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(3) EXEMPTION FROM EXAMINATION FEE PRO-
VISIONS.—Section 9 of the Home Owners’ Loan Act
(12 U.S.C. 1467) is amended by adding at the end
the following new subsection:
‘‘(n) EXEMPTION FOR GUARANTEED SAVINGS ASSO-
CIATIONS.—This section and the authority of the Director
under this section shall not apply with respect to any guar-
anteed savings association.’’.
(c) EXCEPTIONS TO LIMITATIONS ON DEPOSIT AND
RELATED POWERS.—Section 5(b)(1) of the Home Own-
ers’ Loan Act (12 U.S.C. 1464(b)(1)) is amended by add-
ing at the end the following new subparagraph:
‘‘(G) SPECIAL
RULES
APPLICABLE
TO
GUARANTEED SAVINGS ASSOCIATIONS.—
‘‘(i) 
STATUTORY
AUTHORITY.—A
guaranteed Federal savings association
shall have the powers described in subpara-
graphs (C), (E), and (F) without regard to
the condition or limitation contained in
each such subparagraph relating to regula-
tions of the Director.
‘‘(ii) LIMITATION
ON
REGULATORY
AUTHORITY.—The exercise by a guaran-
teed Federal savings association of powers
established under subparagraph (A) or (D)
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or the last sentence of subparagraph (B)
shall not be subject to any regulations pre-
scribed by the Director under such provi-
sion.
‘‘(iii) 
EXEMPTION.—A 
guaranteed
Federal savings association shall not be
subject to the 1st sentence of subpara-
graph (B).’’.
(d) EXCEPTIONS TO LIMITATIONS ON LOAN AND IN-
VESTMENT POWERS.—Section 5(c) of the Home Owners’
Loan Act (12 U.S.C. 1464(c)) is amended by adding at
the end the following new paragraph:
‘‘(7) EXCEPTIONS FOR GUARANTEED SAVINGS
ASSOCIATIONS.—
‘‘(A) LIMITATION
ON
REGULATORY
AU-
THORITY.—The exercise by a guaranteed Fed-
eral savings association of powers established
under any provision of this subsection shall not
be subject to any regulations prescribed by the
Director under this subsection.
‘‘(B) 
EXEMPTION
FROM
MAXIMUM
AMOUNT LIMITATIONS.—A guaranteed Federal
savings association shall not be subject to any
limitation in this subsection on the outstanding
amount of loans or investments by the associa-
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tion under any provision of this subsection,
without regard to whether such maximum
amount is expressed as a fixed dollar amount or
as a percentage of such association’s assets or
capital.’’.
(e) 
EXEMPTION
FROM
ENFORCEMENT
AND
CONSERVATORSHIP
AND RECEIVERSHIP PROVISIONS.—
Section 5(d) of the Home Owners’ Loans Act (12 U.S.C.
1464(d)) is amended by adding at the end the following
new paragraph:
‘‘(7) EXEMPTION
FOR
GUARANTEED
SAVINGS
ASSOCIATIONS.—This subsection and the authority
of the Director under this subsection shall not apply
with respect to any guaranteed savings association.’’.
(f) EXEMPTION FROM FITNESS STANDARDS.—Sec-
tion 5(e) of the Home Owners’ Loan Act (12 U.S.C.
1464(e)) is amended by adding at the end the following
new sentence: ‘‘The preceding sentence shall not apply
with respect to any savings association which, at the time
the charter is granted, is a guaranteed depository institu-
tion (as defined in section 101(a)(7) of the Deposit Insur-
ance Reform, Regulatory Modernization, and Taxpayer
Protection Act of 1993) or is required to be a guaranteed
depository institution before such association accepts any
deposit.’’.
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(g) EXEMPTION FROM REQUIREMENTS RELATING
TO SECURITY FOR DEPOSITS OF GOVERNMENT AGEN-
CIES.—Section 5(k) of the Home Owners’ Loan Act (12
U.S.C. 1464(k)) is amended by adding at the end the fol-
lowing new sentence: ‘‘A guaranteed savings association
shall not be required to give any security for deposits with
the savings association under this section or for the per-
formance of the association as fiscal agent.’’.
(h) EXEMPTION FROM MINIMUM CAPITAL REQUIRE-
MENTS.—Section 5(s) of the Home Owners’ Loan Act (12
U.S.C. 1464(s)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(6) EXEMPTION
FOR
GUARANTEED
SAVINGS
ASSOCIATIONS.—This subsection and the authority
of the Director under this subsection shall not apply
with respect to any guaranteed savings association.’’.
(i) EXEMPTION FROM CAPITAL STANDARDS.—Sec-
tion 5(t)(1) of the Home Owners’ Loan Act (12 U.S.C.
