[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 540 Referred in House (RFH)]

103d CONGRESS
  2d Session
                                 S. 540


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 26, 1994

               Referred to the Committee on the Judiciary

_______________________________________________________________________

                                 AN ACT


 
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 1994''.
    (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 procedure for reaffirmation of debts.
Sec. 104. Powers of bankruptcy courts.
Sec. 105. Participation by bankruptcy administrator at meetings of 
                            creditors and equity security holders.
Sec. 106. Definition relating to eligibility to serve on chapter 11 
                            committees.
Sec. 107. Increased incentive compensation for trustees.
Sec. 108. Dollar adjustments.
Sec. 109. Premerger notification.
Sec. 110. Allowance of creditor committee expenses.
Sec. 111. Judicial conference report.
Sec. 112. Service of process in bankruptcy proceedings on an insured 
                            depository institution.
Sec. 113. Meetings of creditors and equity security holders.
Sec. 114. Tax assessment.
Sec. 115. Additional trustee compensation.
Sec. 116. Extension to certain judicial officials of life insurance 
                            rules currently applicable to Federal 
                            judges.
Sec. 117. Settlement of claims and demands for payment.
Sec. 118. Recommendations of the judicial conference for the 
                            appointment of bankruptcy judges.
               TITLE II--COMMERCIAL ISSUES IN BANKRUPTCY

Sec. 201. Small businesses.
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 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. Continued perfection.
Sec. 220. Notices to creditors.
Sec. 221. Supplemental injunctions.
Sec. 222. Rejection of unexpired leases of real property or timeshare 
                            interests.
Sec. 223. Contents of plan.
Sec. 224. Priority for independent sales representatives.
Sec. 225. Amend Bankruptcy Code.
                 TITLE III--CONSUMER BANKRUPTCY ISSUES

Sec. 301. Period for curing default relating to principal residence.
Sec. 302. Nondischargeability of fine under chapter 13.
Sec. 303. Impairment of exemptions.
Sec. 304. Protection of child support and alimony.
Sec. 305. Bankruptcy petition preparers.
Sec. 306. Conversion or dismissal.
Sec. 307. Contents of plan.
Sec. 308. Stay of action against codebtor.
Sec. 309. Exemption for household goods.
Sec. 310. Professional fees.
Sec. 311. Interest on interest.
Sec. 312. Fairness to condominium and cooperative owners.
Sec. 313. Nonavoidability of fixing of lien on tools and implements of 
                            trade, animals, and crops.
Sec. 314. Nondischargeability of debt for money, property, services, or 
                            credit obtained by false pretense, false 
                            representation, or fraud.
Sec. 315. Conversion of case under chapter 13.
Sec. 316. Rent-to-own contracts.
                 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--BANKRUPTCY FRAUD

Sec. 501. Bankruptcy fraud.
                    TITLE VI--TECHNICAL CORRECTIONS

Sec. 601. Title 11, United States Code.
Sec. 602. Title 28, United States Code.
   TITLE VII--SEVERABILITY; EFFECTIVE DATE; APPLICATION OF AMENDMENTS

Sec. 701. Severability.
Sec. 702. Effective date; application of amendments.
                  TITLE VIII--MISCELLANEOUS PROVISIONS

Sec. 801. Limitation on State taxation of certain pension income.
Sec. 802. Protection against discriminatory treatment of applications 
                            for student loans.
Sec. 803. Chicago Housing Authority.

              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 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. 104. POWERS OF BANKRUPTCY COURTS.

    (a) Status Conferences.--Section 105 of title 11, United States 
Code, is amended by adding at the end the following 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) 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) 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;
            ``(ii) establishment of such a service would result in 
        undue delay or increased cost to parties in cases under title 
        11; or
            ``(iii)(I) other factors of sound judicial administration 
        make the creation of such a service inappropriate; and
            ``(II) bankruptcy appeals are being heard and decided by 
        the district courts in a timely manner.
    ``(2)(A)(i) A judicial council may at any time reconsider its 
decision to create or not to create a bankruptcy appellate panel 
service.
    ``(ii) A decision on reconsideration under clause (i) shall be 
submitted to the Judicial Conference of the United States within 90 
days after it is made.
    ``(B) If the judicial council of a circuit finds that a 
circumstance described in paragraph (1)(B) (i), (ii), or (iii) 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.''.
    (c) 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''.
    (d) Rules of Procedure and Evidence; Method of Prescribing.--
Section 2073 of title 28, United States Code, is amended--
            (1) in subsection (a)(2) by striking ``section 2072'' and 
        inserting ``sections 2072 and 2075''; and
            (2) in subsections (d) and (e) by inserting ``or 2075'' 
        after ``2072'' each place it appears.
    (f) Effective Date of Bankruptcy Rules.--The third undesignated 
paragraph of section 2075 of title 28, United States Code, is amended 
to read as follows:
    ``The Supreme Court shall transmit to Congress not later than May 1 
of the year in which a rule prescribed under this section is to become 
effective a copy of the proposed rule. The rule shall take effect no 
earlier than December 1 of the year in which it is transmitted to 
Congress unless otherwise provided by law.''.

SEC. 105. PARTICIPATION BY BANKRUPTCY ADMINISTRATOR AT MEETINGS OF 
              CREDITORS AND EQUITY SECURITY HOLDERS.

    (a) Presiding Officer.--A bankruptcy administrator appointed under 
section 302(d)(3)(I) of the Bankruptcy Judges, United States Trustees, 
and Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note; 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. 106. 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. 107. INCREASED INCENTIVE COMPENSATION FOR TRUSTEES.

    Section 326(a) of title 11, United States Code, is amended to read 
as follows:
    ``(a)(1) In a case under chapter 7 or 11, the court may allow 
reasonable compensation of the trustee under section 330 for the 
trustee's services, payable after the trustee renders such services, in 
an amount that does not exceed--
            ``(A) the value of the funds and other property disbursed 
        or turned over by the trustee to parties in interest in the 
        case (excluding the debtor but including holders of secured 
        claims), multiplied by
            ``(B) the applicable percentage stated in paragraph (2).
    ``(2) The applicable percentage stated in this paragraph is the 
following percentage of the value of the funds and other property 
disbursed or turned over by the trustee:
            ``(A) 25 percent of any amount up to $4,999.
            ``(B) 10 percent of any amount between $5,000 and $49,999 
        inclusive.
            ``(C) 5 percent of any amount between $50,000 and $999,999 
        inclusive.
            ``(D) A reasonable percentage, not to exceed 3 percent, of 
        any amount greater than $999,999.''.

SEC. 108. DOLLAR ADJUSTMENTS.

    (a) Who May Be a Debtor Under Chapter 13.--Section 109(e) of title 
11, United States Code, is amended--
            (1) by striking ``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)--
                    (A) by striking ``, to the extent of $900 for each 
                such individual,''; and
                    (B) by inserting ``, to the extent of $1,800 for 
                each such individual or, in the case of a deposit made 
                jointly by 2 or more individuals with respect to the 
                same purchase, lease, or rental, for each such group of 
                individuals'' before the period.
    (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. 109. PREMERGER NOTIFICATION.

    Sections 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 
                15th day after the date of receipt of the notification, 
                unless the waiting period is extended--
                            ``(i) pursuant to subsection (e)(2) (as it 
                        applies to a cash tender offer) or (g)(2) of 
                        that section; or
                            ``(ii) by the court, after notice and a 
                        hearing.''.

SEC. 110. 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 (including fees of an attorney 
        or accountant for professional services rendered for the member 
        to the extent allowable under paragraph (4)), other than claims 
        for compensation for services rendered as a member of the 
        committee.''.

SEC. 111. JUDICIAL CONFERENCE REPORT.

    Not later than 1 year 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. 112. SERVICE OF PROCESS IN BANKRUPTCY PROCEEDINGS ON AN INSURED 
              DEPOSITORY INSTITUTION.

    Rule 7004 of Bankruptcy Rules is amended--
            (1) in subsection (b) by striking ``In addition'' and 
        inserting ``Except as provided in subdivision (h), in 
        addition''; and
            (2) by adding at the end the following new subdivision:
    ``(h) Service of Process on an Insured Depository Institution.--
Notwithstanding any other provision of this rule or any other rule or 
law, service on an insured depository institution (as defined in 
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) shall 
be made by certified mail addressed to an officer of the institution 
unless--
            ``(1) the institution has appeared by its attorney, in 
        which case the attorney shall be served by first class mail;
            ``(2) the court orders otherwise after service upon the 
        institution by certified mail of notice of an application to 
        permit service on the institution by first class mail sent to 
        an officer of the institution designated by the institution; or
            ``(3) the institution has waived in writing its entitlement 
        to service by certified mail by designating an officer to 
        receive service.''.

SEC. 113. 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.''.

SEC. 114. TAX ASSESSMENT.

