[House Report 108-42]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     108-42

======================================================================



 
     PROVIDING FOR CONSIDERATION OF H.R. 975, THE BANKRUPTCY ABUSE 
             PREVENTION AND CONSUMER PROTECTION ACT OF 2003

                                _______
                                

   March 18, 2003.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

   Mr. Sessions, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 147]

    The Committee on Rules, having had under consideration 
House Resolution 147, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 975, the 
Bankruptcy Abuse Prevention and Consumer Protection Act of 
2003, under a structured rule. The rule provides one hour of 
general debate, equally divided and controlled by the Chairman 
and ranking minority member of the Committee on the Judiciary. 
The rule makes in order the amendment in the nature of a 
substitute recommended by the Committee on the Judiciary now 
printed in the bill as an original bill for the purpose of 
amendment, which shall be considered as read.
    The rule makes in order only those amendments printed in 
this report, and it provides that the amendments made in order 
may be offered only in the order printed in this report, may be 
offered only by a Member designated in this report, shall be 
considered as read, shall be debatable for the time specified 
in this report equally divided and controlled by the proponent 
and an opponent, shall not be subject to amendment, and shall 
not be subject to a demand for a division of the question in 
the House or in the Committee of the Whole. The rule waives all 
points of order against the amendments printed in this report 
and provides one motion to recommit with or without 
instructions.
    The waiver of all points of order against consideration of 
the bill in the rule includes a waiver of clause 4(a) of rule 
XIII (requiring a three-day layover of the committee report), 
which is necessary because the committee report was not filed 
until Tuesday, March 18, and the bill may be considered by the 
House as early as Wednesday, March 19, 2003.

                            COMMITTEE VOTES

    Pursuant to clause 3(b) of House rule XIII the results of 
each record vote on an amendment or motion to report, together 
with the names of those voting for and against, are printed 
below:

Rules Committee record vote No. 38

    Date: March 18, 2003.
    Measure: H.R. 975--Bankruptcy Abuse Prevention and Consumer 
Protection Act of 2003.
    Motion by: Mr. Frost.
    Summary of motion: To grant an open rule.
    Results: Defeated 3 to 9.
    Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; Diaz-
Balart--Nay; Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; 
Reynolds--Nay; Frost--Yea; McGovern--Yea; Hastings (FL)--Yea; 
Dreier--Nay.

Rules Committee record vote No. 39

    Date: March 18, 2003.
    Measure: H.R. 975--Bankruptcy Abuse Prevention and Consumer 
Protection Act of 2003.
    Motion by: Mr. Hastings of Florida.
    Summary of motion: To make in order the amendment offered 
by Representatives Conyers, Slaughter, and Jackson Lee which 
allows the court to waive provisions of new cram down, luxury, 
ATM, and credit cards used to pay taxes, in any case in which 
the court determines it would impair the debtors ability to pay 
domestic support obligations.
    Results: Defeated 3 to 9.
    Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; Diaz-
Balart--Nay; Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; 
Reynolds--Nay; Frost--Yea; McGovern--Yea; Hastings (FL)--Yea; 
Dreier--Nay.

           SUMMARY OF AMENDMENTS MADE IN ORDER UNDER THE RULE

    (Summaries derived from information provided by sponsors.)
    1. Toomey/Sherman--Redrafts Title IX so that the same 
provisions in Title IX are applicable to both the bank and 
credit union federal regulators that must manage these matters 
should a problem occur. (10 minutes)
    2. Gutierrez--Provides that upon enactment, Section 1234 
applies both prospectively and to involuntary cases now pending 
in the bankruptcy courts. (10 minutes)
    3. Cannon/Delahunt--(1) Increases the monetary cap on wage 
and employee benefit claims entitled to priority under the 
Bankruptcy Code from $4,650 to $10,000 and lengthens the 
reachback period for wage claims from 90 days to 180 days; (2) 
increases the reachback period during which fraudulent 
transfers can be rescinded from one to two years and provides 
that certain compensation payments (e.g. bonuses) to a 
corporation's insiders during this two-year reachback period 
can be rescinded, under certain circumstances; and (3) requires 
the court to reinstate retiree benefits that a corporate debtor 
modified within the 180-day period preceding the bankruptcy 
filing, unless the balance of the equities justifies the 
modification. (10 minutes)
    4. Sherman--Requires corporations filing for bankruptcy to 
file their case in the district court of the district in which 
the corporation's principal place of business in the United 
States is located. For cases in which the debtor is an 
affiliate, the bankruptcy case may be filed in the district in 
which the principal place of business of the affiliate with the 
greatest assets in the United States is located. (10 minutes)
    5. Conyers--Amendment in the Nature of a Substitute. 
Modifies the means test and requires the court, in considering 
a motion to dismiss or convert a ch. 7 case, to take into 
account the debtor's actual reasonable and necessary expenses 
and income, and determine whether the debtor can repay 30% of 
unsecured debt. Protects child and spousal support obligations 
by limiting the ability of creditors to deprive debtors of the 
right to a fresh start and emerge from bankruptcy able to pay 
their obligations to their children. Modifies changes to ch. 13 
to make it more workable and increase the likelihood that 
debtors who choose ch. 13 will succeed. Makes restrictions on 
automobile cram-down more workable (1-year instead of 2-year 
lookback) and other personalty (6-month instead of 1-year 
lookback). Prevents debtors from using bankruptcy court to 
evade lawful debts for certain criminal civil rights 
violations. Provides enhanced protection for employee benefits, 
ensures fairness for employees, and provides a remedy for 
corporate wrongdoing in ch. 11. Provides bankruptcy courts with 
flexibility to protect small businesses from premature or 
unnecessary liquidation if they are able to reorganize 
successfully. Closes loophole in current law by preventing 
debtors from taking cases to courts far away from where the 
business is actually conducted. Protects the right of debtors 
to uphold contracts in bankruptcy. Provides for additional 
bankruptcy judges according to the most recent needs assessment 
by the Judicial Conference. Strikes pro-IRS amendments that 
would elevate the rights of taxing authorities over other 
creditors and debtors. Provides for enhanced disclosure on 
credit card statements to help consumers understand the cost to 
repay balances using their actual debts. Protects against 
corruption in bankruptcy proceedings by deleting amendments 
that would allow for abusive motions, allow for conflicts of 
interest on the part of investment bankers, and allow 
bankruptcy professionals to evade accountability in court for 
their wrongdoing. (40 minutes)

                    TEXT OF AMENDMENTS MADE IN ORDER

1. An Amendment To Be Offered by Representative Toomey of Pennsylvania, 
               or His Designee, Debatable for 10 Minutes

  Strike section 901 of the bill, as reported, and all that 
follows through section 905 and insert the following new 
sections:

SEC. 901. TREATMENT OF CERTAIN AGREEMENTS BY CONSERVATORS OR RECEIVERS 
                    OF INSURED DEPOSITORY INSTITUTIONS.

