[Congressional Record Volume 140, Number 43 (Tuesday, April 19, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 19, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                       BANKRUPTCY AMENDMENTS ACT

  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       A bill (S. 540) to improve the administration of the 
     bankruptcy system, address certain commercial issues and 
     consumer issues in bankruptcy, and establish a commission to 
     study and make recommendations on problems with the 
     bankruptcy system, and for other purposes.

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the bill 
which had been reported from the Committee on the Judiciary, with an 
amendment to strike all after the enacting clause and inserting in lieu 
thereof the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.

              TITLE I--IMPROVED BANKRUPTCY ADMINISTRATION

Sec. 101. Expedited hearing on automatic stay.
Sec. 102. Expedited filing of plans under chapter 11.
Sec. 103. Expedited filing of plans under chapter 12.
Sec. 104. Expedited procedure for reaffirmation of debts.
Sec. 105. Powers of bankruptcy courts.
Sec. 106. Participation by bankruptcy administrator at meetings of 
              creditors and equity security holders.
Sec. 107. Definition relating to eligibility to serve on chapter 11 
              committees.
Sec. 108. Increased incentive compensation for trustees.
Sec. 109. Dollar adjustments.
Sec. 110. Premerger notification.
Sec. 111. Allowance of creditor committee expenses.
Sec. 112. Judicial conference report.
Sec. 113. Service of process.
Sec. 114. Meetings of creditors and equity security holders.
Sec. 115. Tax assessment.

               TITLE II--COMMERCIAL ISSUES IN BANKRUPTCY

Sec. 201. Small business chapter.
Sec. 202. Single asset real estate.
Sec. 203. Aircraft equipment, vessels, and rolling stock equipment.
Sec. 204. Unexpired leases of personal property in chapter 11 cases.
Sec. 205. Protection of assignees of executory contracts and unexpired 
              leases approved by court order in cases reversed on 
              appeal.
Sec. 206. Protection of security interest in post-petition rents.
Sec. 207. Anti-alienation.
Sec. 208. Exemption.
Sec. 209. Indenture trustee compensation.
Sec. 210. Payment of 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. Payment of insurance benefits to retired employees.
Sec. 221. Notices to creditors.

                 TITLE III--CONSUMER BANKRUPTCY ISSUES

Sec. 301. Period for curing default relating to principal residence.
Sec. 302. Nondischargeability of fine under chapter 13.
Sec. 303. Protection of child support and alimony.
Sec. 304. Bankruptcy petition preparers.
Sec. 305. Conversion or dismissal.
Sec. 306. Contents of plan.
Sec. 307. Stay of action against codebtor.
Sec. 308. Exemption for household goods.
Sec. 309. Professional fees.
Sec. 310. Interest on interest.

                 TITLE IV--BANKRUPTCY REVIEW COMMISSION

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

                     TITLE V--TECHNICAL CORRECTIONS

Sec. 501. Title 11, United States Code.
Sec. 502. Title 28, United States Code.

   TITLE VI--SEVERABILITY; EFFECTIVE DATE; APPLICATION OF AMENDMENTS

Sec. 601. Severability.
Sec. 602. Effective date; application of amendments.
              TITLE I--IMPROVED BANKRUPTCY ADMINISTRATION

     SEC. 101. EXPEDITED HEARING ON AUTOMATIC STAY.

       The last sentence of section 362(e) of title 11, United 
     States Code, is amended--
       (1) by striking ``commenced'' and inserting ``concluded''; 
     and
       (2) by inserting ``, unless the 30-day period is extended 
     with the consent of the parties in interest or for a specific 
     time which the court finds is required by compelling 
     circumstances'' before the period at the end.

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

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

     unless the need for such an increase is attributable to 
     circumstances for which the debtor should not justly be held 
     accountable.''.

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

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

     SEC. 104. EXPEDITED PROCEDURE FOR REAFFIRMATION OF DEBTS.

       (a) Reaffirmation.--Section 524(c) of title 11, United 
     States Code, is amended--
       (1) in paragraph (2)--
       (A) by inserting ``(A)'' after ``(2)'';
       (B) by adding ``and'' at the end; and
       (C) by inserting after subparagraph (A), as designated by 
     subparagraph (A), the following new subparagraph:
       ``(B) such agreement contains a clear and conspicuous 
     statement that advises the debtor that the agreement is not 
     required under this title, under nonbankruptcy law, or under 
     any agreement that is not in accordance with the provisions 
     of this subsection;''; and
       (2) in paragraph (3)--
       (A) in the matter preceding subparagraph (A) by striking 
     ``such agreement'' the last place it appears;
       (B) in subparagraph (A)--
       (i) by inserting ``such agreement'' after ``(A)''; and
       (ii) by striking ``and'' at the end; and
       (C) in subparagraph (B)--
       (i) by inserting ``such agreement'' after ``(B)''; and
       (ii) by adding ``and'' at the end; and
       (3) by adding at the end the following new subparagraph:
       ``(C) the attorney fully advised the debtor of the legal 
     effect and consequences of--
       ``(i) an agreement of the kind described in this 
     subsection; and
       ``(ii) any default under such an agreement;''.
       (b) Effect of Discharge.--The third sentence of section 
     524(d) of title 11, United States Code, is amended in the 
     matter preceding paragraph (1) by inserting ``and was not 
     represented by an attorney during the course of negotiating 
     the agreement'' after ``this section''.

     SEC. 105. POWERS OF BANKRUPTCY COURTS.

       (a) Status Conferences.--Section 105 of title 11, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(d) The court, on its own motion or on the motion of any 
     party in interest, may--
       ``(1) hold a status conference regarding any case or 
     proceeding under this title after notice to the parties in 
     interest; and
       ``(2) unless it would be inconsistent with another 
     provision of this title or with applicable Bankruptcy Rules, 
     issue an order at any such conference prescribing such 
     limitations and conditions as the court deems to be 
     appropriate to ensure that the case is handled expeditiously 
     and economically, including an order that--
       ``(A) sets the date by which the debtor must accept or 
     reject an executory contract or unexpired lease; or
       ``(B) in a case under chapter 11--
       ``(i) sets a date by which the debtor, or the trustee if 
     one has been appointed, shall file a disclosure statement and 
     plan;
       ``(ii) sets a date by which the debtor, or the trustee if 
     one has been appointed, shall solicit acceptances of a plan;
       ``(iii) sets the date by which a party in interest other 
     than a debtor may file a plan;
       ``(iv) fixes the notice to be provided regarding the 
     hearing on approval of the disclosure statement;
       ``(v) provides that the hearing on approval of the 
     disclosure statement may be combined with the hearing on 
     confirmation of the plan; and
       ``(vi) directs the use of standard-form disclosure 
     statements, plans, or other forms that have been adopted by 
     the court.''.
       (b) Establishment, Operation, and Termination of Bankruptcy 
     Appellate Panel Service.--Section 158(b) of title 28, United 
     States Code, is amended--
       (1) by striking paragraphs (3) and (4);
       (2) by redesignating paragraph (2) as paragraph (4);
       (3) by striking paragraph (1) and inserting the following 
     new paragraphs:
       ``(1)(A) Except as provided in subparagraph (B), the 
     judicial council of a circuit shall establish a bankruptcy 
     appellate panel service composed of bankruptcy judges of the 
     districts in the circuit who are appointed by the judicial 
     council in accordance with paragraph (3), to hear and 
     determine, with the consent of all parties to an appeal, 
     appeals under subsection (a).
       ``(B)(i) The judicial council of a circuit need not 
     establish a bankruptcy appellate panel service if the 
     judicial council finds that--
       ``(I) there are insufficient judicial resources available 
     in the circuit; or
       ``(II) establishment of such a service would result in 
     undue delay or increased cost to parties in cases under title 
     11.
       ``(ii) Not later than 90 days after making a finding under 
     clause (i), the judicial council shall submit to the Judicial 
     Conference a report containing the factual basis of the 
     finding.
       ``(2)(A) A judicial council may reconsider a finding 
     described in paragraph (1)(B) at any time.
       ``(B) On the request of a majority of the district judges 
     in a circuit for which a bankruptcy appellate panel service 
     is established under paragraph (1), made after the expiration 
     of the 1-year period beginning on the date on which the 
     service is established, the judicial council of the circuit 
     shall determine whether a circumstance described in paragraph 
     (1)(B)(i) (I) or (II) exists.
       ``(C) On its own motion, after the expiration of the 3-year 
     period beginning on the date on which a bankruptcy appellate 
     panel service is established under paragraph (1), the 
     judicial council of a circuit may determine whether a 
     circumstance described in paragraph (1)(B)(i) (I) or (II) 
     exists.
       ``(D) If the judicial council of a circuit finds that a 
     circumstance described in paragraph (1)(B)(i) (I) or (II) 
     exists, the judicial council may provide for the completion 
     of the appeals then pending before a bankruptcy appellate 
     panel service and the orderly termination of the service.
       ``(3) Bankruptcy judges appointed under paragraph (1) shall 
     be appointed for a term of 2 years and may be reappointed 
     under that paragraph.''; and
       (4) by inserting after paragraph (4), as redesignated by 
     paragraph (2), the following new paragraphs:
       ``(5) An appeal to be heard under this subsection shall be 
     heard by a panel of 3 members of the bankruptcy appellate 
     panel service, except that a member of the service may not 
     hear an appeal originating in the district for which the 
     member is appointed or designated under section 152.
       ``(6) Appeals may not be heard under this subsection by a 
     panel of the bankruptcy appellate panel service unless the 
     district judges for the district in which the appeals occur, 
     by majority vote, have authorized the service to hear and 
     determine appeals originating in that district.''.
       (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. 106. PARTICIPATION BY BANKRUPTCY ADMINISTRATOR AT 
                   MEETINGS OF CREDITORS AND EQUITY SECURITY 
                   HOLDERS.

       (a) Presiding Officer.--A bankruptcy administrator 
     appointed under section 302(d)(3)(I) of the Bankruptcy 
     Judges, United States Trustees, and Family Farmer Bankruptcy 
     Act of 1986 (28 U.S.C. 581 note; 100 Stat. 3123), or the 
     bankruptcy administrator's designee, may preside at--
       (1) a meeting of creditors convened under section 341(a) of 
     title 11, United States Code; and
       (2) a meeting of equity security holders convened under 
     section 341(b) of title 11, United States Code.
       (b) Examination of the Debtor.--The bankruptcy 
     administrator or the bankruptcy administrator's designee may 
     examine the debtor at the meeting of creditors and may 
     administer the oath required under section 343 of title 11, 
     United States Code.

     SEC. 107. DEFINITION RELATING TO ELIGIBILITY TO SERVE ON 
                   CHAPTER 11 COMMITTEES.

       The definition of ``person'' in section 101 of title 11, 
     United States Code, as amended by section 501(a), is amended 
     to read as follows:
       ```person' includes an individual, partnership, and 
     corporation, but does not include a governmental unit, except 
     that a governmental unit that--
       ``(A) acquires an asset from a person--
       ``(i) as a result of the operation of a loan guarantee 
     agreement; or
       ``(ii) as receiver or liquidating agent of a person;
       ``(B) is a guarantor of a pension benefit payable by or on 
     behalf of the debtor or an affiliate of the debtor; or
       ``(C) is the legal or beneficial owner of an asset of--
       ``(i) an employee pension benefit plan that is a 
     governmental plan, as defined in section 414(d) of the 
     Internal Revenue Code of 1986; or
       ``(ii) an eligible deferred compensation plan, as defined 
     in section 457(b) of the Internal Revenue Code of 1986,

     shall be considered, for purposes of section 1102, to be a 
     person with respect to such asset or such benefit.''.

     SEC. 108. INCREASED INCENTIVE COMPENSATION FOR TRUSTEES.

       Section 326(a) of title 11, United States Code, is amended 
     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. 109. DOLLAR ADJUSTMENTS.

       (a) Who May Be a Debtor Under Chapter 13.--Section 109(e) 
     of title 11, United States Code, is amended--
       (1) by striking ``unsecured debts of less than $100,000 and 
     noncontingent, liquidated, secured debts of less than 
     $350,000'' and inserting ``debts of less than $1,000,000''; 
     and
       (2) by striking ``unsecured debts that aggregate less than 
     $100,000 and noncontingent, liquidated, secured debts of less 
     than $350,000'' and inserting ``debts in the aggregate of 
     less than $1,000,000''.
       (b) Involuntary Cases.--Section 303(b) of title 11, United 
     States Code, is amended--
       (1) in paragraph (1) by striking ``$5,000'' and inserting 
     ``$10,000''; and
       (2) in paragraph (2) by striking ``$5,000'' and inserting 
     ``$10,000''.
       (c) Priorities.--Section 507(a) of title 11, United States 
     Code, is amended--
       (1) in paragraph (3)(B) by striking ``$2,000'' and 
     inserting ``$4,000'';
       (2) in paragraph (4)(B)(i) by striking ``$2,000'' and 
     inserting ``$4,000'';
       (3) in paragraph (5) by striking ``$2,000'' and inserting 
     ``$4,000''; and
       (4) in paragraph (6)--
       (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. 110. 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 10th day after the 
     date of receipt of the notification, unless the waiting 
     period is extended--
       ``(i) pursuant to subsection (e)(2) or (g)(2) of that 
     section; or
       ``(ii) by the court, after notice and a hearing.''.

