H.L.C.
‘‘(h) APPLICATION TO EXISTING INJUNCTIONS.—For
purposes of subsection (g)—
‘‘(1) subject to paragraph (2), if an injunction of
the kind described in subsection (g)(1)(B) was issued
before the date of the enactment of this Act, as part
of a plan of reorganization confirmed by an order en-
tered before such date, then the injunction shall be
considered to meet the requirements of subsection
(g)(2)(B) for purposes of subsection (g)(2)(A), and to
satisfy subsection (g)(4)(A)(ii), if—
‘‘(A) the court determined at the time the
plan was confirmed that the plan was fair and
equitable in accordance with the requirements of
section 1129(b);
‘‘(B) as part of the proceedings leading to
issuance of such injunction and confirmation of
such plan, the court had appointed a legal rep-
resentative for the purpose of protecting the
rights of persons that might subsequently assert
demands described in subsection (g)(4)(B) with
respect to such plan; and
‘‘(C) such legal representative did not object
to confirmation of such plan or issuance of such
injunction; and
H.L.C.
‘‘(2) for purposes of paragraph (1), if a trust de-
scribed in subsection (g)(2)(B)(i) is subject to a court
order on the date of the enactment of this Act staying
such trust from settling or paying further claims—
‘‘(A) 
the 
requirements 
of 
subsection
(g)(2)(B)(ii)(V) shall not apply with respect to
such trust until such stay is lifted or dissolved;
and
‘‘(B) if such trust meets such requirements
on the date such stay is lifted or dissolved, such
trust shall be considered to have met such re-
quirements continuously from the date of the en-
actment of this Act.’’.
(b) RULE OF CONSTRUCTION.—Nothing in subsection
(a), or in the amendments made by subsection (a), shall
be construed to modify, impair, or supersede any other au-
thority the court has to issue injunctions in connection with
an order confirming a plan of reorganization.
SEC. 112. AUTHORITY OF BANKRUPTCY JUDGES TO CON-
DUCT JURY TRIALS IN CIVIL PROCEEDINGS.
Section 157 of title 28, United States Code, is amended
by adding at the end the following:
‘‘(e) If the right to a jury trial applies in a proceeding
that may be heard under this section by a bankruptcy judge,
the bankruptcy judge may conduct the jury trial if specially
H.L.C.
designated to exercise such jurisdiction by the district court
and with the express consent of all the parties.’’.
SEC. 113. SOVEREIGN IMMUNITY.
Section 106 of title 11, United States Code, is amended
to read as follows:
‘‘§ 106. Waiver of sovereign immunity
‘‘(a) Notwithstanding an assertion of sovereign immu-
nity, sovereign immunity is abrogated as to a governmental
unit to the extent set forth in this section with respect to
the following:
‘‘(1) Sections 105, 106, 107, 108, 303, 346, 362,
363, 364, 365, 366, 502, 503, 505, 506, 510, 522, 523,
524, 525, 542, 543, 544, 545, 546, 547, 548, 549, 550,
551, 552, 553, 722, 724, 726, 728, 744, 749, 764, 901,
922, 926, 928, 929, 944, 1107, 1141, 1142, 1143,
1146, 1201, 1203, 1205, 1206, 1227, 1231, 1301,
1303, 1305, and 1327 of this title.
‘‘(2) The court may hear and determine any
issue arising with respect to the application of such
sections to governmental units.
‘‘(3) The court may issue against a governmental
unit an order, process, or judgment under such sec-
tions or the Federal Rules of Bankruptcy Procedure,
including an order or judgment awarding a money
recovery, but not including an award of punitive
H.L.C.
damages. Such order or judgment for costs or fees
under this title or the Federal Rules of Bankruptcy
Procedure against any governmental unit shall be
consistent with the provisions and limitations of sec-
tion 2412(d)(2)(A) of title 28.
‘‘(4) The enforcement of any such order, process,
or judgment against any governmental unit shall be
consistent with appropriate nonbankruptcy law ap-
plicable to such governmental unit and, in the case of
a money judgment against the United States, shall be
paid as if it is a judgment rendered by a district
court of the United States.
‘‘(5) Nothing in this section shall create any sub-
stantive claim for relief or cause of action not other-
wise existing under this title, the Federal Rules of
Bankruptcy Procedure, or nonbankruptcy law.
