[House Report 105-324]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-324
_______________________________________________________________________


 
                     BANKRUPTCY AMENDMENTS OF 1997

_______________________________________________________________________


October 21, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Gekas, from the Committee on the Judiciary, submitted the following

                              R E P O R T

                        [To accompany H.R. 764]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 764) to make technical corrections to title 11, 
United States Code, and for other purposes, having considered 
the same, reports favorably thereon with an amendment and 
recommends that the bill as amended do pass.

                           TABLE OF CONTENTS

                                                                  

                                                                   Page
The Amendment..............................................           2
Explanation of Amendment...................................           5
Purpose and Summary........................................           5
Background and Need for Legislation........................           6
Hearings...................................................           7
Committee Consideration....................................           8
Vote of the Committee......................................           8
Committee Oversight Findings...............................           8
Committee on Government Reform and Oversight Findings......           8
New Budget Authority and Tax Expenditures..................           8
Congressional Budget Office Estimate.......................           8
Constitutional Authority Statement.........................           9
Section-by-Section Analysis and Discussion.................           9
Agency Views...............................................          18
Changes in Existing Law Made by the Bill, as Reported......          18

    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

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

SEC. 2. DEFINITIONS.

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

SEC. 3. ADJUSTMENT OF DOLLAR AMOUNTS.

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

SEC. 4. EXTENSION OF TIME.

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

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

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

SEC. 6. LIMITATION ON COMPENSATION OF PROFESSIONAL PERSONS.

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

SEC. 7. COMPENSATION TO OFFICERS.

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

SEC. 8. SPECIAL TAX PROVISIONS.

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

SEC. 9. EFFECT OF CONVERSION.

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

SEC. 10. AUTOMATIC STAY.

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

SEC. 11. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

    Section 365 of title 11, United States Code, is amended--
            (1) in subsection (b)(2)--
                    (A) in subparagraph (C) by striking ``or'' at the 
                end, and
                    (B) by striking subparagraph (D) and inserting the 
                following:
                    ``(D) the satisfaction of any penalty rate or 
                penalty provision relating to a default arising from a 
                failure to perform nonmonetary obligations under an 
                executory contract or under an unexpired lease of real 
                or personal property;
                    ``(E) the satisfaction of any provision (other than 
                a penalty rate or penalty provision) relating to a 
                default arising from any failure to perform nonmonetary 
                obligations under an unexpired lease of real property, 
                if it is impossible for the trustee to cure such 
                default by performing nonmonetary acts at and after the 
                time of assumption; or
                    ``(F) the satisfaction of any provision (other than 
                a penalty rate or penalty provision) relating to a 
                default arising from any failure to perform nonmonetary 
                obligations under an executory contract, if it is 
                impossible for the trustee to cure such default by 
                performing nonmonetary acts at and after the time of 
                assumption and if the court determines, based on the 
                equities of the case, that paragraph (1) should not 
                apply with respect to such default.'',
            (2) in subsection (c)--
                    (A) in paragraph (2) by adding ``or'' at the end,
                    (B) in paragraph (3) by striking ``; or'' at the 
                end and inserting a period, and
                    (C) by striking paragraph (4),
            (3) in subsection (d)--
                    (A) by striking paragraphs (5) through (9), and
                    (B) by redesignating paragraph (10) as paragraph 
                (5).
            (4) in subsection (f)(1) by striking ``; except that'' and 
        all that follows through the end of the paragraph and inserting 
        a period.

SEC. 12. AMENDMENT TO TABLE OF SECTIONS.

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

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

SEC. 13. ALLOWANCE OF ADMINISTRATIVE EXPENSES.

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

SEC. 14. PRIORITIES.

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

SEC. 15. EXEMPTIONS.

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

SEC. 16. EXCEPTIONS TO DISCHARGE.

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

SEC. 17. EFFECT OF DISCHARGE.

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

SEC. 18. PROTECTION AGAINST DISCRIMINATORY TREATMENT.

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

SEC. 19. PROPERTY OF THE ESTATE.

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

SEC. 20. LIMITATIONS ON AVOIDING POWERS.

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

SEC. 21. PREFERENCES.

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

SEC. 22. POSTPETITION TRANSACTIONS.

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

SEC. 23. SETOFF.

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

SEC. 24. DISPOSITION OF PROPERTY OF THE ESTATE.

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

SEC. 25. GENERAL PROVISIONS.

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

SEC. 26. APPOINTMENT OF ELECTED TRUSTEE.

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

SEC. 27. ABANDONMENT OF RAILROAD LINE.

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

SEC. 28. CONTENTS OF PLAN.

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

SEC. 29. DISCHARGE.

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

SEC. 30. CONTENTS OF PLAN.

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

SEC. 31. DISCHARGE.

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

SEC. 32. BANKRUPTCY CASES AND PROCEEDINGS.

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

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

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

SEC. 34. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

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

                        Explanation of Amendment

    Inasmuch as H.R. 764 was ordered reported with a single 
amendment in the nature of a substitute, the contents of this 
report constitute an explanation of the bill as so amended.

                          Purpose and Summary

    H.R. 764 primarily consists of technical corrections 
intended to clarify original intent, correct drafting defects, 
and improve grammar and cross-references in title 11 of the 
United States Code, generally referred to as the Bankruptcy 
Code.\1\ There are some more substantive provisions, limited in 
scope, designed to rectify shortcomings in current law. These 
include language designed to increase the $4 million debt 
limitation on single asset real estate to $15 million in order 
to enable creditors to obtain expedited relief in more 
commercial property reorganizations; to provide protection for 
a purchase money lender, who has recorded a deed of trust 
without knowledge of a bankruptcy filing, from the trustee's 
power to avoid certain postpetition property transfers; to 
accord recognition to different policy considerations that are 
implicated--when there are incurable nonmonetary defaults--in 
the trustee's power to assume executory contracts and unexpired 
leases of the debtor; and to provide, as is now the case with 
motor vehicles, that any debt for death or personal injury 
arising from a debtor's unlawful operation of watercraft or 
aircraft while intoxicated is nondischargeable in bankruptcy.
---------------------------------------------------------------------------
    \1\ 11 U.S.C. 101 et seq.
---------------------------------------------------------------------------

                Background and Need for the Legislation

    Any statute as complex as the Bankruptcy Code requires 
periodic technical corrections, and such corrections make up 
the majority of the provisions in the Bankruptcy Amendments of 
1997. The need for most of them has arisen since the enactment 
of the Bankruptcy Reform Act of 1994 \2\ and relate thereto.
---------------------------------------------------------------------------
    \2\ Pub. L. No. 103-394, 108 Stat. 4106 (1994).
---------------------------------------------------------------------------
    H.R. 764 was introduced on February 13, 1997, by Mr. Hyde, 
the Chairman of the Judiciary Committee, with Mr. Gekas and Mr. 
McCollum as original co-sponsors. Previously, Mr. Conyers, the 
Ranking Minority Member, had introduced H.R. 120, the 
Bankruptcy Law Technical Corrections Act of 1997, which is 
similar in many respects to the Chairman's bill. Both bills 
have their origins in legislation which passed the Senate in 
the last Congress, S. 1559, and in recommendations made by the 
National Bankruptcy Conference, a select, nonpartisan 
organization of bankruptcy experts.
    At the Subcommittee hearing, testimony was received from 
Rep. Joe Knollenberg in support of eliminating the $4 million 
ceiling in single asset real estate bankruptcies and from Rep. 
Vernon J. Ehlers in support of making nondischargeable in 
bankruptcy a debt incurred through the unlawful operation of a 
watercraft or aircraft while intoxicated. These members had 
previously introduced legislation on these issues, which was 
incorporated into H.R. 764. Rep. Knollenberg observed that 
``Investors are rendered helpless in foreclosures on single 
assets valued at over $4 million.'' \3\ In stating the need for 
his provision, Rep. Ehlers noted that ``While this issue may 
not garner a great deal of public attention, those who have 
been negatively impacted by the lack of clarity in this section 
of the Bankruptcy Code have suffered significantly and we ought 
to protect future victims of drunk boating and drunk flying, by 
making the simple fix called for in this bill.'' \4\
---------------------------------------------------------------------------
    \3\ Bankruptcy Amendments of 1997; and Bankruptcy Law Technical 
Corrections Act of 1997: Hearing on H.R. 764 and H.R. 120 Before the 
Subcomm. on Commercial and Administrative Law of the House Comm. on the 
Judiciary, 105th Cong., 1st Sess. 27 (1997).
    \4\ Id. at 32.
---------------------------------------------------------------------------
    Testifying on a panel of expert witnesses representing 
organizations qualified to provide a disinterested analysis of 
bankruptcy legislation, Kenneth N. Klee, appearing on behalf of 
the National Bankruptcy Conference, stated: ``Certainly the 
technical provisions of these bills ought to be enacted to cure 
defects in the Bankruptcy Reform Act of 1994.'' \5\ Roger M. 
Whelan, on behalf of the American Bankruptcy Institute, 
commended the legislative efforts of the committee to address a 
number of critical issues. He stated that ``Many of these, such 
as the right of debtor's counsel in a chapter 7 case to receive 
compensation, the amendments which would further clarify the 
overruling of DePrizio--with respect to the creation of liens, 
and provisions such as those dealing with the appointment of a 
trustee, will certainly go a long way to providing the 
necessary clarification that we need for our Nation's 
bankruptcy laws.'' \6\ On the same panel, on behalf of the 
Commercial Law League of America, Frederick M. Luper testified 
as follows with reference to the ceiling in single asset real 
estate cases: ``My experience with single asset cases, like 
Judge Whelan, is that the debtor and the lender have to make 
peace or there will never be a confirmed bankruptcy. And the 
stall, stall and delay, if you are the lender, or the cooling-
off period if you are the debtor, doesn't really accomplish 
very much, in my opinion. So I think the $4 million should 
go.'' \7\ The National Bankruptcy Conference, however, opposed 
eliminating the cap.\8\
---------------------------------------------------------------------------
    \5\ Id. at 34.
    \6\ Id. at 48.
    \7\ Id. at 88.
    \8\ Id. at 35.
---------------------------------------------------------------------------
    On a panel composed of interested parties, Albert B. 
Sullivan, the Director of the Office of Asset Management and 
Disposition at the U.S. Department of Housing and Urban 
Development, stated that ``While HUD endorses the removing of 
the cap in the definition of single asset real estate, it is 
important to note that this is a small step in addressing the 
more fundamental problem. Most if not all bankruptcies 
involving HUD or FHA programs are filed when HUD attempts to 
assert its regulatory and contractual rights to foreclose or 
gain compliance with an owner's obligation to provide decent, 
safe and sanitary housing.'' \9\
---------------------------------------------------------------------------
    \9\ Id. at 99.
---------------------------------------------------------------------------
    Testifying on behalf of the American Bankers Association on 
the same panel, Jill M. Sturtevant told the subcommittee that 
``ABA generally supports the enactment of those provisions of 
H.R. 764 and H.R. 120 which make necessary and desirable 
technical corrections to and worthwhile clarifications of 
provisions of the Bankruptcy Reform Act of 1994. We are 
particularly gratified that these bills clarify that lenders 
involved in the making of student loans have discretion to deny 
applications for other types of loans on an applicant's prior 
bankruptcy.'' \10\
---------------------------------------------------------------------------
    \10\ Id. at 118.
---------------------------------------------------------------------------

                                Hearings

    The Subcommittee on Commercial and Administrative Law of 
the Judiciary Committee held a hearing on H.R. 764 and H.R.120 
on April 30, 1997. Testimony was received from the following 
ten witnesses: Rep. Vernon J. Ehlers; Rep. Joe Knollenberg; 
Kenneth N. Klee, representing the National Bankruptcy 
Conference; Roger M. Whelan, representing the American 
Bankruptcy Institute; Frederick M. Luper, representing the 
Commercial Law League of America; Albert B. Sullivan, Director, 
Office of Asset Management and Disposition, U.S. Department of 
Housing and Urban Development; Donald R. Ennis, representing 
the American Council of Life Insurance and the Mortgage Bankers 
Association; Joseph C. Bonita, representing the American Land 
Title Association; Richard R. Gerken, representing the 
Equipment Leasing Association; and Jill M. Sturtevant, 
representing the American Bankers Association. Additional 
material was submitted by six individuals and organizations.

