372
that is not an insider for the benefit of a creditor that
is an insider, such transfer shall be considered to be avoid-
ed under this section only with respect to the creditor that
is an insider.’’.
(b) APPLICABILITY.—The amendments made by this
section shall apply to any case that is pending or com-
menced on or after the date of enactment of this Act.
SEC. 1214. POSTPETITION TRANSACTIONS.
Section 549(c) of title 11, United States Code, is
amended—
(1) by inserting ‘‘an interest in’’ after ‘‘transfer
of’’ each place it appears;
(2) by striking ‘‘such property’’ and inserting
‘‘such real property’’; and
(3) by striking ‘‘the interest’’ and inserting
‘‘such interest’’.
SEC. 1215. DISPOSITION OF PROPERTY OF THE ESTATE.
Section 726(b) of title 11, United States Code, is
amended by striking ‘‘1009,’’.
SEC. 1216. GENERAL PROVISIONS.
Section 901(a) of title 11, United States Code, as
amended by this Act, is amended by inserting ‘‘1123(d),’’
after ‘‘1123(b),’’.
373
SEC. 1217. 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. 1218. 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. 1219. 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. 1220. 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. 1221. KNOWING DISREGARD OF BANKRUPTCY LAW OR
RULE.
Section 156(a) of title 18, United States Code, is
amended—
(1) in the first undesignated paragraph—
374
(A) by inserting ‘‘(1) the term’’ before
‘‘ ‘bankruptcy’’; and
(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
‘‘ ‘document’’; and
(B) by striking ‘‘this title’’ and inserting
‘‘title 11’’.
SEC. 1222. TRANSFERS MADE BY NONPROFIT CHARITABLE
CORPORATIONS.
(a) SALE OF PROPERTY OF ESTATE.—Section 363(d)
of title 11, United States Code, is amended by striking
‘‘only’’ and all that follows through the end of the sub-
section 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 re-
lief granted under subsection (c), (d), (e), or (f) of
section 362.’’.
(b) CONFIRMATION
OF PLAN
FOR REORGANIZA-
TION.—Section 1129(a) of title 11, United States Code,
375
as amended by this Act, is amended by adding at the end
the following:
‘‘(16) All transfers of property of the plan shall
be made in accordance with any applicable provi-
sions 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, as amended by this Act, is
amended by adding at the end the following:
‘‘(g) 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, or filed
under that title on or after that date of enactment, except
that the court shall not confirm a plan under chapter 11
of title 11, United States Code, without considering
whether this section would substantially affect the rights
376
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 general of the State in which
the debtor is incorporated, was formed, or does business.
(e) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to require the court in which a
case under chapter 11 of title 11, United States Code, is
pending to remand or refer any proceeding, issue, or con-
troversy to any other court or to require the approval of
any other court for the transfer of property.
SEC. 1223. PROTECTION OF VALID PURCHASE MONEY SE-
CURITY INTERESTS.
Section 547(c)(3)(B) of title 11, United States Code,
is amended by striking ‘‘20’’ and inserting ‘‘30’’.
SEC. 1224. BANKRUPTCY JUDGESHIPS.
(a) SHORT TITLE.—This section may be cited as the
‘‘Bankruptcy Judgeship Act of 2001’’.
(b) TEMPORARY JUDGESHIPS.—
(1) APPOINTMENTS.—The following judgeship
positions shall be filled in the manner prescribed in
section 152(a)(1) of title 28, United States Code, for
the appointment of bankruptcy judges provided for
in section 152(a)(2) of such title:
377
(A) One additional bankruptcy judgeship
for the eastern district of California.
(B) Four additional bankruptcy judgeships
for the central district of California.
(C) One additional bankruptcy judgeship
for the district of Delaware.
(D) Two additional bankruptcy judgeships
for the southern district of Florida.
(E) One additional bankruptcy judgeship
for the southern district of Georgia.
(F) Two additional bankruptcy judgeships
for the district of Maryland.
(G) One additional bankruptcy judgeship
for the eastern district of Michigan.
(H) One additional bankruptcy judgeship
for the southern district of Mississippi.
(I) One additional bankruptcy judgeship
for the district of New Jersey.
(J) One additional bankruptcy judgeship
for the eastern district of New York.
(K) One additional bankruptcy judgeship
for the northern district of New York.
(L) One additional bankruptcy judgeship
for the southern district of New York.
378
(M) One additional bankruptcy judgeship
for the eastern district of North Carolina.
(N) One additional bankruptcy judgeship
for the eastern district of Pennsylvania.
(O) One additional bankruptcy judgeship
for the middle district of Pennsylvania.
(P) One additional bankruptcy judgeship
for the district of Puerto Rico.
(Q) One additional bankruptcy judgeship
for the western district of Tennessee.
(R) One additional bankruptcy judgeship
for the eastern district of Virginia.
(2) VACANCIES.—The first vacancy occurring in
the office of a bankruptcy judge in each of the judi-
cial districts set forth in paragraph (1) shall not be
filled if the vacancy—
(A) results from the death, retirement, res-
ignation, or removal of a bankruptcy judge; and
(B) occurs 5 years or more after the ap-
pointment date of a bankruptcy judge ap-
pointed under paragraph (1).
(c) EXTENSIONS.—
(1) IN GENERAL.—The temporary bankruptcy
judgeship positions authorized for the northern dis-
trict of Alabama, the district of Delaware, the dis-
379
trict of Puerto Rico, the district of South Carolina,
and the eastern district of Tennessee under para-
graphs (1), (3), (7), (8), and (9) of section 3(a) of
the Bankruptcy Judgeship Act of 1992 (28 U.S.C.