‘‘(b) A governmental unit that has filed a proof of
claim in the case is deemed to have waived sovereign immu-
nity with respect to a claim against such governmental unit
that is property of the estate and that arose out of the same
transaction or occurrence out of which the claim of such
governmental unit arose.
‘‘(c) Notwithstanding any assertion of sovereign im-
munity by a governmental unit, there shall be offset against
a claim or interest of a governmental unit any claim
H.L.C.
against such governmental unit that is property of the es-
tate.’’.
SEC. 114. SERVICE OF PROCESS IN BANKRUPTCY PROCEED-
INGS ON AN INSURED DEPOSITORY INSTITU-
TION.
Rule 7004 of the Federal Rules of Bankruptcy Proce-
dure is amended—
(1) in subdivision (b) by striking ‘‘In addition’’
and inserting ‘‘Except as provided in subdivision (h),
in addition’’, and
(2) by adding at the end the following:
‘‘(h) SERVICE OF PROCESS ON AN INSURED DEPOSI-
TORY INSTITUTION.—Service on an insured depository in-
stitution (as defined in section 3 of the Federal Deposit In-
surance Act) in a contested matter or adversary proceeding
shall be made by certified mail addressed to an officer of
the institution unless—
‘‘(1) the institution has appeared by its attorney,
in which case the attorney shall be served by first
class mail;
‘‘(2) the court orders otherwise after service upon
the institution by certified mail of notice of an appli-
cation to permit service on the institution by first
class mail sent to an officer of the institution des-
ignated by the institution; or
H.L.C.
‘‘(3) the institution has waived in writing its en-
titlement to service by certified mail by designating
an officer to receive service.’’.
SEC. 115. MEETINGS OF CREDITORS AND EQUITY SECURITY
HOLDERS.
Section 341 of title 11, United States Code, is amended
by adding at the end the following:
‘‘(d) Prior to the conclusion of the meeting of creditors
or equity security holders, the trustee shall orally examine
the debtor to ensure that the debtor in a case under chapter
7 of this title is aware of—
‘‘(1) the potential consequences of seeking a dis-
charge in bankruptcy, including the effects on credit
history;
‘‘(2) the debtor’s ability to file a petition under
a different chapter of this title;
‘‘(3) the effect of receiving a discharge of debts
under this title; and
‘‘(4) the effect of reaffirming a debt, including
the debtor’s knowledge of the provisions of section
524(d) of this title.’’.
SEC. 116. TAX ASSESSMENT.
Section 362(b)(9) of title 11, United States Code, is
amended to read as follows:
‘‘(9) under subsection (a), of—
H.L.C.
‘‘(A) an audit by a governmental unit to
determine tax liability;
‘‘(B) the issuance to the debtor by a govern-
mental unit of a notice of tax deficiency;
‘‘(C) a demand for tax returns; or
‘‘(D) the making of an assessment for any
tax and issuance of a notice and demand for
payment of such an assessment (but any tax lien
that would otherwise attach to property of the es-
tate by reason of such an assessment shall not
take effect unless such tax is a debt of the debtor
that will not be discharged in the case and such
property or its proceeds are transferred out of
the estate to, or otherwise revested in, the debt-
or).’’.
SEC. 117. ADDITIONAL TRUSTEE COMPENSATION.
Section 330(b) of title 11, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’, and
(2) by adding at the end thereof the following:
‘‘(2) The Judicial Conference of the United States—
‘‘(A) shall prescribe additional fees of the same
kind as prescribed under section 1914(b) of title 28;
and
H.L.C.
‘‘(B) may prescribe notice of appearance fees and
fees charged against distributions in cases under this
title;
to pay $15 to trustees serving in cases after such trustees’
services are rendered. Beginning 1 year after the date of
the enactment of the Bankruptcy Reform Act of 1994, such
$15 shall be paid in addition to the amount paid under
paragraph (1).’’.
TITLE II—COMMERCIAL
BANKRUPTCY ISSUES
SEC. 201. AIRCRAFT EQUIPMENT AND VESSELS; ROLLING
STOCK EQUIPMENT.
