[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4296 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4296

 To amend title 11 of the United States Code with respect to avoidable 
   preferences; and to amend title 28 of the United States Code with 
respect to venue for proceedings to avoid preferences under section 547 
                 of title 11 of the United States Code.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 10, 2005

  Mr. Sodrel (for himself, Mr. Westmoreland, Mr. Tiahrt, Mr. Cole of 
Oklahoma, Mr. Franks of Arizona, Mr. Pence, Mr. Rohrabacher, Mr. Wilson 
   of South Carolina, Mr. Shadegg, Mr. Culberson, Mr. Jones of North 
  Carolina, Mr. Coble, Mr. Kuhl of New York, Mr. McCaul of Texas, Mr. 
  Boustany, Mr. Marchant, Ms. Foxx, Mr. Gohmert, and Mr. Hostettler) 
 introduced the following bill; which was referred to the Committee on 
                             the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To amend title 11 of the United States Code with respect to avoidable 
   preferences; and to amend title 28 of the United States Code with 
respect to venue for proceedings to avoid preferences under section 547 
                 of title 11 of the United States Code.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as ``Innocent Supplier Fairness Act''.

SEC. 2. AMENDMENTS.

    (a) Amendment to Title 11 of the United States Code.--Section 547 
of title 11, United States Code, is amended by adding at the end the 
following:
    ``(j) For the purposes of this section, the creditor or party in 
interest against whom recovery or avoidance is sought is presumed to 
have carried the burden of proving the nonavoidability of a transfer 
under subsection (c) unless the trustee proves that such creditor or 
such party is an insider or that the debtor has a special relationship 
with such creditor or such party that consists of--
            ``(1) common ownership of the debtor and such creditor or 
        such party;
            ``(2) common management of the debtor and such creditor or 
        such party consisting of overlapping senior management or 
        directors;
            ``(3) explicit notice from the debtor to such creditor or 
        such party that the filing of a petition is contemplated or 
        imminent before the date of the transfer; or
            ``(4) the use by such creditor or such party of judicial 
        process, in the 90-day period ending on the date of the filing 
        of a petition, against the debtor to collect a debt with 
        respect to which a transfer described in subsection (b) may 
        have been made.''.
    (b) Amendment to Title 28 of the United States Code.--Section 
1409(b) of title 28, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)'', and
            (2) by adding at the end the following:
    ``(2) Except as provided in subsection (d) of this section, a 
trustee in a case under title 11 may commence a proceeding under 
section 547 of such title only in the district court for the district 
in which the defendant resides.''.

SEC. 3. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    The amendments made by this Act shall take effect on the date of 
the enactment of this Act and shall apply only with respect to cases 
commenced under title 11 of the United States Code after such date.
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