152 note) are extended until the first vacancy occur-
ring in the office of a bankruptcy judge in the appli-
cable district resulting from the death, retirement,
resignation, or removal of a bankruptcy judge and
occurring—
(A) 8 years or more after November 8,
1993, with respect to the northern district of
Alabama;
(B) 10 years or more after October 28,
1993, with respect to the district of Delaware;
(C) 8 years or more after August 29,
1994, with respect to the district of Puerto
Rico;
(D) 8 years or more after June 27, 1994,
with respect to the district of South Carolina;
and
(E) 8 years or more after November 23,
1993, with respect to the eastern district of
Tennessee.
(2) APPLICABILITY OF OTHER PROVISIONS.—
All other provisions of section 3 of the Bankruptcy
380
Judgeship Act of 1992 (28 U.S.C. 152 note) remain
applicable to temporary judgeship positions referred
to in this subsection.
(d) TECHNICAL AMENDMENTS.—Section 152(a) of
title 28, United States Code, is amended—
(1) in paragraph (1), by striking the first sen-
tence and inserting the following: ‘‘Each bankruptcy
judge to be appointed for a judicial district, as pro-
vided in paragraph (2), shall be appointed by the
United States court of appeals for the circuit in
which such district is located.’’; and
(2) in paragraph (2)—
(A) in the item relating to the middle dis-
trict of Georgia, by striking ‘‘2’’ and inserting
‘‘3’’; and
(B) in the collective item relating to the
middle and southern districts of Georgia, by
striking ‘‘Middle and Southern . . . . . . 1’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of enactment of
this Act.
SEC. 1225. COMPENSATING TRUSTEES.
Section 1326 of title 11, United States Code, is
amended—
(1) in subsection (b)—
381
(A) in paragraph (1), by striking ‘‘and’’;
(B) in paragraph (2), by striking the pe-
riod at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(3) if a chapter 7 trustee has been allowed
compensation due to the conversion or dismissal of
the debtor’s prior case pursuant to section 707(b),
and some portion of that compensation remains un-
paid in a case converted to this chapter or in the
case dismissed under section 707(b) and refiled
under this chapter, the amount of any such unpaid
compensation, which shall be paid monthly—
‘‘(A) by prorating such amount over the
remaining duration of the plan; and
‘‘(B) by monthly payments not to exceed
the greater of—
‘‘(i) $25; or
‘‘(ii) the amount payable to unsecured
nonpriority creditors, as provided by the
plan, multiplied by 5 percent, and the re-
sult divided by the number of months in
the plan.’’; and
(2) by adding at the end the following:
‘‘(d) Notwithstanding any other provision of this
title—
382
‘‘(1) compensation referred to in subsection
(b)(3) is payable and may be collected by the trustee
under that paragraph, even if such amount has been
discharged in a prior proceeding under this title; and
‘‘(2) such compensation is payable in a case
under this chapter only to the extent permitted by
subsection (b)(3).’’.
SEC. 1226. AMENDMENT TO SECTION 362 OF TITLE 11,
UNITED STATES CODE.
Section 362(b)(18) of title 11, United States Code,
is amended to read as follows:
‘‘(18) under subsection (a) of the creation or
perfection of a statutory lien for an ad valorem
property tax, or a special tax or special assessment
on real property whether or not ad valorem, imposed
by a governmental unit, if such tax or assessment
comes due after the filing of the petition;’’.
SEC. 1227. JUDICIAL EDUCATION.
The Director of the Federal Judicial Center, in con-
sultation with the Director of the Executive Office for
United States Trustees, shall develop materials and con-
duct such training as may be useful to courts in imple-
menting this Act and the amendments made by this Act,
including the requirements relating to the means test and
383
reaffirmations under section 707(b) of title 11, United
States Code, as amended by this Act.
SEC. 1228. RECLAMATION.
(a) RIGHTS AND POWERS OF THE TRUSTEE.—Sec-
tion 546(c) of title 11, United States Code, is amended
to read as follows:
‘‘(c)(1) Except as provided in subsection (d) of this
section and subsection (c) of section 507, and subject to
the prior rights of holders of security interests in such
goods or the proceeds thereof, the rights and powers of
the trustee under sections 544(a), 545, 547, and 549 are
subject to the right of a seller of goods that has sold goods
to the debtor, in the ordinary course of such seller’s busi-
ness, to reclaim such goods if the debtor has received such
goods while insolvent, not later than 45 days after the date
of the commencement of a case under this title, but such
seller may not reclaim such goods unless such seller de-
mands in writing reclamation of such goods—
‘‘(A) not later than 45 days after the date of
receipt of such goods by the debtor; or
‘‘(B) not later than 20 days after the date of
commencement of the case, if the 45-day period ex-
pires after the commencement of the case.
384
‘‘(2) If a seller of goods fails to provide notice in the
manner described in paragraph (1), the seller still may
assert the rights contained in section 503(b)(7).’’.
(b) ADMINISTRATIVE EXPENSES.—Section 503(b) of
title 11, United States Code, as amended by this Act, is
amended by adding at the end the following:
‘‘(10) the value of any goods received by the
debtor not later than 20 days after the date of com-
mencement of a case under this title in which the
goods have been sold to the debtor in the ordinary
course of such debtor’s business.’’.
SEC. 1229. PROVIDING REQUESTED TAX DOCUMENTS TO
THE COURT.
(a) CHAPTER 7 CASES.—The court shall not grant
a discharge in the case of an individual seeking bank-
ruptcy under chapter 7 of title 11, United States Code,
unless requested tax documents have been provided to the
court.
(b) CHAPTER 11 AND CHAPTER 13 CASES.—The
court shall not confirm a plan of reorganization in the case
of an individual under chapter 11 or 13 of title 11, United
States Code, unless requested tax documents have been
filed with the court.
