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SEC. 1210. 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), or that’’.
SEC. 1211. 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. 1212. 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. 1213. PREFERENCES.
(a) IN GENERAL.—Section 547 of title 11, United
States Code, as amended by this Act, is amended—
(1) in subsection (b), by striking ‘‘subsection (c)’’
and inserting ‘‘subsections (c) and (i)’’; and
(2) by adding at the end the following:
‘‘(i) If the trustee avoids under subsection (b) a trans-
fer made between 90 days and 1 year before the date of
the filing of the petition, by the debtor to an entity that
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is not an insider for the benefit of a creditor that is an
insider, such transfer shall be considered to be avoided
under this section only with respect to the creditor that is
an insider.’’.
(b) APPLICABILITY.—The amendments made by this
section shall apply to any case that is pending or com-
menced on or after the date of enactment of this Act.
SEC. 1214. POSTPETITION TRANSACTIONS.
Section 549(c) of title 11, United States Code, is
amended—
(1) by inserting ‘‘an interest in’’ after ‘‘transfer
of’’ each place it appears;
(2) by striking ‘‘such property’’ and inserting
‘‘such real property’’; and
(3) by striking ‘‘the interest’’ and inserting
‘‘such interest’’.
SEC. 1215. DISPOSITION OF PROPERTY OF THE ESTATE.
Section 726(b) of title 11, United States Code, is
amended by striking ‘‘1009,’’.
SEC. 1216. GENERAL PROVISIONS.
Section 901(a) of title 11, United States Code, as
amended by this Act, is amended by inserting ‘‘1123(d),’’
after ‘‘1123(b),’’.
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SEC. 1217. ABANDONMENT OF RAILROAD LINE.
Section 1170(e)(1) of title 11, United States Code, is
amended by striking ‘‘section 11347’’ and inserting ‘‘section
11326(a)’’.
SEC. 1218. CONTENTS OF PLAN.
Section 1172(c)(1) of title 11, United States Code, is
amended by striking ‘‘section 11347’’ and inserting ‘‘section
11326(a)’’.
SEC. 1219. BANKRUPTCY CASES AND PROCEEDINGS.
Section 1334(d) of title 28, United States Code, is
amended—
(1) by striking ‘‘made under this subsection’’ and
inserting ‘‘made under subsection (c)’’; and
(2) by striking ‘‘This subsection’’ and inserting
‘‘Subsection (c) and this subsection’’.
SEC. 1220. KNOWING DISREGARD OF BANKRUPTCY LAW OR
RULE.
Section 156(a) of title 18, United States Code, is
amended—
(1) in the first undesignated paragraph—
(A) by inserting ‘‘(1) the term’’ before
‘‘ ‘bankruptcy’’; and
(B) by striking the period at the end and
inserting ‘‘; and’’; and
(2) in the second undesignated paragraph—
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(A) by inserting ‘‘(2) the term’’ before ‘‘ ‘doc-
ument’’; and
(B) by striking ‘‘this title’’ and inserting
‘‘title 11’’.
SEC. 1221. TRANSFERS MADE BY NONPROFIT CHARITABLE
CORPORATIONS.
(a) SALE OF PROPERTY OF ESTATE.—Section 363(d)
of title 11, United States Code, is amended by striking
‘‘only’’ and all that follows through the end of the subsection
and inserting ‘‘only—
‘‘(1) in accordance with applicable nonbank-
ruptcy law that governs the transfer of property by
a corporation or trust that is not a moneyed, busi-
ness, or commercial corporation or trust; and
‘‘(2) to the extent not inconsistent with any relief
granted under subsection (c), (d), (e), or (f) of section
362.’’.
(b) CONFIRMATION OF PLAN FOR REORGANIZATION.—
Section 1129(a) of title 11, United States Code, as amended
by this Act, is amended by adding at the end the following:
‘‘(16) All transfers of property of the plan shall
be made in accordance with any applicable provisions
of nonbankruptcy law that govern the transfer of
property by a corporation or trust that is not a
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moneyed, business, or commercial corporation or
trust.’’.
(c) TRANSFER OF PROPERTY.—Section 541 of title 11,
United States Code, as amended by this Act, is amended
by adding at the end the following:
‘‘(g) Notwithstanding any other provision of this title,
property that is held by a debtor that is a corporation de-
scribed in section 501(c)(3) of the Internal Revenue Code
of 1986 and exempt from tax under section 501(a) of such
Code may be transferred to an entity that is not such a
corporation, but only under the same conditions as would
apply if the debtor had not filed a case under this title.’’.
(d) APPLICABILITY.—The amendments made by this
section shall apply to a case pending under title 11, United
States Code, on the date of enactment of this Act, or filed
under that title on or after that date of enactment, except
that the court shall not confirm a plan under chapter 11
of title 11, United States Code, without considering whether
this section would substantially affect the rights of a party
in interest who first acquired rights with respect to the debt-
or after the date of the petition. The parties who may ap-
pear and be heard in a proceeding under this section in-
clude the attorney general of the State in which the debtor
is incorporated, was formed, or does business.
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(e) RULE OF CONSTRUCTION.—Nothing in this section
shall be construed to require the court in which a case under
chapter 11 of title 11, United States Code, is pending to
remand or refer any proceeding, issue, or controversy to any
other court or to require the approval of any other court
for the transfer of property.
SEC. 1222. PROTECTION OF VALID PURCHASE MONEY SECU-
RITY INTERESTS.
