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‘‘(C) has become effective in accordance
with the contract’s terms; and
‘‘(D) is not enjoined under section
123(e)(2)(B) of title I of this Act;’’;
(e) by adding new subsection (12)—
‘‘(12) ‘cross-guarantee obligation’ means an ob-
ligation of a direct guarantor arising out of a cross-
guarantee or stop-loss contract, and includes the ob-
ligations of such guarantor under section 125(c)(2)
of title I of this Act and sections 321 and 355 of
this title;’’;
(f) by adding new subsection (13)—
‘‘(13) 
‘cross-guarantee 
premium 
payment’
means the payment a guaranteed company periodi-
cally makes to the guaranteed company’s direct
guarantors under the terms of a cross-guarantee
contract;’’;
(g) by adding new subsection (14)—
‘‘(14) ‘cross-guarantee syndicate’ means any
group of direct guarantors which has entered into a
cross-guarantee contract with one or more guaran-
teed companies;’’;
(h) by redesignating subsections (11), (12), and
(13) as subsections (15), (16), and (17);
(i) by adding new subsection (18)—
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‘‘(18) ‘depository institution’ has the meaning
given to such term in section 3(c)(1) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(c)(1)), how-
ever, for the purposes of this title, depository institu-
tion shall not mean a Federal branch or an insured
branch as those terms are defined in sections (3)(r)
and (3)(s) of the Federal Deposit Insurance Act (12
U.S.C. 1813 (r) and (s));’’;
(j) by adding new subsection (19)—
‘‘(19) ‘direct guarantor’ means a member of a
cross-guarantee or stop-loss syndicate which has en-
tered into a cross-guarantee or stop-loss contract
with a guaranteed party;’’;
(k) by redesignating subsections (14)–(21A) as
subsections (20)–(28) and by redesignating sub-
sections (22)–(27) as subsections (30)–(35);
(l) by adding new subsection (36)—
‘‘(36) ‘guaranteed company’ means any com-
pany which has entered into a cross-guarantee con-
tract with a cross-guarantee syndicate and has guar-
anteed obligations outstanding as of the date of the
filing of the petition;’’;
(m) by adding new subsection (37)—
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‘‘(37) ‘guaranteed creditor’ means any entity
who owns or is the beneficiary of a guaranteed obli-
gation;’’;
(n) by adding new subsection (38)—
‘‘(38) ‘guaranteed obligation’ means an obliga-
tion of a guaranteed party of which a cross-guaran-
tee or stop-loss syndicate has guaranteed perform-
ance, including the timely payment of principal and
interest, if a failure to perform in a timely manner
constitutes a breach of contract;’’;
(o) by adding new subsection (39)—
‘‘(39) ‘guaranteed party’ means any guaranteed
company or nondepository guarantor;’’;
(p) by redesignating subsections (28)–(35) as
subsections (40)–(47) and subsections (36)–(38) as
subsections (49)–(51);
(q) by adding new subsection (53)—
‘‘(53) ‘monitoring fee payment’ means the peri-
odic payment made by a guaranteed party to a syn-
dicate agent under the terms of the guaranteed par-
ty’s cross-guarantee or stop-loss contract;’’;
(r) by adding new subsection (55)—
‘‘(55) ‘nondepository guarantor’ means any per-
son or company which has entered into a stop-loss
contract with a stop-loss syndicate;’’;
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(s) by redesignating subsection (39) as sub-
section (68);
(t) by redesignating subsection (40) as sub-
section (54);
(u) by redesignating subsections (41)–(44) as
subsections (56)–(59);
(v) by adding new subsection (60)—
‘‘(60) ‘regulation corporation’ means the Cross-
Guarantee Regulation Corporation;’’;
(w) by redesignating subsections (45)–(51) as
subsections (61)–(67);
(x) by redesignating subsections (52) and (53)
as subsections (69) and (70), subsection (54) as
subsection (79) and subsection (54) 1 as subsection
‘‘(71)’’;
(y) by adding new subsection (72)—
‘‘(72) ‘stop-loss contract’ means a contract
which—
‘‘(A) is entered into between a person or a
company and a stop-loss syndicate;
‘‘(B) is approved by the regulation cor-
poration under section 123 of title I of this Act;
‘‘(C) has become effective in accordance
with the contract’s terms; and
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‘‘(D) 
is 
not 
enjoined 
under 
section
123(e)(2)(B) of title I of this Act;’’;
(z) by adding new subsection (73)—
‘‘(73) ‘stop-loss premium payment’ means the
payment a nondepository guarantor periodically
makes to direct guarantors under the nondepository
guarantor’s stop-loss contract;’’;
(aa) by adding new subsection (74)—
‘‘(74) ‘stop-loss syndicate’ means any group of
direct guarantors which has entered into a stop-loss
contract with a nondepository guarantor;’’;
(bb) by adding new subsection (77)—
‘‘(77) ‘syndicate agent’ means any person or
company who acts as the agent for the direct guar-
antors under any cross-guarantee or stop-loss con-
tract;’’ ; and
(cc) by redesignating subsection (55) as sub-
section (80), subsection (55) 1 as subsection (75),
subsection (56) as subsection (48), subsection (56) 1
as subsection (76), subsection (57) as subsection
(52), and subsection (57) 1 as subsection (78).
