[Congressional Record Volume 143, Number 159 (Wednesday, November 12, 1997)]
[House]
[Pages H10660-H10663]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     BANKRUPTCY AMENDMENTS OF 1997

  Mr. GEKAS. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 764) to make technical corrections to title 11, United States 
Code, and for other purposes, as amended.
  The Clerk read as follows:

                                H.R. 764

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Bankruptcy Amendments of 
     1997''.

     SEC. 2. DEFINITIONS.

       Section 101 of title 11, United States Code, is amended--
       (1) by striking ``In this title--'' and inserting ``In this 
     title:'',
       (2) in each paragraph by inserting ``The term'' after the 
     paragraph designation,
       (3) in paragraph (35)(B) by striking ``paragraphs (21B) and 
     (33)(A)'' and inserting ``paragraphs (23) and (35)'',
       (4) in paragraphs (35A) and (38) by striking ``; and'' at 
     the end and inserting a period,
       (5) in paragraph (51B)--
       (A) by inserting ``who is not a family farmer'' after 
     ``debtor'' the first place it appears, and
       (B) by striking ``$4,000,000'' and inserting ``$15,000,000 
     as of the date of the filing of the petition'',
       (6) by amending paragraph (54) to read as follows:
       ``(54) The term `transfer' means--
       ``(A) creation of a lien;
       ``(B) retention of title as a security interest;
       ``(C) foreclosure of the debtor's equity of redemption; or
       ``(D) every mode, direct or indirect, absolute or 
     conditional, voluntary or involuntary, of disposing of or 
     parting with property or with an interest in property;'',
       (7) in paragraphs (1) through (35), in paragraphs (36) and 
     (37), and in paragraphs (40) through (55), including 
     paragraph (54) as added by this section, by striking the 
     semicolon at the end and inserting a period, and
       (8) by redesignating paragraphs (4) through (55), including 
     paragraph (54) as added by this section, in entirely 
     numerical sequence.

     SEC. 3. ADJUSTMENT OF DOLLAR AMOUNTS.

       Section 104 of title 11, United States Code, is amended by 
     inserting ``522(f)(3),'' after ``522(d),'' each place it 
     appears.

     SEC. 4. EXTENSION OF TIME.

       Section 108(c)(2) of title 11, United States Code, is 
     amended by striking ``922'' and all that follows through 
     ``or'', and inserting ``922, 1201, or''.

     SEC. 5. PENALTY FOR PERSONS WHO NEGLIGENTLY OR FRAUDULENTLY 
                   PREPARE BANKRUPTCY PETITIONS.

       Section 110(j)(3) of title 11, United States Code, is 
     amended by striking ``attorney's'' and inserting ``attorneys' 
     ''.

     SEC. 6. LIMITATION ON COMPENSATION OF PROFESSIONAL PERSONS.

       Section 328(a) of title 11, United States Code, is amended 
     by inserting ``on a fixed or percentage fee basis,'' after 
     ``hourly basis,''.

     SEC. 7. COMPENSATION TO OFFICERS.

       Section 330(a) of title 11, United States Code, is 
     amended--
       (1) in paragraph (1) by inserting ``, or the debtor's 
     attorney'' after ``1103'', and
       (2) in paragraph (3) by striking ``(3)(A) In'' and 
     inserting ``(3) In''.

     SEC. 8. SPECIAL TAX PROVISIONS.

       Section 346(g)(1)(C) of title 11, United States Code, is 
     amended by striking ``, except'' and all that follows through 
     ``1986''.

     SEC. 9. EFFECT OF CONVERSION.

       Section 348(f)(2) of title 11, United States Code, is 
     amended by inserting ``of the estate'' after ``property'' the 
     first place it appears.

     SEC. 10. AUTOMATIC STAY.

       Section 362(b) of title 11, United States Code, is 
     amended--
       (1) in paragraph (17) by striking ``or'' at the end,
       (2) in paragraph (18) by striking the period at the end and 
     inserting ``; or'', and
       (3) by adding at the end the following:
       ``(19) under subsection (a) of this section, of any 
     transfer that is not avoidable under section 544 and not 
     avoidable under section 549.''.

     SEC. 11. DEFAULTS BASED ON NONMONETARY OBLIGATIONS.