Section 547(c)(3)(B) of title 11, United States Code,
is amended by striking ‘‘20’’ and inserting ‘‘30’’.
SEC. 1223. BANKRUPTCY JUDGESHIPS.
(a) SHORT TITLE.—This section may be cited as the
‘‘Bankruptcy Judgeship Act of 2001’’.
(b) TEMPORARY JUDGESHIPS.—
(1) APPOINTMENTS.—The following judgeship
positions shall be filled in the manner prescribed in
section 152(a)(1) of title 28, United States Code, for
the appointment of bankruptcy judges provided for in
section 152(a)(2) of such title:
(A) One additional bankruptcy judgeship
for the eastern district of California.
(B) Four additional bankruptcy judgeships
for the central district of California.
(C) One additional bankruptcy judgeship
for the district of Delaware.
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(D) Two additional bankruptcy judgeships
for the southern district of Florida.
(E) One additional bankruptcy judgeship
for the southern district of Georgia.
(F) Three additional bankruptcy judgeships
for the district of Maryland.
(G) One additional bankruptcy judgeship
for the eastern district of Michigan.
(H) One additional bankruptcy judgeship
for the southern district of Mississippi.
(I) One additional bankruptcy judgeship for
the district of New Jersey.
(J) One additional bankruptcy judgeship
for the eastern district of New York.
(K) One additional bankruptcy judgeship
for the northern district of New York.
(L) One additional bankruptcy judgeship
for the southern district of New York.
(M) One additional bankruptcy judgeship
for the eastern district of North Carolina.
(N) One additional bankruptcy judgeship
for the eastern district of Pennsylvania.
(O) One additional bankruptcy judgeship
for the middle district of Pennsylvania.
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(P) One additional bankruptcy judgeship
for the district of Puerto Rico.
(Q) One additional bankruptcy judgeship
for the western district of Tennessee.
(R) One additional bankruptcy judgeship
for the eastern district of Virginia.
(S) One additional bankruptcy judgeship
for the district of South Carolina.
(T) One additional bankruptcy judgeship
for the district of Nevada, and one for the dis-
trict of Delaware.
(2) VACANCIES.—The first vacancy occurring in
the office of a bankruptcy judge in each of the judicial
districts set forth in paragraph (1) shall not be filled
if the vacancy—
(A) results from the death, retirement, res-
ignation, or removal of a bankruptcy judge; and
(B) occurs 5 years or more after the ap-
pointment date of a bankruptcy judge appointed
under paragraph (1).
(c) EXTENSIONS.—
(1) IN
GENERAL.—The temporary bankruptcy
judgeship positions authorized for the northern dis-
trict of Alabama, the district of Delaware, the district
of Puerto Rico, and the eastern district of Tennessee
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under paragraphs (1), (3), (7), and (9) of section 3(a)
of the Bankruptcy Judgeship Act of 1992 (28 U.S.C.
152 note) are extended until the first vacancy occur-
ring in the office of a bankruptcy judge in the appli-
cable district resulting from the death, retirement, res-
ignation, or removal of a bankruptcy judge and
occurring—
(A) 11 years or more after November 8,
1993, with respect to the northern district of Ala-
bama;
(B) 13 years or more after October 28,
1993, with respect to the district of Delaware;
(C) 11 years or more after August 29, 1994,
with respect to the district of Puerto Rico; and
(D) 11 years or more after November 23,
1993, with respect to the eastern district of Ten-
nessee.
(2) APPLICABILITY OF OTHER PROVISIONS.—All
other provisions of section 3 of the Bankruptcy Judge-
ship Act of 1992 (28 U.S.C. 152 note) remain appli-
cable to temporary judgeship positions referred to in
this subsection.
(d) TECHNICAL AMENDMENTS.—Section 152(a) of title
28, United States Code, is amended—
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(1) in paragraph (1), by striking the first sen-
tence and inserting the following: ‘‘Each bankruptcy
judge to be appointed for a judicial district, as pro-
vided in paragraph (2), shall be appointed by the
United States court of appeals for the circuit in
which such district is located.’’; and
(2) in paragraph (2)—
(A) in the item relating to the middle dis-
trict of Georgia, by striking ‘‘2’’ and inserting
‘‘3’’; and
(B) in the collective item relating to the
middle and southern districts of Georgia, by
striking ‘‘Middle and Southern . . . . . . 1’’.
(e) EFFECTIVE DATE.—The amendments made by this
section shall take effect on the date of enactment of this Act.
SEC. 1224. COMPENSATING TRUSTEES.
Section 1326 of title 11, United States Code, is
amended—
(1) in subsection (b)—
(A) in paragraph (1), by striking ‘‘and’’;
(B) in paragraph (2), by striking the period
at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(3) if a chapter 7 trustee has been allowed com-
pensation due to the conversion or dismissal of the
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debtor’s prior case pursuant to section 707(b), and
some portion of that compensation remains unpaid in
a case converted to this chapter or in the case dis-
missed under section 707(b) and refiled under this
chapter, the amount of any such unpaid compensa-
tion, which shall be paid monthly—
‘‘(A) by prorating such amount over the re-
maining duration of the plan; and
‘‘(B) by monthly payments not to exceed the
greater of—
‘‘(i) $25; or
‘‘(ii) the amount payable to unsecured
nonpriority creditors, as provided by the
plan, multiplied by 5 percent, and the re-
sult divided by the number of months in the
plan.’’; and
(2) by adding at the end the following:
‘‘(d) Notwithstanding any other provision of this
title—
‘‘(1) compensation referred to in subsection
(b)(3) is payable and may be collected by the trustee
under that paragraph, even if such amount has been
discharged in a prior proceeding under this title; and
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‘‘(2) such compensation is payable in a case
under this chapter only to the extent permitted by
subsection (b)(3).’’.
