Bankruptcy Reform Act of 1994
PL 103-394 (H.R.5116), enacted 10/22/1994

108 STAT. 4106 
PUBLIC LAW 103-394—OCT. 22, 1994 
Public Law 103-394 
103d Congress 
An Act 
To amend title 11 of the United States Code. 
Oct. 22, 1994 
[H.R. 5116] 
Be it enacted by the Senate and House of Representatives of 
Bankruptcy 
the United States of America in Congress assembled, 
Reform 
Act of 1994. 
SECTION 1. SHORT TITLE. 
note 
(^) SHORT TITLE.—This Act may be cited as the "Bankruptcy 
Reform Act of 1994". 
(b) TABLE OF CONTENTS.—The table of contents is as follows: 
Sec. 1. Short title. 
TITLE I—IMPROVED BANKRUPTCY ADMINISTRATION 
Sec. 101. Expedited hearing on automatic stay. 
Sec. 102. Jurisdiction to review interlocutory orders increasing or reducing certain 
time periods for filing plan. 
Sec. 103. Expedited procedure for reaffirmation of debts. 
Sec. 104. Powers of bankruptcy courts. 
Sec. 105. Participation by bankruptcy administrator at meetings of creditors and 
equity security holders. 
Sec. 106. Definition relating to eligibility to serve on chapter 11 committees. 
Sec. 107. Increased incentive compensation for trustees. 
Sec. 108. Dollar adjustments. 
Sec. 109. Premerger notification. 
Sec. 110. Allowance of creditor committee expenses. 
Sec. 111. Supplemental injunctions. 
Sec. 112. Authority of bankruptcy judges to conduct jury trials in civil proceedings. 
Sec. 113. Sovereign immunity. 
Sec. 114. Service of process in bankruptcy proceedings on an insured depository 
institution. 
Sec. 115. Meetings of creditors and equity secmity holders. 
Sec. 116. Tax assessment. 
Sec. 117. Additional trustee compensation. 
TITLE II—COMMERCIAL BANKRUPTCY ISSUES 
Sec. 201. Aircraft equipment and vessels; rolling stock equipment. 
Sec. 202. Limitation on liability of non-insider transferee for avoided transfer. 
Sec. 203. Perfection of purchase-money security interest. 
Sec. 204. Continued perfection. 
Sec. 205. Rejection of unexpired leases of real property or timeshare interests. 
Sec. 206. Contents of plan. 
Sec. 207. Priority for independent sales representatives. 
Sec. 208. Exclusion from the estate of interests in liquid and gaseous hydrocarbons 
transferred by the debtor pursuant to production pajmtient agreements. 
Sec. 209. Seller's right to reclaim goods. 
Sec. 210. Investment of money of the estate. 
Sec. 211. Election of trustee under chapter 11. 
Sec. 212. Rights of partnership trustee against general partners. 
Sec. 213. Impairment of claims and interests. 
Sec. 214. Protection of security interest in post-petition rents and lodging pay-
ments. 
Sec. 215. Amendment to definition of swap agreement. 
Sec. 216. Limitation on avoiding powers. 
Sec. 217. Small businesses. 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4107 
Sec. 218. Single asset real estate. 
Sec. 219. Leases of personal properly. 
Sec. 220. Ebcemption for small business investment companies. 
Sec. 221. Pajrment of taxes with borrowed funds. 
Sec. 222. Ret\im of goods. 
Sec. 223. Proceeds of money order agreements. 
Sec. 224. Trustee duties; professional fees. 
Sec. 225. Notices to creditors. 
TITLE III—CONSUMER BANKRUPTCY ISSUES 
Sec. 301. Period for curing default relating to principal residence. 
Sec. 302. Nondischargeability of fine under chapter 13. 
Sec. 303. Impairment of exemptions. 
Sec. 304. Protection of child support and alimony. 
Sec. 305. Interest on interest. 
Sec. 306. Exception to discharge. 
Sec. 307. Payments under chapter 13. 
Sec. 308. Bankruptcy petition preparers. 
Sec. 309. Fairness to condominium and cooperative owners. 
Sec. 310. Nonavoidability of fixing of lien on tools and implements of trade, ani-
mals, and crops. 
Sec. 311. Conversion of case under chapter 13. 
Sec. 312. Bankruptcy fraud. 
Sec. 313. Protection against discriminatory treatment of applications for student 
loEois. 
TITLE IV—GOVERNMENTAL BANKRUPTCY ISSUES 
Sec. 401. Exception from automatic stay for post-petition property taxes. 
Sec. 402. Municipal bankruptcy. 
TITLE V—TECHNICAL CORRECTIONS 
Sec. 501. Amendments to bankruptcy definitions, necessitated by enactment of 
Public Law 101-647. 
Sec. 502. Title 28 of the United States Code. 
TITLE VI—BANKRUPTCY REVIEW COMMISSION 
Sec. 601. Short title. 
Sec. 602. Establishment. 
Sec. 603. Duties of the Commission. 
Sec. 604. Membership. 
Sec. 605. Compensation of the Commission. 
Sec. 606. Stan of Commission; experts and consultants. 
Sec. 607. Powers of the Commission. 
Sec. 608. Report. 
Sec. 609. Termination. 
Sec. 610. Authorization of appropriations. 
TITLE VII—SEVERABILITY; EFFECTIVE DATE; APPLICATION OF 
AMENDMENTS. 
Sec. 701. Severability. 
Sec. 702. Effective date; application of amendments. 
TITLE I—IMPROVED BANKRUPTCY 
ADMINISTRATION 
SEC. 101. EXPEDITED HEARING ON AUTOMATIC STAY. 
The last sentence of section 362(e) of title 11, United States 
Code, is amended— 
(1) by striking "commenced" and inserting "concluded", and 
(2) by inserting before the period at the end the following: 
", imless the 30-day period is extended with the consent of the 
parties in interest or for a specific time which the court finds 
is required by compeUing circumstances". 
108 STAT. 4108 
PUBLIC LAW 103-394—OCT. 22, 1994 
SEC. 102. JURISDICTION 
TO 
REVIEW 
INTERLOCUTORY 
ORDERS 
INCREASING OR REDUCING CERTAIN TIME PERIODS FOR 
FILING PLAN. 
Section 158(a) of title 28, United States Code, is amended 
by striking "from" the first place it appears and all that follows 
through "decrees,", and inserting the following: 
"(1) from final judgments, orders, and decrees; 
"(2) from interlocutory orders and decrees issued under 
section 1121(d) of title 11 increasing or reducing the time 
periods referred to in section 1121 of such title; and 
"(3) with leave of the court, from other interlocutory orders 
and decrees;". 
SEC. 103. EXPEDITED PROCEDURE FOR REAFFIRMATION OF DEBTS. 
(a) REAFFIRMATION.—Section 524(c) of title 11, United States 
Code, is amended— 
(1) in paragraph (2)— 
(A) by inserting "(A)" after "(2)", 
(B) by adding "and" at the end, and 
(C) by inserting after subparagraph (A), as so des-
ignated, the following: 
"(B) such agreement contains a clear and conspicuous 
statement which advises the debtor that such agreement 
is not required under this title, under nonbankruptcy law, 
or under any agreement not in accordance with the provi-
sions of this subsection;", and 
(2) in paragraph (3)— 
(A) in the matter preceding subparagraph (A) by strik-
ing "such agreement" the last place it appears, 
(B) in subparagraph (A)— 
(i) by inserting "such agreement" after "(A)", and 
(ii) by striking "and" at the end, 
(C) in subparagraph (B)— 
(i) by inserting "such agreement" after "(B)", and 
(ii) by adding "and" at the end, and 
(3) by adding at the end the following: 
"(C) the attorney fully advised the debtor of the legal 
effect and consequences o
f
— 
"(i) an agreement of the kind specified in this 
subsection; and 
"(ii) any default under such an agreement;". 
(b) EFFECT OF DISCHARGE.—The third sentence of section 524(d) 
of title 11, United States Code, is amended in the matter preceding 
paragraph (1) by inserting "and was not represented by an attorney 
during the course of negotiating such agreement" after "this 
section". 
SEC. 
1
0
4
. 
POWERS 
OF 
BANKRUPTCY 
COURTS. 
(a) STATUS CONFERENCES.—Section 105 of title 11, United 
States Code, is amended by adding at the end the following: 
"(d) The court, on its own motion or on the request of a party 
in interest, may— 
"(1) hold a status conference regarding any case or proceed-
ing under this title after notice to the parties in interest; 
and 
"(2) unless inconsistent with another provision of this title 
or with applicable Federal Rules of Bankruptcy Procedure, 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4109 
issue an order at any such conference prescribing such limita-
tions and conditions as the court deems appropriate to ensure 
that the case is handled expeditiously and economically, includ-
ing an order that— 
"(A) sets the date by which the trustee must assume 
or reject an executory contract or unexpired lease; or 
"(B) in a case under chapter 11 of this title— 
"(i) sets a date by which the debtor, or trustee 
if one has been appointed, shall file a disclosure state-
ment and plan; 
"(ii) sets a date by which the debtor, or trustee 
if one has been appointed, shall solicit acceptances 
of a plan; 
"(iii) sets the date by which a party in interest 
other than a debtor may file a plan; 
"(iv) sets a date by which a proponent of a plan, 
other than the debtor, shall solicit acceptances of such 
plan; 
"(v) fixes the scope and format of the notice to 
be provided regarding the hearing on approval of the 
disclosure statement; or 
"(vi) provides that the hearing on approval of the 
disclosure statement may be combined with the hear-
ing on confirmation of the plan.". 
(b) ABSTENTION.—Section 1334 of title 28, United States Code, 
is amended— 
(1) by redesignating subsection (d) as subsection (e), and 
(2) in the second sentence of subsection (c)(2)— 
(A) by inserting "(other than a decision not to abstain 
in a proceeding described in subsection (c)(2))" after "sub-
section", and 
(B) by striking "Any" and inserting the following: 
"(d) Any". 
(c) ESTABLISHMENT, OPERATION, AND TERMINATION OF BANK-
RUPTCY APPELLATE PANEL SERVICE.—Section 158(b) of title 28, 
United States Code, is amended— 
(1) by striking paragraphs (3) and (4), 
(2) by redesignating paragraph (2) as paragraph (4), 
(3) by striking paragraph (1) and inserting the following: 
"(1) The judicial council of a circuit shall establish a bankruptcy 
appellate panel service composed of bankruptcy judges of the dis-
tricts in the circuit who are appointed by the judicial council in 
accordance with paragraph (3), to hear and determine, with the 
consent of all the parties, appeals under subsection (a) unless 
the judicial council finds that— 
"(A) there are insufficient judicial resources available in 
the circuit; or 
"(B) establishment of such service would result in undue 
delay or increased cost to parties in cases under title 11. 
Not later than 90 days after making the finding, the judicial council 
Reports, 
shall submit to the Judicial Conference of the United States a 
report containing the factual basis of such finding. 
"(2)(A) A judicial council may reconsider, at any time, the 
finding described in paragraph (1). 
"(B) On the request of a majority of the district judges in 
a circuit for which a bankruptcy appellate panel service is estab-
lished under paragraph (1), made after the expiration of the 
108 STAT. 4110 
PUBLIC LAW 103-394—OCT. 22, 1994 
1-year period beginning on the date such service is established, 
the judicial council of the circuit shall determine whether a cir-
cumstance specified in subparagraph (A) or (B) of such paragraph 
exists. 
"(C) On its own motion, after the expiration of the 3-year 
period beginning on the date a bankruptcy appellate panel service 
is established under paragraph (1), the judicial council of the circuit 
may determine whether a circumstance specified in subparagraph 
(A) or (B) of such paragraph exists. 
"(D) If the judicial council finds that either of such cir-
cumstances exists, the judicial council may provide for the comple-
tion of the appeals then pending before such service and the orderly 
termination of such service. 
"(3) Bankruptcy judges appointed under paragraph (1) shall 
be appointed and may be reappointed under such paragraph.", 
and 
(4) by inserting after paragraph (4), as so redesignated, 
the following: 
"(5) An appeal to be heard under this subsection shall be 
heard by a panel of 3 members of the bankruptcy appellate panel 
service, except that a member of such service may not hear an 
appeal originating in the district for which such member is 
appointed or designated under section 152 of this title. 
"(6) Appeals may not be heard under this subsection by a 
panel of the bankruptcy appellate panel service unless the district 
judges for the district in which the appeals occur, by majority 
vote, have authorized such service to hear and determine appeals 
originating in such district.". 
(d) APPEALS TO BE HEARD BY BANKRUPTCY APPELLATE PANEL 
SERVICE.—Section 158 of title 28, United States Code, is amended— 
(1) in subsection (c) by striking "(c)" and inserting "(2)", 
and 
(2) by inserting after subsection (b) the following: 
"(c)(1) Subject to subsection (b), each appeal under subsection 
(a) shall be heard by a 3-judge panel of the bankruptcy appellate 
panel service established under subsection (b)(1) unless— 
"(A) the appellant elects at the time of filing the appeal; 
or 
"(B) any other party elects, not later than 30 days after 
service of notice of the appeal; 
to have such appeal heard by the district court.". 