     SEC. 111. ALLOWANCE OF CREDITOR COMMITTEE EXPENSES.

       Section 503(b) of title 11, United States Code, is 
     amended--
       (1) by striking ``and'' at the end of paragraph (5);
       (2) by striking the period at the end of paragraph (6) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(7) the actual, necessary expenses incurred by a member 
     of a committee appointed under section 1102 in the 
     performance of the duties of the committee (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. 112. 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. 113. SERVICE OF PROCESS.

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

     SEC. 114. 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. 115. TAX ASSESSMENT.

       Section 362(b)(9) of title 11, United States Code, is 
     amended to read as follows:
       ``(9) under subsection (a), of an audit by a governmental 
     unit to determine tax liability, of the issuance to the 
     debtor by a governmental unit of a notice of tax deficiency, 
     of a demand for tax returns, or of an assessment of an 
     uncontested or agreed upon tax liability;''.
               TITLE II--COMMERCIAL ISSUES IN BANKRUPTCY

     SEC. 201. SMALL BUSINESS CHAPTER.

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

                     ``CHAPTER 10--SMALL BUSINESSES

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

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

                       ``subchapter ii--the plan

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

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

     ``Sec. 1001. Definitions for this chapter

       ``In this chapter, `disposable income' means income that is 
     received by a debtor and that is not reasonably necessary to 
     be expended for the payment of expenditures necessary for the 
     continuation, preservation, and operation of the debtor's 
     business.

     ``Sec. 1002. Commencement of case

       ``(a) Election by Debtor.--A person that is eligible to be 
     a small business debtor may commence a case under this 
     chapter by filing a voluntary petition electing to be treated 
     as a small business.
       ``(b) Conversion.--
       ``(1) This chapter to chapter 11.--Upon the motion of a 
     party in interest, and after notice and a hearing, the court 
     may determine that a person subject to an order for relief 
     electing treatment under this chapter does not qualify as a 
     small business, and that the case shall be converted to a 
     case under chapter 11, 12, or 13.
       ``(2) Compensation of trustee.--Prior to the court's 
     conversion of a case under this section, the court shall 
     charge upon and require to be paid from the estate such 
     compensation as the court finds reasonable under the 
     circumstances to compensate the trustee appointed and serving 
     under section 1003.

     ``Sec. 1003. Trustee

       ``(a) Person To Serve.--If the United States trustee has 
     appointed a person under section 586(b) of title 28 to serve 
     as a standing trustee in cases under this chapter and if that 
     person qualifies as a trustee under section 322, that person 
     shall serve as a trustee in any case filed under this 
     chapter. If such a person has not been appointed, the United 
     States trustee shall appoint one disinterested person to 
     serve as trustee in the case or the United States trustee may 
     serve as trustee in the case.
       ``(b) Duties.--The trustee shall--
       ``(1) perform the duties described in section 704 (2), (3), 
     (5), (6), (7), and (9);
       ``(2) perform the duties described in section 1106(a) (3) 
     and (4) if the court, for cause and on a request of a party 
     in interest, the trustee, or the United States trustee, so 
     orders;
       ``(3) appear and be heard at any hearing that concerns--
       ``(A) the value of property subject to a lien;
       ``(B) the operation of the business activity of the person 
     by the debtor;
       ``(C) the filing of a plan and the approval of a disclosure 
     statement;
       ``(D) confirmation of a plan;
       ``(E) modification of a plan after confirmation; or
       ``(F) the sale of property of the estate;
       ``(4) ensure that the debtor timely files a plan and 
     disclosure statement;
       ``(5) ensure that the debtor commences making timely 
     payments required by a confirmed plan;
       ``(6) if the debtor ceases to be a debtor-in-possession, 
     perform the duties described in sections 704(8) and 1106(a) 
     (1), (2), (6), and (7);
       ``(7) investigate the financial affairs of the debtor 
     including, but not limited to, the proper use of disposable 
     income;
       ``(8) file and serve the report required by section 
     1029(d); and
       ``(9) file such motions as are appropriate under section 
     1029.

     ``Sec. 1004. Rights and powers of debtor

       ``Subject to such limitations as the court may prescribe, a 
     debtor-in-possession shall have all the rights, other than 
     the right to compensation under section 330, and powers, and 
     shall perform all the functions and duties, except the duties 
     described in section 1106(a) (3) and (4), of a trustee 
     serving in a case under chapter 11, including operating the 
     debtor's business activities.

     ``Sec. 1005. Removal of debtor as debtor-in-possession

       ``(a) Order for Cause.--On request of a party in interest, 
     and after notice and a hearing, the court shall order that 
     the debtor shall not be a debtor-in-possession if cause, 
     including fraud, dishonesty, incompetence, or gross 
     mismanagement of the affairs of the debtor, either before or 
     after the commencement of the case, is shown.
       ``(b) Reinstatement.--On request of a party in interest, 
     and after notice and a hearing, the court may reinstate the 
     debtor-in-possession.

     ``Sec. 1006. Property of the estate

       ``(a) Property Included.--Property of the estate includes, 
     in addition to property described in section 541, all 
     property of the kind specified in that section that the 
     debtor acquires after the commencement of the case but before 
     the case is closed, dismissed, or converted to a case under 
     chapter 7, whichever comes first.
       ``(b) Possession.--Except as provided in section 1005 or in 
     a confirmed plan or order confirming a plan, a debtor shall 
     remain in possession of all property of the estate.

     ``Sec. 1007. Conversion or dismissal

       ``(a) Conversion by Debtor.--A debtor may convert a case 
     under this chapter to a case under chapter 7 at any time if 
     the debtor may be a debtor under that chapter. Any waiver of 
     the right to convert under this subsection is unenforceable.
       ``(b) Dismissal by Debtor.--On request of the debtor at any 
     time, if the case has not been converted under section 706 or 
     1112, the court may dismiss a case under this chapter.
       ``(c) Conversion or Dismissal at Request of Party in 
     Interest.--
       ``(1) In general.--On request of a party in interest, and 
     after notice and a hearing, the court may convert a case 
     under this chapter to a case under chapter 7 (if the debtor 
     may be a debtor under this chapter) or may dismiss the case 
     for cause.
       ``(2) Cause.--For purposes of paragraph (1), cause 
     includes--
       ``(A) unreasonable delay or gross mismanagement by the 
     debtor that is prejudicial to creditors;
       ``(B) nonpayment of any fees and charges required under 
     chapter 123 of title 28;
       ``(C) failure to file a plan timely under section 1021;
       ``(D) failure to file a disclosure statement timely under 
     section 1023;
       ``(E) failure to commence making timely payments required 
     by a confirmed plan;
       ``(F) denial of confirmation of a plan under section 1026 
     or denial of a request made for additional time to filing 
     another plan or a modification of a plan;
       ``(G) material default by a debtor with respect to a term 
     of a confirmed plan;
       ``(H) revocation of an order of confirmation under section 
     1030 or denial of confirmation of a modified plan under 
     section 1029;
       ``(I) termination of a confirmed plan by reason of the 
     occurrence of a condition specified in the plan; and
       ``(J) continuing loss to or diminution of the estate and 
     absence of a reasonable likelihood of rehabilitation.
       ``(d) Compensation of Trustee.--Prior to the court's 
     conversion or dismissal of a case under this section, the 
     court shall charge upon and require to be paid from the 
     estate such compensation as the court finds reasonable under 
     the circumstances to compensate the trustee appointed and 
     serving under section 1003.

                       ``Subchapter II--The Plan

     ``Sec. 1021. Filing of plan

       ``The debtor shall file a plan not later than 90 days after 
     the date of entry of the order for relief under this chapter, 
     except that the court may, for cause shown, and after notice 
     and hearing, shorten or extend that period if such shortening 
     or extension is substantially justified.

     ``Sec. 1022. Contents of plan

       ``(a) Required Contents.--The plan shall--
       ``(1) provide for the submission of all or such portion of 
     future earnings or other future income of the debtor to the 
     supervision and control of the trustee as is necessary for 
     the execution of the plan; and
       ``(2) if the plan classifies claims and interests, provide 
     the same treatment for each claim or interest within a 
     particular class unless the holder of a particular claim or 
     interest agrees to less favorable treatment.
       ``(b) Additional Contents.--Subject to subsections (a) and 
     (c), the plan may--
       ``(1) designate a class or classes of unsecured claims, as 
     provided in section 1122, but may not discriminate unfairly 
     against any class so designated; however, the plan may treat 
     claims for a consumer debt differently from other unsecured 
     claims if another individual is liable on the consumer debt 
     with the debtor;
       ``(2) modify the rights of holders of secured claims or 
     holders of unsecured claims, or leave unaffected the rights 
     of holders of any class of claims, but the plan may not 
     modify a claim pursuant to section 506 of a person holding a 
     primary or junior security interest in real property or a 
     manufactured home (as defined in section 603(6) of the 
     National Manufactured Housing Construction and Safety 
     Standards Act of 1974 (42 U.S.C. 5402(6)) that is the 
     debtor's principal residence, except that the plan may modify 
     the claim of a person holding such a junior security interest 
     that was undersecured at the time the interest attached to 
     the extent that the interest remains undersecured;
       ``(3) provide for the curing or waiving of any default;
       ``(4) provide for payments on any unsecured claim to be 
     made concurrently with payments on any secured claim or any 
     other unsecured claim;
       ``(5) notwithstanding paragraph (2), provide for the curing 
     of any default within a reasonable time and maintenance of 
     payments while the case is pending on any unsecured claim or 
     secured claim on which the last payment is due after the date 
     on which the final payment under the plan is due;
       ``(6) subject to section 365, provide for the assumption, 
     rejection, or assignment of any executory contract or expired 
     lease of the debtor not previously rejected under that 
     section;
       ``(7) provide for the payment of all or part of a claim 
     against the debtor from the property of the estate or 
     property of the debtor;
       ``(8) provide for the sale of all or any part of the 
     property of the estate among those having an interest in such 
     property;
       ``(9) provide for payment of allowed secured claims, 
     consistent with section 1026(a)(5), over a period exceeding 
     the period permitted under section 1022(c);
       ``(10) provide for the vesting of property of the estate on 
     confirmation of the plan or at a later time, in the debtor of 
     any other entity; and
       ``(11) include any other appropriate provision not 
     inconsistent with this title.
       ``(c) Limitation.--Except as provided in subsection (b) (5) 
     and (9), the plan may not provide for payments over a period 
     that is longer than 3 years unless the court for cause 
     approves a longer period, but the court may not approve a 
     period that is longer than 5 years.

     ``Sec. 1023. Postpetition disclosure and solicitation

       ``(a) Plan and Disclosure Statement.--In a case under this 
     chapter, an acceptance or rejection of a plan may not be 
     solicited after the commencement of the case from a holder of 
     a claim or interest with respect to the claim or interest 
     unless, at the time or before such solicitation, there is 
     transmitted to the holder the plan or a summary of the plan 
     and a written disclosure statement that includes information 
     sufficient to show whether or not the plan meets the 
     requirements of section 1026.
       ``(b) Form.--The court may require that the summary of the 
     plan and the disclosure statement employ a standard form 
     approved by the court.

     ``Sec. 1024. Modification of plan before confirmation

       ``(a) In General.--A debtor may modify a plan at any time 
     before confirmation but may not modify the plan so that the 
     plan as modified fails to meet the requirements of section 
     1022.
       ``(b) Effect.--After a debtor files a modification under 
     this section, the plan as modified becomes the plan.
       ``(c) Acceptance.--A holder of a secured claim that has 
     accepted or rejected a plan is deemed to have accepted or 
     rejected, as the case may be, the plan as modified, unless--
       ``(1) the modification provides for a change in the rights 
     of the holder under the plan before modification; and
       ``(2) the holder changes the holder's previous acceptance 
     or rejection.

     ``Sec. 1025. Confirmation hearing

       ``(a) Hearing.--After expedited notice, the court shall 
     hold a hearing on confirmation of the plan.
       ``(b) Objection to Confirmation.--A party in interest, the 
     trustee, or the United States trustee may object to the 
     confirmation of the plan.
       ``(c) Objection to Disclosure of Information.--A party in 
     interest, the trustee, or the United States trustee may 
     object to the disclosure of information that is required to 
     be disclosed under section 1023.
       ``(d) Conclusion of Hearing.--Except for cause, the hearing 
     shall be concluded not later than 45 days after the filing of 
     the plan.