SEC. 1225. AMENDMENT TO SECTION 362 OF TITLE 11,
UNITED STATES CODE.
Section 362(b)(18) of title 11, United States Code, is
amended to read as follows:
‘‘(18) under subsection (a) of the creation or per-
fection of a statutory lien for an ad valorem property
tax, or a special tax or special assessment on real
property whether or not ad valorem, imposed by a
governmental unit, if such tax or assessment comes
due after the filing of the petition;’’.
SEC. 1226. JUDICIAL EDUCATION.
The Director of the Federal Judicial Center, in con-
sultation with the Director of the Executive Office for
United States Trustees, shall develop materials and conduct
such training as may be useful to courts in implementing
this Act and the amendments made by this Act, including
the requirements relating to the means test and reaffirma-
tions under section 707(b) of title 11, United States Code,
as amended by this Act.
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SEC. 1227. RECLAMATION.
(a) RIGHTS AND POWERS OF THE TRUSTEE.—Section
546(c) of title 11, United States Code, is amended to read
as follows:
‘‘(c)(1) Except as provided in subsection (d) of this sec-
tion and subsection (c) of section 507, and subject to the
prior rights of holders of security interests in such goods
or the proceeds thereof, the rights and powers of the trustee
under sections 544(a), 545, 547, and 549 are subject to the
right of a seller of goods that has sold goods to the debtor,
in the ordinary course of such seller’s business, to reclaim
such goods if the debtor has received such goods while insol-
vent, not later than 45 days prior to the date of the com-
mencement of a case under this title, but such seller may
not reclaim such goods unless such seller demands in writ-
ing reclamation of such goods—
‘‘(A) not later than 45 days after the date of re-
ceipt of such goods by the debtor; or
‘‘(B) not later than 20 days after the date of
commencement of the case, if the 45-day period ex-
pires after the commencement of the case.
‘‘(2) If a seller of goods fails to provide notice in the
manner described in paragraph (1), the seller still may as-
sert the rights contained in section 503(b)(7).’’.
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(b) ADMINISTRATIVE EXPENSES.—Section 503(b) of
title 11, United States Code, as amended by this Act, is
amended by adding at the end the following:
‘‘(10) the value of any goods received by the debt-
or not later than 20 days prior to the date of com-
mencement of a case under this title in which the
goods have been sold to the debtor in the ordinary
course of such debtor’s business.’’.
SEC. 1228. PROVIDING REQUESTED TAX DOCUMENTS TO
THE COURT.
(a) CHAPTER 7 CASES.—The court shall not grant a
discharge in the case of an individual seeking bankruptcy
under chapter 7 of title 11, United States Code, unless re-
quested tax documents have been provided to the court.
(b) CHAPTER 11 AND CHAPTER 13 CASES.—The court
shall not confirm a plan of reorganization in the case of
an individual under chapter 11 or 13 of title 11, United
States Code, unless requested tax documents have been filed
with the court.
(c) DOCUMENT RETENTION.—The court shall destroy
documents submitted in support of a bankruptcy claim not
sooner than 3 years after the date of the conclusion of a
bankruptcy case filed by an individual under chapter 7,
11, or 13 of title 11, United States Code. In the event of
a pending audit or enforcement action, the court may ex-
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tend the time for destruction of such requested tax docu-
ments.
SEC. 1229. ENCOURAGING CREDITWORTHINESS.
(a) SENSE OF THE CONGRESS.—It is the sense of the
Congress that—
(1) certain lenders may sometimes offer credit to
consumers indiscriminately, without taking steps to
ensure that consumers are capable of repaying the re-
sulting debt, and in a manner which may encourage
certain consumers to accumulate additional debt; and
(2) resulting consumer debt may increasingly be
a major contributing factor to consumer insolvency.
(b) STUDY REQUIRED.—The Board of Governors of the
Federal Reserve System (hereafter in this section referred
to as the ‘‘Board’’) shall conduct a study of—
(1) consumer credit industry practices of solic-
iting and extending credit—
(A) indiscriminately;
(B) without taking steps to ensure that con-
sumers are capable of repaying the resulting
debt; and
(C) in a manner that encourages consumers
to accumulate additional debt; and
(2) the effects of such practices on consumer debt
and insolvency.
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(c) REPORT AND REGULATIONS.—Not later than 12
months after the date of enactment of this Act, the Board—
(1) shall make public a report on its findings
with respect to the indiscriminate solicitation and ex-
tension of credit by the credit industry;
(2) may issue regulations that would require ad-
ditional disclosures to consumers; and
(3) may take any other actions, consistent with
its existing statutory authority, that the Board finds
necessary to ensure responsible industrywide practices
and to prevent resulting consumer debt and insol-
vency.
SEC. 1230. PROPERTY NO LONGER SUBJECT TO REDEMP-
TION.
