(3) 
in 
section 
523(a)(1)(A) 
by 
striking
‘‘507(a)(7)’’ and inserting ‘‘507(a)(8)’’,
(4) in section 724(b)(2) by striking ‘‘or
507(a)(6)’’ and inserting ‘‘507(a)(6), or 507(a)(7)’’,
(5) in section 726(b) by striking ‘‘or (7)’’ and
inserting ‘‘, (7), or (8)’’,
(6) 
in 
section 
1123(a)(1) 
by 
striking
‘‘507(a)(7)’’ and inserting ‘‘507(a)(8)’’,
(7) in section 1129(a)(9)—
(i) in subparagraph (B) by striking ‘‘or
507(a)(6)’’ and inserting ‘‘, 507(a)(6), or
507(a)(7)’’, and
(ii) in subparagraph (C) by striking
‘‘507(a)(7)’’ and inserting ‘‘507(a)(8)’’.
SEC. 305. INTEREST ON INTEREST.
(a) CHAPTER 11.—Section 1123 of title 11, United
States Code, is amended by adding at the end the follow-
ing:
‘‘(d) Notwithstanding subsection (a) of this section
and sections 506(b), 1129(a)(7), and 1129(b) of this title,
if it is proposed in a plan to cure a default the amount
necessary to cure the default shall be determined in ac-
cordance with the underlying agreement and applicable
nonbankruptcy law.’’.
(b) CHAPTER 12.—Section 1222 of title 11, United
States Code, is amended by adding at the end the follow-
ing:
‘‘(d) Notwithstanding subsection (b)(2) of this sec-
tion and sections 506(b) and 1225(a)(5) of this title, if
it is proposed in a plan to cure a default, the amount nec-
essary to cure the default, shall be determined in accord-
ance with the underlying agreement and applicable
nonbankruptcy law.’’.
(c) CHAPTER 13.—Section 1322 of title 11, United
States Code, is amended by adding at the end the follow-
ing:
‘‘(e) Notwithstanding subsection (b)(2) of this section
and sections 506(b) and 1325(a)(5) of this title, if it is
proposed in a plan to cure a default, the amount necessary
to cure the default, shall be determined in accordance with
the underlying agreement and applicable nonbankruptcy
law.’’.
SEC. 306. EXCEPTION TO DISCHARGE.
Section 523(a)(2)(C) of title 11, United States Code,
is amended—
(1) by striking ‘‘$500’’ and inserting ‘‘$1,000’’,
(2) by striking ‘‘forty’’ and inserting ‘‘60’’, and
(3) by striking ‘‘twenty’’ and inserting ‘‘60’’.
SEC. 307. PAYMENTS UNDER CHAPTER 13.
Section 1326(a)(2) of title 11, United States Code,
is amended in the second sentence by striking the period
and inserting ‘‘as soon as practicable.’’.
SEC. 308. BANKRUPTCY PETITION PREPARERS.
(a) AMENDMENT OF CHAPTER 1.—Chapter 1 of title
11, United States Code, is amended by adding at the end
the following:
‘‘§ 110. Penalty for persons who negligently or fraud-
ulently prepare bankruptcy petitions
‘‘(a) In this section—
‘‘(1) ‘bankruptcy petition preparer’ means a
person, other than an attorney or an employee of an
attorney, who prepares for compensation a document
for filing; and
‘‘(2) ‘document for filing’ means a petition or
any other document prepared for filing by a debtor
in a United States bankruptcy court or a United
States district court in connection with a case under
this title.
‘‘(b)(1) A bankruptcy petition preparer who prepares
a document for filing shall sign the document and print
on the document the preparer’s name and address.
‘‘(2) A bankruptcy petition preparer who fails to com-
ply with paragraph (1) may be fined not more than $500
for each such failure unless the failure is due to reasonable
cause.
‘‘(c)(1) A bankruptcy petition preparer who prepares
a document for filing shall place on the document, after
the preparer’s signature, an identifying number that iden-
tifies individuals who prepared the document.
‘‘(2) For purposes of this section, the identifying
number of a bankruptcy petition preparer shall be the So-
cial Security account number of each individual who pre-
pared the document or assisted in its preparation.
‘‘(3) A bankruptcy petition preparer who fails to com-
ply with paragraph (1) may be fined not more than $500
for each such failure unless the failure is due to reasonable
cause.
‘‘(d)(1) A bankruptcy petition preparer shall, not
later than the time at which a document for filing is pre-
sented for the debtor’s signature, furnish to the debtor
a copy of the document.
‘‘(2) A bankruptcy petition preparer who fails to com-
ply with paragraph (1) may be fined not more than $500
for each such failure unless the failure is due to reasonable
cause.
‘‘(e)(1) A bankruptcy petition preparer shall not exe-
cute any document on behalf of a debtor.
‘‘(2) A bankruptcy petition preparer may be fined not
more than $500 for each document executed in violation
of paragraph (1).
‘‘(f)(1) A bankruptcy petition preparer shall not use
the word ‘legal’ or any similar term in any advertisements,
or advertise under any category that includes the word
‘legal’ or any similar term.
‘‘(2) A bankruptcy petition preparer shall be fined
not more than $500 for each violation of paragraph (1).
‘‘(g)(1) A bankruptcy petition preparer shall not col-
lect or receive any payment from the debtor or on behalf
of the debtor for the court fees in connection with filing
the petition.
‘‘(2) A bankruptcy petition preparer shall be fined
not more than $500 for each violation of paragraph (1).
