[Congressional Record Volume 144, Number 128 (Wednesday, September 23, 1998)]
[Senate]
[Pages S10843-S10844]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

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                 CONSUMER BANKRUPTCY REFORM ACT OF 1998

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                        DODD AMENDMENT NO. 3614

  Mr. DODD 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, insert the following:
       Sec.   . Protection of Savings Earmarked for the 
     Postsecondary Education of Children.--Section 541(b) of title 
     11, United States Code, as amended by section 403 of this 
     Act, is amended--
       (1) in paragraph (6), by striking the period at the end and 
     inserting a semicolon; and
       (2) by inserting after paragraph (6) the following:
       ``(7) except as otherwise provided under applicable State 
     law, any funds placed in a qualified State tuition program 
     (as described in section 529(b) of the Internal Revenue Code 
     of 1986) at least 180 days before the date of entry of the 
     order for relief or
       ``(8) any funds placed in an education individual 
     retirement account (as defined in section 530(b)(1) of the 
     Internal Revenue Code of 1986) at least 180 days before the 
     date of entry of the order for relief.''.
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               FEINSTEIN (AND OTHERS) AMENDMENT NO. 3615

  Mrs. FEINSTEIN (for herself, Mr. Durbin, and Mr. Jeffords) proposed 
an amendment to the bill, S. 1301, supra; as follows:

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

     SEC.  . ENCOURAGING CREDITWORTHINESS.

       (2) Sense of the Congress.--It is the sense of the Congress 
     that--

[[Page S10844]]

       (a)(1) certain lenders may sometimes offer credit to 
     consumers indiscriminately, without taking steps to ensure 
     that consumers are capable of repaying the resulting debt, 
     and in a manner which may encourage certain consumers to 
     accumulate additional debt; and
       (2) resulting consumer debt may increasingly be a major 
     contributing factor to consumer insolvency.
       (b) Study Required.--The Board of Governors of the Federal 
     Reserve System (hereafter in this section referred to as the 
     ``Board'') shall conduct a study of--
       (1) consumer credit industry practices of soliciting and 
     extending credit--
       (A) indiscriminately;
       (B) without taking steps to ensure that consumer are 
     capable of repaying the resulting debt; and
       (C) in a manner that encourages consumers to accumulate 
     additional debt; and
       (2) the effects of such practices on consumer debt and 
     insolvency.
       (c) Report and Regulations.--Not later than 24 months after 
     the date of enactment of this Act, the Board--
       (1) shall make public a report on its findings with respect 
     to the credit industry's indiscriminate solicitation and 
     extension of credit;
       (2) may issue regulations that would require additional 
     disclosures to consumers; and
       (3) may take any other actions, consistent with its 
     existing statutory authority, that the Board finds necessary 
     to ensure responsible industrywide practices and to prevent 
     resulting consumer debt and insolvency.
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                 HARKIN (AND OTHERS) AMENDMENT NO. 3616

  Mr. HARKIN (for himself, Mr. Dorgan, Mr. Conrad, Mr. Wellstone, Mr. 
Bryan, and Mr. Kerrey) proposed an amendment to the bill, S. 1301, 
supra; as follows:

       At the appropriate place, insert the following:

     SEC. __. SENSE OF THE CONGRESS REGARDING INTEREST RATES.