(a) AMENDMENT OF SECTION 1110.—Section 1110 of
title 11, United States Code, is amended to read as follows:
‘‘§ 1110. Aircraft equipment and vessels
‘‘(a)(1) The right of a secured party with a security
interest in equipment described in paragraph (2) or of a
lessor or conditional vendor of such equipment to take pos-
session of such equipment in compliance with a security
agreement, lease, or conditional sale contract is not affected
by section 362, 363, or 1129 or by any power of the court
to enjoin the taking of possession unless—
‘‘(A) before the date that is 60 days after the
date of the order for relief under this chapter, the
trustee, subject to the court’s approval, agrees to per-
H.L.C.
form all obligations of the debtor that become due on
or after the date of the order under such security
agreement, lease, or conditional sale contract; and
‘‘(B) any default, other than a default of a kind
specified in section 365(b)(2), under such security
agreement, lease, or conditional sale contract—
‘‘(i) that occurs before the date of the order
is cured before the expiration of such 60-day pe-
riod; and
‘‘(ii) that occurs after the date of the order
is cured before the later of—
‘‘(I) the date that is 30 days after the
date of the default; or
‘‘(II) the expiration of such 60-day pe-
riod.
‘‘(2) Equipment is described in this paragraph if it
is—
‘‘(A) an aircraft, aircraft engine, propeller, ap-
pliance, or spare part (as defined in section 40102 of
title 49) that is subject to a security interest granted
by, leased to, or conditionally sold to a debtor that is
a citizen of the United States (as defined in 40102 of
title 49) holding an air carrier operating certificate
issued by the Secretary of Transportation pursuant to
chapter 447 of title 49 for aircraft capable of carrying
H.L.C.
10 or more individuals or 6,000 pounds or more of
cargo; or
‘‘(B) a documented vessel (as defined in section
30101(1) of title 46) that is subject to a security in-
terest granted by, leased to, or conditionally sold to
a debtor that is a water carrier that holds a certifi-
cate of public convenience and necessity or permit is-
sued by the Interstate Commerce Commission.
‘‘(3) Paragraph (1) applies to a secured party, lessor,
or conditional vendor acting in its own behalf or acting
as trustee or otherwise in behalf of another party.
‘‘(b) The trustee and the secured party, lessor, or condi-
tional vendor whose right to take possession is protected
under subsection (a) may agree, subject to the court’s ap-
proval, to extend the 60-day period specified in subsection
(a)(1).
‘‘(c) With respect to equipment first placed in service
on or prior to the date of enactment of this subsection, for
purposes of this section—
‘‘(1) the term ‘lease’ includes any written agree-
ment with respect to which the lessor and the debtor,
as lessee, have expressed in the agreement or in a sub-
stantially contemporaneous writing that the agree-
ment is to be treated as a lease for Federal income
tax purposes; and
H.L.C.
‘‘(2) the term ‘security interest’ means a pur-
chase-money equipment security interest.’’.
(b) AMENDMENT OF SECTION 1168.—Section 1168 of
title 11, United States Code, is amended to read as follows:
‘‘§ 1168. Rolling stock equipment
‘‘(a)(1) The right of a secured party with a security
interest in or of a lessor or conditional vendor of equipment
described in paragraph (2) to take possession of such equip-
ment in compliance with an equipment security agreement,
lease, or conditional sale contract is not affected by section
362, 363, or 1129 or by any power of the court to enjoin
the taking of possession, unless—
‘‘(A) before the date that is 60 days after the
date of commencement of a case under this chapter,
the trustee, subject to the court’s approval, agrees to
perform all obligations of the debtor that become due
on or after the date of commencement of the case
under such security agreement, lease, or conditional
sale contract; and
‘‘(B) any default, other than a default of a kind
described in section 365(b)(2), under such security
agreement, lease, or conditional sale contract—
‘‘(i) that occurs before the date of com-
mencement of the case and is an event of default
H.L.C.
therewith is cured before the expiration of such
60-day period; and
‘‘(ii) that occurs or becomes an event of de-
fault after the date of commencement of the case
is cured before the later of—
‘‘(I) the date that is 30 days after the
date of the default or event of default; or
‘‘(II) the expiration of such 60-day pe-
riod.
‘‘(2) Equipment is described in this paragraph if it
is rolling stock equipment or accessories used on such equip-
ment, including superstructures and racks, that is subject
to a security interest granted by, leased to, or conditionally
sold to the debtor.
‘‘(3) Paragraph (1) applies to a secured party, lessor,
or conditional vendor acting in its own behalf or acting
as trustee or otherwise in behalf of another party.
