[Congressional Record Volume 145, Number 62 (Monday, May 3, 1999)]
[Senate]
[Pages S4583-S4604]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN (for himself, Mr. Leahy, Mr. Kennedy, Mr. Feingold, 
        and Mr. Sarbanes):
  S. 945. A bill to amend title 11, United States Code, and for other 
purposes; to the Committee on the Judiciary.


                 consumer bankruptcy reform act of 1999

  Mr. DURBIN. Mr. President, today, joined by colleagues, Senator 
Leahy, Senator Kennedy, Senator Feingold and Senator Sarbanes, I am 
introducing the bankruptcy reform bill that passed the Senate last year 
by a vote of 97-1.

  A constant theme that has guided me throughout the consideration of 
bankruptcy legislation is balanced reform. You cannot have meaningful 
bankruptcy reform without addressing both sides of the problem--
irresponsible debtors and irresponsible creditors.
  Unfortunately, the bill we worked so hard to develop, was decimated 
in conference and the result was a one-sided bill designed to reward 
the credit industry and penalize American consumers. I could not 
support it. I hope this year will be different.
  The bankruptcy code is delicate balance. When you push one thing, 
almost invariably something else will give. For that reason, it is 
crucial for bankruptcy reform to be thoughtful and for the changes to 
be targeted and not create more problems than they attempt to solve.
  This year, Senator Grassley has introduced S.625, the bankruptcy 
reform bill of 1999. This bill has more similarities to last year's 
conference report than the bipartisan measure that passed the Senate 
last year by an overwhelming margin.
  The Durbin-Leahy bill is fairer. S.625 uses a means test adopted from 
IRS collection allowances. The test would require every debtor, 
regardless of income, who files for Chapter 7 bankruptcy to be 
scrutinized by the U.S. trustee to determine whether the filling is 
abusive. The bill creates a presumption that a case is abusive if a 
debtor can pay the lesser of 25% of unsecured nonpriority claims or 
$15,000 over 5 years. The IRS means test was designed for use on a case 
by case basis, not as an automatic template.
  In my home state, the average annual income for bankruptcy filers in 
the Central District of Illinois for 1998 was $20,448, yet the average 
amount of unsecured debt was $22,900. This figure shows that many 
filers were hopelessly insolvent. They owed more money on debt that had 
no collateral than their total income for the entire year. These 
debtors don't even come close to meeting the standards that would 
require them to convert their case to a chapter 13 case, but they will 
be forced to go through additional scrutiny at extra costs to everyone 
involved.

  In contrast, the Durbin-Leahy bill gives courts discretion to dismiss 
or convert a Chapter 7 bankruptcy case if the debtor can fund a Chapter 
13 repayment plan. One of the factors for the court to consider in 
making the decision is whether the debtor is capable of paying 30% of 
unsecured claims under a 3 year plan. This reform can address abuses 
without the complexity of certifying ability to pay in every case as 
required by S.625.
  The Durbin-Leahy bill is cheaper because every case does not go 
through means testing. By requiring the trustee to submit reports on 
all filers the cost to trustees is dramatically increased with little 
reward.
  The means test in S. 625 looks a lot like the means test in the House 
bill. We now know that the means test in the House bill would only 
apply to far less than 10% of Chapter 7 filings. A study released by 
the American Bankruptcy Institute found that by using the test from the 
House bill, 97% of sample Chapter 7 debtors had too little income to 
repay even 20% of their unsecured debts over five years. As a result, 
only 3% of the sample Chapter 7 filers had sufficient repayment 
capacity to be barred from Chapter 7 under the rigid means test. This 
means 100% of the filers would have to go through a process that would 
only apply to 3% of the cases.
  Beyond the administrative costs, there is the unneeded stress on poor 
families. According to the National Conference on Bankruptcy Judges, a 
review of surveys of Chapter 7 cases from 46 judicial districts in 33 
states reveals that the median gross annual income for the 3151 cases 
in 1998 was $21,540, some $15,000 lower than the 1997 national median 
income for all families in the United States. Yet, the median amount of 
unsecured nonpriority debt for these same debtors was $23,411. These 
people are insolvent, and forcing them to go through unnecessary hoops 
for little reward is unfair and ineffective.
  The Durbin-Leahy bill is more balanced. The Durbin-Leahy bill 
includes credit disclosures designed to help families understand their 
debt and prevent them from incurring debt which makes them financially 
vulnerable. Many families file for bankruptcy after a health crisis or 
some other catastrophic event that prevents them from paying their 
debts. For example, the survey conducted by the bankruptcy judges shows 
that on average over 25% of bankruptcy cases involve debtors with 
medical debts over $1000. By requiring more complete information for 
debtors, they can make better credit decisions and avoid bankruptcy 
altogether.
  The Durbin-Leahy bill addresses abusive creditor practices. The 
Durbin-Leahy bill protects the elderly from predatory lending 
practices. Much of our discussion concerning reform of the nation's 
bankruptcy laws has focused upon perceived abuses of the bankruptcy 
system by consumer debtors. Far less discussion has occurred with 
regard to abuses by creditors that help usher the nation's consumers 
into bankruptcy. I believe that abuses exist on both sides of the 
debtor-creditor relationship and that bankruptcy reform is incomplete 
if it fails to address documented abuses among creditors.
  Last year, I worked to protect elderly Americans by prohibiting a 
high-cost mortgage lender who extended credit in violation of the 
provisions of the Truth-In-Lending Act from collecting its claim in 
bankruptcy. If the lender has failed to comply with the requirements of 
the Truth-in-Lending Act for high-cost second mortgages, the lender 
will have absolutely no claim against the bankruptcy estate. This 
provision is not aimed at all lenders or at all second mortgages. 
Indeed, it is aimed only at the worst, most predatory, of these by and 
large worthy lenders. It is aimed only at practices that are already 
illegal and it does not deal with technical or immaterial violations of 
the Truth in Lending Act.
  Disallowing the claims of predatory lenders in bankruptcy cases will 
not end these predatory practices altogether. Yet it is one step we can 
take to curb creditor abuse in a situation where the lender bears 
primary responsibility for the deterioration of a consumer's financial 
situation.

[[Page S4584]]

  I encourage my Senate colleagues to join Senator Leahy and me in this 
effort. Bankruptcy reform must be balanced and must not create a nation 
of financial outlaws.
  Mr. President, I ask unanimous consent that a copy of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 945

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Consumer 
     Bankruptcy Reform Act of 1999''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                    TITLE I--NEEDS-BASED BANKRUPTCY

Sec. 101. Conversion.
Sec. 102. Dismissal or conversion.

        TITLE II--ENHANCED PROCEDURAL PROTECTIONS FOR CONSUMERS

Sec. 201. Allowance of claims or interests.
Sec. 202. Exceptions to discharge.
Sec. 203. Effect of discharge.
Sec. 204. Automatic stay.
Sec. 205. Discharge.
Sec. 206. Discouraging predatory lending practices.
Sec. 207. Enhanced disclosure for credit extensions secured by 
              dwelling.
Sec. 208. Dual-use debit card.
Sec. 209. Enhanced disclosures under an open end credit plan.
Sec. 210. Violations of the automatic stay.
Sec. 211. Discouraging abusive reaffirmation practices.
Sec. 212. Sense of Congress regarding the homestead exemption.
Sec. 213. Encouraging creditworthiness.
Sec. 214. Treasury Department study regarding security interests under 
              an open end credit plan.

  TITLE III--IMPROVED PROCEDURES FOR EFFICIENT ADMINISTRATION OF THE 
                           BANKRUPTCY SYSTEM

Sec. 301. Notice of alternatives.
Sec. 302. Fair treatment of secured creditors under chapter 13.
Sec. 303. Discouragement of bad faith repeat filings.
Sec. 304. Timely filing and confirmation of plans under chapter 13.
Sec. 305. Application of the codebtor stay only when the stay protects 
              the debtor.
Sec. 306. Improved bankruptcy statistics.
Sec. 307. Audit procedures.
Sec. 308. Creditor representation at first meeting of creditors.
Sec. 309. Fair notice for creditors in chapter 7 and 13 cases.
Sec. 310. Stopping abusive conversions from chapter 13.
Sec. 311. Prompt relief from stay in individual cases.
Sec. 312. Dismissal for failure to timely file schedules or provide 
              required information.
Sec. 313. Adequate time for preparation for a hearing on confirmation 
              of the plan.
Sec. 314. Discharge under chapter 13.
Sec. 315. Nondischargeable debts.
Sec. 316. Credit extensions on the eve of bankruptcy presumed 
              nondischargeable.
Sec. 317. Definition of household goods and antiques.
Sec. 318. Relief from stay when the debtor does not complete intended 
              surrender of consumer debt collateral.
Sec. 319. Adequate protection of lessors and purchase money secured 
              creditors.
Sec. 320. Limitation.
Sec. 321. Miscellaneous improvements.
Sec. 322. Bankruptcy judgeships.
Sec. 323. Definition of domestic support obligation.
Sec. 324. Priorities for claims for domestic support obligations.
Sec. 325. Requirements to obtain confirmation and discharge in cases 
              involving domestic support obligations.
Sec. 326. Exceptions to automatic stay in domestic support obligation 
              proceedings.
Sec. 327. Nondischargeability of certain debts for alimony, 
              maintenance, and support.
Sec. 328. Continued liability of property.
Sec. 329. Protection of domestic support claims against preferential 
              transfer motions.
Sec. 330. Protection of retirement savings in bankruptcy.
Sec. 331. Additional amendments to title 11, United States Code.
Sec. 332. Debt limit increase.
Sec. 333. Elimination of requirement that family farmer and spouse 
              receive over 50 percent of income from farming operation 
              in year prior to bankruptcy.
Sec. 334. Prohibition of retroactive assessment of disposable income.
Sec. 335. Amendment to section 1325 of title 11, United States Code.
Sec. 336. Protection of savings earmarked for the postsecondary 
              education of children.

                    TITLE IV--FINANCIAL INSTRUMENTS

Sec. 401. Bankruptcy Code amendments.
Sec. 402. Damage measure.
Sec. 403. Asset-backed securitizations.
Sec. 404. Prohibition on certain actions for failure to incur finance 
              charges.
Sec. 405. Fees arising from certain ownership interests.
Sec. 406. Bankruptcy fees.
Sec. 407. Applicability.

            TITLE V--ANCILLARY AND OTHER CROSS-BORDER CASES

Sec. 501. Amendment to add chapter 6 to title 11, United States Code.
Sec. 502. Amendments to other chapters in title 11, United States Code.

                        TITLE VI--MISCELLANEOUS

Sec. 601. Executory contracts and unexpired leases.
Sec. 602. Expedited appeals of bankruptcy cases to courts of appeals.
Sec. 603. Creditors and equity security holders committees.
Sec. 604. Repeal of sunset provision.
Sec. 605. Cases ancillary to foreign proceedings.
Sec. 606. Limitation.
Sec. 607. Amendment to section 546 of title 11, United States Code.
Sec. 608. Amendment to section 330(a) of title 11, United States Code.

                    TITLE VII--TECHNICAL CORRECTIONS

Sec. 701. Adjustment of dollar amounts.
Sec. 702. Extension of time.
Sec. 703. Who may be a debtor.
Sec. 704. Penalty for persons who negligently or fraudulently prepare 
              bankruptcy petitions.
Sec. 705. Limitation on compensation of professional persons.
Sec. 706. Special tax provisions.
Sec. 707. Effect of conversion.
Sec. 708. Automatic stay.
Sec. 709. Allowance of administrative expenses.
Sec. 710. Priorities.
Sec. 711. Exemptions.
Sec. 712. Exceptions to discharge.
Sec. 713. Effect of discharge.
Sec. 714. Protection against discriminatory treatment.
Sec. 715. Property of the estate.
Sec. 716. Preferences.
Sec. 717. Postpetition transactions.
Sec. 718. Technical amendment.
Sec. 719. Disposition of property of the estate.
Sec. 720. General provisions.
Sec. 721. Appointment of elected trustee.
Sec. 722. Abandonment of railroad line.
Sec. 723. Contents of plan.
Sec. 724. Discharge under chapter 12.
Sec. 725. Extensions.
Sec. 726. Bankruptcy cases and proceedings.
Sec. 727. Knowing disregard of bankruptcy law or rule.
Sec. 728. Rolling stock equipment.
Sec. 729. Curbing abusive filings.
Sec. 730. Study of operation of title 11 of the United States Code with 
              respect to small businesses.
Sec. 731. Transfers made by nonprofit charitable corporations.
Sec. 732. Effective date; application of amendments.

                    TITLE I--NEEDS-BASED BANKRUPTCY

     SEC. 101. CONVERSION.

       Section 706(c) of title 11, United States Code, is amended 
     by inserting ``or consents to'' after ``requests''.

     SEC. 102. DISMISSAL OR CONVERSION.

       (a) In General.--Section 707 of title 11, United States 
     Code, is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``Sec. 707. Dismissal of a case or conversion to a case under 
       chapter 13'';

     and
       (2) in subsection (b)--
       (A) by inserting ``(1)'' after ``(b)'';
       (B) in paragraph (1), as redesignated by subparagraph (A) 
     of this paragraph--
       (i) in the first sentence--

       (I) by striking ``but not'' and inserting ``or'';
       (II) by inserting ``, or, with the debtor's consent, 
     convert such a case to a case under chapter 13,'' after 
     ``consumer debts''; and
       (III) by striking ``substantial abuse'' and inserting 
     ``abuse''; and

       (ii) by striking ``There shall be a presumption in favor of 
     granting the relief requested by the debtor.''; and
       (C) by adding at the end the following:
       ``(2) In considering under paragraph (1) whether the 
     granting of relief would be an abuse of the provisions of 
     this chapter, the court shall consider whether--
       ``(A) under section 1325(b)(1), on the basis of the current 
     income of the debtor, the debtor could pay an amount greater 
     than or equal to 30 percent of unsecured claims that are not 
     considered to be priority claims (as determined under 
     subchapter I of chapter 5); or
       ``(B) the debtor filed a petition for the relief in bad 
     faith.
       ``(3)(A) If a panel trustee appointed under section 
     586(a)(1) of title 28 brings a motion for dismissal or 
     conversion under this subsection and the court grants that 
     motion and finds that the action of the counsel for the 
     debtor in filing under this chapter was not substantially 
     justified, the court shall order the counsel for the debtor 
     to reimburse the trustee for all reasonable costs in 
     prosecuting the motion, including reasonable attorneys' fees.

[[Page S4585]]

       ``(B) If the court finds that the attorney for the debtor 
     violated Rule 9011, at a minimum, the court shall order--
       ``(i) the assessment of an appropriate civil penalty 
     against the counsel for the debtor; and
       ``(ii) the payment of the civil penalty to the panel 
     trustee or the United States trustee.
       ``(C) In the case of a petition referred to in subparagraph 
     (B), the signature of an attorney shall constitute a 
     certificate that the attorney has--
       ``(i) performed a reasonable investigation into the 
     circumstances that gave rise to the petition; and
       ``(ii) determined that the petition--
       ``(I) is well grounded in fact; and
       ``(II) is warranted by existing law or a good faith 
     argument for the extension, modification, or reversal of 
     existing law and does not constitute an abuse under paragraph 
     (1).
       ``(4)(A) Except as provided in subparagraph (B) and 
     paragraph (5), the court may award a debtor all reasonable 
     costs in contesting a motion brought by a party in interest 
     (other than a panel trustee or United States trustee) under 
     this subsection (including reasonable attorneys' fees) if--
       ``(i) the court does not grant the motion; and
       ``(ii) the court finds that--
       ``(I) the position of the party that brought the motion was 
     not substantially justified; or
       ``(II) the party brought the motion solely for the purpose 
     of coercing a debtor into waiving a right guaranteed to the 
     debtor under this title.
       ``(B) A party in interest that has a claim of an aggregate 
     amount less than $1,000 shall not be subject to subparagraph 
     (A).
       ``(5)(A) Only the judge, United States trustee, bankruptcy 
     administrator, or panel trustee may bring a motion under this 
     subsection if the debtor and the debtor's spouse combined, as 
     of the date of the order for relief, have current monthly 
     total income equal to or less than the national median 
     household monthly income calculated on a monthly basis for a 
     household of equal size.
       ``(B) For purposes of subparagraph (A), for a household of 
     more than 4 individuals, the median monthly income for that 
     household shall be--
       ``(1) the median monthly income of a household of 4 
     individuals; plus
       ``(2) $583 for each additional member of that household.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     7 of title 11, United States Code, is amended by striking the 
     item relating to section 707 and inserting the following:

``707. Dismissal of a case or conversion to a case under chapter 13.''.

        TITLE II--ENHANCED PROCEDURAL PROTECTIONS FOR CONSUMERS

     SEC. 201. ALLOWANCE OF CLAIMS OR INTERESTS.

       Section 502 of title 11, United States Code, is amended by 
     adding at the end the following:
       ``(k)(1) The court may award the debtor reasonable 
     attorneys' fees and costs if, after an objection is filed by 
     a debtor, the court--
       ``(A)(i) disallows the claim; or
       ``(ii) reduces the claim by an amount greater than 20 
     percent of the amount of the initial claim filed by a party 
     in interest; and
       ``(B) finds the position of the party filing the claim is 
     not substantially justified.
       ``(2) If the court finds that the position of a claimant 
     under this section is not substantially justified, the court 
     may, in addition to awarding a debtor reasonable attorneys' 
     fees and costs under paragraph (1), award such damages as may 
     be required by the equities of the case.''.

     SEC. 202. EXCEPTIONS TO DISCHARGE.

       Section 523 of title 11, United States Code, is amended--
       (1) in subsection (a)(2)(A), by striking ``a false 
     representation'' and inserting ``a material false 
     representation upon which the defrauded person justifiably 
     relied''; and
       (2) by striking subsection (d) and inserting the following:
       ``(d)(1) Subject to paragraph (3), if a creditor requests a 
     determination of dischargeability of a consumer debt under 
     this section and that debt is discharged, the court shall 
     award the debtor reasonable attorneys' fees and costs.
       ``(2) In addition to making an award to a debtor under 
     paragraph (1), if the court finds that the position of a 
     creditor in a proceeding covered under this section is not 
     substantially justified, the court may award reasonable 
     attorneys' fees and costs under paragraph (1) and such 
     damages as may be required by the equities of the case.
       ``(3)(A) A creditor may not request a determination of 
     dischargeability of a consumer debt under subsection (a)(2) 
     if--
       ``(i) before the filing of the petition, the debtor made a 
     good faith effort to negotiate a reasonable alternative 
     repayment schedule (including making an offer of a reasonable 
     alternative repayment schedule); and
       ``(ii) that creditor refused to negotiate an alternative 
     payment schedule, and that refusal was not reasonable.
       ``(B) For purposes of this paragraph, the debtor shall have 
     the burden of proof of establishing that--
       ``(i) an offer made by that debtor under subparagraph 
     (A)(i) was reasonable; and
       ``(ii) the refusal to negotiate by the creditor involved to 
     was not reasonable.''.