1464(t)(1)) is amended by adding at the end the following
new subparagraph:
‘‘(E) EXEMPTION FOR GUARANTEED SAV-
INGS ASSOCIATIONS.—This subsection and the
authority of the Director under this subsection
shall not apply with respect to any guaranteed
savings association.’’.
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(j) EXEMPTION FROM REQUIREMENT RELATING TO
LOANS TO 1 BORROWER.—Section 5(u) of the Home
Owners’ Loan Act (12 U.S.C. 1464(u)) is amended by
adding at the end the following new paragraph:
‘‘(4) EXEMPTION
FOR
GUARANTEED
SAVINGS
ASSOCIATIONS.—This subsection shall not apply with
respect to any guaranteed savings association.’’.
(k) EXEMPTION FROM REQUIREMENT RELATING TO
REPORTS
OF CONDITION.—Section 5(v) of the Home
Owners’ Loan Act (12 U.S.C. 1464(v)) is amended by
adding at the end the following new paragraph:
‘‘(9) EXEMPTION
FOR
GUARANTEED
SAVINGS
ASSOCIATIONS.—This subsection shall not apply with
respect to any guaranteed savings association.’’.
(l) EXEMPTION FROM REQUIREMENT RELATING TO
LIQUID ASSETS.—Section 6 of the Home Owners’ Loan
Act (12 U.S.C. 1465) is amended by adding at the end
the following new subsection:
‘‘(g) EXEMPTION FOR GUARANTEED SAVINGS ASSO-
CIATIONS.—This section shall not apply with respect to
any guaranteed savings associations.’’.
(m) EXEMPTION FROM AFFILIATE TRANSACTION
AND LENDING LIMITS RELATING TO DIRECTORS AND OF-
FICERS.—Section 11 of the Home Owners’ Loan Act (12
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(f) NONAPPLICABILITY OF QUALIFIED STOCK ISSU-
ANCE PROVISIONS.—Section 10(q)(1)(A) of the Home
Owners’ Loan Act (12 U.S.C. 1467a(q)(1)(A)) is amend-
ed—
(1) in clause (i), by inserting ‘‘which is not a
guaranteed 
savings 
association’’ 
after
‘‘undercapitalized savings association’’; and
(2) in clause (ii), by inserting ‘‘and does not
control a guaranteed savings association’’ after
‘‘controls an undercapitalized savings association’’.
SEC. 205. AMENDMENTS RELATING TO THE FEDERAL DE-
POSIT INSURANCE CORPORATION.
(a) AMENDMENTS TO DEFINITIONS.—
(1) DEFINITIONS
RELATING
TO
DEPOSITORY
INSTITUTIONS.—Section 3(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(c)) is amended by
adding at the end the following new paragraphs:
‘‘(6) GUARANTEED
DEPOSITORY
INSTITUTION
NOT
INCLUDED.—Except as otherwise specifically
provided in any provision of this Act, the terms ‘de-
pository institution’ and ‘insured depository institu-
tion’ do not include any guaranteed depository insti-
tution.
‘‘(7) 
GUARANTEED
DEPOSITORY
INSTITU-
TION.—The term ‘guaranteed depository institution’
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has the meaning given to such term in section
101(a)(7) of the Deposit Insurance Reform, Regu-
latory Modernization, and Taxpayer Protection Act
of 1993.’’.
(2) DEFINITION RELATING TO BANKS.—Section
3(a) of the Federal Deposit Insurance Act (12
U.S.C. 1813(a)) is amended by adding at the end
the following new paragraph:
‘‘(5) GUARANTEED DEPOSITORY INSTITUTIONS
NOT
INCLUDED.—Except as otherwise specifically
provided in any provision of this Act, the terms
‘bank’, ‘national bank’, ‘State bank’, ‘District bank’,
‘branch’, and ‘Federal branch’, whether or not any
such term appears in conjunction with the term ‘in-
sured’, ‘member’, or ‘nonmember’, do not include
any guaranteed depository institution.’’.
(3) DEFINITION RELATING TO SAVINGS ASSO-
CIATIONS.—Section 3(b) of the Federal Deposit In-
surance Act (12 U.S.C. 1813(b)) is amended by
adding at the end the following new paragraph:
‘‘(4) GUARANTEED DEPOSITORY INSTITUTIONS
NOT
INCLUDED.—Except as otherwise specifically
provided in any provision of this Act, the terms ‘sav-
ings association’, ‘Federal savings association’, and
‘State savings association’, whether or not any such
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term appears in conjunction with the term ‘insured’,
do not include any guaranteed depository institu-
tion.’’.
(4) DEFINITION
RELATING
TO
APPROPRIATE
FEDERAL
BANKING
AGENCY.—Section 3(q) of the
Federal Deposit Insurance Act (12 U.S.C. 1813(q))
is amended by adding before the last sentence the
following new paragraph:
‘‘(5) The Cross-Guarantee Regulation Corpora-
tion in the case of a guaranteed depository institu-
tion.’’.
