[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 498 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 498

   To amend section 365 of title 11, United States Code, relating to 
  protection of assignees of executory contracts and unexpired leases 
          approved by court order in cases reversed on appeal.


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                   IN THE SENATE OF THE UNITED STATES

                             March 3, 1993

   Mr. Kohl introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
   To amend section 365 of title 11, United States Code, relating to 
  protection of assignees of executory contracts and unexpired leases 
          approved by court order in cases reversed on appeal.

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

SECTION. 1. PROTECTION OF ASSIGNEES OF EXECUTORY CONTRACTS AND 
              UNEXPIRED LEASES APPROVED BY COURT ORDER IN CASES 
              REVERSED ON APPEAL.

    Section 365 of title 11, United States Code, is amended by adding 
at the end the following new subsection:
    ``(p) If the assignment of an executory contract or unexpired lease 
under this section is approved by the court, the reversal or 
modification on appeal of the approval or of the assignment does not 
affect the validity of the assignment to an entity that obtained the 
assignment in good faith, whether or not the entity knew of the 
pendency of the appeal, unless the assignment was stayed pending 
appeal.''.

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