                        Committee Consideration

    On June 25, 1997, the Subcommittee on Commercial and 
Administrative Law met in open session and by voice vote 
adopted an amendment in the nature of a substitute, which 
reconciled many of the differences between H.R. 764 and H.R. 
120. The bill as so amended was then reported favorably to the 
full committee by voice vote, a quorum being present. On July 
16, 1997, the Committee met in open session and ordered 
reported favorably the bill H.R. 764, as amended by the 
subcommittee amendment in the nature of a substitute, by a 
voice vote, a quorum being present.

                         Vote of the Committee

    There were no recorded votes.

                      Committee Oversight Findings

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives, the Committee reports 
that the findings and recommendations of the Committee, based 
on oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

         Committee on Government Reform and Oversight Findings

    No findings or recommendations of the Committee on 
Government Reform and Oversight were received as referred to in 
clause 2(l)(3)(D) of rule XI of the Rules of the House of 
Representatives.

               New Budget Authority and Tax Expenditures

    Clause 2(l)(3)(B) of Rule XI of the Rules of the House of 
Representatives is inapplicable because this legislation does 
not provide new budget authority, new spending authority, new 
credit authority, or an increase or decrease in revenues or tax 
expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 2(l)(3)(C) of Rule XI of the 
Rules of the House of Representatives, the Committee sets 
forth, with respect to H.R. 764, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 403 of the Congressional Budget Act of 
1974:
                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, October 8, 1997.
Hon. Henry J. Hyde,
Chairman, Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed revised cost estimate for H.R. 764, the 
Bankruptcy Amendments of 1997. This estimate supersedes the one 
provided on July 30, 1997, and changes the intergovernmental 
and private-sector mandate statements for the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Mark 
Grabowicz (for federal costs), who can be reached at 226-2860, 
Leo Lex (for the state and local impact), who can be reached at 
225-3320, and Matthew Eyles (for the private-sector impact), 
who can be reached at 226-2649.
            Sincerely,

                                           June E. O'Neill, Director.  
    Enclosure.

H.R. 764--Bankruptcy Amendments of 1997

    CBO estimates that enacting this legislation would have no 
significant impact on the federal budget. H.R. 764 would make 
mostly technical amendments to bankruptcy law. Enacting the 
bill could affect direct spending and receipts, primarily by 
changing the amount of bankruptcy filing fees paid to the 
government. Therefore, pay-as-you-go procedures would apply to 
this bill, but CBO estimates that any impact on direct spending 
and receipts would not be significant.
    H.R. 764 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act of 1995 
(UMRA) and would impose no costs on state, local, or tribal 
governments. One provision of the bill would allow expedited 
bankruptcy proceedings in certain cases involving a single 
asset (for example, a large office building). State and local 
governments could benefit to the extent that real property is 
returned to productive tax rolls earlier as a result of this 
provision.
    The CBO staff contacts for this estimate are Mark Grabowicz 
(for federal costs), who can be reached at 226-2860, Leo Lex 
(for the state and local impact), who can be reached at 225-
3320, and Matthew Eyles (for the private-sector impact), who 
can be reached at 226-2649. This estimate was approved by 
Robert A. Sunshine, Deputy Assistant Director for Budget 
Analysis.

                   Constitutional Authority Statement

    Pursuant to clause 2(l)(4) of Rule XI of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in Article I, section 8 of the Constitution.

                      Section-by-Section Analysis

Section 1. Short Title

    Section 1 provides that this Act may be cited as the 
``Bankruptcy Amendments of 1997.''

Section 2. Definitions

    Section 2 amends the definitions contained in section 101 
of title 11 of the United States Code. Paragraphs (1), (2), 
(4), (7), and (8) of section 2 make technical changes to 
section 101 to convert each definition into a sentence (thereby 
facilitating future amendments to the separate paragraphs) and 
to redesignate the definitions in correct and completely 
numerical sequence. Paragraph (3) of section 2 makes the 
necessary conforming amendment to cross references to the newly 
redesignated definitions and simplifies these references to 
avoid future reference errors. Paragraph (5)(A) of section 2 
excludes family farms from the definition of single asset real 
estate.
    Paragraph (5)(B) of section 2 amends section 101(51B) 
(renumbered section 101(57)) of the Bankruptcy Code to raise 
the $4 million debt limitation on single asset real estate to 
$15 million, thereby enabling creditors in more cases to obtain 
the expedited relief from the automatic stay which is made 
available under section 362(d)(3) of the Bankruptcy Code.
    In general terms, single asset real estate is a single 
piece of real estate which generates substantially all of the 
gross income of the debtor, on which no other substantial 
business is being conducted, and which as presently defined is 
encumbered by no more than $4 million in outstanding debt. 
Section 362(d)(3) of the Bankruptcy Code effectively provides a 
secured creditor with relief from the automatic stay's bar to 
foreclosure on such property unless, within 90 days of the 
order for relief, the debtor has filed a plan of reorganization 
which stands a reasonable possibility of being confirmed, or 
unless the debtor has commenced making monthly payments to each 
secured creditor in an amount equal to interest at the current 
fair market rate on the value of the creditor's interest in the 
real estate.
    The present $4 million cap prevents the use of the 
expedited relief procedure in many commercial property 
reorganizations, and effectively provides an opportunity for a 
number of debtors to abusively file for bankruptcy in order to 
obtain the protection of the automatic stay against their 
creditors. The bill raises the ceiling to $15 million at this 
time, thereby deferring the issue of eliminating the ceiling 
altogether, as proposed in H.R. 764 as introduced, to a later 
date.
    Paragraph (6) of section 2 and sections 10 and 22 respond 
to a recent Ninth Circuit case, In re McConville,\11\ in which 
two purchase money lenders, without knowledge that the debtor 
had recently filed an undisclosed chapter 11 petition in 
bankruptcy (later converted to chapter 7), funded the debtor's 
acquisition of an apartment complex and recorded their 
purchase-money deed of trust immediately following recordation 
of the deed to the debtors. The bankruptcy estate trustee filed 
a complaint to avoid the lien created by the lenders' deed of 
trust, asserting that the deed was an unauthorized, post-
petition transfer under section 549(a) of the Bankruptcy Code. 
The lenders asserted that the voluntary transfer to them was a 
transfer of real property to good faith purchasers for value, 
thereby excluding it, under section 549(c) of the Bankruptcy 
Code, from the trustee's avoidance powers. A ``purchaser'' is 
defined in section 101(43) of the Bankruptcy Code as meaning a 
transferee of a voluntary transfer. The Bankruptcy Court held 
that the post-petition recordation of the lenders' deed of 
trust was without authorization under the Bankruptcy Code or by 
the court and was therefore avoidable under section 549(a), and 
that the lenders did not qualify under the section 549(c) 
exception as good faith purchasers of real property for value. 
The District Court subsequently affirmed the bankruptcy court's 
ruling granting the trustee the authority to avoid the lenders' 
lien.\12\
---------------------------------------------------------------------------
    \11\ 110 F.3d 47 (9th Cir. 1997).
    \12\ In re McConville, D.C. No. CV-94-03308-FMS (N.D. Cal. 1994).
---------------------------------------------------------------------------
    In re McConville was appealed to the Ninth Circuit, which 
affirmed the lower court ruling, subsequently issued an amended 
opinion also affirming the lower court, and finally issued an 
opinion withdrawing its previous opinion and deciding the case 
on other grounds, specifically that by obtaining secured credit 
from the lenders, after filing but before the appointment of a 
trustee, the debtors violated their fiduciary responsibility to 
their creditors.
    Paragraph (6) of section 2 amends Bankruptcy Code section 
101(54) (renumbered section 101(66)) to define ``transfer'' as 
including the ``creation of a lien,'' thus protecting the 
lender, in the McConville circumstances, from the trustee's 
power to avoid the transfer. This gives expression to a widely 
held understanding since the enactment of the Bankruptcy Reform 
Act of 1978 \13\--namely, that transfer includes creation of a 
lien.
---------------------------------------------------------------------------
    \13\ Pub. L. No. 95-598, 92 Stat. 2549 (1978).

---------------------------------------------------------------------------
Section 3. Adjustment of Dollar Amounts

    Section 3 of the bill corrects an omission in section 
104(b) of title 11 of the United States Code, as added by 
Public Law 103-394, by adding references to section 522(f)(3) 
so that the triennial adjustment required by section 104(b) 
extends to the figure representing an aggregate value of 
certain implements, professional books, tools of the trade, 
farm animals, and crops which the debtor may exempt from the 
property of the estate and so protect from creditors' liens. 
Section 522(f)(3) now sets the total permissible value of such 
property at $5,000.

Section 4. Extension of Time

    Section 4 of the bill makes a technical amendment to 
correct a reference error described in amendment notes 
contained in the United States Code. As specified in the 
amendment note relating to subsection (c)(2) of section 108 of 
title 11 of the United States Code, the amendment made by 
section 257(b)(2)(B) of Public Law 99-554 could not be executed 
as stated.

Section 5. Penalty for Persons Who Negligently or Fraudulently 
        Prepare Bankruptcy Petitions

    Section 5 of the bill makes a technical correction to 
change from the singular possessive to the plural possessive 
the reference to the fees payable to attorneys.

Section 6. Limitation on Compensation of Professional Persons

    Section 328(a) of the Bankruptcy Code provides that a 
trustee or a creditors' and equity security holders' committee 
may, with court approval, employ a professional person on any 
reasonable terms and conditions of employment, including on a 
retainer, on an hourly basis, or on a contingent fee basis. 
Section 6 amends section 328(a) to include compensation ``on a 
fixed or percentage fee basis'' in addition to the other 
specified forms of reimbursement.

Section 7. Compensation to Officers

    Section 7(1) of the bill amends section 330(a) of title 11 
of the United States Code to enable the debtor's counsel to be 
compensated out of the debtor's estate in chapter 7 cases. This 
had been the traditional practice before the authority was 
inadvertently omitted in the Bankruptcy Reform Act of 1994.\14\ 
Since then, several cases have held that the 1994 amendment 
precludes payment from the estate to a chapter 7 debtor's 
attorney.\15\ The amendment made by section 7(2) makes a 
technical correction to remove an erroneous designation 
contained in section 330(a)(3) of title 11.
---------------------------------------------------------------------------
    \14\ Pub. L. No. 103-394, 108 Stat. 4106 (1994).
    \15\ See In re Friedland, 182 B.R. 576 (Bankr. D. Colo. 1995); In 
re Kinnemore, 181 B.R. 520 (Bankr. D. Idaho 1995).

---------------------------------------------------------------------------
Section 8. Special Tax Provisions

    Section 8 of the bill makes a technical correction in 
section 346(g)(1)(C) of title 11 of the United States Code to 
remove language referring to a repealed section of the Internal 
Revenue Code of 1986. Additional information regarding the 
repealed section is indicated in the appropriate footnote, and 
contained in the notes under the heading ``References in 
Text,'' found in the United States Code.

