtor by the creditor
before the commencement of the case, and the creditor may offset
the purchase price of such goods against any claim of the creditor
against the debtor that arose before the commencement of the
case.’’.
(b) SETOFF.—Section 553(b)(1) is amended by inserting ‘‘546(h),’’
after ‘‘365(h),’’.
SEC. 223. PROCEEDS OF MONEY ORDER AGREEMENTS.
Section 541(b) of title 11, United States Code, is amended—
(1) in paragraph (3) by striking ‘‘or’’ at the end and insert-
ing a semicolon,
(2) in paragraph (4) by striking the period at the end
and inserting ‘‘; or’’, and
(3) by inserting after paragraph (4) the following:
H. R. 5116—25
‘‘(5) any interest in cash or cash equivalents that constitute
proceeds of a sale by the debtor of a money order that is
made—
‘‘(A) on or after the date that is 14 days prior to
the date on which the petition is filed; and
‘‘(B) under an agreement with a money order issuer
that prohibits the commingling of such proceeds with prop-
erty of the debtor (notwithstanding that, contrary to the
agreement, the proceeds may have been commingled with
property of the debtor),
unless the money order issuer had not taken action, prior
to the filing of the petition, to require compliance with the
prohibition.’’.
SEC. 224. TRUSTEE DUTIES; PROFESSIONAL FEES.
(a) TRUSTEE’S DUTIES.—Section 586(a)(3)(A) of title 28, United
States Code, is amended to read as follows:
‘‘(A)(i) reviewing, in accordance with procedural guide-
lines adopted by the Executive Office of the United States
Trustee (which guidelines shall be applied uniformly by
the United States trustee except when circumstances war-
rant different treatment), applications filed for compensa-
tion and reimbursement under section 330 of title 11; and
‘‘(ii) filing with the court comments with respect to
such application and, if the United States Trustee considers
it to be appropriate, objections to such application.’’.
(b) PROFESSIONAL FEES.—Section 330(a) of title 11, United
States Code, is amended to read as follows:
‘‘(a)(1) After notice to the parties in interest and the United
States Trustee and a hearing, and subject to sections 326, 328,
and 329, the court may award to a trustee, an examiner, a profes-
sional person employed under section 327 or 1103—
‘‘(A) reasonable compensation for actual, necessary services
rendered by the trustee, examiner, professional person, or attor-
ney and by any paraprofessional person employed by any such
person; and
‘‘(B) reimbursement for actual, necessary expenses.
‘‘(2) The court may, on its own motion or on the motion of
the United States Trustee, the United States Trustee for the District
or Region, the trustee for the estate, or any other party in interest,
award compensation that is less than the amount of compensation
that is requested.
‘‘(3)(A) In determining the amount of reasonable compensation
to be awarded, the court shall consider the nature, the extent,
and the value of such services, taking into account all relevant
factors, including—
‘‘(A) the time spent on such services;
‘‘(B) the rates charged for such services;
‘‘(C) whether the services were necessary to the administra-
tion of, or beneficial at the time at which the service was
rendered toward the completion of, a case under this title;
‘‘(D) whether the services were performed within a reason-
able amount of time commensurate with the complexity, impor-
tance, and nature of the problem, issue, or task addressed;
and
H. R. 5116—26
‘‘(E) whether the compensation is reasonable based on the
customary 
compensation 
charged 
by 
comparably 
skilled
practitioners in cases other than cases under this title.
‘‘(4)(A) Except as provided in subparagraph (B), the court shall
not allow compensation for—
‘‘(i) unnecessary duplication of services; or
‘‘(ii) services that were not—
‘‘(I) reasonably likely to benefit the debtor’s estate;
or
‘‘(II) necessary to the administration of the case.
‘‘(B) In a chapter 12 or chapter 13 case in which the debtor
is an individual, the court may allow reasonable compensation
to the debtor’s attorney for representing the interests of the debtor
in connection with the bankruptcy case based on a consideration
of the benefit and necessity of such services to the debtor and
the other factors set forth in this section.
‘‘(5) The court shall reduce the amount of compensation
awarded under this section by the amount of any interim compensa-
tion awarded under section 331, and, if the amount of such interim
compensation exceeds the amount of compensation awarded under
this section, may order the return of the excess to the estate.
‘‘(6) Any compensation awarded for the preparation of a fee
application shall be based on the level and skill reasonably required
to prepare the application.’’.
SEC. 225. NOTICES TO CREDITORS.
Section 342 of title 11, United States Code, is amended by
adding at the end the following:
‘‘(c) If notice is required to be given by the debtor to a creditor
under this title, any rule, any applicable law, or any order of
the court, such notice shall contain the name, address, and taxpayer
identification number of the debtor, but the failure of such notice
to contain such information shall not invalidate the legal effect
of such notice.’’.
TITLE III—CONSUMER BANKRUPTCY
ISSUES
SEC. 301. PERIOD FOR CURING DEFAULT RELATING TO PRINCIPAL
RESIDENCE.
Section 1322 of title 11, United States Code, is amended—
(1) by redesignating subsection (c) as subsection (d), and
(2) by inserting after subsection (b) the following:
‘‘(c) 
Notwithstanding 
subsection 
(b)(2) 
and 
applicable
nonbankruptcy law—
‘‘(1) a default with respect to, or that gave rise to, a lien
on the debtor’s principal residence may be cured under para-
graph (3) or (5) of subsection (b) until such residence is sold
at a foreclosure sale that is conducted in accordance with
applicable nonbankruptcy law; and
‘‘(2) in a case in which the last payment on the original
payment schedule for a claim secured only by a security interest
in real property that is the debtor’s principal residence is due
before the date on which the final payment under the plan
is due, the plan may provide for the payment of the claim
as modified pursuant to section 1325(a)(5) of this title.’’.
H. R. 5116—27
SEC. 302. NONDISCHARGEABILITY OF FINE UNDER CHAPTER 13.
Section 1328(a)(3) of title 11, United States Code, is amended
by inserting ‘‘, or a criminal fine,’’ after ‘‘restitution’’.
SEC. 303. IMPAIRMENT OF EXEMPTIONS.
