[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5116 Enrolled Bill (ENR)]

        H.R.5116

                       One Hundred Third Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
 the twenty-fifth day of January, one thousand nine hundred and ninety-
                                  four


                                 An Act

  
 
  To amend title 11 of the United States Code.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    (a) 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 Pinstitution.
Sec. 115. Meetings of creditors and equity security 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 
          payment 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 payments.
Sec. 215. Amendment to definition of swap agreement.
Sec. 216. Limitation on avoiding powers.
Sec. 217. Small businesses.
Sec. 218. Single asset real estate.
Sec. 219. Leases of personal property.
Sec. 220. Exemption for small business investment companies.
Sec. 221. Payment of taxes with borrowed funds.
Sec. 222. Return 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, animals, and crops.
Sec. 311. Conversion of case under chapter 13.
Sec. 312. Bankruptcy fraud.
Sec. 313. Protection against discriminatory treatment of applications 
          for student loans.

                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. Staff 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:
``, unless 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 compelling circumstances''.
    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 designated, 
        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 provisions of this 
        subsection;'', and
        (2) in paragraph (3)--
            (A) in the matter preceding subparagraph (A) by striking 
        ``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 of--
                ``(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 
Psection''.

SEC. 104. 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 proceeding 
    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, issue an 
    order at any such conference prescribing such limitations and 
    conditions as the court deems appropriate to ensure that the case 
    is handled expeditiously and economically, including 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 statement 
            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 hearing 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 
        ``subsection'', and
            (B) by striking ``Any'' and inserting the following:
    ``(d) Any''.
    (c) Establishment, Operation, and Termination of Bankruptcy 
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 
districts 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 
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 established 
under paragraph (1), made after the expiration of theP 1-year period 
beginning on the date such service is established, the judicial council 
of the circuit shall determine whether a circumstance 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 
circumstances exists, the judicial council may provide for the 
completion 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 Prescribing.--
Section 2073 of title 28, United States Code, is amended--
        (1) in subsection (a)(2) by striking ``section 2072'' and 
    inserting ``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.''.
    SEC. 105. PARTICIPATION BY BANKRUPTCY ADMINISTRATOR AT MEETINGS OF 
      CREDITORS AND EQUITY SECURITY HOLDERS.
    (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 Implementation 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 administrator'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 administrator 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 ELIGIBILITY TO SERVE ON CHAPTER 11 
      COMMITTEES.
    Section 101(41) of title 11, United States Code, is amended to read 
as follows:
        ``(41) `person' includes individual, partnership, and 
    corporation, but does not include governmental unit, except that a 
    governmental unit 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 
    inserting ``$250,000'', and
        (2) by striking ``$350,000'' each place it appears and 
    inserting ``$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.
    ``(2) Not later than March 1, 1998, and at each 3-year interval 
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.
    ``(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 Commission 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 discharge 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 payment or recovery 
with respect to any claim or demand that, under a plan of 
reorganization, 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 
subparagraph (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 injunction, may be commenced only in the district court in which 
such injunction was entered, and such court shall have exclusive 
jurisdiction over any such proceeding without regard to the amount in 
controversy.
    ``(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 property-
        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 
        payments, including dividends;
            ``(III) is to own, or by the exercise of rights granted 
        under such plan would be entitled to own if specified 
        contingencies 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 provisions 
            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 estimates 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 reorganization 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, necessarily 
    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 
of--
        ``(I) the third party's ownership of a financial interest in 
    the debtor, a past or present affiliate of the debtor, or a 
    predecessor 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 changing 
    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 transaction; or
            ``(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;
        ``(II) a predecessor in interest of the debtor; or
        ``(III) 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 
implemented, 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 subsequently 
    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 injunction 
    shall be considered to meet the requirements of subsection 
    (g)(2)(B) for purposes of subsection (g)(2)(A), and to satisfy 
    subsection (g)(4)(A)(ii), if--
            ``(A) the court determined at the time the plan was 
        confirmed that the plan was fair and equitable in accordance 
        with the requirements of section 1129(b);
            ``(B) as part of the proceedings leading to issuance of 
        such injunction and confirmation of such plan, the court had 
        appointed a legal 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 
        confirmation 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 the 
amendments made by subsection (a), shall be construed to 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 bankruptcy 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:

``Sec. 106. Waiver of sovereign immunity

    ``(a) Notwithstanding an assertion of sovereign immunity, sovereign 
immunity is abrogated as to a governmental unit to the extent set forth 
in this section with respect to the following:
        ``(1) Sections 105, 106, 107, 108, 303, 346, 362, 363, 364, 
    365, 366, 502, 503, 505, 506, 510, 522, 523, 524, 525, 542, 543, 
    544, 545, 546, 547, 548, 549, 550, 551, 552, 553, 722, 724, 726, 
    728, 744, 749, 764, 901, 922, 926, 928, 929, 944, 1107, 1141, 1142, 
    1143, 1146, 1201, 1203, 1205, 1206, 1227, 1231, 1301, 1303, 1305, 
    and 1327 of this title.
        ``(2) The court may hear and determine any issue arising with 
    respect to the application of such sections to governmental units.
        ``(3) The court may issue against a governmental unit an order, 
    process, or judgment under such sections or the Federal Rules of 
    Bankruptcy Procedure, including an order or judgment 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 judgment 
    against any governmental unit shall be consistent with appropriate 
    nonbankruptcy law applicable to such governmental unit and, in the 
    case of a money judgment against the United States, shall be paid 
    as if it is a judgment rendered by a district court of the United 
    States.
        ``(5) Nothing in this section shall create any 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.
    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:
    ``(h) Service of Process on an Insured Depository Institution.--
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;
        ``(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:

``Sec. 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 under such 
    security agreement, lease, or conditional sale contract; and
        ``(B) any default, other than a default of a kind specified in 
    section 365(b)(2), under such security agreement, lease, or 
    conditional sale contract--
            ``(i) that occurs before the date of the order is cured 
        before the expiration of such 60-day period; and
            ``(ii) that occurs after the date of the order is cured 
        before the later of--
                ``(I) the date that is 30 days after the date of the 
            default; or
                ``(II) the expiration of such 60-day 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 
    conditionally 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 necessity or permit 
    issued by the Interstate Commerce Commission.
    ``(3) Paragraph (1) applies to a secured party, lessor, or 
conditional vendor acting in its own behalf or acting as trustee or 
otherwise in behalf of another party.
    ``(b) The trustee and the secured party, lessor, or conditional 
vendor whose right to take possession is protected under subsection (a) 
may agree, subject to the court's approval, to extend theP 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 contemporaneous 
    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:

``Sec. 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 the 
    debtor that become due on or after the date of commencement of the 
    case under such security agreement, lease, or conditional sale 
    contract; and
        ``(B) any default, other than a default of a kind described in 
    section 365(b)(2), under such security agreement, lease, or 
    conditional sale contract--
            ``(i) that occurs before the date of 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 of--
                ``(I) the date that is 30 days after the date of the 
            default or event of default; or
                ``(II) the expiration of such 60-day 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 
conditional vendor acting in its own behalf or acting as trustee or 
otherwise in behalf of another party.
    ``(b) The trustee and the secured party, lessor, or conditional 
vendor whose right to take possession is protected under subsection (a) 
may agree, subject to the court's approval, to extend theP 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 contemporaneous 
    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 equipment.''.
    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 
    subsections (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--
        (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 
    perfection 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 
property under which the debtor is the lessor and--
        ``(i) if the rejection by the trustee amounts to such a breach 
    as would entitle the lessee to treat such lease as terminated by 
    virtue of its terms, applicable nonbankruptcy law, or any agreement 
    made by the lessee, then the lessee under such lease may treat such 
    lease as terminated by the rejection; or
        ``(ii) if the term of such lease has commenced, the lessee may 
    retain its rights under such lease (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 property 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 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 pertaining 
to radius, location, use, exclusivity, or tenant mix or balance.
    ``(D) In this paragraph, `lessee' includes any successor, assign, 
or mortgagee permitted under the terms of such lease.
    ``(2)(A) If the trustee rejects a timeshare interest under a 
timeshare plan under which the debtor is the timeshare interest seller 
and--
        ``(i) if the rejection amounts to such a breach as would 
    entitle the timeshare interest purchaser to treat the timeshare 
    plan as terminated under its terms, applicable nonbankruptcy law, 
    or any agreement made by timeshare interest purchaser, the 
    timeshare interest purchaser under the timeshare plan may treat the 
    timeshare plan as terminated by such rejection; or
        ``(ii) if the term of such timeshare interest has commenced, 
    then the timeshare interest purchaser 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 nonperformance.''.
    (b) Technical Amendment.--Section 553(b)(1) of title 11, United 
States Code, is amended by striking ``365(h)(2)'' and inserting 
``365(h)''.

SEC. 206. CONTENTS OF PLAN.