       (a) Executory Contracts and Unexpired Leases.--Section 365 
     of title 11, United States Code, is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)(A) by striking the semicolon at the 
     end and inserting the following:

     ``other than a default that is a breach of a provision 
     relating to--
       ``(i) the satisfaction of any provision (other than a 
     penalty rate or penalty provision) relating to a default 
     arising from any failure to perform nonmonetary obligations 
     under an unexpired lease of real property, if it is 
     impossible for the trustee to cure such default by performing 
     nonmonetary acts at and after the time of assumption; or
       ``(ii) the satisfaction of any provision (other than a 
     penalty rate or penalty provision) relating to a default 
     arising from any failure to perform nonmonetary obligations 
     under an executory contract, if it is impossible for the 
     trustee to cure such default by performing nonmonetary acts 
     at and after the time of assumption and if the court 
     determines, based on the equities of the case, that this 
     subparagraph should not apply with respect to such 
     default;'', and
       (B) by amending paragraph (2)(D) to read as follows:
       ``(D) the satisfaction of any penalty rate or penalty 
     provision relating to a default arising from a failure to 
     perform nonmonetary obligations under an executory contract 
     or under an unexpired lease of real or personal property.'',
       (2) in subsection (c)--
       (A) in paragraph (2) by adding ``or'' at the end,
       (B) in paragraph (3) by striking ``; or'' at the end and 
     inserting a period, and
       (C) by striking paragraph (4),
       (3) in subsection (d)--
       (A) by striking paragraphs (5) through (9), and
       (B) by redesignating paragraph (10) as paragraph(5).
       (4) in subsection (f)(1) by striking ``; except that'' and 
     all that follows through the end of the paragraph and 
     inserting a period.
       (b) Impairment of Claims or Interests.--Section 1124(2) of 
     title 11, United States Code, is amended--
       (1) in subparagraph (A) by inserting ``or of a kind that 
     section 365(b)(1)(A) of this title expressly does not require 
     to be cured'' before the semicolon at the end,
       (2) in subparagraph (C) by striking ``and'' at the end,
       (3) by redesignating subparagraph (D) as subparagraph (E), 
     and
       (4) by inserting after subparagraph (C) the following:
       ``(D) if such claim or such interest arises from any 
     failure to perform a nonmonetary obligation, compensates the 
     holder of such claim or such interest (other than the debtor 
     or an insider) for any actual pecuniary loss incurred by such 
     holder as a result of such failure; and''.

     SEC. 12. AMENDMENT TO TABLE OF SECTIONS.

       The table of sections for chapter 5 of title 11, United 
     States Code, is amended by striking the item relating to 
     section 556 and inserting the following:

``556. Contractual right to liquidate a commodities contract or forward 
              contract.''.

     SEC. 13. ALLOWANCE OF ADMINISTRATIVE EXPENSES.

       Section 503(b)(4) of title 11, United States Code, is 
     amended by inserting ``subparagraph (A), (B), (C), (D), or 
     (E) of '' before ``paragraph (3)''.

     SEC. 14. PRIORITIES.

       Section 507(a) of title 11, United States Code, is 
     amended--
       (1) in paragraph (3)(B) by striking the semicolon at the 
     end and inserting a period, and
       (2) in paragraph (7) by inserting ``unsecured'' after 
     ``allowed''.

     SEC. 15. EXEMPTIONS.

       Section 522 of title 11, United States Code, is amended--

[[Page H10661]]

       (1) in subsection (f)(1)(A)(ii)(II)--
       (A) by striking ``includes a liability designated as'' and 
     inserting ``is for a liability that is designated as, and is 
     actually in the nature of,'', and
       (B) by striking ``, unless'' and all that follows through 
     ``support.'', and
       (2) in subsection (g)(2) by striking ``subsection (f)(2)'' 
     and inserting ``subsection (f)(1)(B)''.

     SEC. 16. EXCEPTIONS TO DISCHARGE.