     SEC. 203. EFFECT OF DISCHARGE.

       Section 524 of title 11, United States Code, is amended by 
     adding at the end the following:
       ``(i) The willful failure of a creditor to credit payments 
     received under a plan confirmed under this title (including a 
     plan of reorganization confirmed under chapter 11) in the 
     manner required by the plan (including crediting the amounts 
     required under the plan) shall constitute a violation of an 
     injunction under subsection (a)(2).
       ``(j) An individual who is injured by the failure of a 
     creditor to comply with the requirements for a reaffirmation 
     agreement under subsections (c) and (d), or by any willful 
     violation of the injunction under subsection (a)(2), shall be 
     entitled to recover--
       ``(1) the greater of--
       ``(A)(i) the amount of actual damages; multiplied by
       ``(ii) 3; or
       ``(B) $5,000; and
       ``(2) costs and attorneys' fees.''.

     SEC. 204. AUTOMATIC STAY.

       Section 362(h) of title 11, United States Code, is amended 
     to read as follows:
       ``(h)(1) An individual who is injured by any willful 
     violation of a stay provided in this section shall be 
     entitled to recover--
       ``(A) actual damages; and
       ``(B) reasonable costs, including attorneys' fees.
       ``(2) In addition to recovering actual damages, costs, and 
     attorneys' fees under paragraph (1), an individual described 
     in paragraph (1) may recover punitive damages in appropriate 
     circumstances.''.

     SEC. 205. DISCHARGE.

       Section 727 of title 11, United States Code, is amended--
       (1) in subsection (c), by adding at the end the following:
       ``(3)(A) A creditor may not request a determination of 
     dischargeability of a consumer debt under subsection (a) if--
       ``(i) before the filing of the petition, the debtor made a 
     good faith effort to negotiate a reasonable alternative 
     repayment schedule (including making an offer of a reasonable 
     alternative repayment schedule); and
       ``(ii) that creditor refused to negotiate an alternative 
     payment schedule, and that refusal was not reasonable.
       ``(B) For purposes of this paragraph, the debtor shall have 
     the burden of proof of establishing that--
       ``(i) an offer made by that debtor under subparagraph 
     (A)(i) was reasonable; and
       ``(ii) the refusal to negotiate by the creditor involved to 
     was not reasonable.''; and
       (2) by adding at the end the following:
       ``(f)(1) The court may award the debtor reasonable 
     attorneys' fees and costs in any case in which a creditor 
     files a motion to deny relief to a debtor under this section 
     and that motion--
       ``(A) is denied; or
       ``(B) is withdrawn after the debtor has replied.
       ``(2) If the court finds that the position of a party 
     filing a motion under this section is not substantially 
     justified, the court may assess against the creditor such 
     damages as may be required by the equities of the case.''.

     SEC. 206. DISCOURAGING PREDATORY LENDING PRACTICES.

       Section 502(b) of title 11, United States Code, is 
     amended--
       (1) in paragraph (8), by striking ``or'' at the end;
       (2) in paragraph (9), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(10) the claim is based on a secured debt if the creditor 
     has failed to comply with the requirements of subsection (a), 
     (b), (c), (d), (e), (f), (g), (h), or (i) of section 129 of 
     the Truth in Lending Act (15 U.S.C. 1639).''.

     SEC. 207. 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--

[[Page S4586]]

       (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.''.
       (c) Effective Date.--This section and the amendments made 
     by this section shall take effect 1 year after the date of 
     enactment of this Act.

     SEC. 208. 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 after subsection (a) 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), 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)''.

     SEC. 209. 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;
       ``(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; and
       ``(iv) the following statement: `If your current rate is a 
     temporary introductory rate, your total costs may be 
     higher.'.
       ``(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 105 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 127, a creditor shall have a liability 
     determined under paragraph (2) of this subsection only for 
     failing to comply with the requirements of section 125, 
     127(a), or of paragraph (4), (5), (6), (7), (8), (9), (10), 
     or (11) of section 127(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 111(a)(2) as any of the terms or items 
     referred to in section 127(a), or paragraph (4), (5), (6), 
     (7), (8), (9), (10), or (11) of section 127(b).''.
       (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 at 
     the end 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 must appear in a clear and 
     conspicuous manner: `Your preapproval 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 105 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.--This section and the amendments made 
     by this section shall take effect on January 1, 2001.

     SEC. 210. VIOLATIONS OF THE AUTOMATIC STAY.

       Section 362(a) of title 11, United States Code, is 
     amended--
       (1) in paragraph (7), by striking ``and'' at the end;
       (2) in paragraph (8), by striking the period and inserting 
     ``; and'';
       (3) by adding at the end the following:

[[Page S4587]]

       ``(9) any communication threatening a debtor, at any time 
     after the commencement and before the granting of a discharge 
     in a case under this title, of an intention--
       ``(A) to file a motion to determine the dischargeability of 
     a debt;
       ``(B) to file a motion under section 707(b) to dismiss or 
     convert the case; or
       ``(C) to repossess collateral from the debtor to which the 
     stay applies.''.

     SEC. 211. DISCOURAGING ABUSIVE REAFFIRMATION PRACTICES.

       Section 524 of title 11, United States Code, is amended--
       (1) in subsection (c)--
       (A) in paragraph (2)--
       (i) in subparagraph (A), by striking ``and'' at the end;
       (ii) in subparagraph (B), by adding ``and'' after the 
     semicolon; and
       (iii) by adding at the end the following:
       ``(C) such agreement contains a clear and conspicuous 
     statement that advises the debtor which portion of the debt 
     to be reaffirmed is attributable to--
       ``(i) principal;
       ``(ii) interest;
       ``(iii) late fees;
       ``(iv) creditor's attorneys fees; or
       ``(v) expenses or other costs relating to the collection of 
     the debt;'';
       (B) in paragraph (5), by striking ``and'' after the 
     semicolon;
       (C) in paragraph (6)--
       (i) in subparagraph (A), by striking the period and 
     inserting `` ; except that''; and
       (ii) by striking subparagraph (B) and inserting the 
     following:
       ``(B) to the extent that the debt is a consumer debt 
     secured by real property or is a debt described in paragraph 
     (7), subparagraph (A) shall not apply; and'';
       (E) by adding at the end the following:
       ``(7) in a case concerning an individual--
       ``(A)(i) if the consideration for such agreement is based 
     in whole or in part--
       ``(I) on an unsecured consumer debt; or
       ``(II) on a debt for an item of personalty with a value of 
     $250 or less at the point of purchase; and
       ``(ii) in which the creditor asserts a purchase money 
     security interest; and
       ``(B) if 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 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; and
       ``(vi) not unfair because excessive in amount based upon 
     the value of the collateral.''; and
       (2) in subsection (d)(2), by striking ``requirements of 
     subsection (c)(6) of this section 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 
     inserting ``applicable requirements of paragraphs (6) and (7) 
     of subsection (c)''.

     SEC. 212. SENSE OF CONGRESS REGARDING THE HOMESTEAD 
                   EXEMPTION.

       (a) Findings.--The Congress finds that--
       (1) one of the most flagrant abuses of the bankruptcy 
     system involves misuse of the homestead exemption under 
     section 522 of title 11, United States Code, which allows a 
     debtor to exempt the debtor's 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 receive 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 Congress.--It is the sense of the 
     Congress 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 under title 11, United 
     States Code.

     SEC. 213. ENCOURAGING CREDITWORTHINESS.

       (a) Sense of the Congress.--It is the sense of the Congress 
     that--
       (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 (referred to in this section 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 consumers 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 indiscriminate solicitation and extension of credit by 
     the credit industry;
       (2) may issue regulations that would require additional 
     disclosures to consumers in connection with extensions of 
     credit; 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.

     SEC. 214. TREASURY DEPARTMENT STUDY REGARDING SECURITY 
                   INTERESTS UNDER AN OPEN END CREDIT PLAN.

       (a) Study.--The Board of Governors of the Federal Reserve 
     System (hereafter in this section referred to as the 
     ``Board''), in consultation with the Secretary of the 
     Treasury, the general credit industry, and consumer groups, 
     shall conduct a study of the adequacy of information received 
     by consumers regarding the creation of security interests 
     under open end credit plans (as defined in the Truth in 
     Lending Act).
       (b) Findings.--The study required under subsection (a) 
     shall include the findings of the Board 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 end credit plan and is subject to a 
     security interest under that plan; and
       (3) whether creditors holding security interests in 
     property purchased under an open end credit plan use such 
     security interests to coerce reaffirmations of existing debts 
     under section 524 of title 11, United States Code.
       (c) Considerations.--In formulating the findings under 
     subsection (b), the Board shall consider, among other factors 
     the Board determines relevant, prevailing industry practices 
     in this area.
       (d) Disclosure Recommendations.--The study required under 
     subsection (a) shall include the recommendations of the Board 
     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--
       (1) disclosures of the specific property in which the 
     creditor will receive a security interest;
       (2) disclosures of the consequences of nonpayment of the 
     credit card balance, including how the security interest may 
     be enforced; and
       (3) disclosures of the process by which payments made under 
     the plan will be credited with respect to the lien created by 
     the security contract and other debts under the plan.
       (e) Submission of Report.--Not later than 180 days after 
     the date of enactment of this Act, the Board shall submit a 
     report of its findings under the study required by this 
     section to the Committee on the Judiciary of the Senate, the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate, the Committee on the Judiciary of the House of 
     Representatives, and the Committee on Banking and Financial 
     Services of the House of Representatives.

  TITLE III--IMPROVED PROCEDURES FOR EFFICIENT ADMINISTRATION OF THE 
                           BANKRUPTCY SYSTEM

     SEC. 301. NOTICE OF ALTERNATIVES.

       (a) In General.--Section 342 of title 11, United States 
     Code, is amended by striking subsection (b) and inserting the 
     following:
       ``(b) Before the commencement of a case under this title by 
     an individual whose debts are primarily consumer debts, that 
     individual shall be given or obtain (as required in section 
     521(a)(1), as part of the certification process under 
     subchapter 1 of chapter 5) a written notice prescribed by the 
     United States trustee for the district in which the petition 
     is filed under section 586 of title 28. The notice shall 
     contain the following:
       ``(1) A brief description of chapters 7, 11, 12, and 13 and 
     the general purpose, benefits, and costs of proceeding under 
     each of those chapters.
       ``(2) A brief description of services that may be available 
     to that individual from a credit counseling service that is 
     approved by the United States trustee or the bankruptcy 
     administrator for that district.''.
       (b) Debtor's Duties.--Section 521 of title 11, United 
     States Code, is amended--
       (1) by inserting ``(a)'' before ``The debtor

     shall--'';
       (2) by striking paragraph (1) and inserting the following:
       ``(1) file--
       ``(A) a list of creditors; and
       ``(B) unless the court orders otherwise--
       ``(i) a schedule of assets and liabilities;
       ``(ii) a schedule of current income and current 
     expenditures;
       ``(iii) a statement of the debtor's financial affairs and, 
     if applicable, a certificate--

[[Page S4588]]

       ``(I) of an attorney whose name is on the petition as the 
     attorney for the debtor or any bankruptcy petition preparer 
     signing the petition under section 110(b)(1) indicating that 
     such attorney or bankruptcy petition preparer delivered to 
     the debtor any notice required by section 342(b); or
       ``(II) if no attorney for the debtor is indicated and no 
     bankruptcy petition preparer signed the petition, of the 
     debtor that such notice was obtained and read by the debtor;

       ``(iv) copies of any Federal tax returns, including any 
     schedules or attachments, filed by the debtor for the 3-year 
     period preceding the order for relief;
       ``(v) copies of all payment advices or other evidence of 
     payment, if any, received by the debtor from any employer of 
     the debtor in the period 60 days prior to the filing of the 
     petition;
       ``(vi) a statement of the amount of projected monthly net 
     income, itemized to show how calculated; and
       ``(vii) a statement disclosing any reasonably anticipated 
     increase in income or expenditures over the 12-month period 
     following the date of filing;''; and
       (3) by adding at the end the following:
       ``(b)(1) At any time, a creditor, in the case of an 
     individual under chapter 7 or 13, may file with the court 
     notice that the creditor requests the petition, schedules, 
     and a statement of affairs filed by the debtor in the case 
     and the court shall make those documents available to the 
     creditor who requests those documents.
       ``(2) At any time, a creditor, in a case under chapter 13, 
     may file with the court notice that the creditor requests the 
     plan filed by the debtor in the case and the court shall make 
     that plan available to the creditor who requests that plan.
       ``(c) An individual debtor in a case under chapter 7 or 13 
     shall file with the court--
       ``(1) at the time filed with the taxing authority, all tax 
     returns, including any schedules or attachments, with respect 
     to the period from the commencement of the case until such 
     time as the case is closed;
       ``(2) at the time filed with the taxing authority, all tax 
     returns, including any schedules or attachments, that were 
     not filed with the taxing authority when the schedules under 
     subsection (a)(1) were filed with respect to the period that 
     is 3 years before the order for relief;
       ``(3) any amendments to any of the tax returns, including 
     schedules or attachments, described in paragraph (1) or (2); 
     and
       ``(4) in a case under chapter 13, a statement subject to 
     the penalties of perjury by the debtor of the debtor's income 
     and expenditures in the preceding tax year and monthly 
     income, that shows how the amounts are calculated--
       ``(A) beginning on the date that is the later of 90 days 
     after the close of the debtor's tax year or 1 year after the 
     order for relief, unless a plan has been confirmed; and
       ``(B) thereafter, on or before the date that is 45 days 
     before each anniversary of the confirmation of the plan until 
     the case is closed.
       ``(d)(1) A statement referred to in subsection (c)(4) shall 
     disclose--
       ``(A) the amount and sources of income of the debtor;
       ``(B) the identity of any persons responsible with the 
     debtor for the support of any dependents of the debtor; and
       ``(C) the identity of any persons who contributed, and the 
     amount contributed, to the household in which the debtor 
     resides.
       ``(2) The tax returns, amendments, and statement of income 
     and expenditures described in paragraph (1) shall be 
     available to the United States trustee, any bankruptcy 
     administrator, any trustee, and any party in interest for 
     inspection and copying, subject to the requirements of 
     subsection (e).
       ``(e)(1) Not later than 30 days after the date of enactment 
     of the Consumer Bankruptcy Reform Act of 1999, the Director 
     of the Administrative Office of the United States Courts 
     shall establish procedures for safeguarding the 
     confidentiality of any tax information required to be 
     provided under this section.
       ``(2) The procedures under paragraph (1) shall include 
     restrictions on creditor access to tax information that is 
     required to be provided under this section.
       ``(3) Not later than 1 year after the date of enactment of 
     the Consumer Bankruptcy Reform Act of 1999, the Director of 
     the Administrative Office of the United States Courts shall 
     prepare, and submit to Congress a report that--
       ``(A) assesses the effectiveness of the procedures under 
     paragraph (1); and
       ``(B) if appropriate, includes proposed legislation--
       ``(i) to further protect the confidentiality of tax 
     information; and
       ``(ii) to provide penalties for the improper use by any 
     person of the tax information required to be provided under 
     this section.
       ``(f) If requested by the United States trustee or a 
     trustee serving in the case, the debtor provides 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.''.
       (c) Title 28.--Section 586(a) of title 28, United States 
     Code, is amended--
       (1) in paragraph (5), by striking ``and'' at the end;
       (2) in paragraph (6), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(7) on or before January 1 of each calendar year, and 
     also not later than 30 days after any change in the nonprofit 
     debt counseling services registered with the bankruptcy 
     court, prescribe and make available on request the notice 
     described in section 342(b)(3) of title 11 for each district 
     included in the region.''.

     SEC. 302. FAIR TREATMENT OF SECURED CREDITORS UNDER CHAPTER 
                   13.

       (a) Restoring the Foundation for Secured Credit.--Section 
     1325(a) of title 11, United States Code, is amended--
       (1) in paragraph (5), by striking the matter preceding 
     subparagraph (A) and inserting the following:
       ``(5) with respect to an allowed claim provided for by the 
     plan that is secured under applicable nonbankruptcy law by 
     reason of a lien on property in which the estate has an 
     interest or is subject to a setoff under section 553--''; and
       (2) by adding at the end of the subsection the following 
     flush sentence:
     ``For purposes of paragraph (5), section 506 shall not apply 
     to a claim described in that paragraph.''.
       (b) Payment of Holders of Claims Secured by Liens.--Section 
     1325(a)(5)(B)(i) of title 11, United States Code, is amended 
     to read as follows:
       ``(B)(i) the plan provides that the holder of such claim 
     retain the lien securing such claim until the debt that is 
     the subject of the claim is fully paid for, as provided under 
     the plan; and''.
       (c) Determination of Secured Status.--Section 506 of title 
     11, United States Code, is amended by adding at the end the 
     following:
       ``(e) Subsection (a) shall not apply to an allowed claim to 
     the extent attributable in whole or in part to the purchase 
     price of personal property acquired by the debtor during the 
     90-day period preceding the date of filing of the 
     petition.''.

     SEC. 303. DISCOURAGEMENT OF BAD FAITH REPEAT FILINGS.

