[Congressional Record Volume 144, Number 125 (Friday, September 18, 1998)]
[Senate]
[Pages S10596-S10603]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                AMENDMENTS SUBMITTED--SEPTEMBER 17, 1998

                                 ______
                                 

                 CONSUMER BANKRUPTCY REFORM ACT OF 1998

                                 ______
                                 

                GRASSLEY (AND DURBIN) AMENDMENT NO. 3595

  Mr. GRASSLEY (for himself and Mr. Durbin) proposed an amendment to 
amendment No. 3559 proposed by Mr. Grassley to the bill (S. 1301) to 
amend title 11, United States Code, to provide for consumer bankruptcy 
protection, and for other purposes; as follows:

       (1) In section 102(a)(5) strike ``a party in interest'' and 
     insert ``only the judge, United States trustee, bankruptcy 
     administrator or panel trustee'';
       (2) In section 102(a)95) strike ``not''.
       Strike 317 and replace with:
       ``Not later than 180 days after the date of enactment of 
     this Act, the Federal Trade Commission shall promulgate 
     regulations defining ``household goods'' under Section 
     522(c)(3) in a manner suitable and appropriate for cases 
     under Title 11 of the United States Code. If new regulations 
     are not effective within 180 days of enactment of this Act, 
     then ``household goods'' under Section 522(c)(3) shall have 
     the meaning given that term in section 444.1(i) of Title 16, 
     of the Code of Federal Regulations, except that the term 
     shall also include any tangible personal property reasonably 
     necessary for the maintenance or support of a dependent 
     child.''
       At the end of Title III, insert:
       11 U.S.C. 507(a) to add a new section 507(a)(10) to read:
       ``Tenth, allowed claims for death or personal injury 
     resulting from the operation of a motor vehicle or vessel if 
     such operation was unlawful because the debtor was 
     intoxicated from using alcohol, a drug or another 
     substance.''
       Strike existing 315 and add the following:

     SEC. 315. NONDISCHARGEABLE DEBTS.

       Section 523(a) of title 11, United States Code, is amended 
     by inserting after paragraph (14) the following:
       ``(14A) incurred to pay a debt that is nondischargeable by 
     reason of section 727, 1141, 1228 (a) or (b), or 1328(b), or 
     any other provision of this subsection, where the debtor 
     incurred the debt to pay such a nondischargeable debt with 
     the intent to discharge in bankruptcy the newly-created 
     debt.''
       At the appropriate place in Title II, insert the following:

     SEC. ____. ENHANCED DISCLOSURE FOR CREDIT EXTENSIONS SECURED 
                   BY DWELLING.

       (a) Open-End Credit Extensions.--
       (1) Credit applications.--Section 127A(a)(13) of the Truth 
     in Lending Act (15 U.S.C. 1637a(a)(13)) is amended--
       (A) by striking ``consultation of tax advisor.--A statement 
     that the'' and inserting the following: ``tax 
     deductibility.--A statement that--
       ``(A) the''; and
       (B) by striking the period at the end and inserting the 
     following: ``; and
       ``(B) in any case in which the extension of credit exceeds 
     the fair market value of the dwelling, the interest on the 
     portion of the credit extension that is greater than the fair 
     market value of the dwelling is not tax deductible for 
     Federal income tax purposes.''.
       (2) Credit advertisements.--Section 147(b) of the Truth in 
     Lending Act (15   U.S.C. 1665b(b)) is amended--
       (A) by striking ``If any'' and inserting the following:
       ``(1) In general.--If any''; and
       (B) by adding at the end the following:
       ``(2) Credit in excess of fair market value.--Each 
     advertisement described in subsection (a) that relates to an 
     extension of credit that may exceed the fair market value of 
     the dwelling shall include a clear and conspicuous statement 
     that--
       ``(A) the interest on the portion of the credit extension 
     that is greater than the fair market value of the dwelling is 
     not tax deductible for Federal income tax purposes; and
       ``(B) the consumer may want to consult a tax advisor for 
     further information regarding the deductibility of interest 
     and charges.''.
       (b) Non-Open End Credit Extensions.--
       (1) Credit applications.--Section 128 of the Truth in 
     Lending Act (15 U.S.C. 1638) is amended--
       (A) in subsection (a), by adding at the end the following:
       ``(15) In the case of a consumer credit transaction that is 
     secured by the principal dwelling of the consumer, in which 
     the extension of credit may exceed the fair market value of 
     the dwelling, a clear and conspicuous statement that--
       ``(A) the interest on the portion of the credit extension 
     that is greater than the fair market value of the dwelling is 
     not tax deductible for Federal income tax purposes; and
       ``(B) the consumer should consult a tax advisor for further 
     information regarding the deductibility of interest and 
     charges.''; and
       (B) in subsection (b), by adding at the end the following:
       ``(3) In the case of a credit transaction described in 
     paragraph (15) of subsection (a), disclosures required by 
     that paragraph shall be made to the consumer at the time of 
     application for such extension of credit.''.
       (2) Credit advertisements.--Section 144 of the Truth in 
     Lending Act (15 U.S.C. 1664) is amended by adding at the end 
     the following:
       ``(e) Each advertisement to which this section applies that 
     relates to a consumer credit transaction that is secured by 
     the principal dwelling of a consumer in which the extension 
     of credit may exceed the fair market value of the dwelling 
     shall clearly and conspicuously state that--
       ``(1) the interest on the portion of the credit extension 
     that is greater than the fair market value of the dwelling is 
     not tax deductible for Federal income tax purposes; and
       ``(2) the consumer may want to consult a tax advisor for 
     further information regarding the deductibility of interest 
     and charges.''.
       This section shall become effective one year after the date 
     of enactment.
       At the appropriate place in Title II, insert the following:

     SEC. ____. DUAL-USE DEBIT CARD.

       (a) Consumer Liability.--
       (1) In general.--Section 909 of the Electronic Fund 
     Transfer Act (15 U.S.C. 1693g) is amended--
       (A) by redesignating subsections (b) through (e) as 
     subsections (d) through (g), respectively;
       (B) in subsection (a)--
       (i) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and indenting 
     appropriately;
       (ii) by inserting ``Cards Necessitating Unique 
     Identifier.--
       ``(1) In general.--'' after ``(a)'';
       (iii) by striking ``other means of access can be identified 
     as the person authorized to use it, such as by signature, 
     photograph,'' and inserting ``other means of access can be 
     identified as the person authorized to use it by a unique 
     identifier, such as a photograph, retina scan,''; and
       (iv) by striking ``Notwithstanding the foregoing,'' and 
     inserting the following:
       ``(2) Notification.--Notwithstanding paragraph (1),''; and
       (C) by inserting before subsection (d), as so designated by 
     this section, the following new subsections:
       ``(b) Cards Not Necessitating Unique Identifier.--A 
     consumer shall be liable for an unauthorized electronic fund 
     transfer only if--
       ``(1) the liability is not in excess of $50;
       ``(2) the unauthorized electronic fund transfer is 
     initiated by the use of a card that has been properly issued 
     to a consumer other than the person making the unauthorized 
     transfer as a means of access to the account of that consumer 
     for the purpose of initiating an electronic fund transfer;
       ``(3) the unauthorized electronic fund transfer occurs 
     before the card issuer has been notified that an unauthorized 
     use of the card has occurred or may occur as the result of 
     loss, theft, or otherwise; and
       ``(4) such unauthorized electronic fund transfer did not 
     require the use of a code or other unique identifier (other 
     than a signature), such as a photograph, fingerprint, or 
     retina scan.
       ``(c) Notice of Liability and Responsibility To Report Loss 
     of Card, Code, or Other Means of Access.--No consumer shall 
     be liable under this title for any unauthorized electronic 
     fund transfer unless the consumer has received in a timely 
     manner the notice required under section 905(a)(1), and any 
     subsequent notice required under section 905(b) with regard 
     to any change in the information which is the subject of the 
     notice required under section 905(a)(1).''.
       (2) Conforming amendment.--Section 905(a)(1) of the 
     Electronic Fund Transfer Act (15 U.S.C. 1693c(a)(1)) is 
     amended to read as follows:
       ``(1) the liability of the consumer for any unauthorized 
     electronic fund transfer and the requirement for promptly 
     reporting any loss, theft, or unauthorized use of a card, 
     code, or other means of access in order to limit the 
     liability of the consumer for any such unauthorized 
     transfer;''.
       (b) Validation Requirement for Dual-Use Debit Cards.--
       (1) In general.--Section 911 of the Electronic Fund 
     Transfer Act (15 U.S.C. 1693i) is amended--
       (A) by redesignating subsection (c) as subsection (d); and
       (B) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Validation Requirement.--No person may issue a card 
     described in subsection (a),