(c) DOCUMENT RETENTION.—The court shall de-
stroy documents submitted in support of a bankruptcy
385
claim not sooner than 3 years after the date of the conclu-
sion of a bankruptcy case filed by an individual under
chapter 7, 11, or 13 of title 11, United States Code. In
the event of a pending audit or enforcement action, the
court may extend the time for destruction of such re-
quested tax documents.
SEC. 1230. ENCOURAGING CREDITWORTHINESS.
(a) SENSE OF THE CONGRESS.—It is the sense of the
Congress that—
(1) certain lenders may sometimes offer credit
to consumers indiscriminately, without taking steps
to ensure that consumers are capable of repaying
the resulting debt, and in a manner which may en-
courage certain consumers to accumulate additional
debt; and
(2) resulting consumer debt may increasingly be
a major contributing factor to consumer insolvency.
(b) STUDY REQUIRED.—The Board of Governors of
the Federal Reserve System (hereafter in this section re-
ferred to as the ‘‘Board’’) shall conduct a study of—
(1) consumer credit industry practices of solic-
iting and extending credit—
(A) indiscriminately;
386
(B) without taking steps to ensure that
consumers are capable of repaying the resulting
debt; and
(C) in a manner that encourages con-
sumers to accumulate additional debt; and
(2) the effects of such practices on consumer
debt and insolvency.
(c) REPORT AND REGULATIONS.—Not later than 12
months after the date of enactment of this Act, the
Board—
(1) shall make public a report on its findings
with respect to the indiscriminate solicitation and
extension of credit by the credit industry;
(2) may issue regulations that would require
additional disclosures to consumers; and
(3) may take any other actions, consistent with
its existing statutory authority, that the Board finds
necessary to ensure responsible industrywide prac-
tices and to prevent resulting consumer debt and in-
solvency.
SEC. 1231. PROPERTY NO LONGER SUBJECT TO REDEMP-
TION.
Section 541(b) of title 11, United States Code, is
amended by inserting after paragraph (8), as added by
this Act, the following:
387
‘‘(9) subject to subchapter III of chapter 5, any
interest of the debtor in property where the debtor
pledged or sold tangible personal property (other
than securities or written or printed evidences of in-
debtedness or title) as collateral for a loan or ad-
vance of money given by a person licensed under law
to make such loans or advances, where—
‘‘(A) the tangible personal property is in
the possession of the pledgee or transferee;
‘‘(B) the debtor has no obligation to repay
the money, redeem the collateral, or buy back
the property at a stipulated price; and
‘‘(C) neither the debtor nor the trustee
have exercised any right to redeem provided
under the contract or State law, in a timely
manner as provided under State law and sec-
tion 108(b) of this title; or’’.
SEC. 1232. TRUSTEES.
(a) SUSPENSION
AND
TERMINATION
OF
PANEL
TRUSTEES AND STANDING TRUSTEES.—Section 586(d) of
title 28, United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and
(2) by adding at the end the following:
‘‘(2) A trustee whose appointment under subsection
(a)(1) or under subsection (b) is terminated or who ceases
388
to be assigned to cases filed under title 11, United States
Code, may obtain judicial review of the final agency deci-
sion by commencing an action in the United States district
court for the district for which the panel to which the
trustee is appointed under subsection (a)(1), or in the
United States district court for the district in which the
trustee is appointed under subsection (b) resides, after
first exhausting all available administrative remedies,
which if the trustee so elects, shall also include an admin-
istrative hearing on the record. Unless the trustee elects
to have an administrative hearing on the record, the trust-
ee shall be deemed to have exhausted all administrative
remedies for purposes of this paragraph if the agency fails
to make a final agency decision within 90 days after the
trustee requests administrative remedies. The Attorney
General shall prescribe procedures to implement this para-
graph. The decision of the agency shall be affirmed by
the district court unless it is unreasonable and without
cause based on the administrative record before the agen-
cy.’’.
(b) EXPENSES OF STANDING TRUSTEES.—Section
586(e) of title 28, United States Code, is amended by add-
ing at the end the following:
‘‘(3) After first exhausting all available administra-
tive remedies, an individual appointed under subsection
389
(b) may obtain judicial review of final agency action to
deny a claim of actual, necessary expenses under this sub-
section by commencing an action in the United States dis-
trict court in the district where the individual resides. The
decision of the agency shall be affirmed by the district
court unless it is unreasonable and without cause based
upon the administrative record before the agency.
‘‘(4) The Attorney General shall prescribe procedures
to implement this subsection.’’.
SEC. 1233. BANKRUPTCY FORMS.
Section 2075 of title 28, United States Code, is
amended by adding at the end the following:
‘‘The bankruptcy rules promulgated under this section
shall prescribe a form for the statement required under
section 707(b)(2)(C) of title 11 and may provide general
rules on the content of such statement.’’.
SEC. 1234. EXPEDITED APPEALS OF BANKRUPTCY CASES
TO COURTS OF APPEALS.
(a) IN GENERAL.—Section 158 of title 28, United
States Code, is amended—
(1) by striking subsection (d) and inserting the
following:
‘‘(d)(1) In a case in which the appeal is heard by the
district court, the judgment, decision, order, or decree of
the bankruptcy judge shall be deemed a judgment, deci-
390
sion, order, or decree of the district court entered 31 days
after such appeal is filed with the district court, unless
not later than 30 days after such appeal is filed with the
district court—
‘‘(A) the district court—
‘‘(i) files a decision on the appeal from the
judgment, decision, order, or decree of the
bankruptcy judge; or
‘‘(ii) enters an order extending such 30-day
period for cause upon motion of a party or
upon the court’s own motion; or
‘‘(B) all parties to the appeal file written con-
sent that the district court may retain such appeal
until it enters a decision.
