[Congressional Record Volume 140, Number 45 (Thursday, April 21, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 21, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                   BANKRUPTCY AMENDMENTS ACT OF 1993

  The Senate continued with the consideration of the bill.
  Mr. MITCHELL. Madam President, just to repeat, so that there is no 
misunderstanding, the Senate will now proceed to vote on the bankruptcy 
reform bill by rollcall vote.
  Thereafter, pursuant to the agreement, the school-to-work conference 
report will be taken up and agreed to. Thereafter, the Head Start 
reauthorization bill will be taken up and agreed to this evening. The 
latter two will not require a recorded vote.
  The Senate will then go out of session, and will not be in session 
tomorrow; will return to session Monday; and will take up the 
interstate banking legislation at 3 p.m. on Monday. There will be no 
recorded votes on Monday. The Senate will then resume consideration of 
that bill with rollcall votes on Tuesday.
   The PRESIDING OFFICER. The question is on agreeing to the committee 
amendment in the nature of a substitute, as amended.
   The committee amendment in the nature of a substitute, as amended, 
was agreed to.
   The PRESIDING OFFICER. The question is on the engrossment and third 
reading of the bill.
   The bill was ordered to be engrossed for a third reading, and was 
read the third time.
  Under the previous order, the yeas and nays are ordered, and the 
clerk will call the roll.
  The bill clerk called the roll.
  Mr. FORD. I announce that the Senator from Oklahoma [Mr. Boren] and 
the Senator from Hawaii [Mr. Inouye] are necessarily absent.
  I further announce that the Senator from Maine [Mr. Riegle] is absent 
due to death in the family.
  I also announce that the Senator from Alabama [Mr. Shelby] is absent 
because of illness.
  Mr. DOLE. I announce that the Senator from Vermont [Mr. Jeffords] and 
the Senator from Wyoming [Mr. Simpson] are necessarily absent.
  I further announce that, if present and voting, the Senator from 
Wyoming [Mr. Simpson] would vote yea.
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
who desire to vote?
  The result was announced--yeas 94, nays 0, as follows:

                      [Rollcall Vote No. 96 Leg.]

                                YEAS--94

     Akaka
     Baucus
     Bennett
     Biden
     Bingaman
     Bond
     Boxer
     Bradley
     Breaux
     Brown
     Bryan
     Bumpers
     Burns
     Byrd
     Campbell
     Chafee
     Coats
     Cochran
     Cohen
     Conrad
     Coverdell
     Craig
     D'Amato
     Danforth
     Daschle
     DeConcini
     Dodd
     Dole
     Domenici
     Dorgan
     Durenberger
     Exon
     Faircloth
     Feingold
     Feinstein
     Ford
     Glenn
     Gorton
     Graham
     Gramm
     Grassley
     Gregg
     Harkin
     Hatch
     Hatfield
     Heflin
     Helms
     Hollings
     Hutchison
     Johnston
     Kassebaum
     Kempthorne
     Kennedy
     Kerrey
     Kerry
     Kohl
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lott
     Lugar
     Mack
     Mathews
     McCain
     McConnell
     Metzenbaum
     Mikulski
     Mitchell
     Moseley-Braun
     Moynihan
     Murkowski
     Murray
     Nickles
     Nunn
     Packwood
     Pell
     Pressler
     Pryor
     Reid
     Robb
     Rockefeller
     Roth
     Sarbanes
     Sasser
     Simon
     Smith
     Specter
     Stevens
     Thurmond
     Wallop
     Warner
     Wellstone
     Wofford

                             NOT VOTING--6

     Boren
     Inouye
     Jeffords
     Riegle
     Shelby
     Simpson
  So, the bill (S. 540), as amended, was passed.

                                 S. 540

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title Improvement.--This Act may be cited as the 
     ``Bankruptcy Amendments Act of 1994''.
       (b) Table of Contents.--The table of contents is as 
     follows:

Sec. 1. Short title; table of contents.

              TITLE I--IMPROVED BANKRUPTCY ADMINISTRATION

Sec. 101. Expedited hearing on automatic stay.
Sec. 102. Expedited filing of plans under chapter 11.
Sec. 103. Expedited procedure for reaffirmation of debts.
Sec. 104. Powers of bankruptcy courts.
Sec. 105. Participation by bankruptcy administrator at meetings of 
              creditors and equity security holders.
Sec. 106. Definition relating to eligibility to serve on chapter 11 
              committees.
Sec. 107. Increased incentive compensation for trustees.
Sec. 108. Dollar adjustments.
Sec. 109. Premerger notification.
Sec. 110. Allowance of creditor committee expenses.
Sec. 111. Judicial conference report.
Sec. 112. Service of process in bankruptcy proceedings on an insured 
              depository institution.
Sec. 113. Meetings of creditors and equity security holders.
Sec. 114. Tax assessment.
Sec. 115. Additional trustee compensation.
Sec. 116. Extension to certain judicial officials of life insurance 
              rules currently applicable to Federal judges.
Sec. 117. Settlement of claims and demands for payment.
Sec. 118. Recommendations of the judicial conference for the 
              appointment of bankruptcy judges.

               TITLE II--COMMERCIAL ISSUES IN BANKRUPTCY

Sec. 201. Small businesses.
Sec. 202. Single asset real estate.
Sec. 203. Aircraft equipment, vessels, and rolling stock equipment.
Sec. 204. Unexpired leases of personal property in chapter 11 cases.
Sec. 205. Protection of assignees of executory contracts and unexpired 
              leases approved by court order in cases reversed on 
              appeal.
Sec. 206. Protection of security interest in post-petition rents.
Sec. 207. Anti-alienation.
Sec. 208. Exemption.
Sec. 209. Indenture trustee compensation.
Sec. 210. Payment of taxes with borrowed funds.
Sec. 211. Return of goods.
Sec. 212. Exception to discharge.
Sec. 213. Proceeds of money order agreements.
Sec. 214. Limitation on liability of noninsider transferee for avoided 
              transfer.
Sec. 215. Perfection of purchase-money security interest.
Sec. 216. Airport gate leases.
Sec. 217. Trustee duties.
Sec. 218. Payments.
Sec. 219. Continued perfection.
Sec. 220. Notices to creditors.
Sec. 221. Supplemental injunctions.
Sec. 222. Rejection of unexpired leases of real property or timeshare 
              interests.
Sec. 223. Contents of plan.
Sec. 224. Priority for independent sales representatives.
Sec. 225. Amend Bankruptcy Code.

                 TITLE III--CONSUMER BANKRUPTCY ISSUES

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

                 TITLE IV--BANKRUPTCY REVIEW COMMISSION

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

                       TITLE V--BANKRUPTCY FRAUD

Sec. 501. Bankruptcy fraud.

                    TITLE VI--TECHNICAL CORRECTIONS

Sec. 601. Title 11, United States Code.
Sec. 602. Title 28, United States Code.

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

Sec. 701. Severability.
Sec. 702. Effective date; application of amendments.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

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

     SEC. 101. EXPEDITED HEARING ON AUTOMATIC STAY.

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

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

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

     SEC. 103. EXPEDITED PROCEDURE FOR REAFFIRMATION OF DEBTS.

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

     SEC. 104. POWERS OF BANKRUPTCY COURTS.

       (a) Status Conferences.--Section 105 of title 11, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(d) The court, on its own motion or on the motion of any 
     party in interest, may--
       ``(1) hold a status conference regarding any case or 
     proceeding under this title after notice to the parties in 
     interest; and
       ``(2) unless it would be inconsistent with another 
     provision of this title or with applicable Bankruptcy Rules, 
     issue an order at any such conference prescribing such 
     limitations and conditions as the court deems to be 
     appropriate to ensure that the case is handled expeditiously 
     and economically, including an order that--
       ``(A) sets the date by which the debtor must accept or 
     reject an executory contract or unexpired lease; or
       ``(B) in a case under chapter 11--
       ``(i) sets a date by which the debtor, or the trustee if 
     one has been appointed, shall file a disclosure statement and 
     plan;
       ``(ii) sets a date by which the debtor, or the trustee if 
     one has been appointed, shall solicit acceptances of a plan;
       ``(iii) sets the date by which a party in interest other 
     than a debtor may file a plan;
       ``(iv) fixes the notice to be provided regarding the 
     hearing on approval of the disclosure statement;
       ``(v) provides that the hearing on approval of the 
     disclosure statement may be combined with the hearing on 
     confirmation of the plan; and
       ``(vi) directs the use of standard-form disclosure 
     statements, plans, or other forms that have been adopted by 
     the court.''.
       (b) Establishment, Operation, and Termination of Bankruptcy 
     Appellate Panel Service.--Section 158(b) of title 28, United 
     States Code, is amended--
       (1) by striking paragraphs (3) and (4);
       (2) by redesignating paragraph (2) as paragraph (4);
       (3) by striking paragraph (1) and inserting the following 
     new paragraphs:
       ``(1)(A) Except as provided in subparagraph (B), the 
     judicial council of a circuit shall establish a bankruptcy 
     appellate panel service composed of bankruptcy judges of the 
     districts in the circuit who are appointed by the judicial 
     council in accordance with paragraph (3), to hear and 
     determine, with the consent of all parties to an appeal, 
     appeals under subsection (a).
       ``(B) The judicial council of a circuit need not establish 
     a bankruptcy appellate panel service if the judicial council 
     finds that--
       ``(i) there are insufficient judicial resources available 
     in the circuit;
       ``(ii) establishment of such a service would result in 
     undue delay or increased cost to parties in cases under title 
     11; or
       ``(iii)(I) other factors of sound judicial administration 
     make the creation of such a service inappropriate; and
       ``(II) bankruptcy appeals are being heard and decided by 
     the district courts in a timely manner.
       ``(2)(A)(i) A judicial council may at any time reconsider 
     its decision to create or not to create a bankruptcy 
     appellate panel service.
       ``(ii) A decision on reconsideration under clause (i) shall 
     be submitted to the Judicial Conference of the United States 
     within 90 days after it is made.
       ``(B) If the judicial council of a circuit finds that a 
     circumstance described in paragraph (1)(B) (i), (ii), or 
     (iii) exists, the judicial council may provide for the 
     completion of the appeals then pending before a bankruptcy 
     appellate panel service and the orderly termination of the 
     service.
       ``(3) Bankruptcy judges appointed under paragraph (1) shall 
     be appointed for a term of 2 years and may be reappointed 
     under that paragraph.''; and
       (4) by inserting after paragraph (4), as redesignated by 
     paragraph (2), the following new paragraphs:
       ``(5) An appeal to be heard under this subsection shall be 
     heard by a panel of 3 members of the bankruptcy appellate 
     panel service, except that a member of the service may not 
     hear an appeal originating in the district for which the 
     member is appointed or designated under section 152.
       ``(6) Appeals may not be heard under this subsection by a 
     panel of the bankruptcy appellate panel service unless the 
     district judges for the district in which the appeals occur, 
     by majority vote, have authorized the service to hear and 
     determine appeals originating in that district.''.
       (c) Appeals To Be Heard by Bankruptcy Appellate Panel 
     Service.--Section 158 of title 28, United States Code, is 
     amended--
       (1) in subsection (c) by striking ``(c) An appeal'' and 
     inserting the following:
       ``(c)(1) Subject to subsection (b), an appeal under 
     subsection (a) shall be heard by a 3-judge panel of the 
     bankruptcy appellate panel service established under 
     subsection (b)(1) unless--
       ``(A) the appellant elects, at the time of filing the 
     appeal; or
       ``(B) any other party elects, not later than 30 days after 
     service of notice of the appeal,
     to have the appeal heard by the district court.
       ``(2) An appeal''.
       (d) Rules of Procedure and Evidence; Method of 
     Prescribing.--Section 2073 of title 28, United States Code, 
     is amended--
       (1) in subsection (a)(2) by striking ``section 2072'' and 
     inserting ``sections 2072 and 2075''; and
       (2) in subsections (d) and (e) by inserting ``or 2075'' 
     after ``2072'' each place it appears.
       (f) Effective Date of Bankruptcy Rules.--The third 
     undesignated paragraph of section 2075 of title 28, United 
     States Code, is amended to read as follows:
       ``The Supreme Court shall transmit to Congress not later 
     than May 1 of the year in which a rule prescribed under this 
     section is to become effective a copy of the proposed rule. 
     The rule shall take effect no earlier than December 1 of the 
     year in which it is transmitted to Congress unless otherwise 
     provided by law.''.

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

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

     SEC. 106. DEFINITION RELATING TO ELIGIBILITY TO SERVE ON 
                   CHAPTER 11 COMMITTEES.