Section 9. Effect of Conversion

    Section 9 of the bill makes a technical correction in 
section 348(f)(2) of title 11 of the United States Code to 
clarify that the first reference to property, like the 
subsequent reference to property, is a reference to property of 
the estate.

Section 10. Automatic Stay

    Section 10, to be read in conjunction with paragraph (6) of 
section 2, amends section 362(b) of the Code to provide that 
the filing of a petition does not operate as a stay if, under 
section 544, it is beyond the trustee's ``strong arm'' power to 
avoid, and if, under section 549, it is excluded from the 
trustee's avoiding power. This amendment does not authorize a 
lender to conduct a foreclosure sale in violation of the 
automatic stay.

Section 11. Executory Contracts and Unexpired Leases

    This section replaced subparagraph (D) of subsection 
365(b)(2) of the Bankruptcy Code with new subparagraphs (D), 
(E), and (F) in response to the Claremont case,\16\ which dealt 
with whether the debtors, operators of several automobile 
dealerships, had to cure certain nonmonetary defaults, which 
were in fact incurable, as a condition to their assumption and 
assignment of their GM dealer agreements to third parties, 
which would generate value for the estate.
---------------------------------------------------------------------------
    \16\ Worthington v. General Motors Corp. (In re Claremont 
Acquisition Corp., Inc.), 113 F.3d 1029 (9th Cir. 1997).
---------------------------------------------------------------------------
    Section 365(b)(2) provides that ``Paragraph (1) of this 
subsection [imposing the requirement of curing defaults prior 
to assumption and assignment] does not apply to a default that 
is a breach of a provision relating to . . . (D) the 
satisfaction of any penalty rate or provision relating to a 
default arising from any failure by the debtor to perform 
nonmonetary obligations under the executory contract or 
unexpired lease.''
    The district court in Claremont, supporting the 
interpretation given by the bankruptcy court, held that section 
365(b)(2)(D) means that ``a trustee or debtor in possession is 
not required to cure nonmonetary defaults in order to assume 
and assign executory contracts and leases.'' \17\
---------------------------------------------------------------------------
    \17\ In re Claremont Acquisition Corp., Inc., 186 B.R. 977, 989-90 
(C.D. Cal. 1995).
---------------------------------------------------------------------------
    Although the issue arose in the context of the treatment in 
bankruptcy of an automobile franchise agreement, a broad 
exemption from curing nonmonetary defaults would be 
particularly troublesome to equipment lessors. The failure to 
adhere to a specified maintenance schedule, for instance, could 
cause rapid deterioration or irreparable harm to the leased 
equipment. In such personal property leases, the failure to 
perform nonmonetary obligations is an appropriate bar to a 
bankruptcy trustee's assumption of the lease.
    The court of appeals in Claremont concluded that 
``subsection (D) provides an exception from cure for 
satisfaction of `penalty rates' and `penalty provisions,' '' 
refuting the argument that the clause following ``or'' in (D) 
is a catch-all provision excepting from cure any ``nonmonetary 
obligations.'' Under this construction, therefore, nonmonetary 
defaults (with very limited exceptions) would have to be cured. 
Such a rule, although reasonable as a matter of public policy 
for a lease of equipment that can lose value quickly, might 
lead to inappropriate results in other potential applications. 
For that reason, the Committee sought to give legislative 
expression to principled approaches that would fairly treat the 
parties to a range of leases and executory contracts and 
protect the interests of creditors collectively.
    Section 11 accords recognition to different policy 
considerations that are implicated in leasing arrangements and 
executory contracts. For reasons noted above, failure to 
perform nonmonetary obligations under a personal property lease 
bars assumption. With real estate leases, a bankruptcy trustee 
reasonably should be expected to cure defaults that are 
curable, but is not to be required to do the impossible and 
cure incurable defaults before assumption. The debtor's estate 
in the real estate context, for example, should not be deprived 
of a retail lease that is a valuable asset and may be needed 
for reorganization merely because the store has conducted a 
going-out-of-business sale or violated a clause against closing 
for a period of time. With contracts requiring substantial 
future performance on both sides--so-called executory 
contracts--the courts shall determine, based on the equities, 
whether incurable defaults prevent assumption; this would be 
the fairest approach, for example, with franchise agreements.
    In the case of an automobile franchise agreement, for 
instance, the trustee for the estate of the dealer must cure 
curable defaults and will be able to assume or assign the 
franchise only when defaults are impossible to cure and a 
bankruptcy judge--based on the equities--determines that the 
bar to assumption and assignment should not apply. It is 
expected that the court would be mindful of the ability of the 
trustee or debtor in possession to meet the manufacturer's 
contractual requirements with regard to quality assurance, 
warranty service, and trademark protection.
    It is not the intention of the Committee to restrict the 
ability of the nondebtor party to a lease or executory contract 
to obtain compensation for any actual pecuniary loss resulting 
from the debtor's incurable nonmonetary default or to obtain 
adequate assurance of future performance under such contract or 
lease.

Section 12. Amendment to Table of Sections

    Section 12 of the bill makes a technical amendment to 
conform the wording of an item in the table of sections to the 
wording of the section heading represented by that item.

Section 13. Allowance of Administrative Expenses

    Section 13 amends section 503(b)(4) of the Bankruptcy Code 
to limit the types of compensable professional services 
rendered by an attorney or accountant that can qualify as 
administrative expenses in a bankruptcy case. Expenses for 
attorneys or accountants incurred by individual members of 
creditors' and equity security holders' committees would not be 
recoverable, but expenses incurred for such professional 
services by the committees themselves would be.

Section 14. Priorities

    Section 14 of the bill makes technical amendments to 
section 507(a) of title 11 of the United States Code. The 
amendment made by section 14(1) corrects an error in the 
punctuation at the end of section 507(a)(3). The amendment made 
by section 14(2) corrects an omission in paragraph (7) of 
section 507(a) and conforms paragraph (7) to the other 
paragraphs of section 507(a) that provide priority only to 
unsecured claims.

Section 15. Exemptions

    This section would make grammatical and clarifying 
amendments to section 522(f)(1)(A) and a conforming amendment 
to section 522(g)(2) of the Bankruptcy Code.

Section 16. Exceptions to Discharge

    Section 16 of the bill amends section 523 of the Bankruptcy 
Code, relating to the discharge of debts, to correct the 
inadvertent omission of a cross-reference to paragraph (15) in 
paragraph (3)(A), to correct a technical error in the placement 
of paragraph (15), which was added to section 523 by section 
304(e)(1) of the Bankruptcy Reform Act of 1994, and to require 
that the debt must be owed to a spouse, former spouse, or child 
of the debtor. See the amendment notes contained in the United 
States Code. The effect of this amendment is to fulfill 
Congress's original intention to exclude from discharge certain 
family obligations if the debtor has the ability to pay them 
and the benefit of a discharge to the debtor does not outweigh 
the detriment to the spouse, former spouse, or child.
    This section also amends section 523(a)(9), which makes 
nondischargeable any debt resulting from death or personal 
injury arising from the debtor's unlawful operation of a motor 
vehicle while intoxicated, to add ``watercraft, or aircraft'' 
after ``motor vehicle.'' Neither additional term should be 
defined or included as a ``motor vehicle'' in section 523(a)(9) 
and each is intended to comprise unpowered as well as motor 
powered craft. Congress previously made the policy judgment 
that the equities of persons injured by drunk drivers outweigh 
the responsible debtor's interest in a fresh start, and here 
clarifies that the policy applies not only on land but also on 
the water and in the air. Viewed from a practical standpoint, 
this provision closes a loophole that gives intoxicated 
watercraft and aircraft operators preferred treatment over 
intoxicated motor vehicle drivers and denies victims of alcohol 
and drug related boat and plane accidents the same rights 
accorded to automobile accident victims under current law.
    Finally, this section amends section 523(a)(17), added by 
the Omnibus Consolidated Rescissions and Appropriations Act of 
1996,\18\ to narrow its application in accordance with its 
original intent. Paragraph (17), enacted in the context of 
prison litigation reform, excepts from discharge the filing 
fees or related costs or expenses assessed by a court in a 
civil case or appeal. Because of a drafting error, however, 
this section might be construed to apply to filing fees, costs 
or expenses incurred by any debtor, not solely by those who are 
prisoners. Section 16(5) eliminates the ambiguity and makes 
other conforming changes.
---------------------------------------------------------------------------
    \18\ Pub. L. No. 104-134, sec. 804(b).

---------------------------------------------------------------------------
Section 17. Effect of Discharge

    Section 17 of the bill makes technical amendments to 
correct errors in section 524(a)(3) of title 11 of the United 
States Code, caused by section 257(o)(2) of Public Law 99-554 
and section 501(d)(14)(A) of Public Law 103-394. For a 
description of these errors, see the appropriate footnote and 
amendment notes in the United States Code.

Section 18. Protection Against Discriminatory Treatment

    Section 18 of the bill amends section 525(c) of the 
Bankruptcy Code to make a technical amendment to conform a 
reference to its antecedent reference. The omission of 
``student'' before ``grant'' in the second place it appears in 
section 525(c) made possible the interpretation that a broader 
limitation on lender discretion was intended, so that no loan 
could be denied because of a prior bankruptcy if the lending 
institution was in the business of making student loans. 
Section 18 is intended to make clear that lenders involved in 
making government guaranteed or insured student loans are not 
barred by this Bankruptcy Code provision from denying other 
types of loans based on an applicant's bankruptcy history; only 
student loans and grants, therefore, cannot be denied under 
section 525(c) because of a prior bankruptcy.

Section 19. Property of the Estate

    Production payments are royalties tied to the production of 
a certain volume or value of oil or gas, determined without 
regard to production costs. They typically would be paid by an 
oil or gas operator to the owner of the underlying property on 
which the oil or gas is found. Under section 541(b)(4)(B)(ii) 
of the Bankruptcy Code, added by the Bankruptcy Reform Act of 
1994, production payments are generally excluded from the 
debtor's estate, provided they could be included only by virtue 
of section 542 of the Bankruptcy Code, which relates generally 
to the obligation of those holding property which belongs in 
the estate to turn it over to the trustee. Section 19 adds to 
this proviso a reference to section 365 of the Bankruptcy Code, 
which authorizes the trustee to assume or reject an executory 
contract or unexpired lease. It thereby clarifies the original 
Congressional intent to generally exclude production payments 
from the debtor's estate.

Section 20. Limitations on Avoiding Powers

    Section 20 of the bill amends section 546 of title 11 of 
the United States Code to correct an erroneous duplicate 
subsection designation caused by Public Law 103-394. For 
additional information, see the appropriate footnote and 
amendment notes in the United States Code.