‘‘(b) The trustee and the secured party, lessor, or condi-
tional vendor whose right to take possession is protected
under subsection (a) may agree, subject to the court’s ap-
proval, to extend the 60-day period specified in subsection
(a)(1).
‘‘(c) With respect to equipment first placed in service
on or prior to the date of enactment of this subsection, for
purposes of this section—
H.L.C.
‘‘(1) the term ‘lease’ includes any written agree-
ment with respect to which the lessor and the debtor,
as lessee, have expressed in the agreement or in a sub-
stantially contemporaneous writing that the agree-
ment is to be treated as a lease for Federal income
tax purposes; and
‘‘(2) the term ‘security interest’ means a pur-
chase-money equipment security interest.
‘‘(d) With respect to equipment first placed in service
after the date of enactment of this subsection, for purposes
of this section, the term ‘rolling stock equipment’ includes
rolling stock equipment that is substantially rebuilt and ac-
cessories used on such equipment.’’.
SEC. 202. LIMITATION ON LIABILITY OF NON-INSIDER
TRANSFEREE FOR AVOIDED TRANSFER.
Section 550 of title 11, United States Code, is amend-
ed—
(1) by redesignating subsections (c), (d), and (e)
as subsections (d), (e), and (f), respectively, and
(2) by inserting after subsection (b) the follow-
ing:
‘‘(c) If a transfer made between 90 days and one year
before the filing of the petition—
‘‘(1) is avoided under section 547(b) of this title;
and
H.L.C.
‘‘(2) was made for the benefit of a creditor that
at the time of such transfer was an insider;
the trustee may not recover under subsection (a) from a
transferee that is not an insider.’’.
SEC. 203. PERFECTION OF PURCHASE-MONEY SECURITY IN-
TEREST.
Section 547 of title 11, United States Code, is amend-
ed—
(1) in subsection (c)(3)(B) by striking ‘‘10’’ and
inserting ‘‘20’’, and
(2) in subsection (e)(2)(A) by inserting ‘‘, except
as provided in subsection (c)(3)(B)’’ before the semi-
colon at the end.
SEC. 204. CONTINUED PERFECTION.
(a) AUTOMATIC STAY.—Section 362(b)(3) of title 11,
United States Code, is amended by inserting ‘‘, or to main-
tain or continue the perfection of,’’ after ‘‘to perfect’’.
(b) LIMITATIONS ON AVOIDING POWERS.—Section
546(b) of title 11, United States Code, is amended to read
as follows:
‘‘(b)(1) The rights and powers of a trustee under sec-
tions 544, 545, and 549 of this title are subject to any gen-
erally applicable law that—
‘‘(A) permits perfection of an interest in prop-
erty to be effective against an entity that acquires
H.L.C.
rights in such property before the date of perfection;
or
‘‘(B) provides for the maintenance or continu-
ation of perfection of an interest in property to be ef-
fective against an entity that acquires rights in such
property before the date on which action is taken to
effect such maintenance or continuation.
‘‘(2) If—
‘‘(A) a law described in paragraph (1) requires
seizure of such property or commencement of an ac-
tion to accomplish such perfection, or maintenance or
continuation of perfection of an interest in property;
and
‘‘(B) such property has not been seized or such
an action has not been commenced before the date of
the filing of the petition;
such interest in such property shall be perfected, or perfec-
tion of such interest shall be maintained or continued, by
giving notice within the time fixed by such law for such
seizure or such commencement.’’.
SEC. 205. REJECTION OF UNEXPIRED LEASES OF REAL
PROPERTY OR TIMESHARE INTERESTS.
(a) AMENDMENT TO SECTION 365.—Section 365(h) of
title 11, United States Code, is amended to read as follows:
H.L.C.
‘‘(h)(1)(A) If the trustee rejects an unexpired lease of
real property under which the debtor is the lessor and—
‘‘(i) if the rejection by the trustee amounts to
such a breach as would entitle the lessee to treat such
lease as terminated by virtue of its terms, applicable
nonbankruptcy law, or any agreement made by the
lessee, then the lessee under such lease may treat such
lease as terminated by the rejection; or
‘‘(ii) if the term of such lease has commenced, the
lessee may retain its rights under such lease (includ-
ing rights such as those relating to the amount and
timing of payment of rent and other amounts payable
by the lessee and any right of use, possession, quiet
enjoyment, subletting, assignment, or hypothecation)
that are in or appurtenant to the real property for
the balance of the term of such lease and for any re-
newal or extension of such rights to the extent that
such 
rights 
are 
enforceable 
under 
applicable
nonbankruptcy law.