       Section 523 of title 11, United States Code, is amended--
       (1) in subsection (a)(3) by striking ``or (6)'' each place 
     it appears and inserting ``(6), or (15)'',
       (2) as amended by section 304(e) of Public Law 103-394 (108 
     Stat. 4133), in paragraph (15) by transferring such paragraph 
     so as to insert it after paragraph (14) of subsection (a),
       (3) in paragraph (9) by inserting ``, watercraft, or 
     aircraft'' after ``motor vehicle'',
       (4) in subsection (a)(15), as so redesignated by operation 
     of paragraph (2), by inserting ``to a spouse, former spouse, 
     or child of the debtor and'' after ``(15)'',
       (5) in subsection (a)(17)--
       (A) by striking ``by a court'' and inserting ``on a 
     prisoner by any court'',
       (B) by striking ``section 1915 (b) or (f)'' and inserting 
     ``subsection (b) or (f)(2) of section 1915'', and
       (C) by inserting ``(or a similar non-Federal law)'' after 
     ``title 28'' each place it appears, and
       (6) in subsection (e) by striking ``a insured'' and 
     inserting ``an insured''.

     SEC. 17. EFFECT OF DISCHARGE.

       Section 524(a)(3) of title 11, United States Code, is 
     amended by striking ``section 523'' and all that follows 
     through ``or that'', and inserting ``section 523, 1228(a)(1), 
     or 1328(a)(1) of this title, or that''.

     SEC. 18. PROTECTION AGAINST DISCRIMINATORY TREATMENT.

       Section 525(c) of title 11, United States Code, is 
     amended--
       (1) in paragraph (1) by inserting ``student'' before 
     ``grant'' the second place it appears, and
       (2) in paragraph (2) by striking ``the program operated 
     under part B, D, or E of'' and inserting ``any program 
     operated under''.

     SEC. 19. PROPERTY OF THE ESTATE.

       Section 541(b)(4)(B)(ii) of title 11, United States Code is 
     amended by inserting ``365 or'' before ``542''.

     SEC. 20. LIMITATIONS ON AVOIDING POWERS.

       Section 546 of title 11, United States Code, is amended by 
     redesignating the second subsection (g) as subsection (h).

     SEC. 21. PREFERENCES.

       Section 547 of title 11, United States Code, is amended--
       (1) in subsection (b) by striking ``subsection (c)'' and 
     inserting ``subsections (c) and (h)'', and
       (2) by adding at the end the following:
       ``(h) If the trustee avoids under subsection (b) a security 
     interest given between 90 days and 1 year before the date of 
     the filing of the petition, by the debtor to an entity that 
     is not an insider for the benefit of a creditor that is an 
     insider, then such security interest shall be considered to 
     be avoided under this section only with respect to the 
     creditor that is an insider.''.

     SEC. 22. POSTPETITION TRANSACTIONS.

       Section 549(c) of title 11, United States Code, is 
     amended--
       (1) by inserting ``an interest in'' after ``transfer of'',
       (2) by striking ``such property'' and inserting ``such real 
     property'', and
       (3) by striking ``the interest'' and inserting ``such 
     interest''.

     SEC. 23. SETOFF.

       Section 553(b)(1) of title 11, United States Code, is 
     amended by striking ``362(b)(14)'' and inserting 
     ``362(b)(17)''.

     SEC. 24. DISPOSITION OF PROPERTY OF THE ESTATE.

       Section 726(b) of title 11, United States Code, is amended 
     by striking ``1009,''.

     SEC. 25. GENERAL PROVISIONS.

       Section 901(a) of title 11, United States Code, is amended 
     by inserting ``1123(d),'' after ``1123(b),''.

     SEC. 26. APPOINTMENT OF ELECTED TRUSTEE.

       Section 1104(b) of title 11, United States Code, is 
     amended--
       (1) by inserting ``(1)'' after ``(b)'', and
       (2) by adding at the end the following new paragraph:
       ``(2)(A) If an eligible, disinterested trustee is elected 
     at a meeting of creditors under paragraph (1), the United 
     States trustee shall file a report certifying that election. 
     Upon the filing of a report under the preceding sentence--
       ``(i) the trustee elected under paragraph (1) shall be 
     considered to have been selected and appointed for purposes 
     of this section, and
       ``(ii) the service of any trustee appointed under 
     subsection (d) shall terminate.
       ``(B) In the case of any dispute arising out of an election 
     under subparagraph (A), the court shall resolve the 
     dispute.''.

     SEC. 27. ABANDONMENT OF RAILROAD LINE.

       Section 1170(e)(1) of title 11, United States Code, is 
     amended by striking ``section 11347'' and inserting ``section 
     11326(a)''.