[[Page S10597]]

     the use of which to initiate an electronic fund transfer does 
     not require the use of a code or other unique identifier 
     other than a signature (such as a fingerprint or retina 
     scan), unless--
       ``(1) the requirements of paragraphs (1) through (4) of 
     subsection (b) are met; and
       ``(2) the issuer has provided to the consumer a clear and 
     conspicuous disclosure that use of the card may not require 
     the use of such code or other unique identifier.''.
       (2) Technical and conforming amendment.--Section 911(d) of 
     the Electronic Fund Transfer Act (15 U.S.C. 1993i(d)) (as 
     redesignated by subsection (a)(1) of this section) is amended 
     by striking ``For the purpose of subsection (b)'' and 
     inserting ``For purposes of subsections (b) and (c)''.
       On page 6, line 23 insert ``or United States Trustee'' 
     after ``trustee''.
       At the end of Title III:
       ``If requested by the United States trustee or a trustee 
     serving in the case, the debtor provide a document that 
     establishes the identity of the debtor, including a driver's 
     license, passport, or other document that contains a 
     photograph of the debtor and such other personal identifying 
     information relating to the debtor that establishes the 
     identity of the debtor.''.
       At the appropriate place in title VII, insert the 
     following:

     SEC. 7____. ROLLING STOCK EQUIPMENT.

       (a) In General.--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, and to enforce any of 
     its other rights or remedies under such security agreement, 
     lease, or conditional sale contract, to sell, lease, or 
     otherwise retain or dispose of such equipment, is not limited 
     or otherwise affected by any other provision of this title or 
     by any power of the court, except that that right to take 
     possession and enforce those other rights and remedies shall 
     be subject to section 362, if--
       ``(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 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;
       ``(ii) that occurs or becomes an event of default after the 
     date of commencement of the case and before the expiration of 
     such 60-day period is cured before the later of--
       ``(I) the date that is 30 days after the date of the 
     default or event of the default; or
       ``(II) the expiration of such 60-day period; and
       ``(iii) that occurs on or after the expiration of such 60-
     day period is cured in accordance with the terms of such 
     security agreement, lease, or conditional sale contract, if 
     cure is permitted under that agreement, lease, or conditional 
     sale contract.
       ``(2) The equipment described in this paragraph--
       ``(A) is rolling stock equipment or accessories used on 
     rolling stock equipment, including superstructures or racks, 
     that is subject to a security interest granted by, leased to, 
     or conditionally sold to a debtor; and
       ``(B) includes all records and documents relating to such 
     equipment that are required, under the terms of the security 
     agreement, lease, or conditional sale contract, that is to be 
     surrendered or returned by the debtor in connection with the 
     surrender or return of such equipment.
       ``(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)(1) In any case under this chapter, the trustee shall 
     immediately surrender and return to a secured party, lessor, 
     or conditional vendor, described in subsection (a)(1), 
     equipment described in subsection (a)(2), if at any time 
     after the date of commencement of the case under this chapter 
     such secured party, lessor, or conditional vendor is entitled 
     pursuant to subsection (a)(1) to take possession of such 
     equipment and makes a written demand for such possession of 
     the trustee.
       ``(2) At such time as the trustee is required under 
     paragraph (1) to surrender and return equipment described in 
     subsection (a)(2), any lease of such equipment, and any 
     security agreement or conditional sale contract relating to 
     such equipment, if such security agreement or conditional 
     sale contract is an executory contract, shall be deemed 
     rejected.
       ``(d) With respect to equipment first placed in service on 
     or prior to October 22, 1994, 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.
       ``(e) With respect to equipment first placed in service 
     after October 22, 1994, for purposes of this section, the 
     term `rolling stock equipment' includes rolling stock 
     equipment that is substantially rebuilt and accessories used 
     on such equipment.''.
       (b) Aircraft Equipment and Vessels.--Section 1110 of title 
     11, United States Code, is amended to read as follows:

     ``Sec. 1110. Aircraft equipment and vessels

       ``(a)(1) Except as provided in paragraph (2) and subject to 
     subsection (b), the right of a secured party with a security 
     interest in equipment described in paragraph (3), 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, and to 
     enforce any of its other rights or remedies, under such 
     security agreement, lease, or conditional sale contract, to 
     sell, lease, or otherwise retain or dispose of such 
     equipment, is not limited or otherwise affected by any other 
     provision of this title or by any power of the court.
       ``(2) The right to take possession and to enforce the other 
     rights and remedies described in paragraph (1) shall be 
     subject to section 362 if--
       ``(A) before the date that is 60 days after the date of the 
     order for relief under this chapter, the trustee, subject to 
     the approval of the court, agrees to perform all obligations 
     of the debtor 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;
       ``(ii) that occurs after the date of the order and before 
     the expiration of such 60-day period 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; and
       ``(iii) that occurs on or after the expiration of such 60-
     day period is cured in compliance with the terms of such 
     security agreement, lease, or conditional sale contract, if a 
     cure is permitted under that agreement, lease, or contract.
       ``(3) The equipment described in this paragraph--
       ``(A) is--
       ``(i) an aircraft, aircraft engine, propeller, appliance, 
     or spare part (as defined in section 40102 of title 49) that 
     is subject to a security interest granted by, leased to, or 
     conditionally sold to a debtor that, at the time such 
     transaction is entered into, holds an air carrier operating 
     certificate issued pursuant to chapter 447 of title 49 for 
     aircraft capable of carrying 10 or more individuals or 6,000 
     pounds or more of cargo; or
       ``(ii) a documented vessel (as defined in section 30101(1) 
     of title 46) that is subject to a security interest granted 
     by, leased to, or conditionally sold to a debtor that is a 
     water carrier that, at the time such transaction is entered 
     into, holds a certificate of public convenience and necessity 
     or permit issued by the Department of Transportation; and
       ``(B) includes all records and documents relating to such 
     equipment that are required, under the terms of the security 
     agreement, lease, or conditional sale contract, to be 
     surrendered or returned by the debtor in connection with the 
     surrender or return of such equipment.
       ``(4) 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 
     approval of the court, to extend the 60-day period specified 
     in subsection (a)(1).
       ``(c)(1) In any case under this chapter, the trustee shall 
     immediately surrender and return to a secured party, lessor, 
     or conditional vendor, described in subsection (a)(1), 
     equipment described in subsection (a)(3), if at any time 
     after the date of the order for relief under this chapter 
     such secured party, lessor, or conditional vendor is entitled 
     pursuant to subsection (a)(1) to take possession of such 
     equipment and makes a written demand for such possession to 
     the trustee.
       ``(2) At such time as the trustee is required under 
     paragraph (1) to surrender and return equipment described in 
     subsection (a)(3), any lease of such equipment, and any 
     security agreement or conditional sale contract relating to 
     such equipment, if such security agreement or conditional 
     sale contract is an executory contract, shall be deemed 
     rejected.
       ``(d) With respect to equipment first placed in service on 
     or before October 22, 1994, 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

[[Page S10598]]

     be treated as a lease for Federal income tax purposes; and
       ``(2) the term `security interest' means a purchase-money 
     equipment security interest.''.
       At the appropriate place in title VII, insert the 
     following:

     SEC. 7____. CURBING ABUSIVE FILINGS.

       (a) In General.--Section 362(d) of title 11, United States 
     Code, is amended--
       (1) in paragraph (2), by striking ``or'' at the end;
       (2) in paragraph (3), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(4) with respect to a stay of an act against real 
     property under subsection (a), by a creditor whose claim is 
     secured by an interest in such real estate, if the court 
     finds that the filing of the bankruptcy petition was part of 
     a scheme to delay, hinder, and defraud creditors that 
     involved either--
       ``(A) transfer of all or part ownership of, or other 
     interest in, the real property without the consent of the 
     secured creditor or court approval; or
       ``(B) multiple bankruptcy filings affecting the real 
     property.