‘‘(h)(1) Within 10 days after the date of the filing
of a petition, a bankruptcy petition preparer shall file a
declaration under penalty of perjury disclosing any fee re-
ceived from or on behalf of the debtor within 12 months
immediately prior to the filing of the case, and any unpaid
fee charged to the debtor.
‘‘(2) The court shall disallow and order the imme-
diate turnover to the bankruptcy trustee of any fee re-
ferred to in paragraph (1) found to be in excess of the
value of services rendered for the documents prepared. An
‘‘(ii) twice the amount paid by the debtor
to the bankruptcy petition preparer for the pre-
parer’s services; and
‘‘(C) reasonable attorneys’ fees and costs in
moving for damages under this subsection.
‘‘(2) If the trustee or creditor moves for damages on
behalf of the debtor under this subsection, the bankruptcy
petition preparer shall be ordered to pay the movant the
additional amount of $1,000 plus reasonable attorneys’
fees and costs incurred.
‘‘(j)(1) A debtor for whom a bankruptcy petition pre-
parer has prepared a document for filing, the trustee, a
creditor, or the United States trustee in the district in
which the bankruptcy petition preparer resides, has con-
ducted business, or the United States trustee in any other
district in which the debtor resides may bring a civil action
to enjoin a bankruptcy petition preparer from engaging
in any conduct in violation of this section or from further
acting as a bankruptcy petition preparer.
‘‘(2)(A) In an action under paragraph (1), if the
court finds that—
‘‘(i) a bankruptcy petition preparer has—
‘‘(I) engaged in conduct in violation of this
section or of any provision of this title a viola-
tion of which subjects a person to criminal pen-
alty;
‘‘(II) misrepresented the preparer’s experi-
ence or education as a bankruptcy petition pre-
parer; or
‘‘(III) engaged in any other fraudulent, un-
fair, or deceptive conduct; and
‘‘(ii) injunctive relief is appropriate to prevent
the recurrence of such conduct,
the court may enjoin the bankruptcy petition preparer
from engaging in such conduct.
‘‘(B) If the court finds that a bankruptcy petition
preparer has continually engaged in conduct described in
subclause (I), (II), or (III) of clause (i) and that an in-
junction prohibiting such conduct would not be sufficient
to prevent such person’s interference with the proper ad-
ministration of this title, or has not paid a penalty im-
posed under this section, the court may enjoin the person
from acting as a bankruptcy petition preparer.
‘‘(3) The court shall award to a debtor, trustee, or
creditor that brings a successful action under this sub-
section reasonable attorney’s fees and costs of the action,
to be paid by the bankruptcy petition preparer.
‘‘(k) Nothing in this section shall be construed to per-
mit activities that are otherwise prohibited by law, includ-
ing rules and laws that prohibit the unauthorized practice
of law.’’.
(b) The chapter analysis for chapter 1 of title 11,
United States Code, is amended by adding at the end the
following new item:
‘‘110. Penalty for persons who negligently or fraudulently prepare bankruptcy pe-
titions.’’.
SEC. 309. FAIRNESS TO CONDOMINIUM AND COOPERATIVE
OWNERS.
Section 523(a) of title 11, United States Code, as
amended by sections 221 and 304, is amended by adding
at the end the following:
‘‘(16) for a fee or assessment that becomes due
and payable after the order for relief to a membership
association with respect to the debtor’s interest in a
dwelling unit that has condominium ownership or in
a share of a cooperative housing corporation, but only
if such fee or assessment is payable for a period dur-
ing which—
‘‘(A) the debtor physically occupied a dwell-
ing unit in the condominium or cooperative
project; or
‘‘(B) the debtor rented the dwelling unit to
a tenant and received payments from the tenant
for such period,
but nothing in this paragraph shall except from dis-
charge the debt of a debtor for a membership asso-
ciation fee or assessment for a period arising before
entry of the order for relief in a pending or subse-
quent bankruptcy case.’’.
SEC. 310. NONAVOIDABILITY OF FIXING OF LIEN ON TOOLS
AND IMPLEMENTS OF TRADE, ANIMALS, AND
CROPS.
Section 522(f) of title 11, United States Code, as
amended by sections 303 and 304, is amended—
(1) in paragraph (1) by inserting ‘‘but subject
to paragraph (3)’’ after ‘‘waiver of exemptions’’, and
(2) by adding at the end the following:
‘‘(3) In a case in which State law that is applicable
to the debtor—
‘‘(A) permits a person to voluntarily waive a
right to claim exemptions under subsection (d) or
prohibits a debtor from claiming exemptions under
subsection (d); and
‘‘(B) either permits the debtor to claim exemp-
tions under State law without limitation in amount,
except to the extent that the debtor has permitted
the fixing of a consensual lien on any property or
prohibits avoidance of a consensual lien on property
otherwise eligible to be claimed as exempt property;
the debtor may not avoid the fixing of a lien on an interest
of the debtor or a dependent of the debtor in property
if the lien is a nonpossessory, nonpurchase-money security
interest in implements, professional books, or tools of the
trade of the debtor or a dependent of the debtor or farm
animals or crops of the debtor or a dependent of the debt-
or to the extent the value of such implements, professional
books, tools of the trade, animals, and crops exceeds
$5,000.’’.
SEC. 311. CONVERSION OF CASE UNDER CHAPTER 13.