     SEC. 28. CONTENTS OF PLAN.

       Section 1172(c)(1) of title 11, United States Code, is 
     amended by striking ``section 11347'' and inserting ``section 
     11326(a)''.

     SEC. 29. DISCHARGE.

       Subsections (a) and (c) of section 1228 of title 11, United 
     States Code, are amended by striking ``1222(b)(10)'' each 
     place it appears and inserting ``1222(b)(9)''.

     SEC. 30. CONTENTS OF PLAN.

       Section 1322 of title 11, United States Code, is amended--
       (1) in subsection (b) by striking ``(c)'' and inserting 
     ``(d)'', and
       (2) in subsection (e) by striking ``default, shall'' and 
     inserting ``default shall''.

     SEC. 31. DISCHARGE.

       Paragraphs (1), (2), and (3) of section 1328(a) of title 
     11, United States Code, are amended to read as follows:
       ``(1) provided for under section 1322(b)(5) of this title;
       ``(2) of the kind specified in paragraph (5), (8), or (9) 
     of section 523(a) of this title; or
       ``(3) for restitution, or a criminal fine, included in a 
     sentence on the debtor's conviction of a crime.''.

     SEC. 32. BANKRUPTCY CASES AND PROCEEDINGS.

       Section 1334(d) of title 28, United States Code, is 
     amended--
       (1) by striking ``made under this subsection'' and 
     inserting ``made under subsection (c)'', and
       (2) by striking ``This subsection'' and inserting 
     ``Subsection (c) and this subsection''.

     SEC. 33. KNOWING DISREGARD OF BANKRUPTCY LAW OR RULE.

       Section 156(a) of title 18, United States Code, is 
     amended--
       (1) in the first undesignated paragraph--
       (A) by inserting ``(1) the term'' before `` `bankruptcy'', 
     and
       (B) by striking the period at the end and inserting ``; 
     and'', and
       (2) in the second undesignated paragraph--
       (A) by inserting ``(2) the term'' before `` `document'', 
     and
       (B) by striking ``this title'' and inserting ``title 11''.

     SEC. 34. 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 the enactment of this Act.
       (b) Application of Amendments.--The amendments made by this 
     Act shall apply only with respect to cases commenced under 
     title 11 of the United States Code on or after the date of 
     the enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Pennsylvania [Mr. Gekas] and the gentleman from Michigan [Mr. Conyers] 
each will control 20 minutes.
  The Chair recognizes the gentleman from Pennsylvania [Mr. Gekas].


                             General Leave

  Mr. GEKAS. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on the bill now under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Pennsylvania?
  There was no objection.
  Mr. GEKAS. Mr. Speaker, I yield myself such time as I may consume.
  The current bill, H.R. 764, the Bankruptcy Amendments of 1997, 
consists primarily of technical corrections which are intended to 
clarify original intent, correct drafting defects, and improve grammar 
and cross-references in the Bankruptcy Code. Many of these changes are 
occasioned by minor problems with the language in the Bankruptcy Reform 
Act of 1994, and will not change the results in future cases.
  There are also several more substantive provisions, limited in scope, 
designed to rectify shortcomings in current law. They are fully 
discussed in the committee report, and I will only briefly describe 
four provisions here.
  By amendment to section 101(51B) of the Bankruptcy Code, renumbered 
section 101(57), the present $4 million cap on single asset real estate 
is raised to $15 million. This will enable creditors in more cases to 
obtain expedited relief from the automatic stay's bar to foreclosure. 
This is provided for under section 362(d)(3) of the Bankruptcy Code.
  Section 101(54) of the Bankruptcy Code, renumbered section 101(66), 
is amended to define ``transfer'' as including the ``creation of a 
lien,'' which is in accord with a widely held understanding. This will 
protect a purchase money lender, who has recorded a deed of trust 
without knowledge of a bankruptcy filing, from the trustee's power to 
avoid certain post-petition property transfers.
  And, section 365(b) of the Bankruptcy Code is amended to give 
recognition to different policy considerations that are implicated, 
when there are incurable nonmonetary defaults, in the trustee's power 
to assume executory contracts and unexpired leases of the debtor.
  The Code is amended in section 523(a)(9) to provide, as is now the 
case with motor vehicles, that any debt for death or personal injury 
arising from a debtor's unlawful operation of a watercraft or aircraft 
while intoxicated is nondischargeable in bankruptcy.
  Mr. Speaker, it has been necessary to proceed with a manager's 
amendment to the bill as reported from the Committee on the Judiciary, 
primarily in