     If recorded in compliance with applicable State laws 
     governing notices of interests or liens in real property, an 
     order entered pursuant to this subsection shall be binding in 
     any other case under this title purporting to affect the real 
     property filed not later than 2 years after that recording, 
     except that a debtor in a subsequent case may move for relief 
     from such order based upon changed circumstances or for good 
     cause shown, after notice and a hearing.''.
       (b) Automatic Stay.--Section 362(b) of title 11, United 
     States Code, as amended by section 709, is amended--
       (1) in paragraph (24), by striking ``or'' at the end;
       (2) in paragraph (25) by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(26) under subsection (a) of this section, of any act to 
     enforce any lien against or security interest in real 
     property following the entry of an order under section 
     362(d)(4) as to that property in any prior bankruptcy case 
     for a period of 2 years after entry of such an order. The 
     debtor in a subsequent case, however, may move the court for 
     relief from such order based upon changed circumstances or 
     for other good cause shown, after notice and a hearing; or
       ``(27) under subsection (a) of this section, of any act to 
     enforce any lien against or security interest in real 
     property--
       ``(A) if the debtor is ineligible under section 109(g) to 
     be a debtor in a bankruptcy case; or
       ``(B) if the bankruptcy case was filed in violation of a 
     bankruptcy court order in a prior bankruptcy case prohibiting 
     the debtor from being a debtor in another bankruptcy case.''.
       At the appropriate place in title VII, insert the 
     following:

     SEC. 7____. STUDY OF OPERATION OF TITLE 11 OF THE UNITED 
                   STATES CODE WITH RESPECT TO SMALL BUSINESSES.

       Not later than 2 years after the date of the enactment of 
     this Act, the Administrator of the Small Business 
     Administration, in consultation with the Attorney General, 
     the Director of the Administrative Office of United States 
     Trustees, and the Director of the Administrative Office of 
     the United States Courts, shall--
       (1) conduct a study to determine--
       (A) the internal and external factors that cause small 
     businesses, especially sole proprietorships, to become 
     debtors in cases under title 11 of the United States Code and 
     that cause certain small businesses to successfully complete 
     cases under chapter 11 of such title; and
       (B) how Federal laws relating to bankruptcy may be made 
     more effective and efficient in assisting small businesses to 
     remain viable; and
       (2) submit to the President pro tempore of the Senate and 
     the Speaker of the House of Representatives a report 
     summarizing that study.
       After section 104(b)(3) add a new section 104(b)(4) 
     reading:
       ``The dollar amount in section 101(18) shall be adjusted at 
     the same times and in the same manner as the dollar amounts 
     in paragraph (1) of this subsection, beginning with the 
     adjustment to be made on April 1, 2001.''
       In section 101(19)(A) strike: ``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'' and replace it with:
       ``Such individual has had or such individual and spouse 
     have had more than 50 percent of her/his/their income from 
     such farming operation in at least one of the three calendar 
     years preceding the year in which the case concerning such 
     individual or such individual or spouse was filed.''
       After section 1225(b)(2) add a new section 1225(b)(3) 
     reading:
       If the plan provides for specific amounts of property to be 
     distributed on account of allowed unsecured claims as 
     required by paragraph (1)(b) of this subsection, those 
     amounts equal or exceed the debtor's projected disposable 
     income for that period, and the plan meets the requirements 
     for confirmation other than those of this subsection, the 
     plan shall be confirmed.
       After section 1229(c) add a new section 1229(d) reading:
       (1) A modification of the plan under this section may not 
     increase the amount of payments that were due prior to the 
     date of the order modifying the plan;
       (2) A modification of the plan under this section to 
     increase payments based on an increase in the debtor's 
     disposable income may not require payments to unsecured 
     creditors in any particular month greater than the debtor's 
     disposable income for that month unless the debtor proposes 
     such a modification;
       (3) A modification of the plan in the last year of the plan 
     shall not require payments that would leave the debtor with 
     insufficient funds to carry on the farming operation after 
     the plan is completed unless the debtor proposes such a 
     modification.
       At the end of the III, insert:

     SEC. 2____. PROTECTION OF RETIREMENT SAVINGS IN BANKRUPTCY.

       (a) In General.--Section 522 of title 11, United States 
     Code, is amended--
       (1) in subsection (b)--
       (A) in paragraph (2)--
       (i) by striking ``(2)(A) any property'' and inserting:
       ``(3) Property listed in this paragraph is--
       ``(A) any property'';
       (ii) in subparagraph (A), by striking ``and'' at the end;
       (iii) in subparagraph (B), by striking the period at the 
     end and inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(C) retirement funds to the extent that those funds are 
     in a fund or account that is exempt from taxation under 
     section 401, 403, 408, 408A, 414, 457, or 501(a) of the 
     Internal Revenue Code of 1986.'';
       (B) by striking paragraph (1) and inserting:
       ``(2) Property listed in this paragraph is property that is 
     specified under subsection (d) of this section, unless the 
     State law that is applicable to the debtor under paragraph 
     (3)(A) of this subsection specifically does not so 
     authorize.'';
       (C) in the matter preceding paragraph (2)--
       (i) by striking ``(b)'' and inserting ``(b)(1)'';
       (ii) by striking ``paragraph (2)'' both places it appears 
     and inserting ``paragraph (3)'';
       (iii) by striking ``paragraph (1)'' each place it appears 
     and inserting ``paragraph (2)''; and
       (iv) by striking ``Such property is--''; and
       (D) by adding at the end of the subsection the following:
       ``(4) For purposes of paragraph (3)(C), the following shall 
     apply:
       ``(A) If the retirement funds are in a retirement fund that 
     has received or is eligible to receive a favorable 
     determination pursuant to section 7805 of the Internal 
     Revenue Code of 1986, and that determination is in effect as 
     of the date of the commencement of the case under section 
     301, 302, or 303, those funds shall be presumed to be exempt 
     from the estate.
       ``(B) If the retirement funds are in a retirement fund that 
     is not eligible to receive a favorable determination pursuant 
     to such section 7805, those funds shall be presumed to be 
     exempt from the estate if--
       ``(i) no prior determination to the contrary has been made 
     by a court or the Internal Revenue Service; and
       ``(ii)(I) the retirement fund is in substantial compliance 
     with the applicable requirements of the Internal Revenue Code 
     of 1986; or
       ``(II) the retirement fund fails to be in substantial 
     compliance with such applicable requirements, the debtor is 
     not materially responsible for that failure.
       ``(C) A direct transfer of retirement funds from 1 fund or 
     account that is exempt from taxation under section 401, 403, 
     408, 408A, 414, 457, or 501(a) of the Internal Revenue Code 
     of 1986, pursuant to section 401(a)(31) of the Internal 
     Revenue Code of 1986, or otherwise, shall not cease to 
     qualify for exemption under paragraph (3)(C) by reason of 
     that direct transfer.
       ``(D)(i) Any distribution that qualifies as an eligible 
     rollover distribution within the meaning of section 402(c) of 
     the Internal Revenue Code of 1986 or that is described in 
     clause (ii) shall not cease to qualify for exemption under 
     paragraph (3)(C) by reason of that distribution.
       ``(ii) A distribution described in this clause is an amount 
     that--
       ``(I) has been distributed from a fund or account that is 
     exempt from taxation under section 401, 403, 408, 408A, 414, 
     457, or 501(a) of the Internal Revenue Code of 1986; and
       ``(II) to the extent allowed by law, is deposited in such a 
     fund or account not later than 60 days after the distribution 
     of that amount.''; and
       (2) in subsection (d)--
       (A) in the matter preceding paragraph (1), by striking 
     ``subsection (b)(1)'' and inserting ``subsection (b)(2)''; 
     and
       (B) by adding at the end the following:
       ``(12) Retirement funds to the extent that those funds are 
     in a fund or account that is exempt from taxation under 
     section 401, 403, 408, 408A, 414, 457, or 501(a) of the 
     Internal Revenue Code of 1986.''.
       (b) 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 and inserting 
     ``; or'';
       (3) by inserting after paragraph (18) the following:
       ``(19) under subsection (a), of withholding of income from 
     a debtor's wages and collection of amounts withheld, pursuant 
     to the debtor's agreement authorizing that withholding and 
     collection for the benefit of a

[[Page S10599]]

     pension, profit-sharing, stock bonus, or other plan 
     established under section 401, 403, 408, 408A, 414, 457, or 
     501(a) of the Internal Revenue Code of 1986 that is sponsored 
     by the employer of the debtor, or an affiliate, successor, or 
     predecessor of such employer--
       ``(A) to the extent that the amounts withheld and collected 
     are used solely for payments relating to a loan from a plan 
     that satisfies the requirements of section 408(b)(1) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1108(b)(1)); or
       ``(B) in the case of a loan from a thrift savings plan 
     described in subchapter III of title 5, that satisfies the 
     requirements of section 8433(g) of that title.''; and
       (4) by adding at the end of the flush material following 
     paragraph (19) the following: ``Paragraph (19) does not apply 
     to any amount owed to a plan referred to in that paragraph 
     that is incurred under a loan made during the 1-year period 
     preceding the filing of a petition. Nothing in paragraph (19) 
     may be construed to provide that any loan made under a 
     governmental plan under section 414(d) of the Internal 
     Revenue Code of 1986 constitutes a claim or a debt under this 
     title.''.
       (c) Exceptions To Discharge.--Section 523(a) of title 11, 
     United States Code, as amended by section 202, is amended--
       (1) by striking ``or'' at the end of paragraph (17);
       (2) by striking the period at the end of paragraph (18) and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(19) owed to a pension, profit-sharing, stock bonus, or 
     other plan established under section 401, 403, 408, 408A, 
     414, 457, or 501(c) of the Internal Revenue Code of 1986, 
     pursuant to--
       ``(A) a loan permitted under section 408(b)(1) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1108(b)(1)); or
       ``(B) a loan from the thrift savings plan described in 
     subchapter III of title 5, that satisfies the requirements of 
     section 8433(g) of that title.