SEC. 302. APPLICABILITY OF CHAPTERS.
Section 103 of title 11, United States Code, is
amended—
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(a) in subsection (a) by striking ‘‘section 1161’’
and adding ‘‘sections 1161 and 1181’’;
(b) by adding new subsection (h)—
‘‘(h) Subchapter V of chapter 11 of this title applies
only in a case under such chapter in which a guaranteed
company is the debtor’’; and
(c) by redesignating subsections (h) and (i) as
(i) and (j).
SEC. 303. PUBLIC ACCESS TO PAPERS.
Section 107 of title 11, United States Code, is
amended—
(a) in subsection (a) by striking ‘‘subsection
(b)’’ and inserting ‘‘subsections (b) and (c)’’; and
(b) by adding new subsection (c)—
‘‘(c) Notwithstanding subsection (a) of this section,
the identity of a guaranteed creditor and the amount of
a guaranteed creditor’s claim in a case under subchapter
V of chapter 11 is not a matter of public record and shall
be kept confidential.’’.
SEC. 304. WHO MAY BE A DEBTOR.
Section 109 of title 11, United States Code, is
amended—
(a) in subsection (b)(2) by striking ‘‘or’’ from
the end of the subsection;
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(b) in subsection (b)(3) by striking ‘‘.’’ and
adding ‘‘; or’’ at the end of the subsection;
(c) by adding new paragraph (b)(4)—
‘‘(4) a guaranteed company.’’;
(d) in subsection (d) by striking ‘‘and a rail-
road’’ and inserting ‘‘a railroad, and a guaranteed
company’’;
(e) by adding new subsection (h)—
‘‘(h) A company must be a debtor under subchapter
V of chapter 11 if—
‘‘(1) the company is a guaranteed company; or
‘‘(2) the company would be a guaranteed com-
pany but for the requirement that the company has
guaranteed obligations outstanding as of the date of
the filing of the petition and after the date of the
filing of the petition, the company incurs guaranteed
obligations’’; and
(f) by adding new subsection (i)—
‘‘(i) Once a guaranteed company has become a debtor
under subchapter V of chapter 11, it is not eligible for
relief under any other subchapter of chapter 11 or under
any other chapter in this title.’’
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Subtitle B—Amendments to Chapter 3 of
Title 11
SEC. 311. PARTY IN INTEREST.
Title 11, United States Code, is amended by adding
new section 308—
‘‘§ 308. Party in Interest
‘‘(a) The regulation corporation shall be a party in
interest in any action seeking to impair or limit the obliga-
tions or duties of the debtor or of a direct guarantor under
a cross-guarantee or stop-loss contract.
‘‘(b) A cross-guarantee or stop-loss syndicate shall be
a party in interest for the purpose of filing objections to
the allowance of a claim or interest as provided under sec-
tion 502(a) of this title.
‘‘(c) A cross-guarantee or stop-loss syndicate shall be
a party in interest in any determination of whether a claim
is a guaranteed obligation under a cross-guarantee or
stop-loss contract in a case under subchapter V of chapter
11 of this title.’’.
SEC. 312. QUALIFICATION OF TRUSTEE.
Section 322 of title 11, United States Code, is
amended—
(a) in subsection (a) by inserting ‘‘1183,’’ after
‘‘1163,’’; and
(b) by adding new paragraph (b)(3)—
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‘‘(3) In a case under subchapter V of chapter
11, the United States trustee shall consult with the
syndicate agent monitoring the debtor as of the date
of the filing of the petition and shall consider any
existing bonds covering the guaranteed company
when determining the amount of the bond required
to be filed under subsection (a) of this section.’’.