  (a) Definition of Qualified Financial Contract.--
          (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D) of the Federal Deposit Insurance Act (12 
        U.S.C. 1821(e)(8)(D)) is amended--
                  (A) by striking ``subsection--'' and 
                inserting ``subsection, the following 
                definitions shall apply:''; and
                  (B) in clause (i), by inserting ``, 
                resolution, or order'' after ``any similar 
                agreement that the Corporation determines by 
                regulation''.
          (2) Insured credit unions.--Section 207(c)(8)(D) of 
        the Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)) 
        is amended--
                  (A) by striking ``subsection--'' and 
                inserting ``subsection, the following 
                definitions shall apply:''; and
                  (B) in clause (i), by inserting ``, 
                resolution, or order'' after ``any similar 
                agreement that the Board determines by 
                regulation''.
  (b) Definition of Securities Contract.--
          (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D)(ii) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821(e)(8)(D)(ii)) is amended to read as 
        follows:
                          ``(ii) Securities contract.--The term 
                        `securities contract'--
                                  ``(I) means a contract for 
                                the purchase, sale, or loan of 
                                a security, a certificate of 
                                deposit, a mortgage loan, or 
                                any interest in a mortgage 
                                loan, a group or index of 
                                securities, certificates of 
                                deposit, or mortgage loans or 
                                interests therein (including 
                                any interest therein or based 
                                on the value thereof) or any 
                                option on any of the foregoing, 
                                including any option to 
                                purchase or sell any such 
                                security, certificate of 
                                deposit, mortgage loan, 
                                interest, group or index, or 
                                option, and including any 
                                repurchase or reverse 
                                repurchase transaction on any 
                                such security, certificate of 
                                deposit, mortgage loan, 
                                interest, group or index, or 
                                option;
                                  ``(II) does not include any 
                                purchase, sale, or repurchase 
                                obligation under a 
                                participation in a commercial 
                                mortgage loan unless the 
                                Corporation determines by 
                                regulation, resolution, or 
                                order to include any such 
                                agreement within the meaning of 
                                such term;
                                  ``(III) means any option 
                                entered into on a national 
                                securities exchange relating to 
                                foreign currencies;
                                  ``(IV) means the guarantee by 
                                or to any securities clearing 
                                agency of any settlement of 
                                cash, securities, certificates 
                                of deposit, mortgage loans or 
                                interests therein, group or 
                                index of securities, 
                                certificates of deposit, or 
                                mortgage loans or interests 
                                therein (including any interest 
                                therein or based on the value 
                                thereof) or option on any of 
                                the foregoing, including any 
                                option to purchase or sell any 
                                such security, certificate of 
                                deposit, mortgage loan, 
                                interest, group or index, or 
                                option;
                                  ``(V) means any margin loan;
                                  ``(VI) means any other 
                                agreement or transaction that 
                                is similar to any agreement or 
                                transaction referred to in this 
                                clause;
                                  ``(VII) means any combination 
                                of the agreements or 
                                transactions referred to in 
                                this clause;
                                  ``(VIII) means any option to 
                                enter into any agreement or 
                                transaction referred to in this 
                                clause;
                                  ``(IX) means a master 
                                agreement that provides for an 
                                agreement or transaction 
                                referred to in subclause (I), 
                                (III), (IV), (V), (VI), (VII), 
                                or (VIII), together with all 
                                supplements to any such master 
                                agreement, without regard to 
                                whether the master agreement 
                                provides for an agreement or 
                                transaction that is not a 
                                securities contract under this 
                                clause, except that the master 
                                agreement shall be considered 
                                to be a securities contract 
                                under this clause only with 
                                respect to each agreement or 
                                transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (III), (IV), 
                                (V), (VI), (VII), or (VIII); 
                                and
                                  ``(X) means any security 
                                agreement or arrangement or 
                                other credit enhancement 
                                related to any agreement or 
                                transaction referred to in this 
                                clause, including any guarantee 
                                or reimbursement obligation in 
                                connection with any agreement 
                                or transaction referred to in 
                                this clause.''.
          (2) Insured credit unions.--Section 207(c)(8)(D)(ii) 
        of the Federal Credit Union Act (12 U.S.C. 
        1787(c)(8)(D)(ii)) is amended to read as follows:
                          ``(ii) Securities contract.--The term 
                        `securities contract'--
                                  ``(I) means a contract for 
                                the purchase, sale, or loan of 
                                a security, a certificate of 
                                deposit, a mortgage loan, or 
                                any interest in a mortgage 
                                loan, a group or index of 
                                securities, certificates of 
                                deposit, or mortgage loans or 
                                interests therein (including 
                                any interest therein or based 
                                on the value thereof) or any 
                                option on any of the foregoing, 
                                including any option to 
                                purchase or sell any such 
                                security, certificate of 
                                deposit, mortgage loan, 
                                interest, group or index, or 
                                option, and including any 
                                repurchase or reverse 
                                repurchase transaction on any 
                                such security, certificate of 
                                deposit, mortgage loan, 
                                interest, group or index, or 
                                option;
                                  ``(II) does not include any 
                                purchase, sale, or repurchase 
                                obligation under a 
                                participation in a commercial 
                                mortgage loan unless the Board 
                                determines by regulation, 
                                resolution, or order to include 
                                any such agreement within the 
                                meaning of such term;
                                  ``(III) means any option 
                                entered into on a national 
                                securities exchange relating to 
                                foreign currencies;
                                  ``(IV) means the guarantee by 
                                or to any securities clearing 
                                agency of any settlement of 
                                cash, securities, certificates 
                                of deposit, mortgage loans or 
                                interests therein, group or 
                                index of securities, 
                                certificates of deposit, or 
                                mortgage loans or interests 
                                therein (including any interest 
                                therein or based on the value 
                                thereof) or option on any of 
                                the foregoing, including any 
                                option to purchase or sell any 
                                such security, certificate of 
                                deposit, mortgage loan, 
                                interest, group or index, or 
                                option;
                                  ``(V) means any margin loan;
                                  ``(VI) means any other 
                                agreement or transaction that 
                                is similar to any agreement or 
                                transaction referred to in this 
                                clause;
                                  ``(VII) means any combination 
                                of the agreements or 
                                transactions referred to in 
                                this clause;
                                  ``(VIII) means any option to 
                                enter into any agreement or 
                                transaction referred to in this 
                                clause;
                                  ``(IX) means a master 
                                agreement that provides for an 
                                agreement or transaction 
                                referred to in subclause (I), 
                                (III), (IV), (V), (VI), (VII), 
                                or (VIII), together with all 
                                supplements to any such master 
                                agreement, without regard to 
                                whether the master agreement 
                                provides for an agreement or 
                                transaction that is not a 
                                securities contract under this 
                                clause, except that the master 
                                agreement shall be considered 
                                to be a securities contract 
                                under this clause only with 
                                respect to each agreement or 
                                transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (III), (IV), 
                                (V), (VI), (VII), or (VIII); 
                                and
                                  ``(X) means any security 
                                agreement or arrangement or 
                                other credit enhancement 
                                related to any agreement or 
                                transaction referred to in this 
                                clause, including any guarantee 
                                or reimbursement obligation in 
                                connection with any agreement 
                                or transaction referred to in 
                                this clause.''.
  (c) Definition of Commodity Contract.--
          (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D)(iii) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821(e)(8)(D)(iii)) is amended to read as 
        follows:
                          ``(iii) Commodity contract.--The term 
                        `commodity contract' means--
                                  ``(I) with respect to a 
                                futures commission merchant, a 
                                contract for the purchase or 
                                sale of a commodity for future 
                                delivery on, or subject to the 
                                rules of, a contract market or 
                                board of trade;
                                  ``(II) with respect to a 
                                foreign futures commission 
                                merchant, a foreign future;
                                  ``(III) with respect to a 
                                leverage transaction merchant, 
                                a leverage transaction;
                                  ``(IV) with respect to a 
                                clearing organization, a 
                                contract for the purchase or 
                                sale of a commodity for future 
                                delivery on, or subject to the 
                                rules of, a contract market or 
                                board of trade that is cleared 
                                by such clearing organization, 
                                or commodity option traded on, 
                                or subject to the rules of, a 
                                contract market or board of 
                                trade that is cleared by such 
                                clearing organization;
                                  ``(V) with respect to a 
                                commodity options dealer, a 
                                commodity option;
                                  ``(VI) any other agreement or 
                                transaction that is similar to 
                                any agreement or transaction 
                                referred to in this clause;
                                  ``(VII) any combination of 
                                the agreements or transactions 
                                referred to in this clause;
                                  ``(VIII) any option to enter 
                                into any agreement or 
                                transaction referred to in this 
                                clause;
                                  ``(IX) a master agreement 
                                that provides for an agreement 
                                or transaction referred to in 
                                subclause (I), (II), (III), 
                                (IV), (V), (VI), (VII), or 
                                (VIII), together with all 
                                supplements to any such master 
                                agreement, without regard to 
                                whether the master agreement 
                                provides for an agreement or 
                                transaction that is not a 
                                commodity contract under this 
                                clause, except that the master 
                                agreement shall be considered 
                                to be a commodity contract 
                                under this clause only with 
                                respect to each agreement or 
                                transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (II), (III), 
                                (IV), (V), (VI), (VII), or 
                                (VIII); or
                                  ``(X) any security agreement 
                                or arrangement or other credit 
                                enhancement related to any 
                                agreement or transaction 
                                referred to in this clause, 
                                including any guarantee or 
                                reimbursement obligation in 
                                connection with any agreement 
                                or transaction referred to in 
                                this clause.''.
          (2) Insured credit unions.--Section 207(c)(8)(D)(iii) 
        of the Federal Credit Union Act (12 U.S.C. 
        1787(c)(8)(D)(iii)) is amended to read as follows:
                          ``(iii) Commodity contract.--The term 
                        `commodity contract' means--
                                  ``(I) with respect to a 
                                futures commission merchant, a 
                                contract for the purchase or 
                                sale of a commodity for future 
                                delivery on, or subject to the 
                                rules of, a contract market or 
                                board of trade;
                                  ``(II) with respect to a 
                                foreign futures commission 
                                merchant, a foreign future;
                                  ``(III) with respect to a 
                                leverage transaction merchant, 
                                a leverage transaction;
                                  ``(IV) with respect to a 
                                clearing organization, a 
                                contract for the purchase or 
                                sale of a commodity for future 
                                delivery on, or subject to the 
                                rules of, a contract market or 
                                board of trade that is cleared 
                                by such clearing organization, 
                                or commodity option traded on, 
                                or subject to the rules of, a 
                                contract market or board of 
                                trade that is cleared by such 
                                clearing organization;
                                  ``(V) with respect to a 
                                commodity options dealer, a 
                                commodity option;
                                  ``(VI) any other agreement or 
                                transaction that is similar to 
                                any agreement or transaction 
                                referred to in this clause;
                                  ``(VII) any combination of 
                                the agreements or transactions 
                                referred to in this clause;
                                  ``(VIII) any option to enter 
                                into any agreement or 
                                transaction referred to in this 
                                clause;
                                  ``(IX) a master agreement 
                                that provides for an agreement 
                                or transaction referred to in 
                                subclause (I), (II), (III), 
                                (IV), (V), (VI), (VII), or 
                                (VIII), together with all 
                                supplements to any such master 
                                agreement, without regard to 
                                whether the master agreement 
                                provides for an agreement or 
                                transaction that is not a 
                                commodity contract under this 
                                clause, except that the master 
                                agreement shall be considered 
                                to be a commodity contract 
                                under this clause only with 
                                respect to each agreement or 
                                transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (II), (III), 
                                (IV), (V), (VI), (VII), or 
                                (VIII); or
                                  ``(X) any security agreement 
                                or arrangement or other credit 
                                enhancement related to any 
                                agreement or transaction 
                                referred to in this clause, 
                                including any guarantee or 
                                reimbursement obligation in 
                                connection with any agreement 
                                or transaction referred to in 
                                this clause.''.
  (d) Definition of Forward Contract.--
          (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D)(iv) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821(e)(8)(D)(iv)) is amended to read as 
        follows:
                          ``(iv) Forward contract.--The term 
                        `forward contract' means--
                                  ``(I) a contract (other than 
                                a commodity contract) for the 
                                purchase, sale, or transfer of 
                                a commodity 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 
                                2 days after the date the 
                                contract is entered into, 
                                including, a repurchase 
                                transaction, reverse repurchase 
                                transaction, consignment, 
                                lease, swap, hedge transaction, 
                                deposit, loan, option, 
                                allocated transaction, 
                                unallocated transaction, or any 
                                other similar agreement;
                                  ``(II) any combination of 
                                agreements or transactions 
                                referred to in subclauses (I) 
                                and (III);
                                  ``(III) any option to enter 
                                into any agreement or 
                                transaction referred to in 
                                subclause (I) or (II);
                                  ``(IV) a master agreement 
                                that provides for an agreement 
                                or transaction referred to in 
                                subclauses (I), (II), or (III), 
                                together with all supplements 
                                to any such master agreement, 
                                without regard to whether the 
                                master agreement provides for 
                                an agreement or transaction 
                                that is not a forward contract 
                                under this clause, except that 
                                the master agreement shall be 
                                considered to be a forward 
                                contract under this clause only 
                                with respect to each agreement 
                                or transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (II), or 
                                (III); or
                                  ``(V) any security agreement 
                                or arrangement or other credit 
                                enhancement related to any 
                                agreement or transaction 
                                referred to in subclause (I), 
                                (II), (III), or (IV), including 
                                any guarantee or reimbursement 
                                obligation in connection with 
                                any agreement or transaction 
                                referred to in any such 
                                subclause.''.
          (2) Insured credit unions.--Section 207(c)(8)(D)(iv) 
        of the Federal Credit Union Act (12 U.S.C. 
        1787(c)(8)(D)(iv)) is amended to read as follows:
                          ``(iv) Forward contract.--The term 
                        `forward contract' means--
                                  ``(I) a contract (other than 
                                a commodity contract) for the 
                                purchase, sale, or transfer of 
                                a commodity 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 
                                2 days after the date the 
                                contract is entered into, 
                                including, a repurchase 
                                transaction, reverse repurchase 
                                transaction, consignment, 
                                lease, swap, hedge transaction, 
                                deposit, loan, option, 
                                allocated transaction, 
                                unallocated transaction, or any 
                                other similar agreement;
                                  ``(II) any combination of 
                                agreements or transactions 
                                referred to in subclauses (I) 
                                and (III);
                                  ``(III) any option to enter 
                                into any agreement or 
                                transaction referred to in 
                                subclause (I) or (II);
                                  ``(IV) a master agreement 
                                that provides for an agreement 
                                or transaction referred to in 
                                subclauses (I), (II), or (III), 
                                together with all supplements 
                                to any such master agreement, 
                                without regard to whether the 
                                master agreement provides for 
                                an agreement or transaction 
                                that is not a forward contract 
                                under this clause, except that 
                                the master agreement shall be 
                                considered to be a forward 
                                contract under this clause only 
                                with respect to each agreement 
                                or transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (II), or 
                                (III); or
                                  ``(V) any security agreement 
                                or arrangement or other credit 
                                enhancement related to any 
                                agreement or transaction 
                                referred to in subclause (I), 
                                (II), (III), or (IV), including 
                                any guarantee or reimbursement 
                                obligation in connection with 
                                any agreement or transaction 
                                referred to in any such 
                                subclause.''.
  (e) Definition of Repurchase Agreement.--
          (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D)(v) of the Federal Deposit Insurance Act (12 