       The definition of ``person'' in section 101 of title 11, 
     United States Code, as amended by section 501(a), is amended 
     to read as follows:
       ```person' includes an individual, partnership, and 
     corporation, but does not include a governmental unit, except 
     that a governmental unit that--
       ``(A) acquires an asset from a person--
       ``(i) as a result of the operation of a loan guarantee 
     agreement; or
       ``(ii) as receiver or liquidating agent of a person;
       ``(B) is a guarantor of a pension benefit payable by or on 
     behalf of the debtor or an affiliate of the debtor; or
       ``(C) is the legal or beneficial owner of an asset of--
       ``(i) an employee pension benefit plan that is a 
     governmental plan, as defined in section 414(d) of the 
     Internal Revenue Code of 1986; or
       ``(ii) an eligible deferred compensation plan, as defined 
     in section 457(b) of the Internal Revenue Code of 1986,
     shall be considered, for purposes of section 1102, to be a 
     person with respect to such asset or such benefit.''.

     SEC. 107. INCREASED INCENTIVE COMPENSATION FOR TRUSTEES.

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

     SEC. 108. DOLLAR ADJUSTMENTS.

       (a) Who May Be a Debtor Under Chapter 13.--Section 109(e) 
     of title 11, United States Code, is amended--
       (1) by striking ``unsecured debts of less than $100,000 and 
     noncontingent, liquidated, secured debts of less than 
     $350,000'' and inserting ``debts of less than $1,000,000''; 
     and
       (2) by striking ``unsecured debts that aggregate less than 
     $100,000 and noncontingent, liquidated, secured debts of less 
     than $350,000'' and inserting ``debts in the aggregate of 
     less than $1,000,000''.
       (b) Involuntary Cases.--Section 303(b) of title 11, United 
     States Code, is amended--
       (1) in paragraph (1) by striking ``$5,000'' and inserting 
     ``$10,000''; and
       (2) in paragraph (2) by striking ``$5,000'' and inserting 
     ``$10,000''.
       (c) Priorities.--Section 507(a) of title 11, United States 
     Code, is amended--
       (1) in paragraph (3)(B) by striking ``$2,000'' and 
     inserting ``$4,000'';
       (2) in paragraph (4)(B)(i) by striking ``$2,000'' and 
     inserting ``$4,000'';
       (3) in paragraph (5) by striking ``$2,000'' and inserting 
     ``$4,000''; and
       (4) in paragraph (6)--
       (A) by striking ``, to the extent of $900 for each such 
     individual,''; and
       (B) by inserting ``, to the extent of $1,800 for each such 
     individual or, in the case of a deposit made jointly by 2 or 
     more individuals with respect to the same purchase, lease, or 
     rental, for each such group of individuals'' before the 
     period.
       (d) Exemptions.--Section 522(d) of title 11, United States 
     Code, is amended--
       (1) in paragraph (1) by striking ``$7,500'' and inserting 
     ``$15,000'';
       (2) in paragraph (2) by striking ``$1,200'' and inserting 
     ``$2,400'';
       (3) in paragraph (3)--
       (A) by striking ``$200'' and inserting ``$400''; and
       (B) by striking ``$4,000'' and inserting ``$8,000'';
       (4) in paragraph (4) by striking ``$500'' and inserting 
     ``$1,000'';
       (5) in paragraph (5)--
       (A) by striking ``$400'' and inserting ``$800''; and
       (B) by striking ``$3,750'' and inserting ``$7,500'';
       (6) in paragraph (6) by striking ``$750'' and inserting 
     ``$1,500'';
       (7) in paragraph (8) by striking ``$4,000'' and inserting 
     ``$8,000''; and
       (8) in paragraph (11)(D) by striking ``$7,500'' and 
     inserting ``$15,000''.
       (e) Appointment of Examiner in Certain Circumstances.--
     Section 1104(b)(2) of title 11, United States Code, is 
     amended by striking ``$5,000,000'' and inserting 
     ``$10,000,000''.

     SEC. 109. PREMERGER NOTIFICATION.

       Sections 363(b)(2) (A) and (B) of title 11, United States 
     Code, are amended to read as follows:
       ``(A) notwithstanding subsection (a) of that section, the 
     notification required to be given by the debtor shall be 
     given by the trustee; and
       ``(B) notwithstanding subsection (b) of that section, the 
     required waiting period shall end on the 15th day after the 
     date of receipt of the notification, unless the waiting 
     period is extended--
       ``(i) pursuant to subsection (e)(2) (as it applies to a 
     cash tender offer) or (g)(2) of that section; or
       ``(ii) by the court, after notice and a hearing.''.

     SEC. 110. ALLOWANCE OF CREDITOR COMMITTEE EXPENSES.

       Section 503(b) of title 11, United States Code, is 
     amended--
       (1) by striking ``and'' at the end of paragraph (5);
       (2) by striking the period at the end of paragraph (6) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(7) the actual, necessary expenses incurred by a member 
     of a committee appointed under section 1102 in the 
     performance of the duties of the committee (including fees of 
     an attorney or accountant for professional services rendered 
     for the member to the extent allowable under paragraph (4)), 
     other than claims for compensation for services rendered as a 
     member of the committee.''.

     SEC. 111. JUDICIAL CONFERENCE REPORT.

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

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

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

     SEC. 113. MEETINGS OF CREDITORS AND EQUITY SECURITY HOLDERS.

       Section 341 of title 11, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(d) Prior to the conclusion of the meeting of creditors 
     or equity security holders, the United States trustee shall 
     orally examine the debtor under oath and make recommendations 
     on a preserved record regarding the debtor's knowledge of--
       ``(1) the potential consequences of seeking a discharge in 
     bankruptcy, including the effects on credit history;
       ``(2) the debtor's ability to file a petition under a 
     different chapter of this title;
       ``(3) the effect of receiving a discharge of debts under 
     this title;
       ``(4) the effect of reaffirming a debt, including the 
     debtor's knowledge of the provisions of section 524(d);
       ``(5) the debtor's duties under section 521; and
       ``(6) the potential penalties and fines for committing 
     fraud or other abuses of this title.''.

     SEC. 114. TAX ASSESSMENT.

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

     SEC. 115. ADDITIONAL TRUSTEE COMPENSATION.

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

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

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

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

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

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

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

     SEC. 201. SMALL BUSINESSES.

       (a) Definition.--Section 101 of title 11, United States 
     Code, as amended by section 501, is amended by inserting in 
     its proper alphabetical position the following new 
     definition:
       `` `small business' means a person engaged in commercial or 
     business activities (but does not include a person whose 
     primary activity is the business of owning or operating real 
     property and activities incidental thereto) whose aggregate 
     liquidated secured and unsecured debts as of the date of the 
     petition do not exceed $2,500,000.''.
       (b) Creditors' Committees.--Section 1102(a) of title 11, 
     United States Code, is amended--
       (1) in paragraph (1) by striking ``As'' and inserting 
     ``Except as provided in paragraph (3), as''; and
       (2) by adding at the end the following new paragraph:
       ``(3) On request of a party in interest in a case in which 
     the debtor is a small business, the court may order that a 
     committee of creditors not be appointed.''.
       (c) Conversion or Dismissal.--Section 1112(b) of title 11, 
     United States Code, is amended by inserting ``or bankruptcy 
     administrator'' after ``United States trustee''.
       (d) Who May File a Plan.--Section 1121 of title 11, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(d) In a case in which the debtor is a small business--
       ``(A) only the debtor may file a plan until after 90 days 
     after the date of the order for relief under this chapter;
       ``(B) all plans for relief shall be filed within 150 days 
     after the date of the order for relief; and
       ``(C) on request of a party in interest made within the 
     respective periods specified in subparagraphs (A) and (B) and 
     after notice and a hearing, the court may--
       ``(i) reduce the 90-day period or the 150-day period 
     specified in subparagraph (A) or (B) for cause; and
       ``(ii) increase the 90-day period specified in subparagraph 
     (A) if the debtor shows that the need for an increase is 
     caused by circumstances for which the debtor should not be 
     held accountable.''.
       (e) Postpetition Disclosure.--Section 1125 of title 11, 
     United States Code, is amended by adding at the end the 
     following new subsection:
       ``(f) Notwithstanding subsection (b), in a case in which 
     the debtor is a small business--
       ``(1) the court may conditionally approve a disclosure 
     statement subject to final approval after notice and a 
     hearing;
       ``(2) acceptances and rejections of a plan may be solicited 
     based on a conditionally approved disclosure statement so 
     long as the debtor provides adequate information to each 
     holder of a claim or interest that is solicited, but a 
     conditionally approved disclosure statement shall be mailed 
     at least 10 days prior to the date of the hearing on 
     confirmation of the plan; and
       ``(3) a hearing on the disclosure statement may be combined 
     with a hearing on confirmation of a plan.''.

     SEC. 202. SINGLE ASSET REAL ESTATE.

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

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

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

     ``Sec. 1110. Aircraft equipment and vessels

       ``(a)(1) The right of a secured party with a security 
     interest in equipment described in paragraph (2) or of a 
     lessor or conditional vendor of such equipment to take 
     possession of such equipment in compliance with a security 
     agreement, lease, or conditional sale contract is not 
     affected by section 362, 363, or 1129 or by any power of the 
     court to enjoin the taking of possession unless--
       ``(A) before the date that is 60 days after the date of the 
     order for relief under this chapter, the trustee, subject to 
     the court's approval, agrees to perform all obligations of 
     the debtor that become due on or after the date of the order 
     under such security agreement, lease, or conditional sale 
     contract; and
       ``(B) any default, other than a default of a kind specified 
     in section 365(b)(2), under such security agreement, lease, 
     or conditional sale contract--
       ``(i) that occurs before the date of the order is cured 
     before the expiration of such 60-day period; and
       ``(ii) that occurs after the date of the order is cured 
     before the later of--
       ``(I) the date that is 30 days after the date of the 
     default; or
       ``(II) the expiration of such 60-day period.
       ``(2) Equipment is described in this paragraph if it is--
       ``(A) an aircraft, aircraft engine, propeller, appliance, 
     or spare part (as defined in section 101 of the Federal 
     Aviation Act of 1958 (49 U.S.C. App. 1301)) that is subject 
     to a security interest granted by, leased to, or 
     conditionally sold to a debtor that is an air carrier (as 
     defined in that section, except that for the purposes of this 
     section the term also includes an air carrier in intrastate 
     commerce); or
       ``(B) a documented vessel (as defined in section 30101(1) 
     of title 46, United States Code) that is subject to a 
     security interest granted by, leased to, or conditionally 
     sold to a debtor that is a water carrier that holds a 
     certificate of public convenience and necessity or permit 
     issued by the Interstate Commerce Commission.
       ``(3) Paragraph (1) applies to a secured party, lessor, or 
     conditional vendor acting in its own behalf or acting as 
     trustee or otherwise in behalf of another party.
       ``(b) The trustee and the secured party, lessor, or 
     conditional vendor whose right to take possession is 
     protected under subsection (a) may agree, subject to the 
     court's approval, to extend the 60-day period specified in 
     subsection (a)(1).
       ``(c) If the trustee makes an agreement of the kind 
     described in subsection (a)(1)(A) with respect to a security 
     agreement, lease, or conditional sale contract, any costs and 
     expenses incurred by the secured party, lessor, or 
     conditional vendor to remedy the failure of the trustee to 
     perform the obligations of the estate to maintain or return 
     equipment in accordance with the security agreement, lease, 
     or conditional sale contract constitute administrative 
     expenses under section 503(b)(1)(A).
       ``(d) With respect to equipment first placed in service on 
     or prior to the date of enactment of this subsection, for 
     purposes of this section--
       ``(1) the term `lease' includes any written agreement with 
     respect to which the lessor and the debtor, as lessee, have 
     expressed in the agreement or in a substantially 
     contemporaneous writing that the agreement is to be treated 
     as a lease for Federal income tax purposes; and
       ``(2) the term `security interest' means a purchase-money 
     equipment security interest.''.
       (b) Amendment of Section 1168.--Section 1168 of title 11, 
     United States Code, is amended to read as follows:

     ``Sec. 1168. Rolling stock equipment

       ``(a)(1) The right of a secured party with a security 
     interest in or of a lessor or conditional vendor of equipment 
     described in paragraph (2) to take possession of such 
     equipment in compliance with an equipment security agreement, 
     lease, or conditional sale contract is not affected by 
     section 362, 363, or 1129 or by any power of the court to 
     enjoin the taking of possession, unless--
       ``(A) before the date that is 60 days after the date of 
     commencement of a case under this chapter, the trustee, 
     subject to the court's approval, agrees to perform all 
     obligations of the debtor that become due on or after the 
     date of commencement of the case under such security 
     agreement, lease, or conditional sale contract; and
       ``(B) any default, other than a default of a kind described 
     in section 365(b)(2), under such security agreement, lease, 
     or conditional sale contract--
       ``(i) that occurs before the date of commencement of the 
     case and is an event of default therewith is cured before the 
     expiration of such 60-day period; and
       ``(ii) that occurs or becomes an event of default after the 
     date of commencement of the case is cured before the later 
     of--
       ``(I) the date that is 30 days after the date of the 
     default or event of default; or
       ``(II) the expiration of such 60-day period.
       ``(2) Equipment is described in this paragraph if it is 
     rolling stock equipment or accessories used on such 
     equipment, including superstructures and racks, that is 
     subject to a security interest granted by, leased to, or 
     conditionally sold to the debtor.
       ``(3) Paragraph (1) applies to a secured party, lessor, or 
     conditional vendor acting in its own behalf or acting as 
     trustee or otherwise in behalf of another party.
       ``(b) The trustee and the secured party, lessor, or 
     conditional vendor whose right to take possession is 
     protected under subsection (a) may agree, subject to the 
     court's approval, to extend the 60-day period specified in 
     subsection (a)(1).
       ``(c) If the trustee makes an agreement of the kind 
     described in subsection (a)(1)(A) with respect to a security 
     agreement, lease, or conditional sale contract, any costs and 
     expenses incurred by the secured party, lessor, or 
     conditional vendor to remedy the failure of the trustee to 
     perform the obligations of the estate to maintain or return 
     equipment in accordance with the security agreement, lease, 
     or conditional sale contract constitute administrative 
     expenses under section 503(b)(1)(A).
       ``(d) With respect to equipment first placed in service on 
     or prior to the date of enactment of this subsection, for 
     purposes of this section--
       ``(1) the term `lease' includes any written agreement with 
     respect to which the lessor and the debtor, as lessee, have 
     expressed in the agreement or in a substantially 
     contemporaneous writing that the agreement is to be treated 
     as a lease for Federal income tax purposes; and
       ``(2) the term `security interest' means a purchase-money 
     equipment security interest.''.
       (c) Application of Amendments.--
       (1) In general.--The amendment of sections 1110 and 1168 of 
     title 11, United States Code, made by subsections (a) and (b) 
     shall not apply to cases commenced under title 11, United 
     States Code, prior to the date of enactment of this Act.
       (2) Placement in service.--The amendment of section 1168(a) 
     of title 11, United States Code, made by subsection (b) shall 
     take effect with respect to equipment that is first placed in 
     service after the date of enactment of this Act, including 
     rolling stock equipment that is substantially rebuilt after 
     that date and accessories used on such equipment.

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

       Section 365(d)(3) of title 11, United States Code, is 
     amended in the first sentence by inserting after ``real 
     property'' the following: ``and, in a case under chapter 11, 
     under an unexpired lease of personal property''.

     SEC. 205. PROTECTION OF ASSIGNEES OF EXECUTORY CONTRACTS AND 
                   UNEXPIRED LEASES APPROVED BY COURT ORDER IN 
                   CASES REVERSED ON APPEAL.

       Section 365 of title 11, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(p)(1) Except as provided in paragraph (2), the reversal 
     or modification on appeal of an authorization under this 
     section of an assignment of an executory contract or 
     unexpired lease does not affect the validity of the 
     assignment to an entity that obtained the assignment in good 
     faith, whether or not the entity knew of the pendency of the 
     appeal, unless the authorization and the assignment were 
     stayed pending appeal.
       ``(2) This subsection does not apply to an executory 
     contract that is related to, or to an unexpired lease of real 
     property in, a shopping center.''.

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

       Postpetition Effect of Security Interest.--Section 552(b) 
     of title 11, United States Code, is amended--
       (1) by inserting ``(1)'' after ``(b)'';
       (2) by striking ``rents,'' each place it appears; and
       (3) by adding at the end the following new paragraph:
       ``(2)(A) Except as provided in sections 363, 506(c), 522, 
     544, 545, 547, and 548, if--
       ``(i) the debtor and an entity entered into a security 
     agreement that was duly recorded in the public records before 
     the commencement of the case; and
       ``(ii) the security interest created by the security 
     agreement extends to--
       ``(I) property of the debtor acquired before the 
     commencement of the case; and
       ``(II)(aa) to amounts paid as rents of such property; or
       ``(bb) to amounts paid for the use or occupancy of such 
     property (including fees, charges, accounts, or other 
     payments for the use or occupancy of rooms and other public 
     facilities in a property such as a hotel, motel, or other 
     lodging),
     the security interest extends to such amounts paid to the 
     estate as rents or as fees, charges, accounts, or other 
     payments after the commencement of the case to the extent 
     provided in the security agreement, whether or not the 
     security interest in such rents or such fees, charges, 
     accounts, or other payments is perfected under applicable 
     nonbankruptcy law, except to the extent that the court, after 
     notice and a hearing and based on the equities of the case, 
     orders otherwise.
       ``(B) If a security interest extends under subparagraph (A) 
     to rents acquired by the estate after the commencement of the 
     case, the security interest in such rents shall be deemed to 
     be perfected for the purpose of section 544(a).''.
       (b) Use Sale, or Lease of Property.--Section 363(a) of 
     title 11, United States Code, is amended by inserting: ``and 
     the fees, charges, accounts or other payments for the use or 
     occupancy of rooms and other public facilities in hotels, 
     motels, or other lodging properties'' after ``property''.

     SEC. 207. ANTI-ALIENATION.

       (a) Automatic Stay.--Section 362(b) of title 11, United 
     States Code, as amended by section 501(a), is amended--
       (1) by striking ``or'' at the end of paragraph (16);
       (2) by striking the period at the end of paragraph (17) and 
     inserting ``; or''; and
       (3) by adding at the end the following new paragraph:
       ``(18) under subsection (a), of withholding of income from 
     a debtor's wages and collection of amounts withheld, pursuant 
     to statute or the debtor's agreement authorizing such 
     withholding and collection for the benefit of a qualified 
     employer plan (within the meaning of section 72(p)(4) of the 
     Internal Revenue Code of 1986), to the extent that the 
     amounts withheld and collected are used solely for payments 
     relating to a loan from the plan secured by the debtor's 
     nonforfeitable accrued benefit under the plan.''.
       (b) Exceptions to Discharge.--Section 523(a) of title 11, 
     United States Code, is amended--
       (1) by striking ``or'' at the end of paragraph (11);
       (2) by striking the period at the end of paragraph (12) and 
     inserting ``; or''; and
       (3) by adding at the end the following new paragraph:
       ``(13) owed to a qualified employer plan (within the 
     meaning of section 72(p)(4) of the Internal Revenue Code of 
     1986) pursuant to a loan from the plan secured by the 
     debtor's nonforfeitable accrued benefit under the plan.''.
       (c) Property of the Estate.--Section 541(b) of title 11, 
     United States Code, as amended by section 501(d)(12), is 
     amended in paragraph (1)--
       (1) by striking ``or'' at the end of subparagraph (C);
       (2) by striking the period at the end of subparagraph (D) 
     and inserting ``; or''; and
       (3) by adding at the end the following new subparagraph:
       ``(E) any nontransferable interest of the debtor in a 
     qualified employer plan (within the meaning of section 
     72(p)(4) of the Internal Revenue Code of 1986) to the extent 
     not otherwise excluded from the debtor's estate pursuant to 
     subsection (c)(2).''.
       (d) Plan Contents.--Section 1322 of title 11, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(d) The plan may not materially alter the terms of a loan 
     described in section 362(b)(18).''.
       (e) Plan Confirmation.--Section 1325 of title 11, United 
     States Code, is amended--
       (1) in subsection (b)(2) by striking ``debtor and'' and 
     inserting ``debtor (not including income that is withheld 
     from the debtor's wages for the purposes stated in section 
     362(b)(18)) and''; and
       (2) in subsection (c) by striking ``income to'' and 
     inserting ``income (except income that is withheld from a 
     debtor's wages for the purposes stated in section 362(b)(18) 
     after confirmation of a plan) to''.

     SEC. 208. EXEMPTION.

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

     SEC. 209. INDENTURE TRUSTEE COMPENSATION.

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

     SEC. 210. PAYMENT OF TAXES WITH BORROWED FUNDS.

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

     SEC. 211. RETURN OF GOODS.

       (a) Limitation on Avoiding Powers.--Section 546 of title 
     11, United States Code, is amended by adding at the end the 
     following new subsection:
       ``(h) Notwithstanding the rights and powers of a trustee 
     under sections 544(a), 545, 547, 549, and 553, if the court 
     determines, after notice and a hearing, that a return is in 
     the best interests of the estate, the debtor, with the 
     consent of a creditor, may return goods shipped to the debtor 
     by the creditor before the commencement of the case, and the 
     creditor may offset the purchase price of such goods against 
     any claim of the creditor against the debtor that arose 
     before the commencement of the case.''.
       (b) Setoff.--Section 553(b)(1) is amended by inserting 
     ``546(h),'' after ``365(h)(2),''.

     SEC. 212. EXCEPTION TO DISCHARGE.

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

     SEC. 213. PROCEEDS OF MONEY ORDER AGREEMENTS.

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

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

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

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

       Section 547 of title 11, United States Code, is amended in 
     subsection (c)(3)(B) and subsection (e)(2) by striking ``10'' 
     and inserting ``20''.

     SEC. 216. AIRPORT GATE LEASES.

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

     SEC. 217. TRUSTEE DUTIES.

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

     SEC. 218. PAYMENTS.

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

     SEC. 219. CONTINUED PERFECTION.

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

     SEC. 220. NOTICES TO CREDITORS.

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

     SEC. 221. SUPPLEMENTAL INJUNCTIONS.

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

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

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

     SEC. 223. CONTENTS OF PLAN.

       Section 1123(b) of title 11, United States Code, is 
     amended--
       (1) by striking ``and'' at the end of paragraph (4);
       (2) by redesignating paragraph (5) as paragraph (6); and
       (3) by inserting after paragraph (4) the following new 
     paragraph:
       ``(5) in a case in which the debtor is a small business, 
     modify the rights of holders of secured claims, other than a 
     claim secured only by a security interest in real property 
     that is the debtor's principal residence, or of holders of 
     unsecured claims, or leave unaffected the rights of holders 
     of any class of claims, but the plan may not modify a claim 
     pursuant to section 506 of a person holding a primary or a 
     junior security interest in real property or a manufactured 
     home (as defined in section 603(6) of the National 
     Manufactured Housing Construction and Safety Standards Act of 
     1974 (42 U.S.C. 5402(6)) that is the debtor's principal 
     residence, except that the plan may modify the claim of a 
     person holding such a junior security interest that was 
     undersecured at the time the interest attached to the extent 
     that the interest remains undersecured;''.

     SEC. 224. PRIORITY FOR INDEPENDENT SALES REPRESENTATIVES.

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

     SEC. 225. AMEND BANKRUPTCY CODE.

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

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

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

     SEC. 302. NONDISCHARGEABILITY OF FINE UNDER CHAPTER 13.

       (a) In General.--Section 1328(a)(3) of title 11, United 
     States Code, is amended by inserting ``, or a fine to the 
     extent such fine exceeds $500, '' after ``restitution''.
       (b) Technical Amendment.--Section 3613(f) of title 18, 
     United States Code, is amended by striking ``No'' and 
     inserting ``Except as provided in section 1328(a)(3) of title 
     11, no''.

     SEC. 303. IMPAIRMENT OF EXEMPTIONS.

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

     SEC. 304. PROTECTION OF CHILD SUPPORT AND ALIMONY.