       Section 362(c) of title 11, United States Code, is 
     amended--
       (1) by inserting ``(1)'' before ``Except as'';
       (2) by striking ``(1) the stay'' and inserting ``(A) the 
     stay'';
       (3) by striking ``(2) the stay'' and inserting ``(B) the 
     stay'';
       (4) by striking ``(A) the time'' and inserting ``(i) the 
     time'';
       (5) by striking ``(B) the time'' and inserting ``(ii) the 
     time''; and
       (6) by adding at the end the following:
       ``(2) Except as provided in subsections (d) through (f), 
     the stay under subsection (a) with respect to any action 
     taken with respect to a debt or property securing such debt 
     or with respect to any lease shall terminate with respect to 
     the debtor on the 30th day after the filing of the later case 
     if--
       ``(A) a single or joint case is filed by or against an 
     individual debtor under chapter 7, 11, or 13; and
       ``(B) a single or joint case of that debtor (other than a 
     case refiled under a chapter other than chapter 7 after 
     dismissal under section 707(b)) was pending during the 
     preceding year but was dismissed.
       ``(3) If a party in interest so requests, the court may 
     extend the stay in a particular case with respect to 1 or 
     more creditors (subject to such conditions or limitations as 
     the court may impose) after providing notice and a hearing 
     completed before the expiration of the 30-day period 
     described in paragraph (2) only if the party in interest 
     demonstrates that the filing of the later case is in good 
     faith with respect to the creditors to be stayed.
       ``(4) A case shall be presumed to have not been filed in 
     good faith (except that such presumption may be rebutted by 
     clear and convincing evidence to the contrary)--
       ``(A) with respect to the creditors involved, if--
       ``(i) more than 1 previous case under any of chapters 7, 
     11, or 13 in which the individual was a debtor was pending 
     during the 1-year period described in paragraph (1);
       ``(ii) a previous case under any of chapters 7, 11, or 13 
     in which the individual was a debtor was dismissed within the 
     period specified in paragraph (2) after--
       ``(I) the debtor, after having received from the court a 
     request to do so, failed to file or amend the petition or 
     other documents as required by this title; or
       ``(II) the debtor, without substantial excuse, failed to 
     perform the terms of a plan that was confirmed by the court; 
     or
       ``(iii)(I) during the period commencing with the dismissal 
     of the next most previous case under chapter 7, 11, or 13 
     there has not been a substantial change in the financial or 
     personal affairs of the debtor;
       ``(II) if the case is a chapter 7 case, there is no other 
     reason to conclude that the later case will be concluded with 
     a discharge; or
       ``(III) if the case is a chapter 11 or 13 case, there is 
     not a confirmed plan that will be fully performed; and
       ``(B) with respect to any creditor that commenced an action 
     under subsection (d) in a previous case in which the 
     individual was a debtor, if, as of the date of dismissal of 
     that case, that action was still pending or had been resolved 
     by terminating, conditioning, or limiting the stay with 
     respect to actions of that creditor.
       ``(5)(A) If a request is made for relief from the stay 
     under subsection (a) with respect to real or personal 
     property of any kind, and the request is granted in whole or 
     in part, the court may, in addition to making any other order 
     under this subsection, order that the relief so granted shall 
     be in rem either--
       ``(i) for a definite period of not less than 1 year; or

[[Page S4589]]

       ``(ii) indefinitely.
       ``(B)(i) After an order is issued under subparagraph (A), 
     the stay under subsection (a) shall not apply to any property 
     subject to such an in rem order in any case of the debtor.
       ``(ii) If an in rem order issued under subparagraph (A) so 
     provides, the stay shall, in addition to being inapplicable 
     to the debtor involved, not apply with respect to an entity 
     under this title if--
       ``(I) the entity had reason to know of the order at the 
     time that the entity obtained an interest in the property 
     affected; or
       ``(II) the entity was notified of the commencement of the 
     proceeding for relief from the stay, and at the time of the 
     notification, no case in which the entity was a debtor was 
     pending.
       ``(6) For purposes of this section, a case is pending 
     during the period beginning with the issuance of the order 
     for relief and ending at such time as the case involved is 
     closed.''.

     SEC. 304. TIMELY FILING AND CONFIRMATION OF PLANS UNDER 
                   CHAPTER 13.

       (a) Filing of Plan.--Section 1321 of title 11, United 
     States Code, is amended to read as follows:

     ``Sec. 1321. Filing of plan

       ``The debtor shall file a plan not later than 90 days after 
     the order for relief under this chapter, except that the 
     court may extend such period if the need for an extension is 
     attributable to circumstances for which the debtor should not 
     justly be held accountable.''.
       (b) Confirmation of Hearing.--Section 1324 of title 11, 
     United States Code, is amended by adding at the end the 
     following: ``That hearing shall be held not later than 45 
     days after the filing of the plan, unless the court, after 
     providing notice and a hearing, orders otherwise.''.

     SEC. 305. APPLICATION OF THE CODEBTOR STAY ONLY WHEN THE STAY 
                   PROTECTS THE DEBTOR.

       Section 1301(b) of title 11, United States Code, is 
     amended--
       (1) by inserting ``(1)'' after ``(b)''; and
       (2) by adding at the end the following:
       ``(2)(A) Notwithstanding subsection (c) and except as 
     provided in subparagraph (B), in any case in which the debtor 
     did not receive the consideration for the claim held by a 
     creditor, the stay provided by subsection (a) shall apply to 
     that creditor for a period not to exceed 30 days beginning on 
     the date of the order for relief, to the extent the creditor 
     proceeds against--
       ``(i) the individual that received that consideration; or
       ``(ii) property not in the possession of the debtor that 
     secures that claim.
       ``(B) Notwithstanding subparagraph (A), the stay provided 
     by subsection (a) shall apply in any case in which the debtor 
     is primarily obligated to pay the creditor in whole or in 
     part with respect to a claim described in subparagraph (A) 
     under a legally binding separation or property settlement 
     agreement or divorce or dissolution decree with respect to--
       ``(i) an individual described in subparagraph (A)(i); or
       ``(ii) property described in subparagraph (A)(ii).
       ``(3) Notwithstanding subsection (c), the stay provided by 
     subsection (a) shall terminate as of the date of confirmation 
     of the plan, in any case in which the plan of the debtor 
     provides that the debtor's interest in personal property 
     subject to a lease with respect to which the debtor is the 
     lessee will be surrendered or abandoned or no payments will 
     be made under the plan on account of the debtor's obligations 
     under the lease.''.

     SEC. 306. IMPROVED BANKRUPTCY STATISTICS.

       (a) Amendment.--Chapter 6 of part I of title 28, United 
     States Code, is amended by adding at the end the following:

     ``Sec. 159. Bankruptcy statistics

       ``(a) The clerk of each district shall compile statistics 
     regarding individual debtors with primarily consumer debts 
     seeking relief under chapters 7, 11, and 13 of title 11. 
     Those statistics shall be in a form prescribed by the 
     Director of the Administrative Office of the United States 
     Courts (referred to in this section as the `Office').
       ``(b) The Director shall--
       ``(1) compile the statistics referred to in subsection (a);
       ``(2) make the statistics available to the public; and
       ``(3) not later than October 31, 1999, and annually 
     thereafter, prepare, and submit to Congress a report 
     concerning the information collected under subsection (a) 
     that contains an analysis of the information.
       ``(c) The compilation required under subsection (b) shall--
       ``(1) be itemized, by chapter, with respect to title 11;
       ``(2) be presented in the aggregate and for each district; 
     and
       ``(3) include information concerning--
       ``(A) the total assets and total liabilities of the debtors 
     described in subsection (a), and in each category of assets 
     and liabilities, as reported in the schedules prescribed 
     under section 2075 of this title and filed by those debtors;
       ``(B) the current total monthly income, projected monthly 
     net income, and average income and average expenses of those 
     debtors as reported on the schedules and statements that each 
     such debtor files under sections 111, 521, and 1322 of title 
     11;
       ``(C) the aggregate amount of debt discharged in the 
     reporting period, determined as the difference between the 
     total amount of debt and obligations of a debtor reported on 
     the schedules and the amount of such debt reported in 
     categories which are predominantly nondischargeable;
       ``(D) the average period of time between the filing of the 
     petition and the closing of the case;
       ``(E) for the reporting period--
       ``(i) the number of cases in which a reaffirmation was 
     filed; and
       ``(ii)(I) the total number of reaffirmations filed;
       ``(II) of those cases in which a reaffirmation was filed, 
     the number in which the debtor was not represented by an 
     attorney; and
       ``(III) of those cases, the number of cases in which the 
     reaffirmation was approved by the court;
       ``(F) with respect to cases filed under chapter 13 of title 
     11, for the reporting period--
       ``(i)(I) the number of cases in which a final order was 
     entered determining the value of property securing a claim in 
     an amount less than the amount of the claim; and
       ``(II) the number of final orders determining the value of 
     property securing a claim issued;
       ``(ii) the number of cases dismissed for failure to make 
     payments under the plan; and
       ``(iii) the number of cases in which the debtor filed 
     another case within the 6 years previous to the filing; and
       ``(G) the extent of creditor misconduct and any amount of 
     punitive damages awarded by the court for creditor 
     misconduct.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     6 of title 28, United States Code, is amended by adding at 
     the end the following:

``159. Bankruptcy statistics.''.

       (c) Effective Date.--The amendments made by this section 
     shall take effect 18 months after the date of enactment of 
     this Act.

     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.
       ``(B) 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 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).
       ``(3)(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 under section 3057 of title 18; 
     and
       ``(ii) if advisable, take appropriate action, including but 
     not limited to commencing an adversary proceeding to revoke 
     the debtor's discharge under section 727(d) of title 11.''.
       (b) Amendments to Section 521 of Title 11, United States 
     Code.--Section 521(a) of title 11, United States Code, as 
     amended by section 301(b) of this Act, is amended in 
     paragraphs (3) and (4) by inserting ``or an auditor appointed 
     under section 586 of title 28'' after ``serving in the case'' 
     each place it appears.
       (c) Amendments to Section 727 of Title 11, United States 
     Code.--Section 727(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 and inserting 
     ``; or''; and
       (3) by adding at the end the following:
       ``(4) the debtor has failed to explain satisfactorily--
       ``(A) a material misstatement in an audit performed under 
     section 586(f) of title 28; or

[[Page S4590]]

       ``(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 under 
     section 586(f) of title 28.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect 18 months after the date of enactment of 
     this Act.

     SEC. 308. CREDITOR REPRESENTATION AT FIRST MEETING OF 
                   CREDITORS.

       Section 341(c) of title 11, United States Code, is 
     amended--
       (1) by inserting ``(1)'' after ``(c)''; and
       (2) by adding at the end the following:
       ``(2) Notwithstanding any local court rule, provision of a 
     State constitution, any other Federal or State law that is 
     not a bankruptcy law, or other requirement that 
     representation at the meeting of creditors under subsection 
     (a) be by an attorney, a creditor holding a consumer debt or 
     any representative of the creditor (which may include an 
     entity or an employee of an entity and may be a 
     representative for more than 1 creditor) shall be permitted 
     to appear at and participate in the meeting of creditors in a 
     case under chapter 7 or 13, either alone or in conjunction 
     with an attorney for the creditor.
       ``(3) Nothing in this subsection shall be construed to 
     require any creditor to be represented by an attorney at any 
     meeting of creditors.''.

     SEC. 309. FAIR NOTICE FOR CREDITORS IN CHAPTER 7 AND 13 
                   CASES.

       Section 342 of title 11, United States Code, is amended--
       (1) in subsection (c), by striking ``, but the failure of 
     such notice to contain such information shall not invalidate 
     the legal effect of such notice''; and
       (2) by adding at the end the following:
       ``(d)(1) If the credit agreement between the debtor and the 
     creditor or the last communication before the filing of the 
     petition in a voluntary case from the creditor to a debtor 
     who is an individual states an account number of the debtor 
     that is the current account number of the debtor with respect 
     to any debt held by the creditor against the debtor, the 
     debtor shall include that account number in any notice to the 
     creditor required to be given under this title.
       ``(2) If the creditor has specified to the debtor, in the 
     last communication before the filing of the petition, an 
     address at which the creditor wishes to receive 
     correspondence regarding the debtor's account, any notice to 
     the creditor required to be given by the debtor under this 
     title shall be given at such address.
       ``(3) For purposes of this section, the term `notice' 
     includes--
       ``(A) any correspondence from the debtor to the creditor 
     after the commencement of the case;
       ``(B) any statement of the debtor's intention under section 
     521(a)(2);
       ``(C) notice of the commencement of any proceeding in the 
     case to which the creditor is a party; and
       ``(D) any notice of a hearing under section 1324.
       ``(e)(1) At any time, a creditor, in a case of an 
     individual under chapter 7 or 13, may file with the court and 
     serve on the debtor a notice of the address to be used to 
     notify the creditor in that case.
       ``(2) If the court or the debtor is required to give the 
     creditor notice, not later than 5 days after receipt of the 
     notice under paragraph (1), that notice shall be given at 
     that address.
       ``(f) An entity may file with the court a notice stating 
     its address for notice in cases under chapter 7 or 13. After 
     the date that is 30 days following the filing of that notice, 
     any notice in any case filed under chapter 7 or 13 given by 
     the court shall be to that address unless specific notice is 
     given under subsection (e) with respect to a particular case.
       ``(g)(1) Notice given to a creditor other than as provided 
     in this section shall not be effective notice until that 
     notice has been brought to the attention of the creditor.
       ``(2) If the creditor has designated a person or department 
     to be responsible for receiving notices concerning bankruptcy 
     cases and has established reasonable procedures so that 
     bankruptcy notices received by the creditor will be delivered 
     to that department or person, notice shall not be brought to 
     the attention of the creditor until that notice is received 
     by that person or department.''.

     SEC. 310. STOPPING ABUSIVE CONVERSIONS FROM CHAPTER 13.

       Section 348(f)(1) of title 11, United States Code, is 
     amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B)--
       (A) by striking ``in the converted case, with allowed 
     secured claims'' and inserting ``only in a case converted to 
     chapter 11 or 12 but not in a case converted to chapter 7, 
     with allowed secured claims in cases under chapters 11 and 
     12''; and
       (B) by striking the period and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(C) with respect to cases converted from chapter 13, the 
     claim of any creditor holding security as of the date of the 
     petition shall continue to be secured by that security unless 
     the full amount of that claim determined under applicable 
     nonbankruptcy law has been paid in full as of the date of 
     conversion, notwithstanding any valuation or determination of 
     the amount of an allowed secured claim made for the purposes 
     of the chapter 13 proceeding.''.

     SEC. 311. PROMPT RELIEF FROM STAY IN INDIVIDUAL CASES.

       Section 362(e) of title 11, United States Code, is 
     amended--
       (1) by inserting ``(1)'' after ``(e)''; and
       (2) by adding at the end the following:
       ``(2) Notwithstanding paragraph (1), in the case of an 
     individual filing under chapter 7, 11, or 13, the stay under 
     subsection (a) shall terminate on the date that is 60 days 
     after a request is made by a party in interest under 
     subsection (d), unless--
       ``(A) a final decision is rendered by the court during the 
     60-day period beginning on the date of the request; or
       ``(B) that 60-day period is extended--
       ``(i) by agreement of all parties in interest; or
       ``(ii) by the court for such specific period of time as the 
     court finds is required for good cause.''.

     SEC. 312. DISMISSAL FOR FAILURE TO TIMELY FILE SCHEDULES OR 
                   PROVIDE REQUIRED INFORMATION.

       Section 707 of title 11, United States Code, as amended by 
     section 102 of this Act, is amended by adding at the end the 
     following:
       ``(c)(1) Notwithstanding subsection (a), and subject to 
     paragraph (2), if an individual debtor in a voluntary case 
     under chapter 7 or 13 fails to file all of the information 
     required under section 521(a)(1) within 45 days after the 
     filing of the petition commencing the case, the case shall be 
     automatically dismissed effective on the 46th day after the 
     filing of the petition.
       ``(2) With respect to a case described in paragraph (1), 
     any party in interest may request the court to enter an order 
     dismissing the case. The court shall, if so requested, enter 
     an order of dismissal not later than 5 days after that 
     request.
       ``(3) Upon request of the debtor made within 45 days after 
     the filing of the petition commencing a case described in 
     paragraph (1), the court may allow the debtor an additional 
     period of not to exceed 50 days to file the information 
     required under section 521(a)(1) if the court finds 
     justification for extending the period for the filing.''.

     SEC. 313. ADEQUATE TIME FOR PREPARATION FOR A HEARING ON 
                   CONFIRMATION OF THE PLAN.

       Section 1324 of title 11, United States Code, as amended by 
     section 304 of this Act, is amended--
       (1) by striking ``After'' and inserting the following:
       ``(a) Except as provided in subsection (b) and after''; and
       (2) by adding at the end the following:
       ``(b) If not later than 5 days after receiving notice of a 
     hearing on confirmation of the plan, a creditor objects to 
     the confirmation of the plan, the hearing on confirmation of 
     the plan may be held no earlier than 20 days after the first 
     meeting of creditors under section 341(a).''.

     SEC. 314. DISCHARGE UNDER CHAPTER 13.

       Section 1328(a) of title 11, United States Code, is amended 
     by striking paragraphs (1) through (3) and inserting the 
     following:
       ``(1) provided for under section 1322(b)(5);
       ``(2) of the kind specified in paragraph (2), (4), (5), 
     (8), or (9) of section 523(a);
       ``(3) for restitution, or a criminal fine, included in a 
     sentence on the debtor's conviction of a crime; or
       ``(4) for restitution, or damages, awarded in a civil 
     action against the debtor as a result of willful or malicious 
     injury by the debtor that caused personal injury to an 
     individual or the death of an individual.''.

     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, if the debtor 
     incurred the debt to pay such a nondischargeable debt with 
     the intent to discharge in bankruptcy the newly created 
     debt.''.

     SEC. 316. CREDIT EXTENSIONS ON THE EVE OF BANKRUPTCY PRESUMED 
                   NONDISCHARGEABLE.

       Section 523(a)(2) of title 11, United States Code, as 
     amended by section 202 of this Act, is amended--
       (1) in subparagraph (A), by striking the semicolon at the 
     end and inserting the following: ``(and, for purposes of this 
     subparagraph, consumer debts owed in an aggregate amount 
     greater than or equal to $400 incurred for goods or services 
     not reasonably necessary for the maintenance or support of 
     the debtor or a dependent child of the debtor to a single 
     creditor that are incurred during the 90-day period preceding 
     the date of the order for relief shall be presumed to be 
     nondischargeable under this subparagraph); or'';
       (2) in subparagraph (B), by striking ``or'' at the end; and
       (3) by striking subparagraph (C).

     SEC. 317. DEFINITION OF HOUSEHOLD GOODS AND ANTIQUES.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Federal Trade Commission shall 
     promulgate regulations defining the term ``household goods'', 
     to be applied to section 522(d)(3) of title 11, United States 
     Code, in a manner suitable and appropriate for cases under 
     that title.
       (b) Absence of Final Regulations.--If final regulations are 
     not promulgated under subsection (a) and in effect by the 
     date that is 180 days after the date enactment of this

[[Page S4591]]

     Act, then, for purposes of section 522(d)(3) of title 11, 
     United States Code, the term ``household goods'' shall have 
     the meaning given that term in section 444.1(i) of title 16, 
     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.

     SEC. 318. RELIEF FROM STAY WHEN THE DEBTOR DOES NOT COMPLETE 
                   INTENDED SURRENDER OF CONSUMER DEBT COLLATERAL.