Section 522(f) of title 11, United States Code, is amended—
(1) in paragraph (2)—
(A) by redesignating subparagraphs (A), (B), and (C)
as clauses (i), (ii), and (iii), respectively, and
(B) by striking ‘‘(2)’’ and inserting ‘‘(B)’’,
(2) by redesignating paragraph (1) as subparagraph (A),
(3) by inserting ‘‘(1)’’ before ‘‘Notwithstanding’’, and
(4) by adding at the end the following:
‘‘(2)(A) For the purposes of this subsection, a lien shall be
considered to impair an exemption to the extent that the sum
of—
‘‘(i) the lien;
‘‘(ii) all other liens on the property; and
‘‘(iii) the amount of the exemption that the debtor could
claim if there were no liens on the property;
exceeds the value that the debtor’s interest in the property would
have in the absence of any liens.
‘‘(B) In the case of a property subject to more than 1 lien,
a lien that has been avoided shall not be considered in making
the calculation under subparagraph (A) with respect to other liens.
‘‘(C) This paragraph shall not apply with respect to a judgment
arising out of a mortgage foreclosure.’’.
SEC. 304. PROTECTION OF CHILD SUPPORT AND ALIMONY.
(a) DEFINITION.—Section 101 of title 11, United States Code,
is amended by inserting after paragraph (12) the following:
‘‘(12A) ‘debt for child support’ means a debt of a kind
specified in section 523(a)(5) of this title for maintenance or
support of a child of the debtor;’’.
(b) RELIEF FROM AUTOMATIC STAY.—Section 362(b)(2) of title
11, United States Code, is amended to read as follows:
‘‘(2) under subsection (a) of this section—
‘‘(A) of the commencement or continuation of an action
or proceeding for—
‘‘(i) the establishment of paternity; or
‘‘(ii) the establishment or modification of an order
for alimony, maintenance, or support; or
‘‘(B) of the collection of alimony, maintenance, or sup-
port from property that is not property of the estate;’’.
(c) PRIORITY
OF CLAIMS.—Section 507(a) of title 11, United
States Code, is amended—
(1) in paragraph (8) by striking ‘‘(8) Eighth’’ and inserting
‘‘(9) Ninth’’,
(2) in paragraph (7) by striking ‘‘(7) Seventh’’ and inserting
‘‘(8) Eighth’’, and
(3) by inserting after paragraph (6) the following:
‘‘(7) Seventh, allowed claims for debts to a spouse, former
spouse, or child of the debtor, for alimony to, maintenance
for, or support of such spouse or child, in connection with
a separation agreement, divorce decree or other order of a
court of record, determination made in accordance with State
H. R. 5116—28
or territorial law by a governmental unit, or property settlement
agreement, but not to the extent that such debt—
‘‘(A) is assigned to another entity, voluntarily, by oper-
ation of law, or otherwise; or
‘‘(B) includes a liability designated as alimony, mainte-
nance, or support, unless such liability is actually in the
nature of alimony, maintenance or support.’’.
(d) PROTECTION
OF LIENS.—Section 522(f)(1)(A) of title 11,
United States Code, as amended by section 303, is amended by
inserting after ‘‘lien’’ the following:
‘‘, other than a judicial lien that secures a debt—
‘‘(i) to a spouse, former spouse, or child of the debtor,
for alimony to, maintenance for, or support of such spouse
or child, in connection with a separation agreement, divorce
decree or other order of a court of record, determination
made in accordance with State or territorial law by a
governmental unit, or property settlement agreement; and
‘‘(ii) to the extent that such debt—
‘‘(I) is not assigned to another entity, voluntarily,
by operation of law, or otherwise; and
‘‘(II) includes a liability designated as alimony,
maintenance, or support, unless such liability is actu-
ally in the nature of alimony, maintenance or support.’’.
(e) EXCEPTION TO DISCHARGE.—Section 523 of title 11, United
States Code, as amended by section 221, is amended by adding
at the end the following:
‘‘(15) not of the kind described in paragraph (5) that is
incurred by the debtor in the course of a divorce or separation
or in connection with a separation agreement, divorce decree
or other order of a court of record, a determination made
in accordance with State or territorial law by a governmental
unit unless—
‘‘(A) the debtor does not have the ability to pay such
debt from income or property of the debtor not reasonably
necessary to be expended for the maintenance or support
of the debtor or a dependent of the debtor and, if the
debtor is engaged in a business, for the payment of expendi-
tures necessary for the continuation, preservation, and
operation of such business; or
‘‘(B) discharging such debt would result in a benefit
to the debtor that outweighs the detrimental consequences
to a spouse, former spouse, or child of the debtor;’’, and
(2) in subsection (c)(1) by striking ‘‘or (6)’’ each place it
appears and inserting ‘‘(6), or (15)’’.
(f) PROTECTION AGAINST TRUSTEE AVOIDANCE.—Section 547(c)
of title 11, United States Code, is amended—
(1) in paragraph (6) by striking ‘‘or’’ at the end,
(2) by redesignating paragraph (7) as paragraph (8), and
(3) by inserting after paragraph (6) the following:
‘‘(7) to the extent such transfer was a bona fide payment
of a debt to a spouse, former spouse, or child of the debtor,
for alimony to, maintenance for, or support of such spouse
or child, in connection with a separation agreement, divorce
decree or other order of a court of record, determination made
in accordance with State or territorial law by a governmental
unit, or property settlement agreement, but not to the extent
that such debt—
H. R. 5116—29
‘‘(A) is assigned to another entity, voluntarily, by oper-
ation of law, or otherwise; or
‘‘(B) includes a liability designated as alimony, mainte-
nance, or support, unless such liability is actually in the
nature of alimony, maintenance or support; or’’.
(g) APPEARANCE BEFORE COURT.—Child support creditors or
their representatives shall be permitted to appear and intervene
without charge, and without meeting any special local court rule
requirement for attorney appearances, in any bankruptcy case or
proceeding in any bankruptcy court or district court of the United
States if such creditors or representatives file a form in such court
that contains information detailing the child support debt, its status,
and other characteristics.
