[Congressional Record Volume 140, Number 44 (Wednesday, April 20, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 20, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                          AMENDMENTS SUBMITTED

                                 ______


                   BANKRUPTCY AMENDMENTS ACT OF 1994

                                 ______


                 McCAIN (AND BURNS) AMENDMENT NO. 1632

  Mr. McCAIN (for himself and Mr. Burns) proposed an amendment to the 
bill (S. 540) to improve the administration of the bankruptcy system, 
address certain commercial issues in bankruptcy, and establish a 
commission to study and make recommendations on problems with the 
bankruptcy system, and for other purposes; as follows:

       At an appropriate place in the bill, add the following new 
     section:
       Sec.   . It is the sense of the Senate that--
       (1) the policy of providing reserved parking areas free of 
     charge to Members of Congress, other Government officials, 
     and diplomats at Washington National Airport and Dulles 
     International Airport should be ended; and
       (2) the Metropolitan Washington Airports Authority should 
     establish a parking policy for such areas that provides equal 
     access to the public, and does not provide preferential 
     parking privileges to Members of Congress, other Government 
     officials, and diplomats.
                                 ______


                 BROWN (AND OTHERS) AMENDMENT NO. 1633

  Mr. HEFLIN (for Mr. Brown for himself, Mr. Graham, and Mr. Campbell) 
proposed an amendment to the bill S. 540, supra; as follows:

       On page 211, after line 21 insert the following:

     SEC. 222. SUPPLEMENTAL INJUNCTIONS.

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


                      DECONCINI AMENDMENT NO. 1634

  Mr. DeCONCINI proposed an amendment to the bill S. 540, supra; as 
follows:

       On page 160, insert between lines 6 and 7 the following new 
     section:

     SEC. 116. ADDITIONAL TRUSTEE COMPENSATION.

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


                THURMOND (AND HELMS) AMENDMENT NO. 1635

  Mr. THURMOND (for himself and Mr. Helms) proposed an amendment to the 
bill S. 540, supra; as follows:

       On page 235, between lines 13 and 14 insert the following:

     SEC. 311. FAIRNESS TO CONDOMINIUM AND COOPERATIVE OWNERS.

       Section 523(a) of title 11, United States Code, as amended 
     by section 210, is amended--
       (1) by striking ``or'' at the end of paragraph (13);
       (2) by adding ``or'' at the end of paragraph (14); and
       (3) by adding at the end the following new paragraph:
       ``(15) for a fee that becomes due and payable after the 
     order for relief to a membership association with respect to 
     the debtor's interest in a dwelling unit that has condominium 
     ownership or in a share of a cooperative housing corporation, 
     if such fee is payable for a period during a substantial 
     portion of which--
       ``(A) the debtor physically occupied a dwelling unit in the 
     condominium or cooperative project; or
       ``(B) the debtor rented the dwelling unit to a tenant and 
     received payments from the tenant for such period,

     but nothing in this paragraph shall except from discharge the 
     debt of a debtor for a membership association fee for a 
     period arising before entry of the order for relief in a 
     pending or subsequent bankruptcy proceeding.''.
                                 ______


                  REID (AND OTHERS) AMENDMENT NO. 1636

  Mr. Reid (for himself, Mr. Akaka, Mr. Bryan, and Mr. Murkowski) 
proposed an amendment to the bill, S. 540, supra; as follows:

       At the appropriate place, insert:

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

       (a) In General.--Chapter 4 of title 4 of the United States 
     Code is amended by adding at the end thereof the following 
     new section:

     Sec. 114. Limitation on State income taxation of pension 
       income

       ``(a) No State may impose an income tax (as defined in 
     section 110(c)) on the qualified pension income of any 
     individual who is not a resident or domiciliary of such 
     State.
       ``(b)(1) For purposes of subsection (a), the term 
     `qualified pension income' means any payment from a qualified 
     made for--
       ``(A) which is part of a series of substantially equal 
     periodic payments (not less frequently than annually) made 
     for--
       ``(i) the life or life expectancy of the recipient or for 
     the joint lives or joint life expectancies of the recipient 
     and the recipient's designated beneficiary, or
       ``(ii) a period of not less than 10 years, or
       ``(B) which is not described in subparagraph (A) and 
     which--
       ``(i) is received in a taxable year for which an election 
     under this subsection is in effect, and
       ``(ii) is received on or after the date on which the 
     recipient has attained the age of 59\1/2\,