        U.S.C. 1821(e)(8)(D)(v)) is amended to read as follows:
                          ``(v) Repurchase agreement.--The term 
                        `repurchase agreement' (which 
                        definition also applies to a reverse 
                        repurchase agreement)--
                                  ``(I) means an agreement, 
                                including related terms, which 
                                provides for the transfer of 
                                one or more certificates of 
                                deposit, mortgage-related 
                                securities (as such term is 
                                defined in the Securities 
                                Exchange Act of 1934), mortgage 
                                loans, interests in mortgage-
                                related securities or mortgage 
                                loans, eligible bankers' 
                                acceptances, qualified foreign 
                                government securities or 
                                securities that are direct 
                                obligations of, or that are 
                                fully guaranteed 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, securities, 
                                mortgage loans, or interests 
                                with a simultaneous agreement 
                                by such transferee to transfer 
                                to the transferor thereof 
                                certificates of deposit, 
                                eligible bankers' acceptances, 
                                securities, mortgage loans, or 
                                interests as described above, 
                                at a date certain not later 
                                than 1 year after such 
                                transfers or on demand, against 
                                the transfer of funds, or any 
                                other similar agreement;
                                  ``(II) does not include any 
                                repurchase obligation under a 
                                participation in a commercial 
                                mortgage loan unless the 
                                Corporation determines by 
                                regulation, resolution, or 
                                order to include any such 
                                participation within the 
                                meaning of such term;
                                  ``(III) means any combination 
                                of agreements or transactions 
                                referred to in subclauses (I) 
                                and (IV);
                                  ``(IV) means any option to 
                                enter into any agreement or 
                                transaction referred to in 
                                subclause (I) or (III);
                                  ``(V) means a master 
                                agreement that provides for an 
                                agreement or transaction 
                                referred to in subclause (I), 
                                (III), or (IV), together with 
                                all supplements to any such 
                                master agreement, without 
                                regard to whether the master 
                                agreement provides for an 
                                agreement or transaction that 
                                is not a repurchase agreement 
                                under this clause, except that 
                                the master agreement shall be 
                                considered to be a repurchase 
                                agreement under this subclause 
                                only with respect to each 
                                agreement or transaction under 
                                the master agreement that is 
                                referred to in subclause (I), 
                                (III), or (IV); and
                                  ``(VI) means any security 
                                agreement or arrangement or 
                                other credit enhancement 
                                related to any agreement or 
                                transaction referred to in 
                                subclause (I), (III), (IV), or 
                                (V), including any guarantee or 
                                reimbursement obligation in 
                                connection with any agreement 
                                or transaction referred to in 
                                any such subclause.
                        For purposes of this clause, the term 
                        `qualified foreign government security' 
                        means a security that is a direct 
                        obligation of, or that is fully 
                        guaranteed by, the central government 
                        of a member of the Organization for 
                        Economic Cooperation and Development 
                        (as determined by regulation or order 
                        adopted by the appropriate Federal 
                        banking authority).''.
          (2) Insured credit unions.--Section 207(c)(8)(D)(v) 
        of the Federal Credit Union Act (12 U.S.C. 
        1787(c)(8)(D)(v)) is amended to read as follows:
                          ``(v) Repurchase agreement.--The term 
                        `repurchase agreement' (which 
                        definition also applies to a reverse 
                        repurchase agreement)--
                                  ``(I) means an agreement, 
                                including related terms, which 
                                provides for the transfer of 
                                one or more certificates of 
                                deposit, mortgage-related 
                                securities (as such term is 
                                defined in the Securities 
                                Exchange Act of 1934), mortgage 
                                loans, interests in mortgage-
                                related securities or mortgage 
                                loans, eligible bankers' 
                                acceptances, qualified foreign 
                                government securities or 
                                securities that are direct 
                                obligations of, or that are 
                                fully guaranteed 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, securities, 
                                mortgage loans, or interests 
                                with a simultaneous agreement 
                                by such transferee to transfer 
                                to the transferor thereof 
                                certificates of deposit, 
                                eligible bankers' acceptances, 
                                securities, mortgage loans, or 
                                interests as described above, 
                                at a date certain not later 
                                than 1 year after such 
                                transfers or on demand, against 
                                the transfer of funds, or any 
                                other similar agreement;
                                  ``(II) does not include any 
                                repurchase obligation under a 
                                participation in a commercial 
                                mortgage loan unless the Board 
                                determines by regulation, 
                                resolution, or order to include 
                                any such participation within 
                                the meaning of such term;
                                  ``(III) means any combination 
                                of agreements or transactions 
                                referred to in subclauses (I) 
                                and (IV);
                                  ``(IV) means any option to 
                                enter into any agreement or 
                                transaction referred to in 
                                subclause (I) or (III);
                                  ``(V) means a master 
                                agreement that provides for an 
                                agreement or transaction 
                                referred to in subclause (I), 
                                (III), or (IV), together with 
                                all supplements to any such 
                                master agreement, without 
                                regard to whether the master 
                                agreement provides for an 
                                agreement or transaction that 
                                is not a repurchase agreement 
                                under this clause, except that 
                                the master agreement shall be 
                                considered to be a repurchase 
                                agreement under this subclause 
                                only with respect to each 
                                agreement or transaction under 
                                the master agreement that is 
                                referred to in subclause (I), 
                                (III), or (IV); and
                                  ``(VI) means any security 
                                agreement or arrangement or 
                                other credit enhancement 
                                related to any agreement or 
                                transaction referred to in 
                                subclause (I), (III), (IV), or 
                                (V), including any guarantee or 
                                reimbursement obligation in 
                                connection with any agreement 
                                or transaction referred to in 
                                any such subclause.
                        For purposes of this clause, the term 
                        `qualified foreign government security' 
                        means a security that is a direct 
                        obligation of, or that is fully 
                        guaranteed by, the central government 
                        of a member of the Organization for 
                        Economic Cooperation and Development 
                        (as determined by regulation or order 
                        adopted by the appropriate Federal 
                        banking authority).''.
  (f) Definition of Swap Agreement.--
          (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D)(vi) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821(e)(8)(D)(vi)) is amended to read as 
        follows:
                          ``(vi) Swap agreement.--The term 
                        `swap agreement' means--
                                  ``(I) any agreement, 
                                including the terms and 
                                conditions incorporated by 
                                reference in any such 
                                agreement, which is an interest 
                                rate swap, option, future, or 
                                forward agreement, including a 
                                rate floor, rate cap, rate 
                                collar, cross-currency rate 
                                swap, and basis swap; a spot, 
                                same day-tomorrow, tomorrow-
                                next, forward, or other foreign 
                                exchange or precious metals 
                                agreement; a currency swap, 
                                option, future, or forward 
                                agreement; an equity index or 
                                equity swap, option, future, or 
                                forward agreement; a debt index 
                                or debt swap, option, future, 
                                or forward agreement; a total 
                                return, credit spread or credit 
                                swap, option, future, or 
                                forward agreement; a commodity 
                                index or commodity swap, 
                                option, future, or forward 
                                agreement; or a weather swap, 
                                weather derivative, or weather 
                                option;
                                  ``(II) any agreement or 
                                transaction that is similar to 
                                any other agreement or 
                                transaction referred to in this 
                                clause and that is of a type 
                                that has been, is presently, or 
                                in the future becomes, the 
                                subject of recurrent dealings 
                                in the swap markets (including 
                                terms and conditions 
                                incorporated by reference in 
                                such agreement) and that is a 
                                forward, swap, future, or 
                                option on one or more rates, 
                                currencies, commodities, equity 
                                securities or other equity 
                                instruments, debt securities or 
                                other debt instruments, 
                                quantitative measures 
                                associated with an occurrence, 
                                extent of an occurrence, or 
                                contingency associated with a 
                                financial, commercial, or 
                                economic consequence, or 
                                economic or financial indices 
                                or measures of economic or 
                                financial risk or value;
                                  ``(III) any combination of 
                                agreements or transactions 
                                referred to in this clause;
                                  ``(IV) any option to enter 
                                into any agreement or 
                                transaction referred to in this 
                                clause;
                                  ``(V) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in 
                                subclause (I), (II), (III), or 
                                (IV), together with all 
                                supplements to any such master 
                                agreement, without regard to 
                                whether the master agreement 
                                contains an agreement or 
                                transaction that is not a swap 
                                agreement under this clause, 
                                except that the master 
                                agreement shall be considered 
                                to be a swap agreement under 
                                this clause only with respect 
                                to each agreement or 
                                transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (II), (III), 
                                or (IV); and
                                  ``(VI) any security agreement 
                                or arrangement or other credit 
                                enhancement related to any 
                                agreements or transactions 
                                referred to in subclause (I), 
                                (II), (III), (IV), or (V), 
                                including any guarantee or 
                                reimbursement obligation in 
                                connection with any agreement 
                                or transaction referred to in 
                                any such subclause.
                        Such term is applicable for purposes of 
                        this subsection only and shall not be 
                        construed or applied so as to challenge 
                        or affect the characterization, 
                        definition, or treatment of any swap 
                        agreement under any other statute, 
                        regulation, or rule, including the 
                        Securities Act of 1933, the Securities 
                        Exchange Act of 1934, the Public 
                        Utility Holding Company Act of 1935, 
                        the Trust Indenture Act of 1939, the 
                        Investment Company Act of 1940, the 
                        Investment Advisers Act of 1940, the 
                        Securities Investor Protection Act of 
                        1970, the Commodity Exchange Act, the 
                        Gramm-Leach-Bliley Act, and the Legal 
                        Certainty for Bank Products Act of 
                        2000.''.
          (2) Insured credit unions.--Section 207(c)(8)(D) of 
        the Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)) 
        is amended by adding at the end the following new 
        clause:
                          ``(vi) Swap agreement.--The term 
                        `swap agreement' means--
                                  ``(I) any agreement, 
                                including the terms and 
                                conditions incorporated by 
                                reference in any such 
                                agreement, which is an interest 
                                rate swap, option, future, or 
                                forward agreement, including a 
                                rate floor, rate cap, rate 
                                collar, cross-currency rate 
                                swap, and basis swap; a spot, 
                                same day-tomorrow, tomorrow-
                                next, forward, or other foreign 
                                exchange or precious metals 
                                agreement; a currency swap, 
                                option, future, or forward 
                                agreement; an equity index or 
                                equity swap, option, future, or 
                                forward agreement; a debt index 
                                or debt swap, option, future, 
                                or forward agreement; a total 
                                return, credit spread or credit 
                                swap, option, future, or 
                                forward agreement; a commodity 
                                index or commodity swap, 
                                option, future, or forward 
                                agreement; or a weather swap, 
                                weather derivative, or weather 
                                option;
                                  ``(II) any agreement or 
                                transaction that is similar to 
                                any other agreement or 
                                transaction referred to in this 
                                clause and that is of a type 
                                that has been, is presently, or 
                                in the future becomes, the 
                                subject of recurrent dealings 
                                in the swap markets (including 
                                terms and conditions 
                                incorporated by reference in 
                                such agreement) and that is a 
                                forward, swap, future, or 
                                option on one or more rates, 
                                currencies, commodities, equity 
                                securities or other equity 
                                instruments, debt securities or 
                                other debt instruments, 
                                quantitative measures 
                                associated with an occurrence, 
                                extent of an occurrence, or 
                                contingency associated with a 
                                financial, commercial, or 
                                economic consequence, or 
                                economic or financial indices 
                                or measures of economic or 
                                financial risk or value;
                                  ``(III) any combination of 
                                agreements or transactions 
                                referred to in this clause;
                                  ``(IV) any option to enter 
                                into any agreement or 
                                transaction referred to in this 
                                clause;
                                  ``(V) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in 
                                subclause (I), (II), (III), or 
                                (IV), together with all 
                                supplements to any such master 
                                agreement, without regard to 
                                whether the master agreement 
                                contains an agreement or 
                                transaction that is not a swap 
                                agreement under this clause, 
                                except that the master 
                                agreement shall be considered 
                                to be a swap agreement under 
                                this clause only with respect 
                                to each agreement or 
                                transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (II), (III), 
                                or (IV); and
                                  ``(VI) any security agreement 
                                or arrangement or other credit 
                                enhancement related to any 
                                agreements or transactions 
                                referred to in subclause (I), 
                                (II), (III), (IV), or (V), 
                                including any guarantee or 
                                reimbursement obligation in 
                                connection with any agreement 
                                or transaction referred to in 
                                any such subclause.
                        Such term is applicable for purposes of 
                        this subsection only and shall not be 
                        construed or applied so as to challenge 
                        or affect the characterization, 
                        definition, or treatment of any swap 
                        agreement under any other statute, 
                        regulation, or rule, including the 
                        Securities Act of 1933, the Securities 
                        Exchange Act of 1934, the Public 
                        Utility Holding Company Act of 1935, 
                        the Trust Indenture Act of 1939, the 
                        Investment Company Act of 1940, the 
                        Investment Advisers Act of 1940, the 
                        Securities Investor Protection Act of 
                        1970, the Commodity Exchange Act, the 
                        Gramm-Leach-Bliley Act, and the Legal 
                        Certainty for Bank Products Act of 
                        2000.''.
  (g) Definition of Transfer.--
          (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(D)(viii) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821(e)(8)(D)(viii)) is amended to read as 
        follows:
                          ``(viii) Transfer.--The term 
                        `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 
                        depository institution's equity of 
                        redemption.''.
          (2) Insured credit unions.--Section 207(c)(8)(D) of 
        the Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)) 
        (as amended by subsection (f) of this section) is 
        amended by adding at the end the following new clause:
                          ``(viii) Transfer.--The term 
                        `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 
                        depository institution's equity of 
                        redemption.''.
  (h) Treatment of Qualified Financial Contracts.--
          (1) FDIC-insured depository institutions.--Section 
        11(e)(8) of the Federal Deposit Insurance Act (12 
        U.S.C. 1821(e)(8)) is amended--
                  (A) in subparagraph (A)--
                          (i) by striking ``paragraph (10)'' 
                        and inserting ``paragraphs (9) and 
                        (10)'';
                          (ii) in clause (i), by striking ``to 
                        cause the termination or liquidation'' 
                        and inserting ``such person has to 
                        cause the termination, liquidation, or 
                        acceleration''; and
                          (iii) by striking clause (ii) and 
                        inserting the following new clause:
                          ``(ii) any right under any security 
                        agreement or arrangement or other 
                        credit enhancement related to one or 
                        more qualified financial contracts 
                        described in clause (i);''; and
                  (B) in subparagraph (E), by striking clause 
                (ii) and inserting the following:
                          ``(ii) any right under any security 
                        agreement or arrangement or other 
                        credit enhancement related to one or 
                        more qualified financial contracts 
                        described in clause (i);''.
          (2) Insured credit unions.--Section 207(c)(8) of the 
        Federal Credit Union Act (12 U.S.C. 1787(c)(8)) is 
        amended--
                  (A) in subparagraph (A)--
                          (i) by striking ``paragraph (12)'' 
                        and inserting ``paragraphs (9) and 
                        (10)'';
                          (ii) in clause (i), by striking ``to 
                        cause the termination or liquidation'' 
                        and inserting ``such person has to 
                        cause the termination, liquidation, or 
                        acceleration''; and
                          (iii) by striking clause (ii) and 
                        inserting the following new clause:
                          ``(ii) any right under any security 
                        agreement or arrangement or other 
                        credit enhancement related to 1 or more 
                        qualified financial contracts described 
                        in clause (i);''; and
                  (B) in subparagraph (E), by striking clause 
                (ii) and inserting the following new clause:
                          ``(ii) any right under any security 
                        agreement or arrangement or other 
                        credit enhancement related to 1 or more 
                        qualified financial contracts described 
                        in clause (i);''.
  (i) Avoidance of Transfers.--
          (1) FDIC-insured depository institutions.--Section 
        11(e)(8)(C)(i) of the Federal Deposit Insurance Act (12 
        U.S.C. 1821(e)(8)(C)(i)) is amended by inserting 
        ``section 5242 of the Revised Statutes of the United 
        States or any other Federal or State law relating to 
        the avoidance of preferential or fraudulent 
        transfers,'' before ``the Corporation''.
          (2) Insured credit unions.--Section 207(c)(8)(C)(i) 
        of the Federal Credit Union Act (12 U.S.C. 
        1787(c)(8)(C)(i)) is amended by inserting ``section 
        5242 of the Revised Statutes of the United States or 
        any other Federal or State law relating to the 
        avoidance of preferential or fraudulent transfers,'' 
        before ``the Board''.