(h) CONFORMING AMENDMENTS.—Title 11 of the United States
Code is amended—
(1) in section 502(i) by striking ‘‘507(a)(7)’’ and inserting
‘‘507(a)(8)’’,
(2) in section 503(b)(1)(B)(i) by striking ‘‘507(a)(7)’’ and
inserting ‘‘507(a)(8)’’,
(3) in section 523(a)(1)(A) by striking ‘‘507(a)(7)’’ and insert-
ing ‘‘507(a)(8)’’,
(4) in section 724(b)(2) by striking ‘‘or 507(a)(6)’’ and insert-
ing ‘‘507(a)(6), or 507(a)(7)’’,
(5) in section 726(b) by striking ‘‘or (7)’’ and inserting
‘‘, (7), or (8)’’,
(6) in section 1123(a)(1) by striking ‘‘507(a)(7)’’ and insert-
ing ‘‘507(a)(8)’’,
(7) in section 1129(a)(9)—
(i) in subparagraph (B) by striking ‘‘or 507(a)(6)’’ and
inserting ‘‘, 507(a)(6), or 507(a)(7)’’, and
(ii) in subparagraph (C) by striking ‘‘507(a)(7)’’ and
inserting ‘‘507(a)(8)’’.
SEC. 305. INTEREST ON INTEREST.
(a) CHAPTER 11.—Section 1123 of title 11, United States Code,
is amended by adding at the end the following:
‘‘(d) Notwithstanding subsection (a) of this section and sections
506(b), 1129(a)(7), and 1129(b) of this title, if it is proposed in
a plan to cure a default the amount necessary to cure the default
shall be determined in accordance with the underlying agreement
and applicable nonbankruptcy law.’’.
(b) CHAPTER 12.—Section 1222 of title 11, United States Code,
is amended by adding at the end the following:
‘‘(d) Notwithstanding subsection (b)(2) of this section and sec-
tions 506(b) and 1225(a)(5) of this title, if it is proposed in a
plan to cure a default, the amount necessary to cure the default,
shall be determined in accordance with the underlying agreement
and applicable nonbankruptcy law.’’.
(c) CHAPTER 13.—Section 1322 of title 11, United States Code,
is amended by adding at the end the following:
‘‘(e) Notwithstanding subsection (b)(2) of this section and sec-
tions 506(b) and 1325(a)(5) of this title, if it is proposed in a
plan to cure a default, the amount necessary to cure the default,
shall be determined in accordance with the underlying agreement
and applicable nonbankruptcy law.’’.
H. R. 5116—30
SEC. 306. EXCEPTION TO DISCHARGE.
Section 523(a)(2)(C) of title 11, United States Code, is
amended—
(1) by striking ‘‘$500’’ and inserting ‘‘$1,000’’,
(2) by striking ‘‘forty’’ and inserting ‘‘60’’, and
(3) by striking ‘‘twenty’’ and inserting ‘‘60’’.
SEC. 307. PAYMENTS UNDER CHAPTER 13.
Section 1326(a)(2) of title 11, United States Code, is amended
in the second sentence by striking the period and inserting ‘‘as
soon as practicable.’’.
SEC. 308. BANKRUPTCY PETITION PREPARERS.
(a) AMENDMENT OF CHAPTER 1.—Chapter 1 of title 11, United
States Code, is amended by adding at the end the following:
‘‘§ 110. Penalty for persons who negligently or fraudulently
prepare bankruptcy petitions
‘‘(a) In this section—
‘‘(1) ‘bankruptcy petition preparer’ means a person, other
than an attorney or an employee of an attorney, who prepares
for compensation a document for filing; and
‘‘(2) ‘document for filing’ means a petition or any other
document prepared for filing by a debtor in a United States
bankruptcy court or a United States district court in connection
with a case under this title.
‘‘(b)(1) A bankruptcy petition preparer who prepares a document
for filing shall sign the document and print on the document the
preparer’s name and address.
‘‘(2) A bankruptcy petition preparer who fails to comply with
paragraph (1) may be fined not more than $500 for each such
failure unless the failure is due to reasonable cause.
‘‘(c)(1) A bankruptcy petition preparer who prepares a document
for filing shall place on the document, after the preparer’s signature,
an identifying number that identifies individuals who prepared
the document.
‘‘(2) For purposes of this section, the identifying number of
a bankruptcy petition preparer shall be the Social Security account
number of each individual who prepared the document or assisted
in its preparation.
‘‘(3) A bankruptcy petition preparer who fails to comply with
paragraph (1) may be fined not more than $500 for each such
failure unless the failure is due to reasonable cause.
‘‘(d)(1) A bankruptcy petition preparer shall, not later than
the time at which a document for filing is presented for the debtor’s
signature, furnish to the debtor a copy of the document.
‘‘(2) A bankruptcy petition preparer who fails to comply with
paragraph (1) may be fined not more than $500 for each such
failure unless the failure is due to reasonable cause.
‘‘(e)(1) A bankruptcy petition preparer shall not execute any
document on behalf of a debtor.
‘‘(2) A bankruptcy petition preparer may be fined not more
than $500 for each document executed in violation of paragraph
(1).
‘‘(f)(1) A bankruptcy petition preparer shall not use the word
‘legal’ or any similar term in any advertisements, or advertise
H. R. 5116—31
under any category that includes the word ‘legal’ or any similar
term.
‘‘(2) A bankruptcy petition preparer shall be fined not more
than $500 for each violation of paragraph (1).
‘‘(g)(1) A bankruptcy petition preparer shall not collect or
receive any payment from the debtor or on behalf of the debtor
for the court fees in connection with filing the petition.
‘‘(2) A bankruptcy petition preparer shall be fined not more
than $500 for each violation of paragraph (1).
‘‘(h)(1) Within 10 days after the date of the filing of a petition,
a bankruptcy petition preparer shall file a declaration under penalty
of perjury disclosing any fee received from or on behalf of the
debtor within 12 months immediately prior to the filing of the
case, and any unpaid fee charged to the debtor.
‘‘(2) The court shall disallow and order the immediate turnover
to the bankruptcy trustee of any fee referred to in paragraph
(1) found to be in excess of the value of services rendered for
the documents prepared. An individual debtor may exempt any
funds so recovered under section 522(b).
‘‘(3) The debtor, the trustee, a creditor, or the United States
trustee may file a motion for an order under paragraph (2).
‘‘(4) A bankruptcy petition preparer shall be fined not more
than $500 for each failure to comply with a court order to turn
over funds within 30 days of service of such order.