(e) RULES OF PROCEDURE AND EVIDENCE; METHOD OF PRESCRIB-
ING.—Section 2073 of title 28, United States Code, is amended— 
(1) in subsection (a)(2) by striking "section 2072" and insert-
ing "sections 2072 and 2075", and 
(2) in subsections (d) and (e) by inserting "or 2075" after 
"2072" each place it appears. 
(f) 
EFFECTIVE 
DATE 
OF 
BANKRUPTCY 
RULES.—The 
third 
undesignated paragraph of section 2075 of title 28, United States 
Code, is amended to read as follows: 
"The Supreme Court shall transmit to Congress not later than 
May 1 of the year in which a rule prescribed under this section 
is to become effective a copy of the proposed rule. The rule shall 
take effect no earlier than December 1 of the year in which it 
is transmitted to Congress unless otherwise provided by law.". 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4111 
SEC. 105. PARTICIPATION 
BY BANKRUPTCY 
ADMINISTRATOR 
AT 
11 USC 341 
MEETINGS OF CREDITORS AND EQUITY SECURITY HOLD- 
note. 
ERS. 
(a) PRESIDING OFFICER.—^A bankruptcy administrator appointed 
under section 302(d)(3)(I) of the Bankruptcy Judges, United States 
Trustees, and Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 
581 note; Public Law 99-554; 100 Stat. 3123), as amended by 
section 317(a) of the Federal Courts Study Committee Implementa-
tion Act of 1990 (Public Law 101-650; 104 Stat. 5115), or the 
bankruptcy administrator's designee may preside at the meeting 
of creditors convened under section 341(a) of title 11, United States 
Code. The bankruptcy administrator or the bankruptcy administra-
tor's designee may preside at any meeting of equity security holders 
convened under section 341(b) of title 11, United States Code. 
(b) EXAMINATION OF THE DEBTOR.—^The bankruptcy adminis-
trator or the bankruptcy administrator's designee may examine 
the debtor at the meeting of creditors and may administer the 
oath required under section 343 of title 11, United States Code. 
SEC. 106. DEFINITION RELATING TO ELIGIBIUTY TO SERVE ON CHAP-
TER 11 COMMITTEES. 
Section 101(41) of title 11, United States Code, is amended 
to read as follows: 
"(41) 'person' includes individual, partnership, and corpora-
tion, but does not include governmental unit, except that a 
governmental imit that— 
"(A) acquires an asset from a person— 
"(i) as a result of the operation of a loan guarantee 
agreement; or 
"(ii) as receiver or liquidating agent of a person; 
"(B) is a guarantor of a pension benefit payable by 
or on behalf of the debtor or an affiliate of the debtor; 
or 
"(C) is the legal or beneficial owner of an asset of— 
"(i) an employee pension benefit plan that is a 
governmental plan, as defined in section 414(d) of the 
Internal Revenue Code of 1986; or 
"(ii) an eligible deferred compensation plan, as 
defined in section 457(b) of the Internal Revenue Code 
of 1986; 
shall be considered, for purposes of section 1102 of this title, 
to be a person with respect to such asset or such benefit;". 
SEC. 107. INCREASED INCENTIVE COMPENSATION FOR TRUSTEES. 
Section 326(a) of title 11, United States Code, is amended -
by striking "fifteen" and all that follows through "$3,000" the last 
place it appears, and inserting the following: 
"25 percent on the first $5,000 or less, 10 percent on any amount 
in excess of $5,000 but not in excess of $50,000, 5 percent on 
any amount in excess of $50,000 but not in excess of $1,000,000, 
and reasonable compensation not to exceed 3 percent of such moneys 
in excess of $1,000,000". 
SEC. 108. DOLLAR ADJUSTMENTS. 
(a) WHO MAY BE A DEBTOR UNDER CHAPTER 13.—Section 109(e) 
of title 11, United States Code, is amended— 
(1) by striking "$100,000" each place it appears and insert-
ing "$250,000", and 
108 STAT. 4112 
PUBLIC LAW 103-394—OCT. 22, 1994 
(2) by striking "$350,000" each place it appears and insert-
ing "$750,000". 
(b) INVOLUNTARY CASES.—Section 303(b) of title 11, United 
States Code, is amended— 
(1) in paragraph (1) by striking "$5,000" and inserting 
"$10,000", and 
(2) in paragraph (2) by striking "$5,000" and inserting 
"$10,000". 
(c) PRIORITIES.—Section 507(a) of title 11, United States Code, 
is amended— 
(1) in paragraph (4)(B)(i) by striking "$2,000" and inserting 
"$4,000", 
(2) in paragraph (5) by striking "$2,000" and inserting 
"$4,000", and 
(3) in paragraph (6) by striking "$900" and inserting 
"$1,800". 
(d) EXEMPTIONS.—Section 522(d) of title 11, United States Code, 
is amended— 
(1) in paragraph (1) by striking "$7,500" and inserting 
"$15,000", 
(2) in paragraph (2) by striking "$1,200" and inserting 
"$2,400", 
(3) in paragraph (3)— 
(A) by striking "$200" and inserting "$400", and 
(B) by striking "$4,000" and inserting "$8,000", 
(4) in paragraph (4) by striking "$500" and inserting 
"$1,000", 
(5) in paragraph (5)— 
(A) by striking "$400" and inserting "$800", and 
(B) by striking "$3,750" and inserting "$7,500", 
(6) in paragraph (6) by striking "$750" and inserting 
"$1,500", 
(7) in paragraph (8) by striking "$4,000" and inserting 
"$8,000", and 
(8) in paragraph (11)(D) by striking "$7,500" and inserting 
"$15,000". 
(e) FUTURE ADJUSTMENTS.—Section 104 of title 11, United 
States Code, is amended— 
(1) by inserting "(a)" before "The", and 
(2) by adding at the end the following: 
"(b)(1) On April 1, 1998, and at each 3-year interval ending 
on April 1 thereafter, each dollar amount in effect under sections 
109(e), 303(b), 507(a), 522(d), and 523(a)(2)(C) immediately before 
such April 1 shall be adjusted— 
"(A) to reflect the change in the Consumer Price Index 
for All Urban Consumers, published by the Department of 
Labor, for the most recent 3-year period ending immediately 
before January 1 preceding such April 1, and 
"(B) to round to the nearest $25 the dollar amount that 
represents such change. 
Federal 
"(2) Not later than March 1, 1998, and at each 3-year interval 
^^fcation 
ending on March 1 thereafter, the Judicial Conference of the United 
States shall publish in the Federal Register the dollar amounts 
that will become effective on such April 1 under sections 109(e), 
303(b), 507(a), 522(d), and 523(a)(2)(C) of this title. 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4113 
"(3) Adjustments made in accordance with paragraph (1) shall 
not apply with respect to cases commenced before the date of 
such adjustments.". 
SEC. 109. PREMERGER NOTIFICATION. 
Subparagraphs (A) and (B) of section 363(b)(2) of title 11, 
United States Code, are amended to read as follows: 
"(A) notwithstanding subsection (a) of such section, 
the notification required by such subsection to be given 
by the debtor shall be given by the trustee; and 
"(B) notwithstanding subsection (b) of such section, 
the required waiting period shall end on the 15th day 
after the date of the receipt, by the Federal Trade Commis-
sion and the Assistant Attorney General in charge of the 
Antitrust Division of the Department of Justice, of the 
notification required under such subsection (a), unless such 
waiting period is extended— 
"(i) pursuant to subsection (e)(2) of such section, 
in the same manner as such subsection (e)(2) applies 
to a cash tender offer; 
"(ii) pursuant to subsection (g)(2) of such section; 
or 
"(iii) by the court after notice and a hearing.". 
SEC. 110. ALLOWANCE OF CREDITOR COMMITTEE EXPENSES. 
Section 503(b)(3) of title 11, United States Code, is amended— 
(1) in subparagraph (D) by striking "or" at the end, 
(2) in subparagraph (E) by inserting "or" at the end, and 
(3) by adding at the end the following: 
"(F) a member of a committee appointed under section 
1102 of this title, if such expenses are incurred in the 
performance of the duties of such committee;". 
SEC. 111. SUPPLEMENTAL INJUNCTIONS. 
(a) SUPPLEMENTAL INJUNCTIONS.—Section 524 of title 11, 
United States Code, is amended by adding at the end the following: 
"(g)(1)(A) After notice and hearing, a court that enters an 
order confirming a plan of reorganization under chapter 11 may 
issue, in connection with such order, an injunction in accordance 
with this subsection to supplement the injunctive effect of a dis-
charge under this section. 
"(B) An injunction may be issued under subparagraph (A) to 
enjoin entities from taking legal action for the purpose of directly 
or indirectly collecting, recovering, or receiving pajonent or recovery 
with respect to any claim or demand that, under a plan of reorga-
nization, is to be paid in whole or in part by a trust described 
in paragraph (2)(B)(i), except such legal actions as are expressly 
allowed by the injunction, the confirmation order, or the plan of 
reorganization. 
"(2)(A) Subject to subsection (h), if the requirements of subpara-
graph (B) are met at the time an injunction described in paragraph 
(1) is entered, then after entry of such injunction, any proceeding 
that involves the validity, application, construction, or modification 
of such injunction, or of this subsection with respect to such injunc-
tion, may be commenced only in the district court in which such 
injunction was entered, and such court shall have exclusive jurisdic-
tion over any such proceeding without regard to the amount in 
controversy. 
108 STAT. 4114 
PUBLIC LAW 103-394—OCT. 22, 1994 
"(B) The requirements of this subparagraph are that— 
"(i) the injunction is to be implemented in connection with 
a trust that, pursuant to the plan of reorganization— 
"(I) is to assume the liabilities of a debtor which at 
the time of entry of the order for relief has been named 
as a defendant in personal injury, wrongful death, or prop-
erty-damage actions seeking recovery for damages allegedly 
caused by the presence of, or exposure to, asbestos or 
asbestos-containing products; 
"(II) is to be funded in whole or in part by the securities 
of 1 or more debtors involved in such plan and by the 
obligation of such debtor or debtors to make future pay-
ments, including dividends; 
"(III) is to own, or by the exercise of rights granted 
under such plan would be entitled to own if specified contin-
gencies occur, a majority of the voting shares of— 
"(aa) each such debtor; 
"(bb) the parent corporation of each such debtor; 
or 
"(cc) a subsidiary of each such debtor that is also 
a debtor; and 
"(IV) is to use its assets or income to pay claims and 
demands; and 
"(ii) subject to subsection (h), the court determines that— 
"(I) the debtor is likely to be subject to substantial 
future demands for payment arising out of the same or 
similar conduct or events that gave rise to the claims 
that are addressed by the injunction; 
"(II) the actual amounts, numbers, and timing of such 
future demands cannot be determined; 
"(III) pursuit of such demands outside the procedures 
prescribed by such plan is likely to threaten the plan's 
purpose to deal equitably with claims and future demands; 
"(IV) as part of the process of seeking confirmation 
of such plan— 
"(aa) the terms of the injunction proposed to be 
issued under paragraph (1)(A), including any provi-
sions barring actions against third parties pursuant 
to paragraph (4)(A), are set out in such plan and in 
any disclosure statement supporting the plan; and 
"(bb) a separate class or classes of the claimants 
whose claims are to be addressed by a trust described 
in clause (i) is established and votes, by at least 75 
percent of those voting, in favor of the plan; and 
"(V) subject to subsection (h), pursuant to court orders 
or otherwise, the trust will operate through mechanisms 
such as structured, periodic, or supplemental payments, 
pro rata distributions, matrices, or periodic review of esti-
mates of the numbers and values of present claims and 
future demands, or other comparable mechanisms, that 
provide reasonable assurance that the trust will value, 
and be in a financial position to pay, present claims and 
future demands that involve similar claims in substantially 
the same manner. 
"(3)(A) If the requirements of paragraph (2)(B) are met and 
the order confirming the plan of reorganization was issued or 
affirmed by the district court that has jurisdiction over the reorga-
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4115 
nization case, then after the time for appeal of the order that 
issues or affirms the plan— 
"(i) the injunction shall be valid and enforceable and may 
not be revoked or modified by any court except through appeal 
in accordance with paragraph (6); 
"(ii) no entity that pursuant to such plan or thereafter 
becomes a direct or indirect transferee of, or successor to any 
assets of, a debtor or trust that is the subject of the injunction 
shall be liable with respect to any claim or demand made 
against such entity by reason of its becoming such a transferee 
or successor; and 
"(iii) no entity that pursuant to such plan or thereafter 
makes a loan to such a debtor or trust or to such a successor 
or transferee shall, by reason of making the loan, be liable 
with respect to any claim or demand made against such entity, 
nor shall any pledge of assets made in connection with such 
a loan be upset or impaired for that reason; 
"(B) Subparagraph (A) shall not be construed to— 
"(i) imply that an entity described in subparagraph (A) 
(ii) or (iii) would, if this paragraph were not applicable, nec-
essarily be liable to any entity by reason of any of the acts 
described in subparagraph (A); 
"(ii) relieve any such entity of the duty to comply with, 
or of liability under, any Federal or State law regarding the 
making of a fraudulent conveyance in a transaction described 
in subparagraph (A) (ii) or (iii); or 
"(iii) relieve a debtor of the debtor's obligation to comply 
with the terms of the plan of reorganization, or affect the 
power of the court to exercise its authority under sections 
1141 and 1142 to compel the debtor to do so. 