(b) PROHIBITION ON NEW INSURED DEPOSITORY
INSTITUTIONS, BY CHARTER
OR CONVERSION, AFTER
EFFECTIVE DATE OF CROSS-GUARANTEE SYSTEM.—
(1) NO CONTINUATION OF INSURANCE IN CON-
NECTION
WITH
CONVERSIONS.—Section 4 of the
Federal Deposit Insurance Act (12 U.S.C. 1814) is
amended by adding at the end the following new
subsection:
‘‘(e) INAPPLICABILITY OF SUBSECTIONS (b), (c), AND
(d) AFTER EFFECTIVE DATE OF CROSS-GUARANTEE SYS-
TEM.—Subsections (b), (c), and (d) shall not apply as of
the effective date of the cross-guarantee system under sub-
section (a) of section 141 of the Deposit Insurance Re-
form, Regulatory Modernization, and Taxpayer Protection
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Act of 1993, as published by the Cross-Guarantee Regula-
tion Corporation in the Federal Register pursuant to sub-
section (c) of such section.’’.
(2) NO NEW INSURANCE UNDER THE FEDERAL
DEPOSIT INSURANCE ACT.—Section 5 of the Federal
Deposit Insurance Act (12 U.S.C. 1815) is amended
by adding at the end the following new subsection:
‘‘(f) PROHIBITION
ON APPROVAL
OF INSURANCE
AFTER EFFECTIVE DATE OF CROSS-GUARANTEE SYS-
TEM.—No application for insurance under this section
may be approved by the Corporation on or after the date
by which the Cross-Guarantee Regulation Corporation has
approved, under subsection (a) of section 141 of the De-
posit Insurance Reform, Regulatory Modernization, and
Taxpayer Protection Act of 1993, 250 cross-guarantee
contracts described in subsection (a)(2) of such section.’’.
(c) TERMINATION OF DEPOSIT INSURANCE OF GUAR-
ANTEED DEPOSITORY INSTITUTION.—Section 8(a) of the
Federal Deposit Insurance Act (12 U.S.C. 1818(a)) is
amended—
(1) by redesignating paragraph (10) as para-
graph (11); and
(2) by inserting after paragraph (9), the follow-
ing new paragraph:
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‘‘(10) TERMINATION OF INSURANCE OF GUAR-
ANTEED DEPOSITORY INSTITUTION.—The status of
any insured depository institution as an insured de-
pository institution shall cease as of the date the in-
stitution becomes a guaranteed depository institu-
tion.’’.
(d) INELIGIBILITY
OF GUARANTEED DEPOSITORY
INSTITUTION
FOR DEPOSIT INSURANCE UNDER
THE
FEDERAL DEPOSIT INSURANCE ACT.—Section 5(a)(1) of
the Federal Deposit Insurance Act (12 U.S.C. 1815(a)(1))
is amended by striking ‘‘trust funds (as defined in section
3(p)),’’ and inserting ‘‘trust funds (as defined in section
3(p)) and is not a guaranteed depository institution.’’.
(e) APPLICABILITY
OF INSURANCE LOGO PROVI-
SIONS.—Section 18(a) of the Federal Deposit Insurance
Act (12 U.S.C. 1828(a)) is amended by adding at the end
the following new paragraph:
‘‘(4) APPLICABILITY TO GUARANTEED INSTITU-
TIONS.—For purposes of this subsection, the terms
‘insured bank’ and ‘insured savings association’ shall
be deemed to include any bank (as defined in section
3(a) without regard to paragraph (5) of such sec-
tion) and any savings association (as defined in sec-
tion 3(b) without regard to paragraph (4) of such
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section) which is a guaranteed depository institu-
tion.’’.
(f) GUARANTEED DEPOSITORY INSTITUTIONS NOT
EXEMPT FROM LIMITATION ON INSURANCE UNDERWRIT-
ING.—Section 24(b) of the Federal Deposit Insurance Act
(12 U.S.C. 1831a(b)) is amended by adding at the end
the following new paragraph:
‘‘(3) APPLICABILITY TO GUARANTEED DEPOSI-
TORY
INSTITUTIONS.—Notwithstanding 
section
3(a)(5), the term ‘insured State bank’ includes, for
purposes of this subsection, a State bank which is a
guaranteed depository institution.’’.
SEC. 206. AMENDMENTS TO OTHER BANKING LAWS.
(a) EXEMPTION FROM DEPOSITORY INSTITUTION
MANAGEMENT INTERLOCKS ACT.—Section 205 of the De-
pository Institution Management Interlocks Act (12
U.S.C. 3204) is amended by adding at the end the follow-
ing new paragraph:
‘‘(10) 
GUARANTEED
DEPOSITORY
INSTITU-
TION.—Any guaranteed depository institution and
any affiliate of such institution.’’.