    Section 1123(b) of title 11, United States Code, is amended--
        (1) in paragraph (4) by striking ``and'' at the end,
        (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:
        ``(3) Third, allowed unsecured claims, 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 vacation, 
        severance, and sick leave pay earned by an individual; or
            ``(B) sales commissions earned by an individual or by a 
        corporation with only 1 employee, acting as an independent 
        contractor in the sale of goods or services for the debtor in 
        the ordinary course of the debtor's business if, and only if, 
        during the 12 months preceding that date, at least 75 percent 
        of the amount that the individual or corporation earned by 
        acting as an independent contractor in the sale of goods or 
        services was earned from the debtor;''.
    SEC. 208. EXCLUSION FROM THE ESTATE OF INTERESTS IN LIQUID AND 
      GASEOUS HYDROCARBONS TRANSFERRED BY THE DEBTOR PURSUANT TO 
      PRODUCTION PAYMENT AGREEMENTS.
    (a) Definition.--Section 101 of title 11, United States Code, is 
amended--
        (1) by inserting after paragraph (42) the following:
        ``(42A) `production payment' means a term overriding royalty 
    satisfiable in cash or in kind--
            ``(A) contingent on the production of a liquid or gaseous 
        hydrocarbon from particular real property; and
            ``(B) from a specified volume, or a specified value, from 
        the liquid or gaseous hydrocarbon produced from such property, 
        and determined without regard to production costs;'', and
        (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 entitles the owner thereof to a share of 
    production, or the value thereof, for a term limited by time, 
    quantity, or value realized;''.
    (b) Property of the Estate.--Section 541(b)(4) of title 11, United 
States Code, is amended--
        (1) in subparagraph (A) by striking ``(A)'' and inserting 
    ``(A)(i)'',
        (2) in subparagraph (B)--
            (A) by striking ``(B)'' and inserting ``(ii)'',
            (B) by striking ``such interest'' and inserting ``the 
        interest referred to in clause (i)'', and
            (C) by striking the period at the end and inserting ``; 
        or'', and
        (3) by adding at the end the following:
            ``(B)(i) the debtor has transferred such interest pursuant 
        to a written conveyance of a production payment to an entity 
        that does not participate in the operation of the property from 
        which such production payment is transferred; and
            ``(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 after receipt of such goods by the 
        debtor; or
            ``(B) if such 10-day period expires after the commencement 
        of the case, before 20 days after receipt of such goods by the 
        debtor; and''.

SEC. 210. INVESTMENT OF MONEY OF THE ESTATE.

    Section 345(b) of title 11, United States Code, is amended--
        (1) in paragraph (2) by striking the period at the end and 
    inserting a semicolon, and
        (2) by adding at the end the following:
``unless the court for cause orders otherwise.''.

SEC. 211. ELECTION OF TRUSTEE UNDER CHAPTER 11.

    (a) Election Authorized.--Section 1104 of title 11 of the United 
States Code is amended--
        (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 title, on the 
request of a party in interest made not later than 30 days after the 
court orders the appointment of a trustee under subsection (a), the 
United States trustee shall convene a meeting of creditors for the 
purpose of electing one disinterested person to serve as trustee in the 
case. The election of a trustee shall be conducted in the manner 
provided in subsections (a), (b), and (c) of section 702 of this 
title.''.
    (b) Conforming Amendment.--Section 1106(b) of title 11, United 
States Code, is amended by striking ``1104(c)'' and inserting 
``1104(d)''.
    SEC. 212. RIGHTS OF PARTNERSHIP TRUSTEE AGAINST GENERAL PARTNERS.
    Section 723(a) of title 11, United States Code, is amended by 
striking ``for the full amount of the deficiency'' and inserting ``to 
the extent that under applicable nonbankruptcy law such general partner 
is personally 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 title or under the Federal Rules of 
    Bankruptcy Procedure, except that a claim of a governmental unit 
    shall be timely filed if it is filed before 180 days after the date 
    of the order for relief or such later time as the Federal Rules of 
    Bankruptcy Procedure may 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.--Section 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 of 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 agreement 
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 properties, 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 Pagreement,''.

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--
            ``(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 subparagraph (A); or''.

SEC. 217. SMALL BUSINESSES.

    (a) Definition.--Section 101 of title 11, United States Code, is 
amended by inserting after paragraph (51) the following:
        ``(51C) `small business' means a person engaged in commercial 
    or business activities (but does not 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 
    statement subject to final approval after notice and a hearing;
        ``(2) acceptances and rejections of a plan may be solicited 
    based on a conditionally approved disclosure statement as long as 
    the debtor provides adequate 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 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:
        ``(51B) `single asset real estate' means real property 
    constituting a single property or project, other than residential 
    real property with fewer than 4 residential units, which generates 
    substantially all of the gross income of a debtor and on which no 
    substantial business is being conducted by a debtor other than the 
    business of operating the real property and activities incidental 
    thereto having aggregate noncontingent, liquidated secured debts in 
    an amount no more than $4,000,000;''.
    (b) Automatic Stay.--Section 362(d) of title 11, United States 
Code, is amended--
        (1) in paragraph (1) by striking ``or'' at the end,
        (2) in paragraph (2) by striking the period at the end and 
    inserting ``; or'', and
        (3) by adding at the end the following:
        ``(3) with respect to a stay of an act against 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 within that 90-day period)--
            ``(A) the debtor has filed a plan of reorganization that 
        has a reasonable possibility of being confirmed within a 
        reasonable time; or
            ``(B) the debtor has commenced monthly payments to each 
        creditor whose claim is secured by such real estate (other than 
        a claim secured by a judgment lien or by an unmatured statutory 
        lien), 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. 219. LEASES OF PERSONAL PROPERTY.