‘‘(2) For the purpose of this subsection, an appeal
shall be considered filed with the district court on the date
on which the notice of appeal is filed, except that in a
case in which the appeal is heard by the district court be-
cause a party has made an election under subsection
(c)(1)(B), the appeal shall be considered filed with the dis-
trict court on the date on which such election is made.
‘‘(e) The courts of appeals shall have jurisdiction of
appeals from—
391
‘‘(1) all final judgments, decisions, orders, and
decrees of district courts entered under subsection
(a);
‘‘(2) all final judgments, decisions, orders, and
decrees of bankruptcy appellate panels entered under
subsection (b); and
‘‘(3) all judgments, decisions, orders, and de-
crees of district courts entered under subsection (d)
to the extent that such judgments, decisions, orders,
and decrees would be reviewable by a district court
under subsection (a).
‘‘(f) In accordance with rules prescribed by the Su-
preme Court of the United States under sections 2072
through 2077, the court of appeals may, in its discretion,
exercise jurisdiction over an appeal from an interlocutory
judgment, decision, order, or decree under subsection
(e)(3).’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 305(c) of title 11, United States
Code, is amended by striking ‘‘section 158(d)’’ and
inserting ‘‘subsection (e) or (f) of section 158’’.
(2) Section 1334(d) of title 28, United States
Code, is amended by striking ‘‘section 158(d)’’ and
inserting ‘‘subsection (e) or (f) of section 158’’.
392
(3) Section 1452(b) of title 28, United States
Code, is amended by striking ‘‘section 158(d)’’ and
inserting ‘‘subsection (e) or (f) of section 158’’.
SEC. 1235. EXEMPTIONS.
Section 522(g)(2) of title 11, United States Code, is
amended by striking ‘‘subsection (f)(2)’’ and inserting
‘‘subsection (f)(1)(B)’’.
TITLE XIII—CONSUMER CREDIT
DISCLOSURE
SEC. 1301. ENHANCED DISCLOSURES UNDER AN OPEN END
CREDIT PLAN.
(a) MINIMUM
PAYMENT
DISCLOSURES.—Section
127(b) of the Truth in Lending Act (15 U.S.C. 1637(b))
is amended by adding at the end the following:
‘‘(11)(A) In the case of an open end credit plan
that requires a minimum monthly payment of not
more than 4 percent of the balance on which finance
charges are accruing, the following statement, lo-
cated on the front of the billing statement, disclosed
clearly and conspicuously: ‘Minimum Payment
Warning: Making only the minimum payment will
increase the interest you pay and the time it takes
to repay your balance. For example, making only the
typical 2% minimum monthly payment on a balance
of $1,000 at an interest rate of 17% would take 88
393
months to repay the balance in full. For an estimate
of the time it would take to repay your balance,
making only minimum payments, call this toll-free
number: llllll.’ (the blank space to be
filled in by the creditor).
‘‘(B) In the case of an open end credit plan
that requires a minimum monthly payment of more
than 4 percent of the balance on which finance
charges are accruing, the following statement, in a
prominent location on the front of the billing state-
ment, disclosed clearly and conspicuously: ‘Minimum
Payment Warning: Making only the required min-
imum payment will increase the interest you pay and
the time it takes to repay your balance. Making a
typical 5% minimum monthly payment on a balance
of $300 at an interest rate of 17% would take 24
months to repay the balance in full. For an estimate
of the time it would take to repay your balance,
making only minimum monthly payments, call this
toll-free number: llllll.’ (the blank space to
be filled in by the creditor).
‘‘(C) Notwithstanding subparagraphs (A) and
(B), in the case of a creditor with respect to which
compliance with this title is enforced by the Federal
Trade Commission, the following statement, in a
394
prominent location on the front of the billing state-
ment, disclosed clearly and conspicuously: ‘Minimum
Payment Warning: Making only the required min-
imum payment will increase the interest you pay and
the time it takes to repay your balance. For exam-
ple, making only the typical 5% minimum monthly
payment on a balance of $300 at an interest rate of
17% would take 24 months to repay the balance in
full. For an estimate of the time it would take to
repay your balance, making only minimum monthly
payments, call the Federal Trade Commission at
this toll-free number: llllll.’ (the blank
space to be filled in by the creditor). A creditor who
is subject to this subparagraph shall not be subject
to subparagraph (A) or (B).
‘‘(D) Notwithstanding subparagraph (A), (B),
or (C), in complying with any such subparagraph, a
creditor may substitute an example based on an in-
terest rate that is greater than 17 percent. Any
creditor that is subject to subparagraph (B) may
elect to provide the disclosure required under sub-
paragraph (A) in lieu of the disclosure required
under subparagraph (B).
395
‘‘(E) The Board shall, by rule, periodically re-
calculate, as necessary, the interest rate and repay-
ment period under subparagraphs (A), (B), and (C).
‘‘(F)(i) The toll-free telephone number disclosed
by a creditor or the Federal Trade Commission
under subparagraph (A), (B), or (G), as appro-
priate, may be a toll-free telephone number estab-
lished and maintained by the creditor or the Federal
Trade Commission, as appropriate, or may be a toll-
free telephone number established and maintained
by a third party for use by the creditor or multiple
creditors or the Federal Trade Commission, as ap-
propriate. The toll-free telephone number may con-
nect consumers to an automated device through
which consumers may obtain information described
in subparagraph (A), (B), or (C), by inputting infor-
mation using a touch-tone telephone or similar de-
vice, if consumers whose telephones are not equipped
to use such automated device are provided the op-
portunity to be connected to an individual from
whom the information described in subparagraph
(A), (B), or (C), as applicable, may be obtained. A
person that receives a request for information de-
scribed in subparagraph (A), (B), or (C) from an
obligor through the toll-free telephone number dis-
396
closed under subparagraph (A), (B), or (C), as ap-
plicable, shall disclose in response to such request
only the information set forth in the table promul-
gated by the Board under subparagraph (H)(i).