Section 348 of title 11, United States Code, is
amended by adding at the end the following:
‘‘(f)(1) Except as provided in paragraph (2), when
a case under chapter 13 of this title is converted to a case
under another chapter under this title—
‘‘(A) property of the estate in the converted
case shall consist of property of the estate, as of the
date of filing of the petition, that remains in the
possession of or is under the control of the debtor
on the date of conversion; and
‘‘(B) valuations of property and of allowed se-
cured claims in the chapter 13 case shall apply in
the converted case, with allowed secured claims re-
duced to the extent that they have been paid in ac-
cordance with the chapter 13 plan.
‘‘(2) If the debtor converts a case under chapter 13
of this title to a case under another chapter under this
title in bad faith, the property in the converted case shall
consist of the property of the estate as of the date of con-
version.’’.
SEC. 312. BANKRUPTCY FRAUD.
(a) IN GENERAL.—
(1) OFFENSES.—Chapter 9 of title 18, United
States Code, is amended—
(A) by amending sections 152, 153, and
154 to read as follows:
‘‘§ 152. Concealment of assets; false oaths and claims;
bribery
‘‘A person who—
‘‘(1) knowingly and fraudulently conceals from
a custodian, trustee, marshal, or other officer of the
court charged with the control or custody of prop-
erty, or, in connection with a case under title 11,
from creditors or the United States Trustee, any
property belonging to the estate of a debtor;
‘‘(2) knowingly and fraudulently makes a false
oath or account in or in relation to any case under
title 11;
‘‘(3) knowingly and fraudulently makes a false
declaration, certificate, verification, or statement
‘‘(8) after the filing of a case under title 11 or
in contemplation thereof, knowingly and fraudulently
conceals, destroys, mutilates, falsifies, or makes a
false entry in any recorded information (including
books, documents, records, and papers) relating to
the property or financial affairs of a debtor; or
‘‘(9) after the filing of a case under title 11,
knowingly and fraudulently withholds from a custo-
dian, trustee, marshal, or other officer of the court
or a United States Trustee entitled to its possession,
any recorded information (including books, docu-
ments, records, and papers) relating to the property
or financial affairs of a debtor,
shall be fined not more than $5,000, imprisoned not more
than 5 years, or both.
‘‘§ 153. Embezzlement against estate
‘‘(a) OFFENSE.—A person described in subsection (b)
who knowingly and fraudulently appropriates to the per-
son’s own use, embezzles, spends, or transfers any prop-
erty or secretes or destroys any document belonging to the
estate of a debtor shall be fined not more than $5,000,
imprisoned not more than 5 years, or both.
‘‘(b) PERSON TO WHOM SECTION APPLIES.—A per-
son described in this subsection is one who has access to
property or documents belonging to an estate by virtue
of the person’s participation in the administration of the
estate as a trustee, custodian, marshal, attorney, or other
officer of the court or as an agent, employee, or other per-
son engaged by such an officer to perform a service with
respect to the estate.
‘‘§ 154. Adverse interest and conduct of officers
‘‘A person who, being a custodian, trustee, marshal,
or other officer of the court—
‘‘(1) knowingly purchases, directly or indirectly,
any property of the estate of which the person is
such an officer in a case under title 11;
‘‘(2) knowingly refuses to permit a reasonable
opportunity for the inspection by parties in interest
of the documents and accounts relating to the af-
fairs of estates in the person’s charge by parties
when directed by the court to do so; or
‘‘(3) knowingly refuses to permit a reasonable
opportunity for the inspection by the United States
Trustee of the documents and accounts relating to
the affairs of an estate in the person’s charge,
shall be fined not more than $5,000 and shall forfeit the
person’s office, which shall thereupon become vacant.’’;
and
(B) by adding at the end the following:
‘‘§ 156. Knowing disregard of bankruptcy law or rule
‘‘(a) DEFINITIONS.—In this section—
‘‘ ‘bankruptcy petition preparer’ means a per-
son, other than the debtor’s attorney or an employee
of such an attorney, who prepares for compensation
a document for filing.
‘‘ ‘document for filing’ means a petition or any
other document prepared for filing by a debtor in a
United States bankruptcy court or a United States
district court in connection with a case under this
title.
‘‘(b) OFFENSE.—If a bankruptcy case or related pro-
ceeding is dismissed because of a knowing attempt by a
bankruptcy petition preparer in any manner to disregard
the requirements of title 11, United States Code, or the
Federal Rules of Bankruptcy Procedure, the bankruptcy
petition preparer shall be fined under this title, imprisoned
not more than 1 year, or both.
‘‘§ 157. Bankruptcy fraud
‘‘A person who, having devised or intending to devise
a scheme or artifice to defraud and for the purpose of exe-
cuting or concealing such a scheme or artifice or attempt-
ing to do so—
‘‘(1) files a petition under title 11;
‘‘(2) files a document in a proceeding under
title 11; or
‘‘(3) makes a false or fraudulent representation,
claim, or promise concerning or in relation to a pro-
ceeding under title 11, at any time before or after
the filing of the petition, or in relation to a proceed-
ing falsely asserted to be pending under such title,
shall be fined under this title, imprisoned not more than
5 years, or both.’’.
(2) TECHNICAL
AMENDMENTS.—The chapter
analysis for chapter 9 of title 18, United States
Code, is amended—
(A) by amending the item relating to sec-
tion 153 to read as follows:
‘‘Sec. 153. Embezzlement against estate.’’;
and
(B) by adding at the end the following new
items:
‘‘Sec. 156. Knowing disregard of bankruptcy law or rule.