     Paragraph (19) does not apply to any amount owed to a plan 
     referred to in that paragraph that is incurred under a loan 
     made during the 1-year period preceding the filing of a 
     petition. Nothing in paragraph (19) may be construed to 
     provide that any loan made under a governmental plan under 
     section 414(d) of the Internal Revenue Code of 1986 
     constitutes a claim or a debt under this title.''.
       (d) Plan Contents.--Section 1322 of title 11, United States 
     Code, is amended by adding at the end the following:
       ``(f) A plan may not materially alter the terms of a loan 
     described in section 362(b)(19).''.
       (e) Plan Confirmation.--Section 1325 of title 11, United 
     States Code, is amended--
       (1) in subsection (b)(2), in the matter preceding 
     subparagraph (A), by striking ``debtor and'' and inserting 
     ``debtor (not including income that is withheld from the 
     debtor's wages for the purposes described in section 
     362(b)(19)) and''; and
       (2) in subsection (c), by striking ``income to'' and 
     inserting ``income (except income that is withheld after 
     confirmation of a plan from a debtor's wages for the purposes 
     described in section 362(b)(19)) to''.
       On page 48, line 15, insert ``as amended by section 
     207(a)'' after ``Code,''.
       On page 48, line 17, strike ``(b)(2)(A)'' and insert 
     ``(b)(3)(A)''.
       On page 48, line 22, strike ``subsection (b)(2)(A)'' and 
     insert ``subsection (b)(3)(A)''.
       On page 62, line 20, insert ``, as amended by section 
     207(b),'' after ``362(b) of title 11, United States Code''.
       On page 62, line 22, strike ``(17)'' and insert ``(18)''.
       On page 62, line 24, strike ``(18)'' and insert ``(19)''.
       On page 63, line 1, strike ``by adding at the end the 
     following:'' and insert ``by inserting after paragraph (19) 
     the following:''.
       On page 63, line 2, strike ``(19)'' and insert ``(20)''.
       On page 63, line 6, strike ``(20)'' and insert ``(21)''.
       On page 80, strike lines 4 through 6, and insert the 
     following:
     ment;'';
       (D) in paragraph (20), by striking ``or'' at the end;
       (E) in paragraph (21), by striking the period and inserting 
     ``; or'';
       On page 80, line 7, strike ``(E)'' and insert ``(F)''.
       On page 80, line 9, strike ``(19)'' and insert (22)''.
       On page 80, line 21, strike ``(19)'' and insert (22)''.
       On page 131, line 3, strike ``section 326'' and insert 
     ``sections 326 and 401''.
       On page 50, line 7-8 strike ``chief judge'' and insert 
     ``United States Trustee or Bankruptcy Administrator''.
       On page 50, line 10, after ``not'' insert ``reasonably''.
       On page 50, line 14, strike ``chief judge'' and insert 
     ``United States Trustee or Bankruptcy Administrator''.
       On page 50, line 16, strike ``180 days'' and insert ``one 
     year''.
       On page 50, line 17-18, strike ``180 days'' and insert 
     ``one year''.
       In Section 312, in amended section 707(c)(3), strike ``20'' 
     and replace with ``50''.
       At the appropriate place in title IV, insert the following:

     SEC. 4  . FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS.

       Section 523(a)(16) of title 11, United States Code, is 
     amended--
       (1) by striking ``dwelling'' the first place it appears;
       (2) by striking ``ownership or'' and inserting 
     ``ownership,'';
       (3) by striking ``housing'' the first place it appears; and
       (4) by striking ``but only'' and all that follows through 
     ``such period,'', and inserting ``or a lot in a homeowners 
     association, for as long as the debtor or the trustee has a 
     legal, equitable, or possessory ownership interest in such 
     unit, such corporation, or such lot,''.
       At the appropriate place, insert the following new section:

     SEC.  . ENHANCED DISCLOSURES UNDER AN OPEN END CREDIT PLAN.

       (a) Amendments to the Truth in Lending Act.--
       (1) Enhanced disclosure of repayment terms.--
       (A) In general.--Section 127(b) of the Truth in Lending Act 
     (15 U.S.C. 1637(b)) is amended by adding at the end the 
     following:
       ``(11)(A) Repayment information that would apply to the 
     outstanding balance of the consumer under the credit plan in 
     a clear and conspicuous manner, including--
       ``(i) the required minimum monthly payment on that balance, 
     represented as both a dollar figure and as a percentage of 
     that balance,
       ``(ii) the number of months (rounded to the nearest month) 
     that it would take to pay the entire amount of that balance, 
     if the consumer pays only the required minimum monthly 
     payments and if no further advances are made;
       ``(iii) the total cost to the consumer, including interest 
     and principal payments, of paying that balance in full, if 
     the consumer pays only the required minimum monthly payments 
     and if no further advances are made.
       (B) Publication of model forms.--Not later than 180 days 
     after the date of enactment of this Act, the Board of 
     Governors of the Federal Reserve System shall publish model 
     disclosure forms in accordance with section 195 of the Truth 
     in Lending Act for the purpose of compliance with section 
     127(b)(II) of the Truth in Lending Act, as added by this 
     paragraph.
       (2) Enhanced disclosures in connection with 
     solicitations.--
       (A) In general.--Section 127(c)(I)(B) of the Truth in 
     Lending Act (15 U.S.C. 1637(c)(1)(B)) is amended by adding at 
     the end the following:
       ``(iv) Credit worksheet.--An easily understandable 
     worksheet designed to aid consumers in determining their 
     ability to assume more debt, including consideration of the 
     personal expenses of the consumer and a simple formula for 
     the consumer to determine whether the assumption of 
     additional debt is advisable.
       ``(v) Basis of preapproval.--In any case in which the 
     application or solicitation states that the consumer has been 
     preapproved for an account under an open end consumer credit 
     plan, the following statement clearly and conspicuously: 
     ``Your pre-approval for this credit card does not mean that 
     we have reviewed your individual financial circumstances. You 
     should review your own budget before accepting this offer of 
     credit.''.
       ``(vi) Availability of credit reports.--That the consumer 
     is entitled to a copy of his or her credit report, in 
     accordance with the Fair Credit Reporting Act.''.
       (B) Publication of model form.--Not later than 180 days 
     after the date of enactment of this Act, the Board of 
     Governors of the Federal Reserve System shall publish 
     worksheet forms in accordance with section 195 on the Truth 
     in Lending Act for the purpose of compliance with section 
     127(c)(1)(B)(iv) of the Truth in Lending Act, as added by 
     this paragraph. This section shall be effective no later than 
     January 1, 2001.
        Strike section 307 and insert:

     SEC. 307. AUDIT PROCEDURES.