    (a) Assumption.--Section 365(b)(2) of title 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 adding at the end the following:
        ``(D) the satisfaction of any penalty rate or provision 
    relating to a default arising from any failure by the debtor to 
    perform nonmonetary obligations under the executory contract or 
    unexpired lease.''.
    (b) Performance.--Section 365(d) of title 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 from or after 60 days after the order for relief in a case 
    under chapter 11 of this title under an unexpired lease of personal 
    property (other than personal property leased to an individual 
    primarily for personal, family, or household purposes), until such 
    lease is assumed or rejected notwithstanding section 503(b)(1) of 
    this title, unless the court, after notice and 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 trustee's obligations under the 
    provisions of subsection (b) or (f). Acceptance of any such 
    performance does not constitute waiver or relinquishment 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 applies to property that is subject to any 
unexpired lease of personal property (to the exclusion of such property 
being subject to an order to grant relief from the stay under section 
362).''.
    SEC. 220. EXEMPTION FOR SMALL BUSINESS INVESTMENT COMPANIES.
    Section 109(b)(2) of title 11, United States Code, is amended by 
inserting after ``homestead association,'' the following: ``a small 
business investment company licensed by the Small Business 
Administration under subsection (c) or (d) of section 301 of the Small 
Business Investment Act of 1958,''.

SEC. 221. 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 relief 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 
the commencement of the case.''.
    (b) Setoff.--Section 553(b)(1) is amended by inserting ``546(h),'' 
after ``365(h),''.

SEC. 223. PROCEEDS OF MONEY ORDER AGREEMENTS.

    Section 541(b) of title 11, United States Code, is amended--
        (1) in paragraph (3) by striking ``or'' at the end and 
    inserting 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:
        ``(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 property of the 
        debtor (notwithstanding 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 
    filing of the petition, to require compliance 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 
        guidelines adopted by the Executive Office of the United States 
        Trustee (which guidelines shall be applied uniformly by the 
        United States trustee except when circumstances warrant 
        different treatment), applications filed for compensation and 
        reimbursement under section 330 of title 11; and
            ``(ii) filing with the court comments with respect to such 
        application and, if the United States Trustee considers it to 
        be appropriate, objections to such application.''.
    (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 professional 
person employed under section 327 or 1103--
        ``(A) reasonable compensation for actual, necessary services 
    rendered by the trustee, examiner, professional person, or attorney 
    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.
    ``(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 administration 
    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 reasonable 
    amount of time commensurate with the complexity, importance, and 
    nature of the problem, issue, or task addressed; and
        ``(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 awarded 
under this section by the amount of any interim compensation awarded 
under section 331, and, if the amount of such interim compensation 
exceeds the amount of compensation awarded under this section, may 
order the return of the excess to the estate.
    ``(6) Any compensation awarded for the preparation of a fee 
application shall be based on the level and skill reasonably required 
to prepare the application.''.

SEC. 225. NOTICES TO CREDITORS.

    Section 342 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(c) If notice is required to be given by the debtor to a creditor 
under this title, any rule, any applicable law, or any order of the 
court, such notice shall contain the name, address, and taxpayer 
identification number of the debtor, but the failure of such notice to 
contain such 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 paragraph 
    (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 payment 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.''.
    SEC. 302. NONDISCHARGEABILITY 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 title 11, United States Code, is amended--
        (1) in paragraph (2)--
            (A) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii), 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 lien shall be 
considered to impair an exemption to the extent that the sum of--
        ``(i) the lien;
        ``(ii) all other liens on the property; and
        ``(iii) the amount of the exemption that the debtor could claim 
    if there were no liens on the property;
exceeds the value that the debtor's interest in the property would have 
in the absence of any liens.
    ``(B) In the case of a property subject to more than 1 lien, a lien 
that has been avoided shall not be considered in making the calculation 
under subparagraph (A) with respect to other liens.
    ``(C) This paragraph shall 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 title 11, United States Code, is 
amended by inserting after paragraph (12) the following:
        ``(12A) `debt for child support' means a debt of a kind 
    specified in section 523(a)(5) of this title for maintenance or 
    support of a child of the debtor;''.
    (b) Relief From Automatic Stay.--Section 362(b)(2) of title 11, 
United States Code, is amended to read as follows:
        ``(2) under subsection (a) of this section--
            ``(A) of the commencement or continuation of an action or 
        proceeding for--
                ``(i) the establishment of paternity; or
                ``(ii) the establishment or modification of an order 
            for alimony, maintenance, or support; or
            ``(B) of the collection of alimony, maintenance, or support 
        from property that is not property of the estate;''.
    (c) Priority of Claims.--Section 507(a) of title 11, United States 
Code, is amended--
        (1) in paragraph (8) by striking ``(8) Eighth'' and inserting 
    ``(9) Ninth'',
        (2) in paragraph (7) by striking ``(7) Seventh'' and inserting 
    ``(8) Eighth'', and
        (3) by inserting after paragraph (6) the following:
        ``(7) Seventh, allowed claims for debts 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, but not to the 
    extent that such debt--
            ``(A) is assigned to another entity, voluntarily, by 
        operation of law, or otherwise; or
            ``(B) includes a liability designated as alimony, 
        maintenance, or support, unless such liability is actually 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 
``lien'' 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 liability is actually 
            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 unit unless--
            ``(A) the debtor does not have the ability 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 expenditures 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 the detrimental consequences to a 
        spouse, former spouse, or child of the debtor;'', and
        (2) in subsection (c)(1) by striking ``or (6)'' each place it 
    appears and inserting ``(6), or (15)''.
    (f) 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 paragraph (8), and
        (3) by inserting after paragraph (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 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, but not to the extent that such debt--
            ``(A) is assigned to another entity, voluntarily, by 
        operation of law, or otherwise; or
            ``(B) includes a liability designated as alimony, 
        maintenance, or support, unless such liability is actually in 
        the nature of alimony, maintenance or support; or''.
    (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 court 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 
amended--
        (1) in section 502(i) by striking ``507(a)(7)'' and inserting 
    ``507(a)(8)'',
        (2) in section 503(b)(1)(B)(i) by striking ``507(a)(7)'' and 
    inserting ``507(a)(8)'',
        (3) in section 523(a)(1)(A) by striking ``507(a)(7)'' and 
    inserting ``507(a)(8)'',
        (4) in section 724(b)(2) by striking ``or 507(a)(6)'' and 
    inserting ``507(a)(6), or 507(a)(7)'',
        (5) in section 726(b) by striking ``or (7)'' and inserting ``, 
    (7), or (8)'',
        (6) in section 1123(a)(1) by striking ``507(a)(7)'' and 
    inserting ``507(a)(8)'',
        (7) in section 1129(a)(9)--
            (i) in subparagraph (B) by striking ``or 507(a)(6)'' and 
        inserting ``, 507(a)(6), or 507(a)(7)'', and
            (ii) in subparagraph (C) by striking ``507(a)(7)'' and 
        inserting ``507(a)(8)''.