Section 21. Preferences

    Section 547 of the Bankruptcy Code authorizes trustees to 
avoid preferential payments made to creditors by a debtor 
within 90 days of filing, whether the creditor is an insider or 
an outsider. Because of the concern that corporate insiders 
(such as officers and directors) who are creditors of their own 
corporation have an unfair advantage over outside creditors, 
section 547 also authorizes trustees to avoid preferential 
payments made to insider creditors between 90 days and one year 
before filing. Several recent cases, including DePrizio,\19\ 
allowed the trustee to ``reach-back'' and avoid a transfer to a 
noninsider creditor which fell within the 90-day to one year 
time frame if an insider benefited from the transfer in some 
way.
---------------------------------------------------------------------------
    \19\ In re V.N. DePrizio Construction Co., 874 F.2d 1186 (7th Cir. 
1989); Ray v. City Bank & Trust Co. (In re C&L Cartage Co.), 899 F.2d 
1490 (6th Cir. 1990); Manufacturers Hanover Leasing Corp. v. Lowrey (In 
re Robinson Brothers Drilling), 892 F.2d 850 (10th Cir. 1989).
---------------------------------------------------------------------------
    This had the effect of discouraging lenders from obtaining 
loan guarantees, lest transfers to the lender be vulnerable to 
recapture by reason of the debtor's insider relationship with 
the loan guarantor. Section 202 of the Bankruptcy Reform Act of 
1994 addressed the DePrizio problem by inserting a new section 
550(c) into the Bankruptcy Code to prevent avoidance or 
recovery from a noninsider creditor during the 90-day to one 
year period even though the transfer to the noninsider 
benefited an insider creditor. The National Bankruptcy 
Conference points out, however, that ``No amendment was made to 
section 547, which deals with the avoidance of preferences as 
an initial proposition. Therefore some commentators have 
speculated that the trustee could still use section 547 to 
avoid a preferential lien given to a noninsider bank, more than 
90 days but less than one year before bankruptcy, where the 
transfer benefited an insider guarantor of the debtor's debt to 
the bank.'' \20\
---------------------------------------------------------------------------
    \20\ Hearing on H.R. 764 and H.R. 120, supra note 3, at 39.
---------------------------------------------------------------------------
    Section 21 makes a perfecting amendment to section 547 to 
provide that if the trustee avoids a security interest given by 
the debtor to a noninsider for the benefit of an insider 
creditor between 90 days and one year before filing, that 
avoidance is valid only with respect to the insider creditor. 
Thus both the previous amendment to section 550 and the 
perfecting amendment to section 547 protect the noninsider from 
the avoiding powers of the trustee exercised with respect to 
transfers during the 90-day to one year pre-filing period.

Section 22. Postpetition Transactions

    Section 22, to be read in conjunction with paragraph (6) of 
section 2, amends section 549(c) to clarify its application to 
an interest in real property.

Section 23. Setoff

    Section 23 of the bill amends section 553(b)(1) of title 11 
of the United States Code to correct a paragraph cross 
reference that was not conformed by Public Law 103-394 at the 
time the paragraph referred to was redesignated by that law. 
For a description of the error, see the appropriate footnote 
and amendment notes in the United States Code.

Section 24. Disposition of Property of the Estate

    Section 24 of the bill amends section 726(b) of title 11 of 
the United States Code to strike an erroneous reference to a 
nonexistent section. For a description of the error, see the 
appropriate footnote and amendment notes in the United States 
Code.

Section 25. General Provisions

    Section 25 of the bill amends section 901(a) of title 11 of 
the United States Code to correct an omission in a list of 
sections applicable to cases under chapter 9 of title 11.

Section 26. Appointment of Elected Trustee

    This section refines existing law by clarifying the 
procedure for giving effect to the election of a private 
trustee in a chapter 11 reorganization case. Section 702(b) of 
the Bankruptcy Code permits creditors at the meeting of 
creditors to elect one person to serve as trustee in the case, 
provided certain conditions are met. Section 1104(b) of the 
Bankruptcy Code relates to the convening of the meeting of 
creditors for this purpose and the conduct of the election. 
Section 26 of the bill would renumber Section 1104(b) as 
Section 1104(b)(1) and add a new subsection 1104(b)(2) 
requiring the United States trustee to file a report certifying 
the election when an eligible, disinterested trustee is elected 
under paragraph (1). The effect of such filing would be to 
consider such elected trustee as selected and appointed for 
purposes of Section 1104 and to terminate the service of any 
trustee appointed under subsection (d), which provides for the 
appointment of a trustee or examiner by the United States 
trustee, subject to court approval, if the court orders such an 
appointment or in the event of a trustee or examiner's death, 
resignation, removal or failure to qualify.

Section 27. Abandonment of Railroad Line; Section 28. Contents 
        of Plan

    Sections 27 and 28 of the bill amend sections 1170(e)(1) 
and 1172(c)(1) of title 11 of the United States Code to reflect 
the facts that section 11347 of title 49 of the United States 
Code was repealed by section 102(a) of Public Law 104-88 and 
that provisions comparable to section 11347 appear in section 
11326(a) of title 49 of the United States Code.

Section 29. Discharge

    Section 29 of the bill amends section 1228 of the 
Bankruptcy Code, dealing with discharge under chapter 12, to 
correct erroneous references.

Section 30. Contents of Plan

    Section 30 of the bill amends section 1322 of the 
Bankruptcy Code, dealing with the content of a chapter 13 
reorganization plan, to correct an erroneous reference and a 
punctuation error.

Section 31. Discharge

    This section would amend section 1328(a) of the Bankruptcy 
Code, dealing with discharges under chapter 13, to omit a 
redundancy.

Section 32. Bankruptcy Cases and Proceedings

    Section 32 of the bill amends section 1334(d) of title 28 
of the United States Code to correct erroneous references. For 
a description of the errors, see the appropriate footnote and 
amendment notes in the United States Code.

Section 33. Knowing Disregard of Bankruptcy Law or Rule

    This section amends section 156(a) of title 18 of the 
United States Code, which defined ``bankruptcy petition 
preparer'' and ``document for filing,'' by making stylistic 
changes and correcting a reference to title 11 of the United 
States Code.

Section 34. Effective Date; Application of Amendments

    This section provides that amendments made by this act 
shall take effect on the date of enactment, but shall apply 
only to cases commenced under title 11 on or after the date of 
enactment. The vast majority of Bankruptcy Code changes made by 
this act are technical and will not change the results in 
future cases.

                              Agency Views

    No agency views were received on H.R. 764.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