SEC. 902. AUTHORITY OF THE FDIC AND NCUAB WITH RESPECT TO FAILED AND 
                    FAILING INSTITUTIONS.

  (a) Federal Deposit Insurance Corporation.--
          (1) In general.--Section 11(e)(8) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1821(e)(8)) is 
        amended--
                  (A) in subparagraph (E), by striking ``other 
                than paragraph (12) of this subsection, 
                subsection (d)(9)'' and inserting ``other than 
                subsections (d)(9) and (e)(10)''; and
                  (B) by adding at the end the following new 
                subparagraphs:
                  ``(F) Clarification.--No provision of law 
                shall be construed as limiting the right or 
                power of the Corporation, or authorizing any 
                court or agency to limit or delay, in any 
                manner, the right or power of the Corporation 
                to transfer any qualified financial contract in 
                accordance with paragraphs (9) and (10) of this 
                subsection or to disaffirm or repudiate any 
                such contract in accordance with subsection 
                (e)(1) of this section.
                  ``(G) Walkaway clauses not effective.--
                          ``(i) In general.--Notwithstanding 
                        the provisions of subparagraphs (A) and 
                        (E), and sections 403 and 404 of the 
                        Federal Deposit Insurance Corporation 
                        Improvement Act of 1991, no walkaway 
                        clause shall be enforceable in a 
                        qualified financial contract of an 
                        insured depository institution in 
                        default.
                          ``(ii) Walkaway clause defined.--For 
                        purposes of this subparagraph, the term 
                        `walkaway clause' means a provision in 
                        a qualified financial contract that, 
                        after calculation of a value of a 
                        party's position or an amount due to or 
                        from 1 of the parties in accordance 
                        with its terms upon termination, 
                        liquidation, or acceleration of the 
                        qualified financial contract, either 
                        does not create a payment obligation of 
                        a party or extinguishes a payment 
                        obligation of a party in whole or in 
                        part solely because of such party's 
                        status as a nondefaulting party.''.
          (2) Technical and conforming amendment.--Section 
        11(e)(12)(A) of the Federal Deposit Insurance Act (12 
        U.S.C. 1821(e)(12)(A)) is amended by inserting ``or the 
        exercise of rights or powers by'' after ``the 
        appointment of''.
  (b) National Credit Union Administration Board.--
          (1) In general.--Section 207(c)(8) of the Federal 
        Credit Union Act (12 U.S.C. 1787(c)(8)) is amended--
                  (A) in subparagraph (E) (as amended by 
                section 901(h)), by striking ``other than 
                paragraph (12) of this subsection, subsection 
                (b)(9)'' and inserting ``other than subsections 
                (b)(9) and (c)(10)''; and
                  (B) by adding at the end the following new 
                subparagraphs:
                  ``(F) Clarification.--No provision of law 
                shall be construed as limiting the right or 
                power of the Board, or authorizing any court or 
                agency to limit or delay, in any manner, the 
                right or power of the Board to transfer any 
                qualified financial contract in accordance with 
                paragraphs (9) and (10) of this subsection or 
                to disaffirm or repudiate any such contract in 
                accordance with subsection (c)(1) of this 
                section.
                  ``(G) Walkaway clauses not effective.--
                          ``(i) In general.--Notwithstanding 
                        the provisions of subparagraphs (A) and 
                        (E), and sections 403 and 404 of the 
                        Federal Deposit Insurance Corporation 
                        Improvement Act of 1991, no walkaway 
                        clause shall be enforceable in a 
                        qualified financial contract of an 
                        insured credit union in default.
                          ``(ii) Walkaway clause defined.--For 
                        purposes of this subparagraph, the term 
                        `walkaway clause' means a provision in 
                        a qualified financial contract that, 
                        after calculation of a value of a 
                        party's position or an amount due to or 
                        from 1 of the parties in accordance 
                        with its terms upon termination, 
                        liquidation, or acceleration of the 
                        qualified financial contract, either 
                        does not create a payment obligation of 
                        a party or extinguishes a payment 
                        obligation of a party in whole or in 
                        part solely because of such party's 
                        status as a nondefaulting party.''.
          (2) Technical and conforming amendment.--Section 
        207(c)(12)(A) of the Federal Credit Union Act (12 
        U.S.C. 1787(c)(12)(A)) is amended by inserting ``or the 
        exercise of rights or powers by'' after ``the 
        appointment of''.

SEC. 903. AMENDMENTS RELATING TO TRANSFERS OF QUALIFIED FINANCIAL 
                    CONTRACTS.