       (a) Automatic Stay.--Section 362 of title 11, United States 
     Code, as amended by section 303 of this Act, is amended--
       (1) in subsection (c)(1), in the matter preceding 
     subparagraph (A), by striking ``(e) and (f)'' and inserting 
     ``(e), (f), and (h)'';
       (2) by redesignating subsection (h) as subsection (i); and
       (3) by inserting after subsection (g) the following:
       ``(h) In an individual case under chapter 7, 11, or 13 the 
     stay provided by subsection (a) is terminated with respect to 
     property of the estate securing in whole or in part a claim 
     that is in an amount greater than $3,000, or subject to an 
     unexpired lease with a remaining term of at least 1 year (in 
     any case in which the debtor owes at least $3,000 for a 1-
     year period), if within 30 days after the expiration of the 
     applicable period under section 521(a)(2)--
       ``(1)(A) the debtor fails to timely file a statement of 
     intention to surrender or retain the property; or
       ``(B) if the debtor indicates in the filing that the debtor 
     will retain the property, the debtor fails to meet an 
     applicable requirement to--
       ``(i) either--
       ``(I) redeem the property pursuant to section 722; or
       ``(II) reaffirm the debt the property secures pursuant to 
     section 524(c); or
       ``(ii) assume the unexpired lease pursuant to section 
     365(d) if the trustee does not do so; or
       ``(2) the debtor fails to timely take the action specified 
     in a statement of intention referred to in paragraph (1)(A) 
     (as amended, if that statement is amended before expiration 
     of the period for taking action), unless--
       ``(A) the statement of intention specifies reaffirmation; 
     and
       ``(B) the creditor refuses to reaffirm the debt on the 
     original contract terms for the debt.''.
       (b) Debtor's Duties.--Section 521(a)(2) of title 11, United 
     States Code, as redesignated by section 301(b) of this Act, 
     is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``consumer'';
       (2) in subparagraph (B)--
       (A) by striking ``forty-five days after the filing of a 
     notice of intent under this section'' and inserting ``30 days 
     after the first meeting of creditors under section 341(a)''; 
     and
       (B) by striking ``forty-five-day period'' and inserting 
     ``30-day period''; and
       (3) in subparagraph (C), by inserting ``, except as 
     provided in section 362(h)'' before the semicolon.

     SEC. 319. ADEQUATE PROTECTION OF LESSORS AND PURCHASE MONEY 
                   SECURED CREDITORS.

       (a) In General.--Chapter 13 of title 11, United States 
     Code, is amended by adding after section 1307 the following:

     ``Sec. 1307A. Adequate protection in chapter 13 cases

       ``(a)(1)(A) On or before the date that is 30 days after the 
     filing of a case under this chapter, the debtor shall make 
     cash payments in an amount determined under paragraph (2)(A), 
     to--
       ``(i) any lessor of personal property; and
       ``(ii) any creditor holding a claim secured by personal 
     property to the extent that the claim is attributable to the 
     purchase of that property by the debtor.
       ``(B) The debtor or the plan shall continue making the 
     adequate protection payments until the earlier of the date on 
     which--
       ``(i) the creditor begins to receive actual payments under 
     the plan; or
       ``(ii) the debtor relinquishes possession of the property 
     referred to in subparagraph (A) to--
       ``(I) the lessor or creditor; or
       ``(II) any third party acting under claim of right, as 
     applicable.
       ``(2) The payments referred to in paragraph (1)(A) shall be 
     determined by the court.
       ``(b)(1) Subject to the limitations under paragraph (2), 
     the court may, after notice and hearing, change the amount 
     and timing of the dates of payment of payments made under 
     subsection (a).
       ``(2)(A) The payments referred to in paragraph (1) shall be 
     payable not less frequently than monthly.
       ``(B) The amount of a payment referred to in paragraph (1) 
     shall not be less than the reasonable depreciation of the 
     personal property described in subsection (a)(1), determined 
     on a month-to-month basis.
       ``(c) Notwithstanding section 1326(b), the payments 
     referred to in subsection (a)(1)(A) shall be continued in 
     addition to plan payments under a confirmed plan until actual 
     payments to the creditor begin under that plan, if the 
     confirmed plan provides--
       ``(1) for payments to a creditor or lessor described in 
     subsection (a)(1); and
       ``(2) for the deferral of payments to such creditor or 
     lessor under the plan until the payment of amounts described 
     in section 1326(b).
       ``(d) Notwithstanding sections 362, 542, and 543, a lessor 
     or creditor described in subsection (a) may retain possession 
     of property described in that subsection that was obtained in 
     accordance with applicable law before the date of filing of 
     the petition until the first payment under subsection 
     (a)(1)(A) is received by the lessor or creditor.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     13 of title 11, United States Code, is amended by inserting 
     after the item relating to section 1307 the following:

``1307A. Adequate protection in chapter 13 cases.''.

     SEC. 320. LIMITATION.

       Section 522 of title 11, United States Code, is amended--
       (1) in subsection (b)(2)(A), by inserting ``subject to 
     subsection (n),'' before ``any property''; and
       (2) by adding at the end the following new subsection:
       ``(n)(1) Except as provided in paragraph (2), as a result 
     of electing under subsection (b)(2)(A) to exempt property 
     under State or local law, a debtor may not exempt any amount 
     of interest that exceeds in the aggregate $100,000 in value 
     in--
       ``(A) real or personal property that the debtor or a 
     dependent of the debtor uses as a residence;
       ``(B) a cooperative that owns property that the debtor or a 
     dependent of the debtor uses as a residence; or
       ``(C) a burial plot for the debtor or a dependent of the 
     debtor.
       ``(2) The limitation under paragraph (1) shall not apply to 
     an exemption claimed under subsection (b)(2)(A) by a family 
     farmer for the principal residence of that farmer.''.

     SEC. 321. MISCELLANEOUS IMPROVEMENTS.

       (a) Who May Be a Debtor.--Section 109 of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(h)(1) Subject to paragraphs (2) and (3) and 
     notwithstanding any other provision of this section, an 
     individual may not be a debtor under this title unless that 
     individual has, during the 90-day period preceding the date 
     of filing of the petition of that individual, received credit 
     counseling, including, at a minimum, participation in an 
     individual or group briefing that outlined the opportunities 
     for available credit counseling and assisted that individual 
     in performing an initial budget analysis, through a credit 
     counseling program (offered through an approved credit 
     counseling service described in section 111(a)) that has been 
     approved by--
       ``(A) the United States trustee; or
       ``(B) the bankruptcy administrator for the district in 
     which the petition is filed.''.
       ``(2)(A) Paragraph (1) shall not apply with respect to a 
     debtor who resides in a district for which the United States 
     trustee or bankruptcy administrator of the bankruptcy court 
     of that district determines that the approved credit 
     counseling services for that district are not reasonably able 
     to provide adequate services to the additional individuals 
     who would otherwise seek credit counseling from those 
     programs by reason of the requirements of paragraph (1).
       ``(B) Each United States trustee or bankruptcy 
     administrator that makes a determination under subparagraph 
     (A) shall review that determination not later than 1 year 
     after the date of that determination, and not less frequently 
     than annually thereafter.
       ``(3)(A) Subject to subparagraph (B), the requirements of 
     paragraph (1) shall not apply with respect to a debtor who 
     submits to the court a certification that--
       ``(i) describes exigent circumstances that merit a waiver 
     of the requirements of paragraph (1);
       ``(ii) states that the debtor requested credit counseling 
     services from an approved credit counseling service, but was 
     unable to obtain the services referred to in paragraph (1) 
     during the 5-day period beginning on the date on which the 
     debtor made that request; and
       ``(iii) is satisfactory to the court.
       ``(B) With respect to a debtor, an exemption under 
     subparagraph (A) shall cease to apply to that debtor on the 
     date on which the debtor meets the requirements of paragraph 
     (1), but in no case may the exemption apply to that debtor 
     after the date that is 30 days after the debtor files a 
     petition.''.
       (b) Chapter 7 Discharge.--Section 727(a) of title 11, 
     United States Code, is amended--
       (1) in paragraph (9), by striking ``or'' at the end;
       (2) in paragraph (10), by striking the period and inserting 
     ``; or''; and
       (3) by adding at the end the following:
       ``(11) after the filing of the petition, the debtor failed 
     to complete an instructional course concerning personal 
     financial management described in section 111 that was 
     administered or approved by--
       ``(A) the United States trustee; or
       ``(B) the bankruptcy administrator for the district in 
     which the petition is filed.''.
       (c) Chapter 13 Discharge.--Section 1328 of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(f) The court shall not grant a discharge under this 
     section to a debtor, unless after filing a petition the 
     debtor has completed an instructional course concerning 
     personal financial management described in section 111 that 
     was administered or approved by--
       ``(1) the United States trustee; or
       ``(2) the bankruptcy administrator for the district in 
     which the petition is filed.''.
       (d) Debtor's Duties.--Section 521 of title 11, United 
     States Code, as amended by section 318(b) of this Act, is 
     amended by adding at the end the following:

[[Page S4592]]

       ``(e) In addition to the requirements under subsection (a), 
     an individual debtor shall file with the court--
       ``(1) a certificate from the credit counseling service that 
     provided the debtor services under section 109(h); and
       ``(2) a copy of the debt repayment plan, if any, developed 
     under section 109(h) through the credit counseling service 
     referred to in paragraph (1).''.
       (e) Exceptions To Discharge.--Section 523(d) of title 11, 
     United States Code, as amended by section 202 of this Act, is 
     amended by striking paragraph (3)(A)(i) and inserting the 
     following:
       ``(i) within the applicable period of time prescribed under 
     section 109(h), the debtor received credit counseling through 
     a credit counseling program in accordance with section 
     109(h); and''.
       (f) General Provisions.--
       (1) In general.--Chapter 1 of title 11, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 111. Credit counseling services; financial management 
       instructional courses

       ``(a) The clerk of each district shall maintain a list of 
     credit counseling services that provide 1 or more programs 
     described in section 109(h) and that have been approved by--
       ``(1) the United States trustee; or
       ``(2) the bankruptcy administrator for the district.
       ``(b) The United States trustee or each bankruptcy 
     administrator referred to in subsection (a)(1) shall--
       ``(1) make available to debtors who are individuals an 
     instructional course concerning personal financial 
     management, under the direction of the bankruptcy court; and
       ``(2) maintain a list of instructional courses concerning 
     personal financial management that are operated by a private 
     entity and that have been approved by the United States 
     trustee or that bankruptcy administrator.''.
       (2) Clerical amendment.--The table of sections for chapter 
     1 of title 11, United States Code, is amended by adding at 
     the end the following:

``111. Credit counseling services; financial management instructional 
              courses.''.
       (g) Definitions.--Section 101 of title 11, United States 
     Code, is amended--
       (1) by inserting after paragraph (13) the following:
       ``(13A) `debtor's principal residence'--
       ``(A) means a residential structure, including incidental 
     property, without regard to whether that structure is 
     attached to real property; and
       ``(B) includes an individual condominium or co-operative 
     unit;''; and
       (2) by inserting after paragraph (27), the following:
       ``(27A) `incidental property' means, with respect to a 
     debtor's principal residence--
       ``(A) property commonly conveyed with a principal residence 
     in the area where the real estate is located;
       ``(B) all easements, rights, appurtenances, fixtures, 
     rents, royalties, mineral rights, oil or gas rights or 
     profits, water rights, escrow funds, or insurance proceeds; 
     and
       ``(C) all replacements or additions;''.

     SEC. 322. BANKRUPTCY JUDGESHIPS.

       (a) Short Title.--This section may be cited as the 
     ``Bankruptcy Judgeship Act of 1999''.
       (b) Temporary Judgeships.--
       (1) Appointments.--The following judgeship positions shall 
     be filled in the manner prescribed in section 152(a)(1) of 
     title 28, United States Code, for the appointment of 
     bankruptcy judges provided for in section 152(a)(2) of such 
     title:
       (A) One additional bankruptcy judgeship for the eastern 
     district of California.
       (B) Four additional bankruptcy judgeships for the central 
     district of California.
       (C) One additional bankruptcy judgeship for the southern 
     district of Florida.
       (D) Two additional bankruptcy judgeships for the district 
     of Maryland.
       (E) One additional bankruptcy judgeship for the eastern 
     district of Michigan.
       (F) One additional bankruptcy judgeship for the southern 
     district of Mississippi.
       (G) One additional bankruptcy judgeship for the district of 
     New Jersey.
       (H) One additional bankruptcy judgeship for the eastern 
     district of New York.
       (I) One additional bankruptcy judgeship for the northern 
     district of New York.
       (J) One additional bankruptcy judgeship for the southern 
     district of New York.
       (K) One additional bankruptcy judgeship for the eastern 
     district of Pennsylvania.
       (L) One additional bankruptcy judgeship for the middle 
     district of Pennsylvania.
       (M) One additional bankruptcy judgeship for the western 
     district of Tennessee.
       (N) One additional bankruptcy judgeship for the eastern 
     district of Virginia.
       (2) Vacancies.--The first vacancy occurring in the office 
     of a bankruptcy judge in each of the judicial districts set 
     forth in paragraph (1) that--
       (A) results from the death, retirement, resignation, or 
     removal of a bankruptcy judge; and
       (B) occurs 5 years or more after the appointment date of a 
     bankruptcy judge appointed under paragraph (1);
     shall not be filled.
       (c) Extensions.--
       (1) In general.--The temporary bankruptcy judgeship 
     positions authorized for the northern district of Alabama, 
     the district of Delaware, the district of Puerto Rico, the 
     district of South Carolina, and the eastern district of 
     Tennessee under section 3(a) (1), (3), (7), (8), and (9) of 
     the Bankruptcy Judgeship Act of 1992 (28 U.S.C. 152 note) are 
     extended until the first vacancy occurring in the office of a 
     bankruptcy judge in the applicable district resulting from 
     the death, retirement, resignation, or removal of a 
     bankruptcy judge and occurring--
       (A) 8 years or more after November 8, 1993, with respect to 
     the northern district of Alabama;
       (B) 10 years or more after October 28, 1993, with respect 
     to the district of Delaware;
       (C) 8 years or more after August 29, 1994, with respect to 
     the district of Puerto Rico;
       (D) 8 years or more after June 27, 1994, with respect to 
     the district of South Carolina; and
       (E) 8 years or more after November 23, 1993, with respect 
     to the eastern district of Tennessee.
       (2) Applicability of other provisions.--All other 
     provisions of section 3 of the Bankruptcy Judgeship Act of 
     1992 remain applicable to such temporary judgeship position.
       (d) Technical Amendment.--The first sentence of section 
     152(a)(1) of title 28, United States Code, is amended to read 
     as follows: ``Each bankruptcy judge to be appointed for a 
     judicial district as provided in paragraph (2) shall be 
     appointed by the United States court of appeals for the 
     circuit in which such district is located.''.
       (e) Travel Expenses of Bankruptcy Judges.--Section 156 of 
     title 28, United States Code, is amended by adding at the end 
     the following new subsection:
       ``(g)(1) In this subsection, the term `travel expenses'--
       ``(A) means the expenses incurred by a bankruptcy judge for 
     travel that is not directly related to any case assigned to 
     such bankruptcy judge; and
       ``(B) shall not include the travel expenses of a bankruptcy 
     judge if--
       ``(i) the payment for the travel expenses is paid by such 
     bankruptcy judge from the personal funds of such bankruptcy 
     judge; and
       ``(ii) such bankruptcy judge does not receive funds 
     (including reimbursement) from the United States or any other 
     person or entity for the payment of such travel expenses.
       ``(2) Each bankruptcy judge shall annually submit the 
     information required under paragraph (3) to the chief 
     bankruptcy judge for the district in which the bankruptcy 
     judge is assigned.
       ``(3)(A) Each chief bankruptcy judge shall submit an annual 
     report to the Director of the Administrative Office of the 
     United States Courts on the travel expenses of each 
     bankruptcy judge assigned to the applicable district 
     (including the travel expenses of the chief bankruptcy judge 
     of such district).
       ``(B) The annual report under this paragraph shall 
     include--
       ``(i) the travel expenses of each bankruptcy judge, with 
     the name of the bankruptcy judge to whom the travel expenses 
     apply;
       ``(ii) a description of the subject matter and purpose of 
     the travel relating to each travel expense identified under 
     clause (i), with the name of the bankruptcy judge to whom the 
     travel applies; and
       ``(iii) the number of days of each travel described under 
     clause (ii), with the name of the bankruptcy judge to whom 
     the travel applies.
       ``(4)(A) The Director of the Administrative Office of the 
     United States Courts shall--
       ``(i) consolidate the reports submitted under paragraph (3) 
     into a single report; and
       ``(ii) annually submit such consolidated report to 
     Congress.
       ``(B) The consolidated report submitted under this 
     paragraph shall include the specific information required 
     under paragraph (3)(B), including the name of each bankruptcy 
     judge with respect to clauses (i), (ii), and (iii) of 
     paragraph (3)(B).''.

     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--
       ``(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 governmental 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--

[[Page S4593]]

       (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) by inserting after paragraph (4) the following:
       ``(5) 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));
       (3) in paragraph (17), by striking ``or'' at the end;
       (4) in paragraph (18), by striking the period and inserting 
     ``; or''; and
       (5) by inserting after paragraph (18) the following:
       ``(19) 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.

       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, as amended by 
     section 320 of this Act, 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 nonbankruptcy 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) of title 11, United States Code, is amended 
     by striking paragraph (7) and inserting the following:
       ``(7) to the extent such transfer was a bona fide payment 
     of a debt for a domestic support obligation; or''.

     SEC. 330. PROTECTION OF RETIREMENT SAVINGS IN BANKRUPTCY.

       (a) In General.--Section 522 of title 11, United States 
     Code, as amended by section 328 of this Act, is amended--
       (1) in subsection (b)--
       (A) in paragraph (2)--
       (i) by striking ``(2)(A) subject to subsection (n), any 
     property'' and inserting:
       ``(3) Subject to subsection (n), 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 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, 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

[[Page S4594]]

     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, as amended by section 326 of this Act, is 
     amended--
       (1) in paragraph (18), by striking ``or'' at the end;
       (2) in paragraph (19), by striking the period and inserting 
     ``; or'';
       (3) by inserting after paragraph (19) the following:
       ``(20) 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 (20) the following: ``Paragraph (20) 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 (20) 
     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 of this Act, 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)(20).''.

     SEC. 331. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED STATES 
                   CODE.

       (a) Section 507(a) of title 11, United States Code, is 
     amended by inserting after paragraph (7) the following:
       ``(8) Eighth, allowed claims for death or personal 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.''.
       (b) Section 523(a)(9) of title 11, United States Code, is 
     amended by inserting ``or vessel'' after ``vehicle''.

     SEC. 332. DEBT LIMIT INCREASE.

       Section 104(b) of title 11, United States Code, is amended 
     by adding at the end the following:
       ``(4) 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.''.

     SEC. 333. ELIMINATION OF REQUIREMENT THAT FAMILY FARMER AND 
                   SPOUSE RECEIVE OVER 50 PERCENT OF INCOME FROM 
                   FARMING OPERATION IN YEAR PRIOR TO BANKRUPTCY.

       Section 101(18)(A) of title 11, United States Code, is 
     amended by striking ``the taxable year preceding the taxable 
     year'' and inserting ``at least 1 of the 3 calendar years 
     preceding the year''.

     SEC. 334. PROHIBITION OF RETROACTIVE ASSESSMENT OF DISPOSABLE 
                   INCOME.