SEC. 313. NOTICE.
Section 342 of title 11, United States Code, is
amended by adding new subsection (c)—
‘‘(c) Notwithstanding subsection (a) of this section,
notice of the entry of an order for relief in a case under
subchapter V of chapter 11 shall be given by publication
and shall be given in writing to the syndicate agent and
to all creditors having claims that are not guaranteed obli-
gations. Notice to the syndicate agent shall constitute no-
tice to all guaranteed creditors in the case.’’.
SEC. 314. MONEY OF ESTATES.
Section 345 of title 11, United States Code, is
amended in subsection (b) by inserting after the third
usage of ‘‘United States’’ ‘‘or is guaranteed under a cross-
guarantee contract.’’.
SEC. 315. AUTOMATIC STAY.
Section 362 of title 11, United States Code, is
amended by adding new paragraph (b)(17)—
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‘‘(17) under subsection (a) of this section, of
the exercise of any right of a guaranteed creditor
under applicable nonbankruptcy law to collect, en-
force or recover a guaranteed obligation from the
debtor.’’.
SEC. 
316. 
EXECUTORY 
CONTRACTS 
AND 
UNEXPIRED
LEASES.
Section 365 of title 11, United States Code, is
amended—
(a) in subsection (a) by striking ‘‘and (d)’’ and
inserting ‘‘(d), and (q)’’;
(b) in paragraph (e)(1), by inserting ‘‘guaran-
teed obligation,’’ after the first usage of ‘‘contract’’;
by inserting ’’, guaranteed obligation,’’ after the sec-
ond usage of ‘‘contract’’; by striking ‘‘or’’ after the
first usage of ‘‘terminated’’; by inserting ‘‘;’’ after
the first usage of ‘‘terminated’’; by inserting ‘‘or any
liability thereunder accelerated,’’ after the first
usage of ‘‘modified,’’; by striking ‘‘or’’ after ‘‘right’’;
by inserting ‘‘;’’ after ‘‘right’’; by inserting ‘‘, or li-
ability’’ after ‘‘obligation’’; by inserting ‘‘, guaran-
teed obligation,’’ after the third usage of ‘‘contract’’;
by striking ‘‘or’’ after the second usage of ‘‘termi-
nated’’; by inserting ‘‘;’’ after the second usage of
‘‘terminated’’; by inserting ‘‘or accelerated’’ after the
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second usage of ‘‘modified,’’; and by inserting ‘‘,
guaranteed obligation,’’ after the fourth usage of
‘‘contract’’;
(c) in subparagraph (e)(2)(B), by striking
‘‘such contract is a’’ and inserting ‘‘such contract is
not a guaranteed obligation but is some other’’;
(d) by adding a new subsection (q)—
‘‘(q) Notwithstanding subsection (c)(2) of this sec-
tion, the trustee shall be deemed to have assumed as of
the date of filing of the petition all cross-guarantee and
stop-loss contracts to which the debtor is a party. The
trustee shall immediately pay all cross-guarantee premium
payments, stop-loss premium payments, and monitoring
fee payments due under any cross-guarantee or stop-loss
contract so assumed. Any claim for a subsequent breach
of the obligations under such contracts shall be entitled
to priority under section 507(a)(1). The trustee shall not
reject any cross-guarantee or stop-loss contract.’’; and
(e) in paragraph (f)(1) by inserting after ‘‘Ex-
cept as provided in subsection (c) of this section’’
the following to complete the clause, ‘‘and excluding
those executory contracts described in subsection
(q)’’.
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Subtitle C—Amendments to Chapter 5 of
Title 11
SEC. 321. OBLIGATIONS OF DIRECT GUARANTORS.
Title 11, United States Code, is amended by adding
a new section 511—
§ 511. Obligations of Direct Guarantors
‘‘The direct guarantors of a debtor shall pay to the
trustee the amount by which losses accrued by the estate
as a direct guarantor since the date the petition was filed
exceed the cross-guarantee and stop-loss premiums the es-
tate has accrued since that date. Such payment shall be
received by the trustee on the effective date of a plan con-
firmed under section 1129 of this title or, in the case of
a liquidation under section 1187 of this title, at the time
of the transfer to an unrelated party or the termination
of all of the estate’s guaranteed obligations. The claim re-
sulting from the amount paid by the direct guarantors in
accordance with this subsection shall be subordinated to
all other claims in the case for the purpose of distribution
under this title.’’.