        (a) Amendments.--Section 586 of title 28, United States 
     Code, is amended--
        (1) in subsection (a), as amended by section 301 of this 
     Act, by striking paragraph (6) and inserting the following:
        ``(6) make such reports as the Attorney General directs, 
     including the results of audits performed under subsection 
     (f); and''; and
        (2) by adding at the end the following: ``(f)(1)(A) The 
     Attorney General shall establish procedures to determine the 
     accuracy and completeness of petitions, schedules, and other 
     information which the debtor is required to provide under 
     sections 521 and 1322 of title 11, and, if applicable, 
     section 111 of title 11, in individual cases filed under 
     chapter 7 or 13 of such title.
       Those procedures shall--
        ``(i) establish a method of selecting appropriate 
     qualified persons to contract to perform those audits;
        ``(ii) establish a method of randomly selecting cases to 
     be audited, except that not less than 1 out of every 500 
     cases in each Federal judicial district shall be selected for 
     audit;
        ``(iii) require audits for schedules of income and 
     expenses which reflect greater than average variances from 
     the statistical norm of the district in which the schedules 
     were filed; and
        ``(iv) establish procedures for--
       providing, not less frequently than annually, public 
     information concerning the aggregate results of such audits 
     including the percentage of cases, by district, in which a

[[Page S10600]]

     material misstatement of income or expenditures is reported.
        ``(2) The United States trustee for each district is 
     authorized to contract with auditors to perform audits in 
     cases designated by the United States trustee according to 
     the procedures established under paragraph (1).
        (A) The report of each audit conducted under this 
     subsection shall be filed with the court and transmitted to 
     the United States trustee. Each report shall clearly and 
     conspicuously specify any material misstatement of income or 
     expenditures or of assets identified by the person performing 
     the audit. In any case where a material misstatement of 
     income or expenditures or of assets has been reported, the 
     clerk of the bankruptcy court shall give notice of the 
     misstatement to the creditors in the case.
        ``(B) If a material misstatement of income or expenditures 
     or of assets is reported the United States trustee shall--
        ``(i) report the material misstatement, if appropriate, to 
     the United States Attorney pursuant to section 3057 of title 
     18, United States Code;
        ``(ii) if advisable, take appropriate action, including 
     but not limited to commencing an adversary proceeding to 
     revoke the debtor's discharge pursuant to section 727(d) of 
     title 11, United States Code.
       (b) Amendments.--Section 521 of title 11, United States 
     Code is amended in subsections (3) and (4) by adding ``or an 
     auditor appointed pursuant to section 586 of title 28, United 
     States Code'' after ``serving in the case.''
       (c) Amendments.--Section 727(d) of title II, United States 
     Code is amended--
       (1) By deleting ``or'' at the end of paragraph (2);
       (2) By substituting ``; or'' for the period at the end of 
     paragraph (3); and
       (3) Adding the following at the end of paragraph (3)--
       ``(4) the debtor has failed to explain satisfactorily--
       ``(A) a material misstatement in an audit performed 
     pursuant to section 586(f) of title 28, United States Code; 
     or
       ``(B) a failure to make available for inspection all 
     necessary accounts, papers, documents, financial records, 
     files and all other papers, things, or property belonging to 
     the debtor that are requested for an audit conducted pursuant 
     to section 586(f) of title 28, United States Code.
       (d) Effective Date.--The amendments made by this section 
     shall take effect 18 months after the date of enactment of 
     this Act.
       In section 102, in the new section 707(j)(2)(A), strike 
     ``20'' and replace with ``30''.
       At the appropriate place in title II, insert the following:

     SEC. 2  . VIOLATIONS OF THE AUTOMATIC STAY

       (a) Sec. 362(a) is amended by adding after subsection (8) 
     the following:
       ``(9) any communication threatening a debtor, at any time 
     after the commitment and before the granting of a discharge 
     in a case under this title, an intention to file a motion to 
     determine the dischargeability of a debt, or to file a motion 
     under 11 U.S.C. Section 707(b) to dismiss or convert a case, 
     or to repossess collateral from the debtor to which the stay 
     applies.''
       At the appropriate place in title II, insert the following:

     SEC. 2  . DISCOURAGING ABUSIVE REAFFIRMATION PRACTICES.

       Sec. 524 of title 11, United States Code, is amended--
       (1) in subsection (c)(2)(B) by adding at the end the 
     following:
       ``(C) such agreement contains a clear and conspicuous 
     statement which advises the debtor what portion of the debt 
     to be reaffirmed is attributable to principal, interest, late 
     fees, creditor's attorneys fees, expenses or other costs 
     relating to the collection of the debt.''
       (2) in subsection (c)(6)(B), by inserting after ``real 
     property'' the following: ``or is a debt described in 
     subsection (c)(7).''
       (7) in a case concerning an individual, if the 
     consideration for such agreement is based in whole or in part 
     on an unsecured consumer debt, or is based in whole or in 
     part upon a debt for an item of personalty the value of which 
     at point of purchase was $250 or less, and in which the 
     creditor asserts a purchase money security interest, the 
     court approves such agreement as--
       (i) in the best interest of the debtor in light of the 
     debtor's income and expenses;
       (ii) not imposing an undue hardship on the debtor's future 
     ability of the debtor to pay for the needs of children and 
     other dependents (including court ordered support);
       (iii) not requiring the debtor to pay the creditor's 
     attorney's fees, expenses or other costs relating to the 
     collection of the debt;
       (iv) not entered into to protect property that is necessary 
     for the care and maintenance of children or other dependents 
     that would have nominal value on repossession;
       (v) not entered into after coercive threats or actions by 
     the creditor in the creditor's course of dealings with the 
     debtor.
       (3) in subsection (d)(2) by adding after ``subsections 
     (c)(6)'' ``and (c)(7)'', and after ``of this section,'' by 
     striking ``if the consideration for such agreement is based 
     in whole or in part on a consumer debt that is not secured by 
     real property of the debtor'' and adding at the end: ``as 
     applicable;''
       At the appropriate place insert the following:

     SEC.  . ENHANCED DISCLOSURES UNDER AN OPEN END CREDIT PLAN.

       (a) Amendments to the Truth in Lending Act.--
       (1) Enhanced Disclosure of Repayment Terms.--
       (A) In general.--Section 127(b) of the Truth in Lending Act 
     (15 U.S.C. 1637(b)) is amended by adding at the end the 
     following:
       ``(11)(A) In a clear and conspicuous manner, repayment 
     information that would apply to the outstanding balance of 
     the consumer under the credit plan, including--
       ``(i) the required minimum monthly payment on that balance, 
     represented as both a dollar figure and a percentage of that 
     balance;
       ``(ii) the number of months (rounded to the nearest month) 
     that it would take to pay the entire amount of that current 
     balance if the consumer pays only the required minimum 
     monthly payments and if no further advances are made; and
       ``(iii) the total cost to the consumer, including interest 
     and principal payments, of paying that balance in full if the 
     consumer pays only the required minimum monthly payments and 
     if no further advances are made.
       ``(B) In making the disclosures under subparagraph (A) the 
     creditor shall apply the annual interest rate that applies to 
     that balance with respect to the current billing cycle for 
     that consumer in effect on the date on which the disclosure 
     is made.
       (B) Publication of model forms.--Not later than 180 days 
     after the date of enactment of this Act, the Board of 
     Governors of the Federal Reserve System shall publish model 
     disclosure forms in accordance with Section 195 of the Truth 
     in Lending Act for the purpose of compliance with section 
     127(b)(11) of the Truth in Lending Act, as added by this 
     paragraph.
       (C) Civil liability.--Section 130(a) of the Truth in 
     Lending Act (15 U.S.C. 1640(a)) is amended, in the 
     undesignated paragraph following paragraph (4), by striking 
     the second sentence and inserting the following: ``In 
     connection with the disclosures referred to in subsections 
     (a) and (b) of section 1637 of this title, a creditor shall 
     have a liability determined under paragraph (2) only for 
     failing to comply with the requirements of section 1635, 
     1637(a), or of paragraphs (4), (5), (6), (7), (8), (9), (10), 
     or (11) of section 1637(b) or for failing to comply with 
     disclosure requirements under State law for any term or item 
     that the Board has determined to be substantially the same in 
     meaning under section 1610(a)(2) as any of the terms or items 
     referred to in section 1637(a), paragraph (4), (5), (6), (7), 
     (8), (9), (10), or (11) of section 1637(b) of this title.''
       (2) Disclosures in connection with solicitations.--
       (A) In general.--Section 127(c)(1)(B) of the Truth in 
     Lending Act (15 U.S.C. 1637(c)(1)(B) is amended by adding the 
     following:
       ``(iv) Credit worksheet.--An easily understandable credit 
     worksheet designed to aid consumers in determining their 
     ability to assume more debt, including consideration of the 
     personal expenses of the consumer and a simple formula for 
     the consumer to determine whether the assumption of 
     additional debt is advisable.
       (v) Basis of preapproval.--In any case in which the 
     application or solicitation states that the consumer has been 
     preapproved for an account under an open end consumer credit 
     plan, the following statement clearly and conspicuously: 
     ``Your pre-approval for this credit card does not mean that 
     we have reviewed your individual financial circumstances. You 
     should review your own budget before accepting this offer of 
     credit.''
       (vi) Availability of credit report.--That the consumer is 
     entitled to a copy of his or her credit report, in accordance 
     with the Fair Credit Reporting Act.''
       (B) Publication of model forms.--Not later than 180 days 
     after the date of enactment of this Act, the Board of 
     Governors of the Federal Reserve System shall publish model 
     disclosure forms in accordance with Section 195 of the Truth 
     in Lending Act for the purpose of compliance with section 
     127(c)(1)(B) of the Truth in Lending Act, as amended by this 
     paragraph.
       (b) Effective Date.--The provisions of this section shall 
     become effective on January 1, 2001.
       Insert at an appropriate place:
       Amend 11 U.S.C. Section 1325(6)(a), insert, after 
     ``received by the debtor,'' ``(other than child support 
     payments, foster care payments, or disability payments for a 
     dependent child made in accordance with applicable non-
     bankruptcy law and which is reasonably necessary (to be 
     expended)''.
       Insert at an appropriate place:
       11 U.S.C. 507(a) to add a new section 507(a)(10) to read:
       ``Tenth, allowed claims for injuries resulting from the 
     operation of a motor vehicle or vessel if such operation was 
     unlawful because the debtor was intoxicated from using 
     alcohol, a drug or another substance.''
       In 523(a)(9), insert ``or vessel'' after ``vehicle''.
       Strike sections 323 through 329 and insert the following:

     SEC. 323. DEFINITION OF DOMESTIC SUPPORT OBLIGATION.