‘‘Sec. 157. Bankruptcy fraud.’’.
(b) RICO.—Section 1961(1)(D) of title 18, United
States Code, is amended by inserting ‘‘(except a case
under section 157 of that title)’’ after ‘‘title 11’’.
SEC. 313. PROTECTION AGAINST DISCRIMINATORY TREAT-
MENT 
OF 
APPLICATIONS 
FOR 
STUDENT
LOANS.
Section 525 of title 11, United States Code, is
amended by adding at the end the following:
‘‘(c)(1) A governmental unit that operates a student
grant or loan program and a person engaged in a business
that includes the making of loans guaranteed or insured
under a student loan program may not deny a grant, loan,
loan guarantee, or loan insurance to a person that is or
has been a debtor under this title or a bankrupt or debtor
under the Bankruptcy Act, or another person with whom
the debtor or bankrupt has been associated, because the
debtor or bankrupt is or has been a debtor under this title
or a bankrupt or debtor under the Bankruptcy Act, has
been insolvent before the commencement of a case under
this title or during the pendency of the case but before
the debtor is granted or denied a discharge, or has not
paid a debt that is dischargeable in the case under this
title or that was discharged under the Bankruptcy Act.
‘‘(2) In this section, ‘student loan program’ means
the program operated under part B, D, or E of title IV
of the Higher Education Act of 1965 or a similar program
operated under State or local law.’’.
TITLE IV—GOVERNMENTAL
BANKRUPTCY ISSUES
SEC. 401. EXCEPTION FROM AUTOMATIC STAY FOR POST-
PETITION PROPERTY TAXES.
Section 362(b) of title 11, United States Code, is
amended by inserting after paragraph (16) the following:
‘‘(18) under subsection (a) of the creation or
perfection of a statutory lien for an ad valorem
property tax imposed by the District of Columbia, or
a political subdivision of a State, if such tax comes
due after the filing of the petition.’’.
SEC. 402. MUNICIPAL BANKRUPTCY.
Section 109(c)(2) of title 11, United States Code, is
amended by striking ‘‘generally authorized’’ and inserting
‘‘specifically authorized, in its capacity as a municipality
or by name,’’.
TITLE V—TECHNICAL
CORRECTIONS
SEC. 501. AMENDMENTS TO BANKRUPTCY DEFINITIONS,
NECESSITATED BY ENACTMENT OF PUBLIC
LAW 101–647.
(a) ALPHABETIZING AND REDESIGNATING DEFINI-
TIONS.—Section 101 of title 11 of the United States Code,
as amended by sections 208, 217, 218, and 304, is amend-
ed—
(1) by redesignating paragraph (3) as para-
graph (21B) and transferring such paragraph so as
to insert it after paragraph (21A),
(2) by redesignating paragraph (39) as para-
graph (51A) and transferring such paragraph so as
to insert it after paragraph (51),
(3) by redesignating paragraphs (54) through
(57), as so redesignated by section 2522(e) of Public
Law 101–647, as paragraphs (53A) through (53D),
respectively,
(4) by redesignating paragraph (56) as in effect
immediately before the enactment of Public Law
101–647, as paragraph (35A) and transferring such
paragraph so as to insert it after paragraph (35),
and
(5) by redesignating paragraph (57), as in ef-
fect immediately before the enactment of Public Law
101–647, as paragraph (39) and transferring such
paragraph so as to insert it after paragraph (38).
(b) CONFORMING AND RELATED AMENDMENTS TO
TITLE 11 OF THE UNITED STATES CODE, BASED ON RE-
DESIGNATED DEFINITIONS.—(1) Section 101 of title 11
of the United States Code, as amended by subsection (a),
is amended—
(A) in paragraph (6) by striking ‘‘section
761(9)’’ and inserting ‘‘section 761’’,
(B) in paragraph (22) by striking ‘‘section
741(7)’’ and inserting ‘‘section 741’’,
(C) in paragraph (35)(B) by striking ‘‘para-
graphs (3)’’ and inserting ‘‘paragraphs (21B)’’,
(D) in paragraph (49)(B)(ii) by striking ‘‘sec-
tion 761(13)’’ and inserting ‘‘section 761’’, and
(E) in paragraph (53A)(A), as so redesignated,
by striking ‘‘section 741(2)’’ and inserting ‘‘section
741’’.
(2) Section 362(b) of title 11, United States Code,
is amended—
(A) in paragraph (6)—
(i) by striking ‘‘section 761(4)’’ and insert-
ing ‘‘section 761’’,
(ii) by striking ‘‘section 741(7)’’ and in-
serting ‘‘section 741’’,
(iii) by striking ‘‘section 101(34), 741(5),
or 761(15)’’ and inserting ‘‘section 101, 741, or
761’’, and
(iv) by striking ‘‘section 101(35) or
741(8)’’ and inserting ‘‘section 101 or 741’’,
and
(B) in paragraph (7)—
(i) by striking ‘‘section 741(5) or 761(15)’’
and inserting ‘‘section 741 or 761’’, and
(ii) by striking ‘‘section 741(8)’’ and in-
serting ‘‘section 741’’.
(3) Section 507(a)(5) of title 11, United States Code,
is amended—
(A) by striking ‘‘section 557(b)(1)’’ and insert-
ing ‘‘section 557(b)’’, and
(B) by striking ‘‘section 557(b)(2)’’ and insert-
ing ‘‘section 557(b)’’.
