[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 540 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 540

To improve the administration of the bankruptcy system, address certain 
 commercial issues and consumer issues in bankruptcy, and establish a 
   commission to study and make recommendations on problems with the 
               bankruptcy system, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 10 (legislative day, March 3), 1993

  Mr. Heflin (for himself, Mr. Grassley, Mr. Bryan, Mr. Campbell, Mr. 
 Cochran, Mr. Conrad, Mr. DeConcini, Mr. Durenberger, Mr. Inouye, Mr. 
Kohl, and Mr. Roth) introduced the following bill; which was read twice 
             and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To improve the administration of the bankruptcy system, address certain 
 commercial issues and consumer issues in bankruptcy, and establish a 
   commission to study and make recommendations on problems with the 
               bankruptcy system, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title Improvement.--This Act may be cited as the 
``Bankruptcy Amendments Act of 1993''.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title; table of contents.
              TITLE I--IMPROVED BANKRUPTCY ADMINISTRATION

Sec. 101. Expedited hearing on automatic stay.
Sec. 102. Expedited filing of plans under chapter 11.
Sec. 103. Expedited filing of plans under chapter 12.
Sec. 104. Expedited procedure for reaffirmation of debts.
Sec. 105. Powers of bankruptcy courts.
Sec. 106. Participation by bankruptcy administrator at meetings of 
                            creditors and equity security holders.
Sec. 107. Definition relating to eligibility to serve on chapter 11 
                            committees.
Sec. 108. Increased incentive compensation for trustees.
Sec. 109. Dollar adjustments.
Sec. 110. Premerger notification.
Sec. 111. Allowance of creditor committee expenses.
Sec. 112. Delay of repeal of chapter 12 (family farmers).
Sec. 113. Judicial conference report.
Sec. 114. Service of process.
Sec. 115. Pension plan contributions.
Sec. 116. Meetings of creditors and equity security holders.
               TITLE II--COMMERCIAL ISSUES IN BANKRUPTCY

Sec. 201. Small business chapter.
Sec. 202. Single asset real estate.
Sec. 203. Aircraft equipment, vessels, and rolling stock equipment.
Sec. 204. Unexpired leases of personal property in chapter 11 cases.
Sec. 205. Protection of assignees of executory contracts and unexpired 
                            leases approved by court order in cases 
                            reversed on appeal.
Sec. 206. Protection of security interest in post-petition rents.
Sec. 207. Anti-alienation.
Sec. 208. Exemption.
Sec. 209. Indenture trustee compensation.
Sec. 210. Payment of Federal Internal Revenue taxes with borrowed 
                            funds.
Sec. 211. Return of goods.
Sec. 212. Exception to discharge.
Sec. 213. Proceeds of money order agreements.
Sec. 214. Limitation on liability of noninsider transferee for avoided 
                            transfer.
Sec. 215. Perfection of purchase-money security interest.
Sec. 216. Airport gate leases.
Sec. 217. Trustee duties.
Sec. 218. Payments.
Sec. 219. Seller's right to reclaim goods.
Sec. 220. Payment of insurance benefits to retired employees.
                 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. Protection of child support and alimony.
Sec. 304. Bankruptcy petition preparers.
Sec. 305. Conversion or dismissal.
Sec. 306. Contents of plan.
Sec. 307. Stay of action against codebtor.
Sec. 308. Exemption for household goods.
Sec. 309. Professional fees.
                 TITLE IV--BANKRUPTCY REVIEW COMMISSION

Sec. 401. Short title.
Sec. 402. Establishment.
Sec. 403. Duties of the commission.
Sec. 404. Membership.
Sec. 405. Compensation of the commission.
Sec. 406. Staff of commission; experts and consultants.
Sec. 407. Powers of the commission.
Sec. 408. Report.
Sec. 409. Termination.
Sec. 410. Authorization of appropriations.
                     TITLE V--TECHNICAL CORRECTIONS

Sec. 501. Title 11, United States Code.
Sec. 502. Title 28, United States Code.
   TITLE VI--SEVERABILITY; EFFECTIVE DATE; APPLICATION OF AMENDMENTS

Sec. 601. Severability.
Sec. 602. 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 ``, 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'' before the period at the end.

SEC. 102. EXPEDITED FILING OF PLANS UNDER CHAPTER 11.

    Section 1121(d) of title 11, United States Code, is amended--
            (1) by striking ``On'' and inserting ``(1) Subject to 
        paragraph (2), on''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Under paragraph (1)--
            ``(A) the 120-day period referred to in this section may 
        not be increased beyond the 1-year period beginning on the date 
        of the order for relief under this chapter; and
            ``(B) the 180-day period referred to in this section may 
        not be increased beyond the 425-day period beginning on the 
        date of the order for relief under this chapter,
unless the need for such an increase is attributable to circumstances 
for which the debtor should not justly be held accountable.''.

SEC. 103. EXPEDITED FILING OF PLANS UNDER CHAPTER 12.

    Section 1221 of title 11, United States Code, is amended by 
striking ``an extension is substantially justified'' and inserting 
``the need for an extension is attributable to circumstances for which 
the debtor should not justly be held accountable''.

SEC. 104. 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 
                designated by subparagraph (A), the following new 
                subparagraph:
                    ``(B) such agreement contains a clear and 
                conspicuous statement that advises the debtor that the 
                agreement is not required under this title, under 
                nonbankruptcy law, or under any agreement that is 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; and
                    (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 new subparagraph:
                    ``(C) the attorney fully advised the debtor of the 
                legal effect and consequences of--
                            ``(i) an agreement of the kind described 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 the agreement'' after ``this 
section''.

SEC. 105. POWERS OF BANKRUPTCY COURTS.

    (a) Status Conferences.--Section 105 of title 11, United States 
Code, is amended by adding at the end the following new subsection:
    ``(d) The court, on its own motion or on the motion of any 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 it would be inconsistent with another 
        provision of this title or with applicable Bankruptcy Rules, 
        issue an order at any such conference prescribing such 
        limitations and conditions as the court deems to be appropriate 
        to ensure that the case is handled expeditiously and 
        economically, including an order that--
                    ``(A) sets the date by which the debtor must accept 
                or reject an executory contract or unexpired lease; or
                    ``(B) in a case under chapter 11--
                            ``(i) sets a date by which the debtor, or 
                        the trustee if one has been appointed, shall 
                        file a disclosure statement and plan;
                            ``(ii) sets a date by which the debtor, or 
                        the 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) fixes the notice to be provided 
                        regarding the hearing on approval of the 
                        disclosure statement;
                            ``(v) provides that the hearing on approval 
                        of the disclosure statement may be combined 
                        with the hearing on confirmation of the plan; 
                        and
                            ``(vi) directs the use of standard-form 
                        disclosure statements, plans, or other forms 
                        that have been adopted by the court.''.
    (b) Abstention.--Section 1334 of title 28, United States Code, is 
amended--
            (1) by redesignating subsection (d) as subsection (e);
            (2) in the second sentence of subsection (c)(2) by striking 
        ``Any'' and inserting the following:
    ``(d) Any''; and
            (3) in the first sentence of subsection (d), as designated 
        by paragraph (2), by inserting ``(other than a decision not to 
        abstain in a proceeding described in subsection (c)(2))'' after 
        ``subsection''.
    (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 
        new paragraphs:
    ``(1)(A) Except as provided in subparagraph (B), 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 parties to an 
appeal, appeals under subsection (a).
    ``(B)(i) The judicial council of a circuit need not establish a 
bankruptcy appellate panel service if the judicial council finds that--
            ``(I) there are insufficient judicial resources available 
        in the circuit; or
            ``(II) establishment of such a service would result in 
        undue delay or increased cost to parties in cases under title 
        11.
    ``(ii) Not later than 90 days after making a finding under clause 
(i), the judicial council shall submit to the Judicial Conference a 
report containing the factual basis of the finding.
    ``(2)(A) A judicial council may reconsider a finding described in 
paragraph (1)(B) at any time.
    ``(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 the 1-year period 
beginning on the date on which the service is established, the judicial 
council of the circuit shall determine whether a circumstance described 
in paragraph (1)(B)(i) (I) or (II) exists.
    ``(C) On its own motion, after the expiration of the 3-year period 
beginning on the date on which a bankruptcy appellate panel service is 
established under paragraph (1), the judicial council of a circuit may 
determine whether a circumstance described in paragraph (1)(B)(i) (I) 
or (II) exists.
    ``(D) If the judicial council of a circuit finds that a 
circumstance described in paragraph (1)(B)(i) (I) or (II) exists, the 
judicial council may provide for the completion of the appeals then 
pending before a bankruptcy appellate panel service and the orderly 
termination of the service.
    ``(3) Bankruptcy judges appointed under paragraph (1) shall be 
appointed for a term of 2 years and may be reappointed under that 
paragraph.''; and
            (4) by inserting after paragraph (4), as redesignated by 
        paragraph (2), the following new paragraphs:
    ``(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 the service may not hear an appeal originating in the 
district for which the member is appointed or designated under section 
152.
    ``(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 the service to hear and determine appeals originating in 
that 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) An appeal'' and 
        inserting the following:
    ``(c)(1) Subject to subsection (b), an 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 the appeal heard by the district court.
    ``(2) An appeal''.
    (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.--Section 2075 of title 28, 
United States Code, is amended by striking ``ninety days'' and 
inserting ``180 days''.

SEC. 106. 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; 100 Stat. 
3123), or the bankruptcy administrator's designee, may preside at--
            (1) a meeting of creditors convened under section 341(a) of 
        title 11, United States Code; and
            (2) a 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. 107. DEFINITION RELATING TO ELIGIBILITY TO SERVE ON CHAPTER 11 
              COMMITTEES.

    The definition of ``person'' in section 101 of title 11, United 
States Code, as amended by section 501(a), is amended to read as 
follows:
            ```person' includes an individual, partnership, and 
        corporation, but does not include a 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, to be a 
        person with respect to such asset or such benefit.''.

SEC. 108. 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 ``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. 109. 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 ``unsecured debts of less than $100,000 and 
        noncontingent, liquidated, secured debts of less than 
        $350,000'' and inserting ``debts of less than $1,000,000''; and
            (2) by striking ``unsecured debts that aggregate less than 
        $100,000 and noncontingent, liquidated, secured debts of less 
        than $350,000'' and inserting ``debts in the aggregate of less 
        than $1,000,000''.
    (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 (3)(B) by striking ``$2,000'' and 
        inserting ``$4,000'';
            (2) in paragraph (4)(B)(i) by striking ``$2,000'' and 
        inserting ``$4,000'';
            (3) in paragraph (5) by striking ``$2,000'' and inserting 
        ``$4,000''; and
            (4) 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) Appointment of Examiner in Certain Circumstances.--Section 
1104(b)(2) of title 11, United States Code, is amended by striking 
``$5,000,000'' and inserting ``$10,000,000''.

SEC. 110. PREMERGER NOTIFICATION.

    Section 363(b)(2) (A) and (B) of title 11, United States Code, are 
amended to read as follows:
                    ``(A) notwithstanding subsection (a) of that 
                section, the notification required to be given by the 
                debtor shall be given by the trustee; and
                    ``(B) notwithstanding subsection (b) of that 
                section, the required waiting period shall end on the 
                10th day after the date of receipt of the notification, 
                unless the waiting period is extended--
                            ``(i) pursuant to subsection (e)(2) or 
                        (g)(2) of that section; or
                            ``(ii) by the court, after notice and a 
                        hearing.''.

SEC. 111. ALLOWANCE OF CREDITOR COMMITTEE EXPENSES.

    Section 503(b) of title 11, United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (5);
            (2) by striking the period at the end of paragraph (6) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(7) the actual, necessary expenses incurred by a member 
        of a committee appointed under section 1102 in the performance 
        of the duties of the committee, other than claims for 
        compensation for services rendered as a member of the 
        committee.''.

SEC. 112. DELAY OF REPEAL OF CHAPTER 12 (FAMILY FARMERS).

    Section 302(f) of the Bankruptcy Judges, United States Trustees, 
and Family Farmer Bankruptcy Act of 1986 (11 U.S.C. 1201 note; 100 
Stat. 3124) is amended by striking ``October 1, 1993'' and inserting 
``October 1, 1998''.

SEC. 113. JUDICIAL CONFERENCE REPORT.

    Not later than 180 days after the date of enactment of this Act, 
the Judicial Conference of the United States shall produce and submit 
to the appropriate committees of Congress a report containing a 
description of--
            (1) the efforts of the Federal judiciary to automate and 
        computerize the Federal bankruptcy courts;
            (2) the types of information that are currently available 
        to Congress and the public regarding the number, size, and 
        types of bankruptcy cases filed in the Federal courts;
            (3) the types of additional information that the Federal 
        judiciary believes are necessary and desirable to enhance its 
        ability to manage the affairs of the bankruptcy system; and
            (4) the projected timetable for being able to supply those 
        additional types of information to Congress and the public in 
        the future.

SEC. 114. SERVICE OF PROCESS.

    Rule 7004(b)(3) of the Bankruptcy Rules is amended--
            (1) by inserting ``, by certified or registered mail,'' 
        after ``complaint''; and
            (2) by inserting ``, by certified or registered mail,'' 
        after ``copy''.