(b) EXEMPTION FROM REAL ESTATE APPRAISAL
REQUIREMENTS.—Section 1121(4) of the Financial Insti-
tutions Reform, Recovery, and Enforcement Act of 1989
(12 U.S.C. 3350(4)) is amended to read as follows:
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‘‘(4) FEDERALLY
RELATED
TRANSACTION.—
The term ‘Federally related transaction’—
‘‘(A) means any real estate-related finan-
cial transaction which—
‘‘(i) a Federal financial institutions
regulatory agency or the Resolution Trust
Corporation engages in, contracts for, or
regulates; and
‘‘(ii) requires the services of an ap-
praiser; and
‘‘(B) does not include any real estate-relat-
ed financial transaction which is regulated by a
Federal financial institutions regulatory agency
solely by reason of the involvement of a guaran-
teed depository institution (as defined in section
101(a)(7) of the Deposit Insurance Reform,
Regulatory Modernization, and Taxpayer Pro-
tection Act of 1993) in such transaction.’’.
(c) EXEMPTION FROM PAYMENT SYSTEM REQUIRE-
MENTS.—Subtitle A of Title IV of the Federal Deposit
Insurance Corporation Improvement Act of 1991 (12
U.S.C. 4401 et seq.) is amended by adding at the end
the following new section:
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‘‘SEC. 408. EXEMPTION FROM GUARANTEED DEPOSITORY
INSTITUTIONS.
‘‘This subtitle shall not apply with respect to a depos-
itory institution which is a guaranteed depository institu-
tion (as defined in section 101(a)(7) of the Deposit Insur-
ance Reform, Regulatory Modernization, and Taxpayer
Protection Act of 1993).’’.
(d) EXEMPTION FROM THE INTERNATIONAL LEND-
ING SUPERVISION ACT OF 1983.—The last sentence of
section 903(2) of the International Lending Supervision
Act of 1983 (12 U.S.C. 3902(2)) is amended by inserting
‘‘or a guaranteed depository institution (as defined in sec-
tion 101(a)(7) of the Deposit Insurance Reform, Regu-
latory Modernization, and Taxpayer Protection Act of
1993)’’ before the period.
TITLE III—AMENDMENTS TO
TITLE 11, UNITED STATES CODE
Subtitle A—Amendments to
Chapter 1 of Title 11
SEC. 301. DEFINITIONS.
Section 101 of Title 11, United States Code, is
amended—
(a) by redesignating subsection (3) as sub-
section ‘‘(29)’’;
(b) by redesignating subsections (4)–(7) as sub-
sections ‘‘(3)’’–‘‘(6)’’;
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(c) by adding new subsection (7):
‘‘(7) ‘company’ means any corporation, partner-
ship, business trust, association, or similar organiza-
tion;’’;
(d) by adding new subsection (11):
‘‘(11) ‘cross-guarantee contract’ means a con-
tract which—
‘‘(A) is entered into between—
‘‘(i) one or more companies, at least
one of which is a depository institution;
and
‘‘(ii) a cross-guarantee syndicate; and
‘‘(B) is approved by the regulation cor-
poration under section 123 of title I of this
Act;’’;
(e) by adding new subsection (12):
‘‘(12) ‘cross-guarantee obligation’ means an ob-
ligation of a direct guarantor arising out of a cross-
guarantee or stop-loss contract, and shall include the
obligations of such direct guarantor under section
125(c)(2) of title I of this Act and sections 321 and
355 of this title;’’;
(f) by adding new subsection (13):
‘‘(13) 
‘cross-guarantee 
premium 
payment’
means the payment a guaranteed company periodi-
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cally makes to the guaranteed company’s direct
guarantors under the terms of a cross-guarantee
contract;’’;
(g) by adding new subsection (14):
‘‘(14) ‘cross-guarantee syndicate’ means any
group of direct guarantors which has entered into a
cross-guarantee contract with one or more guaran-
teed companies;’’;
(h) by redesignating subsections (11), (12) and
(13) as subsection ‘‘(15)’’, ‘‘(16)’’, and ‘‘(17)’’;
(i) by adding new subsection (18):
‘‘(18) ‘depository institution’ has the meaning
given to such term in section 3(c)(1) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(c)(1)), how-
ever, for the purposes of this title, depository institu-
tion shall not mean a Federal branch or an insured
branch as those terms are defined in Sections (3)(r)
and (3)(s) of the Federal Deposit Insurance Act (12
U.S.C. 1813(4) and (s));’’;
(j) by adding new subsection (19):
‘‘(19) ‘direct guarantor’ means a member of a
cross-guarantee or stop-loss syndicate which has en-
tered into a cross-guarantee or stop-loss contract
with a guaranteed party;’’;