SEC. 305. INTEREST ON INTEREST.

    (a) Chapter 11.--Section 1123 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(d) Notwithstanding subsection (a) of this section and sections 
506(b), 1129(a)(7), and 1129(b) of this title, if it is proposed in a 
plan to cure a default the amount necessary to cure the default shall 
be determined in accordance with the underlying agreement and 
applicable nonbankruptcy law.''.
    (b) Chapter 12.--Section 1222 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(d) Notwithstanding subsection (b)(2) of this section and 
sections 506(b) and 1225(a)(5) of this title, if it is proposed in a 
plan to cure a default, the amount necessary to cure the default, shall 
be determined in accordance with the underlying agreement and 
applicable nonbankruptcy law.''.
    (c) Chapter 13.--Section 1322 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(e) Notwithstanding subsection (b)(2) of this section and 
sections 506(b) and 1325(a)(5) of this title, if it is proposed in a 
plan to cure a default, the amount necessary to cure the default, shall 
be determined in accordance with the underlying agreement and 
applicable nonbankruptcy law.''.

SEC. 306. EXCEPTION TO DISCHARGE.

    Section 523(a)(2)(C) of title 11, United States Code, is Pamended--
        (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:
``Sec. 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 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.
    ``(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)(1) 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 
        bankruptcy 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 preparer shall be 
ordered to pay the movant the additional amount of $1,000 plus 
reasonable attorneys' fees and costs incurred.
    ``(j)(1) A debtor for whom a bankruptcy petition 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--
            ``(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 
        education as a bankruptcy petition preparer; or
            ``(III) engaged in any other fraudulent, unfair, or 
        deceptive conduct; and
        ``(ii) injunctive relief is appropriate to prevent the 
    recurrence of such conduct,
the court may enjoin the bankruptcy petition preparer from engaging in 
such conduct.
    ``(B) If the court finds that a bankruptcy petition preparer has 
continually engaged in conduct described in subclause (I), (II), or 
(III) of clause (i) and that an 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 
activities 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 petitions.''.

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--
        ``(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 implements, 
professional books, or tools of the trade of the debtor or a dependent 
of the debtor or farm animals or crops of the debtor or a dependent of 
the 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:

``Sec. 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 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, 
    compensation, 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 corporation, or with 
    intent to defeat the provisions of title 11, knowingly 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 
    contemplation thereof, knowingly and fraudulently conceals, 
    destroys, mutilates, falsifies, or makes a false entry in any 
    recorded information (including books, documents, records, and 
    papers) relating to the property or financial affairs of a debtor; 
    or
        ``(9) after the filing of a case under title 11, knowingly and 
    fraudulently withholds from a 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.

``Sec. 153. Embezzlement against estate

    ``(a) Offense.--A person described in subsection (b) who knowingly 
and fraudulently appropriates to the person's own use, embezzles, 
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.