‘‘(i)(1) If a bankruptcy case or related proceeding is dismissed
because of the failure to file bankruptcy papers, including papers
specified in section 521(1) of this title, the negligence or intentional
disregard of this title or the Federal Rules of Bankruptcy Procedure
by a bankruptcy petition preparer, or if a bankruptcy petition
preparer violates this section or commits any fraudulent, unfair,
or deceptive act, the bankruptcy court shall certify that fact to
the district court, and the district court, on motion of the debtor,
the trustee, or a creditor and after a hearing, shall order the
bankruptcy petition preparer to pay to the debtor—
‘‘(A) the debtor’s actual damages;
‘‘(B) the greater of—
‘‘(i) $2,000; or
‘‘(ii) twice the amount paid by the debtor to the bank-
ruptcy petition preparer for the preparer’s services; and
‘‘(C) reasonable attorneys’ fees and costs in moving for
damages under this subsection.
‘‘(2) If the trustee or creditor moves for damages on behalf
of the debtor under this subsection, the bankruptcy petition pre-
parer shall be ordered to pay the movant the additional amount
of $1,000 plus reasonable attorneys’ fees and costs incurred.
‘‘(j)(1) A debtor for whom a bankruptcy petition preparer has
prepared a document for filing, the trustee, a creditor, or the United
States trustee in the district in which the bankruptcy petition
preparer resides, has conducted business, or the United States
trustee in any other district in which the debtor resides may bring
a civil action to enjoin a bankruptcy petition preparer from engaging
in any conduct in violation of this section or from further acting
as a bankruptcy petition preparer.
‘‘(2)(A) In an action under paragraph (1), if the court finds
that—
‘‘(i) a bankruptcy petition preparer has—
H. R. 5116—32
‘‘(I) engaged in conduct in violation of this section
or of any provision of this title a violation of which subjects
a person to criminal penalty;
‘‘(II) misrepresented the preparer’s experience or edu-
cation as a bankruptcy petition preparer; or
‘‘(III) engaged in any other fraudulent, unfair, or decep-
tive conduct; and
‘‘(ii) injunctive relief is appropriate to prevent the recur-
rence of such conduct,
the court may enjoin the bankruptcy petition preparer from engag-
ing in such conduct.
‘‘(B) If the court finds that a bankruptcy petition preparer
has continually engaged in conduct described in subclause (I), (II),
or (III) of clause (i) and that an injunction prohibiting such conduct
would not be sufficient to prevent such person’s interference with
the proper administration of this title, or has not paid a penalty
imposed under this section, the court may enjoin the person from
acting as a bankruptcy petition preparer.
‘‘(3) The court shall award to a debtor, trustee, or creditor
that brings a successful action under this subsection reasonable
attorney’s fees and costs of the action, to be paid by the bankruptcy
petition preparer.
‘‘(k) Nothing in this section shall be construed to permit activi-
ties that are otherwise prohibited by law, including rules and laws
that prohibit the unauthorized practice of law.’’.
(b) The chapter analysis for chapter 1 of title 11, United States
Code, is amended by adding at the end the following new item:
‘‘110. Penalty for persons who negligently or fraudulently prepare bankruptcy peti-
tions.’’.
SEC. 309. FAIRNESS TO CONDOMINIUM AND COOPERATIVE OWNERS.
Section 523(a) of title 11, United States Code, as amended
by sections 221 and 304, is amended by adding at the end the
following:
‘‘(16) for a fee or assessment that becomes due and payable
after the order for relief to a membership association with
respect to the debtor’s interest in a dwelling unit that has
condominium ownership or in a share of a cooperative housing
corporation, but only if such fee or assessment is payable for
a period during which—
‘‘(A) the debtor physically occupied a dwelling unit
in the condominium or cooperative project; or
‘‘(B) the debtor rented the dwelling unit to a tenant
and received payments from the tenant for such period,
but nothing in this paragraph shall except from discharge the
debt of a debtor for a membership association fee or assessment
for a period arising before entry of the order for relief in
a pending or subsequent bankruptcy case.’’.
SEC. 310. NONAVOIDABILITY OF FIXING OF LIEN ON TOOLS AND
IMPLEMENTS OF TRADE, ANIMALS, AND CROPS.
Section 522(f) of title 11, United States Code, as amended
by sections 303 and 304, is amended—
(1) in paragraph (1) by inserting ‘‘but subject to paragraph
(3)’’ after ‘‘waiver of exemptions’’, and
(2) by adding at the end the following:
‘‘(3) In a case in which State law that is applicable to the
debtor—
H. R. 5116—33
‘‘(A) permits a person to voluntarily waive a right to claim
exemptions under subsection (d) or prohibits a debtor from
claiming exemptions under subsection (d); and
‘‘(B) either permits the debtor to claim exemptions under
State law without limitation in amount, except to the extent
that the debtor has permitted the fixing of a consensual lien
on any property or prohibits avoidance of a consensual lien
on property otherwise eligible to be claimed as exempt property;
the debtor may not avoid the fixing of a lien on an interest of
the debtor or a dependent of the debtor in property if the lien
is a nonpossessory, nonpurchase-money security interest in imple-
ments, professional books, or tools of the trade of the debtor or
a dependent of the debtor or farm animals or crops of the debtor
or a dependent of the debtor to the extent the value of such
implements, professional books, tools of the trade, animals, and
crops exceeds $5,000.’’.
SEC. 311. CONVERSION OF CASE UNDER CHAPTER 13.
Section 348 of title 11, United States Code, is amended by
adding at the end the following:
‘‘(f)(1) Except as provided in paragraph (2), when a case under
chapter 13 of this title is converted to a case under another chapter
under this title—
‘‘(A) property of the estate in the converted case shall
consist of property of the estate, as of the date of filing of
the petition, that remains in the possession of or is under
the control of the debtor on the date of conversion; and
‘‘(B) valuations of property and of allowed secured claims
in the chapter 13 case shall apply in the converted case, with
allowed secured claims reduced to the extent that they have
been paid in accordance with the chapter 13 plan.
‘‘(2) If the debtor converts a case under chapter 13 of this
title to a case under another chapter under this title in bad faith,
the property in the converted case shall consist of the property
of the estate as of the date of conversion.’’.
SEC. 312. BANKRUPTCY FRAUD.