  (a) FDIC-Insured Depository Institutions.--
          (1) Transfers of Qualified Financial Contracts to 
        Financial Institutions.--Section 11(e)(9) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1821(e)(9)) is 
        amended to read as follows:
          ``(9) Transfer of qualified financial contracts.--
                  ``(A) In general.--In making any transfer of 
                assets or liabilities of a depository 
                institution in default which includes any 
                qualified financial contract, the conservator 
                or receiver for such depository institution 
                shall either--
                          ``(i) transfer to one financial 
                        institution, other than a financial 
                        institution for which a conservator, 
                        receiver, trustee in bankruptcy, or 
                        other legal custodian has been 
                        appointed or which is otherwise the 
                        subject of a bankruptcy or insolvency 
                        proceeding--
                                  ``(I) all qualified financial 
                                contracts between any person or 
                                any affiliate of such person 
                                and the depository institution 
                                in default;
                                  ``(II) all claims of such 
                                person or any affiliate of such 
                                person against such depository 
                                institution under any such 
                                contract (other than any claim 
                                which, under the terms of any 
                                such contract, is subordinated 
                                to the claims of general 
                                unsecured creditors of such 
                                institution);
                                  ``(III) all claims of such 
                                depository institution against 
                                such person or any affiliate of 
                                such person under any such 
                                contract; and
                                  ``(IV) all property securing 
                                or any other credit enhancement 
                                for any contract described in 
                                subclause (I) or any claim 
                                described in subclause (II) or 
                                (III) under any such contract; 
                                or
                          ``(ii) transfer none of the qualified 
                        financial contracts, claims, property 
                        or other credit enhancement referred to 
                        in clause (i) (with respect to such 
                        person and any affiliate of such 
                        person).
                  ``(B) Transfer to foreign bank, foreign 
                financial institution, or branch or agency of a 
                foreign bank or financial institution.--In 
                transferring any qualified financial contracts 
                and related claims and property under 
                subparagraph (A)(i), the conservator or 
                receiver for the depository institution shall 
                not make such transfer to a foreign bank, 
                financial institution organized under the laws 
                of a foreign country, or a branch or agency of 
                a foreign bank or financial institution unless, 
                under the law applicable to such bank, 
                financial institution, branch or agency, to the 
                qualified financial contracts, and to any 
                netting contract, any security agreement or 
                arrangement or other credit enhancement related 
                to one or more qualified financial contracts, 
                the contractual rights of the parties to such 
                qualified financial contracts, netting 
                contracts, security agreements or arrangements, 
                or other credit enhancements are enforceable 
                substantially to the same extent as permitted 
                under this section.
                  ``(C) Transfer of contracts subject to the 
                rules of a clearing organization.--In the event 
                that a conservator or receiver transfers any 
                qualified financial contract and related 
                claims, property, and credit enhancements 
                pursuant to subparagraph (A)(i) and such 
                contract is cleared by or subject to the rules 
                of a clearing organization, the clearing 
                organization shall not be required to accept 
                the transferee as a member by virtue of the 
                transfer.
                  ``(D) Definitions.--For purposes of this 
                paragraph, the term `financial institution' 
                means a broker or dealer, a depository 
                institution, a futures commission merchant, or 
                any other institution, as determined by the 
                Corporation by regulation to be a financial 
                institution, and the term `clearing 
                organization' has the same meaning as in 
                section 402 of the Federal Deposit Insurance 
                Corporation Improvement Act of 1991.''.
          (2) Notice to qualified financial contract 
        counterparties.--Section 11(e)(10)(A) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1821(e)(10)(A)) is 
        amended in the material immediately following clause 
        (ii) by striking ``the conservator'' and all that 
        follows through the period and inserting the following: 
        ``the conservator or receiver shall notify any person 
        who is a party to any such contract of such transfer by 
        5:00 p.m. (eastern time) on the business day following 
        the date of the appointment of the receiver in the case 
        of a receivership, or the business day following such 
        transfer in the case of a conservatorship.''.
          (3) Rights against receiver and conservator and 
        treatment of bridge banks.--Section 11(e)(10) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1821(e)(10)) 
        is amended--
                  (A) by redesignating subparagraph (B) as 
                subparagraph (D); and
                  (B) by inserting after subparagraph (A) the 
                following new subparagraphs:
                  ``(B) Certain rights not enforceable.--
                          ``(i) Receivership.--A person who is 
                        a party to a qualified financial 
                        contract with an insured depository 
                        institution may not exercise any right 
                        that such person has to terminate, 
                        liquidate, or net such contract under 
                        paragraph (8)(A) of this subsection or 
                        section 403 or 404 of the Federal 
                        Deposit Insurance Corporation 
                        Improvement Act of 1991, solely by 
                        reason of or incidental to the 
                        appointment of a receiver for the 
                        depository institution (or the 
                        insolvency or financial condition of 
                        the depository institution for which 
                        the receiver has been appointed)--
                                  ``(I) until 5:00 p.m. 
                                (eastern time) on the business 
                                day following the date of the 
                                appointment of the receiver; or
                                  ``(II) after the person has 
                                received notice that the 
                                contract has been transferred 
                                pursuant to paragraph (9)(A).
                          ``(ii) Conservatorship.--A person who 
                        is a party to a qualified financial 
                        contract with an insured depository 
                        institution may not exercise any right 
                        that such person has to terminate, 
                        liquidate, or net such contract under 
                        paragraph (8)(E) of this subsection or 
                        section 403 or 404 of the Federal 
                        Deposit Insurance Corporation 
                        Improvement Act of 1991, solely by 
                        reason of or incidental to the 
                        appointment of a conservator for the 
                        depository institution (or the 
                        insolvency or financial condition of 
                        the depository institution for which 
                        the conservator has been appointed).
                          ``(iii) Notice.--For purposes of this 
                        paragraph, the Corporation as receiver 
                        or conservator of an insured depository 
                        institution shall be deemed to have 
                        notified a person who is a party to a 
                        qualified financial contract with such 
                        depository institution if the 
                        Corporation has taken steps reasonably 
                        calculated to provide notice to such 
                        person by the time specified in 
                        subparagraph (A).
                  ``(C) Treatment of bridge banks.--The 
                following institutions shall not be considered 
                to be a financial institution for which a 
                conservator, receiver, trustee in bankruptcy, 
                or other legal custodian has been appointed or 
                which is otherwise the subject of a bankruptcy 
                or insolvency proceeding for purposes of 
                paragraph (9):
                          ``(i) A bridge bank.
                          ``(ii) A depository institution 
                        organized by the Corporation, for which 
                        a conservator is appointed either--
                                  ``(I) immediately upon the 
                                organization of the 
                                institution; or
                                  ``(II) at the time of a 
                                purchase and assumption 
                                transaction between the 
                                depository institution and the 
                                Corporation as receiver for a 
                                depository institution in 
                                default.''.
  (b) Insured Credit Unions.--
          (1) Transfers of qualified financial contracts to 
        financial institutions.--Section 207(c)(9) of the 
        Federal Credit Union Act (12 U.S.C. 1787(c)(9)) is 
        amended to read as follows:
          ``(9) Transfer of qualified financial contracts.--
                  ``(A) In general.--In making any transfer of 
                assets or liabilities of a credit union in 
                default which includes any qualified financial 
                contract, the conservator or liquidating agent 
                for such credit union shall either--
                          ``(i) transfer to 1 financial 
                        institution, other than a financial 
                        institution for which a conservator, 
                        receiver, trustee in bankruptcy, or 
                        other legal custodian has been 
                        appointed or which is otherwise the 
                        subject of a bankruptcy or insolvency 
                        proceeding--
                                  ``(I) all qualified financial 
                                contracts between any person or 
                                any affiliate of such person 
                                and the credit union in 
                                default;
                                  ``(II) all claims of such 
                                person or any affiliate of such 
                                person against such credit 
                                union under any such contract 
                                (other than any claim which, 
                                under the terms of any such 
                                contract, is subordinated to 
                                the claims of general unsecured 
                                creditors of such credit 
                                union);
                                  ``(III) all claims of such 
                                credit union against such 
                                person or any affiliate of such 
                                person under any such contract; 
                                and
                                  ``(IV) all property securing 
                                or any other credit enhancement 
                                for any contract described in 
                                subclause (I) or any claim 
                                described in subclause (II) or 
                                (III) under any such contract; 
                                or
                          ``(ii) transfer none of the qualified 
                        financial contracts, claims, property 
                        or other credit enhancement referred to 
                        in clause (i) (with respect to such 
                        person and any affiliate of such 
                        person).
                  ``(B) Transfer to foreign bank, foreign 
                financial institution, or branch or agency of a 
                foreign bank or financial institution.--In 
                transferring any qualified financial contracts 
                and related claims and property under 
                subparagraph (A)(i), the conservator or 
                liquidating agent for the credit union shall 
                not make such transfer to a foreign bank, 
                financial institution organized under the laws 
                of a foreign country, or a branch or agency of 
                a foreign bank or financial institution unless, 
                under the law applicable to such bank, 
                financial institution, branch or agency, to the 
                qualified financial contracts, and to any 
                netting contract, any security agreement or 
                arrangement or other credit enhancement related 
                to 1 or more qualified financial contracts, the 
                contractual rights of the parties to such 
                qualified financial contracts, netting 
                contracts, security agreements or arrangements, 
                or other credit enhancements are enforceable 
                substantially to the same extent as permitted 
                under this section.
                  ``(C) Transfer of contracts subject to the 
                rules of a clearing organization.--In the event 
                that a conservator or liquidating agent 
                transfers any qualified financial contract and 
                related claims, property, and credit 
                enhancements pursuant to subparagraph (A)(i) 
                and such contract is cleared by or subject to 
                the rules of a clearing organization, the 
                clearing organization shall not be required to 
                accept the transferee as a member by virtue of 
                the transfer.
                  ``(D) Definitions.--For purposes of this 
                paragraph--
                          ``(i) the term `financial 
                        institution' means a broker or dealer, 
                        a depository institution, a futures 
                        commission merchant, a credit union, or 
                        any other institution, as determined by 
                        the Board by regulation to be a 
                        financial institution; and
                          ``(ii) the term `clearing 
                        organization' has the same meaning as 
                        in section 402 of the Federal Deposit 
                        Insurance Corporation Improvement Act 
                        of 1991.''.
          (2) Notice to qualified financial contract 
        counterparties.--Section 207(c)(10)(A) of the Federal 
        Credit Union Act (12 U.S.C. 1787(c)(10)(A)) is amended 
        in the material immediately following clause (ii) by 
        striking ``the conservator'' and all that follows 
        through the period and inserting the following: ``the 
        conservator or liquidating agent shall notify any 
        person who is a party to any such contract of such 
        transfer by 5:00 p.m. (eastern time) on the business 
        day following the date of the appointment of the 
        liquidating agent in the case of a liquidation, or the 
        business day following such transfer in the case of a 
        conservatorship.''.
          (3) Rights against liquidating agent and conservator 
        and treatment of bridge banks.--Section 207(c)(10) of 
        the Federal Credit Union Act (12 U.S.C. 1787(c)(10)) is 
        amended--
                  (A) by redesignating subparagraph (B) as 
                subparagraph (D); and
                  (B) by inserting after subparagraph (A) the 
                following new subparagraphs:
                  ``(B) Certain rights not enforceable.--
                          ``(i) Liquidation.--A person who is a 
                        party to a qualified financial contract 
                        with an insured credit union may not 
                        exercise any right that such person has 
                        to terminate, liquidate, or net such 
                        contract under paragraph (8)(A) of this 
                        subsection or section 403 or 404 of the 
                        Federal Deposit Insurance Corporation 
                        Improvement Act of 1991, solely by 
                        reason of or incidental to the 
                        appointment of a liquidating agent for 
                        the credit union institution (or the 
                        insolvency or financial condition of 
                        the credit union for which the 
                        liquidating agent has been appointed)--
                                  ``(I) until 5:00 p.m. 
                                (eastern time) on the business 
                                day following the date of the 
                                appointment of the liquidating 
                                agent; or
                                  ``(II) after the person has 
                                received notice that the 
                                contract has been transferred 
                                pursuant to paragraph (9)(A).
                          ``(ii) Conservatorship.--A person who 
                        is a party to a qualified financial 
                        contract with an insured credit union 
                        may not exercise any right that such 
                        person has to terminate, liquidate, or 
                        net such contract under paragraph 
                        (8)(E) of this subsection or section 
                        403 or 404 of the Federal Deposit 
                        Insurance Corporation Improvement Act 
                        of 1991, solely by reason of or 
                        incidental to the appointment of a 
                        conservator for the credit union or the 
                        insolvency or financial condition of 
                        the credit union for which the 
                        conservator has been appointed).
                          ``(iii) Notice.--For purposes of this 
                        paragraph, the Board as conservator or 
                        liquidating agent of an insured credit 
                        union shall be deemed to have notified 
                        a person who is a party to a qualified 
                        financial contract with such credit 
                        union if the Board has taken steps 
                        reasonably calculated to provide notice 
                        to such person by the time specified in 
                        subparagraph (A).
                  ``(C) Treatment of bridge banks.--The 
                following institutions shall not be considered 
                to be a financial institution for which a 
                conservator, receiver, trustee in bankruptcy, 
                or other legal custodian has been appointed or 
                which is otherwise the subject of a bankruptcy 
                or insolvency proceeding for purposes of 
                paragraph (9):
                          ``(i) A bridge bank.
                          ``(ii) A credit union organized by 
                        the Board, for which a conservator is 
                        appointed either--
                                  ``(I) immediately upon the 
                                organization of the credit 
                                union; or
                                  ``(II) at the time of a 
                                purchase and assumption 
                                transaction between the credit 
                                union and the Board as receiver 
                                for a credit union in 
                                default.''.

SEC. 904. AMENDMENTS RELATING TO DISAFFIRMANCE OR REPUDIATION OF 
                    QUALIFIED FINANCIAL CONTRACTS.

  (a) FDIC-Insured Depository Institutions.--Section 11(e) of 
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)) is 
amended--
          (1) by redesignating paragraphs (11) through (15) as 
        paragraphs (12) through (16), respectively;
          (2) by inserting after paragraph (10) the following 
        new paragraph:
          ``(11) Disaffirmance or repudiation of qualified 
        financial contracts.--In exercising the rights of 
        disaffirmance or repudiation of a conservator or 
        receiver with respect to any qualified financial 
        contract to which an insured depository institution is 
        a party, the conservator or receiver for such 
        institution shall either--
                  ``(A) disaffirm or repudiate all qualified 
                financial contracts between--
                          ``(i) any person or any affiliate of 
                        such person; and
                          ``(ii) the depository institution in 
                        default; or
                  ``(B) disaffirm or repudiate none of the 
                qualified financial contracts referred to in 
                subparagraph (A) (with respect to such person 
                or any affiliate of such person).''; and
          (3) by adding at the end the following new paragraph:
          ``(17) Savings clause.--The meanings of terms used in 
        this subsection are applicable for purposes of this 
        subsection only, and shall not be construed or applied 
        so as to challenge or affect the characterization, 
        definition, or treatment of any similar terms under any 
        other statute, regulation, or rule, including the 
        Gramm-Leach-Bliley Act, the Legal Certainty for Bank 
        Products Act of 2000, the securities laws (as that term 
        is defined in section 3(a)(47) of the Securities 
        Exchange Act of 1934), and the Commodity Exchange 
        Act.''.
  (b) Insured Credit Unions.--Section 207(c) of the Federal 
Credit Union Act (12 U.S.C. 1787(c)) is amended--
          (1) by redesignating paragraphs (11), (12), and (13) 
        as paragraphs (12), (13), and (14), respectively;
          (2) by inserting after paragraph (10) the following 
        new paragraph:
          ``(11) Disaffirmance or repudiation of qualified 
        financial contracts.--In exercising the rights of 
        disaffirmance or repudiation of a conservator or 
        liquidating agent with respect to any qualified 
        financial contract to which an insured credit union is 
        a party, the conservator or liquidating agent for such 
        credit union shall either--
                  ``(A) disaffirm or repudiate all qualified 
                financial contracts between--
                          ``(i) any person or any affiliate of 
                        such person; and
                          ``(ii) the credit union in default; 
                        or
                  ``(B) disaffirm or repudiate none of the 
                qualified financial contracts referred to in 
                subparagraph (A) (with respect to such person 
                or any affiliate of such person).''; and
          (3) by adding at the end the following new paragraph:
          ``(15) Savings clause.--The meanings of terms used in 
        this subsection are applicable for purposes of this 
        subsection only, and shall not be construed or applied 
        so as to challenge or affect the characterization, 
        definition, or treatment of any similar terms under any 
        other statute, regulation, or rule, including the 
        Gramm-Leach-Bliley Act, the Legal Certainty for Bank 
        Products Act of 2000, the securities laws (as that term 
        is defined in section (a)(47) of the Securities 
        Exchange Act of 1934), and the Commodity Exchange 
        Act.''.

SEC. 905. CLARIFYING AMENDMENT RELATING TO MASTER AGREEMENTS.