``Sec. 154. Adverse interest and conduct of officers

    ``A person who, being a custodian, trustee, marshal, or other 
officer of the court--
        ``(1) knowingly purchases, directly or indirectly, any property 
    of the estate of which the person is such an officer in a case 
    under title 11;
        ``(2) knowingly refuses to permit a reasonable opportunity for 
    the inspection by parties in interest of the documents and accounts 
    relating to the 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 documents and 
    accounts relating to the affairs of an estate in the person's 
    charge,
shall be fined not more than $5,000 and shall forfeit the person's 
office, which shall thereupon become vacant.''; and
            (B) by adding at the end the following:

``Sec. 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 document 
    prepared for filing by a debtor in a United States bankruptcy court 
    or a United States district court in connection with a case under 
    this title.
    ``(b) Offense.--If a bankruptcy case or related 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 Procedure, the 
bankruptcy petition preparer shall be fined under this title, 
imprisoned not more than 1 year, or both.

``Sec. 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 insurance to a person that is or 
has been a debtor under this title or a bankrupt or debtor under the 
Bankruptcy Act, or another person with whom the debtor or bankrupt has 
been associated, because the debtor or bankrupt is or has been a debtor 
under this title or a bankrupt or debtor under the Bankruptcy Act, has 
been insolvent before the commencement of a case under this title or 
during the pendency of the case but before the debtor is granted or 
denied a discharge, or has not paid a debt that is dischargeable in the 
case under this title or that was discharged under the Bankruptcy Act.
    ``(2) In this section, `student loan program' means the program 
operated under part B, D, or E of title IV of the Higher Education Act 
of 1965 or a similar program operated under State or local law.''.

                TITLE IV--GOVERNMENTAL BANKRUPTCY ISSUES

SEC. 401. EXCEPTION FROM AUTOMATIC STAY FOR POST-PETITION PROPERTY 
              TAXES.

    Section 362(b) of title 11, United States Code, is amended by 
inserting after paragraph (16) the following:
        ``(18) under subsection (a) of the creation or perfection of a 
    statutory lien for an ad valorem property tax imposed by the 
    District of Columbia, or a political subdivision of a State, if 
    such tax comes due after the filing of the petition.''.

SEC. 402. MUNICIPAL BANKRUPTCY.

    Section 109(c)(2) of title 11, United States Code, is amended by 
striking ``generally authorized'' and inserting ``specifically 
authorized, in its capacity as a municipality or by name,''.

                     TITLE V--TECHNICAL CORRECTIONS

    SEC. 501. AMENDMENTS TO BANKRUPTCY DEFINITIONS, NECESSITATED BY 
      ENACTMENT OF PUBLIC LAW 101-647.
    (a) Alphabetizing and Redesignating 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 (21B) and 
    transferring such paragraph so as to insert it after paragraph 
    (21A),
        (2) by redesignating paragraph (39) as paragraph (51A) and 
    transferring such paragraph so as to insert it after paragraph 
    (51),
        (3) by redesignating paragraphs (54) through (57), as so 
    redesignated by section 2522(e) of Public Law 101-647, as 
    paragraphs (53A) through (53D), respectively,
        (4) by redesignating paragraph (56) as in effect immediately 
    before the enactment of Public Law 101-647, as paragraph (35A) and 
    transferring such paragraph so as to insert it after paragraph 
    (35), and
        (5) by redesignating paragraph (57), as in effect immediately 
    before the enactment of Public Law 101-647, as paragraph (39) and 
    transferring such paragraph so as to insert it after paragraph 
    (38).
    (b) Conforming and Related Amendments to Title 11 of the United 
States Code, Based on 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 
    inserting ``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 (21B)'',
        (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 
Pamended--
        (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 
Pamended--
        (A) in subparagraph (B)--
            (i) by striking ``section 101(34), 741(5) or 761(15)'' and 
        inserting ``section 101, 741, or 761'', and
            (ii) by striking ``section 101(35) or 741(8)'' and 
        inserting ``section 101 or 741'', and
        (B) in subparagraph (C)--
            (i) by striking ``section 741(5) or 761(15)'' and inserting 
        ``section 741 or 761'', and
            (ii) by striking ``section 741(8)'' and 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 
    inserting ``section 101'', and
        (D) in clause (v) by striking ``section 101(50)'' and inserting 
    ``section 101''.
    (2) Section 11(e)(8)(D) of the Federal Deposit 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 
    inserting ``section 101'', and
        (E) in clause (viii) by striking ``section 101(50)'' and 
    inserting ``section 101''.
    (d) Other Technical Amendments.--Title 11 of the United States Code 
is amended--
        (1) in section 101--
            (A) in paragraph (33)--
                (i) in subparagraph (A) by striking ``(12 U.S.C. 
            1813(u))'', and
                (ii) in subparagraph (B) by striking ``(12 U.S.C. 
            1786(r))'',
            (B) in paragraph (34) by striking ``(12 U.S.C. 1752(7))'',
            (C) in paragraph (35)(A) by striking ``(12 U.S.C. 
        1813(c)(2))'',
            (D) in paragraph (48)--
                (i) by striking ``(15 U.S.C. 78q-1)'', and
                (ii) by striking ``(15 U.S.C. 78c(12))'',
            (E) in paragraph (49)--
                (i) in subparagraph (A)(xii)--