       (a) Relief From Automatic Stay.--Section 362(b)(2) of title 
     11, United States Code, is amended to read as follows:
       ``(2) under subsection (a) of this section--
       ``(A) of the commencement or continuation of an action or 
     proceeding for--
       ``(i) the establishment of paternity; or
       ``(ii) the establishment or modification of an order for 
     alimony, maintenance, or support; or
       ``(B) of the collection of alimony, maintenance, or support 
     from property that is not property of the estate;''.
       (b) Priority of Claims.--
       (1) Alimony or support.--Section 507(a) of title 11, United 
     States Code, is amended--
       (A) in paragraph (7) by striking ``(7) Seventh'' and 
     inserting ``(8) Eighth'';
       (B) in paragraph (8) by striking ``(8) Eighth'' and 
     inserting ``(9) Ninth''; and
       (C) by inserting after paragraph (6) the following new 
     paragraph:
       ``(7) Seventh, allowed claims for debts to a spouse, former 
     spouse, or child of the debtor, for alimony to, maintenance 
     for, or support of such spouse or child, in connection with a 
     separation agreement, divorce decree or other order of a 
     court of record, determination made in accordance with State 
     or territorial law by a governmental unit, or property 
     settlement agreement, but not to the extent that such debt--
       ``(A) is assigned to another entity, voluntarily, by 
     operation of law, or otherwise; or
       ``(B) includes a liability designated as alimony, 
     maintenance, or support, unless such liability is actually in 
     the nature of alimony, maintenance or support.''.
       (2) Technical amendments.--Title 11, United States Code, is 
     amended--
       (A) in section 502(i) by striking ``507(a)(7)'' and 
     inserting ``507(a)(8)'';
       (B) in section 503(b)(1)(B)(i) by striking ``507(a)(7)'' 
     and inserting ``507(a)(8)'';
       (C) in section 523(a)(1)(A) by striking ``507(a)(7)'' and 
     inserting ``507(a)(8)'';
       (D) in section 724(b)(2) by striking ``or 507(a)(6)'' and 
     inserting ``507(a)(6), or 507(a)(7)'';
       (E) in section 726(b) by striking ``or (7)'' and inserting 
     ``, (7), or (8)'';
       (F) in section 1123(a)(1) by striking ``507(a)(7)'' and 
     inserting ``507(a)(8)'';
       (G) in section 1129(a)(9)--
       (i) in subparagraph (B) by striking ``or 507(a)(6)'' and 
     inserting ``, 507(a)(6), or 507(a)(7)''; and
       (ii) in subparagraph (C) by striking ``507(a)(7)'' and 
     inserting ``507(a)(8)''.
       (c) Protection of Liens.--Section 522(f) of title 11, 
     United States Code, as amended by section 303, is amended by 
     amending paragraph (1)(A) to read as follows:
       ``(A) a judicial lien (other than a judicial lien that 
     secures a debt to a spouse, former spouse, or child of the 
     debtor, for alimony to, maintenance for, or support of the 
     spouse or child, in connection with a separation agreement, 
     divorce decree or other order of a court of record, 
     determination made in accordance with State or territorial 
     law by a governmental unit, or property settlement agreement, 
     to the extent that the debt--
       ``(i) is not assigned to another entity, voluntarily, by 
     operation of law, or otherwise; and
       ``(ii) includes a liability designated as alimony, 
     maintenance, or support, unless such liability is actually in 
     the nature of alimony, maintenance or support); or''.
       (d) Protection Against Trustee Avoidance.--Section 547(c) 
     of title 11, United States Code, is amended--
       (1) by striking ``or'' at the end of paragraph (6);
       (2) by redesignating paragraph (7) as paragraph (8); and
       (3) by inserting after paragraph (6) the following new 
     paragraph:
       ``(7) to the extent that the transfer was a bona fide 
     payment of a debt to a spouse, former spouse, or child of the 
     debtor, for alimony to, maintenance for, or support of such 
     spouse or child, in connection with a separation agreement, 
     divorce decree or other order of a court of record, 
     determination made in accordance with State or territorial 
     law by a governmental unit, or property settlement agreement, 
     but not to the extent that such debt--
       ``(A) is assigned to another entity, voluntarily, by 
     operation of law, or otherwise; or
       ``(B) includes a liability designated as alimony, 
     maintenance, or support, unless such liability is actually in 
     the nature of alimony, maintenance or support; or''.
       (e) Appearance Before Court.--A child support creditor or 
     its representative shall be permitted to appear and intervene 
     without charge and without meeting any special local court 
     rule requirement for attorney appearances in any bankruptcy 
     proceeding in any bankruptcy court or district court of the 
     United States if the creditor or representative files with 
     the court a statement describing in detail the child support 
     debt, its status, and other characteristics.

     SEC. 305. BANKRUPTCY PETITION PREPARERS.

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

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

       ``(a) Definition.--In this section--
       ```bankruptcy petition preparer' means a person, other than 
     an attorney or an employee of an attorney, who prepares for 
     compensation a document for filing.
       ```document for filing' means a petition or any other 
     document prepared for filing by a debtor in a United States 
     bankruptcy court or a United States district court in 
     connection with a case under this title.
       ``(b) Signing of Documents.--(1) A bankruptcy petition 
     preparer who prepares a document for filing shall sign the 
     document and print on the document the preparer's name and 
     address.
       ``(2) A bankruptcy petition preparer who fails to comply 
     with paragraph (1) may be fined not more than $500 for each 
     such failure unless the failure is due to reasonable cause.
       ``(c) Furnishing of Identifying Number.--(1) A bankruptcy 
     petition preparer who prepares a document for filing shall 
     place on the document, after the preparer's signature, an 
     identifying number that identifies the individuals who 
     prepared the document.
       ``(2) For purposes of this section, the identifying number 
     of a bankruptcy petition preparer shall be the Social 
     Security account number of each individual who prepared the 
     document or assisted in its preparation.
       ``(3) A bankruptcy petition preparer who fails to comply 
     with paragraph (1) may be fined not more than $500 for each 
     such failure unless the failure is due to reasonable cause.
       ``(d) Furnishing of Copy to the Debtor.--(1) A bankruptcy 
     petition preparer shall, not later than the time at which a 
     document for filing is presented for the debtor's signature, 
     furnish to the debtor a copy of the document.
       ``(2) A bankruptcy petition preparer who fails to comply 
     with paragraph (1) may be fined not more than $500 for each 
     such failure unless the failure is due to reasonable cause.
       ``(e) No Authorization To Execute Documents.--(1) A 
     bankruptcy petition preparer shall not execute any document 
     on behalf of a debtor.
       ``(2) A bankruptcy petition preparer may be fined not more 
     than $500 for each document executed in violation of 
     paragraph (1).
       ``(f) Advertising.--(1) A bankruptcy petition preparer 
     shall not use the word ``legal'' or any similar term in any 
     advertisements, or advertise under any category that includes 
     the word ``legal'' or any similar term.
       ``(2) A bankruptcy petition preparer shall be fined not 
     more than $500 for each violation of paragraph (1).
       ``(g) Court Fees.--(1) A bankruptcy petition preparer shall 
     not collect or receive any payment from the debtor or on 
     behalf of the debtor for the court fees in connection with 
     filing the petition.
       ``(2) A bankruptcy petition preparer shall be fined not 
     more than $500 for each violation of paragraph (1).
       ``(h) Fees for Services.--(1) Within 10 days after the date 
     of the filing of a petition, a bankruptcy petition preparer 
     shall file a declaration under penalty of perjury disclosing 
     any fee received from or on behalf of the debtor within 12 
     months immediately prior to the filing of the case, and any 
     unpaid fee charged to the debtor.
       ``(2) The court shall disallow and order the immediate 
     turnover to the bankruptcy trustee of any fee referred to in 
     paragraph (1) found to be in excess of the value of typing 
     services for the documents prepared. The debtor may exempt 
     any funds so recovered under section 522(b).
       ``(3) The debtor, the trustee, a creditor, or the United 
     States trustee may file a motion for an order under paragraph 
     (2).
       ``(4) A bankruptcy petition preparer shall be fined not 
     more than $500 for each failure to comply with a court order 
     to turn over funds within 30 days of service of such order.
       ``(i) Damages.--(1) If a bankruptcy case or related 
     proceeding is dismissed because of the failure to file 
     bankruptcy forms, the negligence or intentional disregard of 
     this title or the bankruptcy rules by a bankruptcy petition 
     preparer, or if a bankruptcy petition preparer violates this 
     section or commits any fraudulent, unfair, or deceptive act, 
     the bankruptcy court shall certify that fact to the district 
     court, and the district court, on motion of the debtor, the 
     trustee, or a creditor and after a hearing, shall order the 
     bankruptcy petition preparer to pay to the debtor--
       ``(A) the debtor's actual damages;
       ``(B) the greater of--
       ``(i) $2,000; or
       ``(ii) twice the amount paid by the debtor to the 
     bankruptcy petition preparer for the preparer's services; and
       ``(C) reasonable attorneys' fees and costs in moving for 
     damages under this subsection.
       ``(2) If the trustee or creditor moves for damages on 
     behalf of the debtor under this subsection, the bankruptcy 
     petition preparer shall be ordered to pay the movant the 
     additional amount of $1,000 plus reasonable attorneys' fees 
     and costs incurred.
       ``(j) Injunctive Relief.--
       ``(1) In general.--A debtor for whom a bankruptcy petition 
     preparer has prepared a document for filing, the trustee, a 
     creditor, or the United States trustee in the district in 
     which the bankruptcy petition preparer resides, has conducted 
     business, or the United States trustee in any other district 
     in which the debtor resides may bring a civil action to 
     enjoin a bankruptcy petition preparer from engaging in any 
     conduct in violation of this section or from further acting 
     as a bankruptcy petition preparer.
       ``(2) Conduct.--(A) In an action under paragraph (1), if 
     the court finds that--
       ``(i) a bankruptcy petition preparer has--
       ``(I) engaged in conduct in violation of this section or of 
     any provision of this title a violation of which subjects a 
     person to criminal penalty;
       ``(II) misrepresented the preparer's experience or 
     education as a bankruptcy petition preparer; or
       ``(III) engaged in any other fraudulent, unfair, or 
     deceptive conduct; and
       ``(ii) injunctive relief is appropriate to prevent the 
     recurrence of such conduct,
     the court may enjoin the bankruptcy petition preparer from 
     engaging in such conduct.
       ``(B) If the court finds that a bankruptcy petition 
     preparer has continually engaged in conduct described in 
     clause (i) (I), (II), or (III) and that an injunction 
     prohibiting such conduct would not be sufficient to prevent 
     such person's interference with the proper administration of 
     this title, or has not paid a penalty imposed under this 
     section, the court may enjoin the person from acting as a 
     bankruptcy petition preparer.
       ``(3) Attorney's fee.--The court shall award to a debtor, 
     trustee, or creditor that brings a successful action under 
     this subsection reasonable attorney's fees and costs of the 
     action, to be paid by the bankruptcy petition preparer.
       ``(k) Unauthorized Practice of Law.--Nothing in this 
     section shall be construed to permit activities that are 
     otherwise prohibited by law, including rules and laws that 
     prohibit the unauthorized practice of law.''.
       (2) Technical amendment.--The chapter analysis for chapter 
     1 of title 11, United States Code, is amended by adding at 
     the end the following new item:

``110. Penalty for persons who negligently or fraudulently prepare 
              bankruptcy petitions.''.
       (b) Amendment of Title 18, United States Code.--
       (1) Offenses.--Chapter 9 of title 18, United States Code, 
     is amended--
       (A) by amending sections 152, 153, and 154 to read as 
     follows:

     ``Sec. 152. Concealment of assets; false oaths and claims; 
       bribery

       ``A person who--
       ``(1) knowingly and fraudulently conceals from a custodian, 
     trustee, marshal, or other officer of the court charged with 
     the control or custody of property, or, in connection with a 
     case under title 11, from creditors or the United States 
     Trustee, any property belonging to the estate of a debtor;
       ``(2) knowingly and fraudulently makes a false oath or 
     account in or in relation to any case under title 11;
       ``(3) knowingly and fraudulently makes a false declaration, 
     certificate, verification, or statement under penalty of 
     perjury as permitted under section 1746 of title 28, in or in 
     relation to any case under title 11;
       ``(4) knowingly and fraudulently presents any false claim 
     for proof against the estate of a debtor, or uses any such 
     claim in any case under title 11, in a personal capacity or 
     as or through an agent, proxy, or attorney;
       ``(5) knowingly and fraudulently receives any material 
     amount of property from a debtor after the filing of a case 
     under title 11, with intent to defeat the provisions of title 
     11;
       ``(6) knowingly and fraudulently gives, offers, receives, 
     or attempts to obtain any money or property, remuneration, 
     compensation, reward, advantage, or promise thereof for 
     acting or forbearing to act in any case under title 11;
       ``(7) in a personal capacity or as an agent or officer of 
     any person or corporation, in contemplation of a case under 
     title 11 by or against the person or any other person or 
     corporation, or with intent to defeat the provisions of title 
     11, knowingly and fraudulently transfers or conceals any of 
     his property or the property of such other person or 
     corporation;
       ``(8) after the filing of a case under title 11 or in 
     contemplation thereof, knowingly and fraudulently conceals, 
     destroys, mutilates, falsifies, or makes a false entry in any 
     recorded information (including books, documents, records, 
     and papers) relating to the property or financial affairs of 
     a debtor; or
       ``(9) after the filing of a case under title 11, knowingly 
     and fraudulently withholds from a custodian, trustee, 
     marshal, or other officer of the court or a United States 
     Trustee entitled to its possession, any recorded information 
     (including books, documents, records, and papers) relating to 
     the property or financial affairs of a debtor,

     shall be fined not more than $5,000, imprisoned not more than 
     5 years, or both.

     ``Sec. 153. Embezzlement against estate

       ``(a) Offense.--A person described in subsection (b) who 
     knowingly and fraudulently appropriates to the person's own 
     use, embezzles, spends, or transfers any property or secretes 
     or destroys any document belonging to the estate of a debtor 
     shall be fined not more than $5,000, imprisoned not more than 
     5 years, or both.
       ``(b) Person to Whom Section Applies.--A person described 
     in this subsection is one who has access to property or 
     documents belonging to an estate by virtue of the person's 
     participation in the administration of the estate as a 
     trustee, custodian, marshal, attorney, or other officer of 
     the court or as an agent, employee, or other person engaged 
     by such an officer to perform a service with respect to the 
     estate.