Section 541(b) of title 11, United States Code, is
amended by inserting after paragraph (8), as added by this
Act, the following:
‘‘(9) subject to subchapter III of chapter 5, any
interest of the debtor in property where the debtor
pledged or sold tangible personal property (other than
securities or written or printed evidences of indebted-
ness or title) as collateral for a loan or advance of
money given by a person licensed under law to make
such loans or advances, where—
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‘‘(A) the tangible personal property is in the
possession of the pledgee or transferee;
‘‘(B) the debtor has no obligation to repay
the money, redeem the collateral, or buy back the
property at a stipulated price; and
‘‘(C) neither the debtor nor the trustee have
exercised any right to redeem provided under the
contract or State law, in a timely manner as
provided under State law and section 108(b) of
this title; or’’.
SEC. 1231. TRUSTEES.
(a) SUSPENSION AND TERMINATION OF PANEL TRUST-
EES AND STANDING TRUSTEES.—Section 586(d) of title 28,
United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and
(2) by adding at the end the following:
‘‘(2) A trustee whose appointment under subsection
(a)(1) or under subsection (b) is terminated or who ceases
to be assigned to cases filed under title 11, United States
Code, may obtain judicial review of the final agency deci-
sion by commencing an action in the United States district
court for the district for which the panel to which the trustee
is appointed under subsection (a)(1), or in the United
States district court for the district in which the trustee
is appointed under subsection (b) resides, after first ex-
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hausting all available administrative remedies, which if the
trustee so elects, shall also include an administrative hear-
ing on the record. Unless the trustee elects to have an ad-
ministrative hearing on the record, the trustee shall be
deemed to have exhausted all administrative remedies for
purposes of this paragraph if the agency fails to make a
final agency decision within 90 days after the trustee re-
quests administrative remedies. The Attorney General shall
prescribe procedures to implement this paragraph. The de-
cision of the agency shall be affirmed by the district court
unless it is unreasonable and without cause based on the
administrative record before the agency.’’.
(b) EXPENSES
OF STANDING TRUSTEES.—Section
586(e) of title 28, United States Code, is amended by add-
ing at the end the following:
‘‘(3) After first exhausting all available administrative
remedies, an individual appointed under subsection (b)
may obtain judicial review of final agency action to deny
a claim of actual, necessary expenses under this subsection
by commencing an action in the United States district
court in the district where the individual resides. The deci-
sion of the agency shall be affirmed by the district court
unless it is unreasonable and without cause based upon the
administrative record before the agency.
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‘‘(4) The Attorney General shall prescribe procedures
to implement this subsection.’’.
SEC. 1232. BANKRUPTCY FORMS.
Section 2075 of title 28, United States Code, is amend-
ed by adding at the end the following:
‘‘The bankruptcy rules promulgated under this section shall
prescribe a form for the statement required under section
707(b)(2)(C) of title 11 and may provide general rules on
the content of such statement.’’.
SEC. 1233. EXPEDITED APPEALS OF BANKRUPTCY CASES TO
COURTS OF APPEALS.
(a) APPEALS.—Section 158 of title 28, United States
Code, is amended—
(1) in subsection (c)(1), by striking ‘‘Subject to
subsection (b),’’ and inserting ‘‘Subject to subsections
(b) and (d)(2),’’; and
(2) in subsection (d)—
(A) by inserting ‘‘(1)’’ after ‘‘(d)’’; and
(B) by adding at the end the following:
‘‘(2)(A) A court of appeals that would have jurisdic-
tion of a subsequent appeal under paragraph (1) or other
law may authorize an immediate appeal of an order or de-
cree, not otherwise appealable, that is entered in a case or
proceeding pending under section 157 or is entered by the
district court or bankruptcy appellate panel exercising ju-
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risdiction under subsection (a) or (b), if the bankruptcy
court, district court, bankruptcy appellate panel, or the
parties acting jointly certify that—
‘‘(i) the order or decree involves—
‘‘(I) a substantial question of law;
‘‘(II) a question of law requiring resolution
of conflicting decisions; or
‘‘(III) a matter of public importance; and
‘‘(ii) an immediate appeal from the order or de-
cree may materially advance the progress of the case
or proceeding.
‘‘(B) An appeal under this paragraph does not stay
proceedings in the court from which the order or decree
originated, unless the originating court or the court of ap-
peals orders such a stay.’’.
(b) PROCEDURAL RULES.—
(1) TEMPORARY APPLICATION.—A provision of
this subsection shall apply to appeals under section
158(d)(2) of title 28, United States Code, as added by
subsection (a) of this section, until a rule of practice
and procedure relating to such provision and appeal
is promulgated or amended under chapter 131 of such
title.
(2) CERTIFICATION.—A district court, bank-
ruptcy court, or bankruptcy appellate panel may
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enter a certification as described in section 158(d)(2)
of title 28, United States Code, during proceedings
pending before that court or panel.
(3) PROCEDURE.—Subject to the other provisions
of this subsection, an appeal by permission under sec-
tion 158(d)(2) of title 28, United States Code, shall
be taken in the manner prescribed in rule 5 of the
Federal Rules of Appellate Procedure.
(4) FILING PETITION.—When permission to ap-
peal is requested on the basis of a certification of the
parties, a district court, bankruptcy court, or bank-
ruptcy appellate panel, the petition shall be filed
within 10 days after the certification is entered or
filed.
(5) ATTACHMENT.—When permission to appeal
is requested on the basis of a certification of a district
court, bankruptcy court, or bankruptcy appellate
panel, a copy of the certification shall be attached to
the petition.