"(4)(A)(i) Subject to subparagraph (B), an injunction described 
in paragraph (1) shall be valid and enforceable against all entities 
that it addresses. 
"(ii) Notwithstanding the provisions of section 524(e), such an 
injunction may bar any action directed against a third party who 
is identifiable from the terms of such injunction (by name or as 
part of an identifiable group) and is alleged to be directly or 
indirectly liable for the conduct of, claims against, or demands 
on the debtor to the extent such alleged liability of such third 
party arises by reason o
f
— 
"(I) the third party's ownership of a financial interest in 
the debtor, a past or present affiliate of the debtor, or a prede-
cessor in interest of the debtor; 
"(II) the third party's involvement in the management of 
the debtor or a predecessor in interest of the debtor, or service 
as an officer, director or employee of the debtor or a related 
party; 
"(III) the third party's provision of insurance to the debtor 
or a related party; or 
"(IV) the third party's involvement in a transaction chang-
ing the corporate structure, or in a loan or other financial 
transaction affecting the financial condition, of the debtor or 
a related party, including but not limited to— 
"(aa) involvement in providing financing (debt or 
equity), or advice to an entity involved in such a trans-
action; or 
108 STAT. 4116 
PUBLIC LAW 103-394—OCT. 22, 1994 
"(bb) acquiring or selling a financial interest in an 
entity as part of such a transaction, 
"(iii) As used in this subparagraph, the term 'related party' 
means— 
"(I) a past or present affiliate of the debtor; 
"(11) a predecessor in interest of the debtor; or 
"(HI) any entity that owned a financial interest in— 
"(aa) the debtor; 
"(bb) a past or present affiliate of the debtor; or 
"(cc) a predecessor in interest of the debtor. 
"(B) Subject to subsection (h), if, under a plan of reorganization, 
a kind of demand described in such plan is to be paid in whole 
or in part by a trust described in paragraph (2)(B)(i) in connection 
with which an injunction described in paragraph (1) is to be imple-
mented, then such injunction shall be valid and enforceable with 
respect to a demand of such kind made, after such plan is confirmed, 
against the debtor or debtors involved, or against a third party 
described in subparagraph (A)(ii), if— 
"(i) as part of the proceedings leading to issuance of such 
injunction, the court appoints a legal representative for the 
purpose of protecting the rights of persons that might subse-
quently assert demands of such kind, and 
"(ii) the court determines, before entering the order 
confirming such plan, that identifying such debtor or debtors, 
or such third party (by name or as part of an identifiable 
group), in such injunction with respect to such demands for 
purposes of this subparagraph is fair and equitable with respect 
to the persons that might subsequently assert such demands, 
in light of the benefits provided, or to be provided, to such 
trust on behalf of such debtor or debtors or such third party. 
"(5) In this subsection, the term 'demand' means a demand 
for payment, present or future, that— 
"(A) was not a claim during the proceedings leading to 
the confirmation of a plan of reorganization; 
"(B) arises out of the same or similar conduct or events 
that gave rise to the claims addressed by the injunction issued 
under paragraph (1); and 
"(C) pursuant to the plan, is to be paid by a trust described 
in paragraph (2)(B)(i). 
"(6) Paragraph (3)(A)(i) does not bar an action taken by or 
at the direction of an appellate court on appeal of an injunction 
issued under paragraph (1) or of the order of confirmation that 
relates to the injunction. 
"(7) This subsection does not affect the operation of section 
1144 or the power of the district court to refer a proceeding under 
section 157 of title 28 or any reference of a proceeding made 
prior to the date of the enactment of this subsection. 
"(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 entered before such date, then the injunc-
tion 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— 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4117 
"(A) the court determined at the time the plan was 
confirmed that the plan was fair and equitable in accord-
ance 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 representative 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 con-
firmation of such plan or issuance of such injunction; and 
"(2) for purposes of paragraph (1), if a trust described 
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 requirements continuously 
from the date of the enactment of this Act.". 
(b) RULE OF CONSTRUCTION.—^Nothing in subsection (a), or in 
ii use 524 
the amendments made by subsection (a), shall be construed to 
note, 
modify, impair, or supersede any other authority the court has 
to issue injunctions in connection with an order confirming a plan 
of reorganization. 
SEC. 112. AUTHORITY OF BANKRUPTCY JUDGES TO CONDUCT 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 bank-
ruptcy judge may conduct the jury trial if specially 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 immunity, sov-
ereign 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 sections or the Federal 
Rules of Bankruptcy Procedure, including an order or judgment 
108 STAT. 4118 
PUBLIC LAW 103-394—OCT. 22, 1994 
awarding a money recovery, but not including an award of 
punitive 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 section 2412(d)(2)(A) of title 28. 
"(4) The enforcement of any such order, process, or judg-
ment against any governmental unit shall be consistent with 
appropriate nonbankruptcy law applicable to such govern-
mental 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 substantive 
claim for relief or cause of action not otherwise 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 immunity 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 immunity by 
a governmental unit, there shall be offset against a claim or interest 
of a governmental unit any claim against such governmental unit 
that is property of the estate.". 
SEC, 114. SERVICE OF PROCESS IN BANKRUPTCY PROCEEDINGS ON 
AN INSURED DEPOSITORY INSTITUTION. 
11 use app. 
Rule 7004 of the Federal Rules of Bankruptcy Procedure 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: 
Mail. 
"(h) SERVICE OF PROCESS ON AN INSURED DEPOSITORY INSTITU-
TION.—Service on an insured depository institution (as defined in 
section 3 of the Federal Deposit Insurance 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 application to permit 
service on the institution by first class mail sent to an officer 
of the institution designated by the institution; or 
"(3) the institution has waived in writing its entitlement 
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 discharge in 
bankruptcy, including the effects on credit history; 
"(2) the debtor's ability to file a petition under a different 
chapter of this title; 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4119 
"(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— 
"(A) an audit by a governmental unit to determine 
tax liability; 
"(B) the issuance to the debtor by a governmental 
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 estate 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 debtor).". 
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 
"(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 possession 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 perform all obligations of 
the debtor that become due on or after the date of the order 
108 STAT. 4120 
PUBLIC LAW 103-394—OCT. 22, 1994 
under such security agreement, lease, or conditional sale con-
tract; 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 period; and 
"(ii) that occurs after the date of the order is cured 
before the later o
f
— 
"(I) the date that is 30 days after the date of 
the default; or 
"(II) the expiration of such 60-day period. 
"(2) Equipment is described in this paragraph if it is— 
"(A) an aircraft, aircraft engine, propeller, appliance, or 
spare part (as defined in section 40102 of title 49) that is 
subject to a security interest granted by, leased to, or condi-
tionally sold to a debtor that is a citizen of the United States 
(as defined in section 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 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 interest granted by, 
leased to, or conditionally sold to a debtor that is a water 
carrier that holds a certificate of public convenience and neces-
sity or permit issued by the Interstate Commerce Commission. 
"(3) Paragraph (1) applies to a secured party, lessor, or condi-
tional 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 conditional 
vendor whose right to take possession is protected under subsection 
(a) may agree, subject to the court's approval, 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 agreement with 
respect to which the lessor and the debtor, as lessee, have 
expressed in the agreement or in a substantially contempora-
neous writing that the agreement is to be treated as a lease 
for Federal income tax purposes; and 
"(2) the term 'security interest' means a purchase-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 equipment 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 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4121 
the debtor that become due on or after the date of commence-
ment 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 commencement of 
the case and is an event of default therewith is cured 
before the expiration of such 60-day period; and 
"(ii) that occurs or becomes an event of default after 
the date of commencement of the case is cured before 
the later o
f
— 
"(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 period. 
"(2) Equipment is described in this paragraph if it is rolling 
stock equipment or accessories used on such equipment, 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 condi-
tional 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 conditional 
vendor whose right to take possession is protected under subsection 
(a) may agree, subject to the court's approval, 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 agreement with 
respect to which the lessor and the debtor, as lessee, have 
expressed in the agreement or in a substantially contempora-
neous writing that the agreement is to be treated as a lease 
for Federal income tax purposes; and 
"(2) the term 'security interest' means a purchase-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 accessories used on such equip-
ment.". 
SEC. 202. LIMITATION ON LIABILITY OF NON-INSIDER TRANSFEREE 
FOR AVOIDED TRANSFER. 
Section 550 of title 11, United States Code, is amended— 
(1) by redesignating subsections (c), (d), and (e) as sub-
sections (d), (e), and (f), respectively, and 
(2) by inserting after subsection (b) the following: 
"(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 
"(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 INTEREST. 
Section 547 of title 11, United States Code, is amended— 
108 STAT. 4122 
PUBLIC LAW 103-394—OCT. 22, 1994 
(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 semicolon 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 maintain 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 sections 544, 
545, and 549 of this title are subject to any generally applicable 
law that— 
"(A) permits perfection of an interest in property to be 
effective against an entity that acquires rights in such property 
before the date of perfection; or 
"(B) provides for the maintenance or continuation of perfec-
tion of an interest in property to be effective 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 action 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 perfection 
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)(1)(A) If the trustee rejects an unexpired lease of real prop-
erty 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 (including 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 prop-
erty for the balance of the term of such lease and for any 
renewal 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 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4123 
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 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 shopping 
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 pertain-
ing 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 
f
)lan as terminated under its terms, applicable nonbankruptcy 
aw, 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 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 purchaser shall not 
have any right against the estate or the debtor on account of 
any damage occurring after such date caused by such nonperform-
ance.". 
(b) TECHNICAL AMENDMENT.—Section 553(b)(1) of title 11, 
United States Code, is amended by striking "365(h)(2)" and insert-
ing "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, 
(2) by redesignating paragraph (5) as paragraph (6), and 
(3) by inserting after paragraph (4) the following: 
"(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 REPRESENTATIVES. 
Section 507(a)(3) of title 11, United States Code, is amended 
to read as follows: 
108 STAT. 4124 
PUBLIC LAW 103-394—OCT. 22, 1994 
"(3) Third, allowed unsecured clsiims, but only to the extent 
of $4,000 for each individual or corporation, 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, including vaca-
tion, severance, and sick leave pay esimed by an individual; 
or 
"(B) sales commissions earned by an individual or by 
a corporation with only 1 employee, acting as an independ-
ent 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 tiie 12 months preceding that date, 
at least 75 percent of the amount that the individual or 
corporation earned by acting as an independent contractor 
in the sale of goods or services was earned fix>m the 
debtor;". 
SEC. 208. EXCLUSION FROM THE ESTATE OF INTERESTS IN LIQUID 
AND GASEOUS HYDROCARBONS TRANSFERRED BY THE 
DEBTOR PURSUANT TO PRODUCTION PAYMENT AGREE-
MENTS. 
(a) DEFINITION.—Section 101 of titie 11, United States Code, 
is amended— 
(1) by inserting after paragraph (42) the following: 
"(42A) ^production payment* means a term overriding roy-
alty satisfiable in cash or in kind— 
"(A) contingent on the production of a Uquid or gaseous 
hydrocarbon fi^m particular real property; and 
"(B) fi^m a specified volume, or a specified value, from 
the liquid or gaseous hydrocarbon produced 
fix>m 
such prop-
erty, and determined without regard to production costs;", 
and 
(2) by inserting after the first paragraph (56) the following: 
"(56A) 'term overriding royalty means an interest in liquid 
or gaseous hydrocarbons in place or to be produced from 
particular real property that entities the owner thereof to a 
share of production, or the value thereof, for a term limited 
by time, quantity, or value reaHzed;". 
(b) PROPERTY OF THE ESTATE.—Section 541(b)(4) of titie 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 'Xii)", 
(B) by striking "such interesr' and inserting "the 
interest referred to in clause (i)", and 
(C) by striking the period at the end and inserting 
"; oi'', and 
(3) by adding at the end the following: 
"(B)(i) tiie debtor has transferred such interest pursu-
ant to a written conveyance of a production payment to 
an entity that does not participate in the operation of 
tlie property from which such production payment is trans-
ferred; and 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4125 
"(ii) but for the operation of this paragraph, the estate 
could include the interest referred 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 reclamation of such goods— 
"(A) before 10 days aiter receipt of such goods by 
the debtor; or 
"(B) if such 10-day period expires after the commence-
ment of the case, before 20 days after receipt of such 
goods by the debtor, and". 