       (a) In General.--Section 1225(b) of title 11, United States 
     Code, is amended--
       (1) by redesignating paragraph (2) as paragraph (3) and by 
     inserting after paragraph (1) the following:
       ``(2) The plan shall be confirmed if--
       ``(A) the plan provides for specific amounts of property to 
     be distributed on account of allowed unsecured claims as 
     required by paragraph (1)(B);
       ``(B) the amounts under subparagraph (A) equal or exceed 
     the debtor's projected disposable income for the applicable 
     period; and
       ``(C) the plan meets the requirements for confirmation 
     other than those of this subsection, the plan shall be 
     confirmed.''.
       (b) Modification of Plan.--Section 1229 of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(d)(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.''.

     SEC. 335. AMENDMENT TO SECTION 1325 OF TITLE 11, UNITED 
                   STATES CODE.

       Section 1325(b)(2) of title 11, United States Code, is 
     amended by inserting ``(other than child support payments, 
     foster care payments, or disability payments for a dependent 
     child made in accordance with applicable nonbankruptcy law 
     and which is reasonably necessary to be expended)'' after 
     ``received by the debtor''.

     SEC. 336. PROTECTION OF SAVINGS EARMARKED FOR THE 
                   POSTSECONDARY EDUCATION OF CHILDREN.

       Section 541(b) of title 11, United States Code, is 
     amended--
       (1) in paragraph (5), by striking ``or'' at the end;
       (2) by redesignating paragraph (5) as paragraph (7); and
       (2) by inserting after paragraph (4) the following:
       ``(5) 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;
       ``(6) 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; or''.

                    TITLE IV--FINANCIAL INSTRUMENTS

     SEC. 401. BANKRUPTCY CODE AMENDMENTS.

       (a) Definitions of Forward Contract, Repurchase Agreement, 
     Securities Clearing Agency, Swap Agreement, Commodity 
     Contract, and Securities Contract.--Title 11, United States 
     Code, is amended--
       (1) in section 101--
       (A) in paragraph (25)--
       (i) by striking ``means a contract'' and inserting 
     ``means--
       ``(A) a contract'';
       (ii) by striking ``, or any combination thereof or option 
     thereon;'' and inserting ``, or any other similar 
     agreement;''; and
       (iii) by adding at the end the following:
       ``(B) a combination of agreements or transactions referred 
     to in subparagraphs (A) and (C);
       ``(C) an option to enter into an agreement or transaction 
     referred to in subparagraph (A) or (B);
       ``(D) a master netting agreement that provides for an 
     agreement or transaction referred to in subparagraph (A), 
     (B), or (C), together with all supplements to such master 
     netting agreement, without regard to whether such master 
     netting agreement provides for an agreement or transaction 
     that is not a forward contract under this paragraph, except 
     that such master netting agreement shall be considered to be 
     a forward contract under this paragraph only with respect to 
     each agreement or transaction under such master netting 
     agreement that is referred to in subparagraph (A), (B), or 
     (C); or
       ``(E) a security agreement or arrangement, or other credit 
     enhancement, related to any agreement, a contract, option, or 
     transaction referred to in subparagraph (A), (B), (C), or 
     (D);'';
       (B) by striking paragraph (47) and inserting the following:
       ``(47) `repurchase agreement' and `reverse repurchase 
     agreement'--
       ``(A) mean--
       ``(i) an agreement, including related terms, that provides 
     for the transfer of--

       ``(I) a certificate of deposit, mortgage related security 
     (as defined in section 3 of the Securities Exchange Act of 
     1934), mortgage loan, interest in a mortgage related security 
     or mortgage loan, eligible bankers' acceptance, or qualified 
     foreign government security (defined for purposes of this 
     paragraph to mean a security that is a direct obligation of, 
     or that is fully guaranteed by, the central government of a 
     member of the Organization for Economic Cooperation and 
     Development); or
       ``(II) a security that is a direct obligation of, or that 
     is fully guaranteed by, the United States or an agency of the 
     United States against the transfer of funds by the transferee 
     of such certificate of deposit, eligible bankers' acceptance, 
     security, loan, or interest;

     with a simultaneous agreement by such transferee to transfer 
     to the transferor thereof a certificate of deposit, eligible 
     bankers' acceptance, security, loan, or interest of the kind 
     described in subclause (I) or (II), at a date certain that is 
     not later than 1 year after the date of the transferor's 
     transfer or on demand, against the transfer of funds;

[[Page S4595]]

       ``(ii) a combination of agreements or transactions referred 
     to in clauses (i) and (iii);
       ``(iii) an option to enter into an agreement or transaction 
     referred to in clause (i) or (ii);
       ``(iv) a master netting agreement that provides for an 
     agreement or transaction referred to in clause (i), (ii), or 
     (iii), together with all supplements to such master netting 
     agreement, without regard to whether such master netting 
     agreement provides for an agreement or transaction that is 
     not a repurchase agreement under this subparagraph, except 
     that such master netting agreement shall be considered to be 
     a repurchase agreement under this subparagraph only with 
     respect to each agreement or transaction under such master 
     netting agreement that is referred to in clause (i), (ii), or 
     (iii); or
       ``(v) a security agreement or arrangement, or other credit 
     enhancement, directly pertaining to a contract referred to in 
     clause (i), (ii), (iii), or (iv); and
       ``(B) do not include a repurchase obligation under a 
     participation in a commercial mortgage loan;''; and
       (C) by striking paragraph (53B) and inserting the 
     following:
       ``(53B) `swap agreement'--
       ``(A) means--
       ``(i) an agreement, including the terms and conditions 
     incorporated by reference in such agreement, that is--

       ``(I) an interest rate swap, option, future, or forward 
     agreement, including a rate floor, rate cap, rate collar, 
     cross-currency rate swap, and basis swap;
       ``(II) a spot, same day-tomorrow, tomorrow-next, forward, 
     or other foreign exchange or precious metals agreement;
       ``(III) a currency swap, option, future, or forward 
     agreement;
       ``(IV) an equity index or an equity swap, option, future, 
     or forward agreement;
       ``(V) a debt index or a debt swap, option, future, or 
     forward agreement;
       ``(VI) a credit spread or a credit swap, option, future, or 
     forward agreement; or
       ``(VII) a commodity index or a commodity swap, option, 
     future, or forward agreement;

       ``(ii) an agreement or transaction that is similar to an 
     agreement or transaction referred to in clause (i) that--

       ``(I) is currently, or in the future becomes, regularly 
     entered into in the swap market (including terms and 
     conditions incorporated by reference therein); and
       ``(II) is a forward, swap, future, or option on a rate, 
     currency, commodity, equity security, or other equity 
     instrument, on a debt security or other debt instrument, or 
     on an economic index or measure of economic risk or value;

       ``(iii) a combination of agreements or transactions 
     referred to in clauses (i) and (ii);
       ``(iv) an option to enter into an agreement or transaction 
     referred to in this subparagraph; or
       ``(v) a master netting agreement that provides for an 
     agreement or transaction referred to in clause (i), (ii), 
     (iii), or (iv), together with all supplements to such master 
     netting agreement and without regard to whether such master 
     netting agreement contains an agreement or transaction 
     described in any such clause, but only with respect to each 
     agreement or transaction referred to in any such clause that 
     is under such master netting agreement; except that
       ``(B) the definition under subparagraph (A) is applicable 
     for purposes of this title only, and shall not be construed 
     or applied so as to challenge or affect the characterization, 
     definition, or treatment of any swap agreement under any 
     other statute, regulation, or rule, including the Securities 
     Act of 1933, the Securities Exchange Act of 1934, the Public 
     Utility Holding Company Act of 1935, the Trust Indenture Act 
     of 1939, the Investment Company Act of 1940, the Investment 
     Advisers Act of 1940, the Securities Investor Protection Act 
     of 1970, the Commodity Exchange Act, and the regulations 
     prescribed by the Securities and Exchange Commission or the 
     Commodity Futures Trading Commission.'';
       (2) in section 741, by striking paragraph (7) and inserting 
     the following:
       ``(7) `securities contract'--
       ``(A) means--
       ``(i) a contract for the purchase, sale, or loan of a 
     security, a certificate of deposit, a mortgage loan or an 
     interest in a mortgage loan, a group or index of securities, 
     certificates of deposit, or mortgage loans or interests 
     therein (including an interest therein or based on the value 
     thereof), or option on any of the foregoing, including an 
     option to purchase or sell any of the foregoing;
       ``(ii) an option entered into on a national securities 
     exchange relating to foreign currencies;
       ``(iii) the guarantee by or to a securities clearing agency 
     of a settlement of cash, securities, certificates of deposit, 
     mortgage loans or interests therein, group or index of 
     securities, or mortgage loans or interests therein (including 
     any interest therein or based on the value thereof), or 
     option on any of the foregoing, including an option to 
     purchase or sell any of the foregoing;
       ``(iv) a margin loan;
       ``(v) any other agreement or transaction that is similar to 
     an agreement or transaction referred to in this subparagraph;
       ``(vi) a combination of the agreements or transactions 
     referred to in this subparagraph;
       ``(vii) an option to enter into an agreement or transaction 
     referred to in this subparagraph;
       ``(viii) a master netting agreement that provides for an 
     agreement or transaction referred to in clause (i), (ii), 
     (iii), (iv), (v), (vi), or (vii), together with all 
     supplements to such master netting agreement, without regard 
     to whether such master netting agreement provides for an 
     agreement or transaction that is not a securities contract 
     under this subparagraph, except that such master netting 
     agreement shall be considered to be a securities contract 
     under this subparagraph only with respect to each agreement 
     or transaction under such master netting agreement that is 
     referred to in clause (i), (ii), (iii), (iv), (v), (vi), or 
     (vii); or
       ``(ix) a security agreement or arrangement, or other credit 
     enhancement, related to any agreement or transaction referred 
     to in this subparagraph; and
       ``(B) does not include a purchase, sale, or repurchase 
     obligation under a participation in, or servicing agreement 
     for, a commercial mortgage loan;''; and
       (3) in section 761(4)--
       (A) by striking ``or'' at the end of subparagraph (D); and
       (B) by adding at the end the following:
       ``(F) any other agreement or transaction that is similar to 
     an agreement or transaction referred to in this paragraph;
       ``(G) a combination of the agreements or transactions 
     referred to in this paragraph;
       ``(H) an option to enter into an agreement or transaction 
     referred to in this paragraph;
       ``(I) a master netting agreement that provides for an 
     agreement or transaction referred to in subparagraph (A), 
     (B), (C), (D), (E), (F), (G), or (H), together with all 
     supplements to such master netting agreement, without regard 
     to whether such master netting agreement provides for an 
     agreement or transaction that is not a commodity contract 
     under this paragraph, except that such master netting 
     agreement shall be considered to be a commodity contract 
     under this paragraph only with respect to each agreement or 
     transaction under such master netting agreement that is 
     referred to in subparagraph (A), (B), (C), (D), (E), (F), 
     (G), or (H); or
       ``(J) a security agreement or arrangement, or other credit 
     enhancement, related to any agreement or transaction referred 
     to in this paragraph.''.
       (b) Definitions of Financial Institution, Financial 
     Participant, and Forward Contract Merchant.--Section 101 of 
     title 11, United States Code, is amended--
       (1) by striking paragraph (22) and inserting the following:
       ``(22) `financial institution' means--
       ``(A) a Federal reserve bank, or an entity that is a 
     commercial or savings bank, industrial savings bank, savings 
     and loan association, trust company, or receiver or 
     conservator for such entity; and
       ``(B) if such Federal reserve bank, receiver, or 
     conservator or entity is acting as agent or custodian for a 
     customer in connection with a securities contract, as defined 
     in section 741, such customer;'';
       (2) by inserting after paragraph (22) the following:
       ``(22A) `financial participant' means an entity that--
       ``(A) is a party to a securities contract, commodity 
     contract or forward contract;
       ``(B) on the date of the filing of the petition, has 1 or 
     more agreements or transactions under section 561(a)(2)with 
     the debtor or any other entity (other than an affiliate) of a 
     total gross dollar value of not less than $1,000,000,000 in 
     notional or actual principal amount outstanding on any date 
     during the previous 15-month period; or
       ``(C) has gross mark-to-market positions of not less than 
     $100,000,000 (aggregated across counterparties) in an 
     agreement or transaction under subparagraph (A) with the 
     debtor or any other entity (other than an affiliate) on any 
     date during the previous 15-month period;''; and
       (3) by striking paragraph (26) and inserting the following:
       ``(26) `forward contract merchant' means a Federal reserve 
     bank, or an entity, the business of which consists in whole 
     or in part of entering into forward contracts as or with 
     merchants or in a commodity, as defined or in section 761, or 
     any similar good, article, service, right, or interest that 
     is presently or in the future becomes the subject of dealing 
     or in the forward contract trade;''.
       (c) Definition of Master Netting Agreement and Master 
     Netting Agreement Participant.--Section 101 of title 11, 
     United States Code, is amended by inserting after paragraph 
     (38) the following new paragraphs:
       ``(38A) the term `master netting agreement'--
       ``(A) means an agreement providing for the exercise of 
     rights, including rights of netting, setoff, liquidation, 
     termination, acceleration, or closeout, under or in 
     connection with 1 or more contracts that are described in any 
     1 or more of paragraphs (1) through (5) of section 561(a), or 
     any security agreement or arrangement or other credit 
     enhancement related to 1 or more of the foregoing; except 
     that
       ``(B) if a master netting agreement contains provisions 
     relating to agreements or transactions that are not contracts 
     described in paragraphs (1) through (5) of section 561(a), 
     the master netting agreement shall be deemed to be a master 
     netting agreement only with respect to those agreements or 
     transactions that are described in any 1 or more of 
     paragraphs (1) through (5) of section 561(a); and
       ``(38B) the term `master netting agreement participant' 
     means an entity that, at any time before the filing of the 
     petition, is a

[[Page S4596]]

     party to an outstanding master netting agreement with the 
     debtor;''.
       (d) Swap Agreements, Securities Contracts, Commodity 
     Contracts, Forward Contracts, Repurchase Agreements, and 
     Master Netting Agreements Under the Automatic Stay.--
       (1) In general.--Section 362(b) of title 11, United States 
     Code, as amended by section 330 of this Act, is amended--
       (A) in paragraph (6), by inserting ``, pledged to, and 
     under the control of,'' after ``held by'';
       (B) in paragraph (7), by inserting ``, pledged to, and 
     under the control of,'' after ``held by'';
       (C) by striking paragraph (17) and inserting the following:
       ``(17) under subsection (a), of the setoff by a swap 
     participant of a mutual debt and claim under or in connection 
     with a swap agreement that constitutes the setoff of a claim 
     against the debtor for a payment or transfer due from the 
     debtor under or in connection with a swap agreement against a 
     payment due to the debtor from the swap participant under or 
     in connection with a swap agreement or against cash, 
     securities, or other property held by, pledged to, and under 
     the control of, or due from such swap participant to 
     guarantee, secure, or settle a swap agreement;'';
       (D) in paragraph (19), by striking ``or'' at the end;
       (E) in paragraph (20), by striking the period at the end 
     and inserting ``; or''; and
       (F) by inserting after paragraph (20) the following:
       ``(21) under subsection (a), of the setoff by a master 
     netting agreement participant of a mutual debt and claim, to 
     the extent such participant is eligible to exercise such 
     offset rights under paragraph (6), (7), or (17) for each 
     individual contract covered by the master netting agreement 
     in issue.''.
       (2) Limitation.--Section 362 of title 11, United States 
     Code, as amended by section 432(2) of this Act, is amended by 
     adding at the end the following:
       ``(i) The exercise of rights not subject to the stay 
     arising under subsection (a) pursuant to paragraph (6), (7), 
     or (17) of subsection (b) shall not be stayed by an order of 
     a court or administrative agency in any proceeding under this 
     title.''.
       (e) Limitation of Avoidance Powers Under Master Netting 
     Agreement.--Section 546 of title 11, United States Code, is 
     amended--
       (1) in subsection (g), (as added by section 103 of Public 
     Law 101-311 (104 Stat. 267 et seq.))--
       (A) by striking ``under a swap agreement''; and
       (B) by striking ``in connection with a swap agreement'' and 
     inserting ``under or in connection with any swap agreement''; 
     and
       (2) by inserting before subsection (i) (as redesignated by 
     section 407 of this Act) the following new subsection:
       ``(h) Notwithstanding sections 544, 545, 547, 548(a)(2)(B), 
     and 548(b), the trustee may not avoid a transfer made by or 
     to a master netting agreement participant under or in 
     connection with any master netting agreement or any 
     individual contract covered thereby that is made before the 
     commencement of the case, and except to the extent that the 
     trustee could otherwise avoid such a transfer made under an 
     individual contract covered by such master netting agreement 
     (except under section 548(a)(1)(A)).''.
       (f) Fraudulent Transfers of Master Netting Agreements.--
     Section 548(d)(2) of title 11, United States Code, is 
     amended--
       (1) in subparagraph (C), by striking ``and'';
       (2) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(E) a master netting agreement participant that receives 
     a transfer in connection with a master netting agreement or 
     any individual contract covered thereby takes for value to 
     the extent of such transfer, except, with respect to a 
     transfer under any individual contract covered thereby, to 
     the extent that such master netting agreement participant 
     otherwise did not take (or is otherwise not deemed to have 
     taken) such transfer for value.''.
       (g) Termination or Acceleration of Securities Contracts.--
     Section 555 of title 11, United States Code, is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``Sec. 555. Contractual right to liquidate, terminate, or 
       accelerate a securities contract'';

     and
       (2) in the first sentence, by striking ``liquidation'' and 
     inserting ``liquidation, termination, or acceleration''.
       (h) Termination or Acceleration of Commodities or Forward 
     Contracts.--Section 556 of title 11, United States Code, is 
     amended--
       (1) by striking the section heading and inserting the 
     following:

     ``Sec. 556. Contractual right to liquidate, terminate, or 
       accelerate a commodities contract or forward contract'';

     and
       (2) in the first sentence, by striking ``liquidation'' and 
     inserting ``liquidation, termination, or acceleration''.
       (i) Termination or Acceleration of Repurchase Agreements.--
     Section 559 of title 11, United States Code, is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``Sec. 559. Contractual right to liquidate, terminate, or 
       accelerate a repurchase agreement'';

     and
       (2) in the first sentence, by striking ``liquidation'' and 
     inserting ``liquidation, termination, or acceleration''.
       (j) Liquidation, Termination, or Acceleration of Swap 
     Agreements.--Section 560 of title 11, United States Code, is 
     amended--
       (1) by striking the section heading and inserting the 
     following:

     ``Sec. 560. Contractual right to liquidate, terminate, or 
       accelerate a swap agreement'';