    Section 362(b)(9) of title 11, United States Code, is amended to 
read as follows:
            ``(9) under subsection (a), of--
                    ``(A) an audit by a governmental unit to determine 
                tax liability;
                    ``(B) the issuance to the debtor by a governmental 
                unit of a notice of tax deficiency;
                    ``(C) a demand for tax returns; an assessment of an 
                uncontested or agreed upon tax liability; or
                    ``(D) the making of an assessment for any tax and 
                issuance of a notice and demand for payment of such an 
                assessment (but any tax lien that would otherwise 
                attach to property of the estate by reason of such an 
                assessment shall not take effect until the property is 
                no longer property of the estate).''.

SEC. 115. ADDITIONAL TRUSTEE COMPENSATION.

    Section 330(b) of title 11, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end thereof the following new 
        paragraph:
    ``(2) The Judicial Conference of the United States shall prescribe 
additional fees of the same kind as prescribed under section 1914(b) of 
title 28, to pay $15 to the trustee serving in such case after such 
trustee's services are rendered. Such $15 shall be paid in addition to 
the amount paid under paragraph (1).''.

SEC. 116. EXTENSION TO CERTAIN JUDICIAL OFFICIALS OF LIFE INSURANCE 
              RULES CURRENTLY APPLICABLE TO FEDERAL JUDGES.

    (a) Eligibility.--Section 8701(a) of title 5, United States Code, 
is amended--
            (1) in paragraph (9) by striking ``and'' after the 
        semicolon;
            (2) in paragraph (10) by adding ``and'' after the 
        semicolon; and
            (3) by inserting after paragraph (10) and preceding the 
        matter before subparagraph (A) the following new paragraph:
            ``(11) a judicial official (as defined in section 376(a)(1) 
        of title 28), including--
                    ``(i) a judge of the United States Court of Federal 
                Claims--
                            ``(I) who is in regular active service, or
                            ``(II) who is retired from regular active 
                        service under section 178 of title 28;
                    ``(ii) a judge of the District Court of Guam, the 
                District Court of the Northern Mariana Islands, or the 
                District Court of the Virgin Islands--
                            ``(I) who is in regular active service, or
                            ``(II) who is retired from regular active 
                        service under section 373 of title 28; and
                    ``(iii) a bankruptcy judge or a magistrate judge--
                            ``(I) who is in regular active service, or
                            ``(II) who retired after attaining age 65 
                        from regular active service under chapter 83 or 
                        84 of this title, section 377 of title 28, or 
                        section 2(c) of the Retirement and Survivors' 
                        Annuities for Bankruptcy Judges and Magistrates 
                        Act of 1988 (28 U.S.C. 377 note; Public Law 
                        100-659);''.
    (b) Continuation of Coverage.--
            (1) Termination; optional insurance.--(A) Sections 8706(a) 
        and 8714b(c)(1) of title 5, United States Code, are each 
        amended in the second sentence by inserting ``and judicial 
        officials specifically included under section 8701(a)(11)'' 
        after ``section 8701(a)(5) (ii) and (iii)''.
            (B) Sections 8714a(c)(1) and 8714c(c)(1) of title 5, United 
        States Code, are each amended by adding after the first 
        sentence ``Justices and judges described under section 
        8701(a)(5) (ii) and (iii) and judicial officials specifically 
        included under section 8701(a)(11) of this chapter are deemed 
        to continue in active employment for purposes of this 
        chapter.''.
            (2) Application of amendments.--The amendments made by 
        paragraph (1) shall apply to a judicial officer described in 
        section 8701(a)(11) of title 5, United States Code (as amended 
        by this section) who--
                    (A) is retired under chapter 83 or 84 of title 5, 
                United States Code, section 178, 373, or 377 of title 
                28, United States Code, or section 2(c) of the 
                Retirement and Survivors' Annuities for Bankruptcy 
                Judges and Magistrates Act of 1988 (28 U.S.C. 377 
                note); and
                    (B) retires on or after August 1, 1987.
    (c) Technical Amendments.--
            (1) Section 8714a.--Section 8714a(c) of title 5, United 
        States Code, is amended by striking paragraph (3).
            (2) Section 8714b.--Section 8714b(c)(1) is amended by 
        striking the third sentence.

SEC. 117. SETTLEMENT OF CLAIMS AND DEMANDS FOR PAYMENT.

    Section 105 of title 11, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d) A court may issue an injunction that requires claims and 
demands to be presented for payment solely to a trust or other vehicle 
that is established for the purpose of settling such claims and demands 
and is approved by the court and entered into pursuant to an order 
approving a plan of reorganization.''.

SEC. 118. RECOMMENDATIONS OF THE JUDICIAL CONFERENCE FOR THE 
              APPOINTMENT OF BANKRUPTCY JUDGES.

    Section 152(b) of title 28, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(4)(A) If, as a result of a review of judicial districts under 
paragraph (3), the Judicial Conference determines that there is a need 
for a number (including a fractional number) of additional bankruptcy 
judges for any judicial district, but the Judicial Conference 
determines to submit to Congress a recommendation that the appointment 
of a lesser number of bankruptcy judges be authorized for that 
district, the Judicial Conference shall submit with the recommendation 
a statement detailing--
            ``(i) the difference between the number of additional 
        bankruptcy judges that has been determined to be needed and the 
        number recommended to be authorized; and
            ``(ii) the methods by which those numbers were determined.
    ``(B) If the Judicial Conference has submitted to Congress a 
recommendation that a lesser number of additional bankruptcy judges be 
authorized to be appointed than a review of judicial districts shows is 
needed for a judicial district, the Judicial Conference shall submit a 
subsequent recommendation that satisfies the continuing need for 
additional bankruptcy judges for that judicial district unless--
            ``(i) the Congress, without having received such a 
        recommendation, authorizes the requisite number of additional 
        bankruptcy judges to be appointed for that district; or
            ``(ii) a subsequent review of judicial districts shows that 
        that number of additional bankruptcy judges is no longer needed 
        for that district.''.

               TITLE II--COMMERCIAL ISSUES IN BANKRUPTCY

SEC. 201. SMALL BUSINESSES.

    (a) Definition.--Section 101 of title 11, United States Code, as 
amended by section 501, 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) Creditors' Committees.--Section 1102(a) of title 11, United 
States Code, is amended--
            (1) in paragraph (1) by striking ``As'' and inserting 
        ``Except as provided in paragraph (3), as''; and
            (2) by adding at the end the following new paragraph:
    ``(3) On request of a party in interest in a case in which the 
debtor is a small business, the court may order that a committee of 
creditors not be appointed.''.
    (c) Conversion or Dismissal.--Section 1112(b) of title 11, United 
States Code, is amended by inserting ``or bankruptcy administrator'' 
after ``United States trustee''.
    (d) Who May File a Plan.--Section 1121 of title 11, United States 
Code, is amended by adding at the end the following new subsection:
    ``(d) In a case in which the debtor is a small business--
            ``(A) only the debtor may file a plan until after 90 days 
        after the date of the order for relief under this chapter;
            ``(B) all plans for relief shall be filed within 150 days 
        after the date of the order for relief; and
            ``(C) on request of a party in interest made within the 
        respective periods specified in subparagraphs (A) and (B) and 
        after notice and a hearing, the court may--
                    ``(i) reduce the 90-day period or the 150-day 
                period specified in subparagraph (A) or (B) for cause; 
                and
                    ``(ii) increase the 90-day period specified in 
                subparagraph (A) if the debtor shows that the need for 
                an increase is caused by circumstances for which the 
                debtor should not be held accountable.''.
    (e) Postpetition Disclosure.--Section 1125 of title 11, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(f) Notwithstanding subsection (b), in a case in which the debtor 
is a small business--
            ``(1) the court may conditionally approve a disclosure 
        statement subject to final approval after notice and a hearing;
            ``(2) acceptances and rejections of a plan may be solicited 
        based on a conditionally approved disclosure statement so long 
        as the debtor provides adequate information to each holder of a 
        claim or interest that is solicited, but a conditionally 
        approved disclosure statement shall be mailed at least 10 days 
        prior to the date of the hearing on confirmation of the plan; 
        and
            ``(3) a hearing on the disclosure statement may be combined 
        with a hearing on confirmation of a plan.''.