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(k) by redesignating subsections (14)–(21A) as
subsections ‘‘(20)’’–‘‘(28)’’ and by redesignating
subsections (22)–(27) as subsections ‘‘(30)’’–‘‘(35)’’;
(l) by adding new subsection (36):
‘‘(36) ‘guaranteed company’ means any com-
pany which has entered into a cross-guarantee con-
tract with a cross-guarantee syndicate and has guar-
anteed obligations outstanding as of the date of the
filing of the petition;’’;
(m) by adding new subsection (37):
‘‘(37) ‘guaranteed creditor’ means any entity
who owns or is the beneficiary of a guaranteed obli-
gation;’’;
(n) by adding new subsection (38):
‘‘(38) ‘guaranteed obligation’ means an obliga-
tion of a guaranteed party on which a cross-guaran-
tee or stop-loss syndicate has guaranteed perform-
ance, including payment of principal and interest at
the promised time of payment, such that failure to
immediately perform in a timely manner constitutes
a breach of contract;’’;
(o) by adding new subsection (39):
‘‘(39) ‘guaranteed party’ means any guaranteed
company or nondepository guarantor;’’;
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(p) by redesignating subsections (28)–(35) as
subsections ‘‘(40)’’–‘‘(47)’’ and subsection (36)–(38)
as subsections ‘‘(49)’’–‘‘(51)’’;
(q) by adding new subsection (53):
‘‘(53) ‘monitoring fee payment’ means the peri-
odic payment made by a guaranteed party to a syn-
dicate agent under the terms of the guaranteed par-
ty’s cross-guarantee or stop-loss contract;’’;
(r) by adding new subsection (55):
‘‘(55) ‘nondepository guarantor’ means a guar-
anteed party under a stop-loss contract;’’;
(s) by redesignating subsection (39) as sub-
section ‘‘(68)’’;
(t) by redesignating subsection (40) as sub-
section ‘‘(54)’’;
(u) by redesignating subsections (41)–(44) as
subsections ‘‘(56)’’–‘‘(59)’’;
(v) by adding new subsection (60):
‘‘(60) ‘regulation corporation’ means the Cross-
Guarantee Regulation Corporation;’’;
(w) by redesignating subsections (45)–(51) as
subsections ‘‘(61)’’–‘‘(67)’’;
(x) by redesignating subsections (52) and (53)
as subsections ‘‘(69)’’ and ‘‘(70)’’; subsection (54)
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as subsection ‘‘(79)’’ and subsection (54) 1 as sub-
section ‘‘(71)’’;
(y) by adding new subsection (72):
‘‘(72) ‘stop-loss contract’ means a contract
which—
‘‘(A) is entered into between a person or a
company and a stop-loss syndicate; and
‘‘(B) is approved by the regulation cor-
poration under section 123 of title I of this
Act,’’;
(z) by adding new subsection (73):
‘‘(73) ‘stop-loss premium payment’ means the
payment a nondepository guarantor periodically
makes to direct guarantors under the nondepository
guarantor’s stop-loss contract;’’;
(aa) by adding new subsection (74):
‘‘(74) ‘stop-loss syndicate’ means any group of
direct guarantors which has entered into a stop-loss
contract with a nondepository guarantor;’’;
(bb) by adding new subsection (77):
‘‘(77) ‘syndicate agent’ means any person or
company who acts as the agent for the direct guar-
antors under any cross-guarantee or stop-loss con-
tract;’’; and
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(cc) by redesignating subsection (55) as sub-
section ‘‘(80)’’, subsection (55) 1
as subsection
‘‘(75)’’; subsection (56) as subsection ‘‘(48)’’, sub-
section (56) 1 as subsection ‘‘(76)’’ subsection (57)
as subsection ‘‘(52)’’, and subsection (57) 1 as sub-
section ‘‘(78)’’.
SEC. 302. APPLICABILITY OF CHAPTERS.
Section 103 of title 11, United States Code, is
amended—
(a) in subsection (a) by striking ‘‘section 1161’’
and adding ‘‘sections 1161 and 1181’’;
(b) by adding new subsection (h):
‘‘(h) Subchapter V of chapter 11 of this title applies
only in a case under such chapter in which a guaranteed
company is the debtor’’; and
(c) by redesignating subsection (h) and (i) to (i)
and (j).
SEC. 303. PUBLIC ACCESS TO PAPERS.
Section 107 of title 11, United States Code, is
amended—
(a) in subsection (a) by striking ‘‘subsection
(b)’’ and inserting ‘‘subsections (b) and (c)’’; and
(b) by adding new subsection (c):
‘‘(c) Notwithstanding subsection (a) of this section,
the identity of a guaranteed creditor and the amount of
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a guaranteed creditor’s claim in a case under subchapter
V of chapter 11 is not a matter of public record and shall
be kept confidential.’’.