       (2) in the first sentence, by striking ``termination of a 
     swap agreement'' and inserting ``liquidation, termination, or 
     acceleration of a swap agreement''; and
       (3) by striking ``in connection with any swap agreement'' 
     and inserting ``in connection with the termination, 
     liquidation, or acceleration of a swap agreement''.
       (k) Liquidation, Termination, Acceleration, or Offset Under 
     a Master Netting Agreement and Across Contracts.--Title 11, 
     United States Code, is amended by inserting after section 560 
     the following new section:

     ``Sec. 561. Contractual right to terminate, liquidate, 
       accelerate, or offset under a master netting agreement and 
       across contracts

       ``(a) Subject to subsection (b), the exercise of any 
     contractual right, because of a condition of the kind 
     specified in section 365(e)(1), to cause the termination, 
     liquidation, or acceleration of or to offset or net 
     termination values, payment amounts or other transfer 
     obligations arising under or in connection with 1 or more (or 
     the termination, liquidation, or acceleration of 1 or more)--
       ``(1) securities contracts, as defined in section 741(7);
       ``(2) commodity contracts, as defined in section 761(4);
       ``(3) forward contracts;
       ``(4) repurchase agreements;
       ``(5) swap agreements; or
       ``(6) master netting agreements,
     shall not be stayed, avoided, or otherwise limited by 
     operation of any provision of this title or by any order of a 
     court or administrative agency in any proceeding under this 
     title.
       ``(b)(1) A party may exercise a contractual right described 
     in subsection (a) to terminate, liquidate, or accelerate only 
     to the extent that such party could exercise such a right 
     under section 555, 556, 559, or 560 for each individual 
     contract covered by the master netting agreement in issue.
       ``(2)(A) A party may not exercise a contractual right 
     described in subsection (a) to offset or to net obligations 
     arising under, or in connection with, a commodity contract 
     against obligations arising under, or in connection with, any 
     instrument listed in subsection (a), if the obligations are 
     not mutual.
       ``(B) If a debtor is a commodity broker subject to 
     subchapter IV of chapter 7,a party may not net or offset an 
     obligation to the debtor arising under, or in connection 
     with, a commodity contract against any claim arising under, 
     or in connection with, other instruments if that party has no 
     positive net equity in the commodity account of the debtor, 
     as calculated under subchapter IV.
       ``(c) As used in this section, the term `contractual right' 
     includes a right set forth in a rule or bylaw of a national 
     securities exchange, a national securities association, or a 
     securities clearing agency, a right set forth in a bylaw of a 
     clearing organization or contract market or in a resolution 
     of the governing board thereof, and a right, whether or not 
     evidenced in writing, arising under common law, under law 
     merchant, or by reason of normal business practice.''.
       (l) Municipal Bankruptcies.--Section 901 of title 11, 
     United States Code, is amended--
       (1) by inserting ``, 555, 556'' after ``553''; and
       (2) by inserting ``, 559, 560, 561, 562,'' after ``557''.
       (m) Ancillary Proceedings.--Section 304 of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(d) Any provisions of this title relating to securities 
     contracts, commodity contracts, forward contracts, repurchase 
     agreements, swap agreements, or master netting agreements 
     shall apply in a case ancillary to a foreign proceeding under 
     this section or any other section of this title, so that 
     enforcement of contractual provisions of such contracts and 
     agreements in accordance with their terms--
       ``(1) shall not be stayed or otherwise limited by--
       ``(A) operation of any provision of this title; or
       ``(B) order of a court in any case under this title;
       ``(2) shall limit avoidance powers to the same extent as in 
     a proceeding under chapter 7 or 11; and
       ``(3) shall not be limited based on the presence or absence 
     of assets of the debtor in the United States.''.
       (n) Commodity Broker Liquidations.--Title 11, United States 
     Code, is amended by inserting after section 766 the 
     following:

     ``Sec. 767. Commodity broker liquidation and forward contract 
       merchants, commodity brokers, stockbrokers, financial 
       institutions, securities clearing agencies, swap 
       participants, repo participants, and master netting 
       agreement participants

       ``Notwithstanding any other provision of this title, the 
     exercise of rights by a forward contract merchant, commodity 
     broker, stockbroker, financial institution, securities 
     clearing agency, swap participant, repo participant, or 
     master netting agreement participant under this title shall 
     not affect the

[[Page S4597]]

     priority of any unsecured claim it may have after the 
     exercise of such rights or affect any provision of this 
     subchapter relating to customer property or distributions.''.
       (o) Stockbroker Liquidations.--Title 11, United States 
     Code, is amended by inserting after section 752 the 
     following:

     ``Sec. 753. Stockbroker liquidation and forward contract 
       merchants, commodity brokers, stockbrokers, financial 
       institutions, securities clearing agencies, swap 
       participants, repo participants, and master netting 
       agreement participants

       ``Notwithstanding any other provision of this title, the 
     exercise of rights by a forward contract merchant, commodity 
     broker, stockbroker, financial institution, securities 
     clearing agency, swap participant, repo participant, or 
     master netting agreement participant under this title shall 
     not affect the priority of any unsecured claim it may have 
     after the exercise of rights or affect any provision of this 
     subchapter relating to customer property or distributions.''.
       (p) Setoff.--Section 553 of title 11, United States Code, 
     is amended--
       (1) in subsection (a)(3)(C), by inserting ``(except for a 
     setoff of a kind described in section 362(b)(6), 362(b)(7), 
     362(b)(17), 362(b)(21), 555, 556, 559, 560, or 561)'' before 
     the period; and
       (2) in subsection (b)(1), by striking ``362(b)(14),'' and 
     inserting ``362(b)(17), 362(b)(21), 555, 556, 559, 560,''.
       (q) Securities Contracts, Commodity Contracts, and Forward 
     Contracts.--Title 11, United States Code, is amended--
       (1) in section 362(b)(6), by striking ``financial 
     institutions,'' each place such term appears and inserting 
     ``financial institution, financial participant'';
       (2) in section 546(e), by inserting ``financial 
     participant'' after ``financial institution,'';
       (3) in section 548(d)(2)(B), by inserting ``financial 
     participant'' after ``financial institution,'';
       (4) in section 555--
       (A) by inserting ``financial participant'' after 
     ``financial institution,''; and
       (B) by inserting before the period ``, a right set forth in 
     a bylaw of a clearing organization or contract market or in a 
     resolution of the governing board thereof, and a right, 
     whether or not in writing, arising under common law, under 
     law merchant, or by reason of normal business practice''; and
       (5) in section 556, by inserting ``, financial 
     participant'' after ``commodity broker''.
       (r) Technical and Conforming Amendment.--Section 104 of 
     title 11, United States Code, is amended by adding at the end 
     the following:
       ``(c) Exception for Certain Defined Terms.--No adjustments 
     shall be made under this section to the dollar amounts set 
     forth in the definition of the term `financial participant' 
     in section 101 (22A).''.
       (s) Conforming Amendments.--Title 11 of the United States 
     Code is amended--
       (1) in the table of sections for chapter 5--
       (A) by striking the items relating to sections 555 and 556 
     and inserting the following:

``555. Contractual right to liquidate, terminate, or accelerate a 
              securities contract.
``556. Contractual right to liquidate, terminate, or accelerate a 
              commodities contract or forward contract.'';

       (B) by striking the items relating to sections 559 and 560 
     and inserting the following:

``559. Contractual right to liquidate, terminate, or accelerate a 
              repurchase agreement.
``560. Contractual right to liquidate, terminate, or accelerate a swap 
              agreement.'';

     and
       (C) by adding after the item relating to section 560 the 
     following:

``561. Contractual right to terminate, liquidate, accelerate, or offset 
              under a master netting agreement and across contracts.'';

     and
       (2) in the table of sections for chapter 7--
       (A) by inserting after the item relating to section 766 the 
     following:

``767. Commodity broker liquidation and forward contract merchants, 
              commodity brokers, stockbrokers, financial institutions, 
              securities clearing agencies, swap participants, repo 
              participants, and master netting agreement 
              participants.'';

     and
       (B) by inserting after the item relating to section 752 the 
     following:

``753. Stockbroker liquidation and forward contract merchants, 
              commodity brokers, stockbrokers, financial institutions, 
              securities clearing agencies, swap participants, repo 
              participants, and master netting agreement 
              participants.''.

     SEC. 402. DAMAGE MEASURE.

       (a) In General.--Title 11, United States Code, is amended 
     by inserting after section 561 (as added by section 401(b)) 
     the following:

     ``Sec. 562. Damage measure in connection with swap 
       agreements, securities contracts, forward contracts, 
       commodity contracts, repurchase agreements, or master 
       netting agreements

       ``If the trustee rejects a swap agreement, securities 
     contract as defined in section 741, forward contract, 
     repurchase agreement, or master netting agreement pursuant to 
     section 365(a), or if a forward contract merchant, 
     stockbroker, financial institution, securities clearing 
     agency, repo participant, master netting agreement 
     participant, or swap participant liquidates, terminates, or 
     accelerates any such contract or agreement, damages shall be 
     measured as of the earlier of--
       ``(1) the date of such rejection; or
       ``(2) the date of such liquidation, termination, or 
     acceleration.''.
       (b) Claims Arising From Rejection.--Section 502(g) of title 
     11, United States Code, is amended--
       (1) by designating the existing text as paragraph (1); and
       (2) by adding at the end the following new paragraph:
       ``(2) A claim for damages calculated in accordance with 
     section 562 shall be allowed under subsection (a), (b), or 
     (c) of this section or disallowed under subsection (d) or (e) 
     of this section as if such claim had arisen before the date 
     of the filing of the petition.''.

     SEC. 403. ASSET-BACKED SECURITIZATIONS.

       Section 541 of title 11, United States Code, as amended by 
     section 336 of this Act, is amended--
       (1) in subsection (b)--
       (A) by striking ``or'' at the end of paragraph (6); and
       (B) by redesignating paragraph (7) as paragraph (8);
       (2) by inserting after paragraph (6) the following:
       ``(7) any eligible asset (or proceeds thereof), to the 
     extent that such eligible asset was transferred by the 
     debtor, before the date of commencement of the case, to an 
     eligible entity in connection with an asset-backed 
     securitization, except to the extent such asset (or proceeds 
     or value thereof) may be recovered by the trustee under 
     section 550 by reason of avoidance under section 548(a); 
     or''; and
       (3) by adding at the end the following new subsection:
       ``(e) In this section:
       ``(1) The term `asset-backed securitization' means a 
     transaction in which eligible assets transferred to an 
     eligible entity are used as the source of payment on 
     securities, the most senior of which are rated investment 
     grade by 1 or more nationally recognized securities rating 
     organizations, issued by an issuer.
       ``(2) The term `eligible asset' means--
       ``(A) financial assets (including interests therein and 
     proceeds thereof), either fixed or revolving, including 
     residential and commercial mortgage loans, consumer 
     receivables, trade receivables, and lease receivables, that, 
     by their terms, convert into cash within a finite time 
     period, plus any rights or other assets designed to assure 
     the servicing or timely distribution of proceeds to security 
     holders;
       ``(B) cash; and
       ``(C) securities.
       ``(3) The term `eligible entity' means--
       ``(A) an issuer; or
       ``(B) a trust, corporation, partnership, or other entity 
     engaged exclusively in the business of acquiring and 
     transferring eligible assets directly or indirectly to an 
     issuer and taking actions ancillary thereto.
       ``(4) The term `issuer' means a trust, corporation, 
     partnership, or other entity engaged exclusively in the 
     business of acquiring and holding eligible assets, issuing 
     securities backed by eligible assets, and taking actions 
     ancillary thereto.
       ``(5) The term `transferred' means, with respect to a 
     debtor, that the debtor, under a written agreement, 
     represented and warranted that eligible assets were sold, 
     contributed, or otherwise conveyed with the intention of 
     removing them from the estate of the debtor pursuant to 
     subsection (b)(5), without regard to--
       ``(A) whether the debtor directly or indirectly obtained or 
     held an interest in the issuer or in any securities issued by 
     the issuer;
       ``(B) whether the debtor had an obligation to repurchase or 
     to service or supervise the servicing of all or any portion 
     of such eligible assets; or
       ``(C) the characterization of such sale, contribution, or 
     other conveyance for tax, accounting, regulatory reporting, 
     or other purposes.''.

     SEC. 404. 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.''.

     SEC. 405. 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

[[Page S4598]]

     long as the debtor or the trustee has a legal, equitable, or 
     possessory ownership interest in such unit, such corporation, 
     or such lot,''.

     SEC. 406. BANKRUPTCY FEES.

       Section 1930 of title 28, United States Code, is amended--
       (1) in subsection (a), by striking ``Notwithstanding 
     section 1915, the parties'' and inserting ``Subject to 
     subsection (f), the parties''; and
       (2) by adding at the end the following:
       ``(f)(1) The Judicial Conference of the United States shall 
     prescribe procedures for waiving fees under this subsection.
       ``(2) Under the procedures described in paragraph (1), the 
     district court or the bankruptcy court may waive a filing fee 
     described in paragraph (3) for a case commenced under chapter 
     7 of title 11 if the court determines that an individual 
     debtor is unable to pay that fee in installments.
       ``(3) A filing fee referred to in paragraph (2) is--
       ``(A) a filing fee under subsection (a)(1); or
       ``(B) any other fee prescribed by the Judicial Conference 
     of the United States under subsection (b) that is payable to 
     the clerk of the district court or the clerk of the 
     bankruptcy court upon the commencement of a case under 
     chapter 7 of title 11.
       ``(4) In addition to waiving a fee described in paragraph 
     (3) under paragraph (2), the district court or the bankruptcy 
     court may waive any other fee prescribed under subsection (b) 
     or (c) if the court determines that the individual is unable 
     to pay that fee in installments.''.

     SEC. 407. APPLICABILITY.

       The amendments made by this title shall apply with respect 
     to cases commenced or appointments made under any Federal or 
     State law after the date of enactment of this Act.

            TITLE V--ANCILLARY AND OTHER CROSS-BORDER CASES

     SEC. 501. AMENDMENT TO ADD CHAPTER 6 TO TITLE 11, UNITED 
                   STATES CODE.

       (a) In General.--Title 11, United States Code, is amended 
     by inserting after chapter 5 the following:

          ``CHAPTER 6--ANCILLARY AND OTHER CROSS-BORDER CASES

``Sec.
``601. Purpose and scope of application.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``602. Definitions.
``603. International obligations of the United States.
``604. Commencement of ancillary case.
``605. Authorization to act in a foreign country.
``606. Public policy exception.
``607. Additional assistance.
``608. Interpretation.

``SUBCHAPTER II--ACCESS OF FOREIGN REPRESENTATIVES AND CREDITORS TO THE 
                                 COURT

``609. Right of direct access.
``610. Limited jurisdiction.
``611. Commencement of case under section 301 or 303.
``612. Participation of a foreign representative in a case under this 
              title.
``613. Access of foreign creditors to a case under this title.
``614. Notification to foreign creditors concerning a case under this 
              title.

    ``SUBCHAPTER III--RECOGNITION OF A FOREIGN PROCEEDING AND RELIEF

``615. Application for recognition of a foreign proceeding.
``616. Presumptions concerning recognition.
``617. Order recognizing a foreign proceeding.
``618. Subsequent information.
``619. Relief that may be granted upon petition for recognition of a 
              foreign proceeding.
``620. Effects of recognition of a foreign main proceeding.
``621. Relief that may be granted upon recognition of a foreign 
              proceeding.
``622. Protection of creditors and other interested persons.
``623. Actions to avoid acts detrimental to creditors.
``624. Intervention by a foreign representative.

     ``SUBCHAPTER IV--COOPERATION WITH FOREIGN COURTS AND FOREIGN 
                            REPRESENTATIVES

``625. Cooperation and direct communication between the court and 
              foreign courts or foreign representatives.
``626. Cooperation and direct communication between the trustee and 
              foreign courts or foreign representatives.
``627. Forms of cooperation.

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``628. Commencement of a case under this title after recognition of a 
              foreign main proceeding.
``629. Coordination of a case under this title and a foreign 
              proceeding.
``630. Coordination of more than 1 foreign proceeding.
``631. Presumption of insolvency based on recognition of a foreign main 
              proceeding.
``632. Rule of payment in concurrent proceedings.

     ``Sec. 601. Purpose and scope of application

       ``(a) The purpose of this chapter is to incorporate the 
     Model Law on Cross-Border Insolvency so as to provide 
     effective mechanisms for dealing with cases of cross-border 
     insolvency with the objectives of--
       ``(1) cooperation between--
       ``(A) United States courts, United States trustees, 
     trustees, examiners, debtors, and debtors in possession; and
       ``(B) the courts and other competent authorities of foreign 
     countries involved in cross-border insolvency cases;
       ``(2) greater legal certainty for trade and investment;
       ``(3) fair and efficient administration of cross-border 
     insolvencies that protects the interests of all creditors, 
     and other interested entities, including the debtor;
       ``(4) protection and maximization of the value of the 
     debtor's assets; and
       ``(5) facilitation of the rescue of financially troubled 
     businesses, thereby protecting investment and preserving 
     employment.
       ``(b) This chapter applies if--
       ``(1) assistance is sought in the United States by a 
     foreign court or a foreign representative in connection with 
     a foreign proceeding;
       ``(2) assistance is sought in a foreign country in 
     connection with a case under this title;
       ``(3) a foreign proceeding and a case under this title with 
     respect to the same debtor are taking place concurrently; or
       ``(4) creditors or other interested persons in a foreign 
     country have an interest in requesting the commencement of, 
     or participating in, a case or proceeding under this title.
       ``(c) This chapter does not apply to--
       ``(1) a proceeding concerning an entity identified by 
     exclusion in subsection 109(b); or
       ``(2) an individual, or to an individual and such 
     individual's spouse, who have debts within the limits 
     specified in section 109(e) and who are citizens of the 
     United States or aliens lawfully admitted for permanent 
     residence in the United States.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

     ``Sec. 602. Definitions

       ``For purposes of this chapter, the term--
       ``(1) `debtor' means an entity that is the subject of a 
     foreign proceeding;
       ``(2) `establishment' means any place of operations where 
     the debtor carries out a nontransitory economic activity;
       ``(3) `foreign court' means a judicial or other authority 
     competent to control or supervise a foreign proceeding;
       ``(4) `foreign main proceeding' means a foreign proceeding 
     taking place in the country where the debtor has the center 
     of its main interests;
       ``(5) `foreign nonmain proceeding' means a foreign 
     proceeding, other than a foreign main proceeding, taking 
     place in a country where the debtor has an establishment;
       ``(6) `trustee' includes a trustee, a debtor in possession 
     in a case under any chapter of this title, or a debtor under 
     chapter 9 or 13 of this title; and
       ``(7) `within the territorial jurisdiction of the United 
     States' when used with reference to property of a debtor 
     refers to tangible property located within the territory of 
     the United States and intangible property deemed to be 
     located within that territory, including any property that 
     may properly be seized or garnished by an action in a Federal 
     or State court in the United States.