     except that the aggregate amount of payments to which this 
     subparagraph may apply for any taxable year shall not exceed 
     $25,000.
       ``(2) For purposes of paragraph (1), the term `qualified 
     plan' means--
       ``(A) an employees' trust described in section 401(a) of 
     the Internal Revenue Code of 1986 which is exempt from tax 
     under section 501(a) of such Code,
       ``(B) a simplified employee pension described in section 
     408(k) of such Code,
       ``(C) an annuity plan described in section 403(a) of such 
     Code,
       ``(D) an annuity contract described in section 403(b) of 
     such Code,
       ``(E) an individual retirement plan described in section 
     7701(a)(37) of such Code,
       ``(F) an eligible deferred compensation plan under section 
     457 of such Code, or
       ``(G) a governmental plan described in section 414(d) of 
     such Code, other than a plan established and maintained by a 
     State or political subdivision of a State, or an agency or 
     instrumentality of either.
       ``(3) For purposes of paragraph (1), any retired or 
     retainer pay of a member or former member of a uniform 
     service computer under chapter 71 of title 10, United States 
     Code, shall be treated as a payment from a qualified plan.
       ``(4)(A) An election under paragraph (1)(B), once made from 
     a taxable year, may not be made for any other taxable year.
       ``(B) In calendar years beginning after 1994, the $25,000 
     amount referred to in paragraph (1)(B) shall be increased by 
     an amount equal to such dollar amount, multiplied by the 
     cost-of-living adjustment determined under section 1(f)(3) of 
     such Code for such calendar year by substituting `calendar 
     year 1993' for `calendar year 1992' in subparagraph (b) 
     thereof.
       ``(c) For purposes of subsection (a), the term `State' 
     includes any political subdivision of a State, the District 
     of Columbia, and the possessions of the United States.''
       (b) Clerical Amendment.--The table of sections for such 
     chapter 4 is amended by adding at the end thereof the 
     following new item:

``114. Limitation on State income taxation of pension income.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______


                  REID (AND BROWN) AMENDMENT NO. 1637

  Mr. REID (for himself and Mr. Brown) proposed an amendment to the 
bill S. 540, supra; as follows:

       On page 160, between lines 6 and 7 insert the following:

     SEC. 116. LIMITATION ON FILING OF CHAPTER 13 BANKRUPTCY 
                   PETITIONS.

       Section 109, of title 11, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(h) Notwithstanding any other provision of the section, 
     no individual may be a debtor under chapter 13 who has been a 
     debtor in a case that was filed under that chapter at any 
     time in the preceding 3 years.''.
                                 ______


                       HEFLIN AMENDMENT NO. 1638

  Mr. HEFLIN proposed an amendment to the bill S. 540, supra; as 
follows:

       On page 144, strike lines 1 through 7.
       On page 144, line 8, strike ``1041'' and insert ``103''.
       On page 146, line 1, strike ``105'' and insert ``104''.
       On page 148, strike line 3 and all that follows through 
     page 149, line 9, and insert the following:
       ``(B) The judicial council of a circuit need not establish 
     a bankruptcy appellate panel service if the judicial council 
     finds that--
       ``(i) there are insufficient judicial resources available 
     in the circuit;
       ``(ii) establishment of such a service would result in 
     undue delay or increased cost to parties in cases under title 
     11; or
       ``(iii)(I) other factors of sound judicial administration 
     make the creation of such a service inappropriate; and
       ``(II) bankruptcy appeals are being heard and decided by 
     the district courts in a timely manner.
       ``(2)(A)(i) A judicial council may at any time reconsider 
     its decision to create or not to create a bankruptcy 
     appellate panel service.
       ``(ii) A decision on reconsideration under clause (i) shall 
     be submitted to the Judicial Conference of the United States 
     within 90 days after it is made.
       ``(B) If the judicial council of a circuit finds that a 
     circumstance described in paragraph (1)(B) (i), (ii), or 
     (iii) exists, the judicial council may provide for the 
     completion of the appeals then pending before a bankruptcy 
     appellate panel service and the orderly termination of the 
     service.
       On page 151, line 7, strike ``106'' and insert ``105''.
       On page 152, line 1, strike ``107'' and insert ``106''.
       On page 153, line 3, strike ``108'' and insert ``107''.
       On page 154, line 3, strike ``109'' and insert ``108''.
       On page 156, line 15, strike ``110'' and insert ``109''.
       On page 156, line 23, strike ``10th'' and insert ``15th''.
       On page 157, line 1, after ``(e)(2)'' insert ``(as it 
     applies to a cash tender offer)''.
       On page 157, line 5, strike ``111'' and insert ``110''.
       On page 157, line 23, strike ``112'' and insert ``111''.
       On page 158, strike lines 16 through 22 and insert the 
     following:

     SEC. 112. SERVICE OF PROCESS IN BANKRUPTCY PROCEEDINGS ON AN 
                   INSURED DEPOSITORY INSTITUTION.

       Rule 7004 of Bankruptcy Rules is amended--
       (1) in subsection (b) by striking ``In addition'' and 
     inserting ``Except as provided in subdivision (h), in 
     addition''; and
       (2) by adding at the end the following new subdivision:
       ``(h) Service of Process on an Insured Depository 
     Institution.--Notwithstanding any other provision of this 
     rule or any other rule or law, service on an insured 
     depository institution (as defined in section 3 of the 
     Federal Deposit Insurance Act (12 U.S.C. 1813)) shall be made 
     by certified mail addressed to an officer of the institution 
     unless--
       ``(1) the institution has appeared by its attorney, in 
     which case the attorney shall be served by first class mail;
       ``(2) the court orders otherwise after service upon the 
     institution by certified mail of notice of an application to 
     permit service on the institution by first class mail sent to 
     an officer of the institution designated by the institution; 
     or
       ``(3) the institution has waived in writing its entitlement 
     to service by certified mail by designating an officer to 
     receive service.''.
       On page 159, line 1, strike ``114'' and insert ``113''.
       On page 160, between lines 6 and 7 insert the following:

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

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

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

       Section 105 of title 11, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(d) A court may issue an injunction that requires claims 
     and demands to be presented for payment solely to a trust or 
     other vehicle that is established for the purpose of settling 
     such claims and demands and is approved by the court and 
     entered into pursuant to an order approving a plan of 
     reorganization.''.
       On page 160, strike line 9 and all that follows through 
     page 188, line 25, and insert the following:

     SEC. 201. SMALL BUSINESSES.