(6) PANEL AND CLERK.—In a case pending be-
fore a bankruptcy appellate panel in which permis-
sion to appeal is requested, the terms ‘‘district court’’
and ‘‘district clerk’’, as used in rule 5 of the Federal
Rules of Appellate Procedure, mean ‘‘bankruptcy ap-
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pellate panel’’ and ‘‘clerk of the bankruptcy appellate
panel’’, respectively.
(7) APPLICATION OF RULES.—In a case pending
before a district court, bankruptcy court, or bank-
ruptcy appellate panel in which a court of appeals
grants permission to appeal, the Federal Rules of Ap-
pellate Procedure apply to the proceedings in the
court of appeals, to the extent relevant, as if the ap-
peal were taken from a final judgment, order, or de-
cree of a district court, bankruptcy court, or bank-
ruptcy appellate panel exercising appellate jurisdic-
tion under subsection (a) or (b) of section 158 of title
28, United States Code.
SEC. 1234. EXEMPTIONS.
Section 522(g)(2) of title 11, United States Code, is
amended by striking ‘‘subsection (f)(2)’’ and inserting ‘‘sub-
section (f)(1)(B)’’.
SEC. 1235. INVOLUNTARY CASES.
Section 303 of title 11, United States Code, is
amended—
(1) in subsection (b)(1), by—
(A) inserting ‘‘as to liability or amount’’
after ‘‘bona fide dispute’’; and
(B) striking ‘‘if such claims’’ and inserting
‘‘if such undisputed claims’’; and
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(2) in subsection (h)(1), by inserting before the
semicolon the following: ‘‘as to liability or amount’’.
SEC. 1236. FEDERAL ELECTION LAW FINES AND PENALTIES
AS NONDISCHARGEABLE DEBT.
Section 523(a) of title 11, United States Code, is
amended by inserting after paragraph (14A) (as added by
this Act) the following:
‘‘(14B) incurred to pay fines or penalties im-
posed under Federal election law;’’.
SEC. 1237. NO BANKRUPTCY FOR INSOLVENT POLITICAL
COMMITTEES.
Section 105 of title 11, United States Code, is amended
by adding at the end the following:
‘‘(e) A political committee subject to the jurisdiction
of the Federal Election Commission under Federal election
laws may not file for bankruptcy under this title.’’.
TITLE XIII—CONSUMER CREDIT
DISCLOSURE
SEC. 1301. ENHANCED DISCLOSURES UNDER AN OPEN END
CREDIT PLAN.
(a) 
MINIMUM
PAYMENT
DISCLOSURES.—Section
127(b) of the Truth in Lending Act (15 U.S.C. 1637(b))
is amended by adding at the end the following:
‘‘(11)(A) In the case of an open end credit plan
that requires a minimum monthly payment of not
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more than 4 percent of the balance on which finance
charges are accruing, the following statement, located
on the front of the billing statement, disclosed clearly
and conspicuously: ‘Minimum Payment Warning:
Making only the minimum payment will increase the
interest you pay and the time it takes to repay your
balance. For example, making only the typical 2%
minimum monthly payment on a balance of $1,000
at an interest rate of 17% would take 88 months to
repay the balance in full. For an estimate of the time
it would take to repay your balance, making only
minimum payments, call this toll-free number:
llllll.’ (the blank space to be filled in by the
creditor).
‘‘(B) In the case of an open end credit plan that
requires a minimum monthly payment of more than
4 percent of the balance on which finance charges are
accruing, the following statement, in a prominent lo-
cation on the front of the billing statement, disclosed
clearly and conspicuously: ‘Minimum Payment
Warning: Making only the required minimum pay-
ment will increase the interest you pay and the time
it takes to repay your balance. Making a typical 5%
minimum monthly payment on a balance of $300 at
an interest rate of 17% would take 24 months to
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‘‘(D) Notwithstanding subparagraph (A), (B), or
(C), in complying with any such subparagraph, a
creditor may substitute an example based on an in-
terest rate that is greater than 17 percent. Any cred-
itor that is subject to subparagraph (B) may elect to
provide the disclosure required under subparagraph
(A) in lieu of the disclosure required under subpara-
graph (B).
‘‘(E) The Board shall, by rule, periodically recal-
culate, as necessary, the interest rate and repayment
period under subparagraphs (A), (B), and (C).
‘‘(F)(i) The toll-free telephone number disclosed
by a creditor or the Federal Trade Commission under
subparagraph (A), (B), or (G), as appropriate, may
be a toll-free telephone number established and main-
tained by the creditor or the Federal Trade Commis-
sion, as appropriate, or may be a toll-free telephone
number established and maintained by a third party
for use by the creditor or multiple creditors or the
Federal Trade Commission, as appropriate. The toll-
free telephone number may connect consumers to an
automated device through which consumers may ob-
tain information described in subparagraph (A), (B),
or (C), by inputting information using a touch-tone
telephone or similar device, if consumers whose tele-
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phones are not equipped to use such automated device
are provided the opportunity to be connected to an in-
dividual from whom the information described in sub-
paragraph (A), (B), or (C), as applicable, may be ob-
tained. A person that receives a request for informa-
tion described in subparagraph (A), (B), or (C) from
an obligor through the toll-free telephone number dis-
closed under subparagraph (A), (B), or (C), as appli-
cable, shall disclose in response to such request only
the information set forth in the table promulgated by
the Board under subparagraph (H)(i).