     ``Sec. 603. International obligations of the United States

       ``To the extent that this chapter conflicts with an 
     obligation of the United States arising out of any treaty or 
     other form of agreement to which it is a party with 1 or more 
     other countries, the requirements of the treaty or agreement 
     prevail.

     ``Sec. 604. Commencement of ancillary case

       ``A case under this chapter is commenced by the filing of a 
     petition for recognition of a foreign proceeding under 
     section 615.

     ``Sec. 605. Authorization to act in a foreign country

       ``A trustee or another entity designated by the court, may 
     be authorized by the court to act in a foreign country on 
     behalf of an estate created under section 541. An entity 
     authorized to act under this section may act in any way 
     permitted by the applicable foreign law.

     ``Sec. 606. Public policy exception

       ``Nothing in this chapter prevents the court from refusing 
     to take an action governed by this chapter if the action 
     would be manifestly contrary to the public policy of the 
     United States.

     ``Sec. 607. Additional assistance

       ``(a) Nothing in this chapter limits the power of the 
     court, upon recognition of a foreign proceeding, to provide 
     additional assistance to a foreign representative under this 
     title or under other laws of the United States.
       ``(b) In determining whether to provide additional 
     assistance under this title or under other laws of the United 
     States, the court shall consider whether such additional 
     assistance, consistent with the principles of comity, will 
     reasonably assure--
       ``(1) just treatment of all holders of claims against or 
     interests in the debtor's property;
       ``(2) protection of claim holders in the United States 
     against prejudice and inconvenience in the processing of 
     claims in such foreign proceeding;
       ``(3) prevention of preferential or fraudulent dispositions 
     of property of the debtor;
       ``(4) distribution of proceeds of the debtor's property 
     substantially in accordance with the order prescribed by this 
     title; and
       ``(5) if appropriate, the provision of an opportunity for a 
     fresh start for the individual that such foreign proceeding 
     concerns.

[[Page S4599]]

     ``Sec. 608. Interpretation

       ``In interpreting this chapter, the court shall consider 
     its international origin, and the need to promote an 
     application of this chapter that is consistent with the 
     application of similar statutes adopted by foreign 
     jurisdictions.

``SUBCHAPTER II--ACCESS OF FOREIGN REPRESENTATIVES AND CREDITORS TO THE 
                                 COURT

     ``Sec. 609. Right of direct access

       ``(a) A foreign representative is entitled to commence a 
     case under section 604 by filing a petition for recognition 
     under section 615, and upon recognition, to apply directly to 
     other Federal and State courts for appropriate relief in 
     those courts.
       ``(b) Upon recognition, and subject to section 610, a 
     foreign representative shall have the capacity to sue and be 
     sued.
       ``(c) Recognition under this chapter is prerequisite to the 
     granting of comity or cooperation to a foreign representative 
     in any Federal or State court in the United States. Any 
     request for comity or cooperation by a foreign representative 
     in any court shall be accompanied by a sworn statement 
     setting forth whether recognition under section 615 has been 
     sought and the status of any such petition.
       ``(d) Upon denial of recognition under this chapter, the 
     court may issue appropriate orders necessary to prevent an 
     attempt to obtain comity or cooperation from courts in the 
     United States without such recognition.

     ``Sec. 610. Limited jurisdiction

       ``The sole fact that a foreign representative files a 
     petition under sections 604 and 615 does not subject the 
     foreign representative to the jurisdiction of any court in 
     the United States for any other purpose.

     ``Sec. 611. Commencement of case under section 301 or 303

       ``(a) Upon filing a petition for recognition, a foreign 
     representative may commence--
       ``(1) an involuntary case under section 303; or
       ``(2) a voluntary case under section 301 or 302, if the 
     foreign proceeding is a foreign main proceeding.
       ``(b) The petition commencing a case under subsection (a) 
     must be accompanied by a statement describing the petition 
     for recognition and its current status. The court where the 
     petition for recognition has been filed must be advised of 
     the foreign representative's intent to commence a case under 
     subsection (a) prior to such commencement.
       ``(c) A case under subsection (a) shall be dismissed unless 
     recognition is granted.

     ``Sec. 612. Participation of a foreign representative in a 
       case under this title

       ``Upon recognition of a foreign proceeding, the foreign 
     representative in that proceeding is entitled to participate 
     as a party in interest in a case regarding the debtor under 
     this title.

     ``Sec. 613. Access of foreign creditors to a case under this 
       title

       ``(a) Foreign creditors have the same rights regarding the 
     commencement of, and participation in, a case under this 
     title as domestic creditors.
       ``(b)(1) Subsection (a) does not change or codify law in 
     effect on the date of enactment of this chapter as to the 
     priority of claims under section 507 or 726, except that the 
     claim of a foreign creditor under section 507 or 726 shall 
     not be given a lower priority than that of general unsecured 
     claims without priority solely because the holder of such 
     claim is a foreign creditor.
       ``(2)(A) Subsection (a) and paragraph (1) do not change or 
     codify law in effect on the date of enactment of this chapter 
     as to the allowability of foreign revenue claims or other 
     foreign public law claims in a proceeding under this title.
       ``(B) Allowance and priority as to a foreign tax claim or 
     other foreign public law claim shall be governed by any 
     applicable tax treaty of the United States, under the 
     conditions and circumstances specified therein.

     ``Sec. 614. Notification to foreign creditors concerning a 
       case under this title

       ``(a) Whenever in a case under this title notice is to be 
     given to creditors generally or to any class or category of 
     creditors, such notice shall also be given to the known 
     creditors generally, or to creditors in the notified class or 
     category, that do not have addresses in the United States. 
     The court may order that appropriate steps be taken with a 
     view to notifying any creditor whose address is not yet 
     known.
       ``(b) The notification to creditors with foreign addresses 
     described in subsection (a) shall be given individually, 
     unless the court considers that, under the circumstances, 
     some other form of notification would be more appropriate. No 
     letters rogatory or other similar formality is required.
       ``(c) When a notification of commencement of a case is to 
     be given to foreign creditors, the notification shall--
       ``(1) indicate the time period for filing proofs of claim 
     and specify the place for their filing;
       ``(2) indicate whether secured creditors need to file their 
     proofs of claim; and
       ``(3) contain any other information required to be included 
     in such a notification to creditors pursuant to this title 
     and the orders of the court.
       ``(d) Any rule of procedure or order of the court as to 
     notice or the filing of a claim shall provide such additional 
     time to creditors with foreign addresses as is reasonable 
     under the circumstances.

    ``SUBCHAPTER III--RECOGNITION OF A FOREIGN PROCEEDING AND RELIEF

     ``Sec. 615. Application for recognition of a foreign 
       proceeding

       ``(a) A foreign representative applies to the court for 
     recognition of the foreign proceeding in which the foreign 
     representative has been appointed by filing a petition for 
     recognition.
       ``(b) A petition for recognition shall be accompanied by--
       ``(1) a certified copy of the decision commencing the 
     foreign proceeding and appointing the foreign representative;
       ``(2) a certificate from the foreign court affirming the 
     existence of the foreign proceeding and of the appointment of 
     the foreign representative; or
       ``(3) in the absence of evidence referred to in paragraphs 
     (1) and (2), any other evidence acceptable to the court of 
     the existence of the foreign proceeding and of the 
     appointment of the foreign representative.
       ``(c) A petition for recognition shall also be accompanied 
     by a statement identifying all foreign proceedings with 
     respect to the debtor that are known to the foreign 
     representative.
       ``(d) The documents referred to in paragraphs (1) and (2) 
     of subsection (b) must be translated into English. The court 
     may require a translation into English of additional 
     documents.

     ``Sec. 616. Presumptions concerning recognition

       ``(a) If the decision or certificate referred to in section 
     615(b) indicates that the foreign proceeding is a foreign 
     proceeding, within the meaning of section 101(23) and that 
     the person or body is a foreign representative, within the 
     meaning of section 101(24), the court is entitled to so 
     presume.
       ``(b) The court is entitled to presume that documents 
     submitted in support of the petition for recognition are 
     authentic, whether or not the documents have been subjected 
     to legal processing under applicable law.
       ``(c) In the absence of evidence to the contrary, the 
     debtor's registered office, or habitual residence in the case 
     of an individual, is presumed to be the center of the 
     debtor's main interests.

     ``Sec. 617. Order recognizing a foreign proceeding

       ``(a) Subject to section 606, an order recognizing a 
     foreign proceeding shall be entered if--
       ``(1) the foreign proceeding is a foreign main proceeding 
     or foreign nonmain proceeding within the meaning of section 
     602 and is a foreign proceeding within the meaning of section 
     101(23);
       ``(2) the person or body applying for recognition is a 
     foreign representative within the meaning of section 101(24); 
     and
       ``(3) the petition meets the requirements of section 615.
       ``(b) The foreign proceeding shall be recognized--
       ``(1) as a foreign main proceeding if it is taking place in 
     the country where the debtor has the center of its main 
     interests; or
       ``(2) as a foreign nonmain proceeding if the debtor has an 
     establishment within the meaning of section 602 in the 
     foreign country where the proceeding is pending.
       ``(c) A petition for recognition of a foreign proceeding 
     shall be decided upon at the earliest possible time. Entry of 
     an order recognizing a foreign proceeding shall constitute 
     recognition under this chapter.
       ``(d) The provisions of this subchapter do not prevent 
     modification or termination of recognition if it is shown 
     that the grounds for granting it were fully or partially 
     lacking or have ceased to exist, but in considering such 
     action the court shall give due weight to possible prejudice 
     to parties that have relied upon the granting of recognition. 
     The case under this chapter may be closed in the manner 
     prescribed for a case under section 350.

     ``Sec. 618. Subsequent information

       ``After the petition for recognition of the foreign 
     proceeding is filed, the foreign representative shall file 
     with the court promptly a notice of change of status 
     concerning--
       ``(1) any substantial change in the status of the foreign 
     proceeding or the status of the foreign representative's 
     appointment; and
       ``(2) any other foreign proceeding regarding the debtor 
     that becomes known to the foreign representative.

     ``Sec. 619. Relief that may be granted upon petition for 
       recognition of a foreign proceeding

       ``(a) Beginning on the date on which a petition for 
     recognition is filed and ending on the date on which the 
     petition is decided upon, the court may, at the request of 
     the foreign representative, if relief is urgently needed to 
     protect the assets of the debtor or the interests of the 
     creditors, grant relief of a provisional nature, including--
       ``(1) staying execution against the debtor's assets;
       ``(2) entrusting the administration or realization of all 
     or part of the debtor's assets located in the United States 
     to the foreign representative or another person, including an 
     examiner, designated by the court, including an examiner, in 
     order to protect and preserve the value of assets that, by 
     their nature or because of other circumstances, are 
     perishable, susceptible to devaluation, or otherwise in 
     jeopardy; and
       ``(3) any relief referred to in paragraph (3), (4), or (7) 
     of section 621(a).
       ``(b) Unless extended under section 621(a)(6), the relief 
     granted under this section

[[Page S4600]]

     terminates when the petition for recognition is decided upon.
       ``(c) It is a ground for denial of relief under this 
     section that such relief would interfere with the 
     administration of a foreign main proceeding.
       ``(d) The court may not enjoin a police or regulatory act 
     of a governmental unit, including a criminal action or 
     proceeding, under this section.
       ``(e) The standards, procedures, and limitations applicable 
     to an injunction shall apply to relief under this section.

     ``Sec. 620. Effects of recognition of a foreign main 
       proceeding

       ``(a)(1) Upon recognition of a foreign proceeding that is a 
     foreign main proceeding--
       ``(A) section 362 applies with respect to the debtor and 
     that property of the debtor that is within the territorial 
     jurisdiction of the United States; and
       ``(B) a transfer, an encumbrance, or any other disposition 
     of an interest of the debtor in property within the 
     territorial jurisdiction of the United States is restrained 
     as and to the extent that is provided for property of an 
     estate under sections 363, 549, and 552.
       ``(2) Unless the court orders otherwise, the foreign 
     representative may operate the debtor's business and 
     may exercise the powers of a trustee under section 549, 
     subject to sections 363 and 552.
       ``(b) The scope, and the modification or termination, of 
     the stay and restraints referred to in subsection (a) are 
     subject to the exceptions and limitations provided in 
     subsections (b), (c), and (d) of section 362, subsections (b) 
     and (c) of section 363, and sections 552, 555 through 557, 
     559, and 560.
       ``(c) Subsection (a) does not affect the right to commence 
     individual actions or proceedings in a foreign country to the 
     extent necessary to preserve a claim against the debtor.
       ``(d) Subsection (a) does not affect the right of a foreign 
     representative or an entity to file a petition commencing a 
     case under this title or the right of any party to file 
     claims or take other proper actions in such a case.

     ``Sec. 621. Relief that may be granted upon recognition of a 
       foreign proceeding

       ``(a) Upon recognition of a foreign proceeding, whether 
     main or nonmain, if necessary to effectuate the purpose of 
     this chapter and to protect the assets of the debtor or the 
     interests of the creditors, the court may, at the request of 
     the foreign representative, grant any appropriate relief, 
     including--
       ``(1) staying the commencement or continuation of 
     individual actions or individual proceedings concerning the 
     debtor's assets, rights, obligations, or liabilities to the 
     extent the actions or proceedings have not been stayed under 
     section 620(a);
       ``(2) staying execution against the debtor's assets to the 
     extent the execution has not been stayed under section 
     620(a);
       ``(3) suspending the right to transfer, encumber, or 
     otherwise dispose of any assets of the debtor to the extent 
     that right has not been suspended under section 620(a);
       ``(4) providing for the examination of witnesses, the 
     taking of evidence, or the delivery of information concerning 
     the debtor's assets, affairs, rights, obligations, or 
     liabilities;
       ``(5) entrusting the administration or realization of all 
     or part of the debtor's assets within the territorial 
     jurisdiction of the United States to the foreign 
     representative or another person, including an examiner, 
     designated by the court;
       ``(6) extending relief granted under section 619(a); and
       ``(7) granting any additional relief that may be available 
     to a trustee, except for relief available under sections 522, 
     544, 545, 547, 548, 550, and 724(a).
       ``(b) Upon recognition of a foreign proceeding, whether 
     main or nonmain, the court may, at the request of the foreign 
     representative, entrust the distribution of all or part of 
     the debtor's assets located in the United States to the 
     foreign representative or another person, including an 
     examiner, designated by the court, if the court is satisfied 
     that the interests of creditors in the United States are 
     sufficiently protected.
       ``(c) In granting relief under this section to a 
     representative of a foreign nonmain proceeding, the court 
     must be satisfied that the relief relates to assets that, 
     under the laws of the United States, should be administered 
     in the foreign nonmain proceeding or concerns information 
     required in that proceeding.
       ``(d) The court may not enjoin a police or regulatory act 
     of a governmental unit, including a criminal action or 
     proceeding, under this section.

     ``Sec. 622. Protection of creditors and other interested 
       persons

       ``(a) The court may grant relief under section 619 or 621, 
     or may modify or terminate relief under subsection (c), only 
     if the court finds that the interests of the creditors and 
     other interested entities, including the debtor, are 
     sufficiently protected.
       ``(b) The court may subject relief granted under section 
     619 or 621 to conditions that the court considers to be 
     appropriate.
       ``(c) The court may, at the request of the foreign 
     representative or an entity affected by relief granted under 
     section 619 or 621, or at its own motion, modify or terminate 
     the relief.

     ``Sec. 623. Actions to avoid acts detrimental to creditors

       ``(a) Upon recognition of a foreign proceeding, the foreign 
     representative has standing in a case concerning the debtor 
     pending under another chapter of this title to initiate 
     actions under sections 522, 544, 545, 547, 548, 550, and 
     724(a).
       ``(b) In any case in which the foreign proceeding is a 
     foreign nonmain proceeding, the court must be satisfied that 
     an action under subsection (a) relates to assets that, under 
     United States law, should be administered in the foreign 
     nonmain proceeding.

     ``Sec. 624. Intervention by a foreign representative

       ``Upon recognition of a foreign proceeding, the foreign 
     representative may intervene in any proceedings in a Federal 
     or State court in the United States in which the debtor is a 
     party.

     ``SUBCHAPTER IV--COOPERATION WITH FOREIGN COURTS AND FOREIGN 
                            REPRESENTATIVES

     ``Sec. 625. Cooperation and direct communication between the 
       court and foreign courts or foreign representatives

       ``(a) In all matters included within section 601, the court 
     shall cooperate to the maximum extent possible with foreign 
     courts or foreign representatives, either directly or through 
     the trustee.
       ``(b) The court is entitled to communicate directly with, 
     or to request information or assistance directly from, 
     foreign courts or foreign representatives, subject to the 
     rights of parties in interest to notice and participation.

     ``Sec. 626. Cooperation and direct communication between the 
       trustee and foreign courts or foreign representatives

       ``(a) In all matters included within section 601, the 
     trustee or other person, including an examiner, designated by 
     the court, shall, subject to the supervision of the court, 
     cooperate to the maximum extent possible with foreign courts 
     or foreign representatives.
       ``(b) The trustee or other person, including an examiner, 
     designated by the court is entitled, subject to the 
     supervision of the court, to communicate directly with 
     foreign courts or foreign representatives.
       ``(c) Section 1104(d) shall apply to the appointment of an 
     examiner under this chapter. Any such examiner shall comply 
     with the qualifications requirements imposed on a trustee 
     under section 322(a).

     ``Sec. 627. Forms of cooperation

       ``Cooperation referred to in sections 625 and 626 may be 
     implemented by any appropriate means, including--
       ``(1) appointment of a person or body, including an 
     examiner, to act at the direction of the court;
       ``(2) communication of information by any means considered 
     appropriate by the court;
       ``(3) coordination of the administration and supervision of 
     the debtor's assets and affairs;
       ``(4) approval or implementation of agreements concerning 
     the coordination of proceedings; and
       ``(5) coordination of concurrent proceedings regarding the 
     same debtor.

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

     ``Sec. 628. Commencement of a case under this title after 
       recognition of a foreign main proceeding

       ``After recognition of a foreign main proceeding, a case 
     under another chapter of this title may be commenced only if 
     the debtor has assets in the United States. The effects of 
     such case shall be restricted to the assets of the debtor 
     that are within the territorial jurisdiction of the United 
     States and, to the extent necessary to implement cooperation 
     and coordination under sections 625, 626, and 627, to other 
     assets of the debtor that are within the jurisdiction of the 
     court under sections 541(a) and 1334(e) of title 28, to the 
     extent that such other assets are not subject to the 
     jurisdiction and control of a foreign proceeding that has 
     been recognized under this chapter.

