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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. 
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
495
credit described in paragraph (2) has on the rate of 
cases filed under title 11 of the 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 
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),
496
(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.
TITLE XIV—PREVENTING COR-
PORATE BANKRUPTCY ABUSE 
SEC. 1401. EMPLOYEE WAGE AND BENEFIT PRIORITIES. 
Section 507(a) of title 11, United States Code, as 
amended by section 212, is amended—
(1) in paragraph (4) by striking ‘‘90’’ and in-
serting ‘‘180’’, and 
(2) in paragraphs (4) and (5) by striking 
‘‘$4,000’’ and inserting ‘‘$10,000’’.
497
SEC. 1402. FRAUDULENT TRANSFERS AND OBLIGATIONS. 
Section 548 of title 11, United States Code, is 
amended—
(1) in subsections (a) and (b) by striking ‘‘one 
year’’ and inserting ‘‘2 years’’, 
(2) in subsection (a)—
(A) by inserting ‘‘(including any transfer 
to or for the benefit of an insider under an em-
ployment contract)’’ after ‘‘transfer’’ the 1st 
place it appears, and 
(B) by inserting ‘‘(including any obligation 
to or for the benefit of an insider under an em-
ployment contract)’’ after ‘‘obligation’’ the 1st 
place it appears, and 
(3) in subsection (a)(1)(B)(ii)— 
(A) in subclause (II) by striking ‘‘or’’ at 
the end, 
(B) in subclause (III) by striking the pe-
riod at the end and inserting ‘‘; or’’, and 
(C) by adding at the end the following: 
‘‘(IV) made such transfer to or for the benefit 
of an insider, or incurred such obligation to or for 
the benefit of an insider, under an employment con-
tract and not in the ordinary course of business.’’.
498
SEC. 1403. PAYMENT OF INSURANCE BENEFITS TO RETIRED 
EMPLOYEES. 
Section 1114 of title 11, United States Code, is 
amended—
(1) by redesignating subsection (l) as subsection 
(m), and 
(2) by inserting after subsection (k) the fol-
lowing: 
‘‘(l) If the debtor, during the 180-day period ending 
on the date of the filing of the petition—
‘‘(1) modified retiree benefits; and 
‘‘(2) was insolvent on the date such benefits 
were modified; 
the court, on motion of a party in interest, and after notice 
and a hearing, shall issue an order reinstating as of the 
date the modification was made, such benefits as in effect 
immediately before such date unless the court finds that 
the balance of the equities clearly favors such modifica-
tion.’’. 
SEC. 1404. EFFECTIVE DATE; APPLICATION OF AMEND-
MENTS. 
(a) EFFECTIVE DATE.—Except as provided in sub-
section (b), this title and the amendments made by this 
title shall take effect on the date of the enactment of this 
Act. 
(b) APPLICATION OF AMENDMENTS.—