     ``Sec. 1026. Confirmation of plan

       ``(a) Criteria.--Except as provided in subsection (b), the 
     court shall confirm a plan if--
       ``(1) the plan complies with all applicable provisions of 
     this title;
       ``(2) any fee, charge, or amount required under chapter 123 
     of title 28, or by the plan, to be paid before confirmation, 
     has been paid;
       ``(3) the plan has been proposed in good faith and not by 
     any means forbidden by law;
       ``(4) the value of property to be distributed under the 
     plan on account of each unsecured claim, as of the effective 
     date of the plan, is not less than the amount that would be 
     paid on the claim if the estate of the debtor were to be 
     liquidated under chapter 7 on that date;
       ``(5) with respect to each allowed secured claim provided 
     for by the plan--
       ``(A) the holder of the claim has accepted the plan;
       ``(B)(i) the plan provides that the holder of the claim 
     will retain the lien securing the claim; and
       ``(ii) the value of property to be distributed by the 
     trustee or the debtor under the plan on account of the claim, 
     as of the effective date of the plan, is not less than the 
     allowed amount of the claim; or
       ``(C) the debtor surrenders the property securing the claim 
     to the holder;
       ``(6) the debtor will be able to make all payments under 
     the plan and to comply with the plan;
       ``(7) except to the extent that the holder of a claim has 
     agreed to a different treatment of the claim, the plan 
     provides that--
       ``(A) with respect to a claim of a kind described in 
     section 507(a) (1) or (2), on the effective date of the plan, 
     the holder of the claim will receive on account of the claim 
     cash equal to the allowed amount of the claim;
       ``(B) with respect to a class of claims of a kind described 
     in section 507(a) (3), (4), (5), or (6), each holder of a 
     claim of the class will receive cash or deferred cash 
     payments of a value, as of the effective date of the plan, 
     equal to the allowed amount of such claims; and
       ``(C) with respect to a claim of a kind described in 
     section 507(a)(7), the holder of the claim will receive on 
     account of the claim deferred cash payments, over a period 
     ending on the later of--
       ``(i) the date of termination of the plan; or
       ``(ii) the date that is 6 years after the date of 
     assessment of the claim,

     of a value, as of the effective date of the plan, equal to 
     the allowed amount of the claim; and
       ``(8) confirmation of the plan is not likely to be followed 
     by the liquidation or the need for further financial 
     reorganization of the debtor or any successor to the debtor 
     under the plan, unless liquidation or reorganization is 
     proposed in the plan.
       ``(b) Confirmation Notwithstanding Nonconformance or 
     Objection.--If the trustee or the holder of an allowed 
     unsecured claim objects to the confirmation of the plan, the 
     court may not approve the plan unless, as of the effective 
     date of the plan--
       ``(1) the value of the property to be distributed under the 
     plan on account of the claim is not less than the amount of 
     the claim; or
       ``(2) the plan provides that all of the debtor's projected 
     disposable income to be received in the 3-year period, or 
     such longer period as the court may approve under section 
     1022(c), beginning on the date on which the first payment is 
     due under the plan, will be applied to make payments under 
     the plan.

     ``Sec. 1027. Payments

       ``(a) Retention by Trustee.--Payments and funds received by 
     the trustee shall be retained by the trustee until 
     confirmation or denial of confirmation of a plan.
       ``(b) Distribution Following Confirmation.--If a plan is 
     confirmed, the trustee shall distribute in accordance with 
     the plan payments and funds retained pursuant to subsection 
     (a).
       ``(c) Return Following 
     Nonconfirmation.--If a plan is not 
     confirmed, the trustee shall return any payments and funds 
     retained pursuant to subsection (a), after deducting--
       ``(1) any unpaid claim allowed under section 503(b); and
       ``(2) if a standing trustee is serving in the case, the 
     percentage fixed for the standing trustee under section 1003.
       ``(d) Payments Preceding Payments to Creditors.--Before or 
     at the time of each payment to creditors under the plan, 
     there shall be paid--
       ``(1) any unpaid claim of a kind described in section 
     507(a)(1); and
       ``(2) if a standing trustee is serving in the case, the 
     percentage fee fixed for such standing trustee under section 
     1003.
       ``(e) Payments to Creditors.--Except as otherwise provided 
     in the plan or in the order confirming the plan, the trustee 
     shall make payments to creditors under the plan.

     ``Sec. 1028. Effect of confirmation

       ``(a) Persons Bound.--Except as provided in subsection (d) 
     (2) and (3), a confirmed plan binds the debtor, any entity 
     issuing securities under the plan, any entity acquiring 
     property under the plan, and any creditor, equity security 
     holder, or general partner of the debtor, whether or not the 
     claim or interest of such creditor, equity security holder, 
     or general partner is impaired under the plan and whether or 
     not such creditor, equity security holder, or general partner 
     has accepted the plan.
       ``(b) Vesting of Property.--Except as otherwise provided in 
     the plan or order confirming the plan, the confirmation of a 
     plan vests all of the property of the estate in the debtor.
       ``(c) Freedom of Property From Claims and Interests.--
     Except as provided in subsection (d) (2) and (3), and except 
     as otherwise provided in the plan or in the order confirming 
     the plan, after confirmation of a plan, the property dealt 
     with by the plan is free and clear of all claims and 
     interests of creditors, equity security holders, and general 
     partners of the debtor.
       ``(d) Discharge of Debtor.--
       ``(1) On completion of payments.--As soon as practicable 
     after completion by the debtor of all payments under the 
     plan, other than payments to holders of allowed claims 
     provided for under section 1022(b) (5) or (9), unless the 
     court approves a written waiver of discharge executed by the 
     debtor after the order for relief under this chapter, the 
     court shall grant the debtor a discharge of all debts 
     provided for by the plan allowed under section 503 or 
     disallowed under section 502, except any debt--
       ``(A) provided for under section 1022(b) (5) or (9); or
       ``(B) of the kind specified in section 523(a).
       ``(2) When payments are not completed.--At any time after 
     the confirmation of the plan and after notice and a hearing, 
     the court may grant a discharge to a debtor that has not 
     completed payments under the plan if--
       ``(A) the debtor's failure to complete such payments is due 
     to circumstances for which the debtor should not be justly 
     held accountable;
       ``(B) the value, as of the effective date of the plan, of 
     property actually distributed under the plan on account of 
     each allowed secured claim is not less than the amount that 
     would have been paid on the claim if the estate of the debtor 
     had been liquidated under chapter 7 on that date; and
       ``(C) modification of the plan under section 1029 is not 
     practicable.
       ``(3) Effect.--A discharge granted under paragraph (2) 
     discharges the debtor from all unsecured debts provided for 
     by the plan or disallowed under section 502, except any 
     debt--
       ``(A) provided for under section 1022(b) (5) or (9); or
       ``(B) of a kind specified in section 523(a).
       ``(4) Revocation.--On request of a party in interest made 
     before the date that is 1 year after the date on which a 
     discharge under this section is granted, and after notice and 
     hearing, the court may revoke the discharge if--
       ``(A) the discharge was obtained by the debtor through 
     fraud; and
       ``(B) the requesting party did not know of the fraud until 
     after the discharge was granted.
       ``(e) Termination of Services of Trustee.--After the debtor 
     is granted a discharge, the court shall terminate the 
     services of any trustee serving in the case.

     ``Sec. 1029. Modification of plan after confirmation

       ``(a) In General.--At any time after confirmation of a plan 
     but before the completion of payments under the plan, the 
     plan may be modified, on request of the debtor, the trustee, 
     or the holder of any allowed unsecured claim, to--
       ``(1) increase or reduce the amount of payments of claims 
     of a particular class provided for by the plan;
       ``(2) extend or reduce the time for such payments; or
       ``(3) alter the amount of the distribution to a creditor 
     whose claim is provided for by the plan to the extent 
     necessary to take account of any payment of the claim other 
     than under the plan.
       ``(b) Applicability of Requirements.--Sections 1022 (a) and 
     (b) and 1024 and the requirements of section 1025(a) apply to 
     a modification under subsection (a).
       ``(c) Limitation.--A plan modified under subsection (a) may 
     not provide for payments over a period that expires after 3 
     years after the date on which the first payment under the 
     original confirmed plan was due, unless the court, for cause, 
     approves a longer period, but the court may not approve a 
     period that expires after 5 years after that date.
       ``(d) Report.--Not later than 60 days after each 
     anniversary of the confirmation of the plan, the trustee 
     shall file a report with the court, and serve a copy on all 
     creditors requesting service of a copy of the report, setting 
     forth--
       ``(1) the amount of distributions made to creditors during 
     the preceding year;
       ``(2) a description of the debtor's compliance with the 
     provisions of the plan during the preceding year;
       ``(3) a description of the debtor's disposable income in 
     relation to the continued ability to comply with the terms of 
     the confirmed plan; and
       ``(4) any modifications to the plan that are necessary to 
     ensure the reorganization of the debtor and the payment to 
     creditors of all disposal income.

     ``Sec. 1030. Revocation of order of confirmation

       ``(a) Revocation for Fraud.--On request of a party in 
     interest at any time within 180 days after the date of the 
     entry of an order of confirmation under section 1028, and 
     after notice and a hearing, the court may revoke the order if 
     the order was procured by fraud.
       ``(b) Disposition of Case After Revocation.--If the court 
     revokes an order of confirmation under subsection (a), the 
     court shall dispose of the case under section 1007, unless, 
     within a time fixed by the court, the debtor proposes and the 
     court confirms a modification of the plan under section 
     1029.''.
       (d) Technical Amendments.--
       (1) Table of chapters in title 11, united states code.--
     Title 11, United States Code, is amended in the table of 
     chapters by inserting after the item relating to chapter 9 
     the following new item:

``10. Small Businesses......................................1001''.....

       (2) Cross-references in title 11, united states code.--
     Title 11, United States Code, is amended--
       (A) in section 321(a) by inserting ``10,'' after ``7,'' 
     each place it appears;
       (B) in section 322(a) by inserting ``1005'' after ``703,'';
       (C) in section 326(b)--
       (i) by striking ``12 or 13'' and inserting ``10, 12, or 
     13''; and
       (ii) by striking ``1202(a) or 1302(a)'' and inserting 
     ``1005, 1202(a), or 1302(a)'';
       (D) in section 327--
       (i) in subsection (b) by inserting ``1005,'' after 
     ``721,''; and
       (ii) in subsection (c) by inserting ``10,'' after ``7,'';
       (E) in section 329(b)(1)(B) by inserting ``10,'' after 
     ``chapter'';
       (F) in section 330(c) by striking ``12 or 13'' and 
     inserting ``10, 12, or 13'';
       (G) in section 346--
       (i) in subsection (b) by inserting ``10,'' after ``7,'';
       (ii) in subsection (g)(1)(C) by striking ``11 or 12'' and 
     inserting ``10, 11, or 12''; and
       (iii) in subsection (i)(1) by inserting ``10,'' after 
     ``7,'';
       (H) in section 347--
       (i) in subsection (a)--

       (I) by inserting ``1027,'' after ``726,''; and
       (II) by inserting ``10,'' after ``7,''; and

       (ii) in subsection (b)--

       (I) by inserting ``10,'' after ``9,''; and
       (II) by inserting ``1026,'' after ``943(b),'';

       (I) in section 348--
       (i) in subsections (b), (c), and (e) by inserting ``1009,'' 
     after ``706,'' each place it appears; and
       (ii) in subsection (d) by inserting ``1009,'' after 
     ``section'';
       (J) in section 362(c)(2)(C) by inserting ``10,'' after 
     ``9,'';
       (K) in section 363--
       (i) in subsection (c)(1) by inserting ``1006,'' after 
     ``721,''; and
       (ii) in subsection (l) by inserting ``10,'' after 
     ``chapter'';
       (L) in section 364(a) by inserting ``1006, 1007,'' after 
     ``721,'';
       (M) in section 365--
       (i) in subsections (d)(2) and (g) (1) and (2) by inserting 
     ``10,'' after ``9,'' each place it appears; and
       (ii) in subsection (g)(2) (A) and (B) by inserting 
     ``1009,'' after ``section'' each place it appears;
       (N) in section 502(g) by inserting ``10,'' after ``9,'';
       (O) in section 523(a) by inserting ``1028(d),'' after 
     ``727,'';
       (P) in section 524--
       (i) in subsections (a)(1), (c)(1), and (d) by inserting 
     ``1028(d),'' after ``727,'' each place it appears; and
       (ii) in subsection (a)(3) by inserting ``1028(d),'' after 
     ``523,'';
       (Q) in section 546(a)(1) by inserting ``1005,'' after 
     ``702,'';
       (R) in section 557(d)(3) by inserting ``1005,'' after 
     ``703,'';
       (S) in section 706--
       (i) in subsection (a)--