SEC. 115. PENSION PLAN CONTRIBUTIONS.

    (a) Treatment as Administrative Expenses.--Section 503(b) of title 
11, United States Code, as amended by section 405, is amended--
            (1) by striking ``and'' at the end of paragraph (6);
            (2) by striking the period at the end of paragraph (7) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(8) minimum funding contributions to an employee pension 
        benefit plan for which the debtor is liable, which accrue on or 
        after the date of commencement of the case (regardless of the 
        time such contribution comes due), under section 412 of the 
        Internal Revenue Code of 1986 and section 302 of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1082).''.
    (b) Payment or Postponement of Minimum Funding Contributions Due 
Pension Plans.--
            (1) In general.--Subchapter I of chapter 11 of title 11, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec. 1115. Contributions to certain employee pension benefit plans
    ``(a) Timely Payment of Contributions.--Except as provided in 
subsection (b), the debtor in possession, or the trustee if one has 
been appointed, shall make any minimum funding contributions for which 
the debtor is liable, which accrue on or after the date of commencement 
of the case (regardless of the time such contribution comes due), under 
section 412 of the Internal Revenue Code of 1986 and section 302 of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1082).
    ``(b) Postponement of Contributions.--(1)(A) Subject to paragraph 
(2), the court may, on motion of any party and after notice and 
hearing, determine that the making of all or part of a minimum funding 
contribution required to be made by a debtor to a pension plan may be 
postponed until a date that is not later than--
            ``(i) the effective date of a plan of reorganization 
        confirmed under section 1129; or
            ``(ii) if the case is converted to a case under chapter 7, 
        the date on which a distribution of property is made under 
        section 726.
    ``(B) In making a determination under subparagraph (A), the court 
shall take into account the requirements of the estate.
    ``(C) Interest shall accrue on the amount of a contribution that is 
postponed from the date on which the contribution became due to the 
date of payment at the rate specified in section 412(m) of the Internal 
Revenue Code of 1986 and section 302(e) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1082(e)).
    ``(2)(A) Before permitting payment of all or part of a contribution 
to be postponed, the court shall grant security to the pension plan 
and, in the case of a plan covered under section 4021 of the Employee 
Retirement Security Act of 1974 (29 U.S.C. 1321), the Pension Benefit 
Guaranty Corporation, for the amount of a contribution that is 
postponed, affording adequate protection in accordance with section 
364(d)(1)(B).
    ``(B) If the debtor in possession or trustee fails to make a 
postponed contribution on the date on which it is to be made under an 
order issued under paragraph (1), the pension plan shall be permitted 
to foreclose on the security provided under subparagraph (A).
    ``(c) Notice.--The administrator of the pension plan and, in the 
case of a plan covered under section 4021 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1321), the Pension Benefit 
Guaranty Corporation, shall be given notice of and may participate in 
any hearing seeking postponement of a contribution or foreclosure under 
this section.''.
            (2) Technical amendment.--The chapter analysis for chapter 
        11 of title 11, United States Code, is amended by inserting 
        after the item for section 1114 the following new item:

``1115. Contributions to certain employee pension benefit plans.''.
    (c) Clarification of Existing Law.--
            (1) Application of amendment.--The amendment of section 550 
        of title 11, United States Code, made by section 214 shall 
        apply with respect to a transfer to a pension plan that is 
        subject to the minimum funding requirements of section 412 of 
        the Internal Revenue Code of 1986 and section 302 of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1082) only if the transfer is the subject of a motion or 
        proceeding seeking avoidance of the transfer that is filed on 
        or after the date of passage of this Act in the Senate.
            (2) Purpose to clarify.--(A) In making the amendments made 
        by subsections (a) and (b), it is the purpose of Congress to 
        clarify the meaning of the provisions that are amended as they 
        existed prior to the date of enactment of this Act.
            (B) The amendments made by subsections (a) and (b) shall 
        not be applied so as to supersede or alter any agreement or 
        understanding (or modifications thereto before or after 
        enactment) regarding a debtor's minimum funding contributions 
        entered into among a debtor, the Internal Revenue Service, and 
        the Pension Benefit Guaranty Corporation prior to the date of 
        enactment of this Act. If any agreement or understanding 
        referenced in the preceding sentence is set aside or not 
        implemented because of the act or omission of the Pension 
        Benefit Guaranty Corporation, the law applicable to all matters 
        in that proceeding shall be determined without regard to 
        subsections (a) or (b).

SEC. 116. MEETINGS OF CREDITORS AND EQUITY SECURITY HOLDERS.

    Section 341 of title 11, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d) Prior to the conclusion of the meeting of creditors or equity 
security holders, the United States trustee shall orally examine the 
debtor under oath and make recommendations on a preserved record 
regarding the debtor's knowledge 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;
            ``(4) the effect of reaffirming a debt, including the 
        debtor's knowledge of the provisions of section 524(d);
            ``(5) the debtor's duties under section 521; and
            ``(6) the potential penalties and fines for committing 
        fraud or other abuses of this title.''.

               TITLE II--COMMERCIAL ISSUES IN BANKRUPTCY

SEC. 201. SMALL BUSINESS CHAPTER.

    (a) Definition.--Section 101 of title 11, United States Code, is 
amended by inserting in its proper alphabetical position the following 
new definition:
            `` `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 
        liquidated secured and unsecured debts as of the date of the 
        petition do not exceed $2,500,000.''.
    (b) Who May Be a Debtor Under Chapter 10.--Section 109 is amended 
by adding at the end the following new subsection:
    ``(h) Only a small business may be a debtor under chapter 10.''.
    (c) Temporary Chapter Applicable to Small Businesses.--Title 11, 
United States Code, is amended by inserting after chapter 9 the 
following new chapter:

                     ``CHAPTER 10--SMALL BUSINESSES

        ``subchapter i--officers, administration, and the estate

``Sec.
``1001.  Definitions for this chapter.
``1002.  Commencement of case.
``1003.  Trustee.
``1004.  Rights and powers of debtor.
``1005.  Removal of debtor as debtor-in-possession.
``1006.  Property of the estate.
``1007.  Conversion or dismissal.
                       ``subchapter ii--the plan

``1021.  Filing of plan.
``1022.  Contents of plan.
``1023.  Postpetition disclosure and solicitation.
``1024.  Modification of plan before confirmation.
``1025.  Confirmation hearing.
``1026.  Confirmation of plan.
``1027.  Payments.
``1028.  Effect of confirmation.
``1029.  Modification of plan after confirmation.
``1030.  Revocation of order of confirmation.

        ``Subchapter I--Officers, Administration, and the Estate

``Sec.  1001. Definitions for this chapter
    ``In this chapter, `disposable income' means income that is 
received by a debtor and that is not reasonably necessary to be 
expended for the payment of expenditures necessary for the 
continuation, preservation, and operation of the debtor's business.
``Sec.  1002. Commencement of case
    ``(a) Election by Debtor.--A person that is eligible to be a small 
business debtor may commence a case under this chapter by filing a 
voluntary petition electing to be treated as a small business.
    ``(b) Conversion.--
            ``(1) This chapter to chapter 11.--Upon the motion of a 
        party in interest, and after notice and a hearing, the court 
        may determine that a person subject to an order for relief 
        electing treatment under this chapter does not qualify as a 
        small business, and that the case shall be converted to a case 
        under chapter 11, 12, or 13.
            ``(2) Compensation of trustee.--Prior to the court's 
        conversion of a case under this section, the court shall charge 
        upon and require to be paid from the estate such compensation 
        as the court finds reasonable under the circumstances to 
        compensate the trustee appointed and serving under section 
        1003.
``Sec.  1003. Trustee
    ``(a) Person To Serve.--If the United States trustee has appointed 
a person under section 586(b) of title 28 to serve as a standing 
trustee in cases under this chapter and if that person qualifies as a 
trustee under section 322, that person shall serve as a trustee in any 
case filed under this chapter. If such a person has not been appointed, 
the United States trustee shall appoint one disinterested person to 
serve as trustee in the case or the United States trustee may serve as 
trustee in the case.
    ``(b) Duties.--The trustee shall--
            ``(1) perform the duties described in section 704 (2), (3), 
        (5), (6), (7), and (9);
            ``(2) perform the duties described in section 1106(a) (3) 
        and (4) if the court, for cause and on a request of a party in 
        interest, the trustee, or the United States trustee, so orders;
            ``(3) appear and be heard at any hearing that concerns--
                    ``(A) the value of property subject to a lien;
                    ``(B) the operation of the business activity of the 
                person by the debtor;
                    ``(C) the filing of a plan and the approval of a 
                disclosure statement;
                    ``(D) confirmation of a plan;
                    ``(E) modification of a plan after confirmation; or
                    ``(F) the sale of property of the estate;
            ``(4) ensure that the debtor timely files a plan and 
        disclosure statement;
            ``(5) ensure that the debtor commences making timely 
        payments required by a confirmed plan;
            ``(6) if the debtor ceases to be a debtor-in-possession, 
        perform the duties described in sections 704(8) and 1106(a) 
        (1), (2), (6), and (7);
            ``(7) investigate the financial affairs of the debtor 
        including, but not limited to, the proper use of disposable 
        income;
            ``(8) file and serve the report required by section 
        1029(d); and
            ``(9) file such motions as are appropriate under section 
        1029.
``Sec.  1004. Rights and powers of debtor
    ``Subject to such limitations as the court may prescribe, a debtor-
in-possession shall have all the rights, other than the right to 
compensation under section 330, and powers, and shall perform all the 
functions and duties, except the duties described in section 1106(a) 
(3) and (4), of a trustee serving in a case under chapter 11, including 
operating the debtor's business activities.
``Sec.  1005. Removal of debtor as debtor-in-possession
    ``(a) Order for Cause.--On request of a party in interest, and 
after notice and a hearing, the court shall order that the debtor shall 
not be a debtor-in-possession if cause, including fraud, dishonesty, 
incompetence, or gross mismanagement of the affairs of the debtor, 
either before or after the commencement of the case, is shown.
    ``(b) Reinstatement.--On request of a party in interest, and after 
notice and a hearing, the court may reinstate the debtor-in-possession.
``Sec.  1006. Property of the estate
    ``(a) Property Included.--Property of the estate includes, in 
addition to property described in section 541, all property of the kind 
specified in that section that the debtor acquires after the 
commencement of the case but before the case is closed, dismissed, or 
converted to a case under chapter 7, whichever comes first.
    ``(b) Possession.--Except as provided in section 1005 or in a 
confirmed plan or order confirming a plan, a debtor shall remain in 
possession of all property of the estate.
``Sec.  1007. Conversion or dismissal
    ``(a) Conversion by Debtor.--A debtor may convert a case under this 
chapter to a case under chapter 7 at any time if the debtor may be a 
debtor under that chapter. Any waiver of the right to convert under 
this subsection is unenforceable.
    ``(b) Dismissal by Debtor.--On request of the debtor at any time, 
if the case has not been converted under section 706 or 1112, the court 
may dismiss a case under this chapter.
    ``(c) Conversion or Dismissal at Request of Party in Interest.--
            ``(1) In general.--On request of a party in interest, and 
        after notice and a hearing, the court may convert a case under 
        this chapter to a case under chapter 7 (if the debtor may be a 
        debtor under this chapter) or may dismiss the case for cause.
            ``(2) Cause.--For purposes of paragraph (1), cause 
        includes--
                    ``(A) unreasonable delay or gross mismanagement by 
                the debtor that is prejudicial to creditors;
                    ``(B) nonpayment of any fees and charges required 
                under chapter 123 of title 28;
                    ``(C) failure to file a plan timely under section 
                1021;
                    ``(D) failure to file a disclosure statement timely 
                under section 1023;
                    ``(E) failure to commence making timely payments 
                required by a confirmed plan;
                    ``(F) denial of confirmation of a plan under 
                section 1026 or denial of a request made for additional 
                time to filing another plan or a modification of a 
                plan;
                    ``(G) material default by a debtor with respect to 
                a term of a confirmed plan;
                    ``(H) revocation of an order of confirmation under 
                section 1030 or denial of confirmation of a modified 
                plan under section 1029;
                    ``(I) termination of a confirmed plan by reason of 
                the occurrence of a condition specified in the plan; 
                and
                    ``(J) continuing loss to or diminution of the 
                estate and absence of a reasonable likelihood of 
                rehabilitation.
    ``(d) Compensation of Trustee.--Prior to the court's conversion or 
dismissal of a case under this section, the court shall charge upon and 
require to be paid from the estate such compensation as the court finds 
reasonable under the circumstances to compensate the trustee appointed 
and serving under section 1003.