(a) IN GENERAL.—
(1) OFFENSES.—Chapter 9 of title 18, United States Code,
is amended—
(A) by amending sections 152, 153, and 154 to read
as follows:
‘‘§ 152. Concealment of assets; false oaths and claims; bribery
‘‘A person who—
‘‘(1) knowingly and fraudulently conceals from a custodian,
trustee, marshal, or other officer of the court charged with
the control or custody of property, or, in connection with a
case under title 11, from creditors or the United States Trustee,
any property belonging to the estate of a debtor;
‘‘(2) knowingly and fraudulently makes a false oath or
account in or in relation to any case under title 11;
‘‘(3) knowingly and fraudulently makes a false declaration,
certificate, verification, or statement under penalty of perjury
as permitted under section 1746 of title 28, in or in relation
to any case under title 11;
‘‘(4) knowingly and fraudulently presents any false claim
for proof against the estate of a debtor, or uses any such
H. R. 5116—34
claim in any case under title 11, in a personal capacity or
as or through an agent, proxy, or attorney;
‘‘(5) knowingly and fraudulently receives any material
amount of property from a debtor after the filing of a case
under title 11, with intent to defeat the provisions of title
11;
‘‘(6) knowingly and fraudulently gives, offers, receives, or
attempts to obtain any money or property, remuneration, com-
pensation, reward, advantage, or promise thereof for acting
or forbearing to act in any case under title 11;
‘‘(7) in a personal capacity or as an agent or officer of
any person or corporation, in contemplation of a case under
title 11 by or against the person or any other person or corpora-
tion, or with intent to defeat the provisions of title 11, know-
ingly and fraudulently transfers or conceals any of his property
or the property of such other person or corporation;
‘‘(8) after the filing of a case under title 11 or in contempla-
tion thereof, knowingly and fraudulently conceals, destroys,
mutilates, falsifies, or makes a false entry in any recorded
information (including books, documents, records, and papers)
relating to the property or financial affairs of a debtor; or
‘‘(9) after the filing of a case under title 11, knowingly
and fraudulently withholds from a custodian, trustee, marshal,
or other officer of the court or a United States Trustee entitled
to its possession, any recorded information (including books,
documents, records, and papers) relating to the property or
financial affairs of a debtor,
shall be fined not more than $5,000, imprisoned not more than
5 years, or both.
‘‘§ 153. Embezzlement against estate
‘‘(a) OFFENSE.—A person described in subsection (b) who know-
ingly and fraudulently appropriates to the person’s own use, embez-
zles, spends, or transfers any property or secretes or destroys any
document belonging to the estate of a debtor shall be fined not
more than $5,000, imprisoned not more than 5 years, or both.
‘‘(b) PERSON TO WHOM SECTION APPLIES.—A person described
in this subsection is one who has access to property or documents
belonging to an estate by virtue of the person’s participation in
the administration of the estate as a trustee, custodian, marshal,
attorney, or other officer of the court or as an agent, employee,
or other person engaged by such an officer to perform a service
with respect to the estate.
‘‘§ 154. Adverse interest and conduct of officers
‘‘A person who, being a custodian, trustee, marshal, or other
officer of the court—
‘‘(1) knowingly purchases, directly or indirectly, any prop-
erty of the estate of which the person is such an officer in
a case under title 11;
‘‘(2) knowingly refuses to permit a reasonable opportunity
for the inspection by parties in interest of the documents and
accounts relating to the affairs of estates in the person’s charge
by parties when directed by the court to do so; or
‘‘(3) knowingly refuses to permit a reasonable opportunity
for the inspection by the United States Trustee of the docu-
H. R. 5116—35
ments and accounts relating to the affairs of an estate in
the person’s charge,
shall be fined not more than $5,000 and shall forfeit the person’s
office, which shall thereupon become vacant.’’; and
(B) by adding at the end the following:
‘‘§ 156. Knowing disregard of bankruptcy law or rule
‘‘(a) DEFINITIONS.—In this section—
‘‘ ‘bankruptcy petition preparer’ means a person, other than
the debtor’s attorney or an employee of such an attorney, who
prepares for compensation a document for filing.
‘‘ ‘document for filing’ means a petition or any other docu-
ment prepared for filing by a debtor in a United States bank-
ruptcy court or a United States district court in connection
with a case under this title.
‘‘(b) OFFENSE.—If a bankruptcy case or related proceeding is
dismissed because of a knowing attempt by a bankruptcy petition
preparer in any manner to disregard the requirements of title
11, United States Code, or the Federal Rules of Bankruptcy Proce-
dure, the bankruptcy petition preparer shall be fined under this
title, imprisoned not more than 1 year, or both.
‘‘§ 157. Bankruptcy fraud
‘‘A person who, having devised or intending to devise a scheme
or artifice to defraud and for the purpose of executing or concealing
such a scheme or artifice or attempting to do so—
‘‘(1) files a petition under title 11;
‘‘(2) files a document in a proceeding under title 11; or
‘‘(3) makes a false or fraudulent representation, claim, or
promise concerning or in relation to a proceeding under title
11, at any time before or after the filing of the petition, or
in relation to a proceeding falsely asserted to be pending under
such title,
shall be fined under this title, imprisoned not more than 5 years,
or both.’’.
(2) TECHNICAL
AMENDMENTS.—The chapter analysis for
chapter 9 of title 18, United States Code, is amended—
(A) by amending the item relating to section 153 to
read as follows:
‘‘Sec. 153. Embezzlement against estate.’’;
and
(B) by adding at the end the following new items:
‘‘Sec. 156. Knowing disregard of bankruptcy law or rule.
‘‘Sec. 157. Bankruptcy fraud.’’.
(b) RICO.—Section 1961(1)(D) of title 18, United States Code,
is amended by inserting ‘‘(except a case under section 157 of that
title)’’ after ‘‘title 11’’.
SEC. 313. PROTECTION AGAINST DISCRIMINATORY TREATMENT OF
APPLICATIONS FOR STUDENT LOANS.