SEC. 304. WHO MAY BE A DEBTOR.
Section 109 of title 11, United States Code, is
amended—
(a) in subsection (b)(2) by adding at the end
‘‘or a guaranteed company’’;
(b) in subsection (d) by striking ‘‘and a rail-
road’’ and inserting ‘‘a railroad, and a guaranteed
company’’; and
(c) by adding new subsection (h):
‘‘(h) a guaranteed company may only be a debt-
or under subchapter V of chapter 11.’’.
Subtitle B—Amendments to
Chapter 3 of Title 11
SEC. 311. PARTY IN INTEREST.
Title 11, United States Code, is amended by adding
new section 308:
‘‘§ 308. Party in interest
‘‘(a) The regulation corporation shall be a party in
interest in any action seeking to impair or limit the obliga-
tions or duties of the debtor or of a direct guarantor under
a cross-guarantee or stop-loss contract.
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‘‘(b) A cross-guarantee or stop-loss syndicate shall be
a party in interest in any determination of whether a claim
is a guaranteed obligation under a cross-guarantee or
stop-loss contract.
‘‘(c) A cross-guarantee or stop-loss syndicate shall be
a party in interest for the purpose of filing objections to
the allowance of a claim or interest as provided under sec-
tion 502(a) of this title.’’.
SEC. 312. QUALIFICATION OF TRUSTEE.
Section 322 of title 11, United States Code, is
amended—
(a) in subsection (a) by inserting ‘‘1183,’’ after
‘‘1163,’’; and
(b) by adding new subparagraph (b)(3):
‘‘(3) In a case under subchapter V of chapter 11, the
United States trustee shall consult with the syndicate
agent monitoring the debtor as of the date of the filing
of the petition and shall consider any existing bonds cover-
ing the guaranteed company when determining the
amount of the bond required to be filed under subsection
(a) of this section.’’.
SEC. 313. NOTICE.
Section 342 of title 11, United States Code, is
amended by adding new subsection (c):
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‘‘(c) Notwithstanding subsection (a) of this section,
notice of the entry of an order for relief in a case under
subchapter V of Chapter 11 shall be given by publication
and shall be given in writing to the syndicate agent and
to all creditors having claims that are not guaranteed obli-
gations. Notice to the syndicate agent shall constitute no-
tice to all guaranteed creditors in the case.’’.
SEC. 314. AUTOMATIC STAY.
Section 362 of title 11, United States Code, is
amended by adding new subsection (b)(17):
‘‘(17) under subsection (a) of this section, of
the exercise of any right of a guaranteed creditor
under applicable nonbankruptcy law to collect, en-
force or recover a guaranteed obligation from the
debtor.’’.
SEC. 
315. 
EXECUTORY 
CONTRACTS 
AND 
UNEXPIRED
LEASES.
Section 365 of title 11, United States Code, is
amended—
(a) in subsection (a) by striking ‘‘and (d)’’ and
inserting ‘‘(d), and (q)’’;
(b) in subsection (e)(1), by substituting for the
existing language—‘‘Notwithstanding a provision in
an executory contract, guaranteed obligation, or
unexpired lease, or in applicable law, an executory
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contract, guaranteed obligation, or unexpired lease
of the debtor may not be terminated, modified, or
any liability thereunder accelerated, and any right,
obligation, or liability under such contract, guaran-
teed obligation, or lease may not be terminated,
modified, or accelerated, at any time after the com-
mencement of the case solely because of a provision
in such contract, guaranteed obligation, or lease that
is conditioned on—’’;
(c) in subparagraph (e)(2)(B), by striking
‘‘such contract is a’’ and inserting ‘‘such contract is
not a guaranteed obligation but is some other’’;
(d) by adding a new subsection (q):
‘‘(q) Notwithstanding subsection (c)(2) of this sec-
tion, the trustee shall be deemed to have assumed as of
the date of filing of the petition all cross-guarantee and
stop-loss contracts to which the debtor is a party. The
trustee shall immediately pay all cross-guarantee premium
payments, stop-loss premium payments, and monitoring
fee payments due under any cross-guarantee or stop-loss
contract so assumed. Any claim for a subsequent breach
of the obligations under such contracts shall be entitled
to priority under section 507(a)(1). The trustee shall not
reject any cross-guarantee or stop-loss contract’’; and
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(e) in subsection (f)(1) by inserting after ‘‘Ex-
cept as provided in subsection (c) of this section’’
the following to complete the clause, ‘‘and excluding
those executory contracts described in subsection
(q)’’.
Subtitle C—Amendments to
Chapter 5 of Title 11
SEC. 321. CLAIMS OF DIRECT GUARANTORS.