SEC. 210. INVESTMENT OF MONEY OF THE ESTATE. 
Section 3450^) of titie 11, United States Code, is amended— 
(1) in paragraph (2) by striking the period at the end 
and inserting a semicolon, smd 
(2) by aoding 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 titie 11 of the 
United States Code is amended— 
(1) by redesignating subsections (b) and (c) as subsections 
(c) and (d), respectively, and 
(2) by inserting after subsection (a) the following: 
"(b) Except as provided in section 1163 of this titie, on the 
request of a party in interest made not later than 30 davs 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 disinterested person to serve as 
trustee m me case. The election of a trustee shall be conducted 
in the manner provided in subsections (a), (b), and (c) of section 
702 of this titie.". 
(b) CONFORMING AMENDMENT.—Section 1106(b) of titie 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 titie 11, United States Code, is amended 
by striking "for the ftdl amount of the deficiency" and inserting 
"to the extent that under applicable nonbginkruptcy law such gen-
eral partner is personally liable for such deficiency". 
SEC. 213. IMPAIRMENT OF CLAIMS AND INTERESTS. 
(a) OBJECTION TO CLAIMS FILED UNTIMELY.—Section 502(b) 
of title 11, United States Code, is amended— 
(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, except to the 
extent tardily filed as permitted under paragraph (1), (2), or 
(3) of section 726(a) of this titie or under the Federal Rules 
of Bankruptcy Procedure, except that a claim of a governmental 
108 STAT. 4126 
PUBLIC LAW 103-394—OCT. 22, 1994 
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 provide.". 
(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 EXPENSES.—Sec-
tion 503(a) of title 11, United States Code, is amended— 
(1) by inserting "timely" after "may", and 
(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-PETITION 
RENTS AND LODGING PAYMENTS. 
(a) PosTPETiTiON EFFECT O F SECURITY 
INTEREST.—Section 
552(b) of title 11, United States Code, is amended— 
(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 entered into a security agree-
ment before the commencement of the case and if the security 
interest created by such security agreement extends to property 
of the debtor acquired 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 inserting: "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 "property". 
SEC. 215. AMENDMENT TO DEFINITION OF SWAP AGREEMENT. 
Subparagraph (A) of the first paragraph (55) of section 101 
of title 11, United States Code, is amended by inserting "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: 
"(1) the later of— 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4127 
"(A) 2 years after the entry of the order for relief; 
or 
"(B) 1 year after the appointment or election of the 
first trustee under section 702, 1104, 1163, 1202, or 1302 
of this title if such appointment or such election occurs 
before the expiration of the period specified in subpara-
graph (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 commer-
cial or business activities (but does not include a person whose 
primary activity is the business of owning or operating real 
property and activities incidental thereto) whose aggregate 
noncontingent liquidated 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 inserting "Except 
as provided in paragraph (3), as"; and 
(2) by adding at the end the following: 
"(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 within 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 need for an increase is 
caused by circumstances for which the debtor should not 
be held accountable.". 
(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 disclosure state-
ment 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 information to each holder 
of a claim or interest that is solicited, but a conditionally 
approved disclosure statement shall be mailed at least 10 days 
108 STAT. 4128 
PUBLIC LAW 103-394-OCT. 22, 1994 
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.". 
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: 
"(5IB) 'single asset real estate' means real properhr con-
stituting a single property or project, other than residential 
real property with fewer than 4 residential units, which gen-
erates 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 naving aggregate noncontingent, 
Uquidated 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 single asset 
real estate under subsection (a), by a creditor whose claim 
is secured by an interest in such real estate, unless, not later 
than the date that is 90 days after the entry of the order 
for relief (or such later date as the court may determine for 
cause by order entered witMn that 90-day period)— 
"(A) the debtor has filed a plan of reorgginization that 
has a resisonable possibility of being confirmed within a 
reasonable time; or 
"(B) the debtor has conmienced monthly payments to 
each creditor whose claim is secured by such real estate 
(other than a claim secured by a judgment Uen or by 
an unmatured statutory Uen), which payments are in an 
amount equal to interest at a current fair market rate 
on the value of the creditor's interest in the real estate.". 
SEC. 
2
1
9
. 
LEASES 
OF 
PERSONAL 
PROPERTY. 
(a) ASSUMPTION.—Section 365(b)(2) of titie 11, United States 
Code, is amended— 
(1) in subparagraph (B) by striking "or" at the end, 
(2) in subparagraph (C) by striking the period and inserting 
";or", 
(3) by addm^ at the end the following: 
"(D) the satisfaction of any penalty rate or provision relat-
ing to a default arising fi*om any failure by the debtor to 
perform nonmonetary obHgations under the executory contract 
or unexpired lease.". 
(b) PERFORMANCE.—Section 365(d) of titie 11, United States 
Code, is amended by adding at the end the following: 
"(10) The trustee shall timely perform all of the obligations 
of the debtor, except those specified in section 365(b)(2), first 
arising fix)m or after 60 days after the order for relief in 
a case imder chapter 11 of this titie under an unexpired lease 
of personal property (other than personal property leased to 
an individual primarily for personal, family, or household pur-
-^*, -.-• 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4129 
poses), until such lease is assumed or rejected notwithstanding 
section 503(b)(1) of this title, unless tiie court, after notice 
Eind a hearing and based on the equities of the case, orders 
otherwise with respect to the obligations or timely performance 
thereof. This subsection shall not be deemed to affect the trust-
ee's obhgations under the provisions of subsection (b) or (f). 
Acceptance of any such performance does not constitute waiver 
or rehnquishment of the lessor's rights under such lease or 
under this title.". 
(c) LIMITATION.—Section 363(e) of title 11, United States Code 
is amended by adding at the end the following: 
"This subsection also apphes to property that is subject to any 
unexpired lease of personal property (to the exclusion of such prop-
erty being subject to an order to grant rehef from the stay under 
section 362).". 
SEC. 220. EXEMPTION FOR SMALL BUSINESS INVESTMENT COMPA-
NIES. 
Section 109(b)(2) of title 11, United States Code, is amended 
by inserting after "homestead association," the following: "a small 
business investment company hcensed by the Small Business 
Administration under subsection (c) or (d) of section 301 of the 
Small Business Investment Act of 1958,". 
SEC. 
2
2
1
. 
PAYMENT 
OF 
TAXES 
WITH 
BORROWED 
FUNDS. 
Section 523(a) of title 11, United States Code, is amended— 
(1) in paragraph (13) by striking the period at the end 
and inserting a semicolon, and 
(2) by adding at the end the following: 
"(14) incurred to pay a tax to the United States that would 
be nondischargeable pursuant to paragraph (1);". 
SEC. 222. RETURN OF GOODS. 
(a) LIMITATION ON AVOIDING POWERS.—Section 546 of title 11, 
United States Code, is amended by adding at the end the following: 
"(g) Notwithstanding the rights and powers of a trustee under 
sections 544(a), 545, 547, 549, and 553, if the court determines 
on a motion by the trustee made not later than 120 days after 
the date of the order for rehef in a case under chapter 11 of 
this title and after notice and a hearing, that a return is in the 
best interests of the estate, the debtor, with the consent of a 
creditor, may return goods shipped to the debtor by the creditor 
before the commencement of the case, and the creditor may offset 
the purchase price of such goods against any claim of the creditor 
against the debtor that arose before tlie commencement of the 
case.". 
(b) SETOFF.—Section 553(b)( 1) is amended by inserting "546(h)," 
11 USC 553. 
after "365(h),". 
SEC. 223. PROCEEDS OF MONEY ORDER AGREEMENTS. 
Section 541(b) of titie 11, United States Code, is amended— 
(1) in paragraph (3) by striking "or" at the end and insert-
ing a semicolon, 
(2) in paragraph (4) by striking the period at the end 
and inserting "; or", and 
(3) by inserting after paragraph (4) the following: 
108 STAT. 4130 
PUBLIC LAW 103-394—OCT. 22, 1994 
"(5) any interest in cash or cash equivalents that constitute 
proceeds of a sale by the debtor of a money order that is 
made— 
"(A) on or after the date that is 14 days prior to 
the date on which the petition is filed; and 
"(B) under an agreement with a money order issuer 
that prohibits the commingling of such proceeds with prop-
erty of the debtor (notwitiistanding that, contrary to the 
agreement, the proceeds may have been commingled with 
property of the debtor), 
unless the money order issuer had not taken action, prior 
to the fihng of tiie petition, to require compHance with the 
prohibition.". 
SEC. 224. TRUSTEE DUTIES; PROFESSIONAL FEES. 
(a) TRUSTEE'S DUTIES.—Section 586(a)(3)(A) of title 28, United 
States Code, is amended to read as follows: 
"(A)(i) reviewing, in accordance with procedural guide-
lines adopted by the Executive Office of tiie United States 
Trustee (which guideUnes shall be apphed uniformly by 
the United States trustee except when circimistEinces war-
rant different treatment), applications filed for compensa-
tion and reimbursement under section 330 of title 11; and 
**(ii) filing with the court comments with respect to 
such appUcation and, if the United States Trustee considers 
it to be appropriate, objections to such appUcation.". 
(b) PROFESSIONAL FEES.—Section 330(a) of title 11, United 
States Code, is amended to read as follows: 
"(a)(1) After notice to the parties in interest and the United 
States Trustee and a hearing, and subject to sections 326, 328, 
and 329, the court may award to a trustee, an examiner, a profes-
sional person employed under section 327 or 1103— 
"(A) reasonable compensation for actual, necessary services 
rendered by the trustee, examiner, professional person, or attor-
ney and by any paraprofessional person employed by any such 
person; and 
"(B) reimbursement for actual, necessary expenses. 
"(2) The court may, on its own motion or on the motion of 
the United States Trustee, the United States Trustee for the District 
or Region, the trustee for the estate, or any other party in interest, 
award compensation that is less than the amount of compensation 
that is requested. 
Courts. 
"(3)(A) In determining the amount of reasonable compensation 
to be awarded, the court shall consider the nature, the extent, 
and the value of such services, taking into account all relevant 
factors, including— 
"(A) the time spent on such services; 
"(B) the rates charged for such services; 
"(C) whether the services were necessary to the administra-
tion of, or beneficial at the time at which the service was 
rendered toward the completion of, a case under this title; 
"(D) whether the services were performed within a reason-
able amount of time commensurate with the complexity, impor-
tance, and nature of the problem, issue, or task addressed; 
and 
'-'•. •
> A * ^ « . 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4131 
"(E) whether the compensation is reasonable based on the 
customary 
compensation 
charged 
by 
comparably 
skilled 
practitioners in cases other than cases under this title. 
(4)(A) Except as provided in subparagraph (B), the court shall 
not allow compensation for— 
"(i) unnecessary duplication of services; or 
"(ii) services that were not— 
"(I) reasonably likely to benefit the debtor's estate; 
or 
"(II) necessary to the administration of the case. 
"(B) In a chapter 12 or chapter 13 case in which the debtor 
is an individual, the court may allow reasonable compensation 
to the debtor's attorney for representing the interests of the debtor 
in connection with the bankruptcy case based on a consideration 
of the benefit and necessity of such services to the debtor and 
the other factors set forth in this section. 
"(5) The court shall reduce the amount of compensation 
Courts, 
awarded under this section by the amount of any interim compensa-
tion 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 information 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 amended— 
(1) by redesignating subsection (c) as subsection (d), and 
(2) by inserting after subsection (b) the following: 
"(c) 
Notwithstanding 
subsection 
(b)(2) 
and 
applicable 
nonbankruptcy law— 
"(1) a default with respect to, or that gave rise to, a lien 
on the debtor's principal residence may be cured under para-
graph (3) or (5) of subsection (b) until such residence is sold 
at a foreclosure sale that is conducted in accordance with 
applicable nonbankruptcy law; and 
"(2) in a case in which the last payment on the original 
payment schedule for a claim secured only by a security interest 
in real property that is the debtor's principal residence is due 
before the date on which the final pa3anent under the plan 
is due, the plan may provide for the payment of the claim 
as modified pursuant to section 1325(a)(5) of this title.". 
79-194 O—95—21 : QL 3 Part 5 
108 STAT. 4132 
PUBLIC LAW 103-394—OCT. 22, 1994 
SEC. 302. NONDISCHARGEABILrrY OF FINE UNDER CHAPTER 13. 
Section 1328(a)(3) of title 11, United States Code, is amended 
by inserting ", or a criminal fine," after "restitution". 
SEC. 303. IMPAIRMENT OF EXEMPTIONS. 