‘‘(B) If the lessee retains its rights under subparagraph
(A)(ii), the lessee may offset against the rent reserved under
such lease for the balance of the term after the date of the
rejection of such lease and for the term of any renewal or
extension of such lease, the value of any damage caused by
the nonperformance after the date of such rejection, of any
H.L.C.
obligation of the debtor under such lease, but the lessee shall
not have any other right against the estate or the debtor
on account of any damage occurring after such date caused
by such nonperformance.
‘‘(C) The rejection of a lease of real property in a shop-
ping center with respect to which the lessee elects to retain
its rights under subparagraph (A)(ii) does not affect the
enforceability under applicable nonbankruptcy law of any
provision in the lease pertaining to radius, location, use,
exclusivity, or tenant mix or balance.
‘‘(D) In this paragraph, ‘lessee’ includes any successor,
assign, or mortgagee permitted under the terms of such
lease.
‘‘(2)(A) If the trustee rejects a timeshare interest under
a timeshare plan under which the debtor is the timeshare
interest seller and—
‘‘(i) if the rejection amounts to such a breach as
would entitle the timeshare interest purchaser to treat
the timeshare plan as terminated under its terms, ap-
plicable nonbankruptcy law, or any agreement made
by timeshare interest purchaser, the timeshare interest
purchaser under the timeshare plan may treat the
timeshare plan as terminated by such rejection; or
‘‘(ii) if the term of such timeshare interest has
commenced, then the timeshare interest purchaser
H.L.C.
may retain its rights in such timeshare interest for
the balance of such term and for any term of renewal
or extension of such timeshare interest to the extent
that such rights are enforceable under applicable
nonbankruptcy law.
‘‘(B) If the timeshare interest purchaser retains its
rights under subparagraph (A), such timeshare interest
purchaser may offset against the moneys due for such
timeshare interest for the balance of the term after the date
of the rejection of such timeshare interest, and the term of
any renewal or extension of such timeshare interest, the
value of any damage caused by the nonperformance after
the date of such rejection, of any obligation of the debtor
under such timeshare plan, but the timeshare interest pur-
chaser shall not have any right against the estate or the
debtor on account of any damage occurring after such date
caused by such nonperformance.’’.
(b) TECHNICAL AMENDMENT.—Section 553(b)(1) of
title 11, United States Code, is amended by striking
‘‘365(h)(2)’’ and inserting ‘‘365(h)’’.
SEC. 206. CONTENTS OF PLAN.
Section 1123(b) of title 11, United States Code, is
amended—
(1) in paragraph (4) by striking ‘‘and’’ at the
end,
H.L.C.
(2) by redesignating paragraph (5) as para-
graph (6), and
(3) by inserting after paragraph (4) the follow-
ing:
‘‘(5) modify the rights of holders of secured
claims, other than a claim secured only by a security
interest in real property that is the debtor’s principal
residence, or of holders of unsecured claims, or leave
unaffected the rights of holders of any class of claims;
and’’.
SEC. 207. PRIORITY FOR INDEPENDENT SALES REPRESENT-
ATIVES.
Section 507(a)(3) of title 11, United States Code, is
amended to read as follows:
‘‘(3) Third, allowed unsecured claims, but only
to the extent of $4,000 for each individual or corpora-
tion, as the case may be, earned within 90 days before
the date of the filing of the petition or the date of the
cessation of the debtor’s business, whichever occurs
first, for—
‘‘(A) wages, salaries, or commissions, in-
cluding vacation, severance, and sick leave pay
earned by an individual; or
‘‘(B) sales commissions earned by an indi-
vidual or by a corporation with only 1 employee,
H.L.C.
acting as an independent contractor in the sale
of goods or services for the debtor in the ordinary
course of the debtor’s business if, and only if,
during the 12 months preceding that date, at
least 75 percent of the amount that the individ-
ual or corporation earned by acting as an inde-
pendent contractor in the sale of goods or serv-
ices was earned from the debtor;’’.