                       ``Subchapter II--The Plan

``Sec.  1021. Filing of plan
    ``The debtor shall file a plan not later than 90 days after the 
date of entry of the order for relief under this chapter, except that 
the court may, for cause shown, and after notice and hearing, shorten 
or extend that period if such shortening or extension is substantially 
justified.
``Sec.  1022. Contents of plan
    ``(a) Required Contents.--The plan shall--
            ``(1) provide for the submission of all or such portion 
        future earnings or other future income of the debtor to the 
        supervision and control of the trustee as is necessary for the 
        execution of the plan; and
            ``(2) if the plan classifies claims and interests, provide 
        the same treatment for each claim or interest within a 
        particular class unless the holder of a particular claim or 
        interest agrees to less favorable treatment.
    ``(b) Additional Contents.--Subject to subsections (a) and (c), the 
plan may--
            ``(1) designate a class or classes of unsecured claims, as 
        provided in section 1122, but may not discriminate unfairly 
        against any class so designated; however, the plan may treat 
        claims for a consumer debt differently from other unsecured 
        claims if another individual is liable on the consumer debt 
        with the debtor;
            ``(2) modify the rights of holders of secured claims or 
        holders of unsecured claims, or leave unaffected the rights of 
        holders of any class of claims, but the plan may not modify a 
        claim pursuant to section 506 of a person holding a primary or 
        junior security interest in real property or a manufactured 
        home (as defined in section 603(6) of the National Manufactured 
        Housing Construction and Safety Standards Act of 1974 (42 
        U.S.C. 5402(6)) that is the debtor's principal residence, 
        except that the plan may modify the claim of a person holding 
        such a junior security interest that was undersecured at the 
        time the interest attached to the extent that the interest 
        remains undersecured;
            ``(3) provide for the curing or waiving of any default;
            ``(4) provide for payments on any unsecured claim to be 
        made concurrently with payments on any secured claim or any 
        other unsecured claim;
            ``(5) notwithstanding paragraph (2), provide for the curing 
        of any default within a reasonable time and maintenance of 
        payments while the case is pending on any unsecured claim or 
        secured claim on which the last payment is due after the date 
        on which the final payment under the plan is due;
            ``(6) subject to section 365, provide for the assumption, 
        rejection, or assignment of any executory contract or expired 
        lease of the debtor not previously rejected under that section;
            ``(7) provide for the payment of all or part of a claim 
        against the debtor from the property of the estate or property 
        of the debtor;
            ``(8) provide for the sale of all or any part of the 
        property of the estate among those having an interest in such 
        property;
            ``(9) provide for payment of allowed secured claims, 
        consistent with section 1026(a)(5), over a period exceeding the 
        period permitted under section 1022(c);
            ``(10) provide for the vesting of property of the estate on 
        confirmation of the plan or at a later time, in the debtor of 
        any other entity; and
            ``(11) include any other appropriate provision not 
        inconsistent with this title.
    ``(c) Limitation.--Except as provided in subsection (b)(5) and (9), 
the plan may not provide for payments over a period that is longer than 
3 years unless the court for cause approves a longer period, but the 
court may not approve a period that is longer than 5 years.
``Sec.  1023. Postpetition disclosure and solicitation
    ``(a) Plan and Disclosure Statement.--In a case under this chapter, 
an acceptance or rejection of a plan may not be solicited after the 
commencement of the case from a holder of a claim or interest with 
respect to the claim or interest unless, at the time or before such 
solicitation, there is transmitted to the holder the plan or a summary 
of the plan and a written disclosure statement that includes 
information sufficient to show whether or not the plan meets the 
requirements of section 1026.
    ``(b) Form.--The court may require that the summary of the plan and 
the disclosure statement employ a standard form approved by the court.
``Sec.  1024. Modification of plan before confirmation
    ``(a) In General.--A debtor may modify a plan at any time before 
confirmation but may not modify the plan so that the plan as modified 
fails to meet the requirements of section 1022.
    ``(b) Effect.--After a debtor files a modification under this 
section, the plan as modified becomes the plan.
    ``(c) Acceptance.--A holder of a secured claim that has accepted or 
rejected a plan is deemed to have accepted or rejected, as the case may 
be, the plan as modified, unless--
            ``(1) the modification provides for a change in the rights 
        of the holder under the plan before modification; and
            ``(2) the holder changes the holder's previous acceptance 
        or rejection.
``Sec.  1025. Confirmation hearing
    ``(a) Hearing.--After expedited notice, the court shall hold a 
hearing on confirmation of the plan.
    ``(b) Objection to Confirmation.--A party in interest, the trustee, 
or the United States trustee may object to the confirmation of the 
plan.
    ``(c) Objection to Disclosure of Information.--A party in interest, 
the trustee, or the United States trustee may object to the disclosure 
of information that is required to be disclosed under section 1023.
    ``(d) Conclusion of Hearing.--Except for cause, the hearing shall 
be concluded not later than 45 days after the filing of the plan.
``Sec.  1026. Confirmation of plan
    ``(a) Criteria.--Except as provided in subsection (b), the court 
shall confirm a plan if--
            ``(1) the plan complies with all applicable provisions of 
        this title;
            ``(2) any fee, charge, or amount required under chapter 123 
        of title 28, or by the plan, to be paid before confirmation, 
        has been paid;
            ``(3) the plan has been proposed in good faith and not by 
        any means forbidden by law;
            ``(4) the value of property to be distributed under the 
        plan on account of each unsecured claim, as of the effective 
        date of the plan, is not less than the amount that would be 
        paid on the claim if the estate of the debtor were to be 
        liquidated under chapter 7 on that date;
            ``(5) with respect to each allowed secured claim provided 
        for by the plan--
                    ``(A) the holder of the claim has accepted the 
                plan;
                    ``(B)(i) the plan provides that the holder of the 
                claim will retain the lien securing the claim; and
                    ``(ii) the value of property to be distributed by 
                the trustee or the debtor under the plan on account of 
                the claim, as of the effective date of the plan, is not 
                less than the allowed amount of the claim; or
                    ``(C) the debtor surrenders the property securing 
                the claim to the holder;
            ``(6) the debtor will be able to make all payments under 
        the plan and to comply with the plan;
            ``(7) except to the extent that the holder of a claim has 
        agreed to a different treatment of the claim, the plan provides 
        that--
                    ``(A) with respect to a claim of a kind described 
                in section 507(a) (1) or (2), on the effective date of 
                the plan, the holder of the claim will receive on 
                account of the claim cash equal to the allowed amount 
                of the claim;
                    ``(B) with respect to a class of claims of a kind 
                described in section 507(a) (3), (4), (5), or (6), each 
                holder of a claim of the class will receive cash or 
                deferred cash payments of a value, as of the effective 
                date of the plan, equal to the allowed amount of such 
                claims; and
                    ``(C) with respect to a claim of a kind described 
                in section 507(a)(7), the holder of the claim will 
                receive on account of the claim deferred cash payments, 
                over a period ending on the later of--
                            ``(i) the date of termination of the plan; 
                        or
                            ``(ii) the date that is 6 years after the 
                        date of assessment of the claim,
                of a value, as of the effective date of the plan, equal 
                to the allowed amount of the claim; and
            ``(8) confirmation of the plan is not likely to be followed 
        by the liquidation or the need for further financial 
        reorganization of the debtor or any successor to the debtor 
        under the plan, unless liquidation or reorganization is 
        proposed in the plan.
    ``(b) Confirmation Notwithstanding Nonconformance or Objection.--If 
the trustee or the holder of an allowed unsecured claim objects to the 
confirmation of the plan, the court may not approve the plan unless, as 
of the effective date of the plan--
            ``(1) the value of the property to be distributed under the 
        plan on account of the claim is not less than the amount of the 
        claim; or
            ``(2) the plan provides that all of the debtor's projected 
        disposable income to be received in the 3-year period, or such 
        longer period as the court may approve under section 1022(c), 
        beginning on the date on which the first payment is due under 
        the plan, will be applied to make payments under the plan.
``Sec.  1027. Payments
    ``(a) Retention by Trustee.--Payments and funds received by the 
trustee shall be retained by the trustee until confirmation or denial 
of confirmation of a plan.
    ``(b) Distribution Following Confirmation.--If a plan is confirmed, 
the trustee shall distribute in accordance with the plan payments and 
funds retained pursuant to subsection (a).
    ``(c) Return Following Nonconfirmation.--If a plan is not 
confirmed, the trustee shall return any payments and funds retained 
pursuant to subsection (a), after deducting--
            ``(1) any unpaid claim allowed under section 503(b); and
            ``(2) if a standing trustee is serving in the case, the 
        percentage fixed for the standing trustee under section 1003.
    ``(d) Payments Preceding Payments to Creditors.--Before or at the 
time of each payment to creditors under the plan, there shall be paid--
            ``(1) any unpaid claim of a kind described in section 
        507(a)(1); and
            ``(2) if a standing trustee is serving in the case, the 
        percentage fee fixed for such standing trustee under section 
        1003.
    ``(e) Payments to Creditors.--Except as otherwise provided in the 
plan or in the order confirming the plan, the trustee shall make 
payments to creditors under the plan.
``Sec.  1028. Effect of confirmation
    ``(a) Persons Bound.--Except as provided in subsection (d) (2) and 
(3), a confirmed plan binds the debtor, any entity issuing securities 
under the plan, any entity acquiring property under the plan, and any 
creditor, equity security holder, or general partner of the debtor, 
whether or not the claim or interest of such creditor, equity security 
holder, or general partner is impaired under the plan and whether or 
not such creditor, equity security holder, or general partner has 
accepted the plan.
    ``(b) Vesting of Property.--Except as otherwise provided in the 
plan or order confirming the plan, the confirmation of a plan vests all 
of the property of the estate in the debtor.
    ``(c) Freedom of Property From Claims and Interests.--Except as 
provided in subsection (d) (2) and (3), and except as otherwise 
provided in the plan or in the order confirming the plan, after 
confirmation of a plan, the property dealt with by the plan is free and 
clear of all claims and interests of creditors, equity security 
holders, and general partners of the debtor.
    ``(d) Discharge of Debtor.--
            ``(1) On completion of payments.--As soon as practicable 
        after completion by the debtor of all payments under the plan, 
        other than payments to holders of allowed claims provided for 
        under section 1022(b) (5) or (9), unless the court approves a 
        written waiver of discharge executed by the debtor after the 
        order for relief under this chapter, the court shall grant the 
        debtor a discharge of all debts provided for by the plan 
        allowed under section 503 or disallowed under section 502, 
        except any debt--
                    ``(A) provided for under section 1022(b) (5) or 
                (9); or
                    ``(B) of the kind specified in section 523(a).
            ``(2) When payments are not completed.--At any time after 
        the confirmation of the plan and after notice and a hearing, 
        the court may grant a discharge to a debtor that has not 
        completed payments under the plan if--
                    ``(A) the debtor's failure to complete such 
                payments is due to circumstances for which the debtor 
                should not be justly held accountable;
                    ``(B) the value, as of the effective date of the 
                plan, of property actually distributed under the plan 
                on account of each allowed secured claim is not less 
                than the amount that would have been paid on the claim 
                if the estate of the debtor had been liquidated under 
                chapter 7 on that date; and
                    ``(C) modification of the plan under section 1029 
                is not practicable.
            ``(3) Effect.--A discharge granted under paragraph (2) 
        discharges the debtor from all unsecured debts provided for by 
        the plan or disallowed under section 502, except any debt--
                    ``(A) provided for under section 1022(b)(5) or (9); 
                or
                    ``(B) of a kind specified in section 523(a).
            ``(4) Revocation.--On request of a party in interest made 
        before the date that is 1 year after the date on which a 
        discharge under this section is granted, and after notice and 
        hearing, the court may revoke the discharge if--
                    ``(A) the discharge was obtained by the debtor 
                through fraud; and
                    ``(B) the requesting party did not know of the 
                fraud until after the discharge was granted.
    ``(e) Termination of Services of Trustee.--After the debtor is 
granted a discharge, the court shall terminate the services of any 
trustee serving in the case.
``Sec.  1029. Modification of plan after confirmation
    ``(a) In General.--At any time after confirmation of a plan but 
before the completion of payments under the plan, the plan may be 
modified, on request of the debtor, the trustee, or the holder of any 
allowed unsecured claim, to--
            ``(1) increase or reduce the amount of payments of claims 
        of a particular class provided for by the plan;
            ``(2) extend or reduce the time for such payments; or
            ``(3) alter the amount of the distribution to a creditor 
        whose claim is provided for by the plan to the extent necessary 
        to take account of any payment of the claim other than under 
        the plan.
    ``(b) Applicability of Requirements.--Sections 1022 (a) and (b) and 
1024 and the requirements of section 1025(a) apply to a modification 
under subsection (a).
    ``(c) Limitation.--A plan modified under subsection (a) may not 
provide for payments over a period that expires after 3 years after the 
date on which the first payment under the original confirmed plan was 
due, unless the court, for cause, approves a longer period, but the 
court may not approve a period that expires after 5 years after that 
date.
    ``(d) Report.--Not later than 60 days after each anniversary of the 
confirmation of the plan, the trustee shall file a report with the 
court, and serve a copy on all creditors requesting service of a copy 
of the report, setting forth--
            ``(1) the amount of distributions made to creditors during 
        the preceding year;
            ``(2) a description of the debtor's compliance with the 
        provisions of the plan during the preceding year;
            ``(3) a description of the debtor's disposable income in 
        relation to the continued ability to comply with the terms of 
        the confirmed plan; and
            ``(4) any modifications to the plan that are necessary to 
        ensure the reorganization of the debtor and the payment to 
        creditors of all disposal income.
``Sec.  1030. Revocation of order of confirmation
    ``(a) Revocation for Fraud.--On request of a party in interest at 
any time within 180 days after the date of the entry of an order of 
confirmation under section 1028, and after notice and a hearing, the 
court may revoke the order if the order was procured by fraud.
    ``(b) Disposition of Case After Revocation.--If the court revokes 
an order of confirmation under subsection (a), the court shall dispose 
of the case under section 1007, unless, within a time fixed by the 
court, the debtor proposes and the court confirms a modification of the 
plan under section 1029.''.
    (d) Technical Amendments.--
            (1) Table of chapters in title 11, united states code.--
        Title 11, United States Code, is amended in the table of 
        chapters by inserting after the item relating to chapter 9 the 
        following new item:

``10. Small Businesses......................................    1001''.
            (2) Cross-references in title 11, united states code.--
        Title 11, United States Code, is amended--
                    (A) in section 321(a) by inserting ``10,'' after 
                ``7,'' each place it appears;
                    (B) in section 322(a) by inserting ``1005'' after 
                ``703,'';
                    (C) in section 326(b)--
                            (i) by striking ``12 or 13'' and inserting 
                        ``10, 12, or 13''; and
                            (ii) by striking ``1202(a) or 1302(a)'' and 
                        inserting ``1005, 1202(a), or 1302(a)'';
                    (D) in section 327--
                            (i) in subsection (b) by inserting 
                        ``1005,'' after ``721,''; and
                            (ii) in subsection (c) by inserting ``10,'' 
                        after ``7,'';
                    (E) in section 329(b)(1)(B) by inserting ``10,'' 
                after ``chapter'';
                    (F) in section 330(c) by striking ``12 or 13'' and 
                inserting ``10, 12, or 13'';
                    (G) in section 346--
                            (i) in subsection (b) by inserting ``10,'' 
                        after ``7,'';
                            (ii) in subsection (g)(1)(C) by striking 
                        ``11 or 12'' and inserting ``10, 11, or 12''; 
                        and
                            (iii) in subsection (i)(1) by inserting 
                        ``10,'' after ``7,'';
                    (H) in section 347--
                            (i) in subsection (a)--
                                    (I) by inserting ``1027,'' after 
                                ``726,''; and
                                    (II) by inserting ``10,'' after 
                                ``7,''; and
                            (ii) in subsection (b)--
                                    (I) by inserting ``10,'' after 
                                ``9,''; and
                                    (II) by inserting ``1026,'' after 
                                ``943(b),'';
                    (I) in section 348--
                            (i) in subsections (b), (c), and (e) by 
                        inserting ``1009,'' after ``706,'' each place 
                        it appears; and
                            (ii) in subsection (d) by inserting 
                        ``1009,'' after ``section'';
                    (J) in section 362(c)(2)(C) by inserting ``10,'' 
                after ``9,'';
                    (K) in section 363--
                            (i) in subsection (c)(1) by inserting 
                        ``1006,'' after ``721,''; and
                            (ii) in subsection (l) by inserting ``10,'' 
                        after ``chapter'';
                    (L) in section 364(a) by inserting ``1006, 1007,'' 
                after ``721,'';
                    (M) in section 365--
                            (i) in subsections (d)(2) and (g) (1) and 
                        (2) by inserting ``10,'' after ``9,'' each 
                        place it appears; and
                            (ii) in subsection (g)(2) (A) and (B) by 
                        inserting ``1009,'' after ``section'' each 
                        place it appears;
                    (N) in section 502(g) by inserting ``10,'' after 
                ``9,'';
                    (O) in section 523(a) by inserting ``1028(d),'' 
                after ``727,'';
                    (P) in section 524--
                            (i) in subsections (a)(1), (c)(1), and (d) 
                        by inserting ``1028(d),'' after ``727,'' each 
                        place it appears; and
                            (ii) in subsection (a)(3) by inserting 
                        ``1028(d),'' after ``523,'';
                    (Q) in section 546(a)(1) by inserting ``1005,'' 
                after ``702,'';
                    (R) in section 557(d)(3) by inserting ``1005,'' 
                after ``703,'';
                    (S) in section 706--
                            (i) in subsection (a)--
                                    (I) by inserting ``10,'' before 
                                ``11,''; and
                                    (II) by inserting ``1009,'' after 
                                ``section''; and
                            (ii) in subsection (c) by striking ``12 or 
                        13'' and inserting ``10, 12, or 13'';
                    (T) in section 726(b) by inserting ``1009,'' after 
                ``chapter under section'';
                    (U) in section 1106(a)(5) by inserting ``10,'' 
                after ``7,'';
                    (V) in section 1306(a) (1) and (2) by inserting 
                ``10,'' after ``7,'' each place it appears; and
                    (W) in section 1307--
                            (i) in subsection (b) by inserting 
                        ``1009,'' after ``706,'';
                            (ii) in subsection (d) by striking ``11 or 
                        12'' and inserting ``10, 11, or 12''; and
                            (iii) in subsection (e) by inserting 
                        ``10,'' after ``7,''.
            (3) Bankruptcy rules.--The rules prescribed under section 
        2075 of title 28, United States Code, and in effect on the date 
        of the enactment of this Act shall apply to cases filed under 
        chapter 10 of title 11, United States Code, to the extent 
        practicable and not inconsistent with the amendments made by 
        this Act.
            (4) Amendment of title 28, united states code.--Title 28, 
        United States Code, is amended--
                    (A) in section 157(b)(2)(B) by inserting ``10,'' 
                after ``chapter'';
                    (B) in section 586--
                            (i) in subsection (a)--
                                    (I) in paragraph (1)(C)--
                                            (aa) by striking ``12 and 
                                        13'' and inserting ``10, 12, 
                                        and 13''; and
                                            (bb) by inserting ``1025, 
                                        1029,'' after ``sections''; and
                                    (II) in paragraph (3) in the matter 
                                preceding subparagraph (A), by 
                                inserting ``10,'' after ``7,'';
                    (C) in subsections (b), (d), and (e) by striking 
                ``12 or 13'' each place it appears and inserting ``10, 
                12, or 13''; and
                    (D) in section 1930(a)--
                            (i) by redesignating paragraphs (3), (4), 
                        (5), and (6) as paragraphs (4), (5), (6), and 
                        (7), respectively; and
                            (ii) by inserting after paragraph (2) the 
                        following new paragraph:
            ``(3) For a case commenced under chapter 10 of title 11, 
        $600.''.
            (5) Amendment of the bankruptcy, judges, united states 
        trustees, and family farmer bankruptcy act of 1986.--Section 
        302 of the Bankruptcy Judges, United States Trustees, and 
        Family Farmer Bankruptcy Act of 1986 (100 Stat. 3119) is 
        amended in subsections (d) and (e) by inserting ``10,'' after 
        ``7,'' each place it appears.
    (e) Application of Chapter 10 of Title 11.--
            (1) Selection of demonstration districts.--Not later than 
        90 days after the date of enactment of this Act, the Director 
        of the Administrative Office of the United States Courts 
        shall--
                    (A) select 8 judicial districts in which chapter 10 
                of title 11, United States Code, shall be effective for 
                a period of 3 years; and
                    (B) identify those districts by notice in the 
                Federal Register.
            (2) Effective period.--Chapter 10 of title 11, United 
        States Code, shall become effective only in the 8 judicial 
        districts selected under paragraph (1), beginning on the date 
        that is 90 days after the date of enactment of this Act and 
        ending on the date that is 3 years after that date.
            (3) Repeal.--(A) Chapter 10 of title 11, United States 
        Code, is repealed on the date that is 3 years after the date 
        that is 90 days after the date of enactment of this Act. All 
        cases commenced or pending under that chapter and all matters 
        and proceedings in or relating to those cases shall be 
        conducted and determined under that chapter as if the chapter 
        had not been repealed. The substantive rights of parties in 
        connection with those cases, matters, and proceedings as if the 
        chapter had not been repealed.
            (B) The Committee on the Judiciary of the Senate and the 
        Committee on the Judiciary of the House of Representatives 
        shall prepare and report to the Senate and the House of 
        Representatives, respectively, not later than 90 days before 
        the repeal date described in subparagraph (A), legislation 
        proposing such technical amendments as may be necessary or 
        appropriate at that time in view of the repeal made by 
        subparagraph (A).

SEC. 202. SINGLE ASSET REAL ESTATE.

    (a) Definition.--Section 101 of title 11, United States Code, is 
amended by inserting in its proper alphabetical position the following 
new definition:
            `` `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.''.
    (b) Automatic Stay.--Section 362 of title 11, United States Code, 
is amended--
            (1) in subsection (d)--
                    (A) in paragraph (1) by striking ``or'' at the end;
                    (B) in paragraph (2) by striking the period at the 
                end and inserting ``; or''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(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, 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.''; and
            (2) by adding at the end the following new subsection:
    ``(i)(1) Upon request of a creditor whose claim is secured by an 
interest in single asset real estate, if the interest has more than de 
minimis value, the court shall issue an order granting limited relief 
from the stay provided under subsection (a) to permit the creditor to 
continue a foreclosure proceeding commenced before the commencement of 
the case up to, but not including, the point of sale.
    ``(2) An order under paragraph (1) shall not issue before the date 
that is 30 days after the date of entry of the order for relief, but 
thereafter shall issue promptly after such a request.
    ``(3) A hearing shall not be required for the granting of relief 
under paragraph (1) unless the debtor files an objection to the request 
and shows the court extraordinary circumstances requiring such a 
hearing.''.

SEC. 203. AIRCRAFT EQUIPMENT, VESSELS, AND 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 or 363 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 101 of the Federal 
        Aviation Act of 1958 (49 U.S.C. App. 1301)) that is subject to 
        a security interest granted by, leased to, or conditionally 
        sold to a debtor that is an air carrier (as defined in section 
        101 of the Federal Aviation Act of 1958 (49 U.S.C. App. 1301)); 
        or
            ``(B) a documented vessel (as defined in section 30101(1) 
        of title 46, United States Code) 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 the 60-day period 
specified in subsection (a)(1).
    ``(c) If the trustee makes an agreement of the kind described in 
subsection (a)(1)(A) with respect to a security agreement, lease, or 
conditional sale contract, any costs and expenses incurred by the 
secured party, lessor, or conditional vendor to remedy the failure of 
the trustee to perform the obligations of the estate to maintain or 
return equipment in accordance with the security agreement, lease, or 
conditional sale contract constitute administrative expenses under 
section 503(b)(1)(A).
    ``(d) 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 or 363 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 the 60-day period 
specified in subsection (a)(1).
    ``(c) If the trustee makes an agreement of the kind described in 
subsection (a)(1)(A) with respect to a security agreement, lease, or 
conditional sale contract, any costs and expenses incurred by the 
secured party, lessor, or conditional vendor to remedy the failure of 
the trustee to perform the obligations of the estate to maintain or 
return equipment in accordance with the security agreement, lease, or 
conditional sale contract constitute administrative expenses under 
section 503(b)(1)(A).
    ``(d) 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.''.
    (c) Application of Amendments.--
            (1) In general.--The amendment of sections 1110(a) and 
        1168(a) of title 11, United States Code, made by subsections 
        (a) and (b) shall not apply to cases commenced under title 11, 
        United States Code, prior to the date of enactment of this Act.
            (2) Placement in service.--The amendment of section 1168(a) 
        of title 11, United States Code, made by subsection (b) shall 
        take effect with respect to equipment that is first placed in 
        service after the date of enactment of this Act, including 
        rolling stock equipment that is substantially rebuilt after 
        that date and accessories used on such equipment.

SEC. 204. UNEXPIRED LEASES OF PERSONAL PROPERTY IN CHAPTER 11 CASES.

    Section 365 of title 11, United States Code, is amended in the 
first sentence by inserting after ``real property'' the following: 
``and, in a case under chapter 11, under an unexpired lease of personal 
property''.

SEC. 205. 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) The reversal or modification on appeal of an authorization 
under this section of an assignment of an executory contract or 
unexpired lease 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 authorization and 
the assignment were stayed pending appeal.''.

SEC. 206. PROTECTION OF SECURITY INTEREST IN POST-PETITION RENTS.

    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 new paragraph:
    ``(2)(A) Except as provided in sections 363, 506(c), 522, 544, 545, 
547, and 548, if--
            ``(i) the debtor and an entity entered into a security 
        agreement that was duly recorded in the public records before 
        the commencement of the case; and
            ``(ii) the security interest created by the security 
        agreement extends to property of the debtor acquired before the 
        commencement of the case and to rents or fees, charges, 
        accounts or other payments for the use or occupancy of rooms 
        and other public facilities in hotels, motels or other lodging 
        properties of such property and has been duly recorded in the 
        public record,
the security interest extends to the rents or fees, charges, accounts, 
or other payments acquired by the estate after the commencement of the 
case to the extent provided in the security agreement, whether or not 
the security interest in such rents, fees, charges, accounts or other 
payments is perfected under applicable nonbankruptcy law, except to the 
extent that the court, after notice and a hearing and based on the 
equities of the case, orders otherwise.''.
    ``(B) If a security interest extends under subparagraph (A) to 
rents acquired by the estate after the commencement of the case, the 
security interest in such rents shall be deemed to be perfected for the 
purpose of section 544(a).''.
    (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. 207. ANTI-ALIENATION.