SEC. 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, 363, or 1129 or by any power 
of the court to enjoin the taking of possession unless--
            ``(A) before the date that is 60 days after the date of the 
        order for relief under this chapter, the trustee, subject to 
        the court's approval, agrees to perform all obligations of the 
        debtor that become due on or after the date of the order under 
        such security agreement, lease, or conditional sale contract; 
        and
            ``(B) any default, other than a default of a kind specified 
        in section 365(b)(2), under such security agreement, lease, or 
        conditional sale contract--
                    ``(i) that occurs before the date of the order is 
                cured before the expiration of such 60-day period; and
                    ``(ii) that occurs after the date of the order is 
                cured before the later of--
                            ``(I) the date that is 30 days after the 
                        date of the default; or
                            ``(II) the expiration of such 60-day 
                        period.
    ``(2) Equipment is described in this paragraph if it is--
            ``(A) an aircraft, aircraft engine, propeller, appliance, 
        or spare part (as defined in section 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 that 
        section, except that for the purposes of this section the term 
        also includes an air carrier in intrastate commerce); 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, 363, or 1129 or by any power of the court 
to enjoin the taking of possession, unless--
            ``(A) before the date that is 60 days after the date of 
        commencement of a case under this chapter, the trustee, subject 
        to the court's approval, agrees to perform all obligations of 
        the debtor that become due on or after the date of commencement 
        of the case under such security agreement, lease, or 
        conditional sale contract; and
            ``(B) any default, other than a default of a kind described 
        in section 365(b)(2), under such security agreement, lease, or 
        conditional sale contract--
                    ``(i) that occurs before the date of commencement 
                of the case and is an event of default therewith is 
                cured before the expiration of such 60-day period; and
                    ``(ii) that occurs or becomes an event of default 
                after the date of commencement of the case is cured 
                before the later of--
                            ``(I) the date that is 30 days after the 
                        date of the default or event of default; or
                            ``(II) the expiration of such 60-day 
                        period.
    ``(2) Equipment is described in this paragraph if it is rolling 
stock equipment or accessories used on such equipment, including 
superstructures and racks, that is subject to a security interest 
granted by, leased to, or conditionally sold to the debtor.
    ``(3) Paragraph (1) applies to a secured party, lessor, or 
conditional vendor acting in its own behalf or acting as trustee or 
otherwise in behalf of another party.
    ``(b) The trustee and the secured party, lessor, or conditional 
vendor whose right to take possession is protected under subsection (a) 
may agree, subject to the court's approval, to extend 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 and 1168 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(d)(3) 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)(1) Except as provided in paragraph (2), 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.
    ``(2) This subsection does not apply to an executory contract that 
is related to, or to an unexpired lease of real property in, a shopping 
center.''.

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--
                    ``(I) property of the debtor acquired before the 
                commencement of the case; and
                    ``(II)(aa) to amounts paid as rents of such 
                property; or
                    ``(bb) to amounts paid for the use or occupancy of 
                such property (including fees, charges, accounts, or 
                other payments for the use or occupancy of rooms and 
                other public facilities in a property such as a hotel, 
                motel, or other lodging),
the security interest extends to such amounts paid to the estate as 
rents or as fees, charges, accounts, or other payments after the 
commencement of the case to the extent provided in the security 
agreement, whether or not the security interest in such rents or such 
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 striking the period at the end of paragraph (17) and 
        inserting ``; or''; 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 statute or the debtor's agreement authorizing such 
        withholding and collection for the benefit of a qualified 
        employer plan (within the meaning of section 72(p)(4) of the 
        Internal Revenue Code of 1986), to the extent that the amounts 
        withheld and collected are used solely for payments relating to 
        a loan from the plan secured by the debtor's nonforfeitable 
        accrued benefit under the plan.''.
    (b) Exceptions to Discharge.--Section 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 qualified employer plan (within the 
        meaning of section 72(p)(4) of the Internal Revenue Code of 
        1986) pursuant to a loan from the plan secured by the debtor's 
        nonforfeitable accrued benefit under the plan.''.
    (c) Property of the Estate.--Section 541(b) of title 11, United 
States Code, as amended by section 501(d)(12), is amended in paragraph 
(1)--
            (1) by striking ``or'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(E) any nontransferable interest of the debtor in a 
        qualified employer plan (within the meaning of section 72(p)(4) 
        of the Internal Revenue Code of 1986) to the extent not 
        otherwise excluded from the debtor's estate pursuant to 
        subsection (c)(2).''.
    (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'' and 
        inserting ``for reasonable and necessary services rendered by 
        an indenture trustee''.

SEC. 210. PAYMENT OF TAXES WITH BORROWED FUNDS.

    Section 523(a) of title 11, United States Code, as amended by 
section 207(b), is amended--
            (1) by striking ``or'' at the end of paragraph (12);
            (2) by adding ``or'' at the end of paragraph (13); and
            (3) by adding at the end the following new paragraph:
            ``(14) incurred to pay a tax or customs duty that would be 
        nondischargeable pursuant to paragraph (1).''.

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 purchase price of such goods 
against any claim of the creditor against the debtor that arose before 
the commencement of the case.''.
    (b) Setoff.--Section 553(b)(1) is amended by inserting ``546(h),'' 
after ``365(h)(2),''.

SEC. 212. EXCEPTION TO DISCHARGE.

    Section 523(a)(2)(C) 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, as amended by 
section 207(c), is amended in paragraph (1)--
            (1) by striking ``or'' at the end of subparagraph (D);
            (2) by striking the period at the end of subparagraph (E) 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(F) any interest in cash or cash equivalents that 
        constitute proceeds of a sale by the debtor of a money order 
        that is made--
                    ``(i) on or after the date that is 14 days prior to 
                the date on which the petition is filed; and
                    ``(ii) 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 of title 11, United States Code, is amended in 
subsection (c)(3)(B) and subsection (e)(2) 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 subparagraph (B) 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. CONTINUED PERFECTION.

    (a) Automatic Stay.--Section 362(b)(3) of title 11, United States 
Code, is amended by inserting ``, or to maintain or continue the 
perfection of,'' after ``to perfect''.
    (b) Limitations On Avoiding Powers.--Section 546(b) of title 11, 
United States Code, is amended to read as follows:
    ``(b)(1) The rights and powers of a trustee under sections 544, 
545, and 549 of this title are subject to any generally applicable law 
that--
            ``(A) permits perfection of an interest in property to be 
        effective against an entity that acquires rights in the 
        property before the date of perfection; or
            ``(B) provides for the maintenance or continuation of 
        perfection of an interest in property to be effective against 
        an entity that acquires rights in the property before the date 
        on which action is taken to effect such maintenance or 
        continuation.
    ``(2) If--
            ``(A) a law described in paragraph (1) requires seizure of 
        property that is subject to a perfected interest or 
        commencement of an action to accomplish perfection or 
        maintenance or continuation of an interest in property; and
            ``(B) the property has not been seized or an action has not 
        been commenced before the date of the filing of the petition,
the interest in such property shall be perfected, or perfection of such 
interest shall be maintained or continued, by notice within the time 
fixed by that law for the seizure of property or commencement of an 
action.''.

SEC. 220. NOTICES TO CREDITORS.

    Section 342 of title 11, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) If notice is required to be given by the debtor to a creditor 
under this title, any rule, any applicable law, or any order of the 
court, such notice shall contain the name and address of the debtor and 
the account number, if any, of the debt owed to the creditor if the 
account number is known to or reasonably ascertainable by the 
debtor.''.

SEC. 221. SUPPLEMENTAL INJUNCTIONS.