‘‘(ii)(I) The Board shall establish and maintain
for a period not to exceed 24 months following the ef-
fective date of the Bankruptcy Reform Act of 2001, a
toll-free telephone number, or provide a toll-free tele-
phone number established and maintained by a third
party, for use by creditors that are depository institu-
tions (as defined in section 3 of the Federal Deposit
Insurance Act), including a Federal credit union or
State credit union (as defined in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752)), with
total assets not exceeding $250,000,000. The toll-free
telephone number may connect consumers to an auto-
mated device through which consumers may obtain
information described in subparagraph (A) or (B), as
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applicable, by inputting information using a touch-
tone telephone or similar device, if consumers whose
telephones are not equipped to use such automated de-
vice are provided the opportunity to be connected to
an individual from whom the information described
in subparagraph (A) or (B), as applicable, may be
obtained. A person that receives a request for infor-
mation described in subparagraph (A) or (B) from an
obligor through the toll-free telephone number dis-
closed under subparagraph (A) or (B), as applicable,
shall disclose in response to such request only the in-
formation set forth in the table promulgated by the
Board under subparagraph (H)(i). The dollar amount
contained in this subclause shall be adjusted accord-
ing to an indexing mechanism established by the
Board.
‘‘(II) Not later than 6 months prior to the expi-
ration of the 24-month period referenced in subclause
(I), the Board shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the
House of Representatives a report on the program de-
scribed in subclause (I).
‘‘(G) The Federal Trade Commission shall estab-
lish and maintain a toll-free number for the purpose
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of providing to consumers the information required to
be disclosed under subparagraph (C).
‘‘(H) The Board shall—
‘‘(i) establish a detailed table illustrating
the approximate number of months that it would
take to repay an outstanding balance if a con-
sumer pays only the required minimum monthly
payments and if no other advances are made,
which table shall clearly present standardized in-
formation to be used to disclose the information
required to be disclosed under subparagraph (A),
(B), or (C), as applicable;
‘‘(ii) establish the table required under
clause (i) by assuming—
‘‘(I) a significant number of different
annual percentage rates;
‘‘(II) a significant number of different
account balances;
‘‘(III) a significant number of different
minimum payment amounts; and
‘‘(IV) that only minimum monthly
payments are made and no additional ex-
tensions of credit are obtained; and
‘‘(iii) promulgate regulations that provide
instructional guidance regarding the manner in
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which the information contained in the table es-
tablished under clause (i) should be used in re-
sponding to the request of an obligor for any in-
formation required to be disclosed under sub-
paragraph (A), (B), or (C).
‘‘(I) The disclosure requirements of this para-
graph do not apply to any charge card account, the
primary purpose of which is to require payment of
charges in full each month.
‘‘(J) A creditor that maintains a toll-free tele-
phone number for the purpose of providing customers
with the actual number of months that it will take to
repay the customer’s outstanding balance is not sub-
ject to the requirements of subparagraph (A) or (B).
‘‘(K) A creditor that maintains a toll-free tele-
phone number for the purpose of providing customers
with the actual number of months that it will take to
repay an outstanding balance shall include the fol-
lowing statement on each billing statement: ‘Making
only the minimum payment will increase the interest
you pay and the time it takes to repay your balance.
For more information, call this toll-free number:
llll.’ (the blank space to be filled in by the
creditor).’’.
(b) REGULATORY IMPLEMENTATION.—
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(1) IN GENERAL.—The Board of Governors of the
Federal Reserve System (hereafter in this title re-
ferred to as the ‘‘Board’’) shall promulgate regula-
tions implementing the requirements of section
127(b)(11) of the Truth in Lending Act, as added by
subsection (a) of this section.
(2) EFFECTIVE DATE.—Section 127(b)(11) of the
Truth in Lending Act, as added by subsection (a) of
this section, and the regulations issued under para-
graph (1) of this subsection shall not take effect until
the later of—
(A) 18 months after the date of enactment
of this Act; or
(B) 12 months after the publication of such
final regulations by the Board.
(c) STUDY OF FINANCIAL DISCLOSURES.—
(1) IN GENERAL.—The Board may conduct a
study to determine the types of information available
to potential borrowers from consumer credit lending
institutions regarding factors qualifying potential
borrowers for credit, repayment requirements, and the
consequences of default.
(2) FACTORS
FOR
CONSIDERATION.—In con-
ducting a study under paragraph (1), the Board
should, in consultation with the other Federal bank-
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ing agencies (as defined in section 3 of the Federal
Deposit Insurance Act), the National Credit Union
Administration, and the Federal Trade Commission,
consider the extent to which—
(A) consumers, in establishing new credit
arrangements, are aware of their existing pay-
ment obligations, the need to consider those obli-
gations in deciding to take on new credit, and
how taking on excessive credit can result in fi-
nancial difficulty;
(B) minimum periodic payment features of-
fered in connection with open end credit plans
impact consumer default rates;
(C) consumers make only the required min-
imum payment under open end credit plans;
(D) consumers are aware that making only
required minimum payments will increase the
cost and repayment period of an open end credit
obligation; and
(E) the availability of low minimum pay-
ment options is a cause of consumers experi-
encing financial difficulty.
(3) REPORT
TO
CONGRESS.—Findings of the
Board in connection with any study conducted under
this subsection shall be submitted to Congress. Such
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report shall also include recommendations for legisla-
tive initiatives, if any, of the Board, based on its
findings.