    (a) Automatic Stay.--Section 362(b) of title 11, United States 
Code, as amended by section 501(a), is amended--
            (1) by striking ``or'' at the end of paragraph (16);
            (2) by adding ``or'' at the end of paragraph (17); and
            (3) by adding at the end the following new paragraph:
            ``(18) under subsection (a), of withholding of income from 
        a debtor's wages and collection of amounts withheld, pursuant 
        to the debtor's agreement authorizing such withholding and 
        collection for the benefit of a pension, profit sharing, stock 
        bonus, or other plan qualified under section 401(a), 403(a), 
        403(b), or 408(k), or 457 or a governmental plan under 414(d) 
        of the Internal Revenue Code of 1986, which is sponsored by the 
        employer of the debtor, or an affiliate, successor or 
        predecessor of such employer, to the extent that the amounts 
        withheld and collected are used solely for payments relating to 
        a loan from the plan that satisfies the requirements of section 
        404 of the Employee Retirement Income Security Act of 1974 (29 
        U.S.C. 1108(b)(1)) or, in the case of a loan from the Thrift 
        Savings Plan described in subchapter III of title 5, United 
        States Code, that satisfies the requirements of section 8433(i) 
        of that title.''.
    (b) Exceptions to Discharge.--Subsection 523(a) of title 11, United 
States Code, is amended--
            (1) by striking ``or'' at the end of paragraph (11);
            (2) by striking the period at the end of paragraph (12) and 
        inserting ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(13) owed to a pension, profitsharing, stock bonus, or 
        other plan qualified under section 401(a), 403(a), 403(b), 
        408(k) or a governmental plan under 414(d) or 457 of the 
        Internal Revenue Code of 1986 pursuant to a loan permitted 
        under section 404 of the Employee Retirement Income Security 
        Act of 1974 (29 U.S.C. 1108(b)(1)) or pursuant to a loan from 
        the Thrift Savings Plan described in subchapter III of title 5, 
        United States Code, that satisfies the requirements of section 
        8433(i) of that title.''.
    (c) Property of the Estate.--Subsection 541(c) of title 11, United 
States Code, is amended by adding at the end the following new 
paragraph:
            ``(3)(A) Subject to subparagraph (B), assets and benefits 
        accumulated for the benefits of a debtor pursuant to a pension, 
        profitsharing, stock bonus, or other plan qualified under 
        section 401(a), 403(a), 403(b), or 408(k), or a governmental 
        plan under 414(d), or 457 of the Internal Revenue Code of 1986 
        and any rights of debtor to such assets or benefits shall be 
        excluded from the property of the estate.
            ``(B) Subparagraph (A) does not apply to plan assets or 
        benefits attributable to contributions of the debtor to the 
        extent that such contributions were in excess of the applicable 
        limits on such contributions under section 401(k), 401(m), or 
        415 of the Internal Revenue Code of 1986.''.
    (d) Plan Contents.--Section 1322 of title 11, United States Code, 
is amended by adding at the end the following new subsection:
    ``(d) The plan may not materially alter the terms of a loan 
described in section 362(b)(18).''.
    (e) Plan Confirmation.--Section 1325 of title 11, United States 
Code, is amended--
            (1) in subsection (b)(2) by striking ``debtor and'' and 
        inserting ``debtor (not including income that is withheld from 
        the debtor's wages for the purposes stated in section 
        362(b)(18)) and''; and
            (2) in subsection (c) by striking ``income to'' and 
        inserting ``income (except income that is withheld from a 
        debtor's wages for the purposes stated in section 362(b)(18) 
        after confirmation of a plan) to''.

SEC. 208. EXEMPTION.

    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 section 301 (c) or (d) of the Small Business 
Investment Act of 1958 (15 U.S.C. 681 (c) and (d)),''.

SEC. 209. INDENTURE TRUSTEE COMPENSATION.

    Section 503(b) of title 11, United States Code, is amended--
            (1) in paragraph (3)--
                    (A) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively;
                    (B) by inserting after subparagraph (C) the 
                following new subparagraph;
                    ``(D) an indenture trustee;''; and
                    (C) in subparagraph (E), as redesignated by 
                subparagraph (A), by striking ``an indenture 
                trustee,''; and
            (2) in paragraph (5) by striking ``for services rendered by 
        an indenture trustee in making a substantial contribution in a 
        case under chapter 9 or 11 of this title'' and inserting ``for 
        necessary services''.

SEC. 210. PAYMENT OF FEDERAL INTERNAL REVENUE TAXES WITH BORROWED 
              FUNDS.

    Section 523(a) of title 11, United States Code, is amended--
            (1) by striking ``or'' at the end of paragraph (11);
            (2) by adding ``or'' at the end of paragraph (12); and
            (3) by adding at the end the following new paragraph:
            ``(13) incurred to obtain funds with which to pay a tax 
        imposed under the Internal Revenue Code of 1986.''.

SEC. 211. 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 new 
subsection:
    ``(h) Notwithstanding the rights and powers of a trustee under 
sections 544(a), 545, 547, 549, and 553, if the court determines, 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 value 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)(2),''.

SEC. 212. EXCEPTION TO DISCHARGE.

    Section 523(a)(2) of title 11, United States Code, is amended by 
striking ``forty'' and inserting ``60''.

SEC. 213. PROCEEDS OF MONEY ORDER AGREEMENTS.

    Section 541(b) of title 11, United States Code, is amended--
            (1) by striking ``or'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(4) 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. 214. LIMITATION ON LIABILITY OF NONINSIDER TRANSFEREE FOR AVOIDED 
              TRANSFER.

    Section 550 of title 11, United States Code, is amended--
            (1) by redesignating subsections (b), (c), (d), and (e) as 
        subsections (c), (d), (e), and (f), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b) The trustee may recover under subsection (a) a transfer 
avoided under section 547(b) from a first transferee or an immediate or 
mediate transferee of a first transferee only to the extent that--
            ``(1) all the elements of section 547(b) are satisfied as 
        to the first transferee; and
            ``(2) the exceptions in section 547(c) do not protect the 
        first transferee.''.

SEC. 215. PERFECTION OF PURCHASE-MONEY SECURITY INTEREST.

    Section 547(c)(3)(B) of title 11, United States Code, is amended by 
striking ``10'' and inserting ``20''.

SEC. 216. AIRPORT GATE LEASES.

    Section 365(d) of title 11, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(5)(A) Notwithstanding paragraphs (1), (2), and (4), and subject 
to subparagraphs (B) and (C) of this paragraph, if the trustee in a 
case under any chapter of this title does not assume or reject an 
unexpired lease or executory contract with an airport operator under 
which the debtor has a right to the use or possession of an airport 
terminal, aircraft gate, or related facility within 60 days after the 
date of the order for relief, or within such additional time (not to 
exceed 120 additional days) as the court sets during such 60-day 
period, such lease or executory contract is deemed rejected, and the 
trustee shall immediately surrender the airport terminal, gate, or 
related facility to the airport operator.
    ``(B)(i) The court may enter an order extending beyond 180 days 
after the date of the order for relief the time for assumption or 
rejection of an unexpired lease or executory contract described in 
subparagraph (A) only after finding that such an extension of time does 
not cause substantial harm to the airport operator or to airline 
passengers.
    ``(ii) In making the determination of substantial harm, the court 
shall consider, among other relevant factors--
            ``(I) the level of use of airport terminals, gates, or 
        related facilities subject to the unexpired lease or executory 
        contract;
            ``(II) the existence of competing demands for the use of 
        the airport terminals, gates, or related facilities;
            ``(III) the size and complexity of the case; and
            ``(IV) air carrier competition at the airport.
    ``(iii) The burden of proof for establishing cause for an extension 
of time under this subparagraph shall be on the trustee.
    ``(iv) An order entered under this subparagraph shall be without 
prejudice to the right of a party in interest to request, at any time, 
a shortening or termination of the extension of time granted under this 
subparagraph.''.

SEC. 217. TRUSTEE 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 
                and substantive 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 each such an application and, if the United States 
                Trustee considers it to be appropriate, objections to 
                such application.

SEC. 218. PAYMENTS.

    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. 219. SELLER'S RIGHT TO RECLAIM GOODS.

    Section 546(c)(1) of title 11, United States Code, is amended by 
striking ``ten'' and inserting ``30''.

SEC. 220. PAYMENT OF INSURANCE BENEFITS TO RETIRED EMPLOYEES.

    Section 1114(e) of title 11, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(3) Notwithstanding any other provision of this title, if 
        there are not sufficient unencumbered assets available to make 
        a timely payment required by paragraph (1), an order approving 
        the use, sale, or lease of cash collateral or the obtaining of 
        credit or incurring of debt shall require the debtor to use 
        such cash collateral, credit, or incurring of debt to make the 
        payment.''.

                 TITLE III--CONSUMER BANKRUPTCY ISSUES

SEC. 301. PERIOD FOR CURING DEFAULT RELATING TO PRINCIPAL RESIDENCE.

    Section 1322 of title 11, United States Code, as amended by section 
207(d), is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Notwithstanding State law and subsection (b)(2), and whether 
or not a claim is matured or reduced to judgment, a debtor who at the 
time of filing a petition under this title possesses any legal or 
equitable interest, including a right of redemption, in real property 
securing a claim--
            ``(1) may cure a default and maintain payments on the claim 
        pursuant to subsection (b) (3) or (5); or
            ``(2) in a case in which the last payment on the original 
        payment schedule for the claim is due before the date on which 
        the final payment under the plan is due, may provide for the 
        payment of the claim pursuant to section 1325(a)(5).''.

SEC. 302. NONDISCHARGEABILITY OF FINE UNDER CHAPTER 13.

    Section 1328(a)(3) of title 11, United States Code, is amended by 
inserting ``, or a fine to the extent such fine exceeds $500, '' after 
``restitution''.

SEC. 303. PROTECTION OF CHILD SUPPORT AND ALIMONY.

    (a) 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;''.
    (b) Priority of Claims.--
            (1) Alimony or support.--Section 507(a) of title 11, United 
        States Code, is amended--
                    (A) in paragraph (8) by striking ``(8) Eighth'' and 
                inserting ``(9) Ninth'';
                    (B) in paragraph (7) by striking ``(7) Seventh'' 
                and inserting ``(8) Eighth''; and
                    (C) by inserting after paragraph (6) the following 
                new paragraph:
            ``(7) Eighth, 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.''.
            (2) Technical amendments.--Title 11, United States Code, is 
        amended--
                    (A) in section 502(i) by striking ``507(a)(7)'' and 
                inserting ``507(a)(8)'';
                    (B) in section 503(b)(1)(B)(i) by striking 
                ``507(a)(7)'' and inserting ``507(a)(8)'';
                    (C) in section 523(a)(1)(A) by striking 
                ``507(a)(7)'' and inserting ``507(a)(8)'';
                    (D) in section 724(b)(2) by striking ``or 
                507(a)(6)'' and inserting ``507(a)(6), or 507(a)(7)'';
                    (E) in section 726(b) by striking ``or (7)'' and 
                inserting ``, (7), or (8)'';
                    (F) in section 1123(a)(1) by striking ``507(a)(7)'' 
                and inserting ``507(a)(8)''; and
                    (G) 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)''.
    (c) Protection of Liens.--Section 522(f)(1) of title 11, United 
States Code, is amended to read as follows:
            ``(1) a judicial lien (other than a judicial lien that 
        secures a debt to a spouse, former spouse, or child of the 
        debtor, for alimony to, maintenance for, or support of the 
        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, to 
        the extent that the debt--
                    ``(A) is not assigned to another entity, 
                voluntarily, by operation of law, or otherwise; and
                    ``(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 Against Trustee Avoidance.--Section 547(c) of title 
11, United States Code, is amended--
                    (1) by striking ``or'' at the end of paragraph (6);
                    (2) by redesignating paragraph (7) as paragraph 
                (8); and
                    (3) by inserting after paragraph (6) the following 
                new paragraph:
            ``(7) to the extent that the 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''.
    (e) Appearance Before Court.--A child support creditor or its 
representative shall be permitted to appear and intervene without 
charge and without meeting any special local court rule requirement for 
attorney appearances in any bankruptcy proceeding in any bankruptcy 
court or district court of the United States if the creditor or 
representative files with the court a statement describing in detail 
the child support debt, its status, and other characteristics.

SEC. 304. BANKRUPTCY PETITION PREPARERS.

    (a) Amendment of Chapter 1.--
            (1) In general.--Chapter 1 of title 11, United States Code, 
        is amended by adding at the end the following new section:

``SEC. 110. PENALTY FOR PERSONS WHO NEGLIGENTLY OR FRAUDULENTLY PREPARE 
              BANKRUPTCY PETITIONS.