    Section 524 of title 11, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g)(1)(A) After notice and hearing, a court that enters an order 
confirming a plan of reorganization under chapter 11 may issue an 
injunction to supplement the injunctive effect of a discharge under 
this section.
    ``(B) An injunction may be issued under subparagraph (A) to enjoin 
persons and governmental units from taking legal action for the purpose 
of directly or indirectly collecting, recovering, or receiving payment 
or recovery of, on, or with respect to any claim or demand that, under 
a plan of reorganization, is to be paid in whole or in part by a trust 
described in paragraph (2)(B)(i), except such legal actions as are 
expressly allowed by the injunction, the confirmation order, or the 
plan of reorganization.
    ``(2)(A) If the requirements of subparagraph (B) are met at any 
time, then, after entry of an injunction under paragraph (1), any 
proceeding that involves the validity, application, construction, or 
modification of the injunction or of this subsection with respect to 
the injunction may be commenced only in the district court in which the 
injunction was entered, and such court shall have exclusive 
jurisdiction over any such proceeding without regard to the amount in 
controversy.
    ``(B) The requirements of this subparagraph are that--
            ``(i) the injunction is to be implemented in connection 
        with a trust that, pursuant to the plan of reorganization--
                    ``(I) is to assume the liabilities of a debtor 
                which at the time of entry of the order for relief has 
                been named as a defendant in personal injury, wrongful 
                death, or property-damage actions seeking recovery for 
                damages allegedly caused by the presence of, or 
                exposure to, asbestos or asbestos-containing products;
                    ``(II) is to be funded in whole or in part by the 
                securities of 1 or more debtors involved in the plan of 
                reorganization and by the obligation of such debtor or 
                debtors to make future payments;
                    ``(III) is to own, or by the exercise of rights 
                granted under the plan could own, a majority of the 
                voting shares of--
                            ``(aa) each such debtor;
                            ``(bb) the parent corporation of each such 
                        debtor; or
                            ``(cc) a subsidiary of each such debtor 
                        that is also a debtor; and
                    ``(IV) is to use its assets or income to pay claims 
                and demands; and
            ``(ii) the court, at any time pursuant to its authority 
        under the plan, over the trust, or otherwise, determines that--
                    ``(I) the debtor may be subject to substantial 
                future demands for payment arising out of the same or 
                similar conduct or events that gave rise to the claims 
                that are addressed by the injunction;
                    ``(II) the actual amounts, numbers, and timing of 
                such future demands cannot be determined;
                    ``(III) pursuit of such demands outside the 
                procedures prescribed by the plan may threaten the 
                plan's purpose to deal equitably with claims and future 
                demands;
                    ``(IV) as part of the process of seeking approval 
                of the plan of reorganization--
                            ``(aa) the terms of the injunction proposed 
                        to be issued under paragraph (1)(A), including 
                        any provisions barring actions against third 
                        parties pursuant to paragraph (4)(A), shall be 
                        set out in the plan of reorganization and in 
                        any disclosure statement supporting the plan; 
                        and
                            ``(bb) a separate class or classes of the 
                        claimants whose claims are to be addressed by a 
                        trust described in clause (i) is established 
                        and votes, by at least 75 percent of those 
                        voting, in favor of the plan; and
                    ``(V) pursuant to court orders or otherwise, the 
                trust will operate through mechanisms such as 
                structured, periodic or supplemental payments, pro rata 
                distributions, matrices, or periodic review of 
                estimates of the numbers and values of present claims 
                and future demands or other comparable alternates, that 
                provide reasonable assurance that the trust will value, 
                and be in a financial position to pay, present claims 
                and future demands that involve similar claims in 
                substantially the same manner.
    ``(3)(A) If the requirements of paragraph (2)(B) are met and the 
order approving the plan of reorganization was issued or affirmed by 
the district court that has jurisdiction over the reorganization 
proceedings, then after the time for appeal of the order that issues or 
affirms the plan of reorganization--
            ``(i) the injunction shall be valid and enforceable and may 
        not be revoked or modified by any court except through appeal 
        in accordance with paragraph (6);
            ``(ii) no entity that pursuant to the plan of 
        reorganization or thereafter becomes a direct or indirect 
        transferee of, or successor to any assets of, a debtor or trust 
        that is the subject of the injunction shall be liable with 
        respect to any claim or demand made against it by reason of its 
        becoming such a transferee or successor; and
            ``(iii) no entity that pursuant to the plan of 
        reorganization or thereafter makes a loan to such a debtor or 
        trust or to such a successor or transferee shall, by reason of 
        making the loan, be liable with respect to any claim or demand 
        made against it, nor shall any pledge of assets made in 
        connection with such a loan be upset or impaired for that 
        reason;
    ``(B) Subparagraph (A) shall not be construed to--
            ``(i) imply that an entity described in subparagraph (A) 
        (ii) or (iii) would, if this paragraph were not applicable, 
        have liability by reason of any of the acts described in 
        subparagraph (A);
            ``(ii) relieve any such entity of the duty to comply with, 
        or of liability under, any Federal or State law regarding the 
        making of a fraudulent conveyance in a transaction described in 
        subparagraph (A) (ii) or (iii); or
            ``(iii) relieve a debtor of the debtor's obligation to 
        comply with the terms of the plan of reorganization or affect 
        the power of the court to exercise its authority under sections 
        1141 and 1142 to compel the debtor to do so.
    ``(4)(A)(i) Subject to subparagraph (B), an injunction under 
paragraph (1) shall be valid and enforceable against all persons and 
governmental units that it addresses.
    ``(ii) Notwithstanding section 524(e), such an injunction may bar 
any action directed against a third party who--
            ``(I) is identifiable from the terms of the injunction (by 
        name or as part of an identifiable group); and
            ``(II) is alleged to be directly or indirectly liable for 
        the conduct of, claims against, or demands on the debtor.
    ``(B) With respect to a demand (including a demand directed against 
a third party who is identifiable from the terms of the injunction 
(either by name or as part of an identifiable group) and who is alleged 
to be directly or indirectly liable for the conduct of, claims against, 
or demands on the debtor) that is made subsequent to the confirmation 
of a plan against any person or entity that is the subject of an 
injunction issued under paragraph (1), the injunction shall be valid 
and enforceable if, as part of the proceedings leading to its issuance, 
the court appointed a legal representative for the purpose of 
protecting the rights of persons that might subsequently assert such a 
demand.
    ``(5) In this subsection, the term `demand' means a demand for 
payment, present or future, that--
            ``(A) was not a claim during the proceedings leading to the 
        confirmation of a plan of reorganization;
            ``(B) arises out of the same or similar conduct or events 
        that gave rise to the claims addressed by the injunction issued 
        under paragraph (1); and
            ``(C) pursuant to the plan, is to be paid by a trust 
        described in paragraph (2)(B)(i).
    ``(6) Paragraph (3)(A)(i) does not bar an action taken by or at the 
direction of an appellate court on appeal of an injunction issued under 
paragraph (1) or of the order of confirmation that relates to the 
injunction.
    ``(7) This subsection applies to any injunction of the nature 
described in paragraph (1)(B) in effect, and any trust of the nature 
described in paragraph (2)(B) in existence, on or after the date of 
enactment of this subsection.
    ``(8) This subsection does not affect the operation of section 1144 
or the power of the district court to refer a proceeding under section 
157 of title 28 or any reference of a proceeding made prior to the date 
of enactment of this subsection.
    ``(9) Nothing in subsection (g) shall affect the court's authority 
to issue an injunction (including an injunction that requires claims 
and demands to be presented for payment solely to a trust or any other 
type of court approved settlement vehicle) which is entered pursuant to 
an order approving a plan of reorganization.
    ``(10)(A) If, upon a motion by a representative appointed by the 
court identified in paragraph (1)(A) to protect the interests of 
persons with demands of the kind described in paragraph (2)(B)(ii)(I) 
or on its own motion, the court finds, as a result of enhanced credible 
estimating procedures with respect to such demands, inequities in the 
distribution process of a trust of the nature described in paragraph 
(2)(B), the court shall have, in addition to the powers over the trust 
that the court may lawfully exercise under applicable nonbankruptcy 
law, plenary equitable power to reform, restructure, or modify the 
trust, the procedures under which it operates, or the timing, manner, 
and amount of distributions to its beneficiaries and other rights of 
the beneficiaries, giving special attention to cases presenting exigent 
circumstances, as it shall determine to be fair, just, and reasonable 
in light of the circumstances prevailing at the time of reformation, 
restructure or modification.
    ``(B) Nothing in this paragraph shall be construed to grant the 
court authority to modify or in any way alter the debtor's obligation 
to comply with the terms of the plan of reorganization.''.

SEC. 222. REJECTION OF UNEXPIRED LEASES OF REAL PROPERTY OR TIMESHARE 
              INTERESTS.

    (a) Amendment of Section 365.--Section 365(h) of title 11, United 
States Code, is amended to read as follows:
    ``(h)(1)(A) If the trustee rejects an unexpired lease of real 
property under which the debtor is the lessor--
            ``(i) if the rejection by the trustee amounts to such a 
        breach as would entitle the lessee to treat the lease as 
        terminated by virtue of its own terms, applicable nonbankruptcy 
        law, or any other lease or agreement that the lessee has made 
        with another party, the lessee under the lease may treat the 
        lease as terminated by the rejection; or
            ``(ii) if the term of the lease has commenced, the lessee 
        may retain its rights under the lease that are in or 
        appurtenant to the leasehold estate (including lease provisions 
        such as those relating to the amount and timing of payment of 
        rent and other amounts payable by the lessee or to any right of 
        use, possession, quiet enjoyment, subletting, assignment, or 
        hypothecation) for the balance of the term of the lease and for 
        any renewal or extension of such term as is enforceable under 
        applicable nonbankruptcy law.
    ``(B) If the lessee retains its rights under subparagraph (A)(ii), 
the lessee may set off against the rent reserved under the lease for 
the balance of the term after the date of the rejection of the lease, 
and any renewal or extension of the lease, any damages occurring after 
the date of rejection caused by the nonperformance of any obligation of 
the debtor under the lease after that date, but the lessee does not 
have any rights against the estate on account of any damages arising 
after that date from the rejection, other than the setoff.
    ``(C) The rejection of a lease of real property in a shopping 
center with respect to which the lessee elects to retain its rights 
under subparagraph (A)(ii) does not affect the enforceability under 
applicable nonbankruptcy law of any provision in the lease pertaining 
to radius, location, use, exclusivity, or tenant mix or balance.
    ``(D) In this paragraph, `lessee' includes any successor, assign, 
or mortgagee permitted by the lease.
    ``(2)(A) If the trustee rejects a timeshare interest under a 
timeshare plan under which the debtor is the timeshare interest 
seller--
            ``(i) the timeshare interest purchaser under the timeshare 
        plan may treat the timeshare plan as terminated by the 
        rejection if the rejection amounts to such a breach as would 
        entitle the timeshare interest purchaser to treat the timeshare 
        plan as terminated by virtue of its own terms, applicable 
        nonbankruptcy law, or any other agreement that the timeshare 
        interest purchaser has made with another party; or
            ``(ii) the timeshare interest purchaser may retain its 
        rights in the timeshare interest under any timeshare plan the 
        term of which has commenced for the balance of such term and 
        for any renewal or extension of such term as is enforceable 
        under applicable nonbankruptcy law.
    ``(B) If the timeshare interest purchaser retains its rights under 
subparagraph (A), the timeshare interest purchaser may set off against 
the moneys due for the timeshare interest for the balance of the term 
after the date of the rejection of the timeshare interest, and any 
renewal or extension thereof, any damages occurring after the date of 
rejection caused by the nonperformance of any obligation of the debtor 
under the timeshare plan after that date, but the timeshare interest 
purchaser does not have any rights against the estate on account of any 
damages arising after that date from the rejection, other than the 
setoff.''.
    (b) Technical Amendment.--Section 553(b)(1) of title 11, United 
States Code, is amended by striking ``365(h)(2)'' and inserting 
``365(h)''.