Title 11, United States Code, is amended by adding
a new section 511—
‘‘§ 511. Claims of direct guarantors
‘‘The direct guarantors of a debtor shall pay to the
trustee the amount by which losses accrued by the estate
as a direct guarantor since the date the petition was filed
exceed the cross-guarantee and stop-loss premiums the es-
tate has accrued since that date. Such payment shall be
received by the trustee on the effective date of a plan con-
firmed under section 1129 of this title or, in the case of
a liquidation under section 1186 of this title, at the time
of the transfer to an unrelated party or the termination
of all of the estate’s guaranteed obligations. The amount
paid by the direct guarantors in accordance with this sub-
section shall be subordinated to all other claims in the case
for the purpose of distribution under this title.’’.
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claim, in the absence of such transfer, would be guaran-
teed under a cross-guarantee or stop-loss contract’’; and
(c) by redesignating subsection (d) as sub-
section (e).
SEC. 328. CONTRACTUAL RIGHT TO LIQUIDATE A SECURI-
TIES CONTRACT.
Section 555 of title 11, United States Code, is
amended—
(a) by inserting ‘‘(a)’’ at the beginning of the
section; and
(b) by adding new subsection (b):
‘‘(b) Subsection (a) of this section shall not apply in
any case under subchapter V of chapter 11.’’.
SEC. 329. CONTRACTUAL RIGHT TO LIQUIDATE A COMMOD-
ITIES CONTRACT OR FORWARD CONTRACT.
Section 556 of title 11, United States Code, is
amended—
(a) by inserting ‘‘(a)’’ at the beginning of the
section; and
(b) by adding new subsection (b):
‘‘(b) Subsection (a) of this section shall not apply in
any case under subchapter V of chapter 11.’’.
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SEC. 330. CONTRACTUAL RIGHT TO LIQUIDATE A REPUR-
CHASE AGREEMENT.
Section 559 of title 11, United States Code, is
amended—
(a) by inserting ‘‘(a)’’ at the beginning of the
section; and
(b) by adding new subsection (b):
‘‘(b) Subsection (a) of this section shall not apply in
any case under subchapter V of chapter 11.’’.
SEC. 331. CONTRACTUAL RIGHT TO TERMINATE A SWAP
AGREEMENT.
Section 560 of title 11, United States Code, is
amended—
(a) by inserting ‘‘(a)’’ at the beginning of the
section; and
(b) by adding new subsection (b):
‘‘(b) Subsection (a) of this section shall not apply in
any case under subchapter V of chapter 11.’’.
Subtitle D—Amendments to
Chapter 11 of Title 11
CHAPTER 1—AMENDMENTS TO EXISTING
LAW
SEC. 341. CREDITORS’ AND EQUITY SECURITY HOLDERS’
COMMITTEES.
Section 1102 of title 11, United States Code, is
amended by subsection (a)(1) by inserting at the end ‘‘:
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Provided, however, That only creditors holding claims that
are not guaranteed obligations under a cross-guarantee or
stop-loss contract and are not direct guarantors may be
appointed to such committee in a case under subchapter
V of chapter 11’’.
SEC. 342. WHO MAY FILE A PLAN.
Section 1121 of title 11, United States Code, is
amended—
(a) by adding new subsection (d):
‘‘(d) Notwithstanding subsection (c) of this section,
a guaranteed creditor may not file a plan in a case under
subchapter V of chapter 11’’; and
(b) by redesignating subsection (d) as sub-
section (e).
SEC. 343. IMPAIRMENT OF CLAIMS OR INTERESTS.
Section 1124 of title 11, United States Code, is
amended—
(a) by inserting ‘‘(a)’’ at the beginning of the
section; and
(b) by adding new subsection (b):
‘‘(b) Notwithstanding subsection (a) of this section,
the claim of a guaranteed creditor is deemed to be
unimpaired in a case under subchapter V of chapter 11.’’.
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SEC. 344. ACCEPTANCE OF PLAN.
Section 1126 of title 11, United States Code, is
amended in subsection (a) by inserting at the end of the
first sentence‘‘: Provided, however, That a guaranteed
creditor is not entitled to accept or reject a plan in a case
under subchapter V of chapter 11’’.
SEC. 345. CONFIRMATION HEARING.
Section 1128 of title 11, United States Code, is
amended in subsection (b) by inserting after ‘‘A party in
interest’’ ‘‘, other than a guaranteed creditor in a case
under subchapter V of chapter 11,’’.
SEC. 346. CONFIRMATION OF PLAN.
Section 1129 of title 11, United States Code, is
amended—
(a) in subsection (a)(4), by inserting at the end
‘‘: Provided, however, That no such approval of any
payment by a cross-guarantee or stop-loss syndicate
is required when the cross-guarantee or stop-loss
syndicate is the proponent of the plan and the pay-
ment is made pursuant to a cross-guarantee or stop-
loss contract’’; and
(b) by adding new subsection (e):
‘‘(e) Notwithstanding subsections (a) and (b) of this
section, the court may confirm a plan that otherwise meets
the requirements of subsection (a) and (b) of this section
even though, in a case under subchapter V of chapter 11,
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a guaranteed creditor receives or retains no property
under the plan.’’.