SEC. 1302. ENHANCED DISCLOSURE FOR CREDIT EXTEN-
SIONS SECURED BY A DWELLING.
(a) OPEN END CREDIT EXTENSIONS.—
(1) CREDIT APPLICATIONS.—Section 127A(a)(13)
of the Truth in Lending Act (15 U.S.C. 1637a(a)(13))
is amended—
(A) by striking ‘‘CONSULTATION OF TAX AD-
VISER.—A statement that the’’ and inserting the
following: ‘‘TAX
DEDUCTIBILITY.—A statement
that—
‘‘(A) the’’; and
(B) by striking the period at the end and
inserting the following: ‘‘; and
‘‘(B) in any case in which the extension of
credit exceeds the fair market value (as defined
under the Internal Revenue Code of 1986) of the
dwelling, the interest on the portion of the credit
extension that is greater than the fair market
value of the dwelling is not tax deductible for
Federal income tax purposes.’’.
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(2) CREDIT ADVERTISEMENTS.—Section 147(b)
of the Truth in Lending Act (15 U.S.C. 1665b(b)) is
amended—
(A) by striking ‘‘If any’’ and inserting the
following:
‘‘(1) IN GENERAL.—If any’’; and
(B) by adding at the end the following:
‘‘(2) CREDIT
IN
EXCESS
OF
FAIR
MARKET
VALUE.—Each advertisement described in subsection
(a) that relates to an extension of credit that may ex-
ceed the fair market value of the dwelling, and which
advertisement is disseminated in paper form to the
public or through the Internet, as opposed to by radio
or television, shall include a clear and conspicuous
statement that—
‘‘(A) the interest on the portion of the credit
extension that is greater than the fair market
value of the dwelling is not tax deductible for
Federal income tax purposes; and
‘‘(B) the consumer should consult a tax ad-
viser for further information regarding the de-
ductibility of interest and charges.’’.
(b) NON-OPEN END CREDIT EXTENSIONS.—
(1) CREDIT APPLICATIONS.—Section 128 of the
Truth in Lending Act (15 U.S.C. 1638) is amended—
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(A) in subsection (a), by adding at the end
the following:
‘‘(15) In the case of a consumer credit trans-
action that is secured by the principal dwelling of the
consumer, in which the extension of credit may exceed
the fair market value of the dwelling, a clear and con-
spicuous statement that—
‘‘(A) the interest on the portion of the credit
extension that is greater than the fair market
value of the dwelling is not tax deductible for
Federal income tax purposes; and
‘‘(B) the consumer should consult a tax ad-
viser for further information regarding the de-
ductibility of interest and charges.’’; and
(B) in subsection (b), by adding at the end
the following:
‘‘(3) In the case of a credit transaction described in
paragraph (15) of subsection (a), disclosures required by
that paragraph shall be made to the consumer at the time
of application for such extension of credit.’’.
(2) CREDIT ADVERTISEMENTS.—Section 144 of
the Truth in Lending Act (15 U.S.C. 1664) is amend-
ed by adding at the end the following:
‘‘(e) Each advertisement to which this section applies
that relates to a consumer credit transaction that is secured
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by the principal dwelling of a consumer in which the exten-
sion of credit may exceed the fair market value of the dwell-
ing, and which advertisement is disseminated in paper
form to the public or through the Internet, as opposed to
by radio or television, shall clearly and conspicuously state
that—
‘‘(1) the interest on the portion of the credit ex-
tension that is greater than the fair market value of
the dwelling is not tax deductible for Federal income
tax purposes; and
‘‘(2) the consumer should consult a tax adviser
for further information regarding the deductibility of
interest and charges.’’.
(c) REGULATORY IMPLEMENTATION.—
(1) IN GENERAL.—The Board shall promulgate
regulations implementing the amendments made by
this section.
(2) EFFECTIVE DATE.—Regulations issued under
paragraph (1) shall not take effect until the later of—
(A) 12 months after the date of enactment
of this Act; or
(B) 12 months after the date of publication
of such final regulations by the Board.
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SEC. 1303. DISCLOSURES RELATED TO ‘‘INTRODUCTORY
RATES’’.
(a) INTRODUCTORY
RATE
DISCLOSURES.—Section
127(c) of the Truth in Lending Act (15 U.S.C. 1637(c)) is
amended by adding at the end the following:
‘‘(6) ADDITIONAL NOTICE CONCERNING ‘INTRO-
DUCTORY RATES’.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), an application or solicitation
to open a credit card account and all pro-
motional materials accompanying such applica-
tion or solicitation for which a disclosure is re-
quired under paragraph (1), and that offers a
temporary annual percentage rate of interest,
shall—
‘‘(i) use the term ‘introductory’ in im-
mediate proximity to each listing of the
temporary annual percentage rate applica-
ble to such account, which term shall ap-
pear clearly and conspicuously;
‘‘(ii) if the annual percentage rate of
interest that will apply after the end of the
temporary rate period will be a fixed rate,
state in a clear and conspicuous manner in
a prominent location closely proximate to
the first listing of the temporary annual
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percentage rate (other than a listing of the
temporary annual percentage rate in the
tabular format described in section 122(c)),
the time period in which the introductory
period will end and the annual percentage
rate that will apply after the end of the in-
troductory period; and
‘‘(iii) if the annual percentage rate
that will apply after the end of the tem-
porary rate period will vary in accordance
with an index, state in a clear and con-
spicuous manner in a prominent location
closely proximate to the first listing of the
temporary annual percentage rate (other
than a listing in the tabular format pre-
scribed by section 122(c)), the time period
in which the introductory period will end
and the rate that will apply after that,
based on an annual percentage rate that
was in effect within 60 days before the date
of mailing the application or solicitation.