‘‘(ii)(I) The Board shall establish and maintain
for a period not to exceed 24 months following the
effective date of the Bankruptcy Abuse Prevention
and Consumer Protection Act of 2001, a toll-free
telephone number, or provide a toll-free telephone
number established and maintained by a third party,
for use by creditors that are depository institutions
(as defined in section 3 of the Federal Deposit In-
surance Act), including a Federal credit union or
State credit union (as defined in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752)), with
total assets not exceeding $250,000,000. The toll-
free telephone number may connect consumers to an
automated device through which consumers may ob-
tain information described in subparagraph (A) or
(B), as applicable, by inputting information using a
touch-tone telephone or similar device, if consumers
whose telephones are not equipped to use such auto-
mated device are provided the opportunity to be con-
nected to an individual from whom the information
described in subparagraph (A) or (B), as applicable,
397
may be obtained. A person that receives a request
for information described in subparagraph (A) or
(B) from an obligor through the toll-free telephone
number disclosed under subparagraph (A) or (B), as
applicable, shall disclose in response to such request
only the information set forth in the table promul-
gated by the Board under subparagraph (H)(i). The
dollar amount contained in this subclause shall be
adjusted according to an indexing mechanism estab-
lished by the Board.
‘‘(II) Not later than 6 months prior to the expi-
ration of the 24-month period referenced in sub-
clause (I), the Board shall submit to the Committee
on Banking, Housing, and Urban Affairs of the Sen-
ate and the Committee on Banking and Financial
Services of the House of Representatives a report on
the program described in subclause (I).
‘‘(G) The Federal Trade Commission shall es-
tablish and maintain a toll-free number for the pur-
pose of providing to consumers the information re-
quired to be disclosed under subparagraph (C).
‘‘(H) The Board shall—
‘‘(i) establish a detailed table illustrating
the approximate number of months that it
would take to repay an outstanding balance if
398
a consumer pays only the required minimum
monthly payments and if no other advances are
made, which table shall clearly present stand-
ardized information to be used to disclose the
information required to be disclosed under sub-
paragraph (A), (B), or (C), as applicable;
‘‘(ii) establish the table required under
clause (i) by assuming—
‘‘(I) a significant number of different
annual percentage rates;
‘‘(II) a significant number of different
account balances;
‘‘(III) a significant number of dif-
ferent minimum payment amounts; and
‘‘(IV) that only minimum monthly
payments are made and no additional ex-
tensions of credit are obtained; and
‘‘(iii) promulgate regulations that provide
instructional guidance regarding the manner in
which the information contained in the table es-
tablished under clause (i) should be used in re-
sponding to the request of an obligor for any
information required to be disclosed under sub-
paragraph (A), (B), or (C).
399
‘‘(I) The disclosure requirements of this para-
graph do not apply to any charge card account, the
primary purpose of which is to require payment of
charges in full each month.
‘‘(J) A creditor that maintains a toll-free tele-
phone number for the purpose of providing cus-
tomers with the actual number of months that it will
take to repay the customer’s outstanding balance is
not subject to the requirements of subparagraph (A)
or (B).
‘‘(K) A creditor that maintains a toll-free tele-
phone number for the purpose of providing cus-
tomers with the actual number of months that it will
take to repay an outstanding balance shall include
the following statement on each billing statement:
‘Making only the minimum payment will increase
the interest you pay and the time it takes to repay
your balance. For more information, call this toll-
free number: llll.’ (the blank space to be filled
in by the creditor).’’.
(b) REGULATORY IMPLEMENTATION.—
(1) IN GENERAL.—The Board of Governors of
the Federal Reserve System (hereafter in this title
referred to as the ‘‘Board’’) shall promulgate regula-
tions implementing the requirements of section
400
127(b)(11) of the Truth in Lending Act, as added
by subsection (a) of this section.
(2) EFFECTIVE DATE.—Section 127(b)(11) of
the Truth in Lending Act, as added by subsection
(a) of this section, and the regulations issued under
paragraph (1) of this subsection shall not take effect
until the later of—
(A) 18 months after the date of enactment
of this Act; or
(B) 12 months after the publication of
such final regulations by the Board.
(c) STUDY OF FINANCIAL DISCLOSURES.—
(1) IN GENERAL.—The Board may conduct a
study to determine the types of information available
to potential borrowers from consumer credit lending
institutions regarding factors qualifying potential
borrowers for credit, repayment requirements, and
the consequences of default.
(2) FACTORS
FOR
CONSIDERATION.—In con-
ducting a study under paragraph (1), the Board
should, in consultation with the other Federal bank-
ing agencies (as defined in section 3 of the Federal
Deposit Insurance Act), the National Credit Union
Administration, and the Federal Trade Commission,
consider the extent to which—
401
(A) consumers, in establishing new credit
arrangements, are aware of their existing pay-
ment obligations, the need to consider those ob-
ligations in deciding to take on new credit, and
how taking on excessive credit can result in fi-
nancial difficulty;
(B) minimum periodic payment features
offered in connection with open end credit plans
impact consumer default rates;
(C) consumers make only the required
minimum payment under open end credit plans;
(D) consumers are aware that making only
required minimum payments will increase the
cost and repayment period of an open end cred-
it obligation; and
(E) the availability of low minimum pay-
ment options is a cause of consumers experi-
encing financial difficulty.
(3) REPORT TO CONGRESS.—Findings of the
Board in connection with any study conducted under
this subsection shall be submitted to Congress. Such
report shall also include recommendations for legis-
lative initiatives, if any, of the Board, based on its
findings.
402
SEC. 1302. ENHANCED DISCLOSURE FOR CREDIT EXTEN-
SIONS SECURED BY A DWELLING.
