SEC. 10. AUTOMATIC STAY.
Section 362(b) of title 11, United States Code, is
amended—
(1) in paragraph (17) by striking ‘‘or’’ at the
end,
(2) in paragraph (18) by striking the period at
the end and inserting ‘‘; or’’, and
(3) by adding at the end the following:
‘‘(19) under subsection (a) of this section, of any
transfer that is not avoidable under section 544 and
not avoidable under section 549.’’.
SEC. 11. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.
Section 365 of title 11, United States Code, is amend-
ed—
(1) in subsection (b)(2)—
(A) in subparagraph (C) by striking ‘‘or’’
at the end, and
(B) by striking subparagraph (D) and in-
serting the following:
‘‘(D) the satisfaction of any penalty rate or
penalty provision relating to a default arising
from a failure to perform nonmonetary obliga-
tions under an executory contract or under an
unexpired lease of real or personal property;
‘‘(E) the satisfaction of any provision (other
than a penalty rate or penalty provision) relat-
ing to a default arising from any failure to per-
form 
nonmonetary 
obligations 
under 
an
unexpired lease of real property, if it is impos-
sible for the trustee to cure such default by per-
forming nonmonetary acts at and after the time
of assumption; or
‘‘(F) the satisfaction of any provision (other
than a penalty rate or penalty provision) relat-
ing to a default arising from any failure to per-
form nonmonetary obligations under an execu-
tory contract, if it is impossible for the trustee
to cure such default by performing nonmonetary
acts at and after the time of assumption and if
the court determines, based on the equities of the
case, that paragraph (1) should not apply with
respect to such default.’’,
(2) in subsection (c)—
(A) in paragraph (2) by adding ‘‘or’’ at the
end,
(B) in paragraph (3) by striking ‘‘; or’’ at
the end and inserting a period, and
(C) by striking paragraph (4),
(3) in subsection (d)—
(A) by striking paragraphs (5) through (9),
and
(B) by redesignating paragraph (10) as
paragraph (5).
(4) in subsection (f)(1) by striking ‘‘; except
that’’ and all that follows through the end of the para-
graph and inserting a period.
SEC. 12. AMENDMENT TO TABLE OF SECTIONS.
The table of sections for chapter 5 of title 11, United
States Code, is amended by striking the item relating to
section 556 and inserting the following:
‘‘556. Contractual right to liquidate a commodities contract or forward contract.’’.
SEC. 13. ALLOWANCE OF ADMINISTRATIVE EXPENSES.
Section 503(b)(4) of title 11, United States Code, is
amended by inserting ‘‘subparagraph (A), (B), (C), (D), or
(E) of ’’ before ‘‘paragraph (3)’’.
SEC. 14. PRIORITIES.
Section 507(a) of title 11, United States Code, is
amended—
(1) in paragraph (3)(B) by striking the semi-
colon at the end and inserting a period, and
(2) in paragraph (7) by inserting ‘‘unsecured’’
after ‘‘allowed’’.
SEC. 15. EXEMPTIONS.
Section 522 of title 11, United States Code, is amend-
ed—
(1) in subsection (f)(1)(A)(ii)(II)—
(A) by striking ‘‘includes a liability des-
ignated as’’ and inserting ‘‘is for a liability that
is designated as, and is actually in the nature
of,’’, and
(B) by striking ‘‘, unless’’ and all that fol-
lows through ‘‘support.’’, and
(2) in subsection (g)(2) by striking ‘‘subsection
(f)(2)’’ and inserting ‘‘subsection (f)(1)(B)’’.
SEC. 16. EXCEPTIONS TO DISCHARGE.
Section 523 of title 11, United States Code, is amend-
ed—
(1) in subsection (a)(3) by striking ‘‘or (6)’’ each
place it appears and inserting ‘‘(6), or (15)’’,
(2) as amended by section 304(e) of Public Law
103–394 (108 Stat. 4133), in paragraph (15) by
transferring such paragraph so as to insert it after
paragraph (14) of subsection (a),
(3) in paragraph (9) by inserting ‘‘, watercraft,
or aircraft’’ after ‘‘motor vehicle’’,
(4) in subsection (a)(15), as so redesignated by
operation of paragraph (2), by inserting ‘‘to a spouse,
former spouse, or child of the debtor and’’ after
‘‘(15)’’,
(5) in subsection (a)(17)—
(A) by striking ‘‘by a court’’ and inserting
‘‘on a prisoner by any court’’,
(B) by striking ‘‘section 1915 (b) or (f)’’
and inserting ‘‘subsection (b) or (f)(2) of section
1915’’, and
(C) by inserting ‘‘(or a similar non-Federal
law)’’ after ‘‘title 28’’ each place it appears, and
(6) in subsection (e) by striking ‘‘a insured’’ and
inserting ‘‘an insured’’.