    ``(a) Definition.--In this section--
            ```bankruptcy petition preparer' means a person, other than 
        an attorney or an employee of 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) Signing of Documents.--(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) Furnishing of Identifying Number.--(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 the 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) Furnishing of Copy to the Debtor.--(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) Authorization To Execute Documents.--(1) A bankruptcy 
petition preparer shall not execute any document on behalf of a debtor 
unless--
            ``(A) the debtor has first given the preparer written 
        authorization to execute the document; and
            ``(B) the preparer is otherwise authorized by law to 
        execute the document.
    ``(2) A bankruptcy petition preparer may be fined not more than 
$500 for each document executed in violation of paragraph (1).
    ``(f) Damages.--If a bankruptcy case or related proceeding is 
dismissed because of the negligence or intentional disregard of this 
title or the bankruptcy rules 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 and after a hearing, shall order the bankruptcy 
petition preparer to pay to the debtor--
            ``(1) the debtor's actual damages;
            ``(2) the greater of--
                    ``(A) $2,000; or
                    ``(B) twice the amount paid by the debtor to the 
                bankruptcy petition preparer for the preparer's 
                services; and
            ``(3) reasonable attorneys' fees and costs in moving for 
        damages under this subsection.
    ``(g) Injunctive Relief.--
            ``(1) In general.--A debtor for whom a bankruptcy petition 
        preparer has prepared as document for filing, the United States 
        trustee in the district in which the bankruptcy petition 
        preparer resides or has a principal place of business, or the 
        United States trustee in the 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) Conduct.--(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 clause 
        (i) (I), (II), or (III) 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) Attorney's fee.--The court shall award to a debtor 
        who brings a successful action under this subsection reasonable 
        attorney's fees and costs of the action.
    ``(h) Unauthorized Practice of Law.--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.''.
            (2) Technical amendment.--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.''.
    (b) Amendment of Title 18, United States Code.--
            (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 states in the 
        person's charge,
shall be fined not more than $5000 and shall forfeit the person's 
office, which shall thereupon become vacant.''; and
                    (B) by adding at the end the following new section:
``Sec. 156. Willful disregard of bankruptcy law or rule
    ``(a) Definitions.--In this section--
            ```bankruptcy petition preparer' means a person, other than 
        an attorney or an employee of 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 willful attempt by a bankruptcy petition 
preparer in any manner to disregard the requirements of title 11, 
United States Code, or the Bankruptcy Rules, the bankruptcy petition 
preparer shall be fined $5,000.''.
            (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 item:

``Sec. 156. Willful disregard of bankruptcy law or rule.''.

SEC. 305. CONVERSION OR DISMISSAL.

    Section 1307 of title 11, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g) The clerk of the court shall give notice to all creditors not 
later than 30 days after the entry of an order of conversion or 
dismissal.''.

SEC. 306. CONTENTS OF PLAN.

    Section 1322(b)(2) of title 11, United States Code, is amended by 
striking ``claims;'' and inserting ``claims, but the plan may not 
modify a claim pursuant to section 506 of a person holding a primary or 
a junior security interest in real property or a manufactured home (as 
defined in section 603(6) of the National Manufactured Housing 
Construction and Safety Standards Act of 1974 (42 U.S.C. 5402(6)) that 
is the debtor's principal residence, except that the plan may modify 
the claim of a person holding such a junior security interest that was 
undersecured at the time the interest attached to the extent that the 
interest remains undersecured;''.

SEC. 307. STAY OF ACTION AGAINST CODEBTOR.

    Section 1301 of title 11, United States Code, is amended--
            (1) in subsection (c)--
                    (A) by striking ``or'' at the end of paragraph (2);
                    (B) by striking the period at the end of paragraph 
                (3) and inserting ``; or''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) the claim is for an amount valued at not greater than 
        $25,000, and such relief is not a substantial impediment to an 
        effective reorganization by the debtor, and unless the codebtor 
        has demonstrated an inability to pay such claim or a 
        substantial portion of such claim.''; and
            (2) by adding at the end the following new subsection:
    ``(e) If the relief sought by the creditor pursuant to subsection 
(c)(4) is granted by the court, the codebtor shall by subrogation have 
the same rights as the creditor, under this title, against the debtor 
to the extent of the amount of relief obtained from the codebtor. 
Pending any delay in obtaining relief from the codebtor, after the 
court order, payment by the debtor shall continue to be paid to the 
creditor, but subject to the developing subrogation rights of the 
codebtor.''.

SEC. 308. EXEMPTION FOR HOUSEHOLD GOODS.

    Section 522(a) of title 11, United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (1) and 
        redesignating that paragraph as paragraph (2);
            (2) by inserting before paragraph (2), as redesignated by 
        paragraph (1), the following new paragraph:
            ``(1) `antique', for purposes of subsection (d), means an 
        item that was more than 100 years old at the time it was 
        acquired by the debtor, including such an item that has been 
        repaired or renovated without changing its original form or 
        character;'';
            (3) by redesignating paragraph (2), as designated prior to 
        the date of enactment of this Act, as paragraph (4); and
            (4) by inserting after paragraph (2), as redesignated by 
        paragraph (1), the following new paragraph:
            ``(3) `household goods', for purposes of subsection (d), 
        means clothing, furniture, appliances, linens, china, crockery, 
        kitchenware, and personal effects of the debtor and the 
        debtor's dependents, but does not include--
                    ``(A) works of art;
                    ``(B) electronic entertainment equipment (except to 
                the extent of 1 television and 1 radio);
                    ``(C) antiques; and
                    ``(D) jewelry other than wedding rings.''.

SEC. 309. 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, or the debtor's attorney, 
after considering comments and objections submitted by the United 
States Trustee in conformance with guidelines adopted by the Executive 
Office for United States Trustees pursuant to section 586(a)(3)(A) of 
title 28--
            ``(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)(A) In determining an amount of reasonable compensation to be 
awarded under paragraph (1)(A), the court--
            ``(i) may, on its motion or on the motion of the United 
        States trustee or any party in interest, award compensation 
        that is less than the amount of compensation that is requested; 
        and
            ``(ii) shall consider the nature, the extent, and the value 
        of such services, taking into account all relevant factors, 
        including--
                    ``(I) the time spent on such services;
                    ``(II) the rates charged for such services;
                    ``(III) whether the services were necessary in the 
                administration of or beneficial toward the completion 
                of a case under this title; and
                    ``(IV) the total value of the estate and the amount 
                of funds or other property available for distribution 
                to all creditors both secured and unsecured.
    ``(B) In calculating compensation for services for the purpose of 
subparagraph (A)(ii), the court shall consider--
            ``(i) whether tasks were performed within a reasonable 
        amount of time commensurate with the complexity, importance and 
        nature of the problem, issue or task addressed; and
            ``(ii) whether the compensation is reasonable based on the 
        customary compensation charged by comparably skilled 
        practitioners in nonbankruptcy cases.
    ``(3) The court shall not allow compensation for duplication of 
services or for services that are not either reasonably likely to 
benefit the debtor's estate or necessary in the administration of the 
case.
    ``(4)(A) The court shall take into account the amount and timing of 
interim compensation, if any awarded and paid, in awarding final 
compensation.
    ``(B) If interim compensation was awarded and paid in an amount 
that exceeds the amount the court awards as final compensation the 
court may order the return of the excess to the trustee or other entity 
that paid it.
    ``(5) In determining the amount to be awarded for the preparation 
of fee applications, the court shall recognize the difference between 
the cost of professional services and services for the preparation of 
fee applications. The costs awarded for the preparation of fee 
applications shall be reasonable and based on the level of skill 
required.''.

                 TITLE IV--BANKRUPTCY REVIEW COMMISSION

SEC. 401. SHORT TITLE.

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

SEC. 402. ESTABLISHMENT.

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

SEC. 403. 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 
        408; and
            (4) to solicit divergent views of all parties concerned 
        with the operation of the bankruptcy system.

SEC. 404. 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.
    (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 90 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 a member of Congress or 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. 405. 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. 406. 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. 407. 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. 408. 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. 409. 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 408.

SEC. 410. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated $1,500,000 to carry out this 
title.

                     TITLE V--TECHNICAL CORRECTIONS

SEC. 501. TITLE 11, UNITED STATES CODE.