       (I) by inserting ``10,'' before ``11,''; and
       (II) by inserting ``1009,'' after ``section''; and

       (ii) in subsection (c) by striking ``12 or 13'' and 
     inserting ``10, 12, or 13'';
       (T) in section 726(b) by inserting ``1009,'' after 
     ``chapter under section'';
       (U) in section 1106(a)(5) by inserting ``10,'' after 
     ``7,'';
       (V) in section 1306(a) (1) and (2) by inserting ``10,'' 
     after ``7,'' each place it appears; and
       (W) in section 1307--
       (i) in subsection (b) by inserting ``1009,'' after 
     ``706,'';
       (ii) in subsection (d) by striking ``11 or 12'' and 
     inserting ``10, 11, or 12''; and
       (iii) in subsection (e) by inserting ``10,'' after ``7,''.
       (3) Bankruptcy rules.--The rules prescribed under section 
     2075 of title 28, United States Code, and in effect on the 
     date of the enactment of this Act shall apply to cases filed 
     under chapter 10 of title 11, United States Code, to the 
     extent practicable and not inconsistent with the amendments 
     made by this Act.
       (4) Amendment of title 28, united states code.--Title 28, 
     United States Code, is amended--
       (A) in section 157(b)(2)(B) by inserting ``10,'' after 
     ``chapter'';
       (B) in section 586--
       (i) in subsection (a)--

       (I) in paragraph (1)(C)--

       (aa) by striking ``12 and 13'' and inserting ``10, 12, and 
     13''; and
       (bb) by inserting ``1025, 1029,'' after ``sections''; and

       (II) in paragraph (3) in the matter preceding subparagraph 
     (A), by inserting ``10,'' after ``7,'';

       (C) in subsections (b), (d), and (e) by striking ``12 or 
     13'' each place it appears and inserting ``10, 12, or 13''; 
     and
       (D) in section 1930(a)--
       (i) by redesignating paragraphs (3), (4), (5), and (6) as 
     paragraphs (4), (5), (6), and (7), respectively; and
       (ii) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) For a case commenced under chapter 10 of title 11, 
     $600.''.
       (5) Amendment of the bankruptcy, judges, united states 
     trustees, and family farmer bankruptcy act of 1986.--Section 
     302 of the Bankruptcy Judges, United States Trustees, and 
     Family Farmer Bankruptcy Act of 1986 (100 Stat. 3119) is 
     amended in subsections (d) and (e) by inserting ``10,'' after 
     ``7,'' each place it appears.
       (e) Application of Chapter 10 of Title 11.--
       (1) Selection of demonstration districts.--Not later than 
     90 days after the date of enactment of this Act, the Director 
     of the Administrative Office of the United States Courts 
     shall--
       (A) select 8 judicial districts in which chapter 10 of 
     title 11, United States Code, shall be effective for a period 
     of 3 years; and
       (B) identify those districts by notice in the Federal 
     Register.
       (2) Effective period.--Chapter 10 of title 11, United 
     States Code, shall become effective only in the 8 judicial 
     districts selected under paragraph (1), beginning on the date 
     that is 90 days after the date of enactment of this Act and 
     ending on the date that is 3 years after that date.
       (3) Repeal.--(A) Chapter 10 of title 11, United States 
     Code, is repealed on the date that is 3 years after the date 
     that is 90 days after the date of enactment of this Act. All 
     cases commenced or pending under that chapter and all matters 
     and proceedings in or relating to those cases shall be 
     conducted and determined under that chapter as if the chapter 
     had not been repealed. The substantive rights of parties in 
     connection with those cases, matters, and proceedings as if 
     the chapter had not been repealed.
       (B) The Committee on the Judiciary of the Senate and the 
     Committee on the Judiciary of the House of Representatives 
     shall prepare and report to the Senate and the House of 
     Representatives, respectively, not later than 90 days before 
     the repeal date described in subparagraph (A), legislation 
     proposing such technical amendments as may be necessary or 
     appropriate at that time in view of the repeal made by 
     subparagraph (A).

     SEC. 202. SINGLE ASSET REAL ESTATE.

       (a) Definition.--Section 101 of title 11, United States 
     Code, is amended by inserting in its proper alphabetical 
     position the following new definition:
       `` `single asset real estate' means real property 
     constituting a single property or project, other than 
     residential real property with fewer than 4 residential 
     units, which generates substantially all of the gross income 
     of a debtor and on which no substantial business is being 
     conducted by a debtor other than the business of operating 
     the real property and activities incidental thereto.''.
       (b) Automatic Stay.--Section 362 of title 11, United States 
     Code, is amended--
       (1) in subsection (d)--
       (A) in paragraph (1) by striking ``or'' at the end;
       (B) in paragraph (2) by striking the period at the end and 
     inserting ``; or''; and
       (C) by adding at the end the following new paragraph:
       ``(3) with respect to a stay of an act against single asset 
     real estate under subsection (a), by a creditor whose claim 
     is secured by an interest in such real estate, unless, not 
     later than the date that is 90 days after the entry of the 
     order for relief (or such later date as the court may 
     determine for cause by order entered within that 90-day 
     period)--
       ``(A) the debtor has filed a plan of reorganization that 
     has a reasonable possibility of being confirmed within a 
     reasonable time; or
       ``(B) the debtor has commenced monthly payments to each 
     creditor whose claim is secured by such real estate, which 
     payments are in an amount equal to interest at a current fair 
     market rate on the value of the creditor's interest in the 
     real estate.''; and
       (2) by adding at the end the following new subsection:
       ``(i)(1) Upon request of a creditor whose claim is secured 
     by an interest in single asset real estate, if the interest 
     has more than de minimis value, the court shall issue an 
     order granting limited relief from the stay provided under 
     subsection (a) to permit the creditor to continue a 
     foreclosure proceeding commenced before the commencement of 
     the case up to, but not including, the point of sale.
       ``(2) An order under paragraph (1) shall not issue before 
     the date that is 30 days after the date of entry of the order 
     for relief, but thereafter shall issue promptly after such a 
     request.
       ``(3) A hearing shall not be required for the granting of 
     relief under paragraph (1) unless the debtor files an 
     objection to the request and shows the court extraordinary 
     circumstances requiring such a hearing.''.

     SEC. 203. AIRCRAFT EQUIPMENT, VESSELS, AND ROLLING STOCK 
                   EQUIPMENT.

       (a) Amendment of Section 1110.--Section 1110 of title 11, 
     United States Code, is amended to read as follows:

     ``Sec. 1110. Aircraft equipment and vessels

       ``(a)(1) The right of a secured party with a security 
     interest in equipment described in paragraph (2) or of a 
     lessor or conditional vendor of such equipment to take 
     possession of such equipment in compliance with a security 
     agreement, lease, or conditional sale contract is not 
     affected by section 362, 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) The reversal or modification on appeal of an 
     authorization under this section of an assignment of an 
     executory contract or unexpired lease does not affect the 
     validity of the assignment to an entity that obtained the 
     assignment in good faith, whether or not the entity knew of 
     the pendency of the appeal, unless the authorization and the 
     assignment were stayed pending appeal.''.

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

       Postpetition Effect of Security Interest.--Section 552(b) 
     of title 11, United States Code, is amended--
       (1) by inserting ``(1)'' after ``(b)'';
       (2) by striking ``rents,'' each place it appears; and
       (3) by adding at the end the following new paragraph:
       ``(2)(A) Except as provided in sections 363, 506(c), 522, 
     544, 545, 547, and 548, if--
       ``(i) the debtor and an entity entered into a security 
     agreement that was duly recorded in the public records before 
     the commencement of the case; and
       ``(ii) the security interest created by the security 
     agreement extends to--
       ``(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 the debtor's agreement authorizing such withholding and 
     collection for the benefit of a pension, profit sharing, 
     stock bonus, or other plan qualified under section 401 (a) or 
     (b), 403(b), or of the Internal Revenue Code of 1986, which 
     is sponsored by the employer of the debtor, or an affiliate, 
     successor or predecessor of such employer, to the extent that 
     the amounts withheld and collected are used solely for 
     payments relating to a loan from the plan that satisfies the 
     requirements of section 408(b)(1) or of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)(1)) 
     or section 4975(d)(1) of the Internal Revenue Code of 1986 
     or, in the case of a loan from the Thrift Savings Plan 
     described in subchapter III of chapter 84 of title 5, United 
     States Code, that satisfies the requirements of section 
     8433(i) of that title.''.
       (b) Exceptions to Discharge.--Subsection 523(a) of title 
     11, United States Code, is amended--
       (1) by striking ``or'' at the end of paragraph (11);
       (2) by striking the period at the end of paragraph (12) and 
     inserting ``; or''; and
       (3) by adding at the end the following new paragraph:
       ``(13) owed to a pension, profitsharing, stock bonus, or 
     other plan qualified under section 401(a), 403 (a) or (b), or 
     408(k) or a governmental plan under 414(d) or 457 of the 
     Internal Revenue Code of 1986 pursuant to a loan permitted 
     under section 408(b)(1) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1108(b)(1)) or section 
     4975(d)(1) of the Internal Revenue Code 1986 or pursuant to a 
     loan from the Thrift Savings Plan described in subchapter III 
     of title 5, United States Code, that satisfies the 
     requirements of section 8433(i) of that title.''.
       (c) Property of the Estate.--Subsection 541(c) of title 11, 
     United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(3)(A) Subject to subparagraph (B), assets and benefits 
     accumulated for the benefits of a debtor pursuant to a 
     pension, profitsharing, stock bonus, or other plan qualified 
     under section 401(a), 403(a), 403(b), or 408(k) of the 
     Internal Revenue Code of 1986 and any rights of debtor to 
     such assets or benefits shall be excluded from the property 
     of the estate.
       ``(B) Subparagraph (A) does not apply to plan assets or 
     benefits attributable to contributions of the debtor to the 
     extent that such contributions were in excess of the 
     applicable limits on such contributions under section 401(k), 
     401(m), or 415 of the Internal Revenue Code of 1986.''.
       (d) Plan Contents.--Section 1322 of title 11, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(d) The plan may not materially alter the terms of a loan 
     described in section 362(b)(18).''.
       (e) Plan Confirmation.--Section 1325 of title 11, United 
     States Code, is amended--
       (1) in subsection (b)(2) by striking ``debtor and'' and 
     inserting ``debtor (not including income that is withheld 
     from the debtor's wages for the purposes stated in section 
     362(b)(18)) and''; and
       (2) in subsection (c) by striking ``income to'' and 
     inserting ``income (except income that is withheld from a 
     debtor's wages for the purposes stated in section 362(b)(18) 
     after confirmation of a plan) to''.

     SEC. 208. EXEMPTION.

       Section 109(b)(2) of title 11, United States Code, is 
     amended by inserting after ``homestead association,'' the 
     following: ``a small business investment company licensed by 
     the Small Business Administration under section 301 (c) or 
     (d) of the Small Business Investment Act of 1958 (15 U.S.C. 
     681 (c) and (d)),''.

     SEC. 209. INDENTURE TRUSTEE COMPENSATION.

       Section 503(b) of title 11, United States Code, is 
     amended--
       (1) in paragraph (3)--
       (A) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (E) and (F), respectively;
       (B) by inserting after subparagraph (C) the following new 
     subparagraph;
       ``(D) an indenture trustee;''; and
       (C) in subparagraph (E), as redesignated by subparagraph 
     (A), by striking ``an indenture trustee,''; and
       (2) in paragraph (5) by striking ``for services rendered by 
     an indenture trustee in making a substantial contribution'' 
     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, is 
     amended--
       (1) by striking ``or'' at the end of paragraph (11);
       (2) by adding ``or'' at the end of paragraph (12); and
       (3) by adding at the end the following new paragraph:
       ``(13) incurred to 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) of title 11, United States Code, is 
     amended by striking ``forty'' and inserting ``60''.

     SEC. 213. PROCEEDS OF MONEY ORDER AGREEMENTS.

       Section 541(b) of title 11, United States Code, is 
     amended--
       (1) by striking ``or'' at the end of paragraph (2);
       (2) by striking the period at the end of paragraph (3) and 
     inserting ``; or''; and
       (3) by adding at the end the following new paragraph:
       ``(4) any interest in cash or cash equivalents that 
     constitute proceeds of a sale by the debtor of a money order 
     that is made--
       ``(A) on or after the date that is 14 days prior to the 
     date on which the petition is filed; and
       ``(B) under an agreement with a money order issuer that 
     prohibits the commingling of such proceeds with property of 
     the debtor (notwithstanding that, contrary to the agreement, 
     the proceeds may have been commingled with property of the 
     debtor),

     unless the money order issuer had not taken action, prior to 
     the filing of the petition, to require compliance with the 
     prohibition.''.