SEC. 347. EFFECT OF CONFIRMATION.
Section 1141 of title 11, United States Code, is
amended—
(a) in subsection (a) by striking ‘‘(d)(2) and
(d)(3)’’ and by inserting ‘‘(d)(2), (d)(3), and
(d)(4)’’;
(b) by inserting new subsection (d)(4):
‘‘(4) Except as provided in section 365(k) of this title,
the confirmation of a plan does not discharge a debtor
of its obligations and liabilities as a direct guarantor under
a cross-guarantee or stop-loss contract’’; and
(c) by redesignating subsection (d)(4) as (d)(5).
CHAPTER 2—ENACTMENT OF SUBCHAPTER V
SEC. 351. GUARANTEED COMPANY REORGANIZATION.
Title 11, United States Code, is amended by adding
a new subchapter V—
‘‘Subchapter V—Guaranteed Company
Reorganization’’.
SEC. 352. INAPPLICABILITY OF OTHER SECTIONS.
Title 11, United States Code, is amended by adding
new section 1181—
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‘‘§ 1181. Inapplicability of other sections
‘‘Sections 341, 343, 1104, 1105, and 1107 do not
apply in a case under subchapter V of Chapter 11.’’.
SEC. 353. EFFECTIVE DATE OF FILING.
Title 11, United States Code, is amended by adding
new section 1182—
‘‘§ 1182. Effective date of filing
‘‘The effective date and time of the filing of a petition
under this subchapter shall be the close of business on
the business day preceding the date on which the petition
is actually filed.’’.
SEC. 354. APPOINTMENT OF TRUSTEE.
Title 11, United States Code, is amended by adding
new section 1183:
‘‘§ 1183. Appointment of trustee
‘‘As soon as practicable after the entry to an order
for relief, the regulation corporation shall submit to the
United States Trustee a list of 5 disinterested persons who
are qualified and willing to serve as the trustee in the case.
The United States Trustee shall appoint one such person
to serve as the trustee in the case. The syndicate agent
monitoring the debtor as of the date of the filing of the
petition shall not be eligible to serve as the trustee. The
court, after notice and a hearing, may replace a trustee
for cause.’’.
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SEC. 355. LIABILITY OF DIRECT GUARANTORS FOR TRANS-
FERS TO GUARANTEED CREDITORS.
Title 11, United States Code, is amended by adding
new section 1184—
‘‘§ 1184. Liability of direct guarantors for transfers to
guaranteed creditors
‘‘The trustee may recover for the benefit of the estate
from the direct guarantors of the debtor the amount of
any transfers of property of the estate to or for the benefit
of guaranteed creditors that enable such creditors to re-
ceive more than such creditors would receive if the trustee
was engaged in a liquidation pursuant to section 1186 of
this chapter and such transfers had not been made.’’.
SEC. 356. EFFECTIVE OF FEDERAL LEGISLATION AND FED-
ERAL, STATE, AND LOCAL REGULATIONS.
Title 11, United States Code, is amended by adding
new section 1185:
‘‘§ 1185. Effect of Federal legislation and Federal,
State, and local regulations
‘‘Except with respect to merger, modification of the
financial structure of the debtor, or the issuance or sale
of securities under a plan, the trustee and the debtor are
subject to all Federal legislation and to all Federal, State,
and local regulations and orders to the same extent as the
debtor would be if a petition commencing the case under
this chapter had not been filed.’’.
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SEC. 357. LIQUIDATION.
Title 11, United States Code, is amended by adding
new section 1186:
‘‘§ 1186. Liquidation
‘‘On request of a party in interest and after notice
and a hearing, the court may order the trustee to cease
the debtor’s operation and to collect and reduce to money
all of the property of the estate in the same manner as
if the case were a case under chapter 7 of this title if
such liquidation is in the best interest of creditors.’’.
TITLE IV—AMENDMENT TO
TITLE 28, UNITED STATES CODE
SEC. 401. VENUE.
Title 28, United States Code, is amended by adding
new subsection 1409(f):
‘‘(f) A proceeding arising in or related to a case under
subchapter V of chapter 11 of title 11 regarding the debt-
or’s satisfaction of a guaranteed obligation, whether aris-
ing before or after the commencement of the case, may
be commenced in the district court for the district where
the state of Federal court sits in which the party com-
mencing such proceeding may, under applicable non-bank-
ruptcy venue provisions, have brought an action on such
claim, or in the district court in which such case is pend-
ing. The cross-guarantee syndicate which has entered into
a cross-guarantee contract in such a case shall be a party
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in interest in any proceeding commenced under this sub-
section.’’.
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