(4) Section 546 of title 11, United States Code, is
amended—
(A) in subsection (e)—
(i) by striking ‘‘section 101(34), 741(5), or
761(15)’’ and inserting ‘‘section 101, 741, or
761’’, and
(ii) by striking ‘‘section 101(35) or
741(8)’’ and inserting ‘‘section 101 or 741’’,
and
(B) in subsection (f)—
(i) by striking ‘‘section 741(5) or 761(15)’’
and inserting ‘‘section 741 or 761’’, and
(ii) by striking ‘‘section 741(8)’’ and in-
serting ‘‘section 741’’.
(5) Section 548(d)(2) of title 11, United States Code,
is amended—
(A) in subparagraph (B)—
(i) by striking ‘‘section 101(34), 741(5) or
761(15)’’ and inserting ‘‘section 101, 741, or
761’’, and
(ii) by striking ‘‘section 101(35) or
741(8)’’ and inserting ‘‘section 101 or 741’’,
and
(B) in subparagraph (C)—
(i) by striking ‘‘section 741(5) or 761(15)’’
and inserting ‘‘section 741 or 761’’, and
(ii) by striking ‘‘section 741(8)’’ and in-
serting ‘‘section 741’’.
(6) Section 555 of title 11, United States Code, is
amended by striking ‘‘section 741(7)’’ and inserting ‘‘sec-
tion 741 of this title’’.
(7) Section 556 of title 11, United States Code, is
amended by striking ‘‘section 761(4)’’ and inserting ‘‘sec-
tion 761 of this title’’.
(c) CONFORMING AMENDMENTS TO OTHER LAWS
BASED ON REDESIGNATED DEFINITIONS.—(1) Section
207(c)(8)(D) of the Federal Credit Union Act (12 U.S.C.
1787(c)(8)(D)) is amended—
(A) in clause (ii)(I) by striking ‘‘section
741(7)’’ and inserting ‘‘section 741’’,
(B) in clause (iii) by striking ‘‘section 101(24)’’
and inserting ‘‘section 101’’,
(C) in clause (iv)(I) by striking ‘‘section
101(41)’’ and inserting ‘‘section 101’’, and
(D) in clause (v) by striking ‘‘section 101(50)’’
and inserting ‘‘section 101’’.
(2) Section 11(e)(8)(D) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1821(e)(8)(D)) is amended—
(A) in clause (ii)(I) by striking ‘‘section
741(7)’’ and inserting ‘‘section 741’’,
(B) in clause (iii) by striking ‘‘section 761(4)’’
and inserting ‘‘section 761’’,
(C) in clause (iv) by striking ‘‘section 101(24)’’
and inserting ‘‘section 101’’,
(D) in clause (v)(I) by striking ‘‘section
101(41)’’ and inserting ‘‘section 101’’, and
(E) in clause (viii) by striking ‘‘section
101(50)’’ and inserting ‘‘section 101’’.
(d) OTHER TECHNICAL AMENDMENTS.—Title 11 of
the United States Code is amended—
(1) in section 101—
(A) in paragraph (33)—
(i) in subparagraph (A) by striking
‘‘(12 U.S.C. 1813(u))’’, and
(ii) in subparagraph (B) by striking
‘‘(12 U.S.C. 1786(r))’’,
(B) in paragraph (34) by striking ‘‘(12
U.S.C. 1752(7))’’,
(C) in paragraph (35)(A) by striking ‘‘(12
U.S.C. 1813(c)(2))’’,
(D) in paragraph (48)—
(i) by striking ‘‘(15 U.S.C. 78q-1)’’,
and
(ii) 
by 
striking 
‘‘(15 
U.S.C.
78c(12))’’,
(E) in paragraph (49)—
(i) in subparagraph (A)(xii)—
(I) by striking ‘‘(15 U.S.C. 77a
et seq.)’’, and
(II) by striking ‘‘(15 U.S.C.
77c(b))’’, and
(ii) in subparagraph (B)(vi) by strik-
ing ‘‘(15 U.S.C. 77c(b))’’, and
(F) in paragraph (53D), as so redesig-
nated by subsection (a), by striking the period
at the end and inserting a semicolon,
(2) in section 109(b)(2) by striking ‘‘(12 U.S.C.
1813(h))’’,
(3) in section 322(a) by striking ‘‘1302, or
1202’’ and inserting ‘‘1202, or 1302’’,
(4) in section 346—
(A) in subsection (a) by striking ‘‘Internal
Revenue Code of 1954 (26 U.S.C. 1 et seq.)’’
100
and inserting ‘‘Internal Revenue Code of
1986’’, and
(B) in subsection (g)(1)(C) by striking
‘‘Internal Revenue Code of 1954 (26 U.S.C.
371)’’ and inserting ‘‘Internal Revenue Code of
1986’’,
(5) in section 348—
(A) in subsection (b) by striking ‘‘1301(a),
1305(a), 1201(a), 1221, and 1228(a)’’ and in-
serting ‘‘1201(a), 1221, 1228(a), 1301(a), and
1305(a)’’, and
(B) in subsections (b), (c), (d), and (e) by
striking ‘‘1307, or 1208’’ each place it appears
and inserting ‘‘1208, or 1307’’,
(6) in section 349(a) by striking ‘‘109(f)’’ and
inserting ‘‘109(g)’’,
(7) in section 362—
(A) in subsection (a) by striking ‘‘(15
U.S.C. 78eee(a)(3))’’, and
(B) in subsection (b)—
(i) 
by 
striking 
‘‘(15 
U.S.C.