       (a) Findings.--The Congress finds, as of the date of 
     enactment of this Act, that--
       (1) real interest rates are at historically high levels, 
     the highest in 9 years;
       (2) the Federal Funds rate is 5.5 percent, where it has 
     been since March 1997, despite an inflation rate of 1.6 
     percent:
       (3) between 1992 and 1994, the Federal Funds rate averaged 
     3.6 percent, while inflation was at 2.8 percent;
       (4) to confirm that real interest rates are historically 
     high, the Chairman of the Board of Governors of the Federal 
     Reserve System, Alan Greenspan, said during his Humphrey-
     Hawkins testimony before the Committee on Banking and 
     Financial Services of the House of Representatives on 
     February 24, 1998, ``Statistically, it is a fact that real 
     interest rates are higher now than they have been on the 
     average of the post-World War II period.'';
       (5) inflation over the 2 years preceding the date of 
     enactment of this Act was at its lowest level since the 
     1960's;
       (6) interest rates on 30 year Treasury bonds have sunk to 
     record lows and are below the Federal funds rate, a signal 
     that the United States economy could be headed for a 
     recession;
       (7) United States corporate earnings in the second quarter 
     of 1998 were down 1.3 percent from a year earlier;
       (8) a reduction in interest rates would increase resources 
     for business growth;
       (9) the farm debt is at its highest level since 1985, and 
     broad commodity price indexes are extremely low;
       (10) there are significant, widespread signs of global 
     deflation, to which the United States has not been exposed 
     since the Great Depression;
       (11) there has been a deterioration in a number of 
     economies around the world, which will negatively impact the 
     United States through fewer purchases of United States 
     exports and a greater influx of cheap imports to the United 
     States;
       (12) the United States economy is a large, healthy economic 
     engine, and if the United States economy does slow, it would 
     be exceedingly difficult for the world-wide economy to 
     recover;
       (13) a decline in equity values could dampen confidence and 
     slow consumer and business spending, which together 
     represents four-fifths of the United States economy;
       (14) a decline in United States interest rates would help 
     bolster the currencies of countries throughout the world 
     suffering from economic hardships; and
       (15) a reduction in interest rates would strengthen the 
     United States economy over the next year while the world's 
     weakened economies recover.
       (b) Sense of the Congress.--It is the sense of the Congress 
     that the Federal Open Market Committee should promptly reduce 
     the Federal Funds rate.
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                      GRASSLEY AMENDMENT NO. 3617

  Mr. GRASSLEY proposed an amendment to the bill, S. 1301, supra; as 
follows:

     SEC.   . TREASURY DEPARTMENT STUDY REGARDING SECURITY 
                   INTERESTS UNDER AN OPEN END CREDIT PLAN.

       (a) Within 180 days of the enactment of this Act, the 
     Federal Reserve Board in consultation with the Treasury 
     Department, the general credit industry, and consumer groups, 
     shall prepare a study regarding the adequacy of information 
     received by consumers regarding the creation of security 
     interests under open end credit plans.
       (b) Findings.--This study shall include the Board's 
     findings regarding:
       (1) whether consumers understand at the time of purchase of 
     property under an open end credit plan that such property may 
     serve as collateral under that credit plan;
       (2) whether consumers understand at the time of purchase 
     the legal consequences of disposing of property that is 
     purchased under an open credit plan and is subject to a 
     security interest under than plan; and
       (3) whether creditors holding security interests in 
     property purchased under an open end credit plan use such 
     security interests to cover reaffirmations of existing debts 
     under section 524 of the United States Bankruptcy Code.
       In formulating these findings, the Board shall consider, 
     among other factors it deems relevant, prevailing industry 
     practices in this area.
       (c) Disclosure Recommendations.--This study shall also 
     include the Board's recommendations regarding the utility and 
     practicality of additional disclosures by credit card issuers 
     at the time of purchase regarding security interests under 
     open end credit plans, including, but not limited to:
       (1) disclosures of the specific property in which the 
     creditor will receive a security interest;
       (2) disclosures of the consequences of nonpayment of the 
     card balance, including how the security interest may be 
     enforced; and
       (3) disclosures of the process by which payments made on 
     the card will be credited with respect to the lien created by 
     the security contract and other debts on the card.
       (d) The Board shall submit this report to the Senate 
     Committee on the Judiciary, the Senate Committee on Banking, 
     Housing, and Urban Affairs, the House Committee on the 
     Judiciary, and the House Committee on Banking and Financial 
     Services within the time allotted by this section.
       Insert at an appropriate place:
       Section 546 of title 11, United States Code, is amended by 
     inserting at the end thereof--
       ``(I) Notwithstanding section 545(2) and (3) of this title, 
     the trustee may not avoid a warehouseman's lien for storage, 
     transportation or other costs incidental to the storage and 
     handling of goods, as provided by Section 7-209 of the 
     Uniform Commercial Code.''
       Insert at an appropriate place:
       Section 330(a) of Title 11 is amended:
       (1) in subsection (3)(A) after the word ``awarded'', by 
     inserting ``to an examiner, Chapter 11 trustee, or 
     professional person''; and
       (2) by adding at the end of subsection (3)(A) the 
     following:
       ``(3)(B) In determining the amount of reasonable 
     compensation to be awarded a trustee, the court shall treat 
     such compensation as a commission based on the results 
     achieved.''
       On page 59 of amendment 3595, after clause ``(v)'', insert 
     ``(vi) not unfair because excessive in amount based upon the 
     value of the collateral.''
       On page 60 of amendment 3595, after clause ``(iii)'' insert 
     ``(iv) the following statement: If your current rate is a 
     temporary introductory rate, your total costs may be 
     higher.''

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