SEC. 223. CONTENTS OF PLAN.

    Section 1123(b) of title 11, United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by redesignating paragraph (5) as paragraph (6); and
            (3) by inserting after paragraph (4) the following new 
        paragraph:
            ``(5) in a case in which the debtor is a small business, 
        modify the rights of holders of secured claims, other than a 
        claim secured only by a security interest in real property that 
        is the debtor's principal residence, or of holders of unsecured 
        claims, or leave unaffected the rights of holders of any class 
        of claims, 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. 224. PRIORITY FOR INDEPENDENT SALES REPRESENTATIVES.

    Section 507(a)(3) of title 11, United States Code, is amended to 
read as follows:
            ``(3) Third, allowed unsecured claims, but only to the 
        extent of $2,000 for each individual or corporation, as the 
        case may be, earned within 90 days before the date of the 
        filing of the petition or the date of the cessation of the 
        debtor's business, whichever occurs first, for--
                    ``(A) wages, salaries, or commissions, including 
                vacation, severance, and sick leave pay earned by an 
                individual; or
                    ``(B) sales commissions earned by an individual or 
                by a corporation with only 1 employee, acting as an 
                independent contractor in the sale of goods or services 
                for the debtor in the ordinary course of the debtor's 
                business if, and only if, during the 12 months 
                preceding that date, at least 75 percent of the amount 
                that the individual or corporation earned by acting as 
                an independent contractor in the sale of goods or 
                services was earned from the debtor;''.

SEC. 225. AMEND BANKRUPTCY CODE.

    (a) Amend section 541(b)(4), of title 11, United States Code to 
read as follows:
            ``(4) any interest of the debtor in liquid or gaseous 
        hydrocarbons to the extent--
                    ``(A)(i) the debtor has transferred or has agreed 
                to transfer such interest pursuant to a farmout 
                agreement or any written agreement directly related to 
                a farmout agreement; and
                    ``(ii) but for the operation of this paragraph, the 
                estate could include such interest only by virtue of 
                section 365 or 544(a) of this title; or
                    ``(B) the debtor has transferred such interest 
                pursuant to a conveyance of a production payment or an 
                oil and gas lease.
        Paragraph (4) shall not be construed to exclude from the estate 
        any consideration the debtor retains, receives, or is entitled 
        to receive for transferring an interest in liquid or gaseous 
        hydrocarbons pursuant to a farmout agreement, production 
        payment, or oil and gas lease.''.
    (b) Amend section 101, of title 11, United States Code by adding 
after paragraph (42) the following:
            ``(43) `production payment' is not a gross royalty. A 
        production payment is a term overriding royalty which is an 
        interest in liquid or gaseous hydrocarbons in place or to be 
        produced from a property or properties, that entitles the owner 
        thereof to a share of production, or the value thereof, for a 
        term limited by time, quantity, or value realized, or any 
        formula based on one or more of such factors.''.

                 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 prior to consummation 
of a foreclosure sale, 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.

    (a) In General.--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''.
    (b) Technical Amendment.--Section 3613(f) of title 18, United 
States Code, is amended by striking ``No'' and inserting ``Except as 
provided in section 1328(a)(3) of title 11, no''.

SEC. 303. IMPAIRMENT OF EXEMPTIONS.

    (a) In General.--Section 522(f) of title 11, United States Code, is 
amended--
            (1) by inserting ``(1)'' before ``Notwithstanding'';
            (2) by redesignating paragraph (1) as subparagraph (A);
            (3) by redesignating paragraph (2) as subparagraph (B) and 
        subparagraphs (A), (B), and (C) of that paragraph as clauses 
        (i), (ii), and (iii); and
            (4) by adding at the end the following new paragraph:
            ``(2)(A) For the purposes of this subsection, a lien shall 
        be considered to impair an exemption to the extent that the sum 
        of--
                    ``(i) the lien;
                    ``(ii) all other liens on the property that are 
                equal or greater in seniority to the lien; and
                    ``(iii) the amount of the exemption that the debtor 
                could claim if there were no liens on the property,
        exceeds the value that the debtor's interest in the property 
        would have in the absence of any liens.
            ``(B) In the case of a property subject to more than 1 
        lien, a lien that has been avoided shall not be considered in 
        making the calculation under subparagraph (A) with respect to 
        other liens.''.
    (b) Rule of Construction; Application of Amendment.--Section 
522(f)(2) of title 11, United States Code, as added by subsection (a)--
            (1) shall not be construed to apply with respect to a 
        judgment arising out of a mortgage foreclosure; and
            (2) shall not apply with respect to a nonpossessory, 
        nonpurchase-money security interest given before the date of 
        enactment of this Act (including a security interest with 
        respect to which the value of the collateral increases after a 
        case under that title is commenced).

SEC. 304. 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 (7) by striking ``(7) Seventh'' 
                and inserting ``(8) Eighth'';
                    (B) in paragraph (8) by striking ``(8) Eighth'' and 
                inserting ``(9) Ninth''; and
                    (C) by inserting after paragraph (6) the following 
                new paragraph:
            ``(7) Seventh, allowed claims for debts to a spouse, former 
        spouse, or child of the debtor, for alimony to, maintenance 
        for, or support of such spouse or child, in connection with a 
        separation agreement, divorce decree or other order of a court 
        of record, determination made in accordance with State or 
        territorial law by a governmental unit, or property settlement 
        agreement, but not to the extent that such debt--
                    ``(A) is assigned to another entity, voluntarily, 
                by operation of law, or otherwise; or
                    ``(B) includes a liability designated as alimony, 
                maintenance, or support, unless such liability is 
                actually in the nature of alimony, maintenance or 
                support.''.
            (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)'';
                    (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) of title 11, United States 
Code, as amended by section 303, is amended by amending paragraph 
(1)(A) to read as follows:
            ``(A) 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--
                    ``(i) is not assigned to another entity, 
                voluntarily, by operation of law, or otherwise; and
                    ``(ii) includes a liability designated as alimony, 
                maintenance, or support, unless such liability is 
                actually in the nature of alimony, maintenance or 
                support); or''.
    (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. 305. 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) No Authorization To Execute Documents.--(1) A bankruptcy 
petition preparer shall not execute any document on behalf of a debtor.
    ``(2) A bankruptcy petition preparer may be fined not more than 
$500 for each document executed in violation of paragraph (1).
    ``(f) Advertising.--(1) A bankruptcy petition preparer shall not 
use the word ``legal'' or any similar term in any advertisements, or 
advertise under any category that includes the word ``legal'' or any 
similar term.
    ``(2) A bankruptcy petition preparer shall be fined not more than 
$500 for each violation of paragraph (1).
    ``(g) Court Fees.--(1) A bankruptcy petition preparer shall not 
collect or receive any payment from the debtor or on behalf of the 
debtor for the court fees in connection with filing the petition.
    ``(2) A bankruptcy petition preparer shall be fined not more than 
$500 for each violation of paragraph (1).
    ``(h) Fees for Services.--(1) Within 10 days after the date of the 
filing of a petition, a bankruptcy petition preparer shall file a 
declaration under penalty of perjury disclosing any fee received from 
or on behalf of the debtor within 12 months immediately prior to the 
filing of the case, and any unpaid fee charged to the debtor.
    ``(2) The court shall disallow and order the immediate turnover to 
the bankruptcy trustee of any fee referred to in paragraph (1) found to 
be in excess of the value of typing services for the documents 
prepared. The debtor may exempt any funds so recovered under section 
522(b).
    ``(3) The debtor, the trustee, a creditor, or the United States 
trustee may file a motion for an order under paragraph (2).
    ``(4) A bankruptcy petition preparer shall be fined not more than 
$500 for each failure to comply with a court order to turn over funds 
within 30 days of service of such order.
    ``(i) Damages.--(1) If a bankruptcy case or related proceeding is 
dismissed because of the failure to file bankruptcy forms, 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, the 
trustee, or a creditor and after a hearing, shall order the bankruptcy 
petition preparer to pay to the debtor--
            ``(A) the debtor's actual damages;
            ``(B) the greater of--
                    ``(i) $2,000; or
                    ``(ii) twice the amount paid by the debtor to the 
                bankruptcy petition preparer for the preparer's 
                services; and
            ``(C) reasonable attorneys' fees and costs in moving for 
        damages under this subsection.
    ``(2) If the trustee or creditor moves for damages on behalf of the 
debtor under this subsection, the bankruptcy petition preparer shall be 
ordered to pay the movant the additional amount of $1,000 plus 
reasonable attorneys' fees and costs incurred.
    ``(j) Injunctive Relief.--
            ``(1) In general.--A debtor for whom a bankruptcy petition 
        preparer has prepared a document for filing, the trustee, a 
        creditor, or the United States trustee in the district in which 
        the bankruptcy petition preparer resides, has conducted 
        business, or the United States trustee in any other district in 
        which the debtor resides may bring a civil action to enjoin a 
        bankruptcy petition preparer from engaging in any conduct in 
        violation of this section or from further acting as a 
        bankruptcy petition preparer.
            ``(2) 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, 
        trustee, or creditor that brings a successful action under this 
        subsection reasonable attorney's fees and costs of the action, 
        to be paid by the bankruptcy petition preparer.
    ``(k) 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 $5,000 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. 306. 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. 307. 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. 308. 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. 309. 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; and

SEC. 310. PROFESSIONAL FEES.