Section 525 of title 11, United States Code, is amended by
adding at the end the following:
‘‘(c)(1) A governmental unit that operates a student grant or
loan program and a person engaged in a business that includes
the making of loans guaranteed or insured under a student loan
program may not deny a grant, loan, loan guarantee, or loan insur-
ance to a person that is or has been a debtor under this title
H. R. 5116—36
or a bankrupt or debtor under the Bankruptcy Act, or another
person with whom the debtor or bankrupt has been associated,
because the debtor or bankrupt is or has been a debtor under
this title or a bankrupt or debtor under the Bankruptcy Act, has
been insolvent before the commencement of a case under this title
or during the pendency of the case but before the debtor is granted
or denied a discharge, or has not paid a debt that is dischargeable
in the case under this title or that was discharged under the
Bankruptcy Act.
‘‘(2) In this section, ‘student loan program’ means the program
operated under part B, D, or E of title IV of the Higher Education
Act of 1965 or a similar program operated under State or local
law.’’.
TITLE IV—GOVERNMENTAL
BANKRUPTCY ISSUES
SEC. 401. EXCEPTION FROM AUTOMATIC STAY FOR POST-PETITION
PROPERTY TAXES.
Section 362(b) of title 11, United States Code, is amended
by inserting after paragraph (16) the following:
‘‘(18) under subsection (a) of the creation or perfection
of a statutory lien for an ad valorem property tax imposed
by the District of Columbia, or a political subdivision of a
State, if such tax comes due after the filing of the petition.’’.
SEC. 402. MUNICIPAL BANKRUPTCY.
Section 109(c)(2) of title 11, United States Code, is amended
by striking ‘‘generally authorized’’ and inserting ‘‘specifically author-
ized, in its capacity as a municipality or by name,’’.
TITLE V—TECHNICAL CORRECTIONS
SEC. 501. AMENDMENTS 
TO 
BANKRUPTCY 
DEFINITIONS, 
NECES-
SITATED BY ENACTMENT OF PUBLIC LAW 101–647.
(a) ALPHABETIZING AND REDESIGNATING DEFINITIONS.—Section
101 of title 11 of the United States Code, as amended by sections
208, 217, 218, and 304, is amended—
(1) by redesignating paragraph (3) as paragraph (21B) and
transferring such paragraph so as to insert it after paragraph
(21A),
(2) by redesignating paragraph (39) as paragraph (51A)
and transferring such paragraph so as to insert it after para-
graph (51),
(3) by redesignating paragraphs (54) through (57), as so
redesignated by section 2522(e) of Public Law 101–647, as
paragraphs (53A) through (53D), respectively,
(4) by redesignating paragraph (56) as in effect immediately
before the enactment of Public Law 101–647, as paragraph
(35A) and transferring such paragraph so as to insert it after
paragraph (35), and
(5) by redesignating paragraph (57), as in effect imme-
diately before the enactment of Public Law 101–647, as para-
graph (39) and transferring such paragraph so as to insert
it after paragraph (38).
H. R. 5116—37
(b) CONFORMING AND RELATED AMENDMENTS TO TITLE 11 OF
THE UNITED STATES CODE, BASED ON REDESIGNATED DEFINITIONS.—
(1) Section 101 of title 11 of the United States Code, as amended
by subsection (a), is amended—
(A) in paragraph (6) by striking ‘‘section 761(9)’’ and insert-
ing ‘‘section 761’’,
(B) in paragraph (22) by striking ‘‘section 741(7)’’ and
inserting ‘‘section 741’’,
(C) in paragraph (35)(B) by striking ‘‘paragraphs (3)’’ and
inserting ‘‘paragraphs (21B)’’,
(D) in paragraph (49)(B)(ii) by striking ‘‘section 761(13)’’
and inserting ‘‘section 761’’, and
(E) in paragraph (53A)(A), as so redesignated, by striking
‘‘section 741(2)’’ and inserting ‘‘section 741’’.
(2) Section 362(b) of title 11, United States Code, is amended—
(A) in paragraph (6)—
(i) by striking ‘‘section 761(4)’’ and inserting ‘‘section
761’’,
(ii) by striking ‘‘section 741(7)’’ and inserting ‘‘section
741’’,
(iii) by striking ‘‘section 101(34), 741(5), or 761(15)’’
and inserting ‘‘section 101, 741, or 761’’, and
(iv) by striking ‘‘section 101(35) or 741(8)’’ and inserting
‘‘section 101 or 741’’, and
(B) in paragraph (7)—
(i) by striking ‘‘section 741(5) or 761(15)’’ and inserting
‘‘section 741 or 761’’, and
(ii) by striking ‘‘section 741(8)’’ and inserting ‘‘section
741’’.
(3) Section 507(a)(5) of title 11, United States Code, is
amended—
(A) by striking ‘‘section 557(b)(1)’’ and inserting ‘‘section
557(b)’’, and
(B) by striking ‘‘section 557(b)(2)’’ and inserting ‘‘section
557(b)’’.
(4) Section 546 of title 11, United States Code, is amended—
(A) in subsection (e)—
(i) by striking ‘‘section 101(34), 741(5), or 761(15)’’ and
inserting ‘‘section 101, 741, or 761’’, and
(ii) by striking ‘‘section 101(35) or 741(8)’’ and inserting
‘‘section 101 or 741’’, and
(B) in subsection (f)—
(i) by striking ‘‘section 741(5) or 761(15)’’ and inserting
‘‘section 741 or 761’’, and
(ii) by striking ‘‘section 741(8)’’ and inserting ‘‘section
741’’.
(5) Section 548(d)(2) of title 11, United States Code, is
amended—
(A) in subparagraph (B)—
(i) by striking ‘‘section 101(34), 741(5) or 761(15)’’ and
inserting ‘‘section 101, 741, or 761’’, and
(ii) by striking ‘‘section 101(35) or 741(8)’’ and inserting
‘‘section 101 or 741’’, and
(B) in subparagraph (C)—
(i) by striking ‘‘section 741(5) or 761(15)’’ and inserting
‘‘section 741 or 761’’, and
H. R. 5116—38
(ii) by striking ‘‘section 741(8)’’ and inserting ‘‘section
741’’.
(6) Section 555 of title 11, United States Code, is amended
by striking ‘‘section 741(7)’’ and inserting ‘‘section 741 of this title’’.
(7) Section 556 of title 11, United States Code, is amended
by striking ‘‘section 761(4)’’ and inserting ‘‘section 761 of this title’’.