                      TITLE 11, UNITED STATES CODE

          * * * * * * *

                     CHAPTER 1--GENERAL PROVISIONS

          * * * * * * *

Sec. 101. Definitions

    In this [title--] title:
            (1) The term ``accountant'' means accountant 
        authorized under applicable law to practice public 
        accounting, and includes professional accounting 
        association, corporation, or partnership, if so 
        authorized[;].
            (2) The term ``affiliate'' means--
                    (A) * * *
          * * * * * * *
                    (D) entity that operates the business or 
                substantially all of the property of the debtor 
                under a lease or operating agreement[;].
            [(4)] (3) The term ``attorney'' means attorney, 
        professional law association, corporation, or 
        partnership, authorized under applicable law to 
        practice law[;].
            [(5)] (4) The term ``claim'' means--
                    (A) right to payment, whether or not such 
                right is reduced to judgment, liquidated, 
                unliquidated, fixed, contingent, matured, 
                unmatured, disputed, undisputed, legal, 
                equitable, secured, or unsecured; or
                    (B) right to an equitable remedy for breach 
                of performance if such breach gives rise to a 
                right to payment, whether or not such right to 
                an equitable remedy is reduced to judgment, 
                fixed, contingent, matured, unmatured, 
                disputed, undisputed, secured, or unsecured[;].
            [(6)] (5) The term ``commodity broker'' means 
        futures commission merchant, foreign futures commission 
        merchant, clearing organization, leverage transaction 
        merchant, or commodity options dealer, as defined in 
        section 761 of this title, with respect to which there 
        is a customer, as defined in section 761 of this 
        title[;].
            [(7)] (6) The term ``community claim'' means claim 
        that arose before the commencement of the case 
        concerning the debtor for which property of the kind 
        specified in section 541(a)(2) of this title is liable, 
        whether or not there is any such property at the time 
        of the commencement of the case[;].
            [(8)] (7) The term ``consumer debt'' means debt 
        incurred by an individual primarily for a personal, 
        family, or household purpose[;].
            [(9)] (8) The term ``corporation''--
                    (A) * * *
                    (B) does not include limited 
                partnership[;].
            [(10)] (9) The term ``creditor'' means--
                    (A) entity that has a claim against the 
                debtor that arose at the time of or before the 
                order for relief concerning the debtor;
                    (B) entity that has a claim against the 
                estate of a kind specified in section 348(d), 
                502(f), 502(g), 502(h) or 502(i) of this title; 
                or
                    (C) entity that has a community claim[;].
            [(11)] (10) The term ``custodian'' means--
                    (A) receiver or trustee of any of the 
                property of the debtor, appointed in a case or 
                proceeding not under this title;
                    (B) assignee under a general assignment for 
                the benefit of the debtor's creditors; or
                    (C) trustee, receiver, or agent under 
                applicable law, or under a contract, that is 
                appointed or authorized to take charge of 
                property of the debtor for the purpose of 
                enforcing a lien against such property, or for 
                the purpose of general administration of such 
                property for the benefit of the debtor's 
                creditors[;].
            [(12)] (11) The term ``debt'' means liability on a 
        claim[;].
            [(12A)] (12) The term ``debt for child support'' 
        means a debt of a kind specified in section 523(a)(5) 
        of this title for maintenance or support of a child of 
        the debtor[;].
            (13) The term ``debtor'' means person or 
        municipality concerning which a case under this title 
        has been commenced[;].
            (14) The term ``disinterested person'' means person 
        that--
                    (A) * * *
          * * * * * * *
                    (E) does not have an interest materially 
                adverse to the interest of the estate or of any 
                class of creditors or equity security holders, 
                by reason of any direct or indirect 
                relationship to, connection with, or interest 
                in, the debtor or an investment banker 
                specified in subparagraph (B) or (C) of this 
                paragraph, or for any other reason[;].
            (15) The term ``entity'' includes person, estate, 
        trust, governmental unit, and United States trustee[;].
            (16) The term ``equity security'' means--
                    (A) * * *
          * * * * * * *
                    (C) warrant or right, other than a right to 
                convert, to purchase, sell, or subscribe to a 
                share, security, or interest of a kind 
                specified in subparagraph (A) or (B) of this 
                paragraph[;].
            (17) The term ``equity security holder'' means 
        holder of an equity security of the debtor[;].
            (18) The term ``family farmer'' means--
                    (A) * * *
          * * * * * * *
                    (B) corporation or partnership in which 
                more than 50 percent of the outstanding stock 
                or equity is held by one family, or by one 
                family and the relatives of the members of such 
                family, and such family or such relatives 
                conduct the farming operation, and
                            (i) * * *
          * * * * * * *
                            (iii) if such corporation issues 
                        stock, such stock is not publicly 
                        traded[;].
            (19) The term ``family farmer with regular annual 
        income'' means family farmer whose annual income is 
        sufficiently stable and regular to enable such family 
        farmer to make payments under a plan under chapter 12 
        of this title[;].
            (20) The term ``farmer'' means (except when such 
        term appears in the term ``family farmer'') person that 
        received more than 80 percent of such person's gross 
        income during the taxable year of such person 
        immediately preceding the taxable year of such person 
        during which the case under this title concerning such 
        person was commenced from a farming operation owned or 
        operated by such person[;].
            (21) The term ``farming operation'' includes 
        farming, tillage of the soil, dairy farming, ranching, 
        production or raising of crops, poultry, or livestock, 
        and production of poultry or livestock products in an 
        unmanufactured state[;].
            [(21A)] (22) The term ``farmout agreement'' means a 
        written agreement in which--
                    (A) the owner of a right to drill, produce, 
                or operate liquid or gaseous hydrocarbons on 
                property agrees or has agreed to transfer or 
                assign all or a part of such right to another 
                entity; and
                    (B) such other entity (either directly or 
                through its agents or its assigns), as 
                consideration, agrees to perform drilling, 
                reworking, recompleting, testing, or similar or 
                related operations, to develop or produce 
                liquid or gaseous hydrocarbons on the 
                property[;].
            [(21B)] (23) The term ``Federal depository 
        institutions regulatory agency'' means--
                    (A) * * *
          * * * * * * *
                    (D) with respect to any insured depository 
                institution for which the Federal Deposit 
                Insurance Corporation has been appointed 
                conservator or receiver, the Federal Deposit 
                Insurance Corporation[;].
            [(22)] (24) The term ``financial institution'' 
        means a person that is a commercial or savings bank, 
        industrial savings bank, savings and loan association, 
        or trust company and, when any such person is acting as 
        agent or custodian for a customer in connection with a 
        securities contract, as defined in section 741 of this 
        title, such customer[;].
            [(23)] (25) The term ``foreign proceeding'' means 
        proceeding, whether judicial or administrative and 
        whether or not under bankruptcy law, in a foreign 
        country in which the debtor's domicile, residence, 
        principal place of business, or principal assets were 
        located at the commencement of such proceeding, for the 
        purpose of liquidating an estate, adjusting debts by 
        composition, extension, or discharge, or effecting a 
        reorganization[;].
            [(24)] (26) The term ``foreign representative'' 
        means duly selected trustee, administrator, or other 
        representative of an estate in a foreign proceeding[;].
            [(25)] (27) The term ``forward contract'' means a 
        contract (other than a commodity contract) for the 
        purchase, sale, or transfer of ;a commodity, as defined 
        in section 761(8) of this title, or any similar good, 
        article, service, right, or interest which is presently 
        or in the future becomes the subject of dealing in the 
        forward contract trade, or product or byproduct 
        thereof, with a maturity date more than two days after 
        the date the contract is entered into, including, but 
        not limited to, a repurchase transaction, reverse 
        repurchase transaction, consignment, lease, swap, hedge 
        transaction, deposit, loan, option, allocated 
        transaction, unallocated transaction, or any 
        combination thereof or option thereon[;].
            [(26)] (28) The term ``forward contract merchant'' 
        means a person whose business consists in whole or in 
        part of entering into forward contracts as or with 
        merchants in a commodity, as defined in section 761(8) 
        of this title, or any similar good, article, service, 
        right, or interest which is presently or in the future 
        becomes the subject of dealing in the forward contract 
        trade[;].
            [(27)] (29) The term ``governmental unit'' means 
        United States; State; Commonwealth; District; 
        Territory; municipality; foreign state; department, 
        agency, or instrumentality of the United States (but 
        not a United States trustee while serving as a trustee 
        in a case under this title), a State, a Commonwealth, a 
        District, a Territory, a municipality, or a foreign 
        state; or other foreign or domestic government[;].
            [(28)] (30) The term ``indenture'' means mortgage, 
        deed of trust, or indenture, under which there is 
        outstanding a security, other than a voting-trust 
        certificate, constituting a claim against the debtor, a 
        claim secured by a lien on any of the debtor's 
        property, or an equity security of the debtor[;].
            [(29)] (31) The term ``indenture trustee'' means 
        trustee under an indenture[;].
            [(30)] (32) The term ``individual with regular 
        income'' means individual whose income is sufficiently 
        stable and regular to enable such individual to make 
        payments under a plan under chapter 13 of this title, 
        other than a stockbroker or a commodity broker[;].
            [(31)] (33) The term ``insider'' includes--
                    (A) * * *
          * * * * * * *
                    (E) affiliate, or insider of an affiliate 
                as if such affiliate were the debtor; and
                    (F) managing agent of the debtor[;].
            [(32)] (34) The term ``insolvent'' means--
                    (A) * * *
          * * * * * * *
                    (C) with reference to a municipality, 
                financial condition such that the municipality 
                is--
                            (i) generally not paying its debts 
                        as they become due unless such debts 
                        are the subject of a bona fide dispute; 
                        or
                            (ii) unable to pay its debts as 
                        they become due[;].
            [(33)] (35) The term ``institution-affiliated 
        party''--
                    (A) * * *
          * * * * * * *
                    (B) with respect to an insured credit 
                union, has the meaning given it in section 
                206(r) of the Federal Credit Union Act[;].
            [(34)] (36) The term ``insured credit union'' has 
        the meaning given it in section 101(7) of the Federal 
        Credit Union Act[;].
            [(35)] (37) The term ``insured depository 
        institution''--
                    (A) has the meaning given it in section 
                3(c)(2) of the Federal Deposit Insurance Act; 
                and
                    (B) includes an insured credit union 
                (except in the case of [paragraphs (21B) and 
                (33)(A)] paragraphs (23) and (35) of this 
                subsection)[;].
            [(35A)] (38) The term ``intellectual property'' 
        means--
                    (A) * * *
          * * * * * * *
                    (F) mask work protected under chapter 9 of 
                title 17;
        to the extent protected by applicable nonbankruptcy 
        law[; and].
            [(36)] (39) The term ``judicial lien'' means lien 
        obtained by judgment, levy, sequestration, or other 
        legal or equitable process or proceeding[;].
            [(37)] (40) The term ``lien'' means charge against 
        or interest in property to secure payment of a debt or 
        performance of an obligation[;].
            [(38)] (41) The term ``margin payment'' means, for 
        purposes of the forward contract provisions of this 
        title, payment or deposit of cash, a security or other 
        property, that is commonly known in the forward 
        contract trade as original margin, initial margin, 
        maintenance margin, or variation margin, including 
        mark-to-market payments, or variation payments[; and].
            [(39)] (42) The term ``mask work'' has the meaning 
        given it in section 901(a)(2) of title 17.
            [(40)] (43) The term ``municipality'' means 
        political subdivision or public agency or 
        instrumentality of a State[;].
            [(41)] (44) The term ``person'' includes 
        individual, partnership, and corporation, but does not 
        include governmental unit, except that a governmental 
        unit that--
                    (A) * * *
          * * * * * * *
                    (C) is the legal or beneficial owner of an 
                asset of--
                            (i) * * *
          * * * * * * *
                            (ii) an eligible deferred 
                        compensation plan, as defined in 
                        section 457(b) of the Internal Revenue 
                        Code of 1986;
        shall be considered, for purposes of section 1102 of 
        this title, to be a person with respect to such asset 
        or such benefit[;].
            [(42)] (45) The term ``petition'' means petition 
        filed under section 301, 302, 303, or 304 of this 
        title, as the case may be, commencing a case under this 
        title[;].
            [(42A)] (46) The term ``production payment'' means 
        a term overriding royalty satisfiable in cash or in 
        kind--
                    (A) contingent on the production of a 
                liquid or gaseous hydrocarbon from particular 
                real property; ;and
                    (B) from a specified volume, or a specified 
                value, from the liquid or gaseous hydrocarbon 
                produced from such property, and determined 
                without regard to production costs[;].
            [(43)] (47) The term ``purchaser'' means transferee 
        of a voluntary transfer, and includes immediate or 
        mediate transferee of such a transferee[;].
            [(44)] (48) The term ``railroad'' means common 
        carrier by railroad engaged in the transportation of 
        individuals or property or owner of trackage facilities 
        leased by such a common carrier[;].
            [(45)] (49) The term ``relative'' means individual 
        related by affinity or consanguinity within the third 
        degree as determined by the common law, or individual 
        in a step or adoptive relationship within such third 
        degree[;].
            [(46)] (50) The term ``repo participant'' means an 
        entity that, on any day during the period beginning 90 
        days before the date of the filing of the petition, has 
        an outstanding repurchase agreement with the debtor[;].
            [(47)] (51) The term ``repurchase agreement'' 
        (which definition also applies to a reverse repurchase 
        agreement) means an agreement, including related terms, 
        which provides for the transfer of certificates of 
        deposit, eligible bankers' acceptances, or securities 
        that are direct obligations of, or that are fully 
        guaranteed as to principal and interest by, the United 
        States or any agency of the United States against the 
        transfer of funds by the transferee of such 
        certificates of deposit, eligible bankers' acceptances, 
        or securities with a simultaneous agreement by such 
        transferee to transfer to the transferor thereof 
        certificates of deposit, eligible bankers' acceptances, 
        or securities as described above, at a date certain not 
        later than one year after such transfers or on demand, 
        against the transfer of funds[;].
            [(48)] (52) The term ``securities clearing agency'' 
        means person that is registered as a clearing agency 
        under section 17A of the Securities Exchange Act of 
        1934 or whose business is confined to the performance 
        of functions of a clearing agency with respect to 
        exempted securities, as defined in section 3(a)(12) of 
        such Act for the purposes of such section 17A[;].
            [(49)] (53) The term ``security''--
                    (A) * * *
                    (B) does not include--
                            (i) * * *
          * * * * * * *
                            (vii) debt or evidence of 
                        indebtedness for goods sold and 
                        delivered or services rendered[;].
            [(50)] (54) The term ``security agreement'' means 
        agreement that creates or provides for a security 
        interest[;].
            [(51)] (55) The term ``security interest'' means 
        lien created by an agreement[;].
            [(51A)] (56) The term ``settlement payment'' means, 
        for purposes of the forward contract provisions of this 
        title, a preliminary settlement payment, a partial 
        settlement payment, an interim settlement payment, a 
        settlement payment on account, a final settlement 
        payment, a net settlement payment, or any other similar 
        payment commonly used in the forward contract trade[;].
            [(51B)] (57) The term ``single asset real estate'' 
        means real property constituting a single property or 
        project, other than residential real property with 
        fewer than 4 residential units, which generates 
        substantially all of the gross income of a debtor who 
        is not a family farmer and on which no substantial 
        business is being conducted by a debtor other than the 
        business of operating the real property and activities 
        incidental thereto having aggregate noncontingent, 
        liquidated secured debts in an amount no more than 
        [$4,000,000;] $15,000,000 as of the date of the filing 
        of the petition.
            [(51C)] (58) The term ``small business'' means a 
        person engaged in commercial or business activities 
        (but does not include a person whose primary activity 
        is the business of owning or operating real property 
        and activities incidental thereto) whose aggregate 
        noncontingent liquidated secured and unsecured debts as 
        of the date of the petition do not exceed 
        $2,000,000[;].
            [(52)] (59) The term ``State'' includes the 
        District of Columbia and Puerto Rico, except for the 
        purpose of defining who may be a debtor under chapter 9 
        of this title[;].
            [(53)] (60) The term ``statutory lien'' means lien 
        arising solely by force of a statute on specified 
        circumstances or conditions, or lien of distress for 
        rent, whether or not statutory, but does not include 
        security interest or judicial lien, whether or not such 
        interest or lien is provided by or is dependent on a 
        statute and whether or not such interest or lien is 
        made fully effective by statute[;].
            [(53A)] (61) The term ``stockbroker'' means 
        person--
                    (A) * * *
                    (B) that is engaged in the business of 
                effecting transactions in securities--
                            (i) for the account of others; or
                            (ii) with members of the general 
                        public, from or for such person's own 
                        account[;].
            [(53B)] (62) The term ``swap agreement'' means--
                    (A) * * *
          * * * * * * *
                    (C) a master agreement for any of the 
                foregoing together with all supplements[;].
            [(53C)] (63) The term ``swap participant'' means an 
        entity that, at any time before the filing of the 
        petition, has an outstanding swap agreement with the 
        debtor[;].
            [(56A)] (64) The term ``term overriding royalty'' 
        means an interest in liquid or gaseous hydrocarbons in 
        place or to be produced from particular real property 
        that entitles the owner thereof to a share of 
        production, or the value thereof, for a term limited by 
        time, quantity, or value realized[;].
            [(53D)] (65) The term ``timeshare plan'' means and 
        shall include that interest purchased in any 
        arrangement, plan, scheme, or similar device, but not 
        including exchange programs, whether by membership, 
        agreement, tenancy in common, sale, lease, deed, rental 
        agreement, license, right to use agreement, or by any 
        other means, whereby a purchaser, in exchange for 
        consideration, receives a right to use accommodations, 
        facilities, or recreational sites, whether improved or 
        unimproved, for a specific period of time less than a 
        full year during any given year, but not necessarily 
        for consecutive years, and which extends for a period 
        of more than three years. A ``timeshare interest'' is 
        that interest purchased in a timeshare plan which 
        grants the purchaser the right to use and occupy 
        accommodations, facilities, or recreational sites, 
        whether improved or unimproved, pursuant to a timeshare 
        plan[;].
            [(54) ``transfer'' means every mode, direct or 
        indirect, absolute or conditional, voluntary or 
        involuntary, of disposing of or parting with property 
        or with an interest in property, including retention of 
        title as a security interest and foreclosure of the 
        debtor's equity of redemption;]
            (66) The term ``transfer'' means--
                    (A) creation of a lien;
                    (B) retention of title as a security 
                interest;
                    (C) foreclosure of the debtor's equity of 
                redemption; or
                    (D) every mode, direct or indirect, 
                absolute or conditional, voluntary or 
                involuntary, of disposing of or parting with 
                property or with an interest in property.
            [(55)] (67) The term ``United States'', when used 
        in a geographical sense, includes all locations where 
        the judicial jurisdiction of the United States extends, 
        including territories and possessions of the United 
        States[;].
          * * * * * * *