     ``Sec. 154. Adverse interest and conduct of officers

       ``A person who, being a custodian, trustee, marshal, or 
     other officer of the court--
       ``(1) knowingly purchases, directly or indirectly, any 
     property of the estate of which the person is such an officer 
     in a case under title 11;
       ``(2) knowingly refuses to permit a reasonable opportunity 
     for the inspection by parties in interest of the documents 
     and accounts relating to the affairs of estates in the 
     person's charge by parties when directed by the court to do 
     so; or
       ``(3) knowingly refuses to permit a reasonable opportunity 
     for the inspection by the United States Trustee of the 
     documents and accounts relating to the affairs of states in 
     the person's charge,
     shall be fined not more than $5,000 and shall forfeit the 
     person's office, which shall thereupon become vacant.''; and
       (B) by adding at the end the following new section:

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

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

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

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

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

     SEC. 306. CONVERSION OR DISMISSAL.

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

     SEC. 307. CONTENTS OF PLAN.

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

     SEC. 308. STAY OF ACTION AGAINST CODEBTOR.

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

     SEC. 309. EXEMPTION FOR HOUSEHOLD GOODS.

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

     SEC. 310. PROFESSIONAL FEES.

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

     SEC. 311. INTEREST ON INTEREST.

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

     SEC. 312. FAIRNESS TO CONDOMINIUM AND COOPERATIVE OWNERS.

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

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

       (a) Amendment.--Section 522(f) of title 11, United States 
     Code, as amended by section 303(c), is amended--
       (1) by striking ``Notwithstanding any waiver of 
     exemptions,'' and inserting ``(1) Notwithstanding any waiver 
     of exemptions but subject to paragraph (2)'';
       (2) by striking ``(1) a judicial'' and inserting ``(A) a 
     judicial'';
       (3) by striking ``(A) is not assigned'' and inserting ``(i) 
     is not assigned'';
       (4) by striking ``(B) includes a liability'' and inserting 
     ``(ii) includes a liability'';
       (5) by striking ``(2) a nonpossessory'' and inserting ``(B) 
     a nonpossessory'';
       (6) by striking ``(A) household'' and inserting ``(i) 
     household'';
       (7) by striking ``(B) implements, professional books, or 
     tools,'' and inserting ``(ii) implements, professional books, 
     or tools''
       (8) by striking ``(C) professionally'' and inserting 
     ``(iii) professionally''; and
       (9) by adding at the end the following new paragraph:
       ``(2) In a case in which State law that is applicable to 
     the debtor--
       ``(A) permits a person to voluntarily waive a right to 
     claim exemptions under subsection (d) or prohibits a debtor 
     from claiming exemptions under subsection (d); and
       ``(B) permits the debtor to claim exemptions under State 
     law without limitation in amount, except to the extent that 
     the debtor has permitted the fixing of a consensual lien on 
     any property,

     the debtor may not avoid the fixing of a lien on an interest 
     of the debtor or a dependent of the debtor in property if the 
     lien is a nonpossessory, nonpurchase-money security interest 
     in implements, professional books, or tools of the trade of 
     the debtor or a dependent of the debtor or farm animals or 
     crops of the debtor or a dependent of the debtor.''.
       (b) Application of Amendment.--The amendments made by 
     subsection (a) shall not apply with respect to a case 
     commenced under title 11, United States Code, before the date 
     of enactment of this Act.

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

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

     SEC. 315. CONVERSION OF CASE UNDER CHAPTER 13.

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

     SEC. 316. RENT-TO-OWN CONTRACTS.

       (a) Definition.--Section 101 of title 11, United States 
     Code, is amended by inserting in their proper alphabetical 
     positions the following new definitions:
       `` `consumer good' means an item of personal property (not 
     including a motor vehicle) acquired by an individual 
     primarily for a personal, family, or household purpose.''.
       `` `rent-to-own contract' means an agreement, in the form 
     of a terminable lease or bailment of a consumer good, between 
     a person regularly engaged in the business of making consumer 
     goods available to individuals and an individual, under 
     which--
       ``(A) the lessee or bailee--
       ``(i) has the right of possession and use of the consumer 
     good; and
       ``(ii) has the option to renew the agreement periodically 
     by making payments specified in the agreement; and
       ``(B) the lessor or bailor agrees, orally or in writing, to 
     transfer ownership of the consumer good to the lessee or 
     bailee upon the fulfillment of all obligations of the lessee 
     or bailee for the transfer under the agreement.''.
       (b) Treatment of Rent-To-Own Contracts as Secured Purchase 
     Contracts.--
       (1) Chapter 7.--Subchapter II of chapter 7 of title 11, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec.  729. Rent-to-own contracts

       ``In a proceeding under this chapter in which the debtor is 
     in possession of a consumer good under a rent-to-own 
     contract, the debtor and the lessor or bailor shall be 
     accorded the same rights and obligations with respect to the 
     consumer good, respectively, as they would be accorded if the 
     rent-to-own contract had been a purchase contract.''.
       (2) Chapter 13.--Subchapter I of chapter 13 of title 11, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec.  1308. Rent-to-own contracts

       ``In a proceeding under this chapter in which the debtor is 
     in possession of a consumer good under a rent-to-own 
     contract, the debtor and the lessor or bailor shall be 
     accorded the same rights and obligations with respect to the 
     consumer good, respectively, as they would be accorded if the 
     rent-to-own contract had been a purchase contract.''.
       (c) Technical Amendments.--
       (1) Chapter 7.--The chapter analysis for chapter 7 of title 
     11, United states Code, is amended by inserting after the 
     item for section 728 the following new item:

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

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

``1308. Rent-To-Own Contracts.''.
                 TITLE IV--BANKRUPTCY REVIEW COMMISSION

     SEC. 401. SHORT TITLE.

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

     SEC. 402. ESTABLISHMENT.

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

     SEC. 403. DUTIES OF THE COMMISSION.

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

     SEC. 404. MEMBERSHIP.

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

     SEC. 405. COMPENSATION OF THE COMMISSION.

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

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

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

     SEC. 407. POWERS OF THE COMMISSION.

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

     SEC. 408. REPORT.

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

     SEC. 409. TERMINATION.

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

     SEC. 410. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 501. BANKRUPTCY FRAUD.

       (a) In General.--
       (1) Offenses.--Chapter 9 of title 18, United States Code, 
     is amended--
       (A) by amending sections 152, 153, and 154 to read as 
     follows:

     ``Sec. 152. Concealment of assets; false oaths and claims; 
       bribery

       ``A person who--
       ``(1) knowingly and fraudulently conceals from a custodian, 
     trustee, marshal, or other officer of the court charged with 
     the control or custody of property, or, in connection with a 
     case under title 11, from creditors or the United States 
     Trustee, any property belonging to the estate of a debtor;
       ``(2) knowingly and fraudulently makes a false oath or 
     account in or in relation to any case under title 11;
       ``(3) knowingly and fraudulently makes a false declaration, 
     certificate, verification, or statement under penalty of 
     perjury as permitted under section 1746 of title 28, in or in 
     relation to any case under title 11;
       ``(4) knowingly and fraudulently presents any false claim 
     for proof against the estate of a debtor, or uses any such 
     claim in any case under title 11, in a personal capacity or 
     as or through an agent, proxy, or attorney;
       ``(5) knowingly and fraudulently receives any material 
     amount of property from a debtor after the filing of a case 
     under title 11, with intent to defeat the provisions of title 
     11;
       ``(6) knowingly and fraudulently gives, offers, receives, 
     or attempts to obtain any money or property, remuneration, 
     compensation, reward, advantage, or promise thereof for 
     acting or forbearing to act in any case under title 11;
       ``(7) in a personal capacity or as an agent or officer of 
     any person or corporation, in contemplation of a case under 
     title 11 by or against the person or any other person or 
     corporation, or with intent to defeat the provisions of title 
     11, knowingly and fraudulently transfers or conceals any of 
     his property or the property of such other person or 
     corporation;
       ``(8) after the filing of a case under title 11 or in 
     contemplation thereof, knowingly and fraudulently conceals, 
     destroys, mutilates, falsifies, or makes a false entry in any 
     recorded information (including books, documents, records, 
     and papers) relating to the property or financial affairs of 
     a debtor; or
       ``(9) after the filing of a case under title 11, knowingly 
     and fraudulently withholds from a custodian, trustee, 
     marshal, or other officer of the court or a United States 
     Trustee entitled to its possession, any recorded information 
     (including books, documents, records, and papers) relating to 
     the property or financial affairs of a debtor,
     shall be fined not more than $5,000, imprisoned not more than 
     5 years, or both.

     ``Sec. 153. Embezzlement against estate

       ``(a) Offense.--A person described in subsection (b) who 
     knowingly and fraudulently appropriates to the person's own 
     use, embezzles, spends, or transfers any property or secretes 
     or destroys any document belonging to the estate of a debtor 
     shall be fined not more than $5,000, imprisoned not more than 
     5 years, or both.
       ``(b) Person to Whom Section Applies.--A person described 
     in this subsection is one who has access to property or 
     documents belonging to an estate by virtue of the person's 
     participation in the administration of the estate as a 
     trustee, custodian, marshal, attorney, or other officer of 
     the court or as an agent, employee, or other person engaged 
     by such an officer to perform a service with respect to the 
     estate.

     ``Sec. 154. Adverse interest and conduct of officers

       ``A person who, being a custodian, trustee, marshal, or 
     other officer of the court--
       ``(1) knowingly purchases, directly or indirectly, any 
     property of the estate of which the person is such an officer 
     in a case under title 11;
       ``(2) knowingly refuses to permit a reasonable opportunity 
     for the inspection by parties in interest of the documents 
     and accounts relating to the affairs of estates in the 
     person's charge by parties when directed by the court to do 
     so; or
       ``(3) knowingly refuses to permit a reasonable opportunity 
     for the inspection by the United States Trustee of the 
     documents and accounts relating to the affairs of an estate 
     in the person's charge,

     shall be fined not more than $5,000 and shall forfeit the 
     person's office, which shall thereupon become vacant.''; and
       (B) by adding at the end the following new sections:

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

       ``(a) Definitions.--In this section--
       ```bankruptcy petition preparer' means a person, other than 
     the debtor's attorney or an employee of such an attorney, who 
     prepares for compensation a document for filing.
       ```document for filing' means a petition or any other 
     document prepared for filing by a debtor in a United States 
     bankruptcy court or a United States district court in 
     connection with a case under this title.
       ``(b) Offense.--If a bankruptcy case or related proceeding 
     is dismissed because of a knowing attempt by a bankruptcy 
     petition preparer in any manner to disregard the requirements 
     of title 11, United States Code, or the Bankruptcy Rules, the 
     bankruptcy petition preparer shall be fined under this title, 
     imprisoned not more than 1 year, or both.

     ``Sec. 157. Bankruptcy fraud

       ``(a) Offense.--A person who, having devised or intending 
     to devise a scheme or artifice to defraud, or for obtaining 
     money or property by means of a false or fraudulent pretense, 
     representation, or promise, for the purpose of executing or 
     concealing such a scheme or artifice or attempting to do so--
       ``(1) files a petition under title 11;
       ``(2) files a document in a proceeding under title 11; or
       ``(3) makes a false or fraudulent representation, claim, or 
     promise concerning or in relation to a proceeding under title 
     11, at any time before or after the filing of the petition, 
     or in relation to a proceeding falsely asserted to be pending 
     under that title,
     shall be fined under this title, imprisoned not more than 5 
     years, or both.
       ``(b) Requirement of Intent.--
       ``(1) In general.--The degree of intent required to be 
     shown in the case of an offense described in subsection (a) 
     is that which is generally required to be shown in cases of 
     fraud.
       ``(2) Violation not established.--A violation of subsection 
     (a) is not established if the defendant committed the act 
     that is alleged to constitute fraud for a lawful purpose.
       ``(3) Violation established.--A violation of subsection (a) 
     may be established if the defendant committed the act that is 
     alleged to constitute fraud with a purpose of--
       ``(A) preventing the proper application of title 11 in a 
     particular case; or
       ``(B) using a proceeding under title 11 in a manner that, 
     while on its face may appear to be legitimate, is in fact 
     part of a scheme to defraud.''.
       (2) Technical amendments.--The chapter analysis for chapter 
     9 of title 18, United States Code, is amended--
       (A) by amending the item relating to section 153 to read as 
     follows:

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

     and
       (B) by adding at the end the following new item:
``Sec. 156. Knowing disregard of bankruptcy law or rule.
``Sec. 157. Bankruptcy fraud.''.

       (b) RICO.--Section 1961(1)(D) of title 18, United States 
     Code, is amended by inserting ``(except a case under section 
     157 of that title)'' after ``title 11''.
                    TITLE VI--TECHNICAL CORRECTIONS

     SEC. 601. TITLE 11, UNITED STATES CODE.