Section 522(f) of titie 11, United States Code, is amended— 
(1) in paragraph (2)— 
(A) by redesignating subparagraphs (A), (B), and (C) 
as clauses (i), (ii), and (in), respectively, and 
(B) by striking "(2)" and inserting "(B)", 
(2) by redesignating paragraph (1) as subparagraph (A), 
(3) by inserting "(1)" before "Notwithstanding", and 
(4) by adding at the end the following: 
"(2)(A) For the purposes of this subsection, a Uen shaU be 
considered to impair an exemption to the extent tiiat the sum 
of— 
"(i) the hen; 
"(ii) all other liens on the property; and 
"(iii) the amount of the exemption that the debtor could 
claim if there were no hens on the property; 
exceeds the value that the debtor's interest in the property would 
have in the absence of any Uens. 
"(B) In the case of a property subject to more than 1 hen, 
a hen that has been avoided shall not be considered in making 
the calculation under subparagraph (A) with respect to other liens. 
"(C) This paragraph snail not apply with respect to a judgment 
arising out of a mortgage foreclosure. . 
SEC. 304. PROTECTION OF CHILD SUPPORT AND ALIMONY. 
(a) DEFINITION.—Section 101 of titie 11, United States Code, 
is amended by insertiDg after paragraph (12) tlie following: 
"(12A) 'debt tor child support* means a debt of a kind 
specified in section 523(a)(5) of this titie for maintenance or 
support of a child of the debtor,". 
(b) RELIEF FROM AUTOMATIC STAY.—Section 362(b)(2) of titie 
11, United States Code, is amended to read as foUows: 
"(2) under subsection (a) of this section— 
"(A) of the commencement or continuation of an action 
or proceeding foi--
*(i) the establishment of paternity; or 
"(ii) the estabhshment or modification of an order 
for alimony, maintenance, or support; or 
"(B) of the collection of alimony, maintenance, or sup-
port fi^m property that is not propertir of the estate, . 
(c) PRIORITY OF CLAIMS.—Section 507(a) of titie 11, United 
States Code, is amended— 
(1) in paragraph (8) by striking "(8) Eighth" and inserting 
"(9)Nmtili", 
(2) in paragraph (7) by striking "(7) Seventh" and inserting 
"(8) Eightii", and 
(3) by inserting after paragraph (6) the following: 
"(7) Seventh, aUowed claims for debts to a spouse, former 
spouse, or child of the debtor, for alimony to, maintenance 
for, or support of such spouse or chUd, in connection with 
a separation agreement, divorce decree or other order of a 
court of record, determination made in accordance with State 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4133 
or territorial law by a governmental unit, or property settlement 
agreement, but not to the extent that such debt— 
"(A) is assigned to anothei^ entity, voluntarily, by oper-
ation of law, or otherwise; or 
"(B) includes a Uability designated as alimony, mainte-
nance, or support, unless such liability is actuEuly in the 
nature of alimony, maintenance or support". 
(d) PROTECTION OF LIENS.—Section 522(f)(1)(A) of title 11, 
United States Code, as amended by section 303, is amended by 
inserting after "hen" the following: 
", other than a judicial lien that secures a debt— 
"(i) to a spouse, former spouse, or child of the debtor, 
for alimony to, maintenance for, or support of such spouse 
or child, in connection with a separation agreement, divorce 
decree or other order of a court of record, determination 
made in accordance with State or territorial law by a 
governmental unit, or property settlement agreement; and 
*(ii) to the extent that such debt— 
"(I) is not assigned to another entity, voluntarily, 
by operation of law, or otherwise; and 
"(II) includes a liability designated as alimony, 
maintenance, or support, unless such liabiUty is actu-
ally in the nature of 
alimony, maintenance or support". 
(e) EXCEPTION TO DISCHARGE.—Section 523 of title 11, United 
States Code, as amended by section 221, is amended by adding 
at the end the following: 
"(15) not of the kind described in paragraph (5) that is 
incurred by the debtor in the course of a divorce or separation 
or in connection with a separation agreement, divorce decree 
or other order of a court of record, a determination made 
in accordance with State or territorial law by a governmental 
imit unless— 
"(A) the debtor does not have the abiUty to pay such 
debt from income or property of the debtor not reasonably 
necessary to be expended for the maintenance or support 
of the debtor or a dependent of the debtor and, if the 
debtor is engaged in a business, for the payment of expendi-
tures necessary for the continuation, preservation, and 
operation of such business; or 
"(B) discharging such debt would result in a benefit 
to the debtor that outweighs tlie detrimental consequences 
to a spouse, former spouse, or child of the debtor;", and 
(2) in subsection (c)(l) by striking "or (6)" each place it 
appears and inserting "(6), or (15)". 
(t) PROTECTION AGAINST TRUSTEE AVOIDANCE.—Section 547(c) 
of title 11, United States Code, is amended— 
(1) in paragraph (6) by striking "or" at the end, 
(2) by redesignating paragraph (7) as para^ph (8), and 
(3) by inserting after paragrapn (6) the following: 
"(7) to the extent such transfer was a bona fide payment 
of a debt to a spouse, former spouse, or child of the debtor, 
for alimony to, maintenance for, or support of such spouse 
or child, in connection with a SCT)aration agreement, divorce 
decree or other order of a court of record, determination made 
in accordance with State or territorial law by a governmental 
imit, or property settlement agreement, but not to the extent 
that such debt— 
note. 
108 STAT. 4134 
PUBLIC LAW 103-394—OCT. 22, 1994 
"(A) is assigned to another entity, voluntarily, by oper-
ation of law, or otherwise; or 
"(B) includes a Hability designated as alimony, mainte-
nance, or support, unless such Habihty is actually in the 
nature of ahmony, maintenance or support; or". 
11 use 501 
(g) APPEARANCE BEFORE COURT.—Child support creditors or 
their representatives shall be permitted to appear and intervene 
without charge, and without meeting any special local court rule 
requirement for attorney appearances, in any bankruptcy case or 
proceeding in any bankruptcy court or district coiul; of the United 
States if such creditors or representatives file a form in such court 
that contains information detailing the child support debt, its status, 
and other characteristics. 
(h) CONFORMING AMENDMENTS.—Title 11 of the United States 
Code is Eunended— 
(1) in section 502(i) by striking "507(a)(7)" and inserting 
"507(a)(8)", 
(2) in section 503(b)(l)(B)(i) by striking "507(a)(7r and 
inserting "507(a)(8)'', 
(3) in section 523(a)(1)(A) by striking "507(a)(7)" and insert-
ing "507(a)(8)'', 
(4) in section 724(b)(2) by striking "or 507(a)(6)'' and insert-
ing "507(a)(6), or 507(a)(7)'', 
(5) in section 726(b) by striking "or (7)" and inserting 
",(7), or (8)", 
(6) in section 1123(a)(1) by striking "507(a)(7)'' and insert-
ing "507(a)(8)'', 
(7) in section 1129(a)(9>— 
(i) in subparagraph (B) by striking "or 507(a)(6)'' and 
inserting ", 507(a)(6), or 507(a)(7)", and 
(ii) in subparagraph (C) by striking "507(a)(7)" and 
inserting "507(a)(8)". 
SEC. 305. INTEREST ON INTEREST. 
(a) CHAPTER 11.—Section 1123 of title 11, United States Code, 
is amended by adding at the end the following: 
"(d) Notwithsteinding subsection (a) of this section and sections 
506(b), 1129(a)(7), and 1129(b) of this titie, if it is proposed in 
a plan to cure a default the amount necessary to cure the default 
shall be determined in accordsince with the underlying agreement 
and applicable nonbankruptcy law.". 
(b) CHAPTER 12.—Section 1222 of titie 11, United States Code, 
is amended by adding at the end the following: 
"(d) Notwithstanding subsection (b)(2) of this section and sec-
tions 506(b) and 1225(a)(5) of this title, if it is proposed in a 
plan to cure a default, the amoimt necessary to cure me default, 
shall be determined in accordance with the underlying agreement 
and appHcable nonbankruptcy law.". 
(c) CHAPTER 13.—Section 1322 of titie 11, United States Code, 
is amended by adding at the end the following: 
"(e) Notwithstanding subsection (b)(2) of this section and sec-
tions 506(b) and 1325(a)(5) of this title, if it is proposed in a 
plan to cure a default, the amount necessary to cure tiie default, 
shall be determined in accordance with the underlying agreement 
and applicable nonbankruptcy law.". 
, , « ? • > * . • 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4135 
SEC. 306. EXCEPTION TO DISCHARGE. 
Section 523(a)(2)(C) of title 11, ,United States Code, is 
amended— 
(1) by striking "$500" and inserting "$ 1,000", 
(2) by striking "forty" and inserting "60", and 
(3) by striking "twenty" and inserting "60". 
SEC. 307. PAYMENTS UNDER CHAPTER 13. 
Section 1326(a)(2) of title 11, United States Code, is amended 
in the second sentence by striking the period and inserting "as 
soon as practicable.". 
SEC. 308. BANKRUPTCY PETITION PREPARERS. 
(a) AMENDMENT OF CHAPTER 1.—Chapter 1 of title 11, United 
States Code, is amended by adding at the end the following: 
"§110. Penalty for persons who negligently or fraudulently 
prepare bankruptcy petitions 
"(a) In this section— 
"(1) 'bankruptcy petition preparer' means a person, other 
than an attorney or an employee of an attorney, who prepares 
for compensation a document for filing; and 
"(2) 'document for filing* means a petition or any other 
document prepared for filing by a debtor in a United States 
bankruptcy court or a United States district court in connection 
with a case under this title. 
"(b)(1) A bankruptcy petition preparer who prepares a document 
for filing shall sign the document and print on the document the 
preparer's name and address. 
"(2) A bankruptcy petition preparer who fails to comply with 
paragraph (1) may be fined not more than $500 for each such 
failure unless the failure is due to reasonable cause. 
"(c)(1) A bankruptcy petition preparer who prepares a document 
for filing shall place on the document, after the preparer's signature, 
an identifying number that identifies individuals who prepared 
the document. 
"(2) For purposes of this section, the identifying number of 
a bankruptcy petition preparer shall be the Social Security account 
number of each individual who prepared the document or assisted 
in its preparation. 
"(3) A bankruptcy petition preparer who fails to comply with 
paragraph (1) may be fined not more than $500 for each such 
failure unless the failure is due to reasonable cause. 
"(d)(1) A bankruptcy petition preparer shall, not later than 
the time at which a document for filing is presented for the debtor's 
signature, furnish to the debtor a copy of the document. 
"(2) A bankruptcy petition preparer who fails to comply with 
paragraph (1) may be fined not more than $500 for each such 
failure unless the failure is due to reasonable cause. 
"(e)(1) A bankruptcy petition preparer shall not execute any 
document on behalf of a debtor. 
"(2) A bankruptcy petition preparer may be fined not more 
than $500 for each document executed in violation of paragraph 
(1). 
"(f)(1) A bankruptcy petition preparer shall not use the word 
'legal' or any similar term in any advertisements, or advertise 
108 STAT. 4136 
PUBLIC LAW 103-394—OCT. 22, 1994 
under any category that includes the word 'legal' or any similar 
term. 
"(2) A bankruptcy petition preparer shall be fined not more 
than $500 for each violation of paragraph (1). 
"(g)(1) A bankruptcy petition preparer shall not collect or 
receive any payment from the debtor or on behalf of the debtor 
for the court fees in connection with filing the petition. 
"(2) A bankruptcy petition preparer shall be fined not more 
than $500 for each violation of paragraph (1). 
"(h)(1) Within 10 days after the date of the filing of a petition, 
a bankruptcy petition preparer shall file a declaration under penalty 
of perjury disclosing any fee received from or on behalf of the 
debtor within 12 months immediately prior to the filing of the 
case, and any unpaid fee charged to the debtor. 
Courts. 
"(2) The court shall disallow and order the immediate turnover 
to the bankruptcy trustee of any fee referred to in paragraph 
(1) found to be in excess of the value of services rendered for 
the documents prepared. An individual debtor may exempt any 
funds so recovered under section 522(b). 
"(3) The debtor, the trustee, a creditor, or the United States 
trustee may file a motion for an order under paragraph (2). 
"(4) A bankruptcy petition preparer shall be fined not more 
than $500 for each failure to comply with a court order to turn 
over funds within 30 days of service of such order. 
"(i)(l) If a bankruptcy case or related proceeding is dismissed 
because of the failure to file bankruptcy papers, including papers 
specified in section 521(1) of this title, the negligence or intentional 
disregard of this title or the Federal Rules of Bankruptcy Procedure 
by a bankruptcy petition preparer, or if a bankruptcy petition 
preparer violates this section or commits any fraudulent, unfair, 
or deceptive act, the bankruptcy court shall certify that fact to 
the district court, and the district court, on motion of the debtor, 
the trustee, or a creditor and after a hearing, shall order the 
bankruptcy petition preparer to pay to the debtor— 
"(A) the debtor's actual damages; 
"(B) the greater of— 
"(i) $2,000; or 
"(ii) twice the amount paid by the debtor to the bank-
ruptcy petition preparer for the preparer's services; and 
"(C) reasonable attorneys' fees and costs in moving for 
damages under this subsection. 
