II
103D CONGRESS
2D SESSION
H.R. 5116
IN THE SENATE OF THE UNITED STATES
OCTOBER 6 (legislative day, SEPTEMBER 12), 1994
Received
AN ACT
To amend title 11 of the United States Code.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Bankruptcy Reform Act of 1994’’.
(b) TABLE OF CONTENTS.—The table of contents is
as follows:
Sec. 1. Short title.
TITLE I—IMPROVED BANKRUPTCY ADMINISTRATION
Sec. 101. Expedited hearing on automatic stay.
Sec. 102. Jurisdiction to review interlocutory orders increasing or reducing cer-
tain time periods for filing plan.
Sec. 103. Expedited procedure for reaffirmation of debts.
Sec. 104. Powers of bankruptcy courts.
Sec. 105. Participation by bankruptcy administrator at meetings of creditors
and equity security holders.
Sec. 106. Definition relating to eligibility to serve on chapter 11 committees.
Sec. 107. Increased incentive compensation for trustees.
Sec. 108. Dollar adjustments.
Sec. 109. Premerger notification.
Sec. 110. Allowance of creditor committee expenses.
Sec. 111. Supplemental injunctions.
Sec. 112. Authority of bankruptcy judges to conduct jury trials in civil proceed-
ings.
Sec. 113. Sovereign immunity.
Sec. 114. Service of process in bankruptcy proceedings on an insured depository
institution.
Sec. 115. Meetings of creditors and equity security holders.
Sec. 116. Tax assessment.
Sec. 117. Additional trustee compensation.
TITLE II—COMMERCIAL BANKRUPTCY ISSUES
Sec. 201. Aircraft equipment and vessels; rolling stock equipment.
Sec. 202. Limitation on liability of non-insider transferee for avoided transfer.
Sec. 203. Perfection of purchase-money security interest.
Sec. 204. Continued perfection.
Sec. 205. Rejection of unexpired leases of real property or timeshare interests.
Sec. 206. Contents of plan.
Sec. 207. Priority for independent sales representatives.
Sec. 208. Exclusion from the estate of interests in liquid and gaseous hydro-
carbons transferred by the debtor pursuant to production pay-
ment agreements.
Sec. 209. Seller’s right to reclaim goods.
Sec. 210. Investment of money of the estate.
Sec. 211. Election of trustee under chapter 11.
Sec. 212. Rights of partnership trustee against general partners.
Sec. 213. Impairment of claims and interests.
Sec. 214. Protection of security interest in post-petition rents and lodging pay-
ments.
Sec. 215. Amendment to definition of swap agreement.
Sec. 216. Limitation on avoiding powers.
Sec. 217. Small businesses.
Sec. 218. Single asset real estate.
Sec. 219. Leases of personal property.
Sec. 220. Exemption for small business investment companies.
Sec. 221. Payment of taxes with borrowed funds.
Sec. 222. Return of goods.
Sec. 223. Proceeds of money order agreements.
Sec. 224. Trustee duties; professional fees.
Sec. 225. Notices to creditors.
TITLE III—CONSUMER BANKRUPTCY ISSUES
Sec. 301. Period for curing default relating to principal residence.
Sec. 302. Nondischargeability of fine under chapter 13.
Sec. 303. Impairment of exemptions.
Sec. 304. Protection of child support and alimony.
Sec. 305. Interest on interest.
Sec. 306. Exception to discharge.
Sec. 307. Payments under chapter 13.
Sec. 308. Bankruptcy petition preparers.
Sec. 309. Fairness to condominium and cooperative owners.
Sec. 310. Nonavoidability of fixing of lien on tools and implements of trade,
animals, and crops.
Sec. 311. Conversion of case under chapter 13.
Sec. 312. Bankruptcy fraud.
Sec. 313. Protection against discriminatory treatment of applications for stu-
dent loans.
TITLE IV—GOVERNMENTAL BANKRUPTCY ISSUES
Sec. 401. Exception from automatic stay for post-petition property taxes.
Sec. 402. Municipal bankruptcy.
TITLE V—TECHNICAL CORRECTIONS
Sec. 501. Amendments to bankruptcy definitions, necessitated by enactment of
Public Law 101–647.
Sec. 502. Title 28 of the United States Code.
TITLE VI—BANKRUPTCY REVIEW COMMISSION
Sec. 601. Short title.
Sec. 602. Establishment.
Sec. 603. Duties of the commission.
Sec. 604. Membership.
Sec. 605. Compensation of the commission.