SEC. 322. DEBTOR’S DUTIES.
Section 521 of title 11, United States Code, is
amended—
(a) in paragraph (1) by inserting ‘‘(a)’’ at the
beginning of the paragraph; and
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(b) by adding new subparagraph (1)(b)—
‘‘(b) in a case under subchapter V of chapter 11 and
subject to the requirement of subsection 107(c) of this
title, file under seal the list of guaranteed creditors and
the amount of the claims of the guaranteed creditors.’’.
SEC. 323. EXCEPTIONS TO DISCHARGE.
Section 523 of title 11, United States Code, is
amended by adding new paragraph (a)(13)—
‘‘(13) which arises as a result of the debtor’s
cross-guarantee obligations.’’.
SEC. 324. LIMITATION ON AVOIDING POWERS.
Section 546 of title 11, United States Code, is
amended by adding new subsection (h)—
‘‘(h) Notwithstanding sections 544, 545, 547 and
548(a)(2) of this title, the trustee may not avoid a transfer
that is a cross-guarantee premium payment, a stop-loss
premium payment, or a monitoring fee payment made be-
fore the commencement of the case, except under section
548(a)(1) of this title.’’.
SEC. 325. PREFERENCES.
Section 547 of title 11, United States Code, is
amended by adding new subsection (h)—
‘‘(h) For the purposes of this section, a payment of
a guaranteed obligation is deemed to be a payment of a
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debt incurred by the debtor in the ordinary course of busi-
ness or financial affairs of the debtor and the transferee.’’.
SEC. 326. FRAUDULENT TRANSFERS AND OBLIGATIONS.
Section 548 of title 11, United States Code, is
amended in paragraph (d)(2) by adding new subparagraph
(E)—
‘‘(E) A cross-guarantee syndicate or a syndicate
agent that receives a cross-guarantee premium
payment, a stop-loss premium payment, or a
monitoring fee payment takes for value to the
extent of such payment.’’.
SEC. 327. POST-PETITION TRANSACTIONS.
Section 549 of title 11, United States Code, is
amended—
(a) in subsection (a) by striking ‘‘subsections
(b) or (c)’’ and by inserting ‘‘subsections (b), (c), or
(d)’’;
(b) by adding new subsection (d)—
‘‘(d) The trustee may not avoid under subsection (a)
of this section a transfer of property to a transferee whose
claim, in the absence of such transfer, would be guaran-
teed under a cross-guarantee or stop-loss contract.’’; and
(c) by redesignating subsection (d) as sub-
section (e).
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SEC. 328. CONTRACTUAL RIGHT TO LIQUIDATE A SECURI-
TIES CONTRACT.
Section 555 of title 11, United States Code, is
amended—
(a) by inserting ‘‘(a)’’ at the beginning of the
section; and
(b) by adding new subsection (b)—
‘‘(b) Subsection (a) of this section shall not apply in
any case under subchapter V of chapter 11.’’.
SEC. 329. CONTRACTUAL RIGHT TO LIQUIDATE A COMMOD-
ITIES CONTRACT OR FORWARD CONTRACT.
Section 556 of title 11, United States Code, is
amended—
(a) by inserting ‘‘(a)’’ at the beginning of the
section; and
(b) by adding new subsection (b)—
‘‘(b) Subsection (a) of this section shall not apply in
any case under subchapter V of chapter 11.’’.
SEC. 330. CONTRACTUAL RIGHT TO LIQUIDATE A REPUR-
CHASE AGREEMENT.
Section 559 of title 11, United States Code, is
amended—
(a) by inserting ‘‘(a)’’ at the beginning of the
section; and
(b) by adding new subsection (b)—
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‘‘(b) Subsection (a) of this section shall not apply in
any case under subchapter V of chapter 11.’’.
SEC. 331. CONTRACTUAL RIGHT TO TERMINATE A SWAP
AGREEMENT.
Section 560 of title 11, United States Code, is
amended—
(a) by inserting ‘‘(a)’’ at the beginning of the
section; and
(b) by adding new subsection (b)—
‘‘(b) Subsection (a) of this section shall not apply in
any case under subchapter V of chapter 11.’’.