  (a) FDIC-Insured Depository Institutions.--Section 
11(e)(8)(D)(vii) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(e)(8)(D)(vii)) is amended to read as follows:
                          ``(vii) Treatment of master agreement 
                        as one agreement.--Any master agreement 
                        for any contract or agreement described 
                        in any preceding clause of this 
                        subparagraph (or any master agreement 
                        for such master agreement or 
                        agreements), together with all 
                        supplements to such master agreement, 
                        shall be treated as a single agreement 
                        and a single qualified financial 
                        contract. If a master agreement 
                        contains provisions relating to 
                        agreements or transactions that are not 
                        themselves qualified financial 
                        contracts, the master agreement shall 
                        be deemed to be a qualified financial 
                        contract only with respect to those 
                        transactions that are themselves 
                        qualified financial contracts.''.
  (b) Insured Credit Unions.--Section 207(c)(8)(D) of the 
Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)) is amended 
by inserting after clause (vi) (as added by section 901(f)) the 
following new clause:
                          ``(vii) Treatment of master agreement 
                        as one agreement.--Any master agreement 
                        for any contract or agreement described 
                        in any preceding clause of this 
                        subparagraph (or any master agreement 
                        for such master agreement or 
                        agreements), together with all 
                        supplements to such master agreement, 
                        shall be treated as a single agreement 
                        and a single qualified financial 
                        contract. If a master agreement 
                        contains provisions relating to 
                        agreements or transactions that are not 
                        themselves qualified financial 
                        contracts, the master agreement shall 
                        be deemed to be a qualified financial 
                        contract only with respect to those 
                        transactions that are themselves 
                        qualified financial contracts.''.
  In the amendment made by section 906(b)(1) of the bill to 
section 403(a) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991, insert ``, paragraphs (8)(E), (8)(F), 
and (10)(B) of section 207(c) of the Federal Credit Union 
Act,'' after ``Deposit Insurance Act''.
  In the amendment made by section 906(b)(2) of the bill, 
adding a new subsection (f) at the end of section 403 of the 
Federal Deposit Insurance Corporation Improvement Act of 1991, 
insert ``, paragraphs (8)(E), (8)(F), and (10)(B) of section 
207(c) of the Federal Credit Union Act,'' after ``Deposit 
Insurance Act''.
  In the amendment made by section 906(c)(1) of the bill to 
section 404(a) of the Federal Deposit Insurance Corporation 
Improvement Act of 1991, insert ``, paragraphs (8)(E), (8)(F), 
and (10)(B) of section 207(c) of the Federal Credit Union 
Act,'' after ``Deposit Insurance Act''.
  In the amendment made by section 906(c)(2) of the bill, 
adding a new subsection (h) at the end of section 404 of the 
Federal Deposit Insurance Corporation Improvement Act of 1991, 
insert ``, paragraphs (8)(E), (8)(F), and (10)(B) of section 
207(c) of the Federal Credit Union Act,'' after ``Deposit 
Insurance Act''.
  In the amendment made by section 907(b)(1) of the bill to 
section 101(22) of title 11, United States Code, strike ``trust 
company, or receiver'' (where such term appears in subparagraph 
(A) of the paragraph proposed to be inserted) and insert 
``trust company, federally-insured credit union, or receiver, 
liquidating agent,''.
  In the amendment made by section 907(b)(1) of the bill to 
section 101(22) of title 11, United States Code, insert 
``liquidating agent,'' after ``receiver,'' (the 2d place such 
term appears in subparagraph (A) of the paragraph proposed to 
be inserted).
  In section 908 of the bill, strike ``Section 11(e)(8)'' and 
insert ``(a) FDIC-Insured Depository Institutions.--Section 
11(e)(8)''.
  Insert the following new subsection at the end of section 908 
of the bill:
  (b) Insured Credit Unions.--Section 207(c)(8) of the Federal 
Credit Union Act (12 U.S.C. 1787(c)(8)) is amended by adding at 
the end the following new subparagraph:
                  ``(H) Recordkeeping requirements.--The Board, 
                in consultation with the appropriate Federal 
                banking agencies, may prescribe regulations 
                requiring more detailed recordkeeping by any 
                insured credit union with respect to qualified 
                financial contracts (including market 
                valuations) only if such insured credit union 
                is in a troubled condition (as such term is 
                defined by the Board pursuant to section 
                212).''.
                              ----------                              


2. An Amendment To Be Offered by Representative Gutierrez of Illinois, 
               or His Designee, Debatable for 10 Minutes

    Subsection (b) of section 1234 (Involuntary Cases) of H.R. 
975 is amended by striking ``shall not apply with respect to 
cases commenced under title 11 of the United States Code before 
such date'' and inserting ``shall apply with respect to cases 
commenced under title 11 of the United States Code before, on, 
and after such date'',
                              ----------                              


3. An Amendment To Be Offered by Representative Cannon of Utah, or His 
                   Designee, Debatable for 10 Minutes

    Add at the end the following:

           TITLE ____--PREVENTING CORPORATE BANKRUPTCY ABUSE

SEC. ____01. EMPLOYEE WAGE AND BENEFIT PRIORITIES.

  Section 507(a) of title 11, United States Code, is amended--
          (1) in paragraph (3) by striking ``90'' and inserting 
        ``180'', and
          (2) in paragraphs (3) and (4) by striking ``$4,000'' 
        and inserting ``$10,000''.

SEC. ____02. FRAUDULENT TRANSFERS AND OBLIGATIONS.

  Section 548 of title 11, United States Code, is amended--
          (1) in subsections (a) and (b) by striking ``one 
        year'' and inserting ``2 years'',
          (2) in subsection (a)--
                  (A) by inserting ``(including any transfer to 
                or for the benefit of an insider under an 
                employment contract)'' after ``transfer'' the 
                1st place it appears, and
                  (B) by inserting ``(including any obligation 
                to or for the benefit of an insider under an 
                employment contract)'' after ``obligation'' the 
                1st place it appears, and
          (3) in subsection (a)(1)(B)(ii)--
                  (A) in subclause (II) by striking ``or'' at 
                the end,
                  (B) in subclause (III) by striking the period 
                at the end and inserting ``; or'', and
                  (C) by adding at the end the following:
          ``(IV) made such transfer to or for the benefit of an 
        insider, or incurred such obligation to or for the 
        benefit of an insider, under an employment contract and 
        not in the ordinary course of business.''.

SEC. ____03. PAYMENT OF INSURANCE BENEFITS TO RETIRED EMPLOYEES.

  Section 1114 of title 11, United States Code, is amended--
          (1) by redesignating subsection (l) as subsection 
        (m), and
          (2) by inserting after subsection (k) the following:
  ``(l) If the debtor, during the 180-day period ending on the 
date of the filing of the petition--
          ``(1) modified retiree benefits; and
          ``(2) was insolvent on the date such benefits were 
        modified;
the court, on motion of a party in interest, and after notice 
and a hearing, shall issue an order reinstating as of the date 
the modification was made, such benefits as in effect 
immediately before such date unless the court finds that the 
balance of the equities clearly favors such modification.''.

SEC. ____04. 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.--
          (1) In general.--Except as provided in paragraph (2), 
        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.
          (2) Avoidance period.--The amendment made by section 
        3(1) shall apply only with respect to cases commenced 
        under title 11 of the United States Code more than 1 
        year after the date of the enactment of this Act.
                              ----------                              


4. An Amendment To Be Offered by Representative Sherman of California, 
               or His Designee, Debatable for 10 Minutes

    Add at the end of the following:

                              TITLE ____--

SEC. ____. LOCAL FILING OF BANKRUPTCY CASES.

  (a) Venue of Cases Under Title 11.--Section 1408 of title 28, 
United States Code, is amended--
          (1) by striking ``Except'' and inserting the 
        following:
  ``(a) Except'';
          (2) in paragraph (2), by inserting ``as defined in 
        section 101(2)(A) of title 11'' after ``affiliate''; 
        and
          (3) by adding at the end the following:
  ``(b) For purposes of subsection (a)--
          ``(1) if the debtor is a corporation, the domicile 
        and residence of the debtor are conclusively presumed 
        to be where the debtor's principal place of business in 
        the United States is located; and
          ``(2) if an affiliate, as defined in section 
        101(2)(A) of title 11, is not a debtor in a case under 
        title 11, but the debtor is an affiliate as defined in 
        subparagraph (B), (C), or (D) of that section, then the 
        bankruptcy case may be filed in the district in which 
        the principal place of business of the affiliate with 
        the greatest assets in the United States is located.''.
  (b) Change of Venue.--Section 1412 of title 28, United States 
Code, is amended--
          (1) by striking ``A'' and inserting the following:
  ``(a) A''; and
          (2) by adding at the end the following:
  ``(b) The district court of a district in which is filed a 
case laying venue in the wrong division or district shall 
dismiss, or if it be in the interest of justice, transfer such 
case to any district or division in which it could have been 
brought.
  ``(c) Nothing in this chapter shall impair the jurisdiction 
of a district court of any matter involving a party who does 
not interpose timely and sufficient objection to the venue.
  ``(d) As used in this section--
          ``(1) the term ``district court'' includes--
                  ``(A) the bankruptcy judges of each such 
                court as defined in section 151 of this title; 
                and
                  ``(B) the District Court of Guam, the 
                District Court for the Northern Mariana 
                Islands, and the District Court of the Virgin 
                Islands, including any bankruptcy judge of each 
                such court; and
          ``(2) the term ``district'' includes the territorial 
        jurisdiction of each such court.''.
                              ----------                              


    5. An Amendment in the Nature of a Substitute To Be Offered by 
 Representative Conyers of Michigan, or His Designee, Debatable for 40 
                                Minutes

  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Bankruptcy Abuse Prevention 
and Consumer Protection Act of 2003''.

                    TITLE I--NEEDS-BASED BANKRUPTCY

SEC. 101. CONVERSION.

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

SEC. 102. DISMISSAL OR CONVERSION.