Sec. 104. Adjustment of dollar amounts

    (a) * * *
    (b)(1) On April 1, 1998, and at each 3-year interval ending 
on April 1 thereafter, each dollar amount in effect under 
sections 109(e), 303(b), 507(a), 522(d), 522(f)(3), and 
523(a)(2)(C) immediately before such April 1 shall be 
adjusted--
            (A) to reflect the change in the Consumer Price 
        Index for All Urban Consumers, published by the 
        Department of Labor, for the most recent 3-year period 
        ending immediately before January 1 preceding such 
        April 1, and
            (B) to round to the nearest $25 the dollar amount 
        that represents such change.
    (2) Not later than March 1, 1998, and at each 3-year 
interval ending on March 1 thereafter, the Judicial Conference 
of the United States shall publish in the Federal Register the 
dollar amounts that will become effective on such April 1 under 
sections 109(e), 303(b), 507(a), 522(d), 522(f)(3), and 
523(a)(2)(C) of this title.
          * * * * * * *

Sec. 108. Extension of time

    (a) * * *
          * * * * * * *
    (c) Except as provided in section 524 of this title, if 
applicable nonbankruptcy law, an order entered in a 
nonbankruptcy proceeding, or an agreement fixes a period for 
commencing or continuing a civil action in a court other than a 
bankruptcy court on a claim against the debtor, or against an 
individual with respect to which such individual is protected 
under section 1201 or 1301 of this title, and such period has 
not expired before the date of the filing of the petition, then 
such period does not expire until the later of--
            (1) the end of such period including any suspension 
        of such period occurring on or after the commencement 
        of the case; or
            (2) 30 days after notice of the termination or 
        expiration of the stay under section 362, [922, or] 
        922, 1201, or 1301 of this title, as the case may be, 
        with respect to such claim.
          * * * * * * *

Sec. 110. Penalty for persons who negligently or fraudulently prepare 
                    bankruptcy petitions

    (a) * * *
          * * * * * * *
    (j)(1) * * *
          * * * * * * *
    (3) The court shall award to a debtor, trustee, or creditor 
that brings a successful action under this subsection 
reasonable [attorney's] attorneys' fees and costs of the 
action, to be paid by the bankruptcy petition preparer.
          * * * * * * *

                     CHAPTER 3--CASE ADMINISTRATION

          * * * * * * *

                        SUBCHAPTER II--OFFICERS

          * * * * * * *

Sec. 328. Limitation on compensation of professional persons

    (a) The trustee, or a committee appointed under section 
1102 of this title, with the court's approval, may employ or 
authorize the employment of a professional person under section 
327 or 1103 of this title, as the case may be, on any 
reasonable terms and conditions of employment, including on a 
retainer, on an hourly basis, on a fixed or percentage fee 
basis, or on a contingent fee basis. Notwithstanding such terms 
and conditions, the court may allow compensation different from 
the compensation provided under such terms and conditions after 
the conclusion of such employment, if such terms and conditions 
prove to have been improvident in light of developments not 
capable of being anticipated at the time of the fixing of such 
terms and conditions.
          * * * * * * *

Sec. 330. Compensation of officers

    (a)(1) After notice to the parties in interest and the 
United States Trustee and a hearing, and subject to sections 
326, 328, and 329, the court may award to a trustee, an 
examiner, a professional person employed under section 327 or 
1103, or the debtor's attorney--
            (A) reasonable compensation for actual, necessary 
        services rendered by the trustee, examiner, 
        professional person, or attorney and by any 
        paraprofessional person employed by any such person; 
        and
            (B) reimbursement for actual, necessary expenses.
          * * * * * * *
    (3)[(A)] In determining the amount of reasonable 
compensation to be awarded, the court shall consider the 
nature, the extent, and the value of such services, taking into 
account all relevant factors, including--
            (A) * * *
          * * * * * * *

                     SUBCHAPTER III--ADMINISTRATION

          * * * * * * *

Sec. 346. Special tax provisions

    (a) * * *
          * * * * * * *
    (g)(1) Neither gain nor loss shall be recognized on a 
transfer--
            (A) by operation of law, of property to the estate;
            (B) other than a sale, of property from the estate 
        to the debtor; or
            (C) in a case under chapter 11 or 12 of this title 
        concerning a corporation, of property from the estate 
        to a corporation that is an affiliate participating in 
        a joint plan with the debtor, or that is a successor to 
        the debtor under the plan[, except that gain or loss 
        may be recognized to the same extent that such transfer 
        results in the recognition of gain or loss under 
        section 371 of the Internal Revenue Code of 1986].
          * * * * * * *

Sec. 348. Effect of conversion

    (a) * * *
          * * * * * * *
    (f)(1) * * *
    (2) If the debtor converts a case under chapter 13 of this 
title to a case under another chapter under this title in bad 
faith, the property of the estate in the converted case shall 
consist of the property of the estate as of the date of 
conversion.
          * * * * * * *

                  SUBCHAPTER IV--ADMINISTRATIVE POWERS

          * * * * * * *

Sec. 362. Automatic stay

    (a) * * *
    (b) The filing of a petition under section 301, 302, or 303 
of this title, or of an application under section 5(a)(3) of 
the Securities Investor Protection Act of 1970, does not 
operate as a stay--
            (1) * * *
          * * * * * * *
            (17) under subsection (a) of this section, of the 
        setoff by a swap participant, of any mutual debt and 
        claim under or in connection with any swap agreement 
        that constitutes the setoff of a claim against the 
        debtor for any payment due from the debtor under or in 
        connection with any swap agreement against any payment 
        due to the debtor from the swap participant under or in 
        connection with any swap agreement or against cash, 
        securities, or other property of the debtor held by or 
        due from such swap participant to guarantee, secure or 
        settle any swap agreement; [or]
            (18) under subsection (a) of the creation or 
        perfection of a statutory lien for an ad valorem 
        property tax imposed by the District of Columbia, or a 
        political subdivision of a State, if such tax comes due 
        after the filing of the petition[.]; or
            (19) under subsection (a) of this section, of any 
        transfer that is not avoidable under section 544 and 
        not avoidable under section 549.
The provisions of paragraphs (12) and (13) of this subsection 
shall apply with respect to any such petition filed on or 
before December 31, 1989.
          * * * * * * *

Sec. 365. Executory contracts and unexpired leases

    (a) * * *
    (b)(1) * * *
    (2) Paragraph (1) of this subsection does not apply to a 
default that is a breach of a provision relating to--
            (A) the insolvency or financial condition of the 
        debtor at any time before the closing of the case;
          * * * * * * *
            (C) the appointment of or taking possession by a 
        trustee in a case under this title or a custodian 
        before such commencement; [or]
            [(D) the satisfaction of any penalty rate or 
        provision relating to a default arising from any 
        failure by the debtor to perform nonmonetary 
        obligations under the executory contract or unexpired 
        lease.]
            (D) the satisfaction of any penalty rate or penalty 
        provision relating to a default arising from a failure 
        to perform nonmonetary obligations under an executory 
        contract or under an unexpired lease of real or 
        personal property;
            (E) the satisfaction of any provision (other than a 
        penalty rate or penalty provision) relating to a 
        default arising from any failure to perform nonmonetary 
        obligations under an unexpired lease of real property, 
        if it is impossible for the trustee to cure such 
        default by performing nonmonetary acts at and after the 
        time of assumption; or
            (F) the satisfaction of any provision (other than a 
        penalty rate or penalty provision) relating to a 
        default arising from any failure to perform nonmonetary 
        obligations under an executory contract, if it is 
        impossible for the trustee to cure such default by 
        performing nonmonetary acts at and after the time of 
        assumption and if the court determines, based on the 
        equities of the case, that paragraph (1) should not 
        apply with respect to such default.
    (c) The trustee may not assume or assign any executory 
contract or unexpired lease of the debtor, whether or not such 
contract or lease prohibits or restricts assignment of rights 
or delegation of duties, if--
            (1) * * *
            (2) such contract is a contract to make a loan, or 
        extend other debt financing or financial 
        accommodations, to or for the benefit of the debtor, or 
        to issue a security of the debtor; or
            (3) such lease is of nonresidential real property 
        and has been terminated under applicable nonbankruptcy 
        law prior to the order for relief[; or].
            [(4) such lease is of nonresidential real property 
        under which the debtor is the lessee of an aircraft 
        terminal or aircraft gate at an airport at which the 
        debtor is the lessee under one or more additional 
        nonresidential leases of an aircraft terminal or 
        aircraft gate and the trustee, in connection with such 
        assumption or assignment, does not assume all such 
        leases or does not assume and assign all of such leases 
        to the same person, except that the trustee may assume 
        or assign less than all of such leases with the airport 
        operator's written consent.]
    (d)(1) * * *
          * * * * * * *
    [(5) Notwithstanding paragraphs (1) and (4) of this 
subsection, in a case under any chapter of this title, if the 
trustee does not assume or reject an unexpired lease of 
nonresidential real property under which the debtor is an 
affected air carrier that is the lessee of an aircraft terminal 
or aircraft gate before the occurrence of a termination event, 
then (unless the court orders the trustee to assume such 
unexpired leases within 5 days after the termination event), at 
the option of the airport operator, such lease is deemed 
rejected 5 days after the occurrence of a termination event and 
the trustee shall immediately surrender possession of the 
premises to the airport operator; except that the lease shall 
not be deemed to be rejected unless the airport operator first 
waives the right to damages related to the rejection. In the 
event that the lease is deemed to be rejected under this 
paragraph, the airport operator shall provide the affected air 
carrier adequate opportunity after the surrender of the 
premises to remove the fixtures and equipment installed by the 
affected air carrier.
    [(6) For the purpose of paragraph (5) of this subsection 
and paragraph (f)(1) of this section, the occurrence of a 
termination event means, with respect to a debtor which is an 
affected air carrier that is the lessee of an aircraft terminal 
or aircraft gate--
            [(A) the entry under section 301 or 302 of this 
        title of an order for relief under chapter 7 of this 
        title;
            [(B) the conversion of a case under any chapter of 
        this title to a case under chapter 7 of this title; or
            [(C) the granting of relief from the stay provided 
        under section 362(a) of this title with respect to 
        aircraft, aircraft engines, propellers, appliances, or 
        spare parts, as defined in section 40102(a) of title 
        49, except for property of the debtor found by the 
        court not to be necessary to an effective 
        reorganization.
    [(7) Any order entered by the court pursuant to paragraph 
(4) extending the period within which the trustee of an 
affected air carrier must assume or reject an unexpired lease 
of nonresidential real property shall be without prejudice to--
            [(A) the right of the trustee to seek further 
        extensions within such additional time period granted 
        by the court pursuant to paragraph (4); and
            [(B) the right of any lessor or any other party in 
        interest to request, at any time, a shortening or 
        termination of the period within which the trustee must 
        assume or reject an unexpired lease of nonresidential 
        real property.
    [(8) The burden of proof for establishing cause for an 
extension by an affected air carrier under paragraph (4) or the 
maintenance of a previously granted extension under paragraph 
(7)(A) and (B) shall at all times remain with the trustee.
    [(9) For purposes of determining cause under paragraph (7) 
with respect to an unexpired lease of nonresidential real 
property between the debtor that is an affected air carrier and 
an airport operator under which such debtor is the lessee of an 
airport terminal or an airport gate, the court shall consider, 
among other relevant factors, whether substantial harm will 
result to the airport operator or airline passengers as a 
result of the extension or the maintenance of a previously 
granted extension. In making the determination of substantial 
harm, the court shall consider, among other relevant factors, 
the level of actual use of the terminals or gates which are the 
subject of the lease, the public interest in actual use of such 
terminals or gates, the existence of competing demands for the 
use of such terminals or gates, the effect of the court's 
extension or termination of the period of time to assume or 
reject the lease on such debtor's ability to successfully 
reorganize under chapter 11 of this title, and whether the 
trustee of the affected air carrier is capable of continuing to 
comply with its obligations under section 365(d)(3) of this 
title.]
    [(10)] (5) The trustee shall timely perform all of the 
obligations of the debtor, except those specified in section 
365(b)(2), first arising from or after 60 days after the order 
for relief in a case under chapter 11 of this title under an 
unexpired lease of personal property (other than personal 
property leased to an individual primarily for personal, 
family, or household purposes), until such lease is assumed or 
rejected notwithstanding section 503(b)(1) of this title, 
unless the court, after notice and a hearing and based on the 
equities of the case, orders otherwise with respect to the 
obligations or timely performance thereof. This subsection 
shall not be deemed to affect the trustee's obligations under 
the provisions of subsection (b) or (f). Acceptance of any such 
performance does not constitute waiver or relinquishment of the 
lessor's rights under such lease or under this title.
          * * * * * * *
    (f)(1) Except as provided in subsection (c) of this 
section, notwithstanding a provision in an executory contract 
or unexpired lease of the debtor, or in applicable law, that 
prohibits, restricts, or conditions the assignment of such 
contract or lease, the trustee may assign such contract or 
lease under paragraph (2) of this subsection[; except that the 
trustee may not assign an unexpired lease of nonresidential 
real property under which the debtor is an affected air carrier 
that is the lessee of an aircraft terminal or aircraft gate if 
there has occurred a termination event].
          * * * * * * *