(a) OPEN END CREDIT EXTENSIONS.—
(1) 
CREDIT
APPLICATIONS.—Section
127A(a)(13) of the Truth in Lending Act (15
U.S.C. 1637a(a)(13)) is amended—
(A) by striking ‘‘CONSULTATION OF TAX
ADVISER.—A statement that the’’ and inserting
the following: ‘‘TAX DEDUCTIBILITY.—A state-
ment that—
‘‘(A) the’’; and
(B) by striking the period at the end and
inserting the following: ‘‘; and
‘‘(B) in any case in which the extension of
credit exceeds the fair market value (as defined
under the Internal Revenue Code of 1986) of
the dwelling, the interest on the portion of the
credit extension that is greater than the fair
market value of the dwelling is not tax deduct-
ible for Federal income tax purposes.’’.
(2) CREDIT ADVERTISEMENTS.—Section 147(b)
of the Truth in Lending Act (15
U.S.C. 1665b(b))
is amended—
(A) by striking ‘‘If any’’ and inserting the
following:
‘‘(1) IN GENERAL.—If any’’; and
403
(B) by adding at the end the following:
‘‘(2) CREDIT
IN
EXCESS
OF
FAIR
MARKET
VALUE.—Each advertisement described in subsection
(a) that relates to an extension of credit that may
exceed the fair market value of the dwelling, and
which advertisement is disseminated in paper form
to the public or through the Internet, as opposed to
by radio or television, shall include a clear and con-
spicuous statement that—
‘‘(A) the interest on the portion of the
credit extension that is greater than the fair
market value of the dwelling is not tax deduct-
ible for Federal income tax purposes; and
‘‘(B) the consumer should consult a tax
adviser for further information regarding the
deductibility of interest and charges.’’.
(b) NON-OPEN END CREDIT EXTENSIONS.—
(1) CREDIT APPLICATIONS.—Section 128 of the
Truth in Lending Act (15 U.S.C. 1638) is
amended—
(A) in subsection (a), by adding at the end
the following:
‘‘(15) In the case of a consumer credit trans-
action that is secured by the principal dwelling of
the consumer, in which the extension of credit may
404
exceed the fair market value of the dwelling, a clear
and conspicuous statement that—
‘‘(A) the interest on the portion of the
credit extension that is greater than the fair
market value of the dwelling is not tax deduct-
ible for Federal income tax purposes; and
‘‘(B) the consumer should consult a tax
adviser for further information regarding the
deductibility of interest and charges.’’; and
(B) in subsection (b), by adding at the end
the following:
‘‘(3) In the case of a credit transaction described in
paragraph (15) of subsection (a), disclosures required by
that paragraph shall be made to the consumer at the time
of application for such extension of credit.’’.
(2) CREDIT ADVERTISEMENTS.—Section 144 of
the Truth in Lending Act (15 U.S.C. 1664) is
amended by adding at the end the following:
‘‘(e) Each advertisement to which this section applies
that relates to a consumer credit transaction that is se-
cured by the principal dwelling of a consumer in which
the extension of credit may exceed the fair market value
of the dwelling, and which advertisement is disseminated
in paper form to the public or through the Internet, as
405
opposed to by radio or television, shall clearly and con-
spicuously state that—
‘‘(1) the interest on the portion of the credit ex-
tension that is greater than the fair market value of
the dwelling is not tax deductible for Federal income
tax purposes; and
‘‘(2) the consumer should consult a tax adviser
for further information regarding the deductibility of
interest and charges.’’.
(c) REGULATORY IMPLEMENTATION.—
(1) IN GENERAL.—The Board shall promulgate
regulations implementing the amendments made by
this section.
(2) 
EFFECTIVE
DATE.—Regulations 
issued
under paragraph (1) shall not take effect until the
later of—
(A) 12 months after the date of enactment
of this Act; or
(B) 12 months after the date of publica-
tion of such final regulations by the Board.
SEC. 1303. DISCLOSURES RELATED TO ‘‘INTRODUCTORY
RATES’’.
(a) INTRODUCTORY RATE DISCLOSURES.—Section
127(c) of the Truth in Lending Act (15 U.S.C. 1637(c))
is amended by adding at the end the following:
406
‘‘(6) ADDITIONAL NOTICE CONCERNING ‘INTRO-
DUCTORY RATES’.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), an application or solicitation
to open a credit card account and all pro-
motional materials accompanying such applica-
tion or solicitation for which a disclosure is re-
quired under paragraph (1), and that offers a
temporary annual percentage rate of interest,
shall—
‘‘(i) use the term ‘introductory’ in im-
mediate proximity to each listing of the
temporary annual percentage rate applica-
ble to such account, which term shall ap-
pear clearly and conspicuously;
‘‘(ii) if the annual percentage rate of
interest that will apply after the end of the
temporary rate period will be a fixed rate,
state in a clear and conspicuous manner in
a prominent location closely proximate to
the first listing of the temporary annual
percentage rate (other than a listing of the
temporary annual percentage rate in the
tabular 
format 
described 
in 
section
122(c)), the time period in which the intro-
407
ductory period will end and the annual
percentage rate that will apply after the
end of the introductory period; and
‘‘(iii) if the annual percentage rate
that will apply after the end of the tem-
porary rate period will vary in accordance
with an index, state in a clear and con-
spicuous manner in a prominent location
closely proximate to the first listing of the
temporary annual percentage rate (other
than a listing in the tabular format pre-
scribed by section 122(c)), the time period
in which the introductory period will end
and the rate that will apply after that,
based on an annual percentage rate that
was in effect within 60 days before the
date of mailing the application or solicita-
tion.
‘‘(B) EXCEPTION.—Clauses (ii) and (iii) of
subparagraph (A) do not apply with respect to
any listing of a temporary annual percentage
rate on an envelope or other enclosure in which
an application or solicitation to open a credit
card account is mailed.