"(2) If the trustee or creditor moves for damages on behalf 
of the debtor under this subsection, the bankruptcy petition pre-
parer shall be ordered to pay the movant the additional amount 
of $1,000 plus reasonable attorneys' fees and costs incurred. 
"(j)(l) A debtor for whom a bankruptcy petition preparer has 
prepared a document for filing, the trustee, a creditor, or the United 
States trustee in the district in which the bankruptcy petition 
preparer resides, has conducted business, or the United States 
trustee in any other district in which the debtor resides may bring 
a civil action to enjoin a bankruptcy petition preparer from engaging 
in any conduct in violation of this section or from further acting 
as a bankruptcy petition preparer. 
"(2)(A) In an action under paragraph (1), if the court finds 
that— 
"(i) a bankruptcy petition preparer has— 
•«1«?4?j?',-
PUBLIC LAW 103-394-OCT. 22, 1994 
108 STAT. 4137 
"(I) engaged in conduct in violation of this section 
or of any provision of this title a violation of which subjects 
a person to criminal penalty; 
"(II) misrepresented the preparer's experience or edu-
cation as a bankruptcy petition preparer; or 
"(III) engaged in any other fraudulent, unfair, or decep-
tive conduct; and 
"(ii) injunctive relief is appropriate to prevent the recur-
rence of such conduct, 
the court may enjoin the bankruptcy petition preparer from engag-
ing in such conduct. 
"(B) If the court finds that a bankruptcy petition preparer 
has continually engaged in conduct described in subclause (I), (II), 
or (III) of clause (i) and that an injunction prohibiting such conduct 
would not be sufficient to prevent such person's interference with 
the proper administration of this title, or has not paid a penalty 
imposed under this section, the court may enjoin the person from 
acting as a bankruptcy petition preparer. 
"(3) The court shall award to a debtor, trustee, or creditor 
that brings a successful action under this subsection reasonable 
attorney's fees and costs of the action, to be paid by the bankruptcy 
petition preparer. 
"(k) Nothing in this section shall be construed to permit activi-
ties that are otherwise prohibited by law, including rules and laws 
that prohibit the unauthorized practice of law.". 
(b) The chapter analysis for chapter 1 of title 11, United States 
Code, is amended by adding at the end the following new item: 
"110. Penalty for persons who negligently or fraudulently prepare bankruptcy peti-
tions.". 
SEC. 309. FAIRNESS TO CONDOMINIUM AND COOPERATIVE OWNERS. 
Section 523(a) of title 11, United States Code, as amended 
by sections 221 and 304, is amended by adding at the end the 
following: 
"(16) for a fee or assessment that becomes due and payable 
after the order for relief to a membership association with 
respect to the debtor's interest in a dwelling unit that has 
condominium ownership or in a share of a cooperative housing 
corporation, but only if such fee or assessment is payable for 
a period during which— 
"(A) the debtor physically occupied a dwelling unit 
in the condominium or cooperative project; or 
"(B) the debtor rented the dwelling unit to a tenant 
and received payments from the tenant for such period, 
but nothing in this paragraph shall except from discharge the 
debt of a debtor for a membership association fee or assessment 
for a period arising before entry of the order for relief in 
a pending or subsequent bankruptcy case.". 
SEC. 310. NONAVOIDABILITY OF FIXING OF LIEN ON TOOLS AND 
IMPLEMENTS OF TRADE, ANIMALS, AND CROPS. 
Section 522(f) of title 11, United States Code, as amended 
by sections 303 and 304, is amended— 
(1) in paragraph (1) by inserting "but subject to paragraph 
(3)" after "waiver of exemptions", and 
(2) by adding at the end the following: 
"(3) In a case in which State law that is applicable to the 
debtor— 
108 STAT. 4138 
PUBLIC LAW 103-394—OCT. 22, 1994 
"(A) permits a person to voluntarily waive a right to claim 
exemptions under subsection (d) or prohibits a debtor from 
claiming exemptions under subsection (d); and 
"(B) either permits the debtor to claim exemptions under 
State law without limitation in amount, except to the extent 
that the debtor has permitted the fixing of a consensual lien 
on any property or prohibits avoidance of a consensual lien 
on property otherwise eligible to be claimed as exempt property; 
the debtor may not avoid the fixing of a lien on an interest of 
the debtor or a dependent of the debtor in property if the lien 
is a nonpossessory, nonpurchase-money security interest in imple-
ments, professional books, or tools of the trade of the debtor or 
a dependent of the debtor or farm animals or crops of the debtor 
or a dependent of the debtor to the extent the value of such 
implements, professional books, tools of the trade, animals, and 
crops exceeds $5,000.". 
SEC, 
311. 
CONVERSION 
OF 
CASE 
UNDER 
CHAPTER 
13. 
Section 348 of title 11, United States Code, is amended by 
adding at the end the following: 
"(f)(1) Except as provided in paragraph (2), when a case under 
chapter 13 of this title is converted to a case under another chapter 
under this title— 
"(A) property of the estate in the converted case shall 
consist of property of the estate, as of the date of filing of 
the petition, that remains in the possession of or is under 
the control of the debtor on the date of conversion; and 
"(B) valuations of property and of allowed secured claims 
in the chapter 13 case shall apply in the converted case, with 
allowed secured claims reduced to the extent that they have 
been paid in accordance with the chapter 13 plan. 
"(2) If the debtor converts a case under chapter 13 of this 
title to a case under another chapter under this title in bad faith, 
the property in the converted case shall consist of the property 
of the estate as of the date of conversion.". 
SEC. 312. BANKRUPTCY FRAUD. 
(a) IN GENERAL.— 
(1) OFFENSES.—Chapter 9 of title 18, United States Code, 
is amended— 
(A) by amending sections 152, 153, and 154 to read 
as follows: 
*
*
§ 152. Concealment of assets; false oaths and claims; bribery 
"A person who— 
"(1) knowingly and fraudulently conceals from a custodian, 
trustee, marshal, or other officer of the court charged with 
the control or custody of property, or, in connection with a 
case under title 11, from creditors or the United States Trustee, 
any property belonging to the estate of a debtor; 
"(2) knowingly and fraudulently makes a false oath or 
account in or in relation to any case under title 11; 
"(3) knowingly and fraudulently makes a false declaration, 
certificate, verification, or statement under penalty of perjury 
as permitted under section 1746 of title 28, in or in relation 
to any case under title 11; 
"(4) knowingly and fraudulently presents any false claim 
for proof against the estate of a debtor, or uses any such 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4139 
claim in any case under title 11, in a personal capacity or 
as or through an agent, proxy, or attorney; 
"(5) knowingly and fraudulently receives any material 
amount of property from a debtor after the filing of a case 
under title 11, with intent to defeat the provisions of title 
11; 
"(6) knowingly and fraudulently gives, offers, receives, or 
attempts to obtain any money or property, remuneration, com-
pensation, reward, advantage, or promise thereof for acting 
or forbearing to act in any case under title 11; 
"(7) in a personal capacity or as an agent or officer of 
any person or corporation, in contemplation of a case under 
title 11 by or against the person or any other person or corpora-
tion, or with intent to defeat the provisions of title 11, know-
ingly and fraudulently transfers or conceals any of his property 
or the property of such other person or corporation; 
"(8) after the filing of a case under title 11 or in contempla-
tion thereof, knowingly and fraudulently conceals, destroys, 
mutilates, falsifies, or makes a false entry in any recorded 
information (including books, documents, records, and papers) 
relating to the property or financial affairs of a debtor; or 
"(9) after the filing of a case under title 11, knowingly 
and fraudulently withholds from a custodian, trustee, marshal, 
or other officer of the court or a United States Trustee entitled 
to its possession, any recorded information (including books, 
documents, records, and papers) relating to the property or 
financial affairs of a debtor, 
shall be fined not more than $5,000, imprisoned not more than 
5 years, or both. 
'*§ 153. Embezzlement against estate 
"(a) OFFENSE.—^A person described in subsection (b) who know-
ingly and fraudulently appropriates to the person's own use, embez-
zles, spends, or transfers any property or secretes or destroys any 
document belonging to the estate of a debtor shall be fined not 
more than $5,000, imprisoned not more than 5 years, or both. 
"(b) PERSON TO WHOM SECTION APPLIES.—A person described 
in this subsection is one who has access to property or documents 
belonging to an estate by virtue of the person's participation in 
the administration of the estate as a trustee, custodian, marshal, 
attorney, or other officer of the court or as an agent, employee, 
or other person engaged by such an officer to perform a service 
with respect to the estate. 
^§ 154. Adverse interest and conduct of officers 
"A person who, being a custodian, trustee, marshal, or other 
officer of the court— 
"(1) knowingly purchases, directly or indirectly, any prop-
erty of the estate of which the person is such an officer in 
a case under title 11; 
"(2) knowingly refuses to permit a reasonable opportunity 
for the inspection by parties in interest of the documents and 
accounts relating to the affairs of estates in the person's charge 
by parties when directed by the court to do so; or 
"(3) knowingly refuses to permit a reasonable opportunity 
for the inspection by the United States Trustee of the docu-
108 STAT. 4140 
PUBLIC LAW 103-394—OCT. 22, 1994 
ments and accounts relating to the affairs of an estate in 
the person's charge, 
shall be fined not more than $5,000 and shall forfeit the person's 
office, which shall thereupon become vacant."; and 
(B) by adding at the end the following: 
"§ 156. Knowing disregard of bankruptcy law or rule 
"(a) DEFINITIONS.—In this section— 
"'bankruptcy petition preparer' means a person, other than 
the debtor's attorney or an employee of such an attorney, who 
prepares for compensation a document for filing. 
"'document for filing' means a petition or any other docu-
ment prepared for filing by a debtor in a United States bank-
ruptcy court or a United States district court in connection 
with a case under this title. 
"(b) OFFENSE.—If a bankruptcy case or related proceeding is 
dismissed because of a knowing attempt by a bankruptcy petition 
preparer in any manner to disregard the requirements of title 
11, United States Code, or the Federal Rules of Bankruptcy Proce-
dure, the bankruptcy petition preparer shall be fined under this 
title, imprisoned not more than 1 year, or both. 
"§ 157. Bankruptcy fraud 
"A person who, having devised or intending to devise a scheme 
or artifice to defraud and for the purpose of executing or concealing 
such a scheme or artifice or attempting to do so— 
"(1) files a petition under title 11; 
"(2) files a document in a proceeding under title 11; or 
"(3) makes a false or fraudulent representation, claim, or 
promise concerning or in relation to a proceeding under title 
11, at any time before or after the filing of the petition, or 
in relation to a proceeding falsely asserted to be pending under 
such title, 
shall be fined under this title, imprisoned not more than 5 years, 
or both.". 
(2) TECHNICAL AMENDMENTS.—^The chapter analysis for 
chapter 9 of title 18, United States Code, is amended— 
(A) by amending the item relating to section 153 to 
read as follows: 
"Sec. 153. Embezzlement against estate."; 
and 
(B) by adding at the end the following new items: 
"Sec. 156. Knowing disregard of bankruptcy law or rule. 
"Sec. 157. Bankruptcy fraud.". 
(b) RICO.—Section 1961(1)(D) of title 18, United States Code, 
is amended by inserting "(except a case under section 157 of that 
title)" after "title 11". 
SEC. 313. PROTECTION AGAINST DISCRIMINATORY TREATMENT OF 
APPLICATIONS FOR STUDENT LOANS. 
Section 525 of title 11, United States Code, is amended by 
adding at the end the following: 
"(c)(1) A governmental unit that operates a student grant or 
loan program and a person engaged in a business that includes 
the making of loans guaranteed or insured under a student loan 
program may not deny a grant, loan, loan guarantee, or loan insur-
ance to a person that is or has been a debtor under this title 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4141 
or a bankrupt or debtor under the Bankruptcy Act, or another 
person with whom the debtor or bankrupt has been associated, 
because the debtor or bankrupt is or has been a debtor under 
this title or a bankrupt or debtor under the Bankruptcy Act, has 
been insolvent before the commencement of a case under this title 
or during the pendency of the case but before the debtor is granted 
or denied a discharge, or has not paid a debt that is dischargeable 
in the case under this title or that was discharged under the 
Bankruptcy Act. 
"(2) In this section, 'student loan program' means the program 
operated under part B, D, or E of title IV of the Higher Education 
Act of 1965 or a similar program operated under State or local 
law.". 
TITLE IV—GOVERNMENTAL 
BANKRUPTCY ISSUES 
SEC. 401. EXCEPTION FROM AUTOMATIC STAY FOR POST-PETITION 
PROPERTY TAXES. 