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

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

        and
          (2) in subsection (b)--
                  (A) by inserting ``(1)'' after ``(b)''; and
                  (B) in paragraph (1), as redesignated by 
                subparagraph (A) of this paragraph--
                          (i) in the first sentence--
                                  (I) by striking ``but not'' 
                                and inserting ``or'';
                                  (II) by inserting ``, or, 
                                with the debtor's consent, 
                                convert such a case to a case 
                                under chapter 13 of this 
                                title,'' after ``consumer 
                                debts''; and
                                  (III) by striking 
                                ``substantial abuse'' and 
                                inserting ``abuse''; and
                          (ii) by striking the last sentence 
                        and inserting the following:
  ``(2) In considering under paragraph (1) whether the granting 
of relief would be an abuse of the provisions of this chapter, 
the court shall consider whether--
          ``(A) under section 1325(b)(1), on the basis of the 
        current income of the debtor, the debtor could pay an 
        amount greater than or equal to 30 percent of unsecured 
        claims that are not considered to be priority claims 
        (as determined under subchapter I of chapter 5); or
          ``(B) the debtor filed a petition for the relief in 
        bad faith.
  ``(6) Only the judge or United States trustee (or bankruptcy 
administrator, if any) may file a motion under section 707(b), 
if the current monthly income of the debtor, or in a joint 
case, the debtor and the debtor's spouse, as of the date of the 
order for relief, when multiplied by 12, is equal to or less 
than--
          ``(A) in the case of a debtor in a household of 1 
        person, the median family income of the applicable 
        State for 1 earner;
          ``(B) in the case of a debtor in a household of 2, 3, 
        or 4 individuals, the highest median family income of 
        the applicable State for a family of the same number or 
        fewer individuals; or
          ``(C) in the case of a debtor in a household 
        exceeding 4 individuals, the highest median family 
        income of the applicable State for a family of 4 or 
        fewer individuals, plus $525 per month for each 
        individual in excess of 4.
  ``(7)(A) No judge, United States trustee (or bankruptcy 
administrator, if any), trustee, or other party in interest may 
file a motion under paragraph (2) if the current monthly income 
of the debtor and the debtor's spouse combined, as of the date 
of the order for relief when multiplied by 12, is equal to or 
less than--
          ``(i) in the case of a debtor in a household of 1 
        person, the median family income of the applicable 
        State for 1 earner;
          ``(ii) in the case of a debtor in a household of 2, 
        3, or 4 individuals, the highest median family income 
        of the applicable State for a family of the same number 
        or fewer individuals; or
          ``(iii) in the case of a debtor in a household 
        exceeding 4 individuals, the highest median family 
        income of the applicable State for a family of 4 or 
        fewer individuals, plus $525 per month for each 
        individual in excess of 4.
  ``(B) In a case that is not a joint case, current monthly 
income of the debtor's spouse shall not be considered for 
purposes of subparagraph (A) if--
          ``(i)(I) the debtor and the debtor's spouse are 
        separated under applicable nonbankruptcy law; or
          ``(II) the debtor and the debtor's spouse are living 
        separate and apart, other than for the purpose of 
        evading subparagraph (A); and
          ``(ii) the debtor files a statement under penalty of 
        perjury--
                  ``(I) specifying that the debtor meets the 
                requirement of subclause (I) or (II) of clause 
                (i); and
                  ``(II) disclosing the aggregate, or best 
                estimate of the aggregate, amount of any cash 
                or money payments received from the debtor's 
                spouse attributed to the debtor's current 
                monthly income.''.
  (b) Definition.--Section 101 of title 11, United States Code, 
is amended by inserting after paragraph (10) the following:
          ``(10A) `current monthly income'--
                  ``(A) means the average monthly income from 
                all sources that the debtor receives (or in a 
                joint case the debtor and the debtor's spouse 
                receive) without regard to whether such income 
                is taxable income, derived during the 60-day 
                period ending on--
                          ``(i) the last day of the calendar 
                        month immediately preceding the date of 
                        the commencement of the case if the 
                        debtor files the schedule of current 
                        income required by section 
                        521(a)(1)(B)(ii); or
                          ``(ii) the date on which current 
                        income is determined by the court for 
                        purposes of this title if the debtor 
                        does not file the schedule of current 
                        income required by section 
                        521(a)(1)(B)(ii); and
                  ``(B) includes any amount paid by any entity 
                other than the debtor (or in a joint case the 
                debtor and the debtor's spouse), on a regular 
                basis for the household expenses of the debtor 
                or the debtor's dependents (and in a joint case 
                the debtor's spouse if not otherwise a 
                dependent), but excludes benefits received 
                under the Social Security Act, payments to 
                victims of war crimes or crimes against 
                humanity on account of their status as victims 
                of such crimes, and payments to victims of 
                international terrorism (as defined in section 
                2331 of title 18) or domestic terrorism (as 
                defined in section 2331 of title 18) on account 
                of their status as victims of such 
                terrorism;''.
  (c) United States Trustee and Bankruptcy Administrator 
Duties.--Section 704 of title 11, United States Code, is 
amended--
          (1) by inserting ``(a)'' before ``The trustee shall--
        ''; and
          (2) by adding at the end the following:
  ``(b)(1) With respect to a debtor who is an individual in a 
case under this chapter--
          ``(A) the United States trustee (or the bankruptcy 
        administrator, if any) shall review all materials filed 
        by the debtor and, not later than 10 days after the 
        date of the first meeting of creditors, file with the 
        court a statement as to whether the debtor's case would 
        be presumed to be an abuse under section 707(b); and
          ``(B) not later than 5 days after receiving a 
        statement under subparagraph (A), the court shall 
        provide a copy of the statement to all creditors.
  ``(2) The United States trustee (or bankruptcy administrator, 
if any) shall, not later than 30 days after the date of filing 
a statement under paragraph (1), either file a motion to 
dismiss or convert under section 707(b) or file a statement 
setting forth the reasons the United States trustee (or the 
bankruptcy administrator, if any) does not consider such a 
motion to be appropriate, if the United States trustee (or the 
bankruptcy administrator, if any) determines that the debtor's 
case should be presumed to be an abuse under section 707(b) and 
the product of the debtor's current monthly income, multiplied 
by 12 is not less than--
          ``(A) in the case of a debtor in a household of 1 
        person, the median family income of the applicable 
        State for 1 earner; or
          ``(B) in the case of a debtor in a household of 2 or 
        more individuals, the highest median family income of 
        the applicable State for a family of the same number or 
        fewer individuals.''.
  (d) Notice.--Section 342 of title 11, United States Code, is 
amended by adding at the end the following:
  ``(d) In a case under chapter 7 of this title in which the 
debtor is an individual and in which the presumption of abuse 
arises under section 707(b), the clerk shall give written 
notice to all creditors not later than 10 days after the date 
of the filing of the petition that the presumption of abuse has 
arisen.''.
  (e) Nonlimitation of Information.--Nothing in this title 
shall limit the ability of a creditor to provide information to 
a judge (except for information communicated ex parte, unless 
otherwise permitted by applicable law), United States trustee 
(or bankruptcy administrator, if any), or trustee.
  (f) Dismissal for Certain Crimes.--Section 707 of title 11, 
United States Code, is amended by adding at the end the 
following:
  ``(c)(1) In this subsection--
          ``(A) the term `crime of violence' has the meaning 
        given such term in section 16 of title 18; and
          ``(B) the term `drug trafficking crime' has the 
        meaning given such term in section 924(c)(2) of title 
        18.
  ``(2) Except as provided in paragraph (3), after notice and a 
hearing, the court, on a motion by the victim of a crime of 
violence or a drug trafficking crime, may when it is in the 
best interest of the victim dismiss a voluntary case filed 
under this chapter by a debtor who is an individual if such 
individual was convicted of such crime.
  ``(3) The court may not dismiss a case under paragraph (2) if 
the debtor establishes by a preponderance of the evidence that 
the filing of a case under this chapter is necessary to satisfy 
a claim for a domestic support obligation.''.
  (g) Confirmation of Plan.--Section 1325(a) of title 11, 
United States Code, is amended--
          (1) in paragraph (5), by striking ``and'' at the end;
          (2) in paragraph (6), by striking the period and 
        inserting a semicolon; and
          (3) by inserting after paragraph (6) the following:
          ``(7) the action of the debtor in filing the petition 
        was in good faith;''.
  (i) Special Allowance for Health Insurance.--Section 1329(a) 
of title 11, United States Code, is amended--
          (1) in paragraph (2) by striking ``or'' at the end;
          (2) in paragraph (3) by striking the period at the 
        end and inserting ``; or''; and
          (3) by adding at the end the following:
          ``(4) reduce amounts to be paid under the plan by the 
        actual amount expended by the debtor to purchase health 
        insurance for the debtor (and for any dependent of the 
        debtor if such dependent does not otherwise have health 
        insurance coverage) if the debtor documents the cost of 
        such insurance and demonstrates that--
                  ``(A) such expenses are reasonable and 
                necessary;
                  ``(B)(i) if the debtor previously paid for 
                health insurance, the amount is not materially 
                larger than the cost the debtor previously paid 
                or the cost necessary to maintain the lapsed 
                policy; or
                  ``(ii) if the debtor did not have health 
                insurance, the amount is not materially larger 
                than the reasonable cost that would be incurred 
                by a debtor who purchases health insurance, who 
                has similar income, expenses, age, and health 
                status, and who lives in the same geographical 
                location with the same number of dependents who 
                do not otherwise have health insurance 
                coverage; and
                  ``(C) the amount is not otherwise allowed for 
                purposes of determining disposable income under 
                section 1325(b) of this title;
        and upon request of any party in interest, files proof 
        that a health insurance policy was purchased.''.
  (j) Adjustment of Dollar Amounts.--Section 104(b) of title 
11, United States Code, is amended by striking ``and 
523(a)(2)(C)'' each place it appears and inserting 
``523(a)(2)(C), 707(b), and 1325(b)(3)''.
  (k) Definition of `Median Family Income'.--Section 101 of 
title 11, United States Code, is amended by inserting after 
paragraph (39) the following:
          ``(39A) `median family income' means for any year--
                  ``(A) the median family income both 
                calculated and reported by the Bureau of the 
                Census in the then most recent year; and
                  ``(B) if not so calculated and reported in 
                the then current year, adjusted annually after 
                such most recent year until the next year in 
                which median family income is both calculated 
                and reported by the Bureau of the Census, to 
                reflect the percentage change in the Consumer 
                Price Index for All Urban Consumers during the 
                period of years occurring after such most 
                recent year and before such current year;''.
  (k) Clerical Amendment.--The table of sections for chapter 7 
of title 11, United States Code, is amended by striking the 
item relating to section 707 and inserting the following:

``707. Dismissal of a case or conversion to a case under chapter 11 or 
          13.''.

SEC. 103. NOTICE OF ALTERNATIVES.

  Section 342(b) of title 11, United States Code, is amended to 
read as follows:
  ``(b) Before the commencement of a case under this title by 
an individual whose debts are primarily consumer debts, the 
clerk shall give to such individual written notice containing--
          ``(1) a brief description of--
                  ``(A) chapters 7, 11, 12, and 13 and the 
                general purpose, benefits, and costs of 
                proceeding under each of those chapters; and
                  ``(B) the types of services available from 
                credit counseling agencies; and
          ``(2) statements specifying that--
                  ``(A) a person who knowingly and fraudulently 
                conceals assets or makes a false oath or 
                statement under penalty of perjury in 
                connection with a case under this title shall 
                be subject to fine, imprisonment, or both; and
                  ``(B) all information supplied by a debtor in 
                connection with a case under this title is 
                subject to examination by the Attorney 
                General.''.

SEC. 104. DEBTOR FINANCIAL MANAGEMENT TRAINING TEST PROGRAM.

  (a) Development of Financial Management and Training 
Curriculum and Materials.--The Director of the Executive Office 
for United States Trustees (in this section referred to as the 
``Director'') shall consult with a wide range of individuals 
who are experts in the field of debtor education, including 
trustees who serve in cases under chapter 13 of title 11, 
United States Code, and who operate financial management 
education programs for debtors, and shall develop a financial 
management training curriculum and materials that can be used 
to educate debtors who are individuals on how to better manage 
their finances.
  (b) Test.--
          (1) Selection of districts.--The Director shall 
        select 6 judicial districts of the United States in 
        which to test the effectiveness of the financial 
        management training curriculum and materials developed 
        under subsection (a).
          (2) Use.--For an 18-month period beginning not later 
        than 270 days after the date of the enactment of this 
        Act, such curriculum and materials shall be, for the 6 
        judicial districts selected under paragraph (1), used 
        as the instructional course concerning personal 
        financial management for purposes of section 111 of 
        title 11, United States Code.
  (c) Evaluation.--
          (1) In general.--During the 18-month period referred 
        to in subsection (b), the Director shall evaluate the 
        effectiveness of--
                  (A) the financial management training 
                curriculum and materials developed under 
                subsection (a); and
                  (B) a sample of existing consumer education 
                programs such as those described in the Report 
                of the National Bankruptcy Review Commission 
                (October 20, 1997) that are representative of 
                consumer education programs carried out by the 
                credit industry, by trustees serving under 
                chapter 13 of title 11, United States Code, and 
                by consumer counseling groups.
          (2) Report.--Not later than 3 months after concluding 
        such evaluation, the Director shall submit a report to 
        the Speaker of the House of Representatives and the 
        President pro tempore of the Senate, for referral to 
        the appropriate committees of the Congress, containing 
        the findings of the Director regarding the 
        effectiveness of such curriculum, such materials, and 
        such programs and their costs.

SEC. 105. CREDIT COUNSELING.