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

     ``Sec. 101. Definitions

       ``In this title--
       ```accountant' means an accountant authorized under 
     applicable law to practice public accounting, and includes 
     professional accounting association, corporation, or 
     partnership, if so authorized.
       ```affiliate' means--
       ``(A) an entity that directly or indirectly owns, controls, 
     or holds with power to vote, 20 percent or more of the 
     outstanding voting securities of the debtor, other than an 
     entity that holds such securities--
       ``(i) in a fiduciary or agency capacity without sole 
     discretionary power to vote such securities; or
       ``(ii) solely to secure a debt, if such entity has not in 
     fact exercised such power to vote;
       ``(B) a corporation 20 percent or more of whose outstanding 
     voting securities are directly or indirectly owned, 
     controlled, or held with power to vote, by the debtor, or by 
     an entity that directly or indirectly owns, controls, or 
     holds with power to vote, 20 percent or more of the 
     outstanding voting securities of the debtor, other than an 
     entity that holds such securities--
       ``(i) in a fiduciary or agency capacity without sole 
     discretionary power to vote such securities; or
       ``(ii) solely to secure a debt, if such entity has not in 
     fact exercised such power to vote;
       ``(C) a person whose business is operated under a lease or 
     operating agreement by a debtor, or person substantially all 
     of whose property is operated under an operating agreement 
     with the debtor; or
       ``(D) an entity that operates the business or substantially 
     all of the property of the debtor under a lease or operating 
     agreement.
       ```attorney' means an attorney, professional law 
     association, corporation, or partnership, authorized under 
     applicable law to practice law.
       ```claim' means--
       ``(A) a right to payment, whether or not such right is 
     reduced to judgment, liquidated, unliquidated, fixed, 
     contingent, matured, unmatured, disputed, undisputed, legal, 
     equitable, secured, or unsecured; or
       ``(B) a right to an equitable remedy for breach of 
     performance if such breach gives rise to a right to payment, 
     whether or not such right to an equitable remedy is reduced 
     to judgment, fixed, contingent, matured, unmatured, disputed, 
     undisputed, secured, or unsecured.
       ```commodity broker' means a futures commission merchant, 
     foreign futures commission merchant, clearing organization, 
     leverage transaction merchant, or commodity options dealer 
     (as defined in section 761) with respect to which there is a 
     customer (as defined in section 761).
       ```community claim' means a claim that arose before the 
     commencement of the case concerning the debtor for which 
     property of the kind specified in section 541(a)(2) is 
     liable, whether or not there is any such property at the time 
     of the commencement of the case.
       ```consumer debt' means debt incurred by an individual 
     primarily for a personal, family, or household purpose.
       ```corporation'--
       ``(A) includes--
       ``(i) an association having a power or privilege that a 
     private corporation, but not an individual or a partnership, 
     possesses;
       ``(ii) a partnership association organized under a law that 
     makes only the capital subscribed responsible for the debts 
     of such association;
       ``(iii) a joint-stock company;
       ``(iv) an unincorporated company or association; or
       ``(v) a business trust; but
       ``(B) does not include a limited partnership.
       ```creditor' means--
       ``(A) an entity that has a claim against the debtor that 
     arose at the time of or before the order for relief 
     concerning the debtor;
       ``(B) an entity that has a claim against the estate of a 
     kind specified in section 348(d), 502(f), 502(g), 502(h), or 
     502(i); or
       ``(C) an entity that has a community claim.
       ```custodian' means--
       ``(A) a receiver or trustee of any of the property of the 
     debtor, appointed in a case or proceeding not under this 
     title;
       ``(B) an assignee under a general assignment for the 
     benefit of the debtor's creditors; or
       ``(C) a trustee, receiver, or agent under applicable law, 
     or under a contract, that is appointed or authorized to take 
     charge of property of the debtor for the purpose of enforcing 
     a lien against such property, or for the purpose of general 
     administration of such property for the benefit of the 
     debtor's creditors.
       ```debt' means liability on a claim.
       ```debtor' means a person or municipality concerning which 
     a case under this title has been commenced.
       ```disinterested person' means a person that--
       ``(A) is not a creditor, an equity security holder, or an 
     insider;
       ``(B) is not and was not an investment banker for any 
     outstanding security of the debtor;
       ``(C) has not been, within 3 years before the date of the 
     filing of the petition, an investment banker for a security 
     of the debtor, or an attorney for such an investment banker 
     in connection with the offer, sale, or issuance of a security 
     of the debtor;
       ``(D) is not and was not, within 2 years before the date of 
     the filing of the petition, a director, officer, or employee 
     of the debtor or of an investment banker specified in 
     subparagraph (B) or (C); and
       ``(E) does not have an interest materially adverse to the 
     interest of the estate or of any class of creditors or equity 
     security holders, by reason of any direct or indirect 
     relationship to, connection with, or interest in, the debtor 
     or an investment banker specified in subparagraph (B) or (C), 
     or for any other reason.
       ```entity' includes a person, estate, trust, governmental 
     unit, and United States trustee.
       ```equity security' means--
       ``(A) a share in a corporation, whether or not transferable 
     or denominated `stock', or similar security;
       ``(B) an interest of a limited partner in a limited 
     partnership; or
       ``(C) a warrant or right, other than a right to convert, to 
     purchase, sell, or subscribe to a share, security, or 
     interest of a kind specified in subparagraph (A) or (B).
       ```equity security holder' means a holder of an equity 
     security of the debtor.
       ```family farmer' means--
       ``(A) an individual or individual and spouse engaged in a 
     farming operation whose aggregate debts do not exceed 
     $1,500,000 and not less than 80 percent of whose aggregate 
     noncontingent, liquidated debts (excluding a debt for the 
     principal residence of such individual or such individual and 
     spouse unless such debt arises out of a farming operation), 
     on the date the case is filed, arise out of a farming 
     operation owned or operated by such individual or such 
     individual and spouse, and such individual or such individual 
     and spouse receive from such farming operation more than 50 
     percent of such individual's or such individual and spouse's 
     gross income for the taxable year preceding the taxable year 
     in which the case concerning such individual or such 
     individual and spouse was filed; or
       ``(B) a corporation or partnership in which more than 50 
     percent of the outstanding stock or equity is held by one 
     family, or by one family and the relatives of the members of 
     such family, and such family or such relatives conduct the 
     farming operation--
       ``(i) more than 80 percent of the value of its assets 
     consists of assets related to the farming operation;
       ``(ii) its aggregate debts do not exceed $1,500,000 and not 
     less than 80 percent of its aggregate noncontingent, 
     liquidated debts (excluding a debt for one dwelling which is 
     owned by such corporation or partnership and which a 
     shareholder or partner maintains as a principal residence, 
     unless such debt arises out of a farming operation), on the 
     date the case is filed, arise out of the farming operation 
     owned or operated by such corporation or such partnership; 
     and
       ``(iii) if such corporation issues stock, such stock is not 
     publicly traded.
       ```family farmer with regular annual income' means a family 
     farmer whose annual income is sufficiently stable and regular 
     to enable such family farmer to make payments under a plan 
     under chapter 12.
       ```farmer' means (except when such term appears in the term 
     `family farmer') a person that received more than 80 percent 
     of such person's gross income during the taxable year of such 
     person immediately preceding the taxable year of such person 
     during which the case under this title concerning such person 
     was commenced from a farming operation owned or operated by 
     such person.
       ```farming operation' includes farming, tillage of the 
     soil, dairy farming, ranching, production or raising of 
     crops, poultry, or livestock, and production of poultry or 
     livestock products in an unmanufactured state.
       ```Federal depository institutions regulatory agency' 
     means--
       ``(A) with respect to an insured depository institution (as 
     defined in section 3(c)(2) of the Federal Deposit Insurance 
     Act (12 U.S.C. 1813(c)(2)) for which no conservator or 
     receiver has been appointed, the appropriate Federal banking 
     agency (as defined in section 3(q) of that Act);
       ``(B) with respect to an insured credit union (including an 
     insured credit union for which the National Credit Union 
     Administration has been appointed conservator or liquidating 
     agent), the National Credit Union Administration;
       ``(C) with respect to any insured depository institution 
     for which the Resolution Trust Corporation has been appointed 
     conservator or receiver, the Resolution Trust Corporation; 
     and
       ``(D) with respect to any insured depository institution 
     for which the Federal Deposit Insurance Corporation has been 
     appointed conservator or receiver, the Federal Deposit 
     Insurance Corporation.
       ```financial institution' means a person that is a 
     commercial or savings bank, industrial savings bank, savings 
     and loan association, or trust company and, when any such 
     person is acting as agent or custodian for a customer in 
     connection with a securities contract (as defined in section 
     741(a)), the customer.
       ```foreign proceeding' means a proceeding, whether judicial 
     or administrative and whether or not under bankruptcy law, in 
     a foreign country in which the debtor's domicile, residence, 
     principal place of business, or principal assets were located 
     at the commencement of such proceeding, for the purpose of 
     liquidating an estate, adjusting debts by composition, 
     extension, or discharge, or effecting a reorganization.
       ```foreign representative' means a duly selected trustee, 
     administrator, or other representative of an estate in a 
     foreign proceeding.
       ```forward contract' means a contract (other than a 
     commodity contract) for the purchase, sale, or transfer of a 
     commodity, as defined in section 761, or any similar good, 
     article, service, right, or interest which is presently or in 
     the future becomes the subject of dealing in the forward 
     contract trade, or product or byproduct thereof, with a 
     maturity date more than 2 days after the date the contract is 
     entered into, including, but not limited to, a repurchase 
     transaction, reverse repurchase transaction, consignment, 
     lease, swap, hedge transaction, deposit, loan, option, 
     allocated transaction, unallocated transaction, or any 
     combination thereof or option thereon.
       ```forward contract merchant' means a person whose business 
     consists in whole or in part of entering into forward 
     contracts as or with merchants in a commodity (as defined in 
     section 761) or any similar good, article, service, right, or 
     interest which is presently or in the future becomes the 
     subject of dealing in the forward contract trade.
       ```governmental unit' means--
       ``(A) the United States, a State, Commonwealth, or 
     Territory, the District of Columbia, a municipality, and a 
     foreign state;
       ``(B) a department, agency, or instrumentality of the 
     United States (but not a United States trustee while serving 
     as a trustee in a case under this title), a State, 
     Commonwealth, or Territory, the District of Columbia, a 
     municipality, a foreign state; or
       ``(C) any other foreign or domestic government.
       ```indenture' means a mortgage, deed of trust, or 
     indenture, under which there is outstanding a security, other 
     than a voting-trust certificate, constituting a claim against 
     the debtor, a claim secured by a lien on any of the debtor's 
     property, or an equity security of the debtor.
       ```indenture trustee' means a trustee under an indenture.
       ```individual with regular income' means an individual 
     whose income is sufficiently stable and regular to enable 
     such individual to make payments under a plan under chapter 
     13, other than a stockbroker or a commodity broker.
       ```insider' includes--
       ``(A) if the debtor is an individual--
       ``(i) a relative of the debtor or of a general partner of 
     the debtor;
       ``(ii) a partnership in which the debtor is a general 
     partner;
       ``(iii) a general partner of the debtor; or
       ``(iv) a corporation of which the debtor is a director, 
     officer, or person in control;
       ``(B) if the debtor is a corporation--
       ``(i) a director of the debtor;
       ``(ii) an officer of the debtor;
       ``(iii) a person in control of the debtor;
       ``(iv) a partnership in which the debtor is a general 
     partner;
       ``(v) a general partner of the debtor; or
       ``(vi) a relative of a general partner, director, officer, 
     or person in control of the debtor;
       ``(C) if the debtor is a partnership--
       ``(i) a general partner in the debtor;
       ``(ii) a relative of a general partner in, general partner 
     of, or person in control of the debtor;
       ``(iii) a partnership in which the debtor is a general 
     partner;
       ``(iv) a general partner of the debtor; or
       ``(v) a person in control of the debtor;
       ``(D) if the debtor is a municipality, an elected official 
     of the debtor or relative of an elected official of the 
     debtor;
       ``(E) an affiliate, or insider of an affiliate as if such 
     affiliate were the debtor; and
       ``(F) a managing agent of the debtor.
       ```insolvent' means--
       ``(A) with reference to an entity other than a partnership 
     and a municipality, being in a financial condition such that 
     the sum of the entity's debts is greater than all of the 
     entity's property, at a fair valuation, exclusive of--
       ``(i) property transferred, concealed, or removed with 
     intent to hinder, delay, or defraud such entity's creditors; 
     and
       ``(ii) property that may be exempted from property of the 
     estate under section 522;
       ``(B) with reference to a partnership, being in a financial 
     condition such that the sum of the partnership's debts is 
     greater than the aggregate of, at a fair valuation--
       ``(i) all of the partnership's property, exclusive of 
     property of the kind specified in subparagraph (A)(i); and
       ``(B) the sum of the excess of the value of each general 
     partner's nonpartnership property, exclusive of property of 
     the kind specified in subparagraph (A), over such partner's 
     nonpartnership debts; and
       ``(C) with reference to a municipality, being in a 
     financial condition such that the municipality is--
       ``(i) generally not paying its debts as they become due 
     unless such debts are the subject of a bona fide dispute; and
       ``(ii) unable to pay its debts as they become due.
       ```institution-affiliated party'--
       ``(A) with respect to an insured depository institution (as 
     defined in section 3(c)(2) of the Federal Deposit Insurance 
     Act) (12 U.S.C. 1813(c)(2)), has the meaning given it in 
     section 3(u) of the Federal Deposit Insurance Act (12 U.S.C. 
     1813(u)); and
       ``(2) with respect to an insured credit union, has the 
     meaning given it in section 206(r) of the Federal Credit 
     Union Act (12 U.S.C. 1786(r)).
       ```insured credit union' has the meaning given it in 
     section 101(7) of the Federal Credit Union Act (12 U.S.C. 
     1752(7)).
       ```insured depository institution'--
       ``(A) has the meaning given it in section 3(c)(2) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1813(c)(2)); and
       ``(B) includes an insured credit union (except as provided 
     in the definition of `Federal depository institutions 
     regulatory agency' and in subparagraph (B) of the definition 
     of `institution-affiliated party').
       ```intellectual property' means--
       ``(A) a trade secret;
       ``(B) an invention, process, design, or plant protected 
     under title 35;
       ``(C) a patent application;
       ``(D) a plant variety;
       ``(E) a work of authorship protected under title 17; and
       ``(F) a mask work protected under chapter 9 of title 17, to 
     the extent protected by applicable nonbankruptcy law.
       ```judicial lien' means a lien obtained by judgment, levy, 
     sequestration, or other legal or equitable process or 
     proceeding.
       ```lien' means a charge against or interest in property to 
     secure payment of a debt or performance of an obligation.
       ```margin payment', as used in sections 362(b)(6), 546 (e) 
     and (f), 548 (d)(2) (B) and (C), 556, 741(5), 761(15), 
     764(b), 766(a), and any other provision of this title in 
     relation to forward contracts, means a payment or deposit of 
     cash, a security, or other property that is commonly known in 
     the forward contract trade as original margin, initial 
     margin, maintenance margin, or variation margin, including 
     market-to-market payments or variation payments.
       ```mask work' has the meaning given it in section 901(a)(2) 
     of title 17.
       ```municipality' means a political subdivision or public 
     agency or instrumentality of a State.
       ```person' includes an individual, partnership, and 
     corporation, but does not include a governmental unit, except 
     that a governmental unit that acquires an asset from a person 
     as a result of operation of a loan guarantee agreement, or as 