       Section 101 of title 11, United States Code, as amended by 
     section 321(g) of this Act, is amended--
       (1) by striking paragraph (12A); and
       (2) by inserting after paragraph (14) the following:
       ``(14A) `domestic support obligation' means a debt (that 
     accrues before or after the entry of an order for relief 
     under this title) that is--

[[Page S10601]]

       ``(A) owed to or recoverable by--
       ``(i) a spouse, former spouse, or child of the debtor or 
     that child's legal guardian; or
       ``(ii) a governmental unit;
       ``(B) in the nature of alimony, maintenance, or support 
     (including assistance provided by a govermental unit) of such 
     spouse, former spouse, or child, without regard to whether 
     such debt is expressly so designated;
       ``(C) established or subject to establishment before or 
     after entry of an order for relief under this title, by 
     reason of applicable provisions of--
       ``(i) a separation agreement, divorce decree, or property 
     settlement agreement;
       ``(ii) an order of a court of record; or
       ``(iii) a determination made in accordance with applicable 
     nonbankruptcy law by a governmental unit; and
       ``(D) not assigned to a nongovernmental entity, unless that 
     obligation is assigned voluntarily by the spouse, former 
     spouse, child, or parent solely for the purpose of collecting 
     the debt.''.

     SEC. 324. PRIORITIES FOR CLAIMS FOR DOMESTIC SUPPORT 
                   OBLIGATIONS.

       Section 507(a) of title 11, United States Code, is 
     amended--
       (1) by striking paragraph (7);
       (2) by redesignating paragraphs (1) through (6) as 
     paragraphs (2) through (7), respectively;
       (3) in paragraph (2), as redesignated, by striking 
     ``First'' and inserting ``Second'';
       (4) in paragraph (3), as redesignated, by striking 
     ``Second'' and inserting ``Third'';
       (5) in paragraph (4), as redesignated, by striking 
     ``Third'' and inserting ``Fourth'';
       (6) in paragraph (5), as redesignated, by striking 
     ``Fourth'' and inserting ``Fifth'';
       (7) in paragraph (6), as redesignated, by striking 
     ``Fifth'' and inserting ``Sixth'';
       (8) in paragraph (7), as redesignated, by striking 
     ``Sixth'' and inserting ``Seventh''; and
       (9) by inserting before paragraph (2), as redesignated, the 
     following:
       ``(1) First, allowed claims for domestic support 
     obligations to be paid in the following order on the 
     condition that funds received under this paragraph by a 
     governmental unit in a case under this title be applied:
       ``(A) Claims that, as of the date of entry of the order for 
     relief, are owed directly to a spouse, former spouse, or 
     child of the debtor, or the parent of such child, without 
     regard to whether the claim is filed by the spouse, former 
     spouse, child, or parent, or is filed by a governmental unit 
     on behalf of that person.
       ``(B) Claims that, as of the date of entry of the order for 
     relief, are assigned by a spouse, former spouse, child of the 
     debtor, or the parent of that child to a governmental unit or 
     are owed directly to a governmental unit under applicable 
     nonbankruptcy law.''.

     SEC. 325. REQUIREMENTS TO OBTAIN CONFIRMATION AND DISCHARGE 
                   IN CASES INVOLVING DOMESTIC SUPPORT 
                   OBLIGATIONS.

       Title 11, United States Code, is amended--
       (1) in section 1129(a), by adding at the end the following:
       ``(14) If the debtor is required by a judicial or 
     administrative order or statute to pay a domestic support 
     obligation, the debtor has paid all amounts payable under 
     such order or statute for such obligation that become payable 
     after the date on which the petition is filed.'';
       (2) in section 1325(a)--
       (A) in paragraph (5), by striking ``and'' at the end;
       (B) in paragraph (6), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(7) if the debtor is required by a judicial or 
     administrative order or statute to pay a domestic support 
     obligation, the debtor has paid all amounts payable under 
     such order for such obligation that become payable after the 
     date on which the petition is filed.''; and
       (3) in section 1328(a), as amended by section 314 of this 
     Act, in the matter preceding paragraph (1), by inserting ``, 
     and with respect to a debtor who is required by a judicial or 
     administrative order to pay a domestic support obligation, 
     certifies that all amounts payable under such order or 
     statute that are due on or before the date of the 
     certification (including amounts due before or after the 
     petition was filed) have been paid'' after ``completion by 
     the debtor of all payments under the plan''.

     SEC. 326. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC SUPPORT 
                   OBLIGATION PROCEEDINGS.

       Section 362(b) of title 11, United States Code, is 
     amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) under subsection (a)--
       ``(A) of the commencement or continuation of an action or 
     proceeding for--
       ``(i) the establishment of paternity as a part of an effort 
     to collect domestic support obligations; or
       ``(ii) the establishment or modification of an order for 
     domestic support obligations; or
       ``(B) the collection of a domestic support obligation from 
     property that is not property of the estate;'';
       (2) in paragraph (17), by striking ``or'' at the end;
       (3) in paragraph (18), by striking the period at the end 
     and inserting a semicolon; and
       (4) by adding at the end the following:
       ``(19) under subsection (a) with respect to the withholding 
     of income pursuant to an order as specified in section 466(b) 
     of the Social Security Act (42 U.S.C. 666(b)); or
       ``(20) under subsection (a) with respect to--
       ``(A) the withholding, suspension, or restriction of 
     drivers' licenses, professional and occupational licenses, 
     and recreational licenses pursuant to State law, as specified 
     in section 466(a)(16) of the Social Security Act (42 U.S.C. 
     666(a)(16)) or with respect to the reporting of overdue 
     support owed by an absent parent to any consumer reporting 
     agency as specified in section 466(a)(7) of the Social 
     Security Act (42 U.S.C. 666(a)(7));
       ``(B) the interception of tax refunds, as specified in 
     sections 464 and 466(a)(3) of the Social Security Act (42 
     U.S.C. 664 and 666(a)(3)); or
       ``(C) the enforcement of medical obligations as specified 
     under title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.).''.

     SEC. 327. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY, 
                   MAINTENANCE, AND SUPPORT.

       (a) In General.--Section 523 of title 11, United States 
     Code, as amended by section 202 of this Act, is amended--
       (1) in subsection (a), by striking paragraph (5) and 
     inserting the following:
       ``(5) for a domestic support obligation;'';
       (2) in subsection (c), by striking ``(6), or (15)'' and 
     inserting ``or (6)''; and
       (3) in paragraph (15), by striking ``governmental unit'' 
     and all through the end of the paragraph and inserting a 
     semicolon.

     SEC. 328. CONTINUED LIABILITY OF PROPERTY.

       Section 522 of title 11, United States Code, is amended--
       (1) in subsection (c), by striking paragraph (1) and 
     inserting the following:
       ``(1) a debt of a kind specified in paragraph (1) or (5) of 
     section 523(a) (in which case, notwithstanding any provision 
     of applicable bankruptcy law to the contrary, such property 
     shall be liable for a debt of a kind specified in section 
     523(a)(5);''; and
       (2) in subsection (f)(1)(A), by striking the dash and all 
     that follows through the end of the subparagraph and 
     inserting ``of a kind that is specified in section 523(a)(5); 
     or''.

     SEC. 329. PROTECTION OF DOMESTIC SUPPORT CLAIMS AGAINST 
                   PREFERENTIAL TRANSFER MOTIONS.

       Section 547(c)(7) of title 11, United States Code, is 
     amended to read as follows:
       ``(7) to the extent such transfer was a bona fide payment 
     of a debt for a domestic support obligation; or''.

     SEC. 709. AUTOMATIC STAY.