            CHAPTER 5--CREDITORS, THE DEBTOR, AND THE ESTATE

     * * * * * * *

                       SUBCHAPTER III--THE ESTATE

     * * * * * * *
[556. Contractual right to liquidate a commodity contract or forward 
          contract.]
556. Contractual right to liquidate a commodities contract or forward 
          contract.
          * * * * * * *

                   SUBCHAPTER I--CREDITORS AND CLAIMS

          * * * * * * *

Sec. 503. Allowance of administrative expenses

    (a) * * *
    (b) After notice and a hearing, there shall be allowed 
administrative expenses, other than claims allowed under 
section 502(f) of this title, including--
            (1) * * *
          * * * * * * *
            (4) reasonable compensation for professional 
        services rendered by an attorney or an accountant of an 
        entity whose expense is allowable under subparagraph 
        (A), (B), (C), (D), or (E) of paragraph (3) of this 
        subsection, based on the time, the nature, the extent, 
        and the value of such services, and the cost of 
        comparable services other than in a case under this 
        title, and reimbursement for actual, necessary expenses 
        incurred by such attorney or accountant;
          * * * * * * *

Sec. 507. Priorities

    (a) The following expenses and claims have priority in the 
following order:
            (1) * * *
          * * * * * * *
            (3) Third, allowed unsecured claims, but only to 
        the extent of $4,000 for each individual or 
        corporation, as the case may be, earned within 90 days 
        before the date of the filing of the petition or the 
        date of the cessation of the debtor's business, 
        whichever occurs first, for--
                    (A) * * *
                    (B) sales commissions earned by an 
                individual or by a corporation with only 1 
                employee, acting as an independent contractor 
                in the sale of goods or services for the debtor 
                in the ordinary course of the debtor's business 
                if, and only if, during the 12 months preceding 
                that date, at least 75 percent of the amount 
                that the individual or corporation earned by 
                acting as an independent contractor in the sale 
                of goods or services was earned from the 
                debtor[;].
          * * * * * * *
            (7) Seventh, allowed unsecured claims for debts to 
        a spouse, former spouse, or child of the debtor, for 
        alimony to, maintenance for, or support of such spouse 
        or child, in connection with a separation agreement, 
        divorce decree or other order of a court of record, 
        determination made in accordance with State or 
        territorial law by a governmental unit, or property 
        settlement agreement, but not to the extent that such 
        debt--
                    (A) is assigned to another entity, 
                voluntarily, by operation of law, or otherwise; 
                or
                    (B) includes a liability designated as 
                alimony, maintenance, or support, unless such 
                liability is actually in the nature of alimony, 
                maintenance or support.
          * * * * * * *

              SUBCHAPTER II--DEBTOR'S DUTIES AND BENEFITS

          * * * * * * *

Sec. 522. Exemptions

    (a) * * *
          * * * * * * *
    (f)(1) Notwithstanding any waiver of exemptions but subject 
to paragraph (3), the debtor may avoid the fixing of a lien on 
an interest of the debtor in property to the extent that such 
lien impairs an exemption to which the debtor would have been 
entitled under subsection (b) of this section, if such lien 
is--
                    (A) a judicial lien, other than a judicial 
                lien that secures a debt--
                            (i) * * *
                            (ii) to the extent that such debt--
                                    (I) * * *
                                    (II) [includes a liability 
                                designated as] is for a 
                                liability that is designated 
                                as, and is actually in the 
                                nature of, alimony, 
                                maintenance, or support[, 
                                unless such liability is 
                                actually in the nature of 
                                alimony, maintenance or 
                                support.]; or
          * * * * * * *
    (g) Notwithstanding sections 550 and 551 of this title, the 
debtor may exempt under subsection (b) of this section property 
that the trustee recovers under section 510(c)(2), 542, 543, 
550, 551, or 553 of this title, to the extent that the debtor 
could have exemptedsuch property under subsection (b) of this 
section if such property had not been transferred, if--
            (1)(A) * * *
          * * * * * * *
            (2) the debtor could have avoided such transfer 
        under [subsection (f)(2)] subsection (f)(1)(B) of this 
        section.
          * * * * * * *

Sec. 523. Exceptions to discharge

    (a) A discharge under section 727, 1141, 1228(a), 1228(b), 
or 1328(b) of this title does not discharge an individual 
debtor from any debt--
            (1) * * *
          * * * * * * *
            (3) neither listed nor scheduled under section 
        521(1) of this title, with the name, if known to the 
        debtor, of the creditor to whom such debt is owed, in 
        time to permit--
                    (A) if such debt is not of a kind specified 
                in paragraph (2), (4), [or (6)] (6), or (15) of 
                this subsection, timely filing of a proof of 
                claim, unless such creditor had notice or 
                actual knowledge of the case in time for such 
                timely filing; or
                    (B) if such debt is of a kind specified in 
                paragraph (2), (4), [or (6)] (6), or (15) of 
                this subsection, timely filing of a proof of 
                claim and timely request for a determination of 
                dischargeability of such debt under one of such 
                paragraphs, unless such creditor had notice or 
                actual knowledge of the case in time for such 
                timely filing and request;
          * * * * * * *
            (9) for death or personal injury caused by the 
        debtor's operation of a motor vehicle, watercraft, or 
        aircraft if such operation was unlawful because the 
        debtor was intoxicated from using alcohol, a drug, or 
        another substance;
          * * * * * * *
            (15) to a spouse, former spouse, or child of the 
        debtor and not of the kind described in paragraph (5) 
        that is incurred by the debtor in the course of a 
        divorce or separation or in connection with a 
        separation agreement, divorce decree or other order of 
        a court of record, a determination made in accordance 
        with State or territorial law by a governmental unit 
        unless--
                    (A) the debtor does not have the ability to 
                pay such debt from income or property of the 
                debtor not reasonably necessary to be expended 
                for the maintenance or support of the debtor or 
                a dependent of the debtor and, if the debtor is 
                engaged in a business, for the payment of 
                expenditures necessary for the continuation, 
                preservation, and operation of such business; 
                or
                    (B) discharging such debt would result in a 
                benefit to the debtor that outweighs the 
                detrimental consequences to a spouse, former 
                spouse, or child of the debtor;
          * * * * * * *
            (17) for a fee imposed [by a court] on a prisoner 
        by any court for the filing of a case, motion, 
        complaint, or appeal, or for other costs and expenses 
        assessed with respect to such filing, regardless of an 
        assertion of poverty by the debtor under [section 1915 
        (b) or (f)] subsection (b) or (f)(2) of section 1915 of 
        title 28 (or a similar non-Federal law), or the 
        debtor's status as a prisoner, as defined in section 
        1915(h) of title 28 (or a similar non-Federal law).
          * * * * * * *
    (e) Any institution-affiliated party of [a insured] an 
insured depository institution shall be considered to be acting 
in a fiduciary capacity with respect to the purposes of 
subsection (a)(4) or (11).