    Section 330(a) of title 11, United States Code, is amended to read 
as follows:
    ``(a)(1) After notice to the parties in interest and the United 
States trustee and a hearing, and subject to sections 326, 328, and 
329, the court may award to a trustee, an examiner, a professional 
person employed under section 327 or 1103--
            ``(A) reasonable compensation for actual, necessary 
        services rendered by the trustee, examiner, professional 
        person, or attorney and by any paraprofessional person employed 
        by any such person; and
            ``(B) reimbursement for actual, necessary expenses.
    ``(2) The court may, on its own motion or on the motion of the 
United States Trustee, the United States Trustee for the District or 
Region, the trustee for the estate, or any other party in interest, 
award compensation that is less than the amount of compensation that is 
requested.
    ``(3)(A) In determining the amount of reasonable compensation to be 
awarded, the court shall consider the nature, the extent, and the value 
of such services, taking into account all relevant factors, including--
            ``(A) the time spent on such services;
            ``(B) the rates charged for such services;
            ``(C) whether the services were necessary to the 
        administration of, or beneficial at the time at which the 
        service was rendered toward the completion of, a case under 
        this title;
            ``(D) the total value of the estate and the amount of funds 
        or other property available for distribution to all creditors, 
        both secured and unsecured;
            ``(E) whether the services were performed within a 
        reasonable amount of time commensurate with the complexity, 
        importance, and nature of the problem, issue, or task 
        addressed; and
            ``(F) whether the compensation is reasonable based on the 
        customary compensation charged by comparably skilled 
        practitioners in cases other than cases under this title.
    ``(4)(A) Except as provided in subparagraph (B), the court shall 
not allow compensation for--
            ``(i) unnecessary duplication of services; or
            ``(ii) services that were not--
                    ``(I) reasonably likely to benefit the debtor's 
                estate; or
                    ``(II) necessary to the administration of the case.
    ``(B) In a chapter 12 or chapter 13 case in which the debtor is an 
individual, the court may allow reasonable compensation to the debtor's 
attorney for representing the interests of the debtor in connection 
with the bankruptcy case based on a consideration of the benefit and 
necessity of such services to the debtor and the other factors set 
forth in this section.
    ``(5) The court shall reduce the amount of compensation awarded 
under this section by the amount of any interim compensation awarded 
under section 331, and, if the amount of such interim compensation 
exceeds the amount of compensation awarded under this section, may 
order the return of the excess to the estate.
    ``(6) Any compensation awarded for the preparation of a fee 
application shall be based on the level and skill reasonably required 
to prepare the application.''.

SEC. 311. INTEREST ON INTEREST.

    (a) Chapter 11.--Section 1123 of title 11, United States Code, is 
amended by adding at the end the following new subsection:
    ``(d) Notwithstanding subsection (a) of this section and sections 
506(b), 1129(a)(7), and 1129(b) of this title, if it is proposed in a 
plan to cure a default, the amount necessary to cure the default, shall 
be determined in accordance with the underlying agreement and 
applicable nonbankruptcy law.''.
    (b) Chapter 12.--Section 1222 of title 11, United States Code, is 
amended by adding at the end the following new subsection:
    ``(d) Notwithstanding subsection (b)(2) of this section and 
sections 506(b) and 1225(a)(5) of this title, if it is proposed in a 
plan to cure a default, the amount necessary to cure the default, shall 
be determined in accordance with the underlying agreement and 
applicable nonbankruptcy law.''.
    (c) Chapter 13.--Section 1322 of title 11, United States Code, is 
amended by adding at the end the following new subsection:
    ``(f) Notwithstanding subsection (b)(2) of this section and 
sections 506(b) and 1325(a)(5) of this title, if it is proposed in a 
plan to cure a default, the amount necessary to cure the default, shall 
be determined in accordance with the underlying agreement and 
applicable nonbankruptcy law.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to agreements described in sections 1123(d), 1222(d), and 1322(f) 
of title 11, United States Code, as added by this section, that are 
entered into after the date of enactment of this Act.

SEC. 312. FAIRNESS TO CONDOMINIUM AND COOPERATIVE OWNERS.

    Section 523(a) of title 11, United States Code, as amended by 
section 210, is amended--
            (1) by striking ``or'' at the end of paragraph (13);
            (2) by adding ``or'' at the end of paragraph (14); and
            (3) by adding at the end the following new paragraph:
            ``(15) for a fee that becomes due and payable after the 
        order for relief to a membership association with respect to 
        the debtor's interest in a dwelling unit that has condominium 
        ownership or in a share of a cooperative housing corporation, 
        if such fee is payable for a period during a substantial 
        portion of which--
                    ``(A) the debtor physically occupied a dwelling 
                unit in the condominium or cooperative project; or
                    ``(B) the debtor rented the dwelling unit to a 
                tenant and received payments from the tenant for such 
                period,
        but nothing in this paragraph shall except from discharge the 
        debt of a debtor for a membership association fee for a period 
        arising before entry of the order for relief in a pending or 
        subsequent bankruptcy proceeding.''.

SEC. 313. NONAVOIDABILITY OF FIXING OF LIEN ON TOOLS AND IMPLEMENTS OF 
              TRADE, ANIMALS, AND CROPS.

    (a) Amendment.--Section 522(f) of title 11, United States Code, as 
amended by section 303(c), is amended--
            (1) by striking ``Notwithstanding any waiver of 
        exemptions,'' and inserting ``(1) Notwithstanding any waiver of 
        exemptions but subject to paragraph (2)'';
            (2) by striking ``(1) a judicial'' and inserting ``(A) a 
        judicial'';
            (3) by striking ``(A) is not assigned'' and inserting ``(i) 
        is not assigned'';
            (4) by striking ``(B) includes a liability'' and inserting 
        ``(ii) includes a liability'';
            (5) by striking ``(2) a nonpossessory'' and inserting ``(B) 
        a nonpossessory'';
            (6) by striking ``(A) household'' and inserting ``(i) 
        household'';
            (7) by striking ``(B) implements, professional books, or 
        tools,'' and inserting ``(ii) implements, professional books, 
        or tools''
            (8) by striking ``(C) professionally'' and inserting 
        ``(iii) professionally''; and
            (9) by adding at the end the following new paragraph:
    ``(2) In a case in which State law that is applicable to the 
debtor--
            ``(A) permits a person to voluntarily waive a right to 
        claim exemptions under subsection (d) or prohibits a debtor 
        from claiming exemptions under subsection (d); and
            ``(B) permits the debtor to claim exemptions under State 
        law without limitation in amount, except to the extent that the 
        debtor has permitted the fixing of a consensual lien on any 
        property,
the debtor may not avoid the fixing of a lien on an interest of the 
debtor or a dependent of the debtor in property if the lien is a 
nonpossessory, nonpurchase-money security interest in implements, 
professional books, or tools of the trade of the debtor or a dependent 
of the debtor or farm animals or crops of the debtor or a dependent of 
the debtor.''.
    (b) Application of Amendment.--The amendments made by subsection 
(a) shall not apply with respect to a case commenced under title 11, 
United States Code, before the date of enactment of this Act.

SEC. 314. NONDISCHARGEABILITY OF DEBT FOR MONEY, PROPERTY, SERVICES, OR 
              CREDIT OBTAINED BY FALSE PRETENSE, FALSE REPRESENTATION, 
              OR FRAUD.

    Section 1328(a)(2) of title 11, United States Code, is amended by 
inserting ``(2)(A),'' after ``paragraph''.

SEC. 315. CONVERSION OF CASE UNDER CHAPTER 13.

    Section 348 of title 11, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f) When a case under chapter 13 is converted to another 
chapter--
            ``(1) property of the estate in the converted case shall 
        consist of property of the estate, as of the date of filing of 
        the petition, that remains in the possession of or is under the 
        control of the debtor on the date of conversion; and
            ``(2) valuations of property and of allowed secured claims 
        in the chapter 13 case shall apply in the converted case, with 
        allowed secured claims reduced to the extent that they have 
        been paid in accordance with the chapter 13 plan.''.

SEC. 316. RENT-TO-OWN CONTRACTS.