[[Page H10662]]

order to further clarify the amendment to section 365(b). This has been 
agreed to by both sides. The manager's amendment substitutes new 
language for section 11 of the bill as reported. The other 33 sections 
of the bill remain unchanged.
  Section 11(a) modifies the language of section 11, as reported, to 
clarify that when a trustee or debtor-in-possession is excused from 
curing a nonmonetary default under a real estate lease or executory 
contract as a condition to the assumption of the contract or lease, the 
creditor remains entitled to compensation for actual pecuniary loss 
resulting from the default and to adequate assurance of future 
performance.
  Section 11(b) amends section 1124(2) of the Bankruptcy Code to modify 
a cross-reference to reflect the clarification made by section 11(a), 
and to provide that the creditor remains entitled to compensation for 
actual pecuniary loss resulting from the default for purposes of 
determining when the creditor's claim or interest arising from the 
default is not impaired.
  Does the Speaker understand fully what I have just described here in 
the last 5 minutes? If not, Mr. Speaker, I urge the House to pass H.R. 
764, the Bankruptcy Amendments of 1997.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CONYERS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I want to commend the subcommittee Chairman, the 
gentleman from Pennsylvania [Mr. Gekas], and the ranking member, the 
gentleman from New York [Mr. Nadler], for working on this measure that 
was introduced by myself, and the gentleman from Illinois [Mr. Hyde], 
on the first day of the session, and they have been at it for quite a 
while.
  The long and short of the bankruptcy laws are that there are about 29 
technical corrections and about 5 substantive corrections. The 
gentleman from Pennsylvania [Mr. Gekas] has mentioned 4 of the 5, and I 
am in perfect agreement with him.
  We are now hopeful that the Senate will be able to meet with us as 
early as they can in the year and that we can work this to a favorable 
resolution, because there are more and more bankruptcy issues coming 
forward in the next year, the last term of this Congress.
  Now, I would like to raise to the Members' attention the fact that 
our colleague from Michigan [Mr. Ehlers] did us a singular honor by 
tracking a fifth circuit case that required amending, in which one 
distinguished judge was not able to distinguish that motor boats and 
airplanes are in the same category as automobiles, and we talk about 
nondischargeability, and he weighed in in a very important way to bring 
about the changes that the gentleman from Pennsylvania [Mr. Gekas] has 
referred to.
  All in all, this bill clarifies many outstanding issues that those 
who end up in bankruptcy matters, the judges, the trustees-in-
bankruptcy, and the whole bankruptcy bar has been looking to have 
resolved for many years. So I am pleased on behalf of the Democrats on 
the committee to join with the gentleman from Pennsylvania [Mr. Gekas] 
in urging that this measure, H.R. 764, be reported.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GEKAS. Mr. Speaker, I yield 3 minutes to the gentleman from 
Michigan [Mr. Ehlers].
  Mr. EHLERS. Mr. Speaker, first I want to thank the gentleman for 
yielding me this time to speak regarding section 10(2)(B) of this bill. 
This section would make nondischargeable through bankruptcy a debt 
incurred as a result of the operation of a boat or airplane while under 
the influence of alcohol.
  This section is taken from a bill I sponsored for several years and 
which the House passed unanimously last year, but which unfortunately 
did not receive action in the Senate. My bill, and this section of H.R. 
764, seeks to correct what I believe was a bill-drafting oversight 
involving our bankruptcy laws.
  Current law states that if an individual incurs a debt as a result of 
the operation of a motor vehicle under the influence of alcohol, they 
cannot have that debt discharged through a declaration of bankruptcy. 
Since this law was originally enacted, the courts have generally 
interpreted the statute's use of the term ``motor vehicle'' as meaning 
``automobile,'' although some courts have differed with that.
  Mr. Speaker, as we know, my home State of Michigan has an 
extraordinarily robust boating industry. Over the years we have worked 
hard on the State level, as have many other States, to make it 
perfectly clear that drunk boating is as serious a crime as drunk 
driving, and we have consistently written Michigan drunk driving laws 
to explicitly include drunk boating.
  The language in this section simply seeks to extend this notion of 
equal treatment of drunk driving and drunk boating to the Federal 
level, as it concerns our bankruptcy laws. Since the courts have ruled 
that the Bankruptcy Code, as it is currently written, may only refer to 
automobiles, we seek to specifically add watercraft to this section of 
the Bankruptcy Code.
  In addition, while it does not have the public profile of drunk 
driving and drunk boating, the operation of aircraft under the 
influence of alcohol and drugs has also been a problem, with far higher 
potential for injury and death. I might just mention parenthetically 
the airplane that crashed into the White House a few years ago when 
someone was flying under the influence of alcohol and drugs. This 
bill's language recognizes this and includes the drunk operation of 
aircraft as well.
  I want to note here that it is not my intention, nor do I believe 
that it is the intention of this committee presenting this bill, to 
include ``watercraft'' and ``aircraft'' in the definition of ``motor 
vehicle,'' but rather it is the intention to add ``watercraft'' and 
``aircraft'' to this section of the Bankruptcy Code exclusive of 
``motor vehicle,'' and I want the record to reflect this.
  Again, Mr. Speaker, while this issue may not garner a great deal of 
public attention, those that have been negatively impacted by the lack 
of clarity in this section of the Bankruptcy Code have suffered 
significantly by not being able to collect judgments that have been 
given them, and we ought to protect future victims of drunk boating and 
drunk flying by adopting the simple correction called for in this bill.
  Mr. CONYERS. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. GEKAS. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman from 
Michigan [Mr. Knollenberg].
  Mr. KNOLLENBERG. Mr. Speaker, I want to thank the chairman of the 
subcommittee, the gentleman from Pennsylvania [Mr. Gekas], for the work 
that he has done on this bill in fashioning it as he did and allowing 
my inclusion. What I would like to speak about is that H.R. 764 
includes a provision, and by the way, I do support this bill, includes 
a provision that addresses an injustice that exists within Title XI of 
the United States Code regarding single asset bankruptcies. This 
provision is similar to legislation that I introduced in H.R. 73, and I 
thank the entire committee again for bringing this bill to the floor 
today.
  The injustice within Title XI stems from an eleventh hour action, 
call it 11:59, during the 103d Congress that placed an arbitrary $4 
million ceiling on single asset provisions in the bill. The affect has 
been to render investors helpless in foreclosures on single assets that 
were valued over $4 million. H.R. 764 will provide some relief to 
victims of this arbitrary $4 million ceiling by raising the ceiling to 
$15 million.
  While I am glad to see we are moving in the right direction, I 
frankly believe we should eliminate the arbitrary ceiling altogether. 
Under this law, Chapter XI of the Bankruptcy Code serves as a legal 
shield for the debtor. 