Sec. 524. Effect of discharge

    (a) A discharge in a case under this title--
            (1) * * *
          * * * * * * *
            (3) operates as an injunction against the 
        commencement or continuation of an action, the 
        employment of process, or an act, to collect or recover 
        from, or offset against, property of the debtor of the 
        kind specified in section 541(a)(2) of this title that 
        is acquired after the commencement of the case, on 
        account of any allowable community claim, except a 
        community claim that is excepted from discharge under 
        [section 523 or 1328(a)(1) of this title, or that] 
        section 523, 1228(a)(1), or 1328(a)(1) of this title, 
        or that would be so excepted, determined in accordance 
        with the provisions of sections 523(c) and 523(d) of 
        this title, in a case concerning the debtor's spouse 
        commenced on the date of the filing of the petition in 
        the case concerning the debtor, whether or not 
        discharge of the debt based on such community claim is 
        waived.
          * * * * * * *

Sec. 525. Protection against discriminatory treatment

    (a) * * *
          * * * * * * *
    (c)(1) A governmental unit that operates a student grant or 
loan program and a person engaged in a business that includes 
the making of loans guaranteed or insured under a student loan 
program may not deny a student grant, loan, loan guarantee, or 
loan insurance to a person that is or has been a debtor under 
this title or a bankrupt or debtor under the Bankruptcy Act, or 
another person with whom the debtor or bankrupt has been 
associated, because the debtor or bankrupt is or has been a 
debtor under this title or a bankrupt or debtor under the 
Bankruptcy Act, has been insolvent before the commencement of a 
case under this title or during the pendency of the case but 
before the debtor is granted or denied a discharge, or has not 
paid a debt that is dischargeable in the case under this title 
or that was discharged under the Bankruptcy Act.
    (2) In this section, ``student loan program'' means [the 
program operated under part B, D, or E of] any program operated 
under title IV of the Higher Education Act of 1965 or a similar 
program operated under State or local law.
          * * * * * * *

                       SUBCHAPTER III--THE ESTATE

Sec. 541. Property of the estate

    (a) * * *
    (b) Property of the estate does not include--
            (1) * * *
          * * * * * * *
            (4) any interest of the debtor in liquid or gaseous 
        hydrocarbons to the extent that--
                    (A) * * *
                    (B)(i) * * *
                    (ii) but for the operation of this 
                paragraph, the estate could include the 
                interest referred to in clause (i) only by 
                virtue of section 365 or 542 of this title; or
          * * * * * * *

Sec. 546. Limitations on avoiding powers

    (a) * * *
          * * * * * * *
    [(g)] (h) Notwithstanding the rights and powers of a 
trustee under sections 544(a), 545, 547, 549, and 553, if the 
court determines on a motion by the trustee made not later than 
120 days after the date of the order for relief in a case under 
chapter 11 of this title and after notice and a hearing, that a 
return is in the best interests of the estate, the debtor, with 
the consent of a creditor, may return goods shipped to the 
debtor by the creditor before the commencement of the case, and 
the creditor may offset the purchase price of such goods 
against any claim of the creditor against the debtor that arose 
before the commencement of the case.

Sec. 547. Preferences

    (a) * * *
    (b) Except as provided in [subsection (c)] subsections (c) 
and (h) of this section, the trustee may avoid any transfer of 
an interest of the debtor in property--
            (1) * * *
          * * * * * * *
    (h) If the trustee avoids under subsection (b) a security 
interest given between 90 days and 1 year before the date of 
the filing of the petition, by the debtor to an entity that is 
not an insider for the benefit of a creditor that is an 
insider, then such security interest shall be considered to be 
avoided under this section only with respect to the creditor 
that is an insider.
          * * * * * * *

Sec. 549. Postpetition transactions

    (a) * * *
          * * * * * * *
    (c) The trustee may not avoid under subsection (a) of this 
section a transfer of an interest in real property to a good 
faith purchaser without knowledge of the commencement of the 
case and for present fair equivalent value unless a copy or 
notice of the petition was filed, where a transfer of such real 
property may be recorded to perfect such transfer, before such 
transfer is so perfected that a bona fide purchaser of [such 
property] such real property, against whom applicable law 
permits such transfer to be perfected, could not acquire an 
interest that is superior to [the interest] such interest of 
such good faith purchaser. A good faith purchaser without 
knowledge of the commencement of the case and for less than 
present fair equivalent value has a lien on the property 
transferred to the extent of any present value given, unless a 
copy or notice of the petition was so filed before such 
transfer was so perfected.
          * * * * * * *

Sec. 553. Setoff

    (a) * * *
    (b)(1) Except with respect to a setoff of a kind described 
in section 362(b)(6), 362(b)(7), [362(b)(14)] 362(b)(17), 
365(h), 546(h), or 365(i)(2) of this title, if a creditor 
offsets a mutual debt owing to the debtor against a claim 
against the debtor on or within 90 days before the date of the 
filing of the petition, then the trustee may recover from such 
creditor the amount so offset to the extent that any 
insufficiency on the date of such setoff is less than the 
insufficiency on the later of--
            (A) * * *
          * * * * * * *

                         CHAPTER 7--LIQUIDATION

          * * * * * * *

 SUBCHAPTER II--COLLECTION, LIQUIDATION, AND DISTRIBUTION OF THE ESTATE

          * * * * * * *

Sec. 726. Distribution of property of the estate

    (a) * * *
          * * * * * * *
    (b) Payment on claims of a kind specified in paragraph (1), 
(2), (3), (4), (5), (6), (7), or (8) of section 507(a) of this 
title, or in paragraph (2), (3), (4), or (5) of subsection (a) 
of this section, shall be made pro rata among claims of the 
kind specified in each such particular paragraph, except that 
in a case that has been converted to this chapter under section 
[1009,] 1112, 1208, or 1307 of this title, a claim allowed 
under section 503(b) of this title incurred under this chapter 
after such conversion has priority over a claim allowed under 
section 503(b) of this title incurred under any other chapter 
of this title or under this chapter before such conversion and 
over any expenses of a custodian superseded under section 543 
of this title.
          * * * * * * *

            CHAPTER 9--ADJUSTMENT OF DEBTS OF A MUNICIPALITY

          * * * * * * *

                    SUBCHAPTER I--GENERAL PROVISIONS

Sec. 901. Applicability of other sections of this title

    (a) Sections 301, 344, 347(b), 349, 350(b), 361, 362, 
364(c), 364(d), 364(e), 364(f), 365, 366, 501, 502, 503, 504, 
506, 507(a)(1), 509, 510, 524(a)(1), 524(a)(2), 544, 545, 546, 
547, 548, 549(a), 549(c), 549(d), 550, 551, 552, 553, 557, 
1102, 1103, 1109, 1111(b), 1122, 1123(a)(1), 1123(a)(2), 
1123(a)(3), 1123(a)(4), 1123(a)(5), 1123(b), 1123(d), 1124, 
1125, 1126(a), 1126(b), 1126(c), 1126(e), 1126(f), 1126(g), 
1127(d), 1128, 1129(a)(2), 1129(a)(3), 1129(a)(6), 1129(a)(8), 
1129(a)(10), 1129(b)(1), 1129(b)(2)(A), 1129(b)(2)(B), 1142(b), 
1143, 1144, and 1145 of this title apply in a case under this 
chapter.
          * * * * * * *

                       CHAPTER 11--REORGANIZATION

          * * * * * * *

               SUBCHAPTER I--OFFICERS AND ADMINISTRATION

          * * * * * * *

Sec. 1104. Appointment of trustee or examiner

    (a) * * *
    (b)(1) Except as provided in section 1163 of this title, on 
the request of a party in interest made not later than 30 days 
after the court orders the appointment of a trustee under 
subsection (a), the United States trustee shall convene a 
meeting of creditors for the purpose of electing one 
disinterested person to serve as trustee in the case. The 
election of a trustee shall be conducted in the manner provided 
in subsections (a), (b), and (c) of section 702 of this title.
    (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.
          * * * * * * *

                 SUBCHAPTER IV--RAILROAD REORGANIZATION

          * * * * * * *

Sec. 1170. Abandonment of railroad line

    (a) * * *
          * * * * * * *
    (e)(1) In authorizing any abandonment of a railroad line 
under this section, the court shall require the rail carrier to 
provide a fair arrangement at least as protective of the 
interests of employees as that established under [section 
11347] section 11326(a) of title 49.
          * * * * * * *

Sec. 1172. Contents of plan

    (a) * * *
          * * * * * * *
    (c)(1) In approving an application under subsection (b) of 
this section, the Board shall require the rail carrier to 
provide a fair arrangement at least as protective of the 
interests of employees as that established under [section 
11347] section 11326(a) of title 49.
          * * * * * * *

CHAPTER 12--ADJUSTMENT OF DEBTS OF A FAMILY FARMER WITH REGULAR ANNUAL 
                                 INCOME

          * * * * * * *

                        SUBCHAPTER II--THE PLAN

          * * * * * * *

Sec. 1228. Discharge

    (a) As soon as practicable after completion by the debtor 
of all payments under the plan, other than payments to holders 
of allowed claims provided for under section 1222(b)(5) or 
[1222(b)(10)] 1222(b)(9) of this title, unless the court 
approves a written waiver of discharge executed by the debtor 
after the order for relief under this chapter, the court shall 
grant the debtor a discharge of all debts provided for by the 
plan allowed under section 503 of this title or disallowed 
under section 502 of this title, except any debt--
            (1) provided for under section 1222(b)(5) or 
        [1222(b)(10)] 1222(b)(9) of this title; or
            (2) of the kind specified in section 523(a) of this 
        title.
          * * * * * * *
    (c) A discharge granted under subsection (b) of this 
section discharges the debtor from all unsecured debts provided 
for by the plan or disallowed under section 502 of this title, 
except any debt--
            (1) provided for under section 1222(b)(5) or 
        [1222(b)(10)] 1222(b)(9) of this title; or
            (2) of a kind specified in section 523(a) of this 
        title.
          * * * * * * *

  CHAPTER 13--ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR INCOME

          * * * * * * *

                        SUBCHAPTER II--THE PLAN

          * * * * * * *

Sec. 1322. Contents of plan

    (a) * * *
    (b) Subject to subsections (a) and [(c)] (d) of this 
section, the plan may--
            (1) * * *
          * * * * * * *
    (e) Notwithstanding subsection (b)(2) of this section and 
sections 506(b) and 1325(a)(5) of this title, if it is proposed 
in a plan to cure a default, the amount necessary to cure the 
[default, shall] default shall be determined in accordance with 
the underlying agreement and applicable nonbankruptcy law.
          * * * * * * *

Sec. 1328. Discharge

    (a) As soon as practicable after completion by the debtor 
of all payments under the plan, unless the court approves a 
written waiver of discharge executed by the debtor after the 
order for relief under this chapter, the court shall grant the 
debtor a discharge of all debts provided for by the plan or 
disallowed under section 502 of this title, except any debt--
            [(1) provided for under section 1322(b)(5) of this 
        title;
            [(2) of the kind specified in paragraph (5), (8), 
        or (9) of section 523(a) of this title; or
            [(3) for restitution, or a criminal fine, included 
        in a sentence on the debtor's conviction of a crime.]
            (1) provided for under section 1322(b)(5) of this 
        title;
            (2) of the kind specified in paragraph (5), (8), or 
        (9) of section 523(a) of this title; or
            (3) for restitution, or a criminal fine, included 
        in a sentence on the debtor's conviction of a crime.
          * * * * * * *
                              ----------                              


              SECTION 1334 OF TITLE 28, UNITED STATES CODE

Sec. 1334. Bankruptcy cases and proceedings

    (a) * * *
          * * * * * * *
    (d) Any decision to abstain or not to abstain [made under 
this subsection] made under subsection (c) (other than a 
decision not to abstain in a proceeding described in subsection 
(c)(2)) is not reviewable by appeal or otherwise by the court 
of appeals under section 158(d), 1291, or 1292 of this title or 
by the Supreme Court of the United States under section 1254 of 
this title. [This subsection] Subsection (c) and this 
subsection shall not be construed to limit the applicability of 
the stay provided for by section 362 of title 11, United States 
Code, as such section applies to an action affecting the 
property of the estate in bankruptcy.
                              ----------                              


              SECTION 156 OF TITLE 18, UNITED STATES CODE

Sec. 156. Knowing disregard of bankruptcy law or rule

    (a) Definitions.--In this section--
            (1) the term ``bankruptcy petition preparer'' means 
        a person, other than the debtor's attorney or an 
        employee of such an attorney, who prepares for 
        compensation a document for filing[.]; and
            (2) the term ``document for filing'' means a 
        petition or any other document prepared for filing by a 
        debtor in a United States bankruptcy court or a United 
        States district court in connection with a case under 
        [this title] title 11.
          * * * * * * *

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