       (a) Definition.--Section 101 of title 11, United States 
     Code, as amended by section 501, is amended by inserting in 
     its proper alphabetical position the following new 
     definition:
       ```small business' means a person engaged in commercial or 
     business activities (but does not include a person whose 
     primary activity is the business of owning or operating real 
     property and activities incidental thereto) whose aggregate 
     liquidated secured and unsecured debts as of the date of the 
     petition do not exceed $2,500,000.''.
       (b) Creditors' Committees.--Section 1102(a) of title 11, 
     United States Code, is amended--
       (1) in paragraph (1) by striking ``As'' and inserting 
     ``Except as provided in paragraph (3), as''; and
       (2) by adding at the end the following new paragraph:
       ``(3) On request of a party in interest in a case in which 
     the debtor is a small business, the court may order that a 
     committee of creditors not be appointed.''.
       (c) Conversion or Dismissal.--Section 1112(b) of title 11, 
     United States Code, is amended by inserting ``or bankruptcy 
     administrator'' after ``United States trustee''.
       (d) Who May File a Plan.--Section 1121 of title 11, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(d) In a case in which the debtor is a small business--
       ``(A) only the debtor may file a plan until after 90 days 
     after the date of the order for relief under this chapter;
       ``(B) all plans for relief shall be filed within 150 days 
     after the date of the order for relief; and
       ``(C) on request of a party in interest made within the 
     respective periods specified in subparagraphs (A) and (B) and 
     after notice and a hearing, the court may--
       ``(i) reduce the 90-day period or the 150-day period 
     specified in subparagraph (A) or (B) for cause; and
       ``(ii) increase the 90-day period specified in subparagraph 
     (A) if the debtor shows that the need for an increase is 
     caused by circumstances for which the debtor should not be 
     held accountable.''.
       (e) Postpetition Disclosure.--Section 1125 of title 11, 
     United States Code, is amended by adding at the end the 
     following new subsection:
       ``(f) Notwithstanding subsection (b), in a case in which 
     the debtor is a small business--
       ``(1) the court may conditionally approve a disclosure 
     statement subject to final approval after notice and a 
     hearing;
       ``(2) acceptances and rejections of a plan may be solicited 
     based on a conditionally approved disclosure statement so 
     long as the debtor provides adequate information to each 
     holder of a claim or interest that is solicited, but a 
     conditionally approved disclosure statement shall be mailed 
     at least 10 days prior to the date of the hearing on 
     confirmation of the plan; and
       ``(3) a hearing on the disclosure statement may be combined 
     with a hearing on confirmation of a plan.''.
       On page 200, strike line 11 and all that follows through 
     page 201, line 3, and insert the following:
       ``(18) under subsection (a), of withholding of income from 
     a debtor's wages and collection of amounts withheld, pursuant 
     to statute or the debtor's agreement authorizing such 
     withholding and collection for the benefit of a qualified 
     employer plan (within the meaning of section 72(p)(4) of the 
     Internal Revenue Code of 1986), to the extent that the 
     amounts withheld and collected are used solely for payments 
     relating to a loan from the plan secured by the debtor's 
     nonforfeitable accrued benefit under the plan.''.
       On page 201, line 4, strike ``Subsection'' and insert 
     ``Section''.
       On page 201, strike lines 12 through 23 and insert the 
     following:
       ``(13) owed to a qualified employer plan (within the 
     meaning of section 72(p)(4) of the Internal Revenue Code of 
     1986) pursuant to a loan from the plan secured by the 
     debtor's nonforfeitable accrued benefit under the plan.''.
       On page 202, strike lines 1 through 16 and insert the 
     following:
       (c) Property of the Estate.--Section 541(b) of title 11, 
     United States Code, as amended by section 501(d)(12), is 
     amended in paragraph (1)--
       (1) by striking ``or'' at the end of subparagraph (C);
       (2) by striking the period at the end of subparagraph (D) 
     and inserting ``; or''; and
       (3) by adding at the end the following new subparagraph:
       ``(E) any nontransferable interest of the debtor in a 
     qualified employer plan (within the meaning of section 
     72(p)(4) of the Internal Revenue Code of 1986) to the extent 
     not otherwise excluded from the debtor's estate pursuant to 
     subsection (c)(2).''.
       On page 204, line 10, after ``Code,'' insert ``as amended 
     by section 207(b),''.
       On page 204, line 13, strike ``(11)'' and insert ``(12)''.
       On page 204, line 14, strike ``(12)'' and insert ``(13)''.
       On page 204, line 18, strike ``(13)'' and insert ``(14)''.
       On page 205, strike line 12 and all that follows through 
     page 206, line 12, and insert the following:

     SEC. 212. EXCEPTION TO DISCHARGE.

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

     SEC. 213. PROCEEDS OF MONEY ORDER AGREEMENTS.

       Section 541(b) of title 11, United States Code, as amended 
     by section 207(c), is amended in paragraph (1)--
       (1) by striking ``or'' at the end of subparagraph (D);
       (2) by striking the period at the end of subparagraph (E) 
     and inserting ``; or''; and
       (3) by adding at the end the following new subparagraph:
       ``(F) any interest in cash or cash equivalents that 
     constitute proceeds of a sale by the debtor of a money order 
     that is made--
       ``(i) on or after the date that is 14 days prior to the 
     date on which the petition is filed; and
       ``(ii) under an agreement with a money order issuer that 
     prohibits the commingling of such proceeds with property of 
     the debtor (notwithstanding that, contrary to the agreement, 
     the proceeds may have been commingled with property of the 
     debtor),
     unless the money order issuer had not taken action, prior to 
     the filing of the petition, to require compliance with the 
     prohibition.''.
       On page 207, line 14, strike ``subparagraphs (B) and (C)'' 
     and insert ``subparagraph (B)''.
       On page 211, after line 21, add the following:

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

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

     SEC. 223. CONTENTS OF PLAN.