SEC. 208. EXCLUSION FROM THE ESTATE OF INTERESTS IN
LIQUID 
AND 
GASEOUS 
HYDROCARBONS
TRANSFERRED BY THE DEBTOR PURSUANT
TO PRODUCTION PAYMENT AGREEMENTS.
(a) DEFINITION.—Section 101 of title 11, United
States Code, is amended—
(1) by inserting after paragraph (42) the follow-
ing:
‘‘(42A) ‘production payment’ means a term over-
riding royalty satisfiable in cash or in kind—
‘‘(A) contingent on the production of a liq-
uid or gaseous hydrocarbon from particular real
property; and
‘‘(B) from a specified volume, or a specified
value, from the liquid or gaseous hydrocarbon
produced from such property, and determined
without regard to production costs;’’, and
H.L.C.
(2) by inserting after the first paragraph (56)
the following:
‘‘(56A) ‘term overriding royalty’ means an inter-
est in liquid or gaseous hydrocarbons in place or to
be produced from particular real property that enti-
tles the owner thereof to a share of production, or the
value thereof, for a term limited by time, quantity, or
value realized;’’.
(b) PROPERTY OF THE ESTATE.—Section 541(b)(4) of
title 11, United States Code, is amended—
(1) in subparagraph (A) by striking ‘‘(A)’’ and
inserting ‘‘(A)(i)’’,
(2) in subparagraph (B)—
(A) by striking ‘‘(B)’’ and inserting ‘‘(ii),
(B) by striking ‘‘such interest’’ and insert-
ing ‘‘the interest referred to in clause (i)’’, and
(C) by striking the period at the end and
inserting ‘‘; or’’, and
(3) by adding at the end the following:
‘‘(B)(i) the debtor has transferred such in-
terest pursuant to a written conveyance of a pro-
duction payment to an entity that does not par-
ticipate in the operation of the property from
which such production payment is transferred;
and
H.L.C.
‘‘(ii) but for the operation of this para-
graph, the estate could include the interest re-
ferred to in clause (i) only by virtue of section
542 of this title;’’.
SEC. 209. SELLER’S RIGHT TO RECLAIM GOODS.
Section 546(c)(1) of title 11, United States Code, is
amended to read as follows:
‘‘(1) such a seller may not reclaim any such
goods unless such seller demands in writing reclama-
tion of such goods—
‘‘(A) before 10 days after receipt of such
goods by the debtor; or
‘‘(B) if such 10-day period expires after the
commencement of the case, before 20 days after
receipt of such goods by the debtor; and’’.
SEC. 210. INVESTMENT OF MONEY OF THE ESTATE.
Section 345(b) of title 11, United States Code, is
amended—
(1) in paragraph (2) by striking the period at
the end and inserting a semicolon, and
(2) by adding at the end the following:
‘‘unless the court for cause orders otherwise.’’.
SEC. 211. ELECTION OF TRUSTEE UNDER CHAPTER 11.
(a) ELECTION AUTHORIZED.—Section 1104 of title 11
of the United States Code is amended—
H.L.C.
(1) by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively, and
(2) by inserting after subsection (a) the follow-
ing:
‘‘(b) Except as provided in section 1163 of this title,
on the request of a party in interest made not later than
30 days after the court orders the appointment of a trustee
under subsection (a), the United States trustee shall convene
a meeting of creditors for the purpose of electing one disin-
terested person to serve as trustee in the case. The election
of a trustee shall be conducted in the manner provided in
subsections (a), (b), and (c) of section 702 of this title.’’.
(b) CONFORMING AMENDMENT.—Section 1106(b) of
title 11, United States Code, is amended by striking
‘‘1104(c)’’ and inserting ‘‘1104(d)’’.
SEC. 212. RIGHTS OF PARTNERSHIP TRUSTEE AGAINST
GENERAL PARTNERS.
Section 723(a) of title 11, United States Code, is
amended by striking ‘‘for the full amount of the deficiency’’
and inserting ‘‘to the extent that under applicable
nonbankruptcy law such general partner is personally lia-
ble for such deficiency’’.
SEC. 213. IMPAIRMENT OF CLAIMS AND INTERESTS.
(a) OBJECTION TO CLAIMS FILED UNTIMELY.—Sec-
tion 502(b) of title 11, United States Code, is amended—
H.L.C.