  (d) Debtor's Duties.--Section 521 of title 11, United States 
Code, is amended--
          (1) by inserting ``(a)'' before ``The debtor shall--
        ''; and
          (2) by adding at the end the following:
  ``(b) In addition to the requirements under subsection (a), a 
debtor who is an individual shall file with the court--
          ``(1) a certificate from the approved nonprofit 
        budget and credit counseling agency that provided the 
        debtor services under section 109(h) describing the 
        services provided to the debtor; and
          ``(2) a copy of the debt repayment plan, if any, 
        developed under section 109(h) through the approved 
        nonprofit budget and credit counseling agency referred 
        to in paragraph (1).''.
  (e) General Provisions.--
          (1) In general.--Chapter 1 of title 11, United States 
        Code, is amended by adding at the end the following:

``Sec. 111. Nonprofit budget and credit counseling agencies; financial 
                    management instructional courses

  ``(a) The clerk shall maintain a publicly available list of--
          ``(1) nonprofit budget and credit counseling agencies 
        that provide 1 or more services described in section 
        109(h) currently approved by the United States trustee 
        (or the bankruptcy administrator, if any); and
          ``(2) instructional courses concerning personal 
        financial management currently approved by the United 
        States trustee (or the bankruptcy administrator, if 
        any), as applicable.
  ``(b) The United States trustee (or bankruptcy administrator, 
if any) shall only approve a nonprofit budget and credit 
counseling agency or an instructional course concerning 
personal financial management as follows:
          ``(1) The United States trustee (or bankruptcy 
        administrator, if any) shall have thoroughly reviewed 
        the qualifications of the nonprofit budget and credit 
        counseling agency or of the provider of the 
        instructional course under the standards set forth in 
        this section, and the services or instructional courses 
        that will be offered by such agency or such provider, 
        and may require such agency or such provider that has 
        sought approval to provide information with respect to 
        such review.
          ``(2) The United States trustee (or bankruptcy 
        administrator, if any) shall have determined that such 
        agency or such instructional course fully satisfies the 
        applicable standards set forth in this section.
          ``(3) If a nonprofit budget and credit counseling 
        agency or instructional course did not appear on the 
        approved list for the district under subsection (a) 
        immediately before approval under this section, 
        approval under this subsection of such agency or such 
        instructional course shall be for a probationary period 
        not to exceed 6 months.
          ``(4) At the conclusion of the applicable 
        probationary period under paragraph (3), the United 
        States trustee (or bankruptcy administrator, if any) 
        may only approve for an additional 1-year period, and 
        for successive 1-year periods thereafter, an agency or 
        instructional course that has demonstrated during the 
        probationary or applicable subsequent period of 
        approval that such agency or instructional course--
                  ``(A) has met the standards set forth under 
                this section during such period; and
                  ``(B) can satisfy such standards in the 
                future.
          ``(5) Not later than 30 days after any final decision 
        under paragraph (4), an interested person may seek 
        judicial review of such decision in the appropriate 
        district court of the United States.
  ``(c)(1) The United States trustee (or the bankruptcy 
administrator, if any) shall only approve a nonprofit budget 
and credit counseling agency that demonstrates that it will 
provide qualified counselors, maintain adequate provision for 
safekeeping and payment of client funds, provide adequate 
counseling with respect to client credit problems, and deal 
responsibly and effectively with other matters relating to the 
quality, effectiveness, and financial security of the services 
it provides.
  ``(2) To be approved by the United States trustee (or the 
bankruptcy administrator, if any), a nonprofit budget and 
credit counseling agency shall, at a minimum--
          ``(A) have a board of directors the majority of 
        which--
                  ``(i) are not employed by such agency; and
                  ``(ii) will not directly or indirectly 
                benefit financially from the outcome of the 
                counseling services provided by such agency;
          ``(B) if a fee is charged for counseling services, 
        charge a reasonable fee, and provide services without 
        regard to ability to pay the fee;
          ``(C) provide for safekeeping and payment of client 
        funds, including an annual audit of the trust accounts 
        and appropriate employee bonding;
          ``(D) provide full disclosures to a client, including 
        funding sources, counselor qualifications, possible 
        impact on credit reports, and any costs of such program 
        that will be paid by such client and how such costs 
        will be paid;
          ``(E) provide adequate counseling with respect to a 
        client's credit problems that includes an analysis of 
        such client's current financial condition, factors that 
        caused such financial condition, and how such client 
        can develop a plan to respond to the problems without 
        incurring negative amortization of debt;
          ``(F) provide trained counselors who receive no 
        commissions or bonuses based on the outcome of the 
        counseling services provided by such agency, and who 
        have adequate experience, and have been adequately 
        trained to provide counseling services to individuals 
        in financial difficulty, including the matters 
        described in subparagraph (E);
          ``(G) demonstrate adequate experience and background 
        in providing credit counseling; and
          ``(H) have adequate financial resources to provide 
        continuing support services for budgeting plans over 
        the life of any repayment plan.
  ``(d) The United States trustee (or the bankruptcy 
administrator, if any) shall only approve an instructional 
course concerning personal financial management--
          ``(1) for an initial probationary period under 
        subsection (b)(3) if the course will provide at a 
        minimum--
                  ``(A) trained personnel with adequate 
                experience and training in providing effective 
                instruction and services;
                  ``(B) learning materials and teaching 
                methodologies designed to assist debtors in 
                understanding personal financial management and 
                that are consistent with stated objectives 
                directly related to the goals of such 
                instructional course;
                  ``(C) adequate facilities situated in 
                reasonably convenient locations at which such 
                instructional course is offered, except that 
                such facilities may include the provision of 
                such instructional course by telephone or 
                through the Internet, if such instructional 
                course is effective; and
                  ``(D) the preparation and retention of 
                reasonable records (which shall include the 
                debtor's bankruptcy case number) to permit 
                evaluation of the effectiveness of such 
                instructional course, including any evaluation 
                of satisfaction of instructional course 
                requirements for each debtor attending such 
                instructional course, which shall be available 
                for inspection and evaluation by the Executive 
                Office for United States Trustees, the United 
                States trustee (or the bankruptcy 
                administrator, if any), or the chief bankruptcy 
                judge for the district in which such 
                instructional course is offered; and
          ``(2) for any 1-year period if the provider thereof 
        has demonstrated that the course meets the standards of 
        paragraph (1) and, in addition--
                  ``(A) has been effective in assisting a 
                substantial number of debtors to understand 
                personal financial management; and
                  ``(B) is otherwise likely to increase 
                substantially the debtor's understanding of 
                personal financial management.
  ``(e) The district court may, at any time, investigate the 
qualifications of a nonprofit budget and credit counseling 
agency referred to in subsection (a), and request production of 
documents to ensure the integrity and effectiveness of such 
agency. The district court may, at any time, remove from the 
approved list under subsection (a) a nonprofit budget and 
credit counseling agency upon finding such agency does not meet 
the qualifications of subsection (b).
  ``(f) The United States trustee (or the bankruptcy 
administrator, if any) shall notify the clerk that a nonprofit 
budget and credit counseling agency or an instructional course 
is no longer approved, in which case the clerk shall remove it 
from the list maintained under subsection (a).
  ``(g)(1) No nonprofit budget and credit counseling agency may 
provide to a credit reporting agency information concerning 
whether a debtor has received or sought instruction concerning 
personal financial management from such agency.
  ``(2) A nonprofit budget and credit counseling agency that 
willfully or negligently fails to comply with any requirement 
under this title with respect to a debtor shall be liable for 
damages in an amount equal to the sum of--
          ``(A) any actual damages sustained by the debtor as a 
        result of the violation; and
          ``(B) any court costs or reasonable attorneys' fees 
        (as determined by the court) incurred in an action to 
        recover those damages.''.
          (2) Clerical amendment.--The table of sections for 
        chapter 1 of title 11, United States Code, is amended 
        by adding at the end the following:

``111. Nonprofit budget and credit counseling agencies; financial 
          management instructional courses.''.
  (f) Limitation.--Section 362 of title 11, United States Code, 
is amended by adding at the end the following:
  ``(i) If a case commenced under chapter 7, 11, or 13 is 
dismissed due to the creation of a debt repayment plan, for 
purposes of subsection (c)(3), any subsequent case commenced by 
the debtor under any such chapter shall not be presumed to be 
filed not in good faith.
  ``(j) On request of a party in interest, the court shall 
issue an order under subsection (c) confirming that the 
automatic stay has been terminated.''.

SEC. 106. SCHEDULES OF REASONABLE AND NECESSARY EXPENSES.

  For purposes of section 707(b) of title 11, United States 
Code, as amended by this Act, the Director of the Executive 
Office for United States Trustees shall, not later than 180 
days after the date of enactment of this Act, issue schedules 
of reasonable and necessary administrative expenses of 
administering a chapter 13 plan for each judicial district of 
the United States.

                 TITLE II--ENHANCED CONSUMER PROTECTION

          Subtitle A--Penalties for Abusive Creditor Practices

SEC. 201. PRESERVATION OF CLAIMS AND DEFENSES UPON SALE OF PREDATORY 
                    LOANS.

  Section 363 of title 11, United States Code, is amended--
          (1) by redesignating subsection (o) as subsection 
        (p), and
          (2) by inserting after subsection (n) the following:
  ``(o) Notwithstanding subsection (f), if a person purchases 
any interest in a consumer credit transaction that is subject 
to the Truth in Lending Act or any interest in a consumer 
credit contract (as defined in section 433.1 of title 16 of the 
Code of Federal Regulations (January 1, 2002), as amended from 
time to time), and if such interest is purchased through a sale 
under this section, then such person shall remain subject to 
all claims and defenses that are related to such consumer 
credit transaction or such consumer credit contract, to the 
same extent as such person would be subject to such claims and 
defenses of the consumer had such interest been purchased at a 
sale not under this section.''.

SEC. 202. GAO STUDY AND REPORT ON REAFFIRMATION AGREEMENT PROCESS.

  (a) Study.--The Comptroller General of the United States 
shall conduct a study of the reaffirmation agreement process 
that occurs under title 11 of the United States Code, to 
determine the overall treatment of consumers within the context 
of such process, and shall include in such study consideration 
of--
          (1) the policies and activities of creditors with 
        respect to reaffirmation agreements; and
          (2) whether consumers are fully, fairly, and 
        consistently informed of their rights pursuant to such 
        title.
  (b) Report to the Congress.--Not later than 18 months after 
the date of the enactment of this Act, the Comptroller General 
shall submit to the President pro tempore of the Senate and the 
Speaker of the House of Representatives a report on the results 
of the study conducted under subsection (a), together with 
recommendations for legislation (if any) to address any abusive 
or coercive tactics found in connection with the reaffirmation 
agreement process that occurs under title 11 of the United 
States Code.

                   Subtitle B--Priority Child Support

SEC. 211. DEFINITION OF DOMESTIC SUPPORT OBLIGATION.

  Section 101 of title 11, United States Code, is amended--
          (1) by striking paragraph (12A); and
          (2) by inserting after paragraph (14) the following:
          ``(14A) `domestic support obligation' means a debt 
        that accrues before or after the date of the order for 
        relief in a case under this title, including interest 
        that accrues on that debt as provided under applicable 
        nonbankruptcy law notwithstanding any other provision 
        of this title, that is--
                  ``(A) owed to or recoverable by--
                          ``(i) a spouse, former spouse, or 
                        child of the debtor or such child's 
                        parent, legal guardian, or responsible 
                        relative; or
                          ``(ii) a governmental unit;
                  ``(B) in the nature of alimony, maintenance, 
                or support (including assistance provided by a 
                governmental unit) of such spouse, former 
                spouse, or child of the debtor or such child's 
                parent, without regard to whether such debt is 
                expressly so designated;
                  ``(C) established or subject to establishment 
                before or after the date of the order for 
                relief in a case under this title, by reason of 
                applicable provisions of--
                          ``(i) a separation agreement, divorce 
                        decree, or property settlement 
                        agreement;
                          ``(ii) an order of a court of record; 
                        or
                          ``(iii) a determination made in 
                        accordance with applicable 
                        nonbankruptcy law by a governmental 
                        unit; and
                  ``(D) not assigned to a nongovernmental 
                entity, unless that obligation is assigned 
                voluntarily by the spouse, former spouse, child 
                of the debtor, or such child's parent, legal 
                guardian, or responsible relative for the 
                purpose of collecting the debt;''.

SEC. 212. PRIORITIES FOR CLAIMS FOR DOMESTIC SUPPORT OBLIGATIONS.

  Section 507(a) of title 11, United States Code, is amended--
          (1) by striking paragraph (7);
          (2) by redesignating paragraphs (1) through (6) as 
        paragraphs (2) through (7), respectively;
          (3) in paragraph (2), as so redesignated, by striking 
        ``First'' and inserting ``Second'';
          (4) in paragraph (