     receiver or liquidating agent of a person, shall be 
     considered to be a person for purposes of section 1102.
       ```petition' means a petition filed under section 301, 302, 
     303, or 304 commencing a case under this title.
       ```purchaser' means a transferee of a voluntary transfer, 
     and includes an immediate or mediate transferee of such a 
     transferee.
       ```railroad' means a common carrier by railroad engaged in 
     the transportation of individuals or property or owner of 
     trackage facilities leased by such a common carrier.
       ```relative' means an individual related by affinity or 
     consanguinity within the third degree as determined by the 
     common law and an individual in a step or adoptive 
     relationship within such third degree.
       ```repo participant' means an entity that, on any day 
     during the period beginning 90 days before the date of the 
     filing of a petition, has an outstanding repurchase agreement 
     with the debtor.
       ```repurchase agreement' and `reverse repurchase agreement' 
     mean an agreement, including related terms, which provides 
     for the transfer of certificates of deposit, eligible 
     bankers' acceptances, or securities that are direct 
     obligations of, or that are fully guaranteed as to principal 
     and interest by, the United States or any agency of the 
     United States against the transfer of funds by the transferee 
     of such certificates of deposit, eligible bankers' 
     acceptances, or securities with a simultaneous agreement by 
     such transferee to transfer to the transferor thereof 
     certificates of deposit, eligible bankers' acceptances, or 
     securities as described above, at a date certain not later 
     than 1 year after such transfers or on demand, against the 
     transfer of funds.
       ```security'--
       ``(A) includes--
       ``(i) a note;
       ``(ii) stock;
       ``(iii) treasury stock;
       ``(iv) a bond;
       ``(v) a debenture;
       ``(vi) a collateral trust certificate;
       ``(vii) a preorganization certificate or subscription;
       ``(viii) a transferable share;
       ``(ix) a voting-trust certificate;
       ``(x) a certificate of deposit;
       ``(xi) a certificate of deposit for security;
       ``(xii) an investment contract or certificate of interest 
     or participation in a profit-sharing agreement or in an oil, 
     gas, or mineral royalty or lease, if such contract or 
     interest is required to be the subject of a registration 
     statement filed with the Securities and Exchange Commission 
     under the provisions of the Securities Act of 1933 (15 U.S.C. 
     77a et seq.), or is exempt under section 3(b) of that Act (15 
     U.S.C. 77c(b)) from the requirement to file such a statement;
       ``(xiii) an interest of a limited partner in a limited 
     partnership;
       ``(xiv) another claim or interest commonly known as a 
     `security'; and
       ``(xv) a certificate of interest or participation in, 
     temporary or interim certificate for, receipt for, or warrant 
     or right to subscribe to or purchase or sell, a security; but
       ``(B) does not include--
       ``(i) currency or a check, draft, bill of exchange, or bank 
     letter of credit;
       ``(ii) a leverage transaction (as defined in section 761);
       ``(iii) a commodity futures contract or forward contract;
       ``(iv) an option, warrant, or right to subscribe to or 
     purchase or sell a commodity futures contract;
       ``(v) an option to purchase or sell a commodity;
       ``(vi) a contract or certificate of a kind specified in 
     subparagraph (A)(xii) that is not required to be the subject 
     of a registration statement filed with the Securities and 
     Exchange Commission and is not exempt under section 3(b) of 
     the Securities Act of 1933 (15 U.S.C. 77c(b)) from the 
     requirement to file such a statement; or
       ``(vii) debt or an evidence of indebtedness for goods sold 
     and delivered or services rendered.
       ```security agreement' means an agreement that creates or 
     provides for a security interest.
       ```securities clearing agency' means a person that is 
     registered as a clearing agency under section 17A of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78q-1) or whose 
     business is confined to the performance of functions of a 
     clearing agency with respect to exempted securities (as 
     defined in section 3(a)(12) of that Act (15 U.S.C. 78c(12)) 
     for the purposes of that section 17A.
       ```security interest' means a lien created by an agreement.
       ```settlement payment' means, for purposes of the forward 
     contract provisions of this title, a preliminary settlement 
     payment, partial settlement payment, interim settlement 
     payment, settlement payment on account, final settlement 
     payment, net settlement payment, or any other similar payment 
     commonly used in the forward contract trade.
       ```State' includes the District of Columbia and Puerto 
     Rico, except for the purpose of defining who may be a debtor 
     under chapter 9.
       ```statutory lien' means a lien arising solely by force of 
     a statute on specified circumstances or conditions, or lien 
     of distress for rent, whether or not statutory, but does not 
     include a security interest or judicial lien, whether or not 
     such interest or lien is provided by or is dependent on a 
     statute and whether or not such interest or lien is made 
     fully effective by statute.
       ```stockbroker' means a person--
       ``(A) with respect to which there is a customer (as defined 
     in section 741); and
       ``(B) that is engaged in the business of effecting 
     transactions in securities--
       ``(i) for the account of others; or
       ``(ii) with members of the general public, from or for such 
     person's own account.
       ```swap agreement' means--
       ``(A) an agreement (including terms and conditions 
     incorporated by reference therein) which is a rate swap 
     agreement, basis swap, forward rate agreement, commodity 
     swap, interest rate option, forward foreign exchange 
     agreement, rate cap agreement, rate floor agreement, rate 
     collar agreement, currency swap agreement, cross-currency 
     rate swap agreement, currency option, or any other similar 
     agreement (including any option to enter into any of the 
     foregoing);
       ``(2) any combination of the foregoing; or
       ``(3) a master agreement for any of the foregoing together 
     with all supplements.
       ```swap participant' means an entity that, at any time 
     before the filing of a petition, has an outstanding swap 
     agreement with the debtor.
       ```timeshare interest' means an interest purchased in a 
     timeshare plan which grants the purchaser the right to use 
     and occupy accommodations, facilities, or recreational sites, 
     whether improved or unimproved, pursuant to a timeshare plan.
       ```timeshare plan' means an interest in any arrangement, 
     plan, scheme, or similar device (but not including an 
     exchange program), whether by membership, agreement, tenancy 
     in common, sale, lease, deed, rental agreement, license, 
     right to use agreement, or by any other means, whereby a 
     purchaser of the interest, in exchange for consideration, 
     receives a right to use accommodations, facilities, or 
     recreational sites, whether improved or unimproved, for a 
     specific period of time less than a full year during any 
     given year, but not necessarily for consecutive years, and 
     which extends for a period of more than 3 years.
       ```transfer' means a mode, direct or indirect, absolute or 
     conditional, voluntary or involuntary, of disposing of or 
     parting with property or with an interest in property, 
     including retention of title as a security interest and 
     foreclosure of the debtor's equity of redemption.
       ```United States', when used in a geographical sense, 
     includes all locations where the judicial jurisdiction of the 
     United States extends, including territories and possessions 
     of the United States.
       (b) References to Definitions in Title XI.--
       (1) Section 362.--Section 362(b) of title 11, United States 
     Code, is amended--
       (A) in paragraph (6)--
       (i) by striking ``section 761(4)'' and inserting ``section 
     761'';
       (ii) by striking ``section 741(7)'' and inserting ``section 
     741'';
       (iii) by striking ``section 101(34), 741(5), or 761(15)'' 
     and inserting ``section 101, 741, or 761''; and
       (iv) by striking ``section 101(35) or 741(8)'' and 
     inserting ``section 101 or 741''; and
       (B) in paragraph (7)--
       (i) by striking ``section 741(5) or 761(15)'' and inserting 
     ``section 741 or 761''; and
       (ii) by striking ``section 741(8)'' and inserting ``section 
     741''.
       (2) Section 507.--Section 507(a)(5) of title 11, United 
     States Code, is amended--
       (A) by striking ``section 557(b)(1)'' and inserting 
     ``section 557(b)''; and
       (B) by striking ``section 557(b)(2)'' and inserting 
     ``section 557(b)''.
       (3) Section 546 of title 11, United States Code, is 
     amended--
       (A) in subsection (e)--
       (i) by striking ``section 101(34), 741(5), or 761(15)'' and 
     inserting ``section 101, 741, or 761''; and
       (ii) by striking ``section 101(35) or 741(8)'' and 
     inserting ``section 101 or 741''; and
       (B) in subsection (f)--
       (i) by striking ``section 741(5) or 761(15)'' and inserting 
     ``section 741 or 761''; and
       (ii) by striking ``section 741(8)'' and inserting ``section 
     741''.
       (4) Section 548.--Section 548(d)(2) of title 11, United 
     States Code, is amended--
       (A) in subparagraph (B)--
       (i) by striking ``section 101(34), 741(5) or 761(15)'' and 
     inserting ``section 101, 741, or 761''; and
       (ii) by striking ``section 101(35) or 741(8)'' and 
     inserting ``section 101 or 741''; and
       (B) in subparagraph (C)--
       (i) by striking ``section 741(5) or 761(15)'' and inserting 
     ``section 741 or 761''; and
       (ii) by striking ``section 741(8)'' and inserting ``section 
     741''.
       (5) Section 555.--Section 555 of title 11, United States 
     Code, is amended by striking ``section 741(7)'' and inserting 
     ``section 741''.
       (6) Section 556.--Section 556 of title 11, United States 
     Code, is amended by striking ``section 761(4)'' and inserting 
     ``section 761''.
       (c) References to Definitions in Other Laws.--
       (1) Federal credit union act.--Section 207(c)(8)(D) of the 
     Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)) is 
     amended--
       (A) in clause (ii)(I) by striking ``section 741(7)'' and 
     inserting ``section 741'';
       (B) in clause (iii) by striking ``section 101(24)'' and 
     inserting ``section 101'';
       (C) in clause (iv)(I) by striking ``section 101(41)'' and 
     inserting ``section 101''; and
       (D) in clause (v) by striking ``section 101(50)'' and 
     inserting ``section 101''.
       (2) Federal deposit insurance act.--Section 11(e)(8)(D) of 
     the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)) 
     is amended--
       (A) in clause (ii)(I) by striking ``section 741(7)'' and 
     inserting ``section 741'';
       (B) in clause (iii) by striking ``section 761(4)'' and 
     inserting ``section 761'';
       (C) in clause (iv) by striking ``section 101(24)'' and 
     inserting ``section 101'';
       (D) in clause (v)(I) by striking ``section 101(41)'' and 
     inserting ``section 101''; and
       (E) in clause (viii) by striking ``section 101(50)'' and 
     inserting ``section 101''.
       (d) Other Technical Amendments.--Title 11 of the United 
     States Code is amended--
       (1) in section 322(a) by striking ``1302, or 1202'' and 
     inserting ``1202, or 1302'',
       (2) in section 346--
       (A) in subsection (a) by striking ``Internal Revenue Code 
     of 1954 (26 U.S.C. 1 et seq.)'' and inserting ``Internal 
     Revenue Code of 1986''; and
       (B) in subsection (g)(1)(C) by striking ``Internal Revenue 
     Code of 1954 (26 U.S.C. 371)'' and inserting ``Internal 
     Revenue Code of 1986'';
       (3) in section 348--
       (A) in subsection (b) by striking ``728(a), 728(b), 
     1102(a), 1110(a)(1), 1121(b), 1121(c), 1141(d)(4), 1146(a), 
     1146(b), 1301(a), 1305(a), 1201(a), 1221, and 1228(a)'' and 
     inserting ``728 (a) and (b), 1021, 1028, 1102(a), 1110(a)(1), 
     1121 (b) and (c), 1141(d)(4), 1146 (a) and (b), 1201(a), 
     1221, 1228(a), 1301(a), and 1305(a)''; and
       (B) in subsections (b), (c), (d), and (e) by striking 
     ``1307, or 1208'' each place it appears and inserting ``1208, 
     or 1307'';
       (4) in section 349(a) by striking ``109(f)'' and inserting 
     ``109(g)'';
       (5) in section 362(b)--
       (A) by striking ``or'' at the end of paragraph (10);
       (B) in paragraph (12) by striking ``the Ship Mortgage Act, 
     1920 (46 App. U.S.C. 911 et seq.)'' and inserting ``section 
     31325 of title 46, United States Code'';
       (C) in paragraph (13)--
       (i) by striking ``the Ship Mortgage Act, 1920 (46 App. 
     U.S.C. 911 et seq.)'' and inserting ``section 31325 of title 
     46, United States Code''; and
       (ii) by striking ``or'' at the end;
       (D) in paragraph (14), as added by section 102 of Public 
     Law 101-311 (104 Stat. 267) at the end of the subsection, by 
     removing it from the end of the subsection, inserting it 
     after paragraph (13), and striking the period at the end and 
     inserting a semicolon; and
       (E) by redesignating paragraphs (14), (15), and (16), as 
     added by section 3007(a) of the Student Loan Default 
     Prevention Initiative Act of 1990 (104 Stat. 1388-28), as 
     paragraphs (15), (16), and (17);
       (6) in section 363(c)(1) by striking ``1304, 1203, or 
     1204'' and inserting ``1203, 1204, or 1304'';
       (7) in section 364(a) by striking ``1304, 1203, or 1204'' 
     and inserting ``1203, 1204, or 1304'';
       (8) in section 365--
       (A) in subsection (g)(2) (A) and (B) by striking ``1307, or 
     1208'' each place it appears and inserting ``1208, or 1307'';
       (B) in subsection (n)(1)(B) by striking ``to to'' and 
     inserting ``to''; and
       (C) in subsection (o) by striking ``the Federal'' the first 
     place it appears and all that follows through ``successors,'' 
     and inserting ``a Federal depository institutions regulatory 
     agency (or predecessor to such an agency)'';
       (9) in section 507--
       (A) in subsection (a)(9), as redesignated by section 
     304(b)(1)(B), by striking ``the Federal'' the first place it 
     appears and all that follows through ``successors,'' and 
     inserting ``a Federal depository institutions regulatory 
     agency (or predecessor to such an agency)''; and
       (B) in subsection (d) by striking ``(a)(3), (a)(4), (a)(5), 
     or (a)(6)'' and inserting ``(a) (3), (4), (6), or (7)'';
       (10) in section 522(d)(10)(E)(iii) by striking ``401(a), 
     403(a), 403(b), 408, or 409 Internal Revenue Code of 1954 (26 
     U.S.C. 401(a), 403(a), 403(b), 408, or 409)'' and inserting 
     ``section 401(a), 403 (a) or (b), 408, or 409 of the Internal 
     Revenue Code of 1986'';
       (11) in section 523(a) --
       (A) in subsection (a)--
       (i) by striking ``1141,, 1228(a), 1228(b),'' and inserting 
     ``1141, 1228 (a) or (b),''; and
       (ii) in paragraph (12) by striking the semicolon at the end 
     and inserting a period; and
       (B) in subsection (e) by striking ``depository institution 
     or insured credit union'' and inserting ``insured depository 
     institution'';
       (12) in section 524--
       (A) in subsection (a)(3) by striking ``or 1328(c)(1)'' and 
     inserting ``1228(a)(1), or 1328(a)(1)'';
       (B) in subsection (c)(4) by striking ``recission'' and 
     inserting ``rescission''; and
       (C) in subsection (d)(1)(B)(ii) by adding ``and'' at the 
     end;
       (12) in section 541(b)--
       (A) by inserting ``(1)'' after ``(b)'' and redesignating 
     paragraphs (1), (2), (3), and (4) as subparagraphs (A), (B), 
     (C), and (D), respectively;
       (B) in subparagraph (D) of paragraph (1), as redesignated 
     by subparagraph (A), by redesignating subparagraphs (A) and 
     (B) as clauses (i) and (ii), respectively;
       (C) in subparagraph (C) of paragraph (1), as redesignated 
     by subparagraph (A), by striking ``institution or'' and 
     inserting ``institution; or''; and
       (D) in the matter following subparagraph (D) of paragraph 
     (1), as redesignated by subparagraph (A), by striking 
     ``Paragraph (4) shall not'' and inserting the following:
       ``(2) Paragraph (1)(D) shall not''.
       (13) in section 542(e) by striking ``to to'' and inserting 
     ``to'';
       (14) in section 543(d)(1) by striking ``of equity'' and 
     inserting ``if equity'';
       (15) in section 546(a)(1) by striking ``1302, or 1202'' and 
     inserting ``1202, or 1302'';
       (16) in section 549(b) by inserting ``the trustee may not 
     avoid under subsection (a) of this section'' after 
     ``involuntary case,'';
       (17) in section 553--
       (A) in subsection (a)(1) by striking ``other than under 
     section 502(b)(3) of this title''; and
       (B) in subsection (b)(1) by striking ``362(b)(14),'' and 
     inserting ``362(b)(14),'';
       (18) in section 706(a) by striking ``1307, or 1208'' and 
     inserting ``1208, or 1307'';
       (19) in section 724(d) by striking ``Internal Revenue Code 
     of 1954 (26 U.S.C. 6323)'' and inserting ``Internal Revenue 
     Code of 1986'';
       (20) in section 726(b) by inserting a comma after ``section 
     1112'';
       (21) in section 743 by striking ``342(a)'' and inserting 
     ``342'';
       (22) in section 745(c) by striking ``Internal Revenue Code 
     of 1954 (26 U.S.C. 1 et seq.)'' and inserting ``Internal 
     Revenue Code of 1986'';
       (23) in section 1104(c) inserting a comma after 
     ``interest'';
       (24) in section 1123(a)(1) inserting a comma after 
     ``title'' the last place it appears;
       (25) in section 1129(a)--
       (A) in paragraph (4) by striking the semicolon at the end 
     and inserting a period; and
       (B) in paragraph (12) by inserting ``of title 28'' after 
     ``section 1930'';
       (26) in section 1145(a) by striking ``does'' and inserting 
     ``do'';
       (27) in section 1226(b)(2)--
       (A) by striking ``1202(d) of this title'' and inserting 
     ``1202(c)''; and
       (B) by striking ``1202(e) of this title'' and inserting 
     ``1202(d)'';
       (28) in section 1302(b)(3) by striking ``and'' at the end;
       (29) in section 1328(a)(2) by striking ``(5) or (8)'' and 
     inserting ``(5), (8), or (9)''; and
       (30) in the table of chapters by striking the item relating 
     to chapter 15.