(c) CONFORMING AMENDMENTS
TO OTHER LAWS BASED
ON
REDESIGNATED DEFINITIONS.—(1) Section 207(c)(8)(D) of the Federal
Credit Union Act (12 U.S.C. 1787(c)(8)(D)) is amended—
(A) in clause (ii)(I) by striking ‘‘section 741(7)’’ and inserting
‘‘section 741’’,
(B) in clause (iii) by striking ‘‘section 101(24)’’ and inserting
‘‘section 101’’,
(C) in clause (iv)(I) by striking ‘‘section 101(41)’’ and insert-
ing ‘‘section 101’’, and
(D) in clause (v) by striking ‘‘section 101(50)’’ and inserting
‘‘section 101’’.
(2) Section 11(e)(8)(D) of the Federal Deposit Insurance Act
(12 U.S.C. 1821(e)(8)(D)) is amended—
(A) in clause (ii)(I) by striking ‘‘section 741(7)’’ and inserting
‘‘section 741’’,
(B) in clause (iii) by striking ‘‘section 761(4)’’ and inserting
‘‘section 761’’,
(C) in clause (iv) by striking ‘‘section 101(24)’’ and inserting
‘‘section 101’’,
(D) in clause (v)(I) by striking ‘‘section 101(41)’’ and insert-
ing ‘‘section 101’’, and
(E) in clause (viii) by striking ‘‘section 101(50)’’ and insert-
ing ‘‘section 101’’.
(d) OTHER TECHNICAL AMENDMENTS.—Title 11 of the United
States Code is amended—
(1) in section 101—
(A) in paragraph (33)—
(i) in subparagraph (A) by striking ‘‘(12 U.S.C.
1813(u))’’, and
(ii) in subparagraph (B) by striking ‘‘(12 U.S.C.
1786(r))’’,
(B) in paragraph (34) by striking ‘‘(12 U.S.C. 1752(7))’’,
(C) in paragraph (35)(A) by striking ‘‘(12 U.S.C.
1813(c)(2))’’,
(D) in paragraph (48)—
(i) by striking ‘‘(15 U.S.C. 78q-1)’’, and
(ii) by striking ‘‘(15 U.S.C. 78c(12))’’,
(E) in paragraph (49)—
(i) in subparagraph (A)(xii)—
(I) by striking ‘‘(15 U.S.C. 77a et seq.)’’, and
(II) by striking ‘‘(15 U.S.C. 77c(b))’’, and
(ii) in subparagraph (B)(vi) by striking ‘‘(15 U.S.C.
77c(b))’’, and
(F) in paragraph (53D), as so redesignated by sub-
section (a), by striking the period at the end and inserting
a semicolon,
(2) in section 109(b)(2) by striking ‘‘(12 U.S.C. 1813(h))’’,
(3) in section 322(a) by striking ‘‘1302, or 1202’’ and insert-
ing ‘‘1202, or 1302’’,
(4) in section 346—
H. R. 5116—39
(A) in subsection (a) by striking ‘‘Internal Revenue
Code of 1954 (26 U.S.C. 1 et seq.)’’ and inserting ‘‘Internal
Revenue Code of 1986’’, and
(B) in subsection (g)(1)(C) by striking ‘‘Internal Reve-
nue Code of 1954 (26 U.S.C. 371)’’ and inserting ‘‘Internal
Revenue Code of 1986’’,
(5) in section 348—
(A) in subsection (b) by striking ‘‘1301(a), 1305(a),
1201(a), 1221, and 1228(a)’’ and inserting ‘‘1201(a), 1221,
1228(a), 1301(a), and 1305(a)’’, and
(B) in subsections (b), (c), (d), and (e) by striking ‘‘1307,
or 1208’’ each place it appears and inserting ‘‘1208, or
1307’’,
(6) in section 349(a) by striking ‘‘109(f)’’ and inserting
‘‘109(g)’’,
(7) in section 362—
(A) 
in 
subsection 
(a) 
by 
striking 
‘‘(15 
U.S.C.
78eee(a)(3))’’, and
(B) in subsection (b)—
(i) by striking ‘‘(15 U.S.C. 78eee(a)(3))’’,
(ii) in paragraph (10) by striking ‘‘or’’ at the end,
(iii) in paragraph (12)—
(I) by striking ‘‘the Ship Mortgage Act, 1920
(46 App. U.S.C. 911 et seq.)’’ and inserting ‘‘section
31325 of title 46’’, and
(II) by striking ‘‘(46 App. U.S.C. 1117 and
1271 et seq., respectively)’’,
(iv) in paragraph (13)—
(I) by striking ‘‘the Ship Mortgage Act, 1920
(46 App. U.S.C. 911 et seq.)’’ each place it appears
and inserting ‘‘section 31325 of title 46’’,
(II) by striking ‘‘(46 App. U.S.C. 1117 and
1271 et seq., respectively)’’, and
(III) by striking ‘‘or’’ at the end,
(v) in paragraph (15), as added by Public Law
101–508, by striking ‘‘or’’ at the end,
(vi) in paragraph (16), as added by Public Law
101–508—
(I) by striking ‘‘(20 U.S.C. 1001 et seq.)’’, and
(II) by striking the period at the end and
inserting a semicolon, and
(vii) in paragraph (14), as added by Public Law
101–311—
(I) by striking the period at the end and insert-
ing ‘‘; or’’,
(II) by redesignating such paragraph as para-
graph (17), and
(III) by transferring such paragraph so as to
insert such paragraph after paragraph (16),
(8) in section 363—
(A) in subsection (b)(2) by striking ‘‘(15 U.S.C. 18a)’’,
and
(B) in subsection (c)(1) by striking ‘‘1304, 1203, or
1204’’ and inserting ‘‘1203, 1204, or 1304’’,
(9) in section 364—
(A) in subsection (a) by striking ‘‘1304, 1203, or 1204’’
and inserting ‘‘1203, 1204, or 1304’’, and
H. R. 5116—40
(B) in subsection (f)—
(i) by striking ‘‘(15 U.S.C. 77e)’’, and
(ii) by striking ‘‘(15 U.S.C. 77aaa et seq.)’’,
(10) in section 365—
(A) in subsection (d)(6)(C) by striking ‘‘the Federal
Aviation Act of 1958 (49 U.S.C. 1301)’’ and inserting ‘‘sec-