SEC. 17. EFFECT OF DISCHARGE.
Section 524(a)(3) of title 11, United States Code, is
amended by striking ‘‘section 523’’ and all that follows
through ‘‘or that’’, and inserting ‘‘section 523, 1228(a)(1),
or 1328(a)(1) of this title, or that’’.
SEC. 18. PROTECTION AGAINST DISCRIMINATORY TREAT-
MENT.
Section 525(c) of title 11, United States Code, is
amended—
(1) in paragraph (1) by inserting ‘‘student’’ be-
fore ‘‘grant’’ the second place it appears, and
(2) in paragraph (2) by striking ‘‘the program
operated under part B, D, or E of’’ and inserting
‘‘any program operated under’’.
SEC. 19. PROPERTY OF THE ESTATE.
Section 541(b)(4)(B)(ii) of title 11, United States Code
is amended by inserting ‘‘365 or’’ before ‘‘542’’.
SEC. 20. LIMITATIONS ON AVOIDING POWERS.
Section 546 of title 11, United States Code, is amended
by redesignating the second subsection (g) as subsection (h).
SEC. 21. PREFERENCES.
Section 547 of title 11, United States Code, is amend-
ed—
(1) in subsection (b) by striking ‘‘subsection (c)’’
and inserting ‘‘subsections (c) and (h)’’, and
(2) by adding at the end the following:
‘‘(h) If the trustee avoids under subsection (b) a secu-
rity interest given between 90 days and 1 year before the
date of the filing of the petition, by the debtor to an entity
that is not an insider for the benefit of a creditor that is
an insider, then such security interest shall be considered
to be avoided under this section only with respect to the
creditor that is an insider.’’.
SEC. 22. POSTPETITION TRANSACTIONS.
Section 549(c) of title 11, United States Code, is
amended—
(1) by inserting ‘‘an interest in’’ after ‘‘transfer
of’’,
(2) by striking ‘‘such property’’ and inserting
‘‘such real property’’, and
(3) by striking ‘‘the interest’’ and inserting
‘‘such interest’’.
SEC. 23. SETOFF.
Section 553(b)(1) of title 11, United States Code, is
amended 
by 
striking 
‘‘362(b)(14)’’ 
and 
inserting
‘‘362(b)(17)’’.
SEC. 24. DISPOSITION OF PROPERTY OF THE ESTATE.
Section 726(b) of title 11, United States Code, is
amended by striking ‘‘1009,’’.
SEC. 25. GENERAL PROVISIONS.
Section 901(a) of title 11, United States Code, is
amended by inserting ‘‘1123(d),’’ after ‘‘1123(b),’’.
SEC. 26. APPOINTMENT OF ELECTED TRUSTEE.
Section 1104(b) of title 11, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’, and
(2) by adding at the end the following new para-
graph:
‘‘(2)(A) If an eligible, disinterested trustee is elected
at a meeting of creditors under paragraph (1), the United
States trustee shall file a report certifying that election.
Upon the filing of a report under the preceding sentence—
‘‘(i) the trustee elected under paragraph (1) shall
be considered to have been selected and appointed for
purposes of this section, and
‘‘(ii) the service of any trustee appointed under
subsection (d) shall terminate.
‘‘(B) In the case of any dispute arising out of an elec-
tion under subparagraph (A), the court shall resolve the dis-
pute.’’.
SEC. 27. 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. 28. 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. 29. DISCHARGE.
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. 30. CONTENTS OF PLAN.
Section 1322 of title 11, United States Code, is amend-
ed—
(1) in subsection (b) by striking ‘‘(c)’’ and in-
serting ‘‘(d)’’, and
(2) in subsection (e) by striking ‘‘default, shall’’
and inserting ‘‘default shall’’.