                    (I) by striking ``(15 U.S.C. 77a et seq.)'', and
                    (II) by striking ``(15 U.S.C. 77c(b))'', and

                (ii) in subparagraph (B)(vi) by striking ``(15 U.S.C. 
            77c(b))'', and
            (F) in paragraph (53D), as so redesignated by subsection 
        (a), by striking the period at the end and inserting a 
        semicolon,
        (2) in section 109(b)(2) by striking ``(12 U.S.C. 1813(h))'',
        (3) in section 322(a) by striking ``1302, or 1202'' and 
    inserting ``1202, or 1302'',
        (4) in section 346--
            (A) in subsection (a) by striking ``Internal Revenue Code 
        of 1954 (26 U.S.C. 1 et seq.)'' and inserting ``Internal 
        Revenue Code of 1986'', and
            (B) in subsection (g)(1)(C) by striking ``Internal Revenue 
        Code of 1954 (26 U.S.C. 371)'' and inserting ``Internal Revenue 
        Code of 1986'',
        (5) in section 348--
            (A) in subsection (b) by striking ``1301(a), 1305(a), 
        1201(a), 1221, and 1228(a)'' and inserting ``1201(a), 1221, 
        1228(a), 1301(a), and 1305(a)'', and
            (B) in subsections (b), (c), (d), and (e) by striking 
        ``1307, or 1208'' each place it appears and inserting ``1208, 
        or 1307'',
        (6) in section 349(a) by striking ``109(f)'' and inserting 
    ``109(g)'',
        (7) in section 362--
            (A) in subsection (a) by striking ``(15 U.S.C. 
        78eee(a)(3))'', and
            (B) in subsection (b)--
                (i) by striking ``(15 U.S.C. 78eee(a)(3))'',
                (ii) in paragraph (10) by striking ``or'' at the end,
                (iii) in paragraph (12)--

                    (I) by striking ``the Ship Mortgage Act, 1920 (46 
                App. U.S.C. 911 et seq.)'' and inserting ``section 
                31325 of title 46'', and
                    (II) by striking ``(46 App. U.S.C. 1117 and 1271 et 
                seq., respectively)'',

                (iv) in paragraph (13)--

                    (I) by striking ``the Ship Mortgage Act, 1920 (46 
                App. U.S.C. 911 et seq.)'' each place it appears and 
                inserting ``section 31325 of title 46'',
                    (II) by striking ``(46 App. U.S.C. 1117 and 1271 et 
                seq., respectively)'', and
                    (III) by striking ``or'' at the end,

                (v) in paragraph (15), as added by Public Law 101-508, 
            by striking ``or'' at the end,
                (vi) in paragraph (16), as added by Public Law 101-
            508--

                    (I) by striking ``(20 U.S.C. 1001 et seq.)'', and
                    (II) by striking the period at the end and 
                inserting a semicolon, and