tion 40102 of title 49’’,
(B) in subparagraphs (A) and (B) of subsection (g)(2)
by striking ‘‘1307, or 1208’’ each place it appears and insert-
ing ‘‘1208, or 1307’’,
(C) in subsection (n)(1)(B) by striking ‘‘to to’’ and insert-
ing ‘‘to’’,
(D) in subsection (o) by striking ‘‘the Federal’’ the first
place it appears and all that follows through ‘‘successors,’’,
and inserting ‘‘a Federal depository institutions regulatory
agency (or predecessor to such agency)’’, and
(E) by striking subsection (p),
(11) in section 507, as amended by section 304—
(A) in subsection (a)(9) by striking ‘‘the Federal’’ the
first place it appears and all that follows through ‘‘succes-
sors,’’, and inserting ‘‘a Federal depository institutions regu-
latory agency (or predecessor to such agency)’’, and
(B) in subsection (d) by striking ‘‘or (a)(6)’’ and inserting
‘‘(a)(6), (a)(7), (a)(8), or (a)(9)’’,
(12) in section 522—
(A) in subsection (b) by striking ‘‘Bankruptcy Rules’’
and inserting ‘‘Federal Rules of Bankruptcy Procedure’’,
and
(B) in subsection (d)(10)(E)(iii)—
(i) by striking ‘‘408, or 409’’ the first place it
appears and inserting ‘‘or 408’’, and
(ii) by striking ‘‘Internal Revenue Code of 1954
(26 U.S.C. 401(a), 403(a), 403(b), 408, or 409)’’ and
inserting ‘‘Internal Revenue Code of 1986’’,
(13) in section 523—
(A) in subsection (a)—
(i) by striking ‘‘1141,,’’ and inserting ‘‘1141,’’, and
(ii) in paragraph (2)(C) by striking ‘‘(15 U.S.C.
1601 et seq.)’’,
(B) in subsection (b)—
(i) by striking ‘‘(20 U.S.C. 1087–3)’’, and
(ii) by striking ‘‘(42 U.S.C. 294f)’’, and
(C) in subsection (e) by striking ‘‘depository institution
or insured credit union’’ and inserting ‘‘insured depository
institution’’,
(14) in section 524—
(A) in subsection (a)(3) by striking ‘‘1328(c)(1)’’ and
inserting ‘‘1328(a)(1)’’,
(B) in subsection (c)(4) by striking ‘‘recission’’ and
inserting ‘‘rescission’’, and
(C) in subsection (d)(1)(B)(ii) by adding ‘‘and’’ at the
end,
(15) in section 525(a)—
(A) by striking ‘‘(7 U.S.C. 499a–499s)’’,
(B) by striking ‘‘(7 U.S.C. 181–229)’’, and
(C) by striking ‘‘(57 Stat. 422; 7 U.S.C. 204)’’,
H. R. 5116—41
(16) in section 542(e) by striking ‘‘to to’’ and inserting
‘‘to’’,
(17) in section 543(d)(1) by striking ‘‘section,’’ and inserting
‘‘section’’,
(18) in section 549(b) inserting ‘‘the trustee may not avoid
under subsection (a) of this section’’ after ‘‘involuntary case,’’,
(19) in section 553—
(A) in subsection (a)(1) by striking ‘‘other than under
section 502(b)(3) of this title’’, and
(B) in subsection (b)(1) by striking ‘‘362(b)(14),,’’ and
inserting ‘‘362(b)(14),’’,
(20) in section 555 by striking ‘‘(15 U.S.C. 78aaa et seq.)’’,
(21) in section 559 by striking ‘‘(15 U.S.C. 78aaa et seq.)’’,
(22) in section 706(a) by striking ‘‘1307, or 1208’’ and insert-
ing ‘‘1208, or 1307’’,
(23) in section 724(d) by striking ‘‘Internal Revenue Code
of 1954 (26 U.S.C. 6323)’’ and inserting ‘‘Internal Revenue
Code of 1986’’,
(24) in section 726(b)—
(A) inserting a comma after ‘‘section 1112’’, and
(B) by inserting ‘‘1009,’’ after ‘‘chapter under section’’,
(25) in section 741(4)(A)(iii) by striking ‘‘(15 U.S.C. 78a
et seq.)’’,
(26) in section 742 by striking ‘‘(15 U.S.C. 78aaa et seq.)’’,
(27) in section 743 by striking ‘‘342(a)’’ and inserting ‘‘342’’,
(28) in section 745(c) by striking ‘‘Internal Revenue Code
of 1954 (26 U.S.C. 1 et seq.)’’ and inserting ‘‘Internal Revenue
Code of 1986’’,
(29) in section 761—
(A) in paragraph (1) by striking ‘‘(7 U.S.C. 1 et seq.)’’,
(B) in paragraph (5) by striking ‘‘(7 U.S.C. 6c(b))’’,
and
(C) in paragraph (13) by striking ‘‘(7 U.S.C. 23)’’,
(30) in section 1104(d), as redesignated by section 211,
inserting a comma after ‘‘interest’’,
(31) in section 1123(a)(1) inserting a comma after ‘‘title’’
the last place it appears,
(32) in section 1129—
(A) in subsection (a)—
(i) in paragraph (4) by striking the semicolon at
the end and inserting a period, and
(ii) in paragraph (12) inserting ‘‘of title 28’’ after
‘‘section 1930’’, and
(B) in subsection (d) by striking ‘‘(15 U.S.C. 77e)’’,
(33) in section 1145—
(A) in subsection (a)—
(i) by striking ‘‘does’’ and inserting ‘‘do’’,
(ii) by striking ‘‘(15 U.S.C. 77e)’’, and
(iii) in paragraph (3)(B)(i) by striking ‘‘(15 U.S.C.
78m or 78o(d))’’,
(B) in subsection (b)(1) by striking ‘‘(15 U.S.C.
77b(11))’’, and
(C) in subsection (d) by striking ‘‘(15 U.S.C. 77aaa
et seq.)’’,
(34) in section 1166(2) by striking ‘‘(45 U.S.C. 791(b))’’,
(35) in section 1167—
(A) by striking ‘‘(45 U.S.C. 151 et seq.)’’, and