(1) in paragraph (7) by striking ‘‘or’’ at the end,
(2) in paragraph (8) by striking the period at
the end and inserting ‘‘; or’’, and
(3) by adding at the end the following:
‘‘(9) proof of such claim is not timely filed, ex-
cept to the extent tardily filed as permitted under
paragraph (1), (2), or (3) of section 726(a) of this
title or under the Federal Rules of Bankruptcy Proce-
dure, except that a claim of a governmental unit shall
be timely filed if it is filed before 180 days after the
date of the order for relief or such later time as the
Federal Rules of Bankruptcy Procedure may pro-
vide.’’.
(b) TARDILY
FILED
PRIORITY
CLAIMS.—Section
726(a)(1) of title 11, United States Code, is amended by
adding before the semicolon the following: ‘‘, proof of which
is timely filed under section 501 of this title or tardily filed
before the date on which the trustee commences distribution
under this section’’.
(c) FILING OF REQUEST FOR ADMINISTRATIVE EX-
PENSES.—Section 503(a) of title 11, United States Code,
is amended—
(1) by inserting ‘‘timely’’ after ‘‘may’’, and
H.L.C.
(2) by inserting ‘‘, or may tardily file such request
if permitted by the court for cause’’ before the period at
the end.
(d) IMPAIRMENT OF CLAIMS OR INTERESTS.—Section
1124 of title 11, United States Code, is amended—
(1) in paragraph (1) by inserting ‘‘or’’ at the
end,
(2) in paragraph (2) by striking ‘‘; or’’ at the
end and inserting a period, and
(3) by striking paragraph (3).
SEC. 214. PROTECTION OF SECURITY INTEREST IN POST-PE-
TITION RENTS AND LODGING PAYMENTS.
(a) POSTPETITION EFFECT OF SECURITY INTEREST.—
Section 552(b) of title 11, United States Code, is amend-
ed—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’,
(2) by striking ‘‘rents,’’ each place it appears,
and
(3) by adding at the end the following:
‘‘(2) Except as provided in sections 363, 506(c), 522,
544, 545, 547, and 548 of this title, and notwithstanding
section 546(b) of this title, if the debtor and an entity en-
tered into a security agreement before the commencement
of the case and if the security interest created by such secu-
rity agreement extends to property of the debtor acquired
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before the commencement of the case and to amounts paid
as rents of such property or the fees, charges, accounts, or
other payments for the use or occupancy of rooms and other
public facilities in hotels, motels, or other lodging prop-
erties, then such security interest extends to such rents and
such fees, charges, accounts, or other payments acquired by
the estate after the commencement of the case to the extent
provided in such security agreement, except to any extent
that the court, after notice and a hearing and based on the
equities of the case, orders otherwise.’’.
(b) USE SALE, OR LEASE OF PROPERTY.—Section
363(a) of title 11, United States Code, is amended by insert-
ing: ‘‘and the fees, charges, accounts or other payments for
the use or occupancy of rooms and other public facilities
in hotels, motels, or other lodging properties’’ after ‘‘prop-
erty’’.
SEC. 215. AMENDMENT TO DEFINITION OF SWAP AGREE-
MENT.
Subparagraph (A) of the first paragraph (55) of sec-
tion 101 of title 11, United States Code, is amended by in-
serting ‘‘spot foreign exchange agreement,’’ after ‘‘forward
foreign exchange agreement,’’.
SEC. 216. LIMITATION ON AVOIDING POWERS.
Section 546(a)(1) of title 11, United States Code, is
amended to read as follows:
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‘‘(1) the later of—
‘‘(A) 2 years after the entry of the order for
relief; or
‘‘(B) 1 year after the appointment or elec-
tion of the first trustee under section 702, 1104,
1163, 1202, or 1302 of this title if such appoint-
ment or such election occurs before the expiration
of the period specified in subparagraph (A); or’’.
SEC. 217. SMALL BUSINESSES.
(a) DEFINITION.—Section 101 of title 11, United
States Code, is amended by inserting after paragraph (51)
the following:
‘‘(51C) ‘small business’ means a person engaged
in commercial or business activities (but does not in-
clude a person whose primary activity is the business
of owning or operating real property and activities
incidental thereto) whose aggregate noncontingent liq-
uidated secured and unsecured debts as of the date of
the petition do not exceed $2,000,000;’’.