     SEC. 214. LIMITATION ON LIABILITY OF NONINSIDER TRANSFEREE 
                   FOR AVOIDED TRANSFER.

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

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

       Section 547 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 subparagraphs (B) and (C) of this paragraph, if 
     the trustee in a case under any chapter of this title does 
     not assume or reject an unexpired lease or executory contract 
     with an airport operator under which the debtor has a right 
     to the use or possession of an airport terminal, aircraft 
     gate, or related facility within 60 days after the date of 
     the order for relief, or within such additional time (not to 
     exceed 120 additional days) as the court sets during such 60-
     day period, such lease or executory contract is deemed 
     rejected, and the trustee shall immediately surrender the 
     airport terminal, gate, or related facility to the airport 
     operator.
       ``(B)(i) The court may enter an order extending beyond 180 
     days after the date of the order for relief the time for 
     assumption or rejection of an unexpired lease or executory 
     contract described in subparagraph (A) only after finding 
     that such an extension of time does not cause substantial 
     harm to the airport operator or to airline passengers.
       ``(ii) In making the determination of substantial harm, the 
     court shall consider, among other relevant factors--
       ``(I) the level of use of airport terminals, gates, or 
     related facilities subject to the unexpired lease or 
     executory contract;
       ``(II) the existence of competing demands for the use of 
     the airport terminals, gates, or related facilities;
       ``(III) the size and complexity of the case; and
       ``(IV) air carrier competition at the airport.
       ``(iii) The burden of proof for establishing cause for an 
     extension of time under this subparagraph shall be on the 
     trustee.
       ``(iv) An order entered under this subparagraph shall be 
     without prejudice to the right of a party in interest to 
     request, at any time, a shortening or termination of the 
     extension of time granted under this subparagraph.''.

     SEC. 217. TRUSTEE DUTIES.

       Section 586(a)(3)(A) of title 28, United States Code, is 
     amended to read as follows:
       ``(A)(i) reviewing, in accordance with procedural and 
     substantive guidelines adopted by the Executive Office of the 
     United States Trustee (which guidelines shall be applied 
     uniformly by the United States trustee except when 
     circumstances warrant different treatment), applications 
     filed for compensation and reimbursement under section 330 of 
     title 11; and
       ``(ii) filing with the court comments with respect to each 
     such an application and, if the United States Trustee 
     considers it to be appropriate, objections to such 
     application.''.

     SEC. 218. PAYMENTS.

       Section 1326(a)(2) of title 11, United States Code, is 
     amended in the second sentence by striking the period and 
     inserting ``as soon as practicable.''.

     SEC. 219. 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. PAYMENT OF INSURANCE BENEFITS TO RETIRED EMPLOYEES.

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

     SEC. 221. 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.''.
                 TITLE III--CONSUMER BANKRUPTCY ISSUES

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

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

     SEC. 302. NONDISCHARGEABILITY OF FINE UNDER CHAPTER 13.

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

     SEC. 303. PROTECTION OF CHILD SUPPORT AND ALIMONY.

       (a) Relief From Automatic Stay.--Section 362(b)(2) of title 
     11, United States Code, is amended to read as follows:
       ``(2) under subsection (a) of this section--
       ``(A) of the commencement or continuation of an action or 
     proceeding for--
       ``(i) the establishment of paternity; or
       ``(ii) the establishment or modification of an order for 
     alimony, maintenance, or support; or
       ``(B) of the collection of alimony, maintenance, or support 
     from property that is not property of the estate;''.
       (b) Priority of Claims.--
       (1) Alimony or support.--Section 507(a) of title 11, United 
     States Code, is amended--
       (A) in paragraph (8) by striking ``(8) Eighth'' and 
     inserting ``(9) Ninth'';
       (B) in paragraph (7) by striking ``(7) Seventh'' and 
     inserting ``(8) Eighth''; and
       (C) by inserting after paragraph (6) the following new 
     paragraph:
       ``(7) Eighth, allowed claims for debts to a spouse, former 
     spouse, or child of the debtor, for alimony to, maintenance 
     for, or support of such spouse or child, in connection with a 
     separation agreement, divorce decree or other order of a 
     court of record, determination made in accordance with State 
     or territorial law by a governmental unit, or property 
     settlement agreement, but not to the extent that such debt--
       ``(A) is assigned to another entity, voluntarily, by 
     operation of law, or otherwise; or
       ``(B) includes a liability designated as alimony, 
     maintenance, or support, unless such liability is actually in 
     the nature of alimony, maintenance or support.''.
       (2) Technical amendments.--Title 11, United States Code, is 
     amended--
       (A) in section 502(i) by striking ``507(a)(7)'' and 
     inserting ``507(a)(8)'';
       (B) in section 503(b)(1)(B)(i) by striking ``507(a)(7)'' 
     and inserting ``507(a)(8)'';
       (C) in section 523(a)(1)(A) by striking ``507(a)(7)'' and 
     inserting ``507(a)(8)'';
       (D) in section 724(b)(2) by striking ``or 507(a)(6)'' and 
     inserting ``507(a)(6), or 507(a)(7)'';
       (E) in section 726(b) by striking ``or (7)'' and inserting 
     ``, (7), or (8)'';
       (F) in section 1123(a)(1) by striking ``507(a)(7)'' and 
     inserting ``507(a)(8)''; and
       (G) in section 1129(a)(9)--
       (i) in subparagraph (B) by striking ``or 507(a)(6)'' and 
     inserting ``, 507(a)(6), or 507(a)(7)''; and
       (ii) in subparagraph (C) by striking ``507(a)(7)'' and 
     inserting ``507(a)(8)''.
       (c) Protection of Liens.--Section 522(f)(1) of title 11, 
     United States Code, is amended to read as follows:
       ``(1) a judicial lien (other than a judicial lien that 
     secures a debt to a spouse, former spouse, or child of the 
     debtor, for alimony to, maintenance for, or support of the 
     spouse or child, in connection with a separation agreement, 
     divorce decree or other order of a court of record, 
     determination made in accordance with State or territorial 
     law by a governmental unit, or property settlement agreement, 
     to the extent that the debt--
       ``(A) is not assigned to another entity, voluntarily, by 
     operation of law, or otherwise; and
       ``(B) includes a liability designated as alimony, 
     maintenance, or support, unless such liability is actually in 
     the nature of alimony, maintenance or support).''.
       (d) Protection Against Trustee Avoidance.--Section 547(c) 
     of title 11, United States Code, is amended--
       (1) by striking ``or'' at the end of paragraph (6);
       (2) by redesignating paragraph (7) as paragraph (8); and
       (3) by inserting after paragraph (6) the following new 
     paragraph:
       ``(7) to the extent that the transfer was a bona fide 
     payment of a debt to a spouse, former spouse, or child of the 
     debtor, for alimony to, maintenance for, or support of such 
     spouse or child, in connection with a separation agreement, 
     divorce decree or other order of a court of record, 
     determination made in accordance with State or territorial 
     law by a governmental unit, or property settlement agreement, 
     but not to the extent that such debt--
       ``(A) is assigned to another entity, voluntarily, by 
     operation of law, or otherwise; or
       ``(B) includes a liability designated as alimony, 
     maintenance, or support, unless such liability is actually in 
     the nature of alimony, maintenance or support; or''.
       (e) Appearance Before Court.--A child support creditor or 
     its representative shall be permitted to appear and intervene 
     without charge and without meeting any special local court 
     rule requirement for attorney appearances in any bankruptcy 
     proceeding in any bankruptcy court or district court of the 
     United States if the creditor or representative files with 
     the court a statement describing in detail the child support 
     debt, its status, and other characteristics.

     SEC. 304. BANKRUPTCY PETITION PREPARERS.

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

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

       ``(a) Definition.--In this section--
       ```bankruptcy petition preparer' means a person, other than 
     an attorney or an employee of an attorney, who prepares for 
     compensation a document for filing.
       ```document for filing' means a petition or any other 
     document prepared for filing by a debtor in a United States 
     bankruptcy court or a United States district court in 
     connection with a case under this title.
       ``(b) Signing of Documents.--(1) A bankruptcy petition 
     preparer who prepares a document for filing shall sign the 
     document and print on the document the preparer's name and 
     address.
       ``(2) A bankruptcy petition preparer who fails to comply 
     with paragraph (1) may be fined not more than $500 for each 
     such failure unless the failure is due to reasonable cause.
       ``(c) Furnishing of Identifying Number.--(1) A bankruptcy 
     petition preparer who prepares a document for filing shall 
     place on the document, after the preparer's signature, an 
     identifying number that identifies the individuals who 
     prepared the document.
       ``(2) For purposes of this section, the identifying number 
     of a bankruptcy petition preparer shall be the Social 
     Security account number of each individual who prepared the 
     document or assisted in its preparation.
       ``(3) A bankruptcy petition preparer who fails to comply 
     with paragraph (1) may be fined not more than $500 for each 
     such failure unless the failure is due to reasonable cause.
       ``(d) Furnishing of Copy to the Debtor.--(1) A bankruptcy 
     petition preparer shall, not later than the time at which a 
     document for filing is presented for the debtor's signature, 
     furnish to the debtor a copy of the document.
       ``(2) A bankruptcy petition preparer who fails to comply 
     with paragraph (1) may be fined not more than $500 for each 
     such failure unless the failure is due to reasonable cause.
       ``(e) 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 $5000 and shall forfeit the 
     person's office, which shall thereupon become vacant.''; and
       (B) by adding at the end the following new section:

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

       ``(a) Definitions.--In this section--
       ```bankruptcy petition preparer' means a person, other than 
     an attorney or an employee of an attorney, who prepares for 
     compensation a document for filing.
       ```document for filing' means a petition or any other 
     document prepared for filing by a debtor in a United States 
     bankruptcy court or a United States district court in 
     connection with a case under this title.
       ``(b) Offense.--If a bankruptcy case or related proceeding 
     is dismissed because of a willful attempt by a bankruptcy 
     petition preparer in any manner to disregard the requirements 
     of title 11, United States Code, or the Bankruptcy Rules, the 
     bankruptcy petition preparer shall be fined $5,000.''.
       (2) Technical amendments.--The chapter analysis for chapter 
     9 of title 18, United States Code, is amended--
       (A) by amending the item relating to section 153 to read as 
     follows:

``Sec. 153. Embezzlement against estate.'';

     and
       (B) by adding at the end the following new item:

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

     SEC. 305. CONVERSION OR DISMISSAL.

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

     SEC. 306. CONTENTS OF PLAN.

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

     SEC. 307. STAY OF ACTION AGAINST CODEBTOR.

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

     SEC. 308. EXEMPTION FOR HOUSEHOLD GOODS.

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

     SEC. 309. PROFESSIONAL FEES.

       Section 330(a) of title 11, United States Code, is amended 
     to read as follows:
       ``(a)(1) After notice to the parties in interest and the 
     United States trustee and a hearing, and subject to sections 
     326, 328, and 329, the court may award to a trustee, an 
     examiner, a professional person employed under section 327 or 
     1103, or the debtor's attorney, after considering comments 
     and objections submitted by the United States Trustee in 
     conformance with guidelines adopted by the Executive Office 
     for United States Trustees pursuant to section 586(a)(3)(A) 
     of title 28--
       ``(A) reasonable compensation for actual, necessary 
     services rendered by the trustee, examiner, professional 
     person, or attorney and by any paraprofessional person 
     employed by any such person; and
       ``(B) reimbursement for actual, necessary expenses.
       ``(2)(A) In determining an amount of reasonable 
     compensation to be awarded under paragraph (1)(A), the 
     court--
       ``(i) may, on its motion or on the motion of the United 
     States trustee or any party in interest, award compensation 
     that is less than the amount of compensation that is 
     requested; and
       ``(ii) shall consider the nature, the extent, and the value 
     of such services, taking into account all relevant factors, 
     including--
       ``(I) the time spent on such services;
       ``(II) the rates charged for such services;
       ``(III) whether the services were necessary in the 
     administration of or beneficial toward the completion of a 
     case under this title; and
       ``(IV) the total value of the estate and the amount of 
     funds or other property available for distribution to all 
     creditors both secured and unsecured.
       ``(B) In calculating compensation for services for the 
     purpose of subparagraph (A)(ii), the court shall consider--
       ``(i) whether tasks were performed within a reasonable 
     amount of time commensurate with the complexity, importance 
     and nature of the problem, issue or task addressed; and
       ``(ii) whether the compensation is reasonable based on the 
     customary compensation charged by comparably skilled 
     practitioners in nonbankruptcy cases.
       ``(3)(A) Subject to subparagraph (B), the court shall not 
     allow compensation for duplication of services or for 
     services that are not either reasonably likely to benefit the 
     debtor's estate or necessary in the administration of the 
     case.
       ``(B) In a case in which the debtor is an individual, the 
     court shall allow reasonable compensation for services by the 
     debtor's attorney representing the interests of the debtor 
     without regard to the benefit of such services to the estate.
       ``(4)(A) The court shall take into account the amount and 
     timing of interim compensation, if any awarded and paid, in 
     awarding final compensation.
       ``(B) If interim compensation was awarded and paid in an 
     amount that exceeds the amount the court awards as final 
     compensation the court may order the return of the excess to 
     the trustee or other entity that paid it.
       ``(5) In determining the amount to be awarded for the 
     preparation of fee applications, the court shall recognize 
     the difference between the cost of professional services and 
     services for the preparation of fee applications. The costs 
     awarded for the preparation of fee applications shall be 
     reasonable and based on the level of skill required.''.