408
‘‘(C) CONDITIONS
FOR
INTRODUCTORY
RATES.—An application or solicitation to open
a credit card account for which a disclosure is
required under paragraph (1), and that offers a
temporary annual percentage rate of interest
shall, if that rate of interest is revocable under
any circumstance or upon any event, clearly
and conspicuously disclose, in a prominent man-
ner on or with such application or solicitation—
‘‘(i) a general description of the cir-
cumstances that may result in the revoca-
tion of the temporary annual percentage
rate; and
‘‘(ii) if the annual percentage rate
that will apply upon the revocation of the
temporary annual percentage rate—
‘‘(I) will be a fixed rate, the an-
nual percentage rate that will apply
upon the revocation of the temporary
annual percentage rate; or
‘‘(II) will vary in accordance with
an index, the rate that will apply after
the temporary rate, based on an an-
nual percentage rate that was in ef-
409
fect within 60 days before the date of
mailing the application or solicitation.
‘‘(D) DEFINITIONS.—In this paragraph—
‘‘(i) the terms ‘temporary annual per-
centage rate of interest’ and ‘temporary
annual percentage rate’ mean any rate of
interest applicable to a credit card account
for an introductory period of less than 1
year, if that rate is less than an annual
percentage rate that was in effect within
60 days before the date of mailing the ap-
plication or solicitation; and
‘‘(ii) the term ‘introductory period’
means the maximum time period for which
the temporary annual percentage rate may
be applicable.
‘‘(E) RELATION
TO
OTHER
DISCLOSURE
REQUIREMENTS.—Nothing in this paragraph
may be construed to supersede subsection (a) of
section 122, or any disclosure required by para-
graph (1) or any other provision of this sub-
section.’’.
(b) REGULATORY IMPLEMENTATION.—
(1) IN GENERAL.—The Board shall promulgate
regulations implementing the requirements of section
410
127(c)(6) of the Truth in Lending Act, as added by
this section.
(2) EFFECTIVE
DATE.—Section 127(c)(6) of
the Truth in Lending Act, as added by this section,
and regulations issued under paragraph (1) of this
subsection shall not take effect until the later of—
(A) 12 months after the date of enactment
of this Act; or
(B) 12 months after the date of publica-
tion of such final regulations by the Board.
SEC. 1304. INTERNET-BASED CREDIT CARD SOLICITATIONS.
(a) INTERNET-BASED APPLICATIONS AND SOLICITA-
TIONS.—Section 127(c) of the Truth in Lending Act (15
U.S.C. 1637(c)) is amended by adding at the end the fol-
lowing:
‘‘(7) INTERNET-BASED APPLICATIONS AND SO-
LICITATIONS.—
‘‘(A) IN GENERAL.—In any solicitation to
open a credit card account for any person under
an open end consumer credit plan using the
Internet or other interactive computer service,
the person making the solicitation shall clearly
and conspicuously disclose—
411
‘‘(i) the information described in sub-
paragraphs (A) and (B) of paragraph (1);
and
‘‘(ii) the information described in
paragraph (6).
‘‘(B) FORM OF DISCLOSURE.—The disclo-
sures required by subparagraph (A) shall be—
‘‘(i) readily accessible to consumers in
close proximity to the solicitation to open
a credit card account; and
‘‘(ii) updated regularly to reflect the
current policies, terms, and fee amounts
applicable to the credit card account.
‘‘(C) DEFINITIONS.—For purposes of this
paragraph—
‘‘(i) the term ‘Internet’ means the
international computer network of both
Federal and non-Federal interoperable
packet switched data networks; and
‘‘(ii) the term ‘interactive computer
service’ means any information service,
system, or access software provider that
provides or enables computer access by
multiple users to a computer server, in-
cluding specifically a service or system that
412
provides access to the Internet and such
systems operated or services offered by li-
braries or educational institutions.’’.
(b) REGULATORY IMPLEMENTATION.—
(1) IN GENERAL.—The Board shall promulgate
regulations implementing the requirements of section
127(c)(7) of the Truth in Lending Act, as added by
this section.
(2) EFFECTIVE DATE.—The amendment made
by subsection (a) and the regulations issued under
paragraph (1) of this subsection shall not take effect
until the later of—
(A) 12 months after the date of enactment
of this Act; or
(B) 12 months after the date of publica-
tion of such final regulations by the Board.
SEC. 1305. DISCLOSURES RELATED TO LATE PAYMENT
DEADLINES AND PENALTIES.
(a) DISCLOSURES RELATED
TO LATE PAYMENT
DEADLINES
AND PENALTIES.—Section 127(b) of the
Truth in Lending Act (15 U.S.C. 1637(b)) is amended
by adding at the end the following:
‘‘(12) If a late payment fee is to be imposed
due to the failure of the obligor to make payment on
or before a required payment due date, the following
413
shall be stated clearly and conspicuously on the bill-
ing statement:
‘‘(A) The date on which that payment is
due or, if different, the earliest date on which
a late payment fee may be charged.
‘‘(B) The amount of the late payment fee
to be imposed if payment is made after such
date.’’.
(b) REGULATORY IMPLEMENTATION.—
(1) IN GENERAL.—The Board shall promulgate
regulations implementing the requirements of section
127(b)(12) of the Truth in Lending Act, as added
by this section.
(2) EFFECTIVE DATE.—The amendment made
by subsection (a) and regulations issued under para-
graph (1) of this subsection shall not take effect
until the later of—
(A) 12 months after the date of enactment
of this Act; or
(B) 12 months after the date of publica-
tion of such final regulations by the Board.
SEC. 1306. PROHIBITION ON CERTAIN ACTIONS FOR FAIL-
URE TO INCUR FINANCE CHARGES.