Section 362(b) of title 11, United States Code, is amended 
by inserting after paragraph (16) the following: 
"(18) under subsection (a) of the creation or perfection 
of a statutory lien for an ad valorem property tax imposed 
by the District of Columbia, or a political subdivision of a 
State, if such tax comes due after the filing of the petition.". 
SEC. 402. MUNICIPAL BANKRUPTCY. 
Section 109(c)(2) of title 11, United States Code, is amended 
by striking "generally authorized" and inserting "specifically author-
ized, in its capacity as a municipality or by name,". 
TITLE V—TECHNICAL CORRECTIONS 
SEC. 501. AMENDMENTS 
TO BANKRUPTCY 
DEFINITIONS, 
NECES-
SITATED BY ENACTMENT OF PUBUC LAW 101-647. 
(a) ALPHABETIZING AND REDESIGNATING DEFINITIONS.—Section 
101 of title 11 of the United States Code, as amended by sections 
208, 217, 218, and 304, is amended— 
(1) by redesignating paragraph (3) as paragraph (2 IB) and 
transferring such paragraph so as to insert it after paragraph 
(2 LA), 
(2) by redesignating paragraph (39) as paragraph (51A) 
and transferring such paragraph so as to insert it after para-
graph (51), 
(3) by redesignating paragraphs (54) through (57), as so 
redesignated by section 2522(e) of Public Law 101-647, as 
paragraphs (53A) through (53D), respectively, 
(4) by redesignating paragraph (56) as in effect immediately 
before the enactment of Public Law 101-647, as paragraph 
(35A) and transferring such paragraph so as to insert it after 
paragraph (35), and 
(5) by redesignating paragraph (57), as in effect imme-
diately before the enactment of Public Law 101-647, as para-
graph (39) and transferring such paragraph so as to insert 
it after paragraph (38). 
108 STAT. 4142 
PUBLIC LAW 103-394—OCT. 22, 1994 
(b) CONFORMING AND RELATED AMENDMENTS TO TITLE 11 OF 
THE UNITED STATES CODE, BASED ON REDESIGNATED DEFINITIONS.— 
(1) Section 101 of title 11 of the United States Code, as amended 
by subsection (a), is amended— 
(A) in paragraph (6) by striking "section 761(9)" and insert-
ing "section 761", 
(B) in paragraph (22) by striking "section 741(7)" and 
inserting "section 741", 
(C) in paragraph (35)(B) by striking "paragraphs (3)" and 
inserting "paragraphs (2IB)", 
(D) in paragraph (49)(B)(ii) by striking "section 761(13)" 
and inserting "section 761", and 
(E) in paragraph (53A)(A), as so redesignated, by striking 
"section 741(2)" and inserting "section 741". 
(2) Section 362(b) of title 11, United States Code, is amended— 
(A) in paragraph (6)— 
(i) by striking "section 761(4)" and inserting "section 
761", 
(ii) by striking "section 741(7)" and inserting "section 
741", 
(iii) by striking "section 101(34), 741(5), or 761(15)" 
and inserting "section 101, 741, or 761", and 
(iv) by striking "section 101(35) or 741(8)" and inserting 
"section 101 or 741", and 
(B) in paragraph (7)-— 
(i) by striking "section 741(5) or 761(15)" and inserting 
"section 741 or 761", and 
(ii) by striking "section 741(8)" and inserting "section 
741". 
(3) Section 507(a)(5) of title 11, United States Code, is 
amended— 
(A) by striking "section 557(b)(1)" and inserting "section 
557(b)", and 
(B) by striking "section 557(b)(2)" and inserting "section 
557(b)". 
(4) Section 546 of title 11, United States Code, is amended— 
(A) in subsection (e)— 
(i) by striking "section 101(34), 741(5), or 761(15)" and 
inserting "section 101, 741, or 761", and 
(ii) by striking "section 101(35) or 741(8)" and inserting 
"section 101 or 741", and 
(B) in subsection (f)— 
(i) by striking "section 741(5) or 761(15)" and inserting 
"section 741 or 761", and 
(ii) by striking "section 741(8)" and inserting "section 
741". 
(5) Section 548(d)(2) of title 11, United States Code, is 
amended— 
(A) in subparagraph (B)— 
(i) by striking "section 101(34), 741(5) or 761(15)" and 
inserting "section 101, 741, or 761", and 
(ii) by striking "section 101(35) or 741(8)" and inserting 
"section 101 or 741", and 
(B) in subparagraph (C)— 
(i) by striking "section 741(5) or 761(15)" and inserting 
"section 741 or 761", and 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4143 
(ii) by striking "section 741(8)" and inserting "section 
741". 
(6) Section 555 of title 11, United States Code, is amended 
by striking "section 741(7)" and inserting "section 741 of this title". 
(7) Section 556 of title 11, United States Code, is amended 
by striking "section 761(4)" and inserting "section 761 of this title". 
(c) CONFORMING AMENDMENTS TO OTHER LAWS BASED ON 
REDESIGNATED DEFINITIONS.—(1) Section 207(c)(8)(D) of the Federal 
Credit Union Act (12 U.S.C. 1787(c)(8)(D)) is amended— 
(A) in clause (ii)(I) by striking "section 741(7)" and inserting 
"section 741", 
(B) in clause (iii) by striking "section 101(24)" and inserting 
"section 101", 
(C) in clause (iv)(I) by striking "section 101(41)" and insert-
ing "section 101", and 
(D) in clause (v) by striking "section 101(50)" and inserting 
"section 101". 
(2) Section 11(e)(8)(D) of the Federal Deposit Insurance Act 
(12 U.S.C. 1821(e)(8)(D)) is amended— 
(A) in clause (ii)(I) by striking "section 741(7)" and inserting 
"section 741", 
(B) in clause (iii) by striking "section 761(4)" and inserting 
"section 761", 
(C) in clause (iv) by striking "section 101(24)" and inserting 
"section 101", 
(D) in clause (v)(I) by striking "section 101(41)" and insert-
ing "section 101", and 
(E) in clause (viii) by striking "section 101(50)" and insert-
ing "section 101". 
(d) OTHER TECHNICAL AMENDMENTS.—^Title 11 of the United 
States Code is amended— 
(1) in section 101— 
(A) in paragraph (33)— 
(i) in subparagraph (A) by striking "(12 U.S.C. 
1813(u))", and 
(ii) in subparagraph (B) by striking "(12 U.S.C. 
1786(r))", 
(B) in paragraph (34) by striking "(12 U.S.C. 1752(7))", 
(C) in paragraph (35)(A) by striking "(12 U.S.C. 
1813(c)(2))", 
(D) in paragraph (48)— 
(i) by striking "(15 U.S.C. 78q-l)", and 
(ii) by striking "(15 U.S.C. 78c(12))", 
(E) in paragraph (49)— 
(i) in subparagraph (A)(xii)— 
(I) by striking "(15 U.S.C. 77a et seq.)", and 
(II) by striking "(15 U.S.C. 77c(b))", and 
(ii) in subparagraph (B)(vi) by striking "(15 U.S.C. 
77c(b))", and 
(F) in paragraph (53D), as so redesignated by sub-
section (a), by striking the period at the end and inserting 
a semicolon, 
(2) in section 109(b)(2) by striking "(12 U.S.C. 1813(h))", 
(3) in section 322(a) by striking "1302, or 1202" and insert-
ing "1202, or 1302", 
(4) in section 346— 
108 STAT. 4144 
PUBLIC LAW 103-394—OCT. 22, 1994 
(A) in subsection (a) by striking "Internal Revenue 
Code of 1954 (26 U.S.C. 1 et seq.)" and inserting "Internal 
Revenue Code of 1986", and 
(B) in subsection (g)(1)(C) by striking "Internal Reve-
nue Code of 1954 (26 U.S.C. 371)" and inserting "Internal 
Revenue Code of 1986", 
(5) in section 348— 
(A) in subsection (b) by striking "1301(a), 1305(a), 
1201(a), 1221, and 1228(a)" and inserting "1201(a), 1221, 
1228(a), 1301(a), and 1305(a)", and 
(B) in subsections (b), (c), (d), £ind (e) by striking "1307, 
or 1208" each place it appears and inserting "1208, or 
1307", 
(6) in section 349(a) by striking "109(f)" and inserting 
"109(g)", 
(7) in section 362— 
(A) 
in 
subsection 
(a) 
by 
striking 
"(15 
U.S.C. 
78eee(a)(3))", and 
(B) in subsection (b)— 
(i) by striking "(15 U.S.C. 78eee(a)(3))", 
(ii) in paragraph (10) by striking "or" at the end, 
(iii) in paragraph (12)— 
(I) by striking "the Ship Mortgage Act, 1920 
(46 App. U.S.C. 911 et seq.)" and inserting "section 
31325 oftitle 46", and 
(II) by striking "(46 App. U.S.C. 1117 and 
1271 et seq., respectively)", 
(iv) in paragraph (13)— 
(I) by striking "the Ship Mortgage Act, 1920 
(46 App. U.S.C. 911 et seq.)" each place it appears 
and inserting "section 31325 oftitle 46", 
(II) by striking "(46 App. U.S.C. 1117 and 
1271 et seq., respectively)", and 
(III) by striking "or" at the end, 
(v) in paragraph (15), as added by Public Law 
101-508, by striking "or" at the end, 
(vi) in paragraph (16), as added by Public Law 
101-508— 
(I) by striking "(20 U.S.C. 1001 et seq.)", and 
(II) by striking the period at the end and 
inserting a semicolon, and 
(vii) in paragraph (14), as added by Public Law 
101-311— 
(I) by striking the period at the end and insert-
ing "; or", 
(II) by redesignating such paragraph as para-
graph (17), and 
(III) by transferring such paragraph so as to 
insert such paragraph after paragraph (16), 
(8) in section 363— 
(A) in subsection (b)(2) by striking "(15 U.S.C. 18a)", 
and 
(B) in subsection (c)(1) by striking "1304, 1203, or 
1204" and inserting "1203, 1204, or 1304", 
(9) in section 364— 
(A) in subsection (a) by striking "1304, 1203, or 1204" 
and inserting "1203, 1204, or 1304", and 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4145 
(B) in subsection (f)— 
(i) by striking "(15 U.S.C. TTe)", and 
(ii) by striking "(15 U.S.C. 77aaa et seq.)", 
(10) in section 365— 
(A) in subsection (d)(6)(C) by striking "the Federal 
Aviation Act of 1958 (49 U.S.C. 1301)" and inserting "sec-
tion 40102 of titie 49", 
(B) in subparagraphs (A) and (B) of subsection (g)(2) 
by strildng "1307, or 1208" each place it appears and insert-
ing "1208, or 1307", 
(C) in subsection (n)(l)(B) by striking "to to" and inserts 
ing"to", 
(D) in subsection (o) by striking "the Federal" the first 
place it appears and all that follows through "successors,", 
and inserting "a Federal depository institutions regulatory 
agency (or predecessor to such agency)", and 
(E) by striking subsection (p), 
(11) in section 507, as amended by section 304— 
(A) in subsection (a)(9) by striking "the Federal" the 
first place it appears and aU that foUows through "succes-
sors, , and inserting "a Federal depository institutions regu-
latory agency (or predecessor to such agency)", and 
(B) in subsection (d) by striking "or (a)(6)" and inserting 
"(a)(6), (a)(7), (a)(8), or (a)(9)", 
(12) in section 522— 
(A) in subsection (b) by striking "Bankruptcy Rules" 
and inserting 'Tederal Rules of Bankruptcy Procediure", 
and 
(B) in subsection (d)(10)(E)(iii)— 
(i) by striking "408, or 409" the first place it 
appears and inserting "or 408", and 
(ii) by striking "Internal Revenue Code of 1954 
(26 U.S.C. 401(a), 403(a), 4030)), 408, or 409)" and 
inserting "Internal Revenue Code of 1986", 
(13) in section 523— 
(A) in subsection (a)— 
(i) by striking "1141,," and inserting "1141,", and 
(ii) in paragraph (2)(C) by striking "(15 U.S.C. 