(b) CREDITORS’ COMMITTEES.—Section 1102(a) of
title 11, United States Code, is amended—
(1) in paragraph (1) by striking ‘‘As’’ and in-
serting ‘‘Except as provided in paragraph (3), as’’;
and
(2) by adding at the end the following:
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‘‘(3) On request of a party in interest in a case in
which the debtor is a small business and for cause, the court
may order that a committee of creditors not be appointed.’’.
(c) CONVERSION OR DISMISSAL.—Section 1112(b) of
title 11, United States Code, is amended by inserting ‘‘or
bankruptcy administrator’’ after ‘‘United States trustee’’.
(d) WHO MAY FILE A PLAN.—Section 1121 of title 11,
United States Code, is amended by adding at the end the
following:
‘‘(e) In a case in which the debtor is a small business
and elects to be considered a small business—
‘‘(1) only the debtor may file a plan until after
100 days after the date of the order for relief under
this chapter;
‘‘(2) all plans shall be filed within 160 days
after the date of the order for relief; and
‘‘(3) on request of a party in interest made with-
in the respective periods specified in paragraphs (1)
and (2) and after notice and a hearing, the court
may—
‘‘(A) reduce the 100-day period or the 160-
day period specified in paragraph (1) or (2) for
cause; and
‘‘(B) increase the 100-day period specified
in paragraph (1) if the debtor shows that the
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need for an increase is caused by circumstances
for which the debtor should not be held account-
able.’’.
(e) POSTPETITION DISCLOSURE.—Section 1125 of title
11, United States Code, is amended by adding at the end
the following:
‘‘(f) Notwithstanding subsection (b), in a case in which
the debtor has elected under section 1121(e) to be considered
a small business—
‘‘(1) the court may conditionally approve a dis-
closure statement subject to final approval after notice
and a hearing;
‘‘(2) acceptances and rejections of a plan may be
solicited based on a conditionally approved disclosure
statement as long as the debtor provides adequate in-
formation to each holder of a claim or interest that
is solicited, but a conditionally approved disclosure
statement shall be mailed at least 10 days prior to the
date of the hearing on confirmation of the plan; and
‘‘(3) a hearing on the disclosure statement may
be combined with a hearing on confirmation of a
plan.’’.
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SEC. 218. SINGLE ASSET REAL ESTATE.
(a) DEFINITION.—Section 101 of title 11, United
States Code, is amended by inserting after paragraph (51)
the following:
‘‘(51B) ‘single asset real estate’ means real prop-
erty constituting a single property or project, other
than residential real property with fewer than 4 resi-
dential units, which generates substantially all of the
gross income of a debtor and on which no substantial
business is being conducted by a debtor other than the
business of operating the real property and activities
incidental thereto having aggregate noncontingent,
liquidated secured debts in an amount no more than
$4,000,000;’’.
(b) AUTOMATIC STAY.—Section 362(d) of title 11,
United States Code, is amended—
(1) in paragraph (1) by striking ‘‘or’’ at the end,
(2) in paragraph (2) by striking the period at
the end and inserting ‘‘; or’’, and
(3) by adding at the end the following:
‘‘(3) with respect to a stay of an act against sin-
gle asset real estate under subsection (a), by a creditor
whose claim is secured by an interest in such real es-
tate, unless, not later than the date that is 90 days
after the entry of the order for relief (or such later
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‘‘(5) The court shall reduce the amount of compensa-
tion awarded under this section by the amount of any in-
terim compensation awarded under section 331, and, if the
amount of such interim compensation exceeds the amount
of compensation awarded under this section, may order the
return of the excess to the estate.
‘‘(6) Any compensation awarded for the preparation
of a fee application shall be based on the level and skill
reasonably required to prepare the application.’’.
SEC. 225. NOTICES TO CREDITORS.
Section 342 of title 11, United States Code, is amended
by adding at the end the following:
‘‘(c) If notice is required to be given by the debtor to
a creditor under this title, any rule, any applicable law,
or any order of the court, such notice shall contain the
name, address, and taxpayer identification number of the
debtor, but the failure of such notice to contain such infor-
mation shall not invalidate the legal effect of such notice.’’.
TITLE III—CONSUMER
BANKRUPTCY ISSUES
SEC. 301. PERIOD FOR CURING DEFAULT RELATING TO
PRINCIPAL RESIDENCE.
Section 1322 of title 11, United States Code, is amend-
ed—