    (a) Alphabetization and Elimination of Paragraph Designations.--
Section 101 of title 11, United States Code, is amended to read as 
follows:
``Sec. 101. Definitions
    ``In this title--
            ```accountant' means an accountant authorized under 
        applicable law to practice public accounting, and includes 
        professional accounting association, corporation, or 
        partnership, if so authorized.
            ```affiliate' means--
                    ``(A) an entity that directly or indirectly owns, 
                controls, or holds with power to vote, 20 percent or 
                more of the outstanding voting securities of the 
                debtor, other than an entity that holds such 
                securities--
                            ``(i) in a fiduciary or agency capacity 
                        without sole discretionary power to vote such 
                        securities; or
                            ``(ii) solely to secure a debt, if such 
                        entity has not in fact exercised such power to 
                        vote;
                    ``(B) a corporation 20 percent or more of whose 
                outstanding voting securities are directly or 
                indirectly owned, controlled, or held with power to 
                vote, by the debtor, or by an entity that directly or 
                indirectly owns, controls, or holds with power to vote, 
                20 percent or more of the outstanding voting securities 
                of the debtor, other than an entity that holds such 
                securities--
                            ``(i) in a fiduciary or agency capacity 
                        without sole discretionary power to vote such 
                        securities; or
                            ``(ii) solely to secure a debt, if such 
                        entity has not in fact exercised such power to 
                        vote;
                    ``(C) a person whose business is operated under a 
                lease or operating agreement by a debtor, or person 
                substantially all of whose property is operated under 
                an operating agreement with the debtor; or
                    ``(D) an entity that operates the business or 
                substantially all of the property of the debtor under a 
                lease or operating agreement.
            ```attorney' means an attorney, professional law 
        association, corporation, or partnership, authorized under 
        applicable law to practice law.
            ```claim' means--
                    ``(A) a right to payment, whether or not such right 
                is reduced to judgment, liquidated, unliquidated, 
                fixed, contingent, matured, unmatured, disputed, 
                undisputed, legal, equitable, secured, or unsecured; or
                    ``(B) a right to an equitable remedy for breach of 
                performance if such breach gives rise to a right to 
                payment, whether or not such right to an equitable 
                remedy is reduced to judgment, fixed, contingent, 
                matured, unmatured, disputed, undisputed, secured, or 
                unsecured.
            ```commodity broker' means a futures commission merchant, 
        foreign futures commission merchant, clearing organization, 
        leverage transaction merchant, or commodity options dealer (as 
        defined in section 761) with respect to which there is a 
        customer (as defined in section 761).
            ```community claim' means a claim that arose before the 
        commencement of the case concerning the debtor for which 
        property of the kind specified in section 541(a)(2) is liable, 
        whether or not there is any such property at the time of the 
        commencement of the case.
            ```consumer debt' means debt incurred by an individual 
        primarily for a personal, family, or household purpose.
            ```corporation'--
                    ``(A) includes--
                            ``(i) an association having a power or 
                        privilege that a private corporation, but not 
                        an individual or a partnership, possesses;
                            ``(ii) a partnership association organized 
                        under a law that makes only the capital 
                        subscribed responsible for the debts of such 
                        association;
                            ``(iii) a joint-stock company;
                            ``(iv) an unincorporated company or 
                        association; or
                            ``(v) a business trust; but
                    ``(B) does not include a limited partnership.
            ```creditor' means--
                    ``(A) an entity that has a claim against the debtor 
                that arose at the time of or before the order for 
                relief concerning the debtor;
                    ``(B) an entity that has a claim against the estate 
                of a kind specified in section 348(d), 502(f), 502(g), 
                502(h), or 502(i); or
                    ``(C) an entity that has a community claim.
            ```custodian' means--
                    ``(A) a receiver or trustee of any of the property 
                of the debtor, appointed in a case or proceeding not 
                under this title;
                    ``(B) an assignee under a general assignment for 
                the benefit of the debtor's creditors; or
                    ``(C) a trustee, receiver, or agent under 
                applicable law, or under a contract, that is appointed 
                or authorized to take charge of property of the debtor 
                for the purpose of enforcing a lien against such 
                property, or for the purpose of general administration 
                of such property for the benefit of the debtor's 
                creditors.
            ```debt' means liability on a claim.
            ```debtor' means a person or municipality concerning which 
        a case under this title has been commenced.
            ```disinterested person means a person that--
                    ``(A) is not a creditor, an equity security holder, 
                or an insider;
                    ``(B) is not and was not an investment banker for 
                any outstanding security of the debtor;
                    ``(C) has not been, within 3 years before the date 
                of the filing of the petition, an investment banker for 
                a security of the debtor, or an attorney for such an 
                investment banker in connection with the offer, sale, 
                or issuance of a security of the debtor;
                    ``(D) is not and was not, within 2 years before the 
                date of the filing of the petition, a director, 
                officer, or employee of the debtor or of an investment 
                banker specified in subparagraph (B) or (C); and
                    ``(E) does not have an interest materially adverse 
                to the interest of the estate or of any class of 
                creditors or equity security holders, by reason of any 
                direct or indirect relationship to, connection with, or 
                interest in, the debtor or an investment banker 
                specified in subparagraph (B) or (C), or for any other 
                reason.
            ```entity' includes a person, estate, trust, governmental 
        unit, and United States trustee.
            ```equity security' means--
                    ``(A) a share in a corporation, whether or not 
                transferable or denominated `stock', or similar 
                security;
                    ``(B) an interest of a limited partner in a limited 
                partnership; or
                    ``(C) a warrant or right, other than a right to 
                convert, to purchase, sell, or subscribe to a share, 
                security, or interest of a kind specified in 
                subparagraph (A) or (B).
            ```equity security holder' means a holder of an equity 
        security of the debtor.
            ```family farmer' means--
                    ``(A) an individual or individual and spouse 
                engaged in a farming operation whose aggregate debts do 
                not exceed $1,500,000 and not less than 80 percent of 
                whose aggregate noncontingent, liquidated debts 
                (excluding a debt for the principal residence of such 
                individual or such individual and spouse unless such 
                debt arises out of a farming operation), on the date 
                the case is filed, arise out of a farming operation 
                owned or operated by such individual or such individual 
                and spouse, and such individual or such individual and 
                spouse receive from such farming operation more than 50 
                percent of such individual's or such individual and 
                spouse's gross income for the taxable year preceding 
                the taxable year in which the case concerning such 
                individual or such individual and spouse was filed; or
                    ``(B) a corporation or partnership in which more 
                than 50 percent of the outstanding stock or equity is 
                held by one family, or by one family and the relatives 
                of the members of such family, and such family or such 
                relatives conduct the farming operation--
                            ``(i) more than 80 percent of the value of 
                        its assets consists of assets related to the 
                        farming operation;
                            ``(ii) its aggregate debts do not exceed 
                        $1,500,000 and not less than 80 percent of its 
                        aggregate noncontingent, liquidated debts 
                        (excluding a debt for one dwelling which is 
                        owned by such corporation or partnership and 
                        which a shareholder or partner maintains as a 
                        principal residence, unless such debt arises 
                        out of a farming operation), on the date the 
                        case is filed, arise out of the farming 
                        operation owned or operated by such corporation 
                        or such partnership; and
                            ``(iii) if such corporation issues stock, 
                        such stock is not publicly traded.
            ```family farmer with regular annual income' means a family 
        farmer whose annual income is sufficiently stable and regular 
        to enable such family farmer to make payments under a plan 
        under chapter 12.
            ```farmer' means (except when such term appears in the term 
        `family farmer') a person that received more than 80 percent of 
        such person's gross income during the taxable year of such 
        person immediately preceding the taxable year of such person 
        during which the case under this title concerning such person 
        was commenced from a farming operation owned or operated by 
        such person.
            ```farming operation' includes farming, tillage of the 
        soil, dairy farming, ranching, production or raising of crops, 
        poultry, or livestock, and production of poultry or livestock 
        products in an unmanufactured state.
            ```Federal depository institutions regulatory agency' 
        means--
                    ``(A) with respect to an insured depository 
                institution (as defined in section 3(c)(2) of the 
                Federal Deposit Insurance Act (12 U.S.C. 1813(c)(2)) 
                for which no conservator or receiver has been 
                appointed, the appropriate Federal banking agency (as 
                defined in section 3(q) of that Act);
                    ``(B) with respect to an insured credit union 
                (including an insured credit union for which the 
                National Credit Union Administration has been appointed 
                conservator or liquidating agent), the National Credit 
                Union Administration;
                    ``(C) with respect to any insured depository 
                institution for which the Resolution Trust Corporation 
                has been appointed conservator or receiver, the 
                Resolution Trust Corporation; and
                    ``(D) with respect to any insured depository 
                institution for which the Federal Deposit Insurance 
                Corporation has been appointed conservator or receiver, 
                the Federal Deposit Insurance Corporation.
            ```financial institution' means a person that is a 
        commercial or savings bank, industrial savings bank, savings 
        and loan association, or trust company and, when any such 
        person is acting as agent or custodian for a customer in 
        connection with a securities contract (as defined in section 
        741(a)), the customer.
            ```foreign proceeding' means a proceeding, whether judicial 
        or administrative and whether or not under bankruptcy law, in a 
        foreign country in which the debtor's domicile, residence, 
        principal place of business, or principal assets were located 
        at the commencement of such proceeding, for the purpose of 
        liquidating an estate, adjusting debts by composition, 
        extension, or discharge, or effecting a reorganization.
            ```foreign representative' means a duly selected trustee, 
        administrator, or other representative of an estate in a 
        foreign proceeding.
            ```forward contract' means a contract (other than a 
        commodity contract) for the purchase, sale, or transfer of a 
        commodity, as defined in section 761, or any similar good, 
        article, service, right, or interest which is presently or in 
        the future becomes the subject of dealing in the forward 
        contract trade, or product or byproduct thereof, with a 
        maturity date more than 2 days after the date the contract is 
        entered into, including, but not limited to, a repurchase 
        transaction, reverse repurchase transaction, consignment, 
        lease, swap, hedge transaction, deposit, loan, option, 
        allocated transaction, unallocated transaction, or any 
        combination thereof or option thereon.
            ```forward contract merchant' means a person whose business 
        consists in whole or in part of entering into forward contracts 
        as or with merchants in a commodity (as defined in section 761) 
        or any similar good, article, service, right, or interest which 
        is presently or in the future becomes the subject of dealing in 
        the forward contract trade.
            ```governmental unit' means--
                    ``(A) the United States, a State, Commonwealth, or 
                Territory, the District of Columbia, a municipality, 
                and a foreign state;
                    ``(B) a department, agency, or instrumentality of 
                the United States (but not a United States trustee 
                while serving as a trustee in a case under this title), 
                a State, Commonwealth, or Territory, the District of 
                Columbia, a municipality, a foreign state; or
                    ``(C) any other foreign or domestic government.
            ```indenture' means a mortgage, deed of trust, or 
        indenture, under which there is outstanding a security, other 
        than a voting-trust certificate, constituting a claim against 
        the debtor, a claim secured by a lien on any of the debtor's 
        property, or an equity security of the debtor.
            ```indenture trustee' means a trustee under an indenture.
            ```individual with regular income' means an individual 
        whose income is sufficiently stable and regular to enable such 
        individual to make payments under a plan under chapter 13, 
        other than a stockbroker or a commodity broker.
            ```insider' includes--
                    ``(A) if the debtor is an individual--
                            ``(i) a relative of the debtor or of a 
                        general partner of the debtor;
                            ``(ii) a partnership in which the debtor is 
                        a general partner;
                            ``(iii) a general partner of the debtor; or
                            ``(iv) a corporation of which the debtor is 
                        a director, officer, or person in control;
                    ``(B) if the debtor is a corporation--
                            ``(i) a director of the debtor;
                            ``(ii) an officer of the debtor;
                            ``(iii) a person in control of the debtor;
                            ``(iv) a partnership in which the debtor is 
                        a general partner;
                            ``(v) a general partner of the debtor; or
                            ``(vi) a relative of a general partner, 
                        director, officer, or person in control of the 
                        debtor;
                    ``(C) if the debtor is a partnership--
                            ``(i) a general partner in the debtor;
                            ``(ii) a relative of a general partner in, 
                        general partner of, or person in control of the 
                        debtor;
                            ``(iii) a partnership in which the debtor 
                        is a general partner;
                            ``(iv) a general partner of the debtor; or
                            ``(v) a person in control of the debtor;
                    ``(D) if the debtor is a municipality, an elected 
                official of the debtor or relative of an elected 
                official of the debtor;
                    ``(E) an affiliate, or insider of an affiliate as 
                if such affiliate were the debtor; and
                    ``(F) a managing agent of the debtor.
            ```insolvent' means--
                    ``(A) with reference to an entity other than a 
                partnership and a municipality, being in a financial 
                condition such that the sum of the entity's debts is 
                greater than all of the entity's property, at a fair 
                valuation, exclusive of--
                            ``(i) property transferred, concealed, or 
                        removed with intent to hinder, delay, or 
                        defraud such entity's creditors; and
                            ``(ii) property that may be exempted from 
                        property of the estate under section 522;
                    ``(B) with reference to a partnership, being in a 
                financial condition such that the sum of the 
                partnership's debts is greater than the aggregate of, 
                at a fair valuation--
                            ``(i) all of the partnership's property, 
                        exclusive of property of the kind specified in 
                        subparagraph (A)(i); and
                            ``(B) the sum of the excess of the value of 
                        each general partner's nonpartnership property, 
                        exclusive of property of the kind specified in 
                        subparagraph (A), over such partner's 
                        nonpartnership debts; and
                    ``(C) with reference to a municipality, being in a 
                financial condition such that the municipality is--
                            ``(i) generally not paying its debts as 
                        they become due unless such debts are the 
                        subject of a bona fide dispute; and
                            ``(ii) unable to pay its debts as they 
                        become due.
            ```institution-affiliated party'--
                    ``(A) with respect to an insured depository 
                institution (as defined in section 3(c)(2) of the 
                Federal Deposit Insurance Act) (12 U.S.C. 1813(c)(2)), 
                has the meaning given it in section 3(u) of the Federal 
                Deposit Insurance Act (12 U.S.C. 1813(u)); and
                    ``(2) with respect to an insured credit union, has 
                the meaning given it in section 206(r) of the Federal 
                Credit Union Act (12 U.S.C. 1786(r)).
            ```insured credit union' has the meaning given it in 
        section 101(7) of the Federal Credit Union Act (12 U.S.C. 
        1752(7)).
            ```insured depository institution'--
                    ``(A) has the meaning given it in section 3(c)(2) 
                of the Federal Deposit Insurance Act (12 U.S.C. 
                1813(c)(2)); and
                    ``(B) includes an insured credit union (except as 
                provided in the definition of `Federal depository 
                institutions regulatory agency' and in subparagraph (B) 
                of the definition of `institution-affiliated party').
            ```intellectual property' means--
                    ``(A) a trade secret;
                    ``(B) an invention, process, design, or plant 