Subtitle D—Amendments to Chapter 11 of
Title 11
CHAPTER 1—AMENDMENTS TO EXISTING LAW
SEC. 341. CREDITORS’ AND EQUITY SECURITY HOLDERS’
COMMITTEES.
Section 1102 of title 11, United States Code, is
amended in paragraph (a)(1) by inserting at the end ‘‘,
provided, however, that only creditors holding claims that
are not guaranteed obligations under a cross-guarantee or
stop-loss contract and are not direct guarantors may be
appointed to such committee in a case under subchapter
V of chapter 11’’.
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SEC. 342. WHO MAY FILE A PLAN.
Section 1121 of title 11, United States Code, is
amended—
(a) by adding new subsection (d)—
‘‘(d) Notwithstanding subsection (c) of this section,
a guaranteed creditor may not file a plan in a case under
subchapter V of chapter 11’’; and
(b) by redesignating subsection (d) as sub-
section (e).
SEC. 343. IMPAIRMENT OF CLAIMS OR INTERESTS.
Section 1124 of title 11, United States Code, is
amended—
(a) by inserting ‘‘(a)’’ at the beginning of the
section; and
(b) by adding new subsection (b)—
‘‘(b) Notwithstanding subsection (a) of this section,
the claim of a guaranteed creditor is deemed to be
unimpaired in a case under subchapter V of chapter 11.’’.
SEC. 344. ACCEPTANCE OF PLAN.
Section 1126 of title 11, United States Code, is
amended in subsection (a) by inserting at the end of the
first sentence ‘‘, provided, however, that a guaranteed
creditor is not entitled to accept or reject a plan in a case
under subchapter V of chapter 11’’.
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SEC. 345. CONFIRMATION HEARING.
Section 1128 of title 11, United States Code, is
amended in subsection (b) by inserting after ‘‘A party in
interest’’ ‘‘, other than a guaranteed creditor in a case
under subchapter V of chapter 11,’’.
SEC. 346. CONFIRMATION OF PLAN.
Section 1129 of title 11, United States Code, is
amended—
(a) in paragraph (a)(4), by inserting at the end
‘‘, provided, however, that no such approval of any
payment by a cross-guarantee or stop-loss syndicate
is required when the cross-guarantee or stop-loss
syndicate is the proponent of the plan and the pay-
ment is made pursuant to a cross-guarantee or stop-
loss contract’’; and
(b) by adding new subsection (e)—
‘‘(e) Notwithstanding subsections (a) and (b) of this
section, the court may confirm a plan that otherwise meets
the requirements of subsection (a) and (b) of this section
even though, in a case under subchapter V of chapter 11,
a guaranteed creditor receives or retains no property
under the plan.’’.
SEC. 347. EFFECT OF CONFIRMATION.
Section 1141 of title 11, United States Code, is
amended—
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(a) in subsection (a) by striking ‘‘(d)(2) and
(d)(3)’’ and by inserting ‘‘(d)(2), (d)(3), (d)(4), and
(d)(5)’’;
(b) by inserting new paragraph (d)(4)—
‘‘(4) Except as provided in subsection 365(k) of
this title, the confirmation of a plan does not dis-
charge a guaranteed company that is a debtor under
subchapter V of chapter 11 of this title from any
debt arising out of a guaranteed obligation’’;
(c) by inserting new paragraph (d)(5)—
‘‘(5) Except as provided in section 365(k) of
this title, the confirmation of a plan does not dis-
charge a debtor of its obligations and liabilities as
a direct guarantor under a cross-guarantee or stop-
loss contract’’; and
(d) by redesignating paragraph (d)(4) as (d)(6).
CHAPTER 2—ENACTMENT OF SUBCHAPTER V
SEC. 351. GUARANTEED COMPANY REORGANIZATION.
Title 11, United States Code, is amended by adding
a new subchapter V—
‘‘Subchapter V—Guaranteed Company
Reorganization’’.
SEC. 352. INAPPLICABILITY OF OTHER SECTIONS.
Title 11, United States Code, is amended by adding
new section 1181—
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‘‘§ 1181. Inapplicability of other sections
‘‘Sections 341, 343, 1104, 1105, and 1107 do not
apply in a case under subchapter V of Chapter 11.’’.
SEC. 353. EFFECTIVE DATE OF FILING.