     SEC. 602. TITLE 28, UNITED STATES CODE.

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

     SEC. 701. SEVERABILITY.

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

     SEC. 702. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

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

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

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

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

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

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

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

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

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

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

     SEC. 803. CHICAGO HOUSING AUTHORITY.

       (a) Findings.--The Senate finds that--
       (1) It is the fundamental obligation of government to 
     protect its citizens;
       (2) In many federally financed public housing projects, the 
     level of violence has reached epidemic proportions, 
     threatening on a daily basis the lives of the majority of the 
     tenants, who are law-abiding;
       (3) In an effort to combat gang and drug-related violence, 
     the Chicago Housing Authority (``CHA'') instituted a policy 
     of conducting warrantless, apartment-to-apartment searches of 
     CHA projects, including the Robert Taylor Homes;
       (4) On April 7, 1994, Federal district court judge Warren 
     Andersen ruled that CHA's search policy violated the Fourth 
     Amendment to the Constitution of the United States and 
     enjoined CHA officials from undertaking these searches;
       (5) After the court decision, President Clinton directed 
     Attorney General Janet Reno and Secretary of Housing and 
     Urban Development Henry Cisneros to develop law enforcement 
     measures that would be both constitutionally valid and 
     effective in reducing violent crime in public housing 
     projects; and
       (6) President Clinton subsequently announced new Federal 
     guidelines designed to assist public housing officials in 
     maintaining order and protecting the security of their law-
     abiding tenants.
       (b) Therefore, it is the sense of the Senate that the 
     Senate fully endorses the new Administration guidelines, 
     outlined in a letter to President Clinton from Attorney 
     General Reno and Secretary of Housing and Urban Development 
     Cisneros, dated April 14, 1994, including the guidelines 
     allowing public housing officials to (1) erect fences around 
     public housing buildings, issue identification cards to 
     tenants, and install metal detectors or magnetometers at the 
     building entrances; (2) search the packages and clothing of 
     anyone seeking to enter public housing buildings and refuse 
     entry to anyone who does not submit to inspection; (3) 
     conduct weapons searches without consent or a warrant in 
     common areas of the buildings, such as stairwells, and in 
     vacant apartments; (4) frisk ``suspicious-looking'' 
     individuals for weapons, if police or security personnel have 
     a reason to believe that the individuals are involved in 
     criminal activity and are armed; (5) include noncoercive 
     consent clauses in lease agreements permitting routine 
     warrantless apartment-by-apartment police searches for 
     illegal weapons and illegal drugs, so long as residency or 
     continued residency in public housing is not contingent upon 
     the inclusion of such consent clause as a provision of a 
     lease agreement; and (6) conduct warrantless searches of 
     individual units where there is justification for a search 
     but insufficient time to obtain a judicial warrant.
  Mr. HEFLIN. Mr. President, I move to reconsider the vote.
  Mr. BYRD. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. HEFLIN. Madam President, at this time, I would like to take a 
moment to thank all the Members and staff who have worked so diligently 
on this bankruptcy legislation.
  I first recognize the ranking member of the Subcommittee on Courts, 
Senator Grassley, for his outstanding work and his diligence, patience 
and perseverance in regard to working on the numerous issues that are 
contained within this legislation. His staff people have been superb, 
Melissa Patack and Fred Ansell worked hard and diligently for many 
hours, and I particularly want to thank them for their great work on 
the committee.
  I thank the following people:
  From Senator Metzenbaum's staff, Pam Banks and Gene Kimmelman. Pam 
Banks is leaving the Senate, and Senator Metzenbaum had kind words to 
say about her earlier, and I want to concur in those remarks.
  From Senator Hatch's staff, Victor Cabral; from Senator Browns's 
staff, David Miller; from Senator DeConcini's staff, Janis Long; from 
Senator Thurmond's staff, Thad Strom; from Senator Simpson's staff, 
Warren Schaeffer; from Senator Feinstein's staff, Adam Eisgrau.
  In addition, from a wide range of staff from members of the 
committee, we received enormous input and assistance. Some of these 
people are:
  From Senator Reid's staff, Jimmy Ryan; from Senator Cochran's staff, 
Jim Lofton; from Senator Graham's staff, Leslie Woolley; from Senator 
Johnston's staff, Michael Gougisha and Donna Jo Denison.
  In addition, I would be remiss if I did not mention the outstanding 
efforts of Tim Trushel from the Legislative Counsel's Office and the 
efforts of my own staff, especially Winston Lett, Jim Whiddon, Becky 
Ward, and Cheri Cole.
  I particularly pay tribute to Jim Whiddon who has worked untiringly 
on this bill with a tremendous ability to comprehend legal principles 
and to understand the bankruptcy laws, the bankruptcy courts, as well 
as other matters that have arisen in the Judiciary Committee.
  I also thank Jeff Hartley, who is no longer with us on our staff but 
who worked on this bill in the last Congress and worked on it last year 
diligently and has brought many people together to get an agreement, at 
least started bringing them together, and Jim Whiddon and Winston Lett 
worked with them to get them to come to agreement. Winston Lett was 
superb throughout as my legislative staff director of the subcommittee 
and chief counsel, and I thank him for all of his efforts.
  I know these are not all of the names of every one who has worked on 
this bill, and I apologize to any person whose name I may have left 
out. But I want to thank these persons for their efforts and recognize 
them for their hard work.
  Senator Grassley asked that he be noted as concurring in thanking 
each and every one of these.
  Madam President, I ask unanimous consent at this time that Senator 
Brown be added as a cosponsor to the bill.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. HEFLIN. I yield the floor.
  The PRESIDING OFFICER. The Senator from Massachusetts.

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