    (a) Definition.--Section 101 of title 11, United States Code, is 
amended by inserting in their proper alphabetical positions the 
following new definitions:
            `` `consumer good' means an item of personal property (not 
        including a motor vehicle) acquired by an individual primarily 
        for a personal, family, or household purpose.''.
            `` `rent-to-own contract' means an agreement, in the form 
        of a terminable lease or bailment of a consumer good, between a 
        person regularly engaged in the business of making consumer 
        goods available to individuals and an individual, under which--
                    ``(A) the lessee or bailee--
                            ``(i) has the right of possession and use 
                        of the consumer good; and
                            ``(ii) has the option to renew the 
                        agreement periodically by making payments 
                        specified in the agreement; and
                    ``(B) the lessor or bailor agrees, orally or in 
                writing, to transfer ownership of the consumer good to 
                the lessee or bailee upon the fulfillment of all 
                obligations of the lessee or bailee for the transfer 
                under the agreement.''.
    (b) Treatment of Rent-To-Own Contracts as Secured Purchase 
Contracts.--
            (1) Chapter 7.--Subchapter II of chapter 7 of title 11, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec.  729. Rent-to-own contracts
    ``In a proceeding under this chapter in which the debtor is in 
possession of a consumer good under a rent-to-own contract, the debtor 
and the lessor or bailor shall be accorded the same rights and 
obligations with respect to the consumer good, respectively, as they 
would be accorded if the rent-to-own contract had been a purchase 
contract.''.
            (2) Chapter 13.--Subchapter I of chapter 13 of title 11, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec.  1308. Rent-to-own contracts
    ``In a proceeding under this chapter in which the debtor is in 
possession of a consumer good under a rent-to-own contract, the debtor 
and the lessor or bailor shall be accorded the same rights and 
obligations with respect to the consumer good, respectively, as they 
would be accorded if the rent-to-own contract had been a purchase 
contract.''.
    (c) Technical Amendments.--
            (1) Chapter 7.--The chapter analysis for chapter 7 of title 
        11, United states Code, is amended by inserting after the item 
        for section 728 the following new item:

``729. Rent-To-Own Contracts.''.
            (2) Chapter 13.--The chapter analysis for chapter 13 of 
        title 11, United states Code, is amended by inserting after the 
        item for section 1307 the following new item:

``1308. Rent-To-Own Contracts.''.

                 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--BANKRUPTCY FRAUD

SEC. 501. BANKRUPTCY FRAUD.

    (a) In General.--
            (1) Offenses.--Chapter 9 of title 18, United States Code, 
        is amended--
                    (A) by amending sections 152, 153, and 154 to read 
                as follows:
``Sec. 152. Concealment of assets; false oaths and claims; bribery
    ``A person who--
            ``(1) knowingly and fraudulently conceals from a custodian, 
        trustee, marshal, or other officer of the court charged with 
        the control or custody of property, or, in connection with a 
        case under title 11, from creditors or the United States 
        Trustee, any property belonging to the estate of a debtor;
            ``(2) knowingly and fraudulently makes a false oath or 
        account in or in relation to any case under title 11;
            ``(3) knowingly and fraudulently makes a false declaration, 
        certificate, verification, or statement under penalty of 
        perjury as permitted under section 1746 of title 28, in or in 
        relation to any case under title 11;
            ``(4) knowingly and fraudulently presents any false claim 
        for proof against the estate of a debtor, or uses any such 
        claim in any case under title 11, in a personal capacity or as 
        or through an agent, proxy, or attorney;
            ``(5) knowingly and fraudulently receives any material 
        amount of property from a debtor after the filing of a case 
        under title 11, with intent to defeat the provisions of title 
        11;
            ``(6) knowingly and fraudulently gives, offers, receives, 
        or attempts to obtain any money or property, remuneration, 
        compensation, reward, advantage, or promise thereof for acting 
        or forbearing to act in any case under title 11;
            ``(7) in a personal capacity or as an agent or officer of 
        any person or corporation, in contemplation of a case under 
        title 11 by or against the person or any other person or 
        corporation, or with intent to defeat the provisions of title 
        11, knowingly and fraudulently transfers or conceals any of his 
        property or the property of such other person or corporation;
            ``(8) after the filing of a case under title 11 or in 
        contemplation thereof, knowingly and fraudulently conceals, 
        destroys, mutilates, falsifies, or makes a false entry in any 
        recorded information (including books, documents, records, and 
        papers) relating to the property or financial affairs of a 
        debtor; or
            ``(9) after the filing of a case under title 11, knowingly 
        and fraudulently withholds from a custodian, trustee, marshal, 
        or other officer of the court or a United States Trustee 
        entitled to its possession, any recorded information (including 
        books, documents, records, and papers) relating to the property 
        or financial affairs of a debtor,
shall be fined not more than $5,000, imprisoned not more than 5 years, 
or both.
``Sec. 153. Embezzlement against estate
    ``(a) Offense.--A person described in subsection (b) who knowingly 
and fraudulently appropriates to the person's own use, embezzles, 
spends, or transfers any property or secretes or destroys any document 
belonging to the estate of a debtor shall be fined not more than 
$5,000, imprisoned not more than 5 years, or both.
    ``(b) Person to Whom Section Applies.--A person described in this 
subsection is one who has access to property or documents belonging to 
an estate by virtue of the person's participation in the administration 
of the estate as a trustee, custodian, marshal, attorney, or other 
officer of the court or as an agent, employee, or other person engaged 
by such an officer to perform a service with respect to the estate.
``Sec. 154. Adverse interest and conduct of officers
    ``A person who, being a custodian, trustee, marshal, or other 
officer of the court--
            ``(1) knowingly purchases, directly or indirectly, any 
        property of the estate of which the person is such an officer 
        in a case under title 11;
            ``(2) knowingly refuses to permit a reasonable opportunity 
        for the inspection by parties in interest of the documents and 
        accounts relating to the affairs of estates in the person's 
        charge by parties when directed by the court to do so; or
            ``(3) knowingly refuses to permit a reasonable opportunity 
        for the inspection by the United States Trustee of the 
        documents and accounts relating to the affairs of an estate in 
        the person's charge,
shall be fined not more than $5,000 and shall forfeit the person's 
office, which shall thereupon become vacant.''; and
                    (B) by adding at the end the following new 
                sections:
``Sec. 156. Knowing disregard of bankruptcy law or rule
    ``(a) Definitions.--In this section--
            ```bankruptcy petition preparer' means a person, other than 
        the debtor's attorney or an employee of such an attorney, who 
        prepares for compensation a document for filing.
            ```document for filing' means a petition or any other 
        document prepared for filing by a debtor in a United States 
        bankruptcy court or a United States district court in 
        connection with a case under this title.
    ``(b) Offense.--If a bankruptcy case or related proceeding is 
dismissed because of a knowing attempt by a bankruptcy petition 
preparer in any manner to disregard the requirements of title 11, 
United States Code, or the Bankruptcy Rules, the bankruptcy petition 
preparer shall be fined under this title, imprisoned not more than 1 
year, or both.
``Sec. 157. Bankruptcy fraud
    ``(a) Offense.--A person who, having devised or intending to devise 
a scheme or artifice to defraud, or for obtaining money or property by 
means of a false or fraudulent pretense, representation, or promise, 
for the purpose of executing or concealing such a scheme or artifice or 
attempting to do so--
            ``(1) files a petition under title 11;
            ``(2) files a document in a proceeding under title 11; or
            ``(3) makes a false or fraudulent representation, claim, or 
        promise concerning or in relation to a proceeding under title 
        11, at any time before or after the filing of the petition, or 
        in relation to a proceeding falsely asserted to be pending 
        under that title,
shall be fined under this title, imprisoned not more than 5 years, or 
both.
    ``(b) Requirement of Intent.--
            ``(1) In general.--The degree of intent required to be 
        shown in the case of an offense described in subsection (a) is 
        that which is generally required to be shown in cases of fraud.
            ``(2) Violation not established.--A violation of subsection 
        (a) is not established if the defendant committed the act that 
        is alleged to constitute fraud for a lawful purpose.
            ``(3) Violation established.--A violation of subsection (a) 
        may be established if the defendant committed the act that is 
        alleged to constitute fraud with a purpose of--
                    ``(A) preventing the proper application of title 11 
                in a particular case; or
                    ``(B) using a proceeding under title 11 in a manner 
                that, while on its face may appear to be legitimate, is 
                in fact part of a scheme to defraud.''.
            (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. Knowing disregard of bankruptcy law or rule.
``Sec. 157. Bankruptcy fraud.''.
    (b) RICO.--Section 1961(1)(D) of title 18, United States Code, is 
amended by inserting ``(except a case under section 157 of that 
title)'' after ``title 11''.