                (vii) in paragraph (14), as added by Public Law 101-
            311--

                    (I) by striking the period at the end and inserting 
                ``; or'',
                    (II) by redesignating such paragraph as paragraph 
                (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
            (B) in subsection (f)--
                (i) by striking ``(15 U.S.C. 77e)'', and
                (ii) by striking ``(15 U.S.C. 77aaa et seq.)'',
        (10) in section 365--
            (A) in subsection (d)(6)(C) by striking ``the Federal 
        Aviation Act of 1958 (49 U.S.C. 1301)'' and inserting ``section 
        40102 of title 49'',
            (B) in subparagraphs (A) and (B) of subsection (g)(2) by 
        striking ``1307, or 1208'' each place it appears and inserting 
        ``1208, or 1307'',
            (C) in subsection (n)(1)(B) by striking ``to to'' and 
        inserting ``to'',
            (D) in subsection (o) by striking ``the 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 all that follows through 
        ``successors,'', and inserting ``a Federal depository 
        institutions regulatory 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 ``Federal Rules of Bankruptcy Procedure'', and
            (B) in subsection (d)(10)(E)(iii)--
                (i) by striking ``408, or 409'' the first place it 
            appears and inserting ``or 408'', and
                (ii) by striking ``Internal Revenue Code of 1954 (26 
            U.S.C. 401(a), 403(a), 403(b), 408, or 409)'' and inserting 
            ``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) by 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)(1)(B)(ii) by adding ``and'' at the 
        end,
        (15) in section 525(a)--
            (A) by striking ``(7 U.S.C. 499a-499s)'',
            (B) by striking ``(7 U.S.C. 181-229)'', and
            (C) by striking ``(57 Stat. 422; 7 U.S.C. 204)'',
        (16) in section 542(e) by striking ``to to'' and inserting 
    ``to'',
        (17) in section 543(d)(1) by striking ``section,'' and 
    inserting ``section'',
        (18) in section 549(b) inserting ``the trustee may not avoid 
    under subsection (a) of this section'' after ``involuntary case,'',
        (19) in section 553--
            (A) in subsection (a)(1) by striking ``other than under 
        section 502(b)(3) of this title'', and
            (B) in subsection (b)(1) by striking ``362(b)(14),,'' and 
        inserting ``362(b)(14),'',
        (20) in section 555 by striking ``(15 U.S.C. 78aaa et seq.)'',
        (21) in section 559 by striking ``(15 U.S.C. 78aaa et seq.)'',
        (22) in section 706(a) by striking ``1307, or 1208'' and 
    inserting ``1208, or 1307'',
        (23) in section 724(d) by striking ``Internal Revenue Code of 
    1954 (26 U.S.C. 6323)'' and 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 ``title'' 
    the last place it appears,
        (32) in section 1129--
            (A) in subsection (a)--
                (i) in paragraph (4) by striking the semicolon at the 
            end and inserting a period, and
                (ii) in paragraph (12) inserting ``of title 28'' after 
            ``section 1930'', and
            (B) in subsection (d) by striking ``(15 U.S.C. 77e)'',
        (33) in section 1145--
            (A) in subsection (a)--
                (i) by striking ``does'' and inserting ``do'',
                (ii) by striking ``(15 U.S.C. 77e)'', and
                (iii) in paragraph (3)(B)(i) by striking ``(15 U.S.C. 
            78m or 78o(d))'',
            (B) in subsection (b)(1) by striking ``(15 U.S.C. 
        77b(11))'', and
            (C) in subsection (d) by striking ``(15 U.S.C. 77aaa et 
        seq.)'',
        (34) in section 1166(2) by striking ``(45 U.S.C. 791(b))'',
        (35) in section 1167--
            (A) by striking ``(45 U.S.C. 151 et seq.)'', and
            (B) by striking ``(45 U.S.C. 156)'',
        (36) in section 1226(b)(2)--
            (A) by striking ``1202(d)'' and inserting ``1202(c)'', and
            (B) by striking ``1202(e)'' and inserting ``1202(d)'',
        (37) in section 1302(b)(3) by striking ``and'' at the end,
        (38) in section 1328(a)--
            (A) in paragraph (2) by striking ``(5) or (8)'' and 
        inserting ``(5), (8), or (9)'', and
            (B) by striking the last paragraph (3), and
        (39) in the table of chapters by striking the item relating to 
    chapter 15.

SEC. 502. TITLE 28 OF THE UNITED STATES CODE.

    Section 586(a)(3) of title 28, United States Code, is amended in 
the matter preceding subparagraph (A) by inserting ``12,'' after 
``11,''.

                 TITLE VI--BANKRUPTCY REVIEW COMMISSION

SEC. 601. SHORT TITLE.

    This title may be cited as the ``National Bankruptcy Review 
Commission Act''.

SEC. 602. ESTABLISHMENT.

    There is established the National Bankruptcy Review Commission 
(referred to as the ``Commission'').

SEC. 603. DUTIES OF THE COMMISSION.

    The duties of the Commission are--
        (1) to investigate and study issues and problems relating to 
    title 11, United States Code (commonly known as the ``Bankruptcy 
    Code'');
        (2) to evaluate the advisability of proposals and current 
    arrangements with respect to such issues and problems;
        (3) to prepare and submit to the Congress, the Chief Justice, 
    and the President a report in accordance with section 608; and
        (4) to solicit divergent views of all parties concerned with 
    the operation of the bankruptcy system.

SEC. 604. MEMBERSHIP.

    (a) Number and Appointment.--The Commission shall be composed of 9 
members as follows:
        (1) Three members appointed by the President, 1 of whom shall 
    be designated as chairman by the President.
        (2) One member shall be appointed by the President pro tempore 
    of the Senate.
        (3) One member shall be appointed by the 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.
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.
    (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 equivalent 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 Commission who is an 
    officer or employee of the United States Government 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 personnel without 
    regard to the provisions of chapter 51 and subchapter II of chapter 
    53 of title 5, United States Code, relating to classification of 
    positions and General Schedule pay rates, except that the rate of 
    pay for the 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 Commission 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 procurement 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 Justice, and 
the President a report not later than 2 years after the date of its 
first meeting. The report shall contain a detailed statement of the 
findings and 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.

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.

SEC. 701. SEVERABILITY.

    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 provisions 
of and amendments made by this Act and the application of such other 
provisions and amendments to any person or circumstance shall not be 
affected thereby.

SEC. 702. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (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 amendment 
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.
    (D) The amendments made by section 305 shall apply only to 
agreements entered into after the date of enactment of this Act.







                               Speaker of the House of Representatives.







                            Vice President of the United States and    
                                               President of the Senate.