       Section 362(b) of title 11, United States Code, as amended 
     by section 326 of this Act, is amended--
       (1) in paragraph (21), by striking ``or'' at the end;
       (2) in paragraph (22), by striking the period at the end 
     and inserting a semicolon; and
       (3) by inserting after paragraph (22) the following:
       ``(23) under subsection (a) of this section of any transfer 
     that is not avoidable under section 544 and that is not 
     avoidable under section 549;
       ``(24) under subsection (a)(3) of this section, of the 
     continuation of any eviction, unlawful detainer action, or 
     similar proceeding by a lessor against a debtor involving 
     residential real property in which the debtor resides as a 
     tenant under a rental agreement and the debtor has not paid 
     rent to the lessor pursuant to the terms of the lease 
     agreement or applicable state law after the commencement and 
     during the course of the case; or
       ``(25) under subsection (a)(3) of this section, of the 
     commencement or continuation of any eviction, unlawful 
     detainer action, or similar proceeding by a lessor against a 
     debtor involving residential real property in which the 
     debtor resides as a tenant under a rental agreement that has 
     terminated pursuant to the lease agreement or applicable 
     State law.''.
       (26) under subsection (a)(3) of this section, of any 
     eviction, unlawful detainer action, or similiar proceeding, 
     if the debtor has previously filed within the last year and 
     failed to pay post-petition rent during the course of that 
     case.
       (27) under subsection (a)(3) of this section, of eviction 
     actions based on endangerment to property or person or the 
     use of illegal drugs.
       At the appropriate place in title VII, insert the 
     following:

     SEC. 7____. TRANSFERS MADE BY NONPROFIT CHARITABLE 
                   CORPORATIONS.

       (a) Sale of Property of Estate.--Section 363(d) of title 
     11, United States Code, is amended--
       (1) by striking ``only'' and all that follows through the 
     end of the subsection and inserting ``only--
       ``(1) in accordance with applicable nonbankruptcy law that 
     governs the transfer of property by a corporation or trust 
     that is not a moneyed, business, or commercial corporation or 
     trust; and
       ``(2) to the extent not inconsistent with any relief 
     granted under subsection (c), (d), (e), or (f) of section 
     362''.
       (b) Confirmation of Plan for Reorganization.--Section 
     1129(a) of title 11, United States Code, is amended by adding 
     at the end the following:
       ``(14) All transfers of property of the plan shall be made 
     in accordance with any applicable provisions of nonbankruptcy 
     law that govern the transfer of property by a corporation or 
     trust that is not a moneyed, business, or commercial 
     corporation or trust.''.
       (c) Transfer of Property.--Section 541 of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(e) Notwithstanding any other provision of this title, 
     property that is held by a debtor that is a corporation 
     described in section

[[Page S10602]]

     501(c)(3) of the Internal Revenue Code of 1986 and exempt 
     from tax under section 501(a) of such Code may be transferred 
     to an entity that is not such a corporation, but only under 
     the same conditions as would apply if the debtor had not 
     filed a case under this title.''.
       (d) Applicability.--The amendments made by this section 
     shall apply to a case pending under title 11, United States 
     Code, on the date of enactment of this Act, except that the 
     court shall not confirm a plan under Chapter 11 of this title 
     without considering whether this section would substantially 
     affect the rights of a party in interest who first acquired 
     rights with respect to the debtor after the date of the 
     petition. The parties who may appear and be heard in a 
     proceeding under this section include the attorney general of 
     the state in which the debtor is incorporated, was formed, or 
     does business.
                                 ______
                                 

                        REED AMENDMENT NO. 3596

  Mr. REED proposed an amendment to amendment No. 3559 proposed by Mr. 
Grassley to the bill (S. 1301) to amend title 11, United States Code, 
to provide for consumer bankruptcy protection, and for other purposes; 
as follows:

       At the appropriate place in title IV, insert the following:

     SEC. 4____. PROHIBITION ON CERTAIN ACTIONS FOR FAILURE TO 
                   INCUR FINANCE CHARGES.

       Section 106 of the Truth in Lending Act (15 U.S.C. 1605) is 
     amended by adding at the end the following:
       ``(g) Prohibition on Certain Actions for Failure To Incur 
     Finance Charges.--A creditor may not, solely because a 
     consumer has not incurred finance charges in connection with 
     an extension of credit--
       ``(1) refuse to renew or continue to offer the extension of 
     credit to that consumer; or
       ``(2) charge a fee to that consumer in lieu of a finance 
     charge.''.
                                 ______
                                 

                D'AMATO (AND OTHERS) AMENDMENT NO. 3597

  Mr. D'AMATO (for himself, Mr. Chafee, Mr. Dodd, Mr. Bryan, Ms. 
Moseley-Braun, and Mrs. Boxer) proposed an amendment to amendment No. 
3559 proposed by Mr. Grassley to the bill, S. 1301, supra; as follows:

       At the appropriate place, insert the following new section:

     SEC. ____. PROHIBITION OF CERTAIN ATM FEES.

       (a) Definition.--Section 903 of the Electronic Fund 
     Transfer Act (15 U.S.C. 1693a) is amended--
       (1) in paragraph (10), by striking ``and'' at the end;
       (2) in paragraph (11), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following new paragraphs:
       ``(12) the term `electronic terminal surcharge' means a 
     transaction fee assessed by a financial institution that is 
     the owner or operator of the electronic terminal; and
       ``(13) the term `electronic banking network' means a 
     communications system linking financial institutions through 
     electronic terminals.''.
       (b) Certain Fees Prohibited.--Section 905 of the Electronic 
     Fund Transfer Act (12 U.S.C. 1693c) is amended by adding at 
     the end the following new subsection:
       ``(d) Limitation on Fees.--With respect to a transaction 
     conducted at an electronic terminal, an electronic terminal 
     surcharge may not be assessed against a consumer if the 
     transaction--
       ``(1) does not relate to or affect an account held by the 
     consumer with the financial institution that is the owner or 
     operator of the electronic terminal; and
       ``(2) is conducted through a national or regional 
     electronic banking network.''.
                                 ______
                                 

                        DODD AMENDMENT NO. 3598

  Mr. DODD proposed an amendment to amendment No. 3559 proposed by Mr. 
Grassley to the bill, S. 1301, supra; as follows:

       At the appropriate place, insert the following new section:

     SEC. ____. EXTENSIONS OF CREDIT TO UNDERAGE CONSUMERS.

       (a) In General.--Section 127(c) of the Truth in Lending Act 
     (15 U.S.C. 1637(c)) is amended--
       (1) by redesignating paragraph (5) as paragraph (6); and
       (2) by inserting after paragraph (4) the following:
       ``(5) Applications from underage consumers.--
       ``(A) Prohibition on issuance.--No credit card may be 
     issued to, or open end credit plan established on behalf of, 
     a consumer who has not reached the age of 21 unless the 
     consumer has submitted a written application to the card 
     issuer that meets the requirements of subparagraph (B).
       ``(B) Application requirements.--An application to open a 
     credit card account by an individual who has not reached the 
     age of 21 as of the date of submission of the application 
     shall require--
       ``(i) the signature of the parent or guardian of the 
     consumer indicating joint liability for debts incurred by the 
     consumer in connection with the account before the consumer 
     has reached the age of 21; or
       ``(ii) submission by the consumer of financial information 
     indicating an independent means of repaying any obligation 
     arising from the proposed extension of credit in connection 
     with the account.''.
       (b) Regulatory Authority.--The Board of Governors of the 
     Federal Reserve System may issue such rules or publish such 
     model forms as it considers necessary to carry out section 
     127(c)(5) of the Truth in Lending Act, as amended by this 
     section.
                                 ______
                                 

                        KOHL AMENDMENT NO. 3599

  Mr. KOHL proposed an amendment to amendment No. 3559 proposed by Mr. 
Grassley to the bill, S. 3559, supra; as follows:

       At the appropriate place, insert the following new section:

     SEC. ____. SENSE OF THE SENATE REGARDING THE HOMESTEAD 
                   EXEMPTION.

       (a) Findings.--The Senate finds that--
       (1) one of the most flagrant abuses of the bankruptcy 
     system involves misuse of the homestead exemption, which 
     allows a debtor to exempt his or her home, up to a certain 
     value, as established by State law, from being sold off to 
     satisfy debts;
       (2) while the vast majority of States responsibly cap the 
     exemption at not more than $40,000, 5 States exempt homes 
     regardless of their value;
       (3) in the few States with unlimited homestead exemptions, 
     debtors can shield their assets in luxury homes while 
     legitimate creditors get little or nothing;
       (4) beneficiaries of the homestead exemption include 
     convicted insider traders and savings and loan criminals, 
     while shortchanged creditors include children, spouses, 
     governments, and banks; and
       (5) the homestead exemption should be capped at $100,000 to 
     prevent such high-profile abuses.
       (b)  Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) meaningful bankruptcy reform cannot be achieved without 
     capping the homestead exemption; and
       (2) bankruptcy reform legislation should include a cap of 
     $100,000 on the homestead exemption to the bankruptcy laws.
                                 ______
                                 

                 HATCH (AND OTHERS) AMENDMENT NO. 3600

  Mr. HATCH (for himself, Mr. Graham, Mr. Durbin, and Mr. Grassley) 
proposed an amendment to amendment No. 3559 proposed by Mr. Grassley to 
the bill, S. 3559, supra; as follows:

       On page 60, after line 22, insert the following:

     SEC. 2____. PROTECTION OF RETIREMENT SAVINGS IN BANKRUPTCY.