     SEC. 310. 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, the 
     amount necessary to cure a default under a plan, if any, 
     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, the amount 
     necessary to cure a default under a plan, if any, 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, the amount 
     necessary to cure a default under a plan, if any, 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.
                 TITLE IV--BANKRUPTCY REVIEW COMMISSION

     SEC. 401. SHORT TITLE.

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

     SEC. 402. ESTABLISHMENT.

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

     SEC. 403. DUTIES OF THE COMMISSION.

       The duties of the Commission are--
       (1) to investigate and study issues and problems relating 
     to title 11, United States Code (commonly known as the 
     ``Bankruptcy Code'');
       (2) to evaluate the advisability of proposals and current 
     arrangements with respect to such issues and problems;
       (3) to prepare and submit to the Congress, the Chief 
     Justice, and the President a report in accordance with 
     section 408; and
       (4) to solicit divergent views of all parties concerned 
     with the operation of the bankruptcy system.

     SEC. 404. MEMBERSHIP.

       (a) Number and Appointment.--The Commission shall be 
     composed of 9 members as follows:
       (1) Three members appointed by the President, 1 of whom 
     shall be designated as chairman by the President.
       (2) One member shall be appointed by the President pro 
     tempore of the Senate.
       (3) One member shall be appointed by the Minority Leader of 
     the Senate.
       (4) One member shall be appointed by the Speaker of the 
     House of Representatives.
       (5) One member shall be appointed by the Minority Leader of 
     the House of Representatives.
       (6) Two members appointed by the Chief Justice.
       (b) Term.--Members of the Commission shall be appointed for 
     the life of the Commission.
       (c) Quorum.--Five members of the Commission shall 
     constitute a quorum, but a lesser number may conduct 
     meetings.
       (d) Appointment Deadline.--The first appointments made 
     under subsection (a) shall be made within 60 days after the 
     date of enactment of this Act.
       (e) First Meeting.--The first meeting of the Commission 
     shall be called by the chairman and shall be held within 90 
     days after the date of enactment of this Act.
       (f) Vacancy.--A vacancy on the Commission resulting from 
     the death or resignation of a member shall not affect its 
     powers and shall be filled in the same manner in which the 
     original appointment was made.
       (g) Continuation of Membership.--If any member of the 
     Commission who was appointed to the Commission as a member of 
     Congress or as an officer or employee of a government leaves 
     that office, or if any member of the Commission who was not 
     appointed in such a capacity becomes an officer or employee 
     of a government, the member may continue as a member of the 
     Commission for not longer than the 90-day period beginning on 
     the date the member leaves that office or becomes such an 
     officer or employee, as the case may be.
       (h) Consultation Prior to Appointment.--Prior to the 
     appointment of members of the Commission, the President, the 
     President pro tempore of the Senate, the Speaker of the House 
     of Representatives, and the Chief Justice shall consult with 
     each other to ensure fair and equitable representation of 
     various points of view in the Commission and its staff.

     SEC. 405. COMPENSATION OF THE COMMISSION.

       (a) Pay.--
       (1) Nongovernment employees.--Each member of the Commission 
     who is not otherwise employed by the United States Government 
     shall be entitled to receive the daily equivalent of the 
     annual rate of basic pay payable for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which he or she is engaged in the actual performance of 
     duties as a member of the Commission.
       (2) Government employees.--A member of the Commission who 
     is an officer or employee of the United States Government 
     shall serve without additional compensation.
       (b) Travel.--Members of the Commission shall be reimbursed 
     for travel, subsistence, and other necessary expenses 
     incurred by them in the performance of their duties.

     SEC. 406. STAFF OF COMMISSION; EXPERTS AND CONSULTANTS.

       (a) Staff.--
       (1) Appointment.--The chairman of the Commission may, 
     without regard to the civil service laws and regulations, 
     appoint, and terminate an executive director and such other 
     personnel as are necessary to enable the Commission to 
     perform its duties. The employment of an executive director 
     shall be subject to confirmation by the Commission.
       (2) Compensation.--The chairman of the Commission may fix 
     the compensation of the executive director and other 
     personnel without regard to the provisions of chapter 51 and 
     subchapter II of chapter 53 of title 5, United States Code, 
     relating to classification of positions and General Schedule 
     pay rates, except that the rate of pay for the executive 
     director and other personnel may not exceed the rate payable 
     for level V of the Executive Schedule under section 5316 of 
     that title.
       (b) Experts and Consultants.--The Commission may procure 
     temporary and intermittent services of experts and 
     consultants under section 3109(b) of title 5, United States 
     Code.

     SEC. 407. POWERS OF THE COMMISSION.

       (a) Hearings and Meetings.--The Commission or, on 
     authorization of the Commission, a member of the Commission, 
     may hold such hearings, sit and act at such time and places, 
     take such testimony, and receive such evidence, as the 
     Commission considers appropriate. The Commission or a member 
     of the Commission may administer oaths or affirmations to 
     witnesses appearing before it.
       (b) Official Data.--The Commission may secure directly from 
     any Federal department, agency, or court information 
     necessary to enable it to carry out this title. Upon request 
     of the chairman of the Commission, the head of a Federal 
     department or agency or chief judge of a Federal court shall 
     furnish such information, consistent with law, to the 
     Commission.
       (c) Facilities and Support Services.--The Administrator of 
     General Services shall provide to the Commission on a 
     reimbursable basis such facilities and support services as 
     the Commission may request. Upon request of the Commission, 
     the head of a Federal department or agency may make any of 
     the facilities or services of the agency available to the 
     Commission to assist the Commission in carrying out its 
     duties under this title.
       (d) Expenditures and Contracts.--The Commission or, on 
     authorization of the Commission, a member of the Commission 
     may make expenditures and enter into contracts for the 
     procurement of such supplies, services, and property as the 
     Commission or member considers appropriate for the purposes 
     of carrying out the duties of the Commission. Such 
     expenditures and contracts may be made only to such extent or 
     in such amounts as are provided in appropriation Acts.
       (e) Mails.--The Commission may use the United States mails 
     in the same manner and under the same conditions as other 
     Federal departments and agencies of the United States.
       (f) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property.

     SEC. 408. REPORT.

       The Commission shall submit to the Congress, the Chief 
     Justice, and the President a report not later than 2 years 
     after the date of its first meeting. The report shall contain 
     a detailed statement of the findings and conclusions of the 
     Commission, together with its recommendations for such 
     legislative or administrative action as it considers 
     appropriate.

     SEC. 409. TERMINATION.

       The Commission shall cease to exist on the date that is 30 
     days after the date on which it submits its report under 
     section 408.

     SEC. 410. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated $1,500,000 to carry 
     out this title.
                     TITLE V--TECHNICAL CORRECTIONS

     SEC. 501. TITLE 11, UNITED STATES CODE.

       (a) Alphabetization and Elimination of Paragraph 
     Designations.--Section 101 of title 11, United States Code, 
     is amended to read as follows:

     ``Sec. 101. Definitions

       ``In this title--
       ```accountant' means an accountant authorized under 
     applicable law to practice public accounting, and includes 
     professional accounting association, corporation, or 
     partnership, if so authorized.
       ```affiliate' means--
       ``(A) an entity that directly or indirectly owns, controls, 
     or holds with power to vote, 20 percent or more of the 
     outstanding voting securities of the debtor, other than an 
     entity that holds such securities--
       ``(i) in a fiduciary or agency capacity without sole 
     discretionary power to vote such securities; or
       ``(ii) solely to secure a debt, if such entity has not in 
     fact exercised such power to vote;
       ``(B) a corporation 20 percent or more of whose outstanding 
     voting securities are directly or indirectly owned, 
     controlled, or held with power to vote, by the debtor, or by 
     an entity that directly or indirectly owns, controls, or 
     holds with power to vote, 20 percent or more of the 
     outstanding voting securities of the debtor, other than an 
     entity that holds such securities--
       ``(i) in a fiduciary or agency capacity without sole 
     discretionary power to vote such securities; or
       ``(ii) solely to secure a debt, if such entity has not in 
     fact exercised such power to vote;
       ``(C) a person whose business is operated under a lease or 
     operating agreement by a debtor, or person substantially all 
     of whose property is operated under an operating agreement 
     with the debtor; or
       ``(D) an entity that operates the business or substantially 
     all of the property of the debtor under a lease or operating 
     agreement.
       ```attorney' means an attorney, professional law 
     association, corporation, or partnership, authorized under 
     applicable law to practice law.
       ```claim' means--
       ``(A) a right to payment, whether or not such right is 
     reduced to judgment, liquidated, unliquidated, fixed, 
     contingent, matured, unmatured, disputed, undisputed, legal, 
     equitable, secured, or unsecured; or
       ``(B) a right to an equitable remedy for breach of 
     performance if such breach gives rise to a right to payment, 
     whether or not such right to an equitable remedy is reduced 
     to judgment, fixed, contingent, matured, unmatured, disputed, 
     undisputed, secured, or unsecured.
       ```commodity broker' means a futures commission merchant, 
     foreign futures commission merchant, clearing organization, 
     leverage transaction merchant, or commodity options dealer 
     (as defined in section 761) with respect to which there is a 
     customer (as defined in section 761).
       ```community claim' means a claim that arose before the 
     commencement of the case concerning the debtor for which 
     property of the kind specified in section 541(a)(2) is 
     liable, whether or not there is any such property at the time 
     of the commencement of the case.
       ```consumer debt' means debt incurred by an individual 
     primarily for a personal, family, or household purpose.
       ```corporation'--
       ``(A) includes--
       ``(i) an association having a power or privilege that a 
     private corporation, but not an individual or a partnership, 
     possesses;
       ``(ii) a partnership association organized under a law that 
     makes only the capital subscribed responsible for the debts 
     of such association;
       ``(iii) a joint-stock company;
       ``(iv) an unincorporated company or association; or
       ``(v) a business trust; but
       ``(B) does not include a limited partnership.
       ```creditor' means--
       ``(A) an entity that has a claim against the debtor that 
     arose at the time of or before the order for relief 
     concerning the debtor;
       ``(B) an entity that has a claim against the estate of a 
     kind specified in section 348(d), 502(f), 502(g), 502(h), or 
     502(i); or
       ``(C) an entity that has a community claim.
       ```custodian' means--
       ``(A) a receiver or trustee of any of the property of the 
     debtor, appointed in a case or proceeding not under this 
     title;
       ``(B) an assignee under a general assignment for the 
     benefit of the debtor's creditors; or
       ``(C) a trustee, receiver, or agent under applicable law, 
     or under a contract, that is appointed or authorized to take 
     charge of property of the debtor for the purpose of enforcing 
     a lien against such property, or for the purpose of general 
     administration of such property for the benefit of the 
     debtor's creditors.
       ```debt' means liability on a claim.
       ```debtor' means a person or municipality concerning which 
     a case under this title has been commenced.
       ```disinterested person' means a person that--
       ``(A) is not a creditor, an equity security holder, or an 
     insider;
       ``(B) is not and was not an investment banker for any 
     outstanding security of the debtor;
       ``(C) has not been, within 3 years before the date of the 
     filing of the petition, an investment banker for a security 
     of the debtor, or an attorney for such an investment banker 
     in connection with the offer, sale, or issuance of a security 
     of the debtor;
       ``(D) is not and was not, within 2 years before the date of 
     the filing of the petition, a director, officer, or employee 
     of the debtor or of an investment banker specified in 
     subparagraph (B) or (C); and
       ``(E) does not have an interest materially adverse to the 
     interest of the estate or of any class of creditors or equity 
     security holders, by reason of any direct or indirect 
     relationship to, connection with, or interest in, the debtor 
     or an investment banker specified in subparagraph (B) or (C), 
     or for any other reason.
       ```entity' includes a person, estate, trust, governmental 
     unit, and United States trustee.
       ```equity security' means--
       ``(A) a share in a corporation, whether or not transferable 
     or denominated `stock', or similar security;
       ``(B) an interest of a limited partner in a limited 
     partnership; or
       ``(C) a warrant or right, other than a right to convert, to 
     purchase, sell, or subscribe to a share, security, or 
     interest of a kind specified in subparagraph (A) or (B).
       ```equity security holder' means a holder of an equity 
     security of the debtor.
       ```family farmer' means--
       ``(A) an individual or individual and spouse engaged in a 
     farming operation whose aggregate debts do not exceed 
     $1,500,000 and not less than 80 percent of whose aggregate 
     noncontingent, liquidated debts (excluding a debt for the 
     principal residence of such individual or such individual and 
     spouse unless such debt arises out of a farming operation), 
     on the date the case is filed, arise out of a farming 
     operation owned or operated by such individual or such 
     individual and spouse, and such individual or such individual 
     and spouse receive from such farming operation more than 50 
     percent of such individual's or such individual and spouse's 
     gross income for the taxable year preceding the taxable year 
     in which the case concerning such individual or such 
     individual and spouse was filed; or
       ``(B) a corporation or partnership in which more than 50 
     percent of the outstanding stock or equity is held by one 
     family, or by one family and the relatives of the members of 
     such family, and such family or such relatives conduct the 
     farming operation--
       ``(i) more than 80 percent of the value of its assets 
     consists of assets related to the farming operation;
       ``(ii) its aggregate debts do not exceed $1,500,000 and not 
     less than 80 percent of its aggregate noncontingent, 
     liquidated debts (excluding a debt for one dwelling which is 
     owned by such corporation or partnership and which a 
     shareholder or partner maintains as a principal residence, 
     unless such debt arises out of a farming operation), on the 
     date the case is filed, arise out of the farming operation 
     owned or operated by such corporation or such partnership; 
     and
       ``(iii) if such corporation issues stock, such stock is not 
     publicly traded.
       ```family farmer with regular annual income' means a family 
     farmer whose annual income is sufficiently stable and regular 
     to enable such family farmer to make payments under a plan 
     under chapter 12.
       ```farmer' means (except when such term appears in the term 
     `family farmer') a person that received more than 80 percent 
     of such person's gross income during the taxable year of such 
     person immediately preceding the taxable year of such person 
     during which the case under this title concerning such person 
     was commenced from a farming operation owned or operated by 
     such person.
       ```farming operation' includes farming, tillage of the 
     soil, dairy farming, ranching, production or raising of 
     crops, poultry, or livestock, and production of poultry or 
     livestock products in an unmanufactured state.
       ```Federal depository institutions regulatory agency' 
     means--
       ``(A) with respect to an insured depository institution (as 
     defined in section 3(c)(2) of the Federal Deposit Insurance 
     Act (12 U.S.C. 1813(c)(2)) for which no conservator or 
     receiver has been appointed, the appropriate Federal banking 
     agency (as defined in section 3(q) of that Act);
       ``(B) with respect to an insured credit union (including an 
     insured credit union for which the National Credit Union 
     Administration has been appointed conservator or liquidating 
     agent), the National Credit Union Administration;
       ``(C) with respect to any insured depository institution 
     for which the Resolution Trust Corporation has been appointed 
     conservator or receiver, the Resolution Trust Corporation; 
     and
       ``(D) with respect to any insured depository institution 
     for which the Federal Deposit Insurance Corporation has been 
     appointed conservator or receiver, the Federal Deposit 
     Insurance Corporation.
       ```financial institution' means a person that is a 
     commercial or savings bank, industrial savings bank, savings 
     and loan association, or trust company and, when any such 
     person is acting as agent or custodian for a customer in 
     connection with a securities contract (as defined in section 
     741(a)), the customer.
       ```foreign proceeding' means a proceeding, whether judicial 
     or administrative and whether or not under bankruptcy law, in 
     a foreign country in which the debtor's domicile, residence, 
     principal place of business, or principal assets were located 
     at the commencement of such proceeding, for the purpose of 
     liquidating an estate, adjusting debts by composition, 
     extension, or discharge, or effecting a reorganization.
       ```foreign representative' means a duly selected trustee, 
     administrator, or other representative of an estate in a 
     foreign proceeding.
       ```forward contract' means a contract (other than a 
     commodity contract) for the purchase, sale, or transfer of a 
     commodity, as defined in section 761, or any similar good, 
     article, service, right, or interest which is presently or in 
     the future becomes the subject of dealing in the forward 
     contract trade, or product or byproduct thereof, with a 
     maturity date more than 2 days after the date the contract is 
     entered into, including, but not limited to, a repurchase 
     transaction, reverse repurchase transaction, consignment, 
     lease, swap, hedge transaction, deposit, loan, option, 
     allocated transaction, unallocated transaction, or any 
     combination thereof or option thereon.
       ```forward contract merchant' means a person whose business 
     consists in whole or in part of entering into forward 
     contracts as or with merchants in a commodity (as defined in 
     section 761) or any similar good, article, service, right, or 
     interest which is presently or in the future becomes the 
     subject of dealing in the forward contract trade.
       ```governmental unit' means--
       ``(A) the United States, a State, Commonwealth, or 
     Territory, the District of Columbia, a municipality, and a 
     foreign state;
       ``(B) a department, agency, or instrumentality of the 
     United States (but not a United States trustee while serving 
     as a trustee in a case under this title), a State, 
     Commonwealth, or Territory, the District of Columbia, a 
     municipality, a foreign state; or
       ``(C) any other foreign or domestic government.
       ```indenture' means a mortgage, deed of trust, or 
     indenture, under which there is outstanding a security, other 
     than a voting-trust certificate, constituting a claim against 
     the debtor, a claim secured by a lien on any of the debtor's 
     property, or an equity security of the debtor.
       ```indenture trustee' means a trustee under an indenture.
       ```individual with regular income' means an individual 
     whose income is sufficiently stable and regular to enable 
     such individual to make payments under a plan under chapter 
     13, other than a stockbroker or a commodity broker.
       ```insider' includes--
       ``(A) if the debtor is an individual--
       ``(i) a relative of the debtor or of a general partner of 
     the debtor;
       ``(ii) a partnership in which the debtor is a general 
     partner;
       ``(iii) a general partner of the debtor; or
       ``(iv) a corporation of which the debtor is a director, 
     officer, or person in control;
       ``(B) if the debtor is a corporation--
       ``(i) a director of the debtor;
       ``(ii) an officer of the debtor;
       ``(iii) a person in control of the debtor;
       ``(iv) a partnership in which the debtor is a general 
     partner;
       ``(v) a general partner of the debtor; or
       ``(vi) a relative of a general partner, director, officer, 
     or person in control of the debtor;
       ``(C) if the debtor is a partnership--
       ``(i) a general partner in the debtor;
       ``(ii) a relative of a general partner in, general partner 
     of, or person in control of the debtor;
       ``(iii) a partnership in which the debtor is a general 
     partner;
       ``(iv) a general partner of the debtor; or
       ``(v) a person in control of the debtor;
       ``(D) if the debtor is a municipality, an elected official 
     of the debtor or relative of an elected official of the 
     debtor;
       ``(E) an affiliate, or insider of an affiliate as if such 
     affiliate were the debtor; and
       ``(F) a managing agent of the debtor.
       ```insolvent' means--
       ``(A) with reference to an entity other than a partnership 
     and a municipality, being in a financial condition such that 
     the sum of the entity's debts is greater than all of the 
     entity's property, at a fair valuation, exclusive of--
       ``(i) property transferred, concealed, or removed with 
     intent to hinder, delay, or defraud such entity's creditors; 
     and
       ``(ii) property that may be exempted from property of the 
     estate under section 522;
       ``(B) with reference to a partnership, being in a financial 
     condition such that the sum of the partnership's debts is 
     greater than the aggregate of, at a fair valuation--
       ``(i) all of the partnership's property, exclusive of 
     property of the kind specified in subparagraph (A)(i); and
       ``(B) the sum of the excess of the value of each general 
     partner's nonpartnership property, exclusive of property of 
     the kind specified in subparagraph (A), over such partner's 
     nonpartnership debts; and
       ``(C) with reference to a municipality, being in a 
     financial condition such that the municipality is--
       ``(i) generally not paying its debts as they become due 
     unless such debts are the subject of a bona fide dispute; and
       ``(ii) unable to pay its debts as they become due.
       ```institution-affiliated party'--
       ``(A) with respect to an insured depository institution (as 
     defined in section 3(c)(2) of the Federal Deposit Insurance 
     Act) (12 U.S.C. 1813(c)(2)), has the meaning given it in 
     section 3(u) of the Federal Deposit Insurance Act (12 U.S.C. 
     1813(u)); and
       ``(2) with respect to an insured credit union, has the 
     meaning given it in section 206(r) of the Federal Credit 
     Union Act (12 U.S.C. 1786(r)).
       ```insured credit union' has the meaning given it in 
     section 101(7) of the Federal Credit Union Act (12 U.S.C. 
     1752(7)).
       ```insured depository institution'--
       ``(A) has the meaning given it in section 3(c)(2) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1813(c)(2)); and
       ``(B) includes an insured credit union (except as provided 
     in the definition of `Federal depository institutions 
     regulatory agency' and in subparagraph (B) of the definition 
     of `institution-affiliated party').
       ```intellectual property' means--
       ``(A) a trade secret;
       ``(B) an invention, process, design, or plant protected 
