(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
amended—
(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 sec-
tion 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
amended—
(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 consid-
ered 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
paragraph:
‘‘(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—