(a) PROHIBITION ON CERTAIN ACTIONS FOR FAIL-
URE TO INCUR FINANCE CHARGES.—Section 127 of the
414
Truth in Lending Act (15 U.S.C. 1637) is amended by
adding at the end the following:
‘‘(h) PROHIBITION ON CERTAIN ACTIONS FOR FAIL-
URE TO INCUR FINANCE CHARGES.—A creditor of an ac-
count under an open end consumer credit plan may not
terminate an account prior to its expiration date solely be-
cause the consumer has not incurred finance charges on
the account. Nothing in this subsection shall prohibit a
creditor from terminating an account for inactivity in 3
or more consecutive months.’’.
(b) REGULATORY IMPLEMENTATION.—
(1) IN GENERAL.—The Board shall promulgate
regulations implementing the requirements of section
127(h) of the Truth in Lending Act, as added by
this section.
(2) EFFECTIVE DATE.—The amendment made
by subsection (a) and regulations issued under para-
graph (1) of this subsection shall not take effect
until the later of—
(A) 12 months after the date of enactment
of this Act; or
(B) 12 months after the date of publica-
tion of such final regulations by the Board.
415
SEC. 1307. DUAL USE DEBIT CARD.
(a) REPORT.—The Board may conduct a study of,
and present to Congress a report containing its analysis
of, consumer protections under existing law to limit the
liability of consumers for unauthorized use of a debit card
or similar access device. Such report, if submitted, shall
include recommendations for legislative initiatives, if any,
of the Board, based on its findings.
(b) CONSIDERATIONS.—In preparing a report under
subsection (a), the Board may include—
(1) the extent to which section 909 of the Elec-
tronic Fund Transfer Act (15 U.S.C. 1693g), as in
effect at the time of the report, and the imple-
menting regulations promulgated by the Board to
carry out that section provide adequate unauthorized
use liability protection for consumers;
(2) the extent to which any voluntary industry
rules have enhanced or may enhance the level of pro-
tection afforded consumers in connection with such
unauthorized use liability; and
(3) whether amendments to the Electronic
Fund Transfer Act (15 U.S.C. 1693 et seq.), or re-
visions to regulations promulgated by the Board to
carry out that Act, are necessary to further address
adequate protection for consumers concerning unau-
thorized use liability.
416
SEC. 1308. STUDY OF BANKRUPTCY IMPACT OF CREDIT EX-
TENDED TO DEPENDENT STUDENTS.
(a) STUDY.—
(1) IN GENERAL.—The Board shall conduct a
study regarding the impact that the extension of
credit described in paragraph (2) has on the rate of
bankruptcy cases filed under title 11, United States
Code.
(2) EXTENSION OF CREDIT.—The extension of
credit described in this paragraph is the extension of
credit to individuals who are—
(A) claimed as dependents for purposes of
the Internal Revenue Code of 1986; and
(B) enrolled within 1 year of successfully
completing all required secondary education re-
quirements and on a full-time basis, in postsec-
ondary educational institutions.
(b) REPORT.—Not later than 1 year after the date
of enactment of this Act, the Board shall submit to the
Senate and the House of Representatives a report summa-
rizing the results of the study conducted under subsection
(a).
SEC. 1309. CLARIFICATION OF CLEAR AND CONSPICUOUS.
(a) REGULATIONS.—Not later than 6 months after
the date of enactment of this Act, the Board, in consulta-
tion with the other Federal banking agencies (as defined
417
in section 3 of the Federal Deposit Insurance Act), the
National Credit Union Administration Board, and the
Federal Trade Commission, shall promulgate regulations
to provide guidance regarding the meaning of the term
‘‘clear and conspicuous’’, as used in subparagraphs (A),
(B), and (C) of section 127(b)(11) and clauses (ii) and
(iii) of section 127(c)(6)(A) of the Truth in Lending Act.
(b) EXAMPLES.—Regulations promulgated under
subsection (a) shall include examples of clear and con-
spicuous model disclosures for the purposes of disclosures
required by the provisions of the Truth in Lending Act
referred to in subsection (a).
(c) STANDARDS.—In promulgating regulations under
this section, the Board shall ensure that the clear and con-
spicuous standard required for disclosures made under the
provisions of the Truth in Lending Act referred to in sub-
section (a) can be implemented in a manner which results
in disclosures which are reasonably understandable and
designed to call attention to the nature and significance
of the information in the notice.
SEC. 1310. ENFORCEMENT OF CERTAIN FOREIGN JUDG-
MENTS BARRED.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law or contract, a court within the United States
shall not recognize or enforce any judgment rendered in
418
a foreign court if, by clear and convincing evidence, the
court in which recognition or enforcement of the judgment
is sought determines that the judgment gives effect to any
purported right or interest derived, directly or indirectly,
from any fraudulent misrepresentation or fraudulent omis-
sion that occurred in the United States during the period
beginning on January 1, 1975, and ending on December
31, 1993.
(b) EXCEPTION.—Subsection (a) shall not prevent
recognition or enforcement of a judgment rendered in a
foreign court if the foreign tribunal rendering judgment
giving effect to the right or interest concerned determines
that no fraudulent misrepresentation or fraudulent omis-
sion described in subsection (a) occurred.
TITLE 
XIV—GENERAL 
EFFEC-
TIVE DATE; APPLICATION OF
AMENDMENTS
SEC. 1401. EFFECTIVE DATE; APPLICATION OF AMEND-
MENTS.
(a) EFFECTIVE DATE.—Except as otherwise provided
in this Act, this Act and the amendments made by this
Act shall take effect 180 days after the date of enactment
of this Act.
(b) APPLICATION OF AMENDMENTS.—Except as oth-
erwise provided in this Act, the amendments made by this