78eee(a)(3))’’,
(ii) in paragraph (10) by striking
‘‘or’’ at the end,
(iii) in paragraph (12)—
101
(I) by striking ‘‘the Ship Mort-
gage Act, 1920 (46 App. U.S.C. 911
et seq.)’’ and inserting ‘‘section 31325
of title 46’’, and
(II) by striking ‘‘(46 App. U.S.C.
1117 and 1271 et seq., respectively)’’,
(iv) in paragraph (13)—
(I) by striking ‘‘the Ship Mort-
gage Act, 1920 (46 App. U.S.C. 911
et seq.)’’ each place it appears and in-
serting ‘‘section 31325 of title 46’’,
(II) by striking ‘‘(46 App. U.S.C.
1117 and 1271 et seq., respectively)’’,
and
(III) by striking ‘‘or’’ at the end,
(v) in paragraph (15), as added by
Public Law 101–508, by striking ‘‘or’’ at
the end,
(vi) in paragraph (16), as added by
Public Law 101–508—
(I) by striking ‘‘(20 U.S.C. 1001
et seq.)’’, and
(II) by striking the period at the
end and inserting a semicolon, and
102
(vii) in paragraph (14), as added by
Public Law 101–311—
(I) by striking the period at the
end and inserting ‘‘; or’’,
(II) by redesignating such para-
graph as paragraph (17), and
(III) by transferring such para-
graph so as to insert such paragraph
after paragraph (16),
(8) in section 363—
(A) in subsection (b)(2) by striking ‘‘(15
U.S.C. 18a)’’, and
(B) in subsection (c)(1) by striking ‘‘1304,
1203, or 1204’’ and inserting ‘‘1203, 1204, or
1304’’,
(9) in section 364—
(A) in subsection (a) by striking ‘‘1304,
1203, or 1204’’ and inserting ‘‘1203, 1204, or
1304’’, and
(B) in subsection (f)—
(i) by striking ‘‘(15 U.S.C. 77e)’’, and
(ii) by striking ‘‘(15 U.S.C. 77aaa et
seq.)’’,
(10) in section 365—
103
(A) in subsection (d)(6)(C) by striking
‘‘the Federal Aviation Act of 1958 (49 U.S.C.
1301)’’ and inserting ‘‘section 40102 of title
49’’,
(B) in subparagraphs (A) and (B) of sub-
section (g)(2) by striking ‘‘1307, or 1208’’ each
place it appears and inserting ‘‘1208, or 1307’’,
(C) in subsection (n)(1)(B) by striking ‘‘to
to’’ and inserting ‘‘to’’,
(D) in subsection (o) by striking ‘‘the Fed-
eral’’ the first place it appears and all that fol-
lows through ‘‘successors,’’, and inserting ‘‘a
Federal depository institutions regulatory agen-
cy (or predecessor to such agency)’’, and
(E) by striking subsection (p),
(11) in section 507, as amended by section
304—
(A) in subsection (a)(9) by striking ‘‘the
Federal’’ the first place it appears and all that
follows through ‘‘successors,’’, and inserting ‘‘a
Federal depository institutions regulatory agen-
cy (or predecessor to such agency)’’, and
(B) in subsection (d) by striking ‘‘or
(a)(6)’’ and inserting ‘‘(a)(6), (a)(7), (a)(8), or
(a)(9)’’,
104
(12) in section 522—
(A) in subsection (b) by striking ‘‘Bank-
ruptcy Rules’’ and inserting ‘‘Federal Rules of
Bankruptcy Procedure’’, and
(B) in subsection (d)(10)(E)(iii)—
(i) by striking ‘‘408, or 409’’ the first
place it appears and inserting ‘‘or 408’’,
and
(ii) by striking ‘‘Internal Revenue
Code of 1954 (26 U.S.C. 401(a), 403(a),
403(b), 408, or 409)’’ and inserting ‘‘In-
ternal Revenue Code of 1986’’,
(13) in section 523—
(A) in subsection (a)—
(i) by striking ‘‘1141,,’’ and inserting
‘‘1141,’’, and
(ii) in paragraph (2)(C) by striking
‘‘(15 U.S.C. 1601 et seq.)’’,
(B) in subsection (b)—
(i) by striking ‘‘(20 U.S.C. 1087-3)’’,
and
(ii) by striking ‘‘(42 U.S.C. 294f)’’,
and
105
(C) in subsection (e) by striking ‘‘deposi-
tory institution or insured credit union’’ and in-
serting ‘‘insured depository institution’’,
(14) in section 524—
(A) in subsection (a)(3) by striking
‘‘1328(c)(1)’’ and inserting ‘‘1328(a)(1)’’,
(B) in subsection (c)(4) by striking
‘‘recission’’ and inserting ‘‘rescission’’, and
(C) in subsection (d)(1)(B)(ii) by adding
‘‘and’’ at the end,
(15) in section 525(a)—
(A) by striking ‘‘(7 U.S.C. 499a-499s)’’,
(B) by striking ‘‘(7 U.S.C. 181-229)’’, and
(C) by striking ‘‘(57 Stat. 422; 7 U.S.C.