                    TITLE VI--TECHNICAL CORRECTIONS

SEC. 601. 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);
            (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)(9), as redesignated by 
                section 304(b)(1)(B), 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), 
        403(a), 403(b), 408, or 409 Internal Revenue Code of 1954 (26 
        U.S.C. 401(a), 403(a), 403(b), 408, or 409)'' and inserting 
        ``section 401(a), 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 541(b)--
                    (A) by inserting ``(1)'' after ``(b)'' and 
                redesignating paragraphs (1), (2), (3), and (4) as 
                subparagraphs (A), (B), (C), and (D), respectively;
                    (B) in subparagraph (D) of paragraph (1), as 
                redesignated by subparagraph (A), by redesignating 
                subparagraphs (A) and (B) as clauses (i) and (ii), 
                respectively;
                    (C) in subparagraph (C) of paragraph (1), as 
                redesignated by subparagraph (A), by striking 
                ``institution or'' and inserting ``institution; or''; 
                and
                    (D) in the matter following subparagraph (D) of 
                paragraph (1), as redesignated by subparagraph (A), by 
                striking ``Paragraph (4) shall not'' and inserting the 
                following:
    ``(2) Paragraph (1)(D) shall not''.
            (13) in section 542(e) by striking ``to to'' and inserting 
        ``to'';
            (14) in section 543(d)(1) by striking ``of equity'' and 
        inserting ``if equity'';
            (15) in section 546(a)(1) by striking ``1302, or 1202'' and 
        inserting ``1202, or 1302'';
            (16) in section 549(b) by inserting ``the trustee may not 
        avoid under subsection (a) of this section'' after 
        ``involuntary case,'';
            (17) 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),'';
            (18) in section 706(a) by striking ``1307, or 1208'' and 
        inserting ``1208, or 1307'';
            (19) in section 724(d) by striking ``Internal Revenue Code 
        of 1954 (26 U.S.C. 6323)'' and inserting ``Internal Revenue 
        Code of 1986'';
            (20) in section 726(b) by inserting a comma after ``section 
        1112'';
            (21) in section 743 by striking ``342(a)'' and inserting 
        ``342'';
            (22) 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'';
            (23) in section 1104(c) inserting a comma after 
        ``interest'';
            (24) in section 1123(a)(1) inserting a comma after 
        ``title'' the last place it appears;
            (25) in section 1129(a)--
                    (A) in paragraph (4) by striking the semicolon at 
                the end and inserting a period; and
                    (B) in paragraph (12) by inserting ``of title 28'' 
                after ``section 1930'';
            (26) in section 1145(a) by striking ``does'' and inserting 
        ``do'';
            (27) 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)'';
            (28) in section 1302(b)(3) by striking ``and'' at the end;
            (29) in section 1328(a)(2) by striking ``(5) or (8)'' and 
        inserting ``(5), (8), or (9)''; and
            (30) in the table of chapters by striking the item relating 
        to chapter 15.

SEC. 602. 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 VII--SEVERABILITY; EFFECTIVE DATE; APPLICATION OF AMENDMENTS

SEC. 701. SEVERABILITY.

    If any provision of this Act or amendment made by this Act or the 
application of such provision or amendment to any person or 
circumstance is held to be unconstitutional, the remaining provisions 
of and amendments made by this Act and the application of such other 
provisions and amendments to any person or circumstance shall not be 
affected thereby.

SEC. 702. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as provided in subsection (b), this Act 
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.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

SEC. 801. LIMITATION ON STATE TAXATION OF CERTAIN PENSION INCOME.

    (a) In General.--Chapter 4 of title 4 of the United States Code is 
amended by adding at the end thereof the following new section:
``Sec. 114. Limitation on State income taxation of pension income
    ``(a) No State may impose an income tax (as defined in section 
110(c)) on the qualified pension income of any individual who is not a 
resident or domiciliary of such State.
    ``(b)(1) For purposes of subsection (a), the term `qualified 
pension income' means any payment from a qualified plan--
            ``(A) which is part of a series of substantially equal 
        periodic payments (not less frequently than annually) made 
        for--
                    ``(i) the life or life expectancy of the recipient 
                or for the joint lives or joint life expectancies of 
                the recipient and the recipient's designated 
                beneficiary, or
                    ``(ii) a period of not less than 10 years, or
            ``(B) which is not described in subparagraph (A) and 
        which--
                    ``(i) is received in a taxable year for which an 
                election under this subsection is in effect, and
                    ``(ii) is received on or after the date on which 
                the recipient has attained the age of 59\1/2\,
        except that the aggregate amount of payments to which this 
        subparagraph may apply for any taxable year shall not exceed 
        $25,000.
    ``(2) For purposes of paragraph (1), the term `qualified plan' 
means--
            ``(A) an employees' trust described in section 401(a) of 
        the Internal Revenue Code of 1986 which is exempt from tax 
        under section 501(a) of such Code,
            ``(B) a simplified employee pension described in section 
        408(k) of such Code,
            ``(C) an annuity plan described in section 403(a) of such 
        Code,
            ``(D) an annuity contract described in section 403(b) of 
        such Code,
            ``(E) an individual retirement plan described in section 
        7701(a)(37) of such Code,
            ``(F) an eligible deferred compensation plan under section 
        457 of such Code, or
            ``(G) a governmental plan described in section 414(d) of 
        such Code, other than a plan established and maintained by a 
        State or political subdivision of a State, or an agency or 
        instrumentality of either.
    ``(3) For purposes of paragraph (1), any retired or retainer pay of 
a member or former member of a uniform service computed under chapter 
71 of title 10, United States Code, shall be treated as a payment from 
a qualified plan.
    ``(4)(A) An election under paragraph (1)(B), once made for a 
taxable year, may not be made for any other taxable year.
    ``(B) In calendar years beginning after 1994, the $25,000 amount 
referred to in paragraph (1)(B) shall be increased by an amount equal 
to such dollar amount, multiplied by the cost-of-living adjustment 
determined under section 1(f)(3) of such Code for such calendar year by 
substituting `calendar year 1993' for `calendar year 1992' in 
subparagraph (B) thereof.
    ``(c) For purposes of subsection (a), the term `State' includes any 
political subdivision of a State, the District of Columbia, and the 
possessions of the United States.''
    (b) Clerical Amendment.--The table of sections for such chapter 4 
is amended by adding at the end thereof the following new item:

``114. Limitation on State income taxation of pension income.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 802. PROTECTION AGAINST DISCRIMINATORY TREATMENT OF APPLICATIONS 
              FOR STUDENT LOANS.

    Section 525 of title 11, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c)(1) A governmental unit that operates a student grant or loan 
program and a person engaged in a business that includes the making of 
loans guaranteed or insured under a student loan program may not deny a 
grant, loan, loan guarantee, or loan insurance to a person that is or 
has been a debtor under this title or a bankrupt or debtor under the 
Bankruptcy Act, or another person with whom the debtor or bankrupt has 
been associated, because the debtor or bankrupt is or has been a debtor 
under this title or a bankrupt or debtor under the Bankruptcy Act, has 
been insolvent before the commencement of a case under this title or 
during the pendency of the case but before the debtor is granted or 
denied a discharge, or has not paid a debt that is dischargeable in the 
case under this title or that was discharged under the Bankruptcy Act.
    ``(2) In this section, `student loan program' means the program 
operated under part B, D, or E of title IV of the Higher Education Act 
of 1965 (20 U.S.C. 1070 et seq.) or a similar program operated under 
State or local law.''.

SEC. 803. CHICAGO HOUSING AUTHORITY.

    (a) Findings.--The Senate finds that--
            (1) It is the fundamental obligation of government to 
        protect its citizens;
            (2) In many federally-financed public housing projects, the 
        level of violence has reached epidemic proportions, threatening 
        on a daily basis the lives of the majority of the tenants, who 
        are law-abiding;
            (3) In an effort to combat gang and drug-related violence, 
        the Chicago Housing Authority (``CHA'') instituted a policy of 
        conducting warrantless, apartment-to-apartment searches of CHA 
        projects, including the Robert Taylor Homes;
            (4) On April 7, 1994, Federal district court judge Warren 
        Andersen ruled that CHA's search policy violated the Fourth 
        Amendment to the Constitution of the United States and enjoined 
        CHA officials from undertaking these searches;
            (5) After the court decision, President Clinton directed 
        Attorney General Janet Reno and Secretary of Housing and Urban 
        Development Henry Cisneros to develop law enforcement measures 
        that would be both constitutionally valid and effective in 
        reducing violent crime in public housing projects; and
            (6) President Clinton subsequently announced new Federal 
        guidelines designed to assist public housing officials in 
        maintaining order and protecting the security of their law-
        abiding tenants.
    (b) Therefore, it is the sense of the Senate that the Senate fully 
endorses the new Administration guidelines, outlined in a letter to 
President Clinton from Attorney General Reno and Secretary of Housing 
and Urban Development Cisneros, dated April 14, 1994, including the 
guidelines allowing public housing officials to (1) erect fences around 
public housing buildings, issue identification cards to tenants, and 
install metal detectors or magnetometers at the building entrances; (2) 
search the packages and clothing of anyone seeking to enter public 
housing buildings and refuse entry to anyone who does not submit to 
inspection; (3) conduct weapons searches without consent or a warrant 
in common areas of the buildings, such as stairwells, and in vacant 
apartments; (4) frisk ``suspicious-looking'' individuals for weapons, 
if police or security personnel have a reason to believe that the 
individuals are involved in criminal activity and are armed; (5) 
include noncoercive consent clauses in lease agreements permitting 
routine warrantless apartment-by-apartment police searches for illegal 
weapons and illegal drugs, so long as residency or continued residency 
in public housing is not contingent upon the inclusion of such consent 
clause as a provision of a lease agreement; and (6) conduct warrantless 
searches of individual units where there is justification for a search 
but insufficient time to obtain a judicial warrant.

            Passed the Senate April 21 (legislative day, April 11), 
      1994.

            Attest:

                                                MARTHA S. POPE,

                                                             Secretary.

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