     ``Sec. 629. Coordination of a case under this title and a 
       foreign proceeding

       ``In any case in which a foreign proceeding and a case 
     under another chapter of this title are taking place 
     concurrently regarding the same debtor, the court shall seek 
     cooperation and coordination under sections 625, 626, and 
     627, and the following shall apply:
       ``(1) If the case in the United States is taking place at 
     the time the petition for recognition of the foreign 
     proceeding is filed--
       ``(A) any relief granted under section 619 or 621 shall be 
     consistent with the relief granted in the case in the United 
     States; and
       ``(B) even if the foreign proceeding is recognized as a 
     foreign main proceeding, section 620 does not apply.
       ``(2) If a case in the United States under this title 
     commences after recognition, or after the filing of the 
     petition for recognition, of the foreign proceeding--
       ``(A) any relief in effect under section 619 or 621 shall 
     be reviewed by the court and shall be modified or terminated 
     if inconsistent with the case in the United States; and
       ``(B) if the foreign proceeding is a foreign main 
     proceeding, the stay and suspension referred to in section 
     620(a) shall be modified or terminated if inconsistent with 
     the relief granted in the case in the United States.
       ``(3) In granting, extending, or modifying relief granted 
     to a representative of a foreign nonmain proceeding, the 
     court shall be satisfied that the relief relates to assets 
     that, under the law of the United States, should be

[[Page S4601]]

     administered in the foreign nonmain proceeding or concerns 
     information required in that proceeding.
       ``(4) In achieving cooperation and coordination under 
     sections 628 and 629, the court may grant any of the relief 
     authorized under section 305.

     ``Sec. 630. Coordination of more than 1 foreign proceeding

       ``In matters referred to in section 601, with respect to 
     more than 1 foreign proceeding regarding the debtor, the 
     court shall seek cooperation and coordination under sections 
     625, 626, and 627, and the following shall apply:
       ``(1) Any relief granted under section 619 or 621 to a 
     representative of a foreign nonmain proceeding after 
     recognition of a foreign main proceeding shall be consistent 
     with the foreign main proceeding.
       ``(2) If a foreign main proceeding is recognized after 
     recognition, or after the filing of a petition for 
     recognition, of a foreign nonmain proceeding, any relief in 
     effect under section 619 or 621 shall be reviewed by the 
     court and shall be modified or terminated if inconsistent 
     with the foreign main proceeding.
       ``(3) If, after recognition of a foreign nonmain 
     proceeding, another foreign nonmain proceeding is recognized, 
     the court shall grant, modify, or terminate relief for the 
     purpose of facilitating coordination of the proceedings.

     ``Sec. 631. Presumption of insolvency based on recognition of 
       a foreign main proceeding

       ``In the absence of evidence to the contrary, recognition 
     of a foreign main proceeding is for the purpose of commencing 
     a proceeding under section 303, proof that the debtor is 
     generally not paying its debts as such debts become due.

     ``Sec. 632. Rule of payment in concurrent proceedings

       ``Without prejudice to secured claims or rights in rem, a 
     creditor who has received payment with respect to its claim 
     in a foreign proceeding pursuant to a law relating to 
     insolvency may not receive a payment for the same claim in a 
     case under any other chapter of this title regarding the 
     debtor, so long as the payment to other creditors of the same 
     class is proportionately less than the payment the creditor 
     has already received.''.
       (b) Clerical Amendment.--The table of chapters for title 
     11, United States Code, is amended by inserting after the 
     item relating to chapter 5 the following:

``6. Ancillary and Other Cross-Border Cases..................601''.....

     SEC. 502. AMENDMENTS TO OTHER CHAPTERS IN TITLE 11, UNITED 
                   STATES CODE.

       (a) Applicability of Chapters.--Section 103 of title 11, 
     United States Code, is amended--
       (1) in subsection (a), by inserting before the period the 
     following: ``, and this chapter, sections 307, 304, 555 
     through 557, 559, and 560 apply in a case under chapter 6''; 
     and
       (2) by adding at the end the following:
       ``(j) Chapter 6 applies only in a case under such chapter, 
     except that section 605 applies to trustees and to any other 
     entity, including an examiner, designated by the court under 
     chapter 7, 11, or 12, to debtors in possession under chapter 
     11 or 12, and to debtors under chapters 9 and 13 who are 
     authorized to act under section 605.''.
       (b) Definitions.--Paragraphs (23) and (24) of section 101 
     of title 11, United States Code, are amended to read as 
     follows:
       ``(23) `foreign proceeding' means a collective judicial or 
     administrative proceeding in a foreign state, including an 
     interim proceeding, pursuant to a law relating to insolvency 
     in which proceeding the assets and affairs of the debtor are 
     subject to control or supervision by a foreign court, for the 
     purpose of reorganization or liquidation;
       ``(24) `foreign representative' means a person or body, 
     including a person or body appointed on an interim basis, 
     authorized in a foreign proceeding to administer the 
     reorganization or the liquidation of the debtor's assets or 
     affairs or to act as a representative of the foreign 
     proceeding;''.
       (c) Amendments to Title 28, United States Code.--
       (1) Procedures.--Section 157(b)(2) of title 28, United 
     States Code, is amended--
       (A) in subparagraph (N), by striking ``and'' at the end;
       (B) in subparagraph (O), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(P) recognition of foreign proceedings and other matters 
     under chapter 6 of title 11.''.
       (2) Bankruptcy cases and proceedings.--Section 1334(c)(1) 
     of title 28, United States Code, is amended by striking 
     ``Nothing in'' and inserting ``Except with respect to a case 
     under chapter 6 of title 11, nothing in''.
       (3) Duties of trustees.--Section 586(a)(3) of title 28, 
     United States Code, is amended by inserting ``6,'' after 
     ``chapter''.

                        TITLE VI--MISCELLANEOUS

     SEC. 601. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

       Section 365(d) of title 11, United States Code, is amended 
     by striking paragraph (4) and inserting the following:
       ``(4)(A) Subject to subparagraph (B), in any case under any 
     chapter of this title, an unexpired lease of nonresidential 
     real property under which the debtor is the lessee shall be 
     deemed rejected and the trustee shall immediately surrender 
     that nonresidential real property to the lessor if the 
     trustee does not assume or reject the unexpired lease by the 
     earlier of--
       ``(i) the date that is 120 days after the date of the order 
     for relief; or
       ``(ii) the date of the entry of an order confirming a plan.
       ``(B) The court may extend the period determined under 
     subparagraph (A) only upon a motion of the lessor.''.

     SEC. 602. EXPEDITED APPEALS OF BANKRUPTCY CASES TO COURTS OF 
                   APPEALS.

       (a) In General.--Section 158 of title 28, United States 
     Code, is amended--
       (1) by redesignating subsection (d) as subsection (e);
       (2) by inserting after subsection (c) the following:
       ``(d)(1) Any final judgment, decision, order, or decree of 
     a bankruptcy judge entered for a case in accordance with 
     section 157 may be appealed by any party in such case to the 
     appropriate court of appeals if--
       ``(A) an appeal from such judgment, decision, order, or 
     decree is first filed with the appropriate district court of 
     the United States; and
       ``(B) the decision on the appeal described under 
     subparagraph (A) is not filed by a district court judge 
     within 30 days after the date such appeal is filed with the 
     district court.
       ``(2) On the date that an appeal is filed with a court of 
     appeals under paragraph (1), the chief judge for such court 
     of appeals shall issue an order to the clerk for the district 
     court from which the appeal is filed. Such order shall direct 
     the clerk to enter the final judgment, decision, order, or 
     decree of the bankruptcy judge as the final judgment, 
     decision, order, or decree of the district court.''; and
       (3) in subsection (e), (as redesignated by paragraph (1) of 
     this section) by striking ``subsections (a) and (b)'' and 
     inserting ``subsections (a), (b), and (d)''.
       (b) Technical and Conforming Amendments.--
       (1) Section 305(c) of title 11, United States Code, is 
     amended by striking ``section 158(d)'' and inserting 
     ``section 158(e)''.
       (2) Section 1334(d) of title 28, United States Code, is 
     amended by striking ``section 158(d)'' and inserting 
     ``section 158(e)''.
       (3) Section 1452(b) of title 28, United States Code, is 
     amended by striking ``section 158(d)'' and inserting 
     ``section 158(e)''.

     SEC. 603. CREDITORS AND EQUITY SECURITY HOLDERS COMMITTEES.

       Section 1102(a)(2) of title 11, United States Code, is 
     amended by inserting before the first sentence the following: 
     ``On its own motion or on request of a party in interest, and 
     after notice and hearing, the court may order a change in the 
     membership of a committee appointed under this subsection, if 
     the court determines that the change is necessary to ensure 
     adequate representation of creditors or equity security 
     holders.''.

     SEC. 604. REPEAL OF SUNSET PROVISION.

       Section 302 of the Bankruptcy Judges, United States 
     Trustees, and Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 
     581 note) is amended by striking subsection (f).

     SEC. 605. CASES ANCILLARY TO FOREIGN PROCEEDINGS.

       Section 304 of title 11, United States Code, as amended by 
     section 410 of this Act, is amended by adding at the end the 
     following:
       ``(e)(1) In this subsection--
       ``(A) the term `domestic insurance company' means a 
     domestic insurance company, as that term is used in section 
     109(b)(2);
       ``(B) the term `foreign insurance company' means a foreign 
     insurance company, as that term is used in section 109(b)(3);
       ``(C) the term `United States claimant' means a beneficiary 
     of any deposit referred to in paragraph (2)(A) or any 
     multibeneficiary trust referred to in subparagraph (B) or (C) 
     of paragraph (2);
       ``(D) the term `United States creditor' means, with respect 
     to a foreign insurance company--
       ``(i) a United States claimant; or
       ``(ii) any business entity that operates in the United 
     States and that is a creditor; and
       ``(E) the term `United States policyholder' means a holder 
     of an insurance policy issued in the United States.
       ``(2) Notwithstanding subsections (b) and (c), the court 
     may not grant relief under subsection (b) to a foreign 
     insurance company that is not engaged in the business of 
     insurance or reinsurance in the United States with respect to 
     any claim made by a United States creditor against--
       ``(A) a deposit required by an applicable State insurance 
     law;
       ``(B) a multibeneficiary trust required by an applicable 
     State insurance law to protect United States policyholders or 
     claimants against a foreign insurance company; or
       ``(C) a multibeneficiary trust authorized under an 
     applicable State insurance law to allow a domestic insurance 
     company that cedes reinsurance to the debtor to reflect the 
     reinsurance as an asset or deduction from liability in the 
     ceding insurer's financial statements.''.

     SEC. 606. LIMITATION.

       Section 546(c)(1)(B) of title 11, United States Code, is 
     amended by striking ``20'' and inserting ``45''.

     SEC. 607. AMENDMENT TO SECTION 546 OF TITLE 11, UNITED STATES 
                   CODE.

       Section 546 of title 11, United States Code, as amended by 
     section 401 of this Act, is amended by adding at the end the 
     following:
       ``(i) Notwithstanding paragraphs (2) and (3) of section 
     545, 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 an

[[Page S4602]]

     applicable State law that is similar to section 7-209 of the 
     Uniform Commercial Code.''.

     SEC. 608. AMENDMENT TO SECTION 330(A) OF TITLE 11, UNITED 
                   STATES CODE.

       Section 330(a)(3)(A) of title 11, United States Code, is 
     amended--
       (1) by inserting ``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.'' after ``(3)(A)''; and
       (2) by inserting ``to an examiner, chapter 11 trustee, or 
     professional person'' after ``awarded''.

                    TITLE VII--TECHNICAL CORRECTIONS

     SEC. 701. ADJUSTMENT OF DOLLAR AMOUNTS.

       Section 104 of title 11, United States Code, is amended by 
     inserting ``522(f)(3), 707(b)(5),'' after ``522(d),'' each 
     place it appears.

     SEC. 702. EXTENSION OF TIME.

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

     SEC. 703. WHO MAY BE A DEBTOR.

       Section 109(b)(2) of title 11, United States Code, is 
     amended by striking ``subsection (c) or (d) of''.

     SEC. 704. PENALTY FOR PERSONS WHO NEGLIGENTLY OR FRAUDULENTLY 
                   PREPARE BANKRUPTCY PETITIONS.

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

     SEC. 705. LIMITATION ON COMPENSATION OF PROFESSIONAL PERSONS.

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

     SEC. 706. SPECIAL TAX PROVISIONS.

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

     SEC. 707. EFFECT OF CONVERSION.

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

     SEC. 708. AUTOMATIC STAY.

       Section 362(b) of title 11, United States Code, as amended 
     by section 401 of this Act, is amended--
       (1) in paragraph (20), by striking ``or'' at the end;
       (2) in paragraph (21), by striking the period at the end 
     and inserting a semicolon; and
       (3) by inserting after paragraph (21) the following:
       ``(22) under subsection (a) of this section of any transfer 
     that is not avoidable under section 544 and that is not 
     avoidable under section 549;
       ``(23) 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 under the terms of the lease agreement or 
     applicable State law after the commencement and during the 
     course of the case;
       ``(24) 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;
       ``(25) under subsection (a)(3), of any eviction, unlawful 
     detainer action, or similar proceeding, if the debtor has 
     previously filed within the preceding year and failed to pay 
     post-petition rent during the course of that case; or
       ``(26) under subsection (a)(3), of eviction actions based 
     on endangerment to property or person or the use of illegal 
     drugs.''.

     SEC. 709. ALLOWANCE OF ADMINISTRATIVE EXPENSES.

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

     SEC. 710. PRIORITIES.

       Section 507(a) of title 11, United States Code, as amended 
     by section 323 of this Act, is amended--
       (1) in paragraph (3)(B), by striking the semicolon at the 
     end and inserting a period; and
       (2) in paragraph (7), by inserting ``unsecured'' after 
     ``allowed''.

     SEC. 711. EXEMPTIONS.

       Section 522 of title 11, United States Code, as amended by 
     section 320 of this Act, is amended--
       (1) in subsection (f)(1)(A)(ii)(II)--
       (A) by striking ``includes a liability designated as'' and 
     inserting ``is for a liability that is designated as, and is 
     actually in the nature of,''; and
       (B) by striking ``, unless'' and all that follows through 
     ``support''; and
       (2) in subsection (g)(2), by striking ``subsection (f)(2)'' 
     and inserting ``subsection (f)(1)(B)''.

     SEC. 712. EXCEPTIONS TO DISCHARGE.

       Section 523 of title 11, United States Code, as amended by 
     section 315 of this Act, is amended--
       (1) in subsection (a)(3), by striking ``or (6)'' each place 
     it appears and inserting ``(6), or (15)'';
       (2) as amended by section 304(e) of Public Law 103-394 (108 
     Stat. 4133), in paragraph (15), by transferring such 
     paragraph so as to insert it after paragraph (14A) of 
     subsection (a);
       (3) in subsection (a)(9), by inserting ``, watercraft, or 
     aircraft'' after ``motor vehicle'';
       (4) in subsection (a)(15), as so redesignated by paragraph 
     (2) of this subsection, by inserting ``to a spouse, former 
     spouse, or child of the debtor and'' after ``(15)'';
       (5) in subsection (a)(17)--
       (A) by striking ``by a court'' and inserting ``on a 
     prisoner by any court'';
       (B) by striking ``section 1915 (b) or (f)'' and inserting 
     ``subsection (b) or (f)(2) of section 1915''; and
       (C) by inserting ``(or a similar non-Federal law)'' after 
     ``title 28'' each place it appears; and
       (6) in subsection (e), by striking ``a insured'' and 
     inserting ``an insured''.

     SEC. 713. EFFECT OF DISCHARGE.

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

     SEC. 714. PROTECTION AGAINST DISCRIMINATORY TREATMENT.

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

     SEC. 715. PROPERTY OF THE ESTATE.

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

     SEC. 716. PREFERENCES.

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

     SEC. 717. POSTPETITION TRANSACTIONS.

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

     SEC. 718. TECHNICAL AMENDMENT.

       Section 552(b)(1) of title 11, United States Code, is 
     amended by striking ``product'' each place it appears and 
     inserting ``products''.

     SEC. 719. DISPOSITION OF PROPERTY OF THE ESTATE.

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

     SEC. 720. GENERAL PROVISIONS.

       Section 901(a) of title 11, United States Code, as amended 
     by section 401 of this Act, is amended by inserting 
     ``1123(d),'' after ``1123(b),''.

     SEC. 721. APPOINTMENT OF ELECTED TRUSTEE.

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

     SEC. 722. ABANDONMENT OF RAILROAD LINE.

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

     SEC. 723. CONTENTS OF PLAN.

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

     SEC. 724. DISCHARGE UNDER CHAPTER 12.

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

     SEC. 725. EXTENSIONS.

       Section 302(d)(3) of the Bankruptcy, Judges, United States 
     Trustees, and Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 
     581 note) is amended--
       (1) in subparagraph (A), in the matter following clause 
     (ii), by striking ``or October 1, 2002, whichever occurs 
     first''; and
       (2) in subparagraph (F)--
       (A) in clause (i)--
       (i) in subclause (II), by striking ``or October 1, 2002, 
     whichever occurs first''; and
       (ii) in the matter following subclause (II), by striking 
     ``October 1, 2003, or''; and
       (B) in clause (ii), in the matter following subclause 
     (II)--
       (i) by striking ``before October 1, 2003, or''; and
       (ii) by striking ``, whichever occurs first''.

     SEC. 726. BANKRUPTCY CASES AND PROCEEDINGS.

       Section 1334(d) of title 28, United States Code, is 
     amended--

[[Page S4603]]

       (1) by striking ``made under this subsection'' and 
     inserting ``made under subsection (c)''; and
       (2) by striking ``This subsection'' and inserting 
     ``Subsection (c) and this subsection''.

     SEC. 727. KNOWING DISREGARD OF BANKRUPTCY LAW OR RULE.

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

     SEC. 728. 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 the 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 that--
       ``(i) 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) 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) 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, 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 
     under 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 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 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 that occurs--
       ``(i) before the date of the order is cured before the 
     expiration of such 60-day period;
       ``(ii) 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) 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 under 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 
     under 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 be treated 
     as a lease for Federal income tax purposes; and
       ``(2) the term `security interest' means a purchase-money 
     equipment security interest.''.

     SEC. 729. 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

[[Page S4604]]

     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 708 of this Act, is 
     amended--
       (1) in paragraph (25), by striking ``or'' at the end;
       (2) in paragraph (26), by striking the period at the end 
     and inserting a semicolon; and
       (3) by inserting after paragraph (26) the following:
       ``(27) 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, except 
     that, the debtor in a subsequent case of the debtor, 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
       ``(28) 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.''.

     SEC. 730. 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 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.

     SEC. 731. 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, as amended by section 403 of this Act, 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 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.

     SEC. 732. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

       (a) Effective Date.--Except as provided in subsection (b), 
     this title and the amendments made by this title shall take 
     effect on the date of enactment of this Act.
       (b) Application of Amendments.--The amendments made by this 
     title shall apply only with respect to cases commenced under 
     title 11, United States Code, on or after the date of 
     enactment of this Act.
                                 ______