204)’’,
(16) in section 542(e) by striking ‘‘to to’’ and
inserting ‘‘to’’,
(17) in section 543(d)(1) by striking ‘‘section,’’
and inserting ‘‘section’’,
(18) in section 549(b) inserting ‘‘the trustee
may not avoid under subsection (a) of this section’’
after ‘‘involuntary case,’’,
(19) in section 553—
(A) in subsection (a)(1) by striking ‘‘other
than under section 502(b)(3) of this title’’, and
106
(B) in subsection (b)(1) by striking
‘‘362(b)(14),,’’ and inserting ‘‘362(b)(14),’’,
(20) in section 555 by striking ‘‘(15 U.S.C.
78aaa et seq.)’’,
(21) in section 559 by striking ‘‘(15 U.S.C.
78aaa et seq.)’’,
(22) in section 706(a) by striking ‘‘1307, or
1208’’ and inserting ‘‘1208, or 1307’’,
(23) in section 724(d) by striking ‘‘Internal
Revenue Code of 1954 (26 U.S.C. 6323)’’ and in-
serting ‘‘Internal Revenue Code of 1986’’,
(24) in section 726(b)—
(A) inserting a comma after ‘‘section
1112’’, and
(B) by inserting ‘‘1009,’’ after ‘‘chapter
under section’’,
(25) in section 741(4)(A)(iii) by striking ‘‘(15
U.S.C. 78a et seq.)’’,
(26) in section 742 by striking ‘‘(15 U.S.C.
78aaa et seq.)’’,
(27) in section 743 by striking ‘‘342(a)’’ and
inserting ‘‘342’’,
(28) in section 745(c) by striking ‘‘Internal
Revenue Code of 1954 (26 U.S.C. 1 et seq.)’’ and
inserting ‘‘Internal Revenue Code of 1986’’,
107
(29) in section 761—
(A) in paragraph (1) by striking ‘‘(7
U.S.C. 1 et seq.)’’,
(B) in paragraph (5) by striking ‘‘(7
U.S.C. 6c(b))’’, and
(C) in paragraph (13) by striking ‘‘(7
U.S.C. 23)’’,
(30) in section 1104(d), as redesignated by sec-
tion 211, inserting a comma after ‘‘interest’’,
(31) in section 1123(a)(1) inserting a comma
after ‘‘title’’ the last place it appears,
(32) in section 1129—
(A) in subsection (a)—
(i) in paragraph (4) by striking the
semicolon at the end and inserting a pe-
riod, and
(ii) in paragraph (12) inserting ‘‘of
title 28’’ after ‘‘section 1930’’, and
(B) in subsection (d) by striking ‘‘(15
U.S.C. 77e)’’,
(33) in section 1145—
(A) in subsection (a)—
(i) by striking ‘‘does’’ and inserting
‘‘do’’,
108
(ii) by striking ‘‘(15 U.S.C. 77e)’’,
and
(iii) in paragraph (3)(B)(i) by striking
‘‘(15 U.S.C. 78m or 78o(d))’’,
(B) in subsection (b)(1) by striking ‘‘(15
U.S.C. 77b(11))’’, and
(C) in subsection (d) by striking ‘‘(15
U.S.C. 77aaa et seq.)’’,
(34) in section 1166(2) by striking ‘‘(45 U.S.C.
791(b))’’,
(35) in section 1167—
(A) by striking ‘‘(45 U.S.C. 151 et seq.)’’,
and
(B) by striking ‘‘(45 U.S.C. 156)’’,
(36) in section 1226(b)(2)—
(A) by striking ‘‘1202(d)’’ and inserting
‘‘1202(c)’’, and
(B) by striking ‘‘1202(e)’’ and inserting
‘‘1202(d)’’,
(37) in section 1302(b)(3) by striking ‘‘and’’ at
the end, and
(38) in section 1328(a)—
(A) in paragraph (2) by striking ‘‘(5) or
(8)’’ and inserting ‘‘(5), (8), or (9)’’, and
(B) by striking the last paragraph (3), and
109
(39) in the table of chapters by striking the
item relating to chapter 15.
SEC. 502. TITLE 28 OF THE UNITED STATES CODE.
Section 586(a)(3) of title 28, United States Code, is
amended in the matter preceding subparagraph (A) by in-
serting ‘‘12,’’ after ‘‘11,’’.
TITLE VI—BANKRUPTCY REVIEW
COMMISSION
SEC. 601. SHORT TITLE.
This title may be cited as the ‘‘National Bankruptcy
Review Commission Act’’.
SEC. 602. ESTABLISHMENT.
There is established the National Bankruptcy Review
Commission (referred to as the ‘‘Commission’’).
SEC. 603. DUTIES OF THE COMMISSION.
The duties of the Commission are—
(1) to investigate and study issues and prob-
lems relating to title 11, United States Code (com-
monly known as the ‘‘Bankruptcy Code’’);
(2) to evaluate the advisability of proposals and
current arrangements with respect to such issues
and problems;
(3) to prepare and submit to the Congress, the
Chief Justice, and the President a report in accord-
ance with section 608; and
110
(4) to solicit divergent views of all parties con-
cerned with the operation of the bankruptcy system.
SEC. 604. MEMBERSHIP.
(a) NUMBER AND APPOINTMENT.—The Commission
shall be composed of 9 members as follows:
(1) Three members appointed by the President,
1 of whom shall be designated as chairman by the
President.
(2) One member shall be appointed by the
President pro tempore of the Senate.
(3) One member shall be appointed by the Mi-
nority Leader of the Senate.
(4) One member shall be appointed by the
Speaker of the House of Representatives.
(5) One member shall be appointed by the Mi-
nority Leader of the House of Representatives.