                              {time}  2145

  While in Chapter 11, the debtor will continue to collect the rents on 
this commercial asset. There is a problem. The problem is that the 
commercial property will typically be left to deteriorate and the 
property taxes go unpaid. When the investor finally recovers the 
property through the delayed foreclosure, they owe an enormous amount 
of back taxes, they receive a commercial property left in deterioration 
which has lower rent value and lower resale value, and, meanwhile, the 
rent for all the months or years they were trying to retain the 
property went to an uncollectable debtor.
  It is also worth noting that H.R. 764 does not leave the debtor 
without protection. First, the investor brings a

[[Page H10663]]

foreclosure against a debtor only as a last resort; and, second, the 
debtor has up to 90 days to reorganize under Chapter 11.
  Mr. Speaker, I urge my colleagues to support H.R. 764. While I feel 
that we should eliminate the arbitrary ceiling on single-asset 
bankruptcies, this bill moves us in the right direction by making it 
harder for individuals to game the system.
  Mr. GEKAS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I thank our colleague, the gentleman from Michigan, for 
adding to the impetus of this legislation, and I thank the gentleman 
from Michigan and the gentleman from New York [Mr. Nadler] for their 
cooperation.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore [Mr. Calvert]. The question is on the motion 
offered by the gentleman from Pennsylvania [Mr. Gekas] that the House 
suspend the rules and pass the bill, H.R. 764, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________