                protected under title 35;
                    ``(C) a patent application;
                    ``(D) a plant variety;
                    ``(E) a work of authorship protected under title 
                17; and
                    ``(F) a mask work protected under chapter 9 of 
                title 17, to the extent protected by applicable 
                nonbankruptcy law.
            ```judicial lien' means a lien obtained by judgment, levy, 
        sequestration, or other legal or equitable process or 
        proceeding.
            ```lien' means a charge against or interest in property to 
        secure payment of a debt or performance of an obligation.
            ```margin payment', as used in sections 362(b)(6), 546 (e) 
        and (f), 548 (d)(2) (B) and (C), 556, 741(5), 761(15), 764(b), 
        766(a), and any other provision of this title in relation to 
        forward contracts, means a payment or deposit of cash, a 
        security, or other property that is commonly known in the 
        forward contract trade as original margin, initial margin, 
        maintenance margin, or variation margin, including market-to-
        market payments or variation payments.
            ```mask work' has the meaning given it in section 901(a)(2) 
        of title 17.
            ```municipality' means a political subdivision or public 
        agency or instrumentality of a State.
            ```person' includes an individual, partnership, and 
        corporation, but does not include a governmental unit, except 
        that a governmental unit that acquires an asset from a person 
        as a result of operation of a loan guarantee agreement, or as 
        receiver or liquidating agent of a person, shall be considered 
        to be a person for purposes of section 1102.
            ```petition' means a petition filed under section 301, 302, 
        303, or 304 commencing a case under this title.
            ```purchaser' means a transferee of a voluntary transfer, 
        and includes an immediate or mediate transferee of such a 
        transferee.
            ```railroad' means a common carrier by railroad engaged in 
        the transportation of individuals or property or owner of 
        trackage facilities leased by such a common carrier.
            ```relative' means an individual related by affinity or 
        consanguinity within the third degree as determined by the 
        common law and an individual in a step or adoptive relationship 
        within such third degree.
            ```repo participant' means an entity that, on any day 
        during the period beginning 90 days before the date of the 
        filing of a petition, has an outstanding repurchase agreement 
        with the debtor.
            ```repurchase agreement' and `reverse repurchase agreement' 
        mean an agreement, including related terms, which provides for 
        the transfer of certificates of deposit, eligible bankers' 
        acceptances, or securities that are direct obligations of, or 
        that are fully guaranteed as to principal and interest by, the 
        United States or any agency of the United States against the 
        transfer of funds by the transferee of such certificates of 
        deposit, eligible bankers' acceptances, or securities with a 
        simultaneous agreement by such transferee to transfer to the 
        transferor thereof certificates of deposit, eligible bankers' 
        acceptances, or securities as described above, at a date 
        certain not later than 1 year after such transfers or on 
        demand, against the transfer of funds.
            ```security'--
                    ``(A) includes--
                            ``(i) a note;
                            ``(ii) stock;
                            ``(iii) treasury stock;
                            ``(iv) a bond;
                            ``(v) a debenture;
                            ``(vi) a collateral trust certificate;
                            ``(vii) a preorganization certificate or 
                        subscription;
                            ``(viii) a transferable share;
                            ``(ix) a voting-trust certificate;
                            ``(x) a certificate of deposit;
                            ``(xi) a certificate of deposit for 
                        security;
                            ``(xii) an investment contract or 
                        certificate of interest or participation in a 
                        profit-sharing agreement or in an oil, gas, or 
                        mineral royalty or lease, if such contract or 
                        interest is required to be the subject of a 
                        registration statement filed with the 
                        Securities and Exchange Commission under the 
                        provisions of the Securities Act of 1933 (15 
                        U.S.C. 77a et seq.), or is exempt under section 
                        3(b) of that Act (15 U.S.C. 77c(b)) from the 
                        requirement to file such a statement;
                            ``(xiii) an interest of a limited partner 
                        in a limited partnership;
                            ``(xiv) another claim or interest commonly 
                        known as a `security'; and
                            ``(xv) a certificate of interest or 
                        participation in, temporary or interim 
                        certificate for, receipt for, or warrant or 
                        right to subscribe to or purchase or sell, a 
                        security; but
                    ``(B) does not include--
                            ``(i) currency or a check, draft, bill of 
                        exchange, or bank letter of credit;
                            ``(ii) a leverage transaction (as defined 
                        in section 761);
                            ``(iii) a commodity futures contract or 
                        forward contract;
                            ``(iv) an option, warrant, or right to 
                        subscribe to or purchase or sell a commodity 
                        futures contract;
                            ``(v) an option to purchase or sell a 
                        commodity;
                            ``(vi) a contract or certificate of a kind 
                        specified in subparagraph (A)(xii) that is not 
                        required to be the subject of a registration 
                        statement filed with the Securities and 
                        Exchange Commission and is not exempt under 
                        section 3(b) of the Securities Act of 1933 (15 
                        U.S.C. 77c(b)) from the requirement to file 
                        such a statement; or
                            ``(vii) debt or an evidence of indebtedness 
                        for goods sold and delivered or services 
                        rendered.
            ```security agreement' means an agreement that creates or 
        provides for a security interest.
            ```securities clearing agency' means a person that is 
        registered as a clearing agency under section 17A of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78q-1) or whose 
        business is confined to the performance of functions of a 
        clearing agency with respect to exempted securities (as defined 
        in section 3(a)(12) of that Act (15 U.S.C. 78c(12)) for the 
        purposes of that section 17A.
            ```security interest' means a lien created by an agreement.
            ```settlement payment' means, for purposes of the forward 
        contract provisions of this title, a preliminary settlement 
        payment, partial settlement payment, interim settlement 
        payment, settlement payment on account, final settlement 
        payment, net settlement payment, or any other similar payment 
        commonly used in the forward contract trade.
            ```State' includes the District of Columbia and Puerto 
        Rico, except for the purpose of defining who may be a debtor 
        under chapter 9.
            ```statutory lien' means a lien arising solely by force of 
        a statute on specified circumstances or conditions, or lien of 
        distress for rent, whether or not statutory, but does not 
        include a security interest or judicial lien, whether or not 
        such interest or lien is provided by or is dependent on a 
        statute and whether or not such interest or lien is made fully 
        effective by statute.
            ```stockbroker' means a person--
                    ``(A) with respect to which there is a customer (as 
                defined in section 741); and
                    ``(B) that is engaged in the business of effecting 
                transactions in securities--
                            ``(i) for the account of others; or
                            ``(ii) with members of the general public, 
                        from or for such person's own account.
            ```swap agreement' means--
                    ``(A) an agreement (including terms and conditions 
                incorporated by reference therein) which is a rate swap 
                agreement, basis swap, forward rate agreement, 
                commodity swap, interest rate option, forward foreign 
                exchange agreement, rate cap agreement, rate floor 
                agreement, rate collar agreement, currency swap 
                agreement, cross-currency rate swap agreement, currency 
                option, or any other similar agreement (including any 
                option to enter into any of the foregoing);
                    ``(2) any combination of the foregoing; or
                    ``(3) a master agreement for any of the foregoing 
                together with all supplements.
            ```swap participant' means an entity that, at any time 
        before the filing of a petition, has an outstanding swap 
        agreement with the debtor.
            ```timeshare interest' means an interest purchased in a 
        timeshare plan which grants the purchaser the right to use and 
        occupy accommodations, facilities, or recreational sites, 
        whether improved or unimproved, pursuant to a timeshare plan.
            ```timeshare plan' means an interest in any arrangement, 
        plan, scheme, or similar device (but not including an exchange 
        program), whether by membership, agreement, tenancy in common, 
        sale, lease, deed, rental agreement, license, right to use 
        agreement, or by any other means, whereby a purchaser of the 
        interest, in exchange for consideration, receives a right to 
        use accommodations, facilities, or recreational sites, whether 
        improved or unimproved, for a specific period of time less than 
        a full year during any given year, but not necessarily for 
        consecutive years, and which extends for a period of more than 
        3 years.
            ```transfer' means a mode, direct or indirect, absolute or 
        conditional, voluntary or involuntary, of disposing of or 
        parting with property or with an interest in property, 
        including retention of title as a security interest and 
        foreclosure of the debtor's equity of redemption.
            ```United States', when used in a geographical sense, 
        includes all locations where the judicial jurisdiction of the 
        United States extends, including territories and possessions of 
        the United States.
    (b) References to Definitions in Title XI.--
            (1) Section 362.--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''.
            (2) Section 507.--Section 507(a)(5) of title 11, United 
        States Code, is amended--
                    (A) by striking ``section 557(b)(1)'' and inserting 
                ``section 557(b)''; and
                    (B) by striking ``section 557(b)(2)'' and inserting 
                ``section 557(b)''.
            (3) 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''.
            (4) Section 548.--Section 548(d)(2) of title 11, United 
        States Code, is amended--
                    (A) in subparagraph (B)--
                            (i) by striking ``section 101(34), 741(5) 
                        or 761(15)'' and inserting ``section 101, 741, 
                        or 761''; and
                            (ii) by striking ``section 101(35) or 
                        741(8)'' and inserting ``section 101 or 741''; 
                        and
                    (B) in subparagraph (C)--
                            (i) by striking ``section 741(5) or 
                        761(15)'' and inserting ``section 741 or 761''; 
                        and
                            (ii) by striking ``section 741(8)'' and 
                        inserting ``section 741''.
            (5) Section 555.--Section 555 of title 11, United States 
        Code, is amended by striking ``section 741(7)'' and inserting 
        ``section 741''.
            (6) Section 556.--Section 556 of title 11, United States 
        Code, is amended by striking ``section 761(4)'' and inserting 
        ``section 761''.
    (c) References to Definitions in Other Laws.--
            (1) Federal credit union act.--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) Federal deposit insurance act.--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 322(a) by striking ``1302, or 1202'' and 
        inserting ``1202, or 1302'',
            (2) 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'';
            (3) in section 348--
                    (A) in subsection (b) by striking ``728(a), 728(b), 
                1102(a), 1110(a)(1), 1121(b), 1121(c), 1141(d)(4), 
                1146(a), 1146(b), 1301(a), 1305(a), 1201(a), 1221, and 
                1228(a)'' and inserting ``728 (a) and (b), 1021, 1028, 
                1102(a), 1110(a)(1), 1121 (b) and (c), 1141(d)(4), 1146 
                (a) and (b), 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'';
            (4) in section 349(a) by striking ``109(f)'' and inserting 
        ``109(g)'';
            (5) in section 362(b)--
                    (A) by striking ``or'' at the end of paragraph 
                (10);
                    (B) in paragraph (12) by striking ``the Ship 
                Mortgage Act, 1920 (46 App. U.S.C. 911 et seq.)'' and 
                inserting ``section 31325 of title 46, United States 
                Code'';
                    (C) in paragraph (13)--
                            (i) by striking ``the Ship Mortgage Act, 
                        1920 (46 App. U.S.C. 911 et seq.)'' and 
                        inserting ``section 31325 of title 46, United 
                        States Code''; and
                            (ii) by striking ``or'' at the end;
                    (D) in paragraph (14), as added by section 102 of 
                Public Law 101-311 (104 Stat. 267) at the end of the 
                subsection, by removing it from the end of the 
                subsection, inserting it after paragraph (13), and 
                striking the period at the end and inserting a 
                semicolon; and
                    (E) by redesignating paragraphs (14), (15), and 
                (16), as added by section 3007(a) of the Student Loan 
                Default Prevention Initiative Act of 1990 (104 Stat. 
                1388-28), as paragraphs (15), (16), and (17), striking 
                ``or'' at the end of paragraph (16), as redesignated by 
                this subparagraph, and adding ``or'' at the end of 
                paragraph (17), as redesignated by this subparagraph;
            (6) in section 363(c)(1) by striking ``1304, 1203, or 
        1204'' and inserting ``1203, 1204, or 1304'';
            (7) in section 364(a) by striking ``1304, 1203, or 1204'' 
        and inserting ``1203, 1204, or 1304'';
            (8) in section 365--
                    (A) in subsection (g)(2) (A) and (B) by striking 
                ``1307, or 1208'' each place it appears and inserting 
                ``1208, or 1307'';
                    (B) in subsection (n)(1)(B) by striking ``to to'' 
                and inserting ``to''; and
                    (C) 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 
                an agency)'';
            (9) in section 507--
                    (A) in subsection (a)(8) 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 an agency)''; and
                    (B) in subsection (d) by striking ``(a)(3), (a)(4), 
                (a)(5), or (a)(6)'' and inserting ``(a) (3), (4), (6), 
                or (7)'';
            (10) in section 522(d)(10)(E)(iii) by striking ``401(a), 
        401(b), 403(a), 403(b), 408, or 409 Internal Revenue Code of 
        1954 (26 U.S.C. 401(a), 401(b), 403(a), 403(b), 408, or 409)'' 
        and inserting ``section 401 (a) or (b), 403 (a) or (b), 408, or 
        409 of the Internal Revenue Code of 1986'';
            (11) in section 523(a) --
                    (A) in subsection (a)--
                            (i) by striking ``1141,, 1228(a), 
                        1228(b),'' and inserting ``1141, 1228 (a) or 
                        (b),''; and
                            (ii) in paragraph (12) by striking the 
                        semicolon at the end and inserting a period; 
                        and
                    (B) in subsection (e) by striking ``depository 
                institution or insured credit union'' and inserting 
                ``insured depository institution'';
            (12) in section 524--
                    (A) in subsection (a)(3) by striking ``or 
                1328(c)(1)'' and inserting ``, 1228(a)(1), or 
                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;
            (12) in section 542(e) by striking ``to to'' and inserting 
        ``to'';
            (13) in section 543(d)(1) by striking ``of equity'' and 
        inserting ``if equity'';
            (14) in section 546(a)(1) by striking ``1302, or 1202'' and 
        inserting ``1202, or 1302'';
            (15) in section 549(b) by inserting ``the trustee may not 
        avoid under subsection (a) of this section'' after 
        ``involuntary case,'';
            (16) 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),'';
            (17) in section 706(a) by striking ``1307, or 1208'' and 
        inserting ``1208, or 1307'';
            (18) in section 724(d) by striking ``Internal Revenue Code 
        of 1954 (26 U.S.C. 6323)'' and inserting ``Internal Revenue 
        Code of 1986'';
            (19) in section 726(b)--
                    (A) by inserting a comma after ``section 1112''; 
                and
                    (B) by inserting ``1009,'' after ``chapter under 
                section'';
            (20) in section 743 by striking ``342(a)'' and inserting 
        ``342'';
            (21) 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'';
            (22) in section 1104(c) inserting a comma after 
        ``interest'';
            (23) in section 1123(a)(1) inserting a comma after 
        ``title'' the last place it appears;
            (24) in section 1129(a)--
                    (A) in paragraph (4) by striking the semicolon at 
                the end and inserting a period; and
                    (B) in paragraph (12) inserting ``of title 28'' 
                after ``section 1930'';
            (25) in section 1145(a) by striking ``does'' and inserting 
        ``do'';
            (26) in section 1226(b)(2)--
                    (A) by striking ``1202(d) of this title'' and 
                inserting ``1202(c)''; and
                    (B) by striking ``1202(e) of this title'' and 
                inserting ``1202(d)'';
            (27) in section 1302(b)(3) by striking ``and'' at the end;
            (28) in section 1328(a)--
                    (A) in paragraph (2) by striking ``(5) or (8)'' and 
                inserting ``(5), (8), or (9)''; and
                    (B) by striking paragraph (3), as added by section 
                3103 of Public Law 101-64 (104 Stat. 4916)''; and
            (29) in the table of chapters by striking the item relating 
        to chapter 15.

SEC. 502. TITLE 28, 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--SEVERABILITY; EFFECTIVE DATE; APPLICATION OF AMENDMENTS

SEC. 601. 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. 602. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as provided in subsection (b), this Act 
and the amendments made by this Act shall take effect on the date of 
enactment of this Act.
    (b) Application of Amendments.--
            (1) In general.--Except as provided in section 115(c) and 
        in paragraph (2) of this subsection, the amendments made by 
        this Act shall not apply with respect to cases commenced under 
        title 11, United States Code, before the date of enactment of 
        this Act.
            (2) Section 1110 of title 11.--Section 1110 of title 11, 
        United States Code, as amended by section 203, shall apply with 
        respect to any lease (as defined in section 1110(c)), entered 
        into in connection with a settlement of any litigation in any 
        case pending under title 11, United States Code, on the date of 
        enactment of this Act.

                                 <all>

S 540 IS----2
S 540 IS----3
S 540 IS----4
S 540 IS----5
S 540 IS----6
S 540 IS----7
S 540 IS----8
S 540 IS----9
S 540 IS----10