(6) Two members appointed by the Chief Jus-
tice.
Members of Congress, and officers and employees of the
executive branch, shall be ineligible for appointment to the
Commission.
(b) TERM.—Members of the Commission shall be ap-
pointed for the life of the Commission.
111
(c) QUORUM.—Five members of the Commission
shall constitute a quorum, but a lesser number may con-
duct meetings.
(d) APPOINTMENT DEADLINE.—The first appoint-
ments made under subsection (a) shall be made within 60
days after the date of enactment of this Act.
(e) FIRST MEETING.—The first meeting of the Com-
mission shall be called by the chairman and shall be held
within 210 days after the date of enactment of this Act.
(f) VACANCY.—A vacancy on the Commission result-
ing from the death or resignation of a member shall not
affect its powers and shall be filled in the same manner
in which the original appointment was made.
(g) CONTINUATION OF MEMBERSHIP.—If any mem-
ber of the Commission who was appointed to the Commis-
sion as an officer or employee of a government leaves that
office, or if any member of the Commission who was not
appointed in such a capacity becomes an officer or em-
ployee of a government, the member may continue as a
member of the Commission for not longer than the 90-
day period beginning on the date the member leaves that
office or becomes such an officer or employee, as the case
may be.
(h) CONSULTATION PRIOR TO APPOINTMENT.—Prior
to the appointment of members of the Commission, the
112
President, the President pro tempore of the Senate, the
Speaker of the House of Representatives, and the Chief
Justice shall consult with each other to ensure fair and
equitable representation of various points of view in the
Commission and its staff.
SEC. 605. COMPENSATION OF THE COMMISSION.
(a) PAY.—
(1) 
NONGOVERNMENT
EMPLOYEES.—Each
member of the Commission who is not otherwise em-
ployed by the United States Government shall be en-
titled to receive the daily equivalent of the annual
rate of basic pay payable for level IV of the Execu-
tive Schedule under section 5315 of title 5, United
States Code, for each day (including travel time)
during which he or she is engaged in the actual per-
formance of duties as a member of the Commission.
(2) GOVERNMENT EMPLOYEES.—A member of
the Commission who is an officer or employee of the
United States Government shall serve without addi-
tional compensation.
(b) TRAVEL.—Members of the Commission shall be
reimbursed for travel, subsistence, and other necessary ex-
penses incurred by them in the performance of their du-
ties.
113
SEC. 606. STAFF OF COMMISSION; EXPERTS AND CONSULT-
ANTS.
(a) STAFF.—
(1) APPOINTMENT.—The chairman of the Com-
mission may, without regard to the civil service laws
and regulations, appoint, and terminate an executive
director and such other personnel as are necessary
to enable the Commission to perform its duties. The
employment of an executive director shall be subject
to confirmation by the Commission.
(2) COMPENSATION.—The chairman of the
Commission may fix the compensation of the execu-
tive director and other personnel without regard to
the provisions of chapter 51 and subchapter II of
chapter 53 of title 5, United States Code, relating
to classification of positions and General Schedule
pay rates, except that the rate of pay for the execu-
tive director and other personnel may not exceed the
rate payable for level V of the Executive Schedule
under section 5316 of that title.
(b) EXPERTS AND CONSULTANTS.—The Commission
may procure temporary and intermittent services of ex-
perts and consultants under section 3109(b) of title 5,
United States Code.
114
SEC. 607. POWERS OF THE COMMISSION.
(a) HEARINGS AND MEETINGS.—The Commission or,
on authorization of the Commission, a member of the
Commission, may hold such hearings, sit and act at such
time and places, take such testimony, and receive such evi-
dence, as the Commission considers appropriate. The
Commission or a member of the Commission may admin-
ister oaths or affirmations to witnesses appearing before
it.
(b) OFFICIAL DATA.—The Commission may secure
directly from any Federal department, agency, or court
information necessary to enable it to carry out this title.
Upon request of the chairman of the Commission, the
head of a Federal department or agency or chief judge
of a Federal court shall furnish such information, consist-
ent with law, to the Commission.
(c) FACILITIES AND SUPPORT SERVICES.—The Ad-
ministrator of General Services shall provide to the Com-
mission on a reimbursable basis such facilities and support
services as the Commission may request. Upon request of
the Commission, the head of a Federal department or
agency may make any of the facilities or services of the
agency available to the Commission to assist the Commis-
sion in carrying out its duties under this title.
(d) EXPENDITURES AND CONTRACTS.—The Commis-
sion or, on authorization of the Commission, a member
115
of the Commission may make expenditures and enter into
contracts for the procurement of such supplies, services,
and property as the Commission or member considers ap-
propriate for the purposes of carrying out the duties of
the Commission. Such expenditures and contracts may be
made only to such extent or in such amounts as are pro-
vided in appropriation Acts.
(e) MAILS.—The Commission may use the United
States mails in the same manner and under the same con-
ditions as other Federal departments and agencies of the
United States.
(f) GIFTS.—The Commission may accept, use, and
dispose of gifts or donations of services or property.
SEC. 608. REPORT.
The Commission shall submit to the Congress, the
Chief Justice, and the President a report not later than
2 years after the date of its first meeting. The report shall
contain a detailed statement of the findings and conclu-
sions of the Commission, together with its recommenda-
tions for such legislative or administrative action as it con-
siders appropriate.
SEC. 609. TERMINATION.
The Commission shall cease to exist on the date that
is 30 days after the date on which it submits its report
under section 608.