‘‘(B) EXCEPTION.—Clauses (ii) and (iii) of
subparagraph (A) do not apply with respect to
any listing of a temporary annual percentage
rate on an envelope or other enclosure in which
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an application or solicitation to open a credit
card account is mailed.
‘‘(C) 
CONDITIONS
FOR
INTRODUCTORY
RATES.—An application or solicitation to open a
credit card account for which a disclosure is re-
quired under paragraph (1), and that offers a
temporary annual percentage rate of interest
shall, if that rate of interest is revocable under
any circumstance or upon any event, clearly and
conspicuously disclose, in a prominent manner
on or with such application or solicitation—
‘‘(i) a general description of the cir-
cumstances that may result in the revoca-
tion of the temporary annual percentage
rate; and
‘‘(ii) if the annual percentage rate that
will apply upon the revocation of the tem-
porary annual percentage rate—
‘‘(I) will be a fixed rate, the an-
nual percentage rate that will apply
upon the revocation of the temporary
annual percentage rate; or
‘‘(II) will vary in accordance with
an index, the rate that will apply after
the temporary rate, based on an an-
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nual percentage rate that was in effect
within 60 days before the date of mail-
ing the application or solicitation.
‘‘(D) DEFINITIONS.—In this paragraph—
‘‘(i) the terms ‘temporary annual per-
centage rate of interest’ and ‘temporary an-
nual percentage rate’ mean any rate of in-
terest applicable to a credit card account for
an introductory period of less than 1 year,
if that rate is less than an annual percent-
age rate that was in effect within 60 days
before the date of mailing the application or
solicitation; and
‘‘(ii) the term ‘introductory period’
means the maximum time period for which
the temporary annual percentage rate may
be applicable.
‘‘(E) RELATION TO OTHER DISCLOSURE RE-
QUIREMENTS.—Nothing in this paragraph may
be construed to supersede subsection (a) of sec-
tion 122, or any disclosure required by para-
graph (1) or any other provision of this sub-
section.’’.
(b) REGULATORY IMPLEMENTATION.—
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(1) IN GENERAL.—The Board shall promulgate
regulations implementing the requirements of section
127(c)(6) of the Truth in Lending Act, as added by
this section.
(2) EFFECTIVE DATE.—Section 127(c)(6) of the
Truth in Lending Act, as added by this section, and
regulations issued under paragraph (1) of this sub-
section shall not take effect until the later of—
(A) 12 months after the date of enactment
of this Act; or
(B) 12 months after the date of publication
of such final regulations by the Board.
SEC. 1304. INTERNET-BASED CREDIT CARD SOLICITATIONS.
(a) INTERNET-BASED APPLICATIONS AND SOLICITA-
TIONS.—Section 127(c) of the Truth in Lending Act (15
U.S.C. 1637(c)) is amended by adding at the end the fol-
lowing:
‘‘(7) INTERNET-BASED
APPLICATIONS
AND
SO-
LICITATIONS.—
‘‘(A) IN GENERAL.—In any solicitation to
open a credit card account for any person under
an open end consumer credit plan using the
Internet or other interactive computer service,
the person making the solicitation shall clearly
and conspicuously disclose—
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‘‘(i) the information described in sub-
paragraphs (A) and (B) of paragraph (1);
and
‘‘(ii) the information described in
paragraph (6).
‘‘(B) FORM OF DISCLOSURE.—The disclo-
sures required by subparagraph (A) shall be—
‘‘(i) readily accessible to consumers in
close proximity to the solicitation to open a
credit card account; and
‘‘(ii) updated regularly to reflect the
current policies, terms, and fee amounts ap-
plicable to the credit card account.
‘‘(C) DEFINITIONS.—For purposes of this
paragraph—
‘‘(i) the term ‘Internet’ means the
international computer network of both
Federal 
and 
non-Federal 
interoperable
packet switched data networks; and
‘‘(ii) the term ‘interactive computer
service’ means any information service, sys-
tem, or access software provider that pro-
vides or enables computer access by multiple
users to a computer server, including spe-
cifically a service or system that provides
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access to the Internet and such systems op-
erated or services offered by libraries or edu-
cational institutions.’’.
(b) REGULATORY IMPLEMENTATION.—
(1) IN GENERAL.—The Board shall promulgate
regulations implementing the requirements of section
127(c)(7) of the Truth in Lending Act, as added by
this section.
(2) EFFECTIVE DATE.—The amendment made by
subsection (a) and the regulations issued under para-
graph (1) of this subsection shall not take effect until
the later of—
(A) 12 months after the date of enactment
of this Act; or
(B) 12 months after the date of publication
of such final regulations by the Board.
SEC. 1305. DISCLOSURES RELATED TO LATE PAYMENT
DEADLINES AND PENALTIES.
(a) DISCLOSURES RELATED TO LATE PAYMENT DEAD-
LINES AND PENALTIES.—Section 127(b) of the Truth in
Lending Act (15 U.S.C. 1637(b)) is amended by adding at
the end the following:
‘‘(12) If a late payment fee is to be imposed due
to the failure of the obligor to make payment on or
before a required payment due date, the following