1601 et seq.)", 
(B) in subsection (b)— 
(i) by striking "(20 U.S.C. 1087-3)", and 
(ii) bv striking "(42 U.S.C. 294f)", and 
(C) in subsection (e) by striking "depository institution 
or insured credit union" and inserting 'Insured depository 
institution", 
(14) in section 524— 
(A) in subsection (a)(3) by striking "1328(c)(1)" and 
inserting "1328(a)(1)", 
(B) in subsection (c)(4) by striking "recission" and 
inserting "rescission", and 
(C) in subsection (d)(lXB)(ii) by adding "and" at the 
end, 
(15) in section 525(a)— 
(A) by striking "(7 U.S.C. 499a-499s)", 
(B) by striking "(7 U.S.C. 181-229)", and 
(C) by striking "(57 Stat 422; 7 U.S.C. 204)", 
108 STAT. 4146 
PUBLIC LAW 103-394—OCT. 22, 1994 
(16) in section 542(e) by sticking "to to" £Uid inserting 
"to^ 
(17) in section 543(d)(1) by striking "section," and inserting 
"section", 
(18) in section 549(b) inserting "the trustee may not avoid 
under subsection (a) of this section" after "involuntary case,", 
(19) in section 553— 
(A) in subsection (a)(1) by striking "other than under 
section 502(b)(3) of this titie", and 
(B) in subsection (b)(1) by striking "362(b)(14)„" and 
inserting "362(b)(14),", 
(20) in section 555 by striking "(15 U.S.C. 78aaa et seq.)", 
(21) in section 559 by striking "(15 U.S.C. TSaaa et seq.)", 
(22) in section 706(a) by striking "1307, or 1208" and insert-
ing "1208, or 130r', 
(23) in section 724(d) by striking "Internal Revenue Code 
of 1954 (26 U.S.C. 6323)" and inserting "Internal Revenue 
Code of 1986", 
(24) in section 726(b)— 
(A) inserting a comma after "section 1112", and 
(B) by inserting "1009," after "chapter under section", 
(25) in section 741(4)(A)(iii) by striking "(15 U.S.C. 78a 
et seq.)", 
(26) in section 742 by striking "(15 U.S.C. 78aaa et seq.)", 
(27) in section 743 by striking "342(a)" and inserting "342", 
(28) in section 745(c) by striking "Internal Revenue Code 
of 1954 (26 U.S.C. 1 et seq.)" and inserting "Internal Revenue 
Code of 1986", 
(29) in section 761— 
(A) in paragraph (1) by striking "(7 U.S.C. 1 et seq.)", 
(B) in paragraph (5) by striking "(7 U.S.C. 6c(b))", 
and 
(C) in paragraph (13) by striking "(7 U.S.C. 23)", 
(30) in section 1104(d), as redesignated by section 211, 
inserting a comma after "interest", 
(31) in section 1123(a)(1) inserting a comma after "titie" 
the last place it appears, 
(32) in section 1129— 
(A) in subsection (a)— 
(i) in paragraph (4) by striking the semicolon at 
the end and inserting a period, and 
(ii) in paragrapn (12) inserting "of titie 28" after 
"section 1930", and 
(B) in subsection (d) by striking "(15 U.S.C. 77e)", 
(33) in section 1145— 
(A) in subsection (a)— 
(i) by striking "does" and inserting "do", 
(ii) by striking "(15 U.S.C. 77e)", and 
(iii) m paragraph (3)(B)(i) by striking "(15 U.S.C. 
78m or 78o(d))", 
(B) in subsection (b)(1) by striking "(15 U.S.C. 
77b(ll))", and 
(C) in subsection (d) by striking "(15 U.S.C. 77aaa 
et seq.)", 
(34) in section 1166(2) by striking "(45 U.S.C. 791(b))", 
(35) in section 1167— 
(A) by striking "(45 U.S.C. 151 et seq.)", and 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4147 
(B) by striking "(45 U.S.C. 156)", 
(36) in section 1226(b)(2)— 
(A) by striking "1202(d)" and inserting "1202(c)", and 
(B) by striking "1202(er and inserting n202(d)", 
(37) in section 1302(b)(3) by striking "and" at tbe end, 
(38) in section 1328(a)— 
(A) in paragraph (2) by striking "(5) or (8)" and insert-
ing "(5), (8), or (9)", and 
(B) by striking the last paragraph (3), and 
(39) in the table of chapters by striking the item relating 
to chapter 15. 
SEC. 502. TITLE 28 OF THE UNITED STATES CODE. 
Section 586(a)(3) of titie 28, United States Code, is amended 
in the matter preceding subparagraph (A) by inserting "12," after 
"11,". 
TITLE VI—BANKRUPTCY REVIEW 
COMMISSION 
National 
Bankruptcy 
Review 
Commission 
Act. 
11 u s e prec. 
101 note. 
SEC. 601. SHORT TITLE. 
This titie may be cited as the "National Bankruptcy Review 
Commission Act". 
SEC. 602. ESTABLISHMENT. 
There is established the National Bankruptcy Review Commis-
sion (referred to as the "Commission"). 
SEC. 603. DUTIES OF THE COMMISSION. 
The duties of the Commission are— 
(1) to investigate and study issues and problems relating 
to title 11, Unitea States Code (commonly known as the "Bank-
ruptcy Code"); 
(2) to evaluate the advisabiUty of proposals and current 
arrangements with respect to such issues and problems; 
(3) to prepare and submit to the Congress, the Chief Jus-
tice, and tiie President a report in accordance with section 
608; and 
(4) to soUcit divergent views of all parties concerned with 
the operation of the bankruptcy system. 
SEC. 604. MEMBERSHIP. 
(a) NUMBER AND AI'POINTMENT.—The Commission shall be com-
posed of 9 members as follows: 
(1) Three members appointed by the President, 1 of whom 
President, 
shall be designated as chairman by me President. 
(2) One member shall be appointed by the President pro 
tempore of the Senate. 
(3) One member shall be appointed by the Minority Leader 
of the Senate. 
(4) One member shall be appointed by the Speaker of 
the House of Representatives. 
(5) One member shall be appointed by the Minority Leader 
of the House of Representatives. 
(6) Two members appointed by the Chief Justice. 
108 STAT. 4148 
PUBLIC LAW 103-394—OCT. 22, 1994 
Members of Congress, and officers and employees of the executive 
branch, shall be ineligible for appointment to the Commission. 
(b) TERM.—^Members of the Commission shall be appointed 
for the life of the Commission. 
(c) QUORUM.—Five members of the Commission shall constitute 
a quorum, but a lesser number may conduct meetings. 
(d) APPOINTMENT DEADLINE.—^The first appointments made 
under subsection (a) shall be made within 60 days after the date 
of enactment of this Act. 
(e) FIRST MEETING.—^The first meeting of the Commission shall 
be called by the chairman and shall be held within 210 days 
after the date of enactment of this Act. 
(f) VACANCY.—A vacancy on the Commission resulting from 
the death or resignation of a member shall not affect its powers 
and shall be filled in the same manner in which the original 
appointment was made. 
(g) CONTINUATION OF MEMBERSHIP.—If any member of the 
Commission who was appointed to the Commission as an officer 
or employee of a government leaves that office, or if any member 
of the Commission who was not appointed in such a capacity 
becomes an officer or employee of a government, the member may 
continue as a member of the Commission for not longer than the 
90-day period beginning on the date the member leaves that office 
or becomes such an officer or employee, as the case may be. 
P>«8»dent. 
(h) CONSULTATION 
PRIOR TO APPOINTMENT.—^Prior to the 
appointment of members of the Commission, the President, the 
President pro tempore of the Senate, the Speaker of the House 
of Representatives, and the Chief Justice shall consult with each 
other to ensure fair and equitable representation of various points 
of view in the Commission and its staff. 
SEC. 605. COMPENSATION OF THE COMMISSION. 
(a) PAY.— 
(1) NONGOVERNMENT EMPLOYEES.—Each member of the 
Commission who is not otherwise employed by the United 
States Government shall be entitled to receive the daily equiva-
lent of the annual rate of basic pay payable for level IV of 
the Executive Schedule under section 5315 of title 5, United 
States Code, for each day (including travel time) during which 
he or she is engaged in the actual performance of duties as 
a member of the Commission. 
(2) GOVERNMENT EMPLOYEES.—^A member of the Commis-
sion who is an officer or employee of the United States Govern-
ment shall serve without additional compensation. 
(b) TRAVEL.—Members of the Commission shall be reimbursed 
for travel, subsistence, and other necessary expenses incurred by 
them in the performance of their duties. 
SEC. 606. STAFF OF COMMISSION; EXPERTS AND CONSULTANTS. 
(a) STAFF.— 
(1) APPOINTMENT.—^The chairman of the Commission may, 
without regard to the civil service laws and regulations, appoint, 
and terminate an executive director and such other personnel 
as are necessary to enable the Commission to perform its 
duties. The employment of an executive director shall be subject 
to confirmation by the Commission. 
(2) COMPENSATION.—^The chairman of the Commission may 
fix the compensation of the executive director and other person-
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4149 
nel without regard to the provisions of chapter 51 and sub-
/ 
chapter II of chapter 53 of title 5, United States Code, relating 
to classification of positions and General Schedule pay rates, 
except that the rate of pay for the executive director and 
other personnel may not exceed the rate payable for level 
V of the Executive Schedule under section 5316 of that title. 
(b) EXPERTS AND CONSULTANTS.—^The Commission may procure 
temporary and intermittent services of experts and consultants 
under section 3109(b) of title 5, United States Code. 
SEC. 607. POWERS OF THE COMMISSION. 
(a) 
HEARINGS 
AND MEETINGS.—The Commission 
or, on 
authorization of the Commission, a member of the Commission, 
may hold such hearings, sit and act at such time and places, 
take such testimony, and receive such evidence, as the Commission 
considers appropriate. The Commission or a member of the Commis-
sion may administer oaths or affirmations to witnesses appearing 
before it. 
(b) OFFICIAL DATA.—^The Commission may secure directly from 
any Federal department, agency, or court information necessary 
to enable it to carry out this title. Upon request of the chairman 
of the Commission, the head of a Federal department or agency 
or chief judge of a Federal court shall furnish such information, 
consistent with law, to the Commission. 
(c) FACILITIES AND SUPPORT SERVICES.—The Administrator of 
General Services shall provide to the Commission on a reimbursable 
basis such facilities and support services as the Commission may 
request. Upon request of the Commission, the head of a Federal 
department or agency may make any of the facilities or services 
of the agency available to the Commission to assist the Commission 
in carrying out its duties under this title. 
(d) EXPENDITURES AND CONTRACTS.—The Commission or, on 
authorization of the Commission, a member of the Commission 
may make expenditures and enter into contracts for the procure-
ment of such supplies, services, and property as the Commission 
or member considers appropriate for the purposes of carrying out 
the duties of the Commission. Such expenditures and contracts 
may be made only to such extent or in such amounts as are 
provided in appropriation Acts. 
(e) MAILS.—^The Commission may use the United States mails 
in the same manner and under the same conditions as other Federal 
departments and agencies of the United States. 
(f) GIFTS.—^The Commission may accept, use, and dispose of 
gifts or donations of services or property. 
SEC. 608. REPORT. 
The Commission shall submit to the Congress, the Chief Jus-
tice, and the President a report not later than 2 years after the 
date of its first meeting. The report shall contain a detailed state-
ment of the findings and conclusions of the Commission, together 
with its recommendations for such legislative or administrative 
action as it considers appropriate. 
SEC. 609. TERMINATION. 
The Commission shall cease to exist on the date that is 30 
days after the date on which it submits its report under section 
608. 
108 STAT. 4150 
PUBLIC LAW 103-394—OCT. 22, 1994 
SEC. 610. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated $1,500,000 to carry 
out this title. 
TITLE VII—SEVERABILITY; EFFECTIVE 
DATE; APPLICATION OF AMENDMENTS. 
11 use 101 
SEC. 701. SEVERABILITY. 
note. 
If any provision of this Act or amendment made by this Act 
or the application of such provision or amendment to any person 
or circumstance is held to be unconstitutional, the remaining provi-
sions of and amendments made by this Act and the application 
of such other provisions and amendments to any person or cir-
cumstance shall not be affected thereby. 
11 use 101 
SEC. 702. EFFECTIVE DATE; APPLICATION OF AMENDMENTS. 
note. 
(a) EFFECTIVE DATE.—Except as provided in subsection (b), 
this Act shall take effect on the date of the enactment of this 
Act. 
(b) APPLICATION OF AMENDMENTS.—(1) Except as provided in 
paragraph (2), the amendments made by this Act shall not apply 
with respect to cases commenced under title 11 of the United 
States Code before the date of the enactment of this Act. 
(2)(A) Paragraph (1) shall not apply with respect to the amend-
ment made by section 111. 
(B) The amendments made by sections 113 and 117 shall apply 
with respect to cases commenced under title 11 of the United 
States Code before, on, and after the date of the enactment of 
this Act. 
(C) Section 1110 of title 11, United States Code, as amended 
by section 201 of this Act, shall apply with respect to any lease, 
as defined in such section 1110(c) as so amended, entered into 
in connection with a settlement of any proceeding in any case 
pending under title 11 of the United States Code on the date 
of the enactment of this Act. 
PUBLIC LAW 103-394—OCT. 22, 1994 
108 STAT. 4151 
(D) The amendments made by section 305 shall apply only 
to agreements entered into after the date of enactment of this 
Act. 
Approved October 22, 1994. 
LEGISLATIVE HISTORY—H.R. 5116: 
HOUSE REPORTS: No. 103-835 (Ck)mm. on the Judiciary). 
CONGRESSIONAL RECORD, Vol. 140 (1994): 
Oct. 4, considered and p£issed House. 
Oct. 6, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 30 (1994): 
Oct. 22, Presidential statement.