     under title 35;
       ``(C) a patent application;
       ``(D) a plant variety;
       ``(E) a work of authorship protected under title 17; and
       ``(F) a mask work protected under chapter 9 of title 17, to 
     the extent protected by applicable nonbankruptcy law.
       ```judicial lien' means a lien obtained by judgment, levy, 
     sequestration, or other legal or equitable process or 
     proceeding.
       ```lien' means a charge against or interest in property to 
     secure payment of a debt or performance of an obligation.
       ```margin payment', as used in sections 362(b)(6), 546 (e) 
     and (f), 548 (d)(2) (B) and (C), 556, 741(5), 761(15), 
     764(b), 766(a), and any other provision of this title in 
     relation to forward contracts, means a payment or deposit of 
     cash, a security, or other property that is commonly known in 
     the forward contract trade as original margin, initial 
     margin, maintenance margin, or variation margin, including 
     market-to-market payments or variation payments.
       ```mask work' has the meaning given it in section 901(a)(2) 
     of title 17.
       ```municipality' means a political subdivision or public 
     agency or instrumentality of a State.
       ```person' includes an individual, partnership, and 
     corporation, but does not include a governmental unit, except 
     that a governmental unit that acquires an asset from a person 
     as a result of operation of a loan guarantee agreement, or as 
     receiver or liquidating agent of a person, shall be 
     considered to be a person for purposes of section 1102.
       ```petition' means a petition filed under section 301, 302, 
     303, or 304 commencing a case under this title.
       ```purchaser' means a transferee of a voluntary transfer, 
     and includes an immediate or mediate transferee of such a 
     transferee.
       ```railroad' means a common carrier by railroad engaged in 
     the transportation of individuals or property or owner of 
     trackage facilities leased by such a common carrier.
       ```relative' means an individual related by affinity or 
     consanguinity within the third degree as determined by the 
     common law and an individual in a step or adoptive 
     relationship within such third degree.
       ```repo participant' means an entity that, on any day 
     during the period beginning 90 days before the date of the 
     filing of a petition, has an outstanding repurchase agreement 
     with the debtor.
       ```repurchase agreement' and `reverse repurchase agreement' 
     mean an agreement, including related terms, which provides 
     for the transfer of certificates of deposit, eligible 
     bankers' acceptances, or securities that are direct 
     obligations of, or that are fully guaranteed as to principal 
     and interest by, the United States or any agency of the 
     United States against the transfer of funds by the transferee 
     of such certificates of deposit, eligible bankers' 
     acceptances, or securities with a simultaneous agreement by 
     such transferee to transfer to the transferor thereof 
     certificates of deposit, eligible bankers' acceptances, or 
     securities as described above, at a date certain not later 
     than 1 year after such transfers or on demand, against the 
     transfer of funds.
       ```security'--
       ``(A) includes--
       ``(i) a note;
       ``(ii) stock;
       ``(iii) treasury stock;
       ``(iv) a bond;
       ``(v) a debenture;
       ``(vi) a collateral trust certificate;
       ``(vii) a preorganization certificate or subscription;
       ``(viii) a transferable share;
       ``(ix) a voting-trust certificate;
       ``(x) a certificate of deposit;
       ``(xi) a certificate of deposit for security;
       ``(xii) an investment contract or certificate of interest 
     or participation in a profit-sharing agreement or in an oil, 
     gas, or mineral royalty or lease, if such contract or 
     interest is required to be the subject of a registration 
     statement filed with the Securities and Exchange Commission 
     under the provisions of the Securities Act of 1933 (15 U.S.C. 
     77a et seq.), or is exempt under section 3(b) of that Act (15 
     U.S.C. 77c(b)) from the requirement to file such a statement;
       ``(xiii) an interest of a limited partner in a limited 
     partnership;
       ``(xiv) another claim or interest commonly known as a 
     `security'; and
       ``(xv) a certificate of interest or participation in, 
     temporary or interim certificate for, receipt for, or warrant 
     or right to subscribe to or purchase or sell, a security; but
       ``(B) does not include--
       ``(i) currency or a check, draft, bill of exchange, or bank 
     letter of credit;
       ``(ii) a leverage transaction (as defined in section 761);
       ``(iii) a commodity futures contract or forward contract;
       ``(iv) an option, warrant, or right to subscribe to or 
     purchase or sell a commodity futures contract;
       ``(v) an option to purchase or sell a commodity;
       ``(vi) a contract or certificate of a kind specified in 
     subparagraph (A)(xii) that is not required to be the subject 
     of a registration statement filed with the Securities and 
     Exchange Commission and is not exempt under section 3(b) of 
     the Securities Act of 1933 (15 U.S.C. 77c(b)) from the 
     requirement to file such a statement; or
       ``(vii) debt or an evidence of indebtedness for goods sold 
     and delivered or services rendered.
       ```security agreement' means an agreement that creates or 
     provides for a security interest.
       ```securities clearing agency' means a person that is 
     registered as a clearing agency under section 17A of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78q-1) or whose 
     business is confined to the performance of functions of a 
     clearing agency with respect to exempted securities (as 
     defined in section 3(a)(12) of that Act (15 U.S.C. 78c(12)) 
     for the purposes of that section 17A.
       ```security interest' means a lien created by an agreement.
       ```settlement payment' means, for purposes of the forward 
     contract provisions of this title, a preliminary settlement 
     payment, partial settlement payment, interim settlement 
     payment, settlement payment on account, final settlement 
     payment, net settlement payment, or any other similar payment 
     commonly used in the forward contract trade.
       ```State' includes the District of Columbia and Puerto 
     Rico, except for the purpose of defining who may be a debtor 
     under chapter 9.
       ```statutory lien' means a lien arising solely by force of 
     a statute on specified circumstances or conditions, or lien 
     of distress for rent, whether or not statutory, but does not 
     include a security interest or judicial lien, whether or not 
     such interest or lien is provided by or is dependent on a 
     statute and whether or not such interest or lien is made 
     fully effective by statute.
       ```stockbroker' means a person--
       ``(A) with respect to which there is a customer (as defined 
     in section 741); and
       ``(B) that is engaged in the business of effecting 
     transactions in securities--
       ``(i) for the account of others; or
       ``(ii) with members of the general public, from or for such 
     person's own account.
       ```swap agreement' means--
       ``(A) an agreement (including terms and conditions 
     incorporated by reference therein) which is a rate swap 
     agreement, basis swap, forward rate agreement, commodity 
     swap, interest rate option, forward foreign exchange 
     agreement, rate cap agreement, rate floor agreement, rate 
     collar agreement, currency swap agreement, cross-currency 
     rate swap agreement, currency option, or any other similar 
     agreement (including any option to enter into any of the 
     foregoing);
       ``(2) any combination of the foregoing; or
       ``(3) a master agreement for any of the foregoing together 
     with all supplements.
       ```swap participant' means an entity that, at any time 
     before the filing of a petition, has an outstanding swap 
     agreement with the debtor.
       ```timeshare interest' means an interest purchased in a 
     timeshare plan which grants the purchaser the right to use 
     and occupy accommodations, facilities, or recreational sites, 
     whether improved or unimproved, pursuant to a timeshare plan.
       ```timeshare plan' means an interest in any arrangement, 
     plan, scheme, or similar device (but not including an 
     exchange program), whether by membership, agreement, tenancy 
     in common, sale, lease, deed, rental agreement, license, 
     right to use agreement, or by any other means, whereby a 
     purchaser of the interest, in exchange for consideration, 
     receives a right to use accommodations, facilities, or 
     recreational sites, whether improved or unimproved, for a 
     specific period of time less than a full year during any 
     given year, but not necessarily for consecutive years, and 
     which extends for a period of more than 3 years.
       ```transfer' means a mode, direct or indirect, absolute or 
     conditional, voluntary or involuntary, of disposing of or 
     parting with property or with an interest in property, 
     including retention of title as a security interest and 
     foreclosure of the debtor's equity of redemption.
       ```United States', when used in a geographical sense, 
     includes all locations where the judicial jurisdiction of the 
     United States extends, including territories and possessions 
     of the United States.
       (b) References to Definitions in Title XI.--
       (1) Section 362.--Section 362(b) of title 11, United States 
     Code, is amended--
       (A) in paragraph (6)--
       (i) by striking ``section 761(4)'' and inserting ``section 
     761'';
       (ii) by striking ``section 741(7)'' and inserting ``section 
     741'';
       (iii) by striking ``section 101(34), 741(5), or 761(15)'' 
     and inserting ``section 101, 741, or 761''; and
       (iv) by striking ``section 101(35) or 741(8)'' and 
     inserting ``section 101 or 741''; and
       (B) in paragraph (7)--
       (i) by striking ``section 741(5) or 761(15)'' and inserting 
     ``section 741 or 761''; and
       (ii) by striking ``section 741(8)'' and inserting ``section 
     741''.
       (2) Section 507.--Section 507(a)(5) of title 11, United 
     States Code, is amended--
       (A) by striking ``section 557(b)(1)'' and inserting 
     ``section 557(b)''; and
       (B) by striking ``section 557(b)(2)'' and inserting 
     ``section 557(b)''.
       (3) Section 546 of title 11, United States Code, is 
     amended--
       (A) in subsection (e)--
       (i) by striking ``section 101(34), 741(5), or 761(15)'' and 
     inserting ``section 101, 741, or 761''; and
       (ii) by striking ``section 101(35) or 741(8)'' and 
     inserting ``section 101 or 741''; and
       (B) in subsection (f)--
       (i) by striking ``section 741(5) or 761(15)'' and inserting 
     ``section 741 or 761''; and
       (ii) by striking ``section 741(8)'' and inserting ``section 
     741''.
       (4) Section 548.--Section 548(d)(2) of title 11, United 
     States Code, is amended--
       (A) in subparagraph (B)--
       (i) by striking ``section 101(34), 741(5) or 761(15)'' and 
     inserting ``section 101, 741, or 761''; and
       (ii) by striking ``section 101(35) or 741(8)'' and 
     inserting ``section 101 or 741''; and
       (B) in subparagraph (C)--
       (i) by striking ``section 741(5) or 761(15)'' and inserting 
     ``section 741 or 761''; and
       (ii) by striking ``section 741(8)'' and inserting ``section 
     741''.
       (5) Section 555.--Section 555 of title 11, United States 
     Code, is amended by striking ``section 741(7)'' and inserting 
     ``section 741''.
       (6) Section 556.--Section 556 of title 11, United States 
     Code, is amended by striking ``section 761(4)'' and inserting 
     ``section 761''.
       (c) References to Definitions in Other Laws.--
       (1) Federal credit union act.--Section 207(c)(8)(D) of the 
     Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)) is 
     amended--
       (A) in clause (ii)(I) by striking ``section 741(7)'' and 
     inserting ``section 741'';
       (B) in clause (iii) by striking ``section 101(24)'' and 
     inserting ``section 101'';
       (C) in clause (iv)(I) by striking ``section 101(41)'' and 
     inserting ``section 101''; and
       (D) in clause (v) by striking ``section 101(50)'' and 
     inserting ``section 101''.
       (2) Federal deposit insurance act.--Section 11(e)(8)(D) of 
     the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)) 
     is amended--
       (A) in clause (ii)(I) by striking ``section 741(7)'' and 
     inserting ``section 741'';
       (B) in clause (iii) by striking ``section 761(4)'' and 
     inserting ``section 761'';
       (C) in clause (iv) by striking ``section 101(24)'' and 
     inserting ``section 101'';
       (D) in clause (v)(I) by striking ``section 101(41)'' and 
     inserting ``section 101''; and
       (E) in clause (viii) by striking ``section 101(50)'' and 
     inserting ``section 101''.
       (d) Other Technical Amendments.--Title 11 of the United 
     States Code is amended--
       (1) in section 322(a) by striking ``1302, or 1202'' and 
     inserting ``1202, or 1302'',
       (2) in section 346--
       (A) in subsection (a) by striking ``Internal Revenue Code 
     of 1954 (26 U.S.C. 1 et seq.)'' and inserting ``Internal 
     Revenue Code of 1986''; and
       (B) in subsection (g)(1)(C) by striking ``Internal Revenue 
     Code of 1954 (26 U.S.C. 371)'' and inserting ``Internal 
     Revenue Code of 1986'';
       (3) in section 348--
       (A) in subsection (b) by striking ``728(a), 728(b), 
     1102(a), 1110(a)(1), 1121(b), 1121(c), 1141(d)(4), 1146(a), 
     1146(b), 1301(a), 1305(a), 1201(a), 1221, and 1228(a)'' and 
     inserting ``728 (a) and (b), 1021, 1028, 1102(a), 1110(a)(1), 
     1121 (b) and (c), 1141(d)(4), 1146 (a) and (b), 1201(a), 
     1221, 1228(a), 1301(a), and 1305(a)''; and
       (B) in subsections (b), (c), (d), and (e) by striking 
     ``1307, or 1208'' each place it appears and inserting ``1208, 
     or 1307'';
       (4) in section 349(a) by striking ``109(f)'' and inserting 
     ``109(g)'';
       (5) in section 362(b)--
       (A) by striking ``or'' at the end of paragraph (10);
       (B) in paragraph (12) by striking ``the Ship Mortgage Act, 
     1920 (46 App. U.S.C. 911 et seq.)'' and inserting ``section 
     31325 of title 46, United States Code'';
       (C) in paragraph (13)--
       (i) by striking ``the Ship Mortgage Act, 1920 (46 App. 
     U.S.C. 911 et seq.)'' and inserting ``section 31325 of title 
     46, United States Code''; and
       (ii) by striking ``or'' at the end;
       (D) in paragraph (14), as added by section 102 of Public 
     Law 101-311 (104 Stat. 267) at the end of the subsection, by 
     removing it from the end of the subsection, inserting it 
     after paragraph (13), and striking the period at the end and 
     inserting a semicolon; and
       (E) by redesignating paragraphs (14), (15), and (16), as 
     added by section 3007(a) of the Student Loan Default 
     Prevention Initiative Act of 1990 (104 Stat. 1388-28), as 
     paragraphs (15), (16), and (17);
       (6) in section 363(c)(1) by striking ``1304, 1203, or 
     1204'' and inserting ``1203, 1204, or 1304'';
       (7) in section 364(a) by striking ``1304, 1203, or 1204'' 
     and inserting ``1203, 1204, or 1304'';
       (8) in section 365--
       (A) in subsection (g)(2) (A) and (B) by striking ``1307, or 
     1208'' each place it appears and inserting ``1208, or 1307'';
       (B) in subsection (n)(1)(B) by striking ``to to'' and 
     inserting ``to''; and
       (C) in subsection (o) by striking ``the Federal'' the first 
     place it appears and all that follows through ``successors,'' 
     and inserting ``a Federal depository institutions regulatory 
     agency (or predecessor to such an agency)'';
       (9) in section 507--
       (A) in subsection (a)(8) by striking ``the Federal'' the 
     first place it appears and all that follows through 
     ``successors,'' and inserting ``a Federal depository 
     institutions regulatory agency (or predecessor to such an 
     agency)''; and
       (B) in subsection (d) by striking ``(a)(3), (a)(4), (a)(5), 
     or (a)(6)'' and inserting ``(a) (3), (4), (6), or (7)'';
       (10) in section 522(d)(10)(E)(iii) by striking ``401(a), 
     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)(3) by striking the period at the end 
     of paragraph (3) and inserting ``; or'';
       (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) 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. 502. TITLE 28, UNITED STATES CODE.

       Section 586(a)(3) of title 28, United States Code, is 
     amended in the matter preceding subparagraph (A) by inserting 
     ``12,'' after ``11,''.
   TITLE VI--SEVERABILITY; EFFECTIVE DATE; APPLICATION OF AMENDMENTS

     SEC. 601. SEVERABILITY.

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

     SEC. 602. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

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

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