       (a) In General.--Section 522 of title 11, United States 
     Code, is amended--
       (1) in subsection (b)--
       (A) in paragraph (2)--
       (i) by striking ``(2)(A) any property'' and inserting:
       ``(3) Property listed in this paragraph is--
       ``(A) any property'';
       (ii) in subparagraph (A), by striking ``and'' at the end;
       (iii) in subparagraph (B), by striking the period at the 
     end and inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(C) retirement funds to the extent that those funds are 
     in a fund or account that is exempt from taxation under 
     section 401, 403, 408, 408A, 414, 457, or 501(a) of the 
     Internal Revenue Code of 1986 and which has not been pledged 
     or promised to any person in connection with any extension of 
     credit.'';
       (B) by striking paragraph (1) and inserting:
       ``(2) Property listed in this paragraph is property that is 
     specified under subsection (d) of this section, unless the 
     State law that is applicable to the debtor under paragraph 
     (3)(A) of this subsection specifically does not so 
     authorize.'';
       (C) in the matter preceding paragraph (2)--
       (i) by striking ``(b)'' and inserting ``(b)(1)'';
       (ii) by striking ``paragraph (2)'' both places it appears 
     and inserting ``paragraph (3)'';
       (iii) by striking ``paragraph (1)'' each place it appears 
     and inserting ``paragraph (2)''; and
       (iv) by striking ``Such property is--''; and
       (D) by adding at the end of the subsection the following:
       ``(4) For purposes of paragraph (3)(C), the following shall 
     apply:
       ``(A) If the retirement funds are in a retirement fund that 
     has received a favorable determination pursuant to section 
     7805 of the Internal Revenue Code of 1986, and that 
     determination is in effect as of the date of the commencement 
     of the case under section 301, 302, or 303, those funds shall 
     be presumed to be exempt from the estate.
       ``(B) If the retirement funds are in a retirement fund that 
     has not received a favorable determination pursuant to such 
     section 7805, those funds are to be exempt from the estate if 
     the debtor demonstrates that--
       ``(i) no prior determination to the contrary has been made 
     by a court or the Internal Revenue Service; and
       ``(ii)(I) the retirement fund is in substantial compliance 
     with the applicable requirements of the Internal Revenue Code 
     of 1986; or
       ``(II) the retirement fund fails to be in substantial 
     compliance with such applicable requirements, the debtor is 
     not materially responsible for that failure.
       ``(C) A direct transfer of retirement funds from 1 fund or 
     account that is exempt from taxation under section 401, 403, 
     408, 408A, 414,

[[Page S10603]]

     457, or 501(a) of the Internal Revenue Code of 1986, pursuant 
     to section 401(a)(31) of the Internal Revenue Code of 1986, 
     or otherwise, shall not cease to qualify for exemption under 
     paragraph (3)(C) by reason of that direct transfer.
       ``(D)(i) Any distribution that qualifies as an eligible 
     rollover distribution within the meaning of section 402(c) of 
     the Internal Revenue Code of 1986 or that is described in 
     clause (ii) shall not cease to qualify for exemption under 
     paragraph (3)(C) by reason of that distribution.
       ``(ii) A distribution described in this clause is an amount 
     that--
       ``(I) has been distributed from a fund or account that is 
     exempt from taxation under section 401, 403, 408, 408A, 414, 
     457, or 501(a) of the Internal Revenue Code of 1986; and
       ``(II) to the extent allowed by law, is deposited in such a 
     fund or account not later than 60 days after the distribution 
     of that amount.''; and
       (2) in subsection (d)--
       (A) in the matter preceding paragraph (1), by striking 
     ``subsection (b)(1)'' and inserting ``subsection (b)(2)''; 
     and
       (B) by adding at the end the following:
       ``(12) Retirement funds to the extent that those funds are 
     in a fund or account that is exempt from taxation under 
     section 401, 403, 408, 408A, 414, 457, or 501(a) of the 
     Internal Revenue Code of 1986.''.
       (b) 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 and inserting 
     ``; or'';
       (3) by inserting after paragraph (18) the following:
       ``(19) under subsection (a), of withholding of income from 
     a debtor's wages and collection of amounts withheld, pursuant 
     to the debtor's agreement authorizing that withholding and 
     collection for the benefit of a pension, profit-sharing, 
     stock bonus, or other plan established under section 401, 
     403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue 
     Code of 1986 that is sponsored by the employer of the debtor, 
     or an affiliate, successor, or predecessor of such employer--
       ``(A) to the extent that the amounts withheld and collected 
     are used solely for payments relating to a loan from a plan 
     that satisfies the requirements of section 408(b)(1) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1108(b)(1)); or
       ``(B) in the case of a loan from a thrift savings plan 
     described in subchapter III of title 5, that satisfies the 
     requirements of section 8433(g) of that title.''; and
       (4) by adding at the end of the flush material following 
     paragraph (19) the following: ``Paragraph (19) does not apply 
     to any amount owed to a plan referred to in that paragraph 
     that is incurred under a loan made during the 1-year period 
     preceding the filing of a petition. Nothing in paragraph (19) 
     may be construed to provide that any loan made under a 
     governmental plan under section 414(d) of the Internal 
     Revenue Code of 1986 constitutes a claim or a debt under this 
     title.''.
       (c) Exceptions To Discharge.--Section 523(a) of title 11, 
     United States Code, as amended by section 202, is amended--
       (1) by striking ``or'' at the end of paragraph (17);
       (2) by striking the period at the end of paragraph (18) and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(19) owed to a pension, profit-sharing, stock bonus, or 
     other plan established under section 401, 403, 408, 408A, 
     414, 457, or 501(c) of the Internal Revenue Code of 1986, 
     pursuant to--
       ``(A) a loan permitted under section 408(b)(1) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1108(b)(1)); or
       ``(B) a loan from the thrift savings plan described in 
     subchapter III of title 5, that satisfies the requirements of 
     section 8433(g) of that title.

     Paragraph (19) does not apply to any amount owed to a plan 
     referred to in that paragraph that is incurred under a loan 
     made during the 1-year period preceding the filing of a 
     petition. Nothing in paragraph (19) may be construed to 
     provide that any loan made under a governmental plan under 
     section 414(d) of the Internal Revenue Code of 1986 
     constitutes a claim or a debt under this title.''.
       (d) Plan Contents.--Section 1322 of title 11, United States 
     Code, is amended by adding at the end the following:
       ``(f) A plan may not materially alter the terms of a loan 
     described in section 362(b)(19).''.
       On page 48, line 15, insert ``as amended by section 
     207(a)'' after ``Code,''.
       On page 48, line 17, strike ``(b)(2)(A)'' and insert 
     ``(b)(3)(A)''.
       On page 48, line 22, strike ``subsection (b)(2)(A)'' and 
     insert ``subsection (b)(3)(A)''.
       On page 62, line 20, insert ``, as amended by section 
     207(b),'' after ``362(b) of title 11, United States Code''.
       On page 62, line 22, strike ``(17)'' and insert ``(18)''.
       On page 62, line 24, strike ``(18)'' and insert ``(19)''.
       On page 63, line 1, strike ``by adding at the end the 
     following:'' and insert ``by inserting after paragraph (19) 
     the following:''.
       On page 63, line 2, strike ``(19)'' and insert ``(20)''.
       On page 63, line 6, strike ``(20)'' and insert ``(21)''.
       On page 80, strike lines 4 through 6, and insert the 
     following:
     ment;'';
       (D) in paragraph (20), by striking ``or'' at the end;
       (E) in paragraph (21), by striking the period and inserting 
     ``; or'';
       On page 80, line 7, strike ``(E)'' and insert ``(F)''.
       On page 80, line 9, strike ``(19)'' and insert (22)''.
       On page 80, line 21, strike ``(19)'' and insert (22)''.
       On page 131, line 3, strike ``section 326'' and insert 
     ``sections 326 and 401''.

                          ____________________