       Section 1123(b) of title 11, United States Code, is 
     amended--
       (1) by striking ``and'' at the end of paragraph (4);
       (2) by redesignating paragraph (5) as paragraph (6); and
       (3) by inserting after paragraph (4) the following new 
     paragraph:
       ``(5) in a case in which the debtor is a small business, 
     modify the rights of holders of secured claims, other than a 
     claim secured only by a security interest in real property 
     that is the debtor's principal residence, or of holders of 
     unsecured claims, or leave unaffected the rights of holders 
     of any class of claims, but the plan may not modify a claim 
     pursuant to section 506 of a person holding a primary or a 
     junior security interest in real property or a manufactured 
     home (as defined in section 603(6) of the National 
     Manufactured Housing Construction and Safety Standards Act of 
     1974 (42 U.S.C. 5402(6)) that is the debtor's principal 
     residence, except that the plan may modify the claim of a 
     person holding such a junior security interest that was 
     undersecured at the time the interest attached to the extent 
     that the interest remains undersecured;''.
       On page 212, lines 12 and 13, strike ``judgment,'' and 
     insert ``judgment prior to consummation of a foreclosure 
     sale,''.
       On page 213, strike line 23 and all that follows through 
     page 214, line 3, and insert the following:
       (A) in paragraph (7) by striking ``(7) Seventh'' and 
     inserting ``(8) Eighth'';
       (B) in paragraph (8) by striking ``(8) Eighth'' and 
     inserting ``(9) Ninth''; and
       (C) by inserting after paragraph (6) the following new 
     paragraph:
       ``(7) Seventh, allowed claims for debts to a spouse,
       On page 215, line 7, strike ``and''.
       On page 213, line 3, before ``Section'' insert ``(a) In 
     General.--''.
       On page 213, between lines 5 and 6, insert the following:
       (b) Technical Amendment.--Section 3613(f) of title 18, 
     United States Code, is amended by striking ``No'' and 
     inserting ``Except as provided in section 1328(a)(3) of title 
     11, no''.
       On page 216, line 6, strike ``support).'' and insert 
     ``support); or''.
       On page 234, lines 12 and 13, strike ``the amount necessary 
     to cure a default under a plan, if any'' and insert ``if it 
     is proposed in a plan to cure a default, the amount necessary 
     to cure the default''.
       On page 234, lines 20 and 21, strike ``the amount necessary 
     to cure a default under a plan, if any'' and insert ``if it 
     is proposed in a plan to cure a default, the amount necessary 
     to cure the default''.
       On page 235, lines 5 and 6, strike ``the amount necessary 
     to cure a default under a plan, if any'' and insert ``if it 
     is proposed in a plan to cure a default, the amount necessary 
     to cure the default''.
       On page 272, line 24, strike ``(a)(8)'' and insert 
     ``(a)(9), as redesignated by section 303(b)(1)(B),''.
       On page 274, strike lines 8 and 9 and insert the following:
       (12) in section 541(b)--
       (A) by inserting ``(1)'' after ``(b)'' and redesignating 
     paragraphs (1), (2), (3), and (4) as subparagraphs (A), (B), 
     (C), and (D), respectively;
       (B) in subparagraph (D) of paragraph (1), as redesignated 
     by subparagraph (A), by redesignating subparagraphs (A) and 
     (B) as clauses (i) and (ii), respectively;
       (C) in subparagraph (C) of paragraph (1), as redesignated 
     by subparagraph (A), by striking ``institution or'' and 
     inserting ``institution; or''; and
       (D) in the matter following subparagraph (D) of paragraph 
     (1), as redesignated by subparagraph (A), by striking 
     ``Paragraph (4) shall not'' and inserting the following:
       ``(2) Paragraph (1)(D) shall not''.
       On page 275, line 18, after ``(12)'' insert ``by''.
                                 ______


                       COCHRAN AMENDMENT NO. 1639

  Mr. COCHRAN proposed an amendment to the bill S. 540, supra; as 
follows:

       At the end of title II add the following:

     SEC. 222. PRIORITY FOR INDEPENDENT SALES REPRESENTATIVES.

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

                          ____________________