Sec. 606. Staff of commission; experts and consultants.
Sec. 607. Powers of the commission.
Sec. 608. Report.
Sec. 609. Termination.
Sec. 610. Authorization of appropriations.
TITLE VII—SEVERABILITY; EFFECTIVE DATE; APPLICATION OF
AMENDMENTS.
Sec. 701. Severability.
Sec. 702. Effective date; application of amendments.
TITLE I—IMPROVED
BANKRUPTCY ADMINISTRATION
SEC. 101. EXPEDITED HEARING ON AUTOMATIC STAY.
The last sentence of section 362(e) of title 11, United
States Code, is amended—
(1) by striking ‘‘commenced’’ and inserting
‘‘concluded’’, and
(2) by inserting before the period at the end the
following:
‘‘, unless the 30-day period is extended with the consent
of the parties in interest or for a specific time which the
court finds is required by compelling circumstances’’.
SEC. 102. JURISDICTION TO REVIEW INTERLOCUTORY OR-
DERS INCREASING OR REDUCING CERTAIN
TIME PERIODS FOR FILING PLAN.
Section 158(a) of title 28, United States Code, is
amended by striking ‘‘from’’ the first place it appears and
all that follows through ‘‘decrees,’’, and inserting the fol-
lowing:
‘‘(1) from final judgments, orders, and decrees;
‘‘(2) from interlocutory orders and decrees is-
sued under section 1121(d) of title 11 increasing or
reducing the time periods referred to in section 1121
of such title; and
‘‘(3) with leave of the court, from other inter-
locutory orders and decrees;’’.
SEC. 103. EXPEDITED PROCEDURE FOR REAFFIRMATION
OF DEBTS.
(a) REAFFIRMATION.—Section 524(c) of title 11,
United States Code, is amended—
(1) in paragraph (2)—
(A) by inserting ‘‘(A)’’ after ‘‘(2)’’,
(B) by adding ‘‘and’’ at the end, and
(C) by inserting after subparagraph (A),
as so designated, the following:
‘‘(B) such agreement contains a clear and
conspicuous statement which advises the debtor
that such agreement is not required under this
title, under nonbankruptcy law, or under any
agreement not in accordance with the provisions
of this subsection;’’, and
(2) in paragraph (3)—
(A) in the matter preceding subparagraph
(A) by striking ‘‘such agreement’’ the last place
it appears,
(B) in subparagraph (A)—
(i) by inserting ‘‘such agreement’’
after ‘‘(A)’’, and
(ii) by striking ‘‘and’’ at the end,
(C) in subparagraph (B)—
(i) by inserting ‘‘such agreement’’
after ‘‘(B)’’, and
(ii) by adding ‘‘and’’ at the end, and
(3) by adding at the end the following:
‘‘(C) the attorney fully advised the debtor
of the legal effect and consequences of—
‘‘(i) an agreement of the kind speci-
fied in this subsection; and
‘‘(ii) any default under such an agree-
ment;’’.
(b) EFFECT OF DISCHARGE.—The third sentence of
section 524(d) of title 11, United States Code, is amended
in the matter preceding paragraph (1) by inserting ‘‘and
was not represented by an attorney during the course of
negotiating such agreement’’ after ‘‘this section’’.
SEC. 104. POWERS OF BANKRUPTCY COURTS.
(a) STATUS CONFERENCES.—Section 105 of title 11,
United States Code, is amended by adding at the end the
following:
‘‘(d) The court, on its own motion or on the request
of a party in interest, may—
‘‘(1) hold a status conference regarding any
case or proceeding under this title after notice to the
parties in interest; and
‘‘(2) unless inconsistent with another provision
of this title or with applicable Federal Rules of
Bankruptcy Procedure, issue an order at any such
conference prescribing such limitations and condi-
tions as the court deems appropriate to ensure that
the case is handled expeditiously and economically,
including an order that—
‘‘(A) sets the date by which the trustee
must assume or reject an executory contract or
unexpired lease; or
‘‘(B) in a case under chapter 11 of this
title—
‘‘(i) sets a date by which the debtor,
or trustee if one has been appointed, shall
file a disclosure statement and plan;
‘‘(ii) sets a date by which the debtor,
or trustee if one has been appointed, shall
solicit acceptances of a plan;
‘‘(iii) sets the date by which a party
in interest other than a debtor may file a
plan;
‘‘(iv) sets a date by which a proponent
of a plan, other than the debtor, shall so-
licit acceptances of such plan;