Title 11, United States Code, is amended by adding
new section 1182—
§ 1182. Effective date of filing
‘‘The effective date and time of the filing of a petition
under this subchapter shall be the close of business on
the business day preceding the date on which the petition
is actually filed.’’.
SEC. 354. APPOINTMENT OF TRUSTEE.
Title 11, United States Code, is amended by adding
new section 1183—
‘‘§ 1183. Appointment of trustee
‘‘As soon as practicable after the entry of an order
for relief, the regulation corporation shall submit to the
United States Trustee a list of five disinterested persons
who are qualified and willing to serve as the trustee in
the case. The United States Trustee shall appoint one
such person to serve as the trustee in the case. Neither
the syndicate agent monitoring the debtor as of the date
of the filing of the petition nor a governmental unit or
the employee of a governmental unit shall be eligible to
serve as the trustee.’’.
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SEC. 355. LIABILITY OF DIRECT GUARANTORS FOR TRANS-
FERS TO GUARANTEED CREDITORS.
Title 11, United States Code, is amended by adding
new section 1184—
‘‘§ 1184. Liability of direct guarantors for transfers to
guaranteed creditors
‘‘The trustee may recover for the benefit of all guar-
anteed creditors from the direct guarantors of the debtor
the amount of any transfers of property of the estate to
or for the benefit of guaranteed creditors that enable such
creditors to receive more than such creditors would receive
if the trustee was engaged in a liquidation pursuant to
section 1187 of this chapter and such transfers had not
been made.’’.
SEC. 356. REPLACEMENT OR MODIFICATION OF CROSS-
GUARANTEE CONTRACT.
Title 11, United States Code, is amended by adding
new section 1185—
‘‘§ 1185. Replacement or modification of cross-guaran-
tee contract
‘‘Prior to the debtor filing any application with the
resolution corporation for approval of any replacement
cross-guarantee contract or for the approval of any modi-
fication of the debtor’s existing cross-guarantee contract,
the debtor must obtain the approval of the court to enter
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into such replacement contract or to modify such existing
contract.’’.
SEC. 357. EFFECT OF FEDERAL, STATE, AND LOCAL LEGIS-
LATION AND REGULATIONS.
Title 11, United States Code, is amended by adding
new section 1186—
‘‘§ 1186. Effect of Federal, State, and local legislation
and regulations
‘‘(a) Except with respect to merger, modification of
the financial structure of the debtor, or the issuance or
sale of securities under a plan, the trustee and the debtor
are subject to all Federal, State, and local legislation, reg-
ulations and orders to the same extent as the debtor would
be if a petition commencing the case under this chapter
had not been filed.
‘‘(b) Notwithstanding subsection (a) of this section,
neither Federal receivership law, State receivership law,
nor any laws prohibiting the enforcement of an agreement
that is not contained in the records of a debtor under this
subchapter, including sections 212(a) and 217(4) of the
Financial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 (12 U.S.C. 1821(d)(9)(A) and 1823(e)),
shall be applicable.
‘‘(c) Notwithstanding any State or Federal law, de-
positors in a guaranteed company that is a debtor under
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this subsection shall not receive any preference in distribu-
tion under this title over other creditors.’’.
SEC. 358. LIQUIDATION.
Title 11, United States Code, is amended by adding
new section 1187—
‘‘§ 1187. Liquidation
‘‘On request of a party in interest and after notice
and a hearing, the court may order the trustee to cease
the debtor’s operation and to collect and reduce to money
all of the property of the estate in the same manner as
if the case were a case under chapter 7 of this title if
such liquidation is in the best interest of creditors’’.
TITLE IV—AMENDMENTS TO TITLE 28,
UNITED STATES CODE
SEC. 401. VENUE.
Title 28, United States Code, is amended by adding
new subsection 1409(f)—
‘‘(f) A proceeding arising in or related to a case under
subchapter V of chapter 11 of title 11 regarding the debt-
or’s satisfaction of a guaranteed obligation, whether aris-
ing before or after the commencement of the case, may
be commenced in the district court for the district where
the State or Federal court sits in which the party com-
mencing such proceeding may, under applicable non-bank-
ruptcy venue provisions, have brought an action on such
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claim, or in the district court in which such case is pend-
ing. The cross-guarantee syndicate which has entered into
a cross-guarantee contract in such a case shall be a party
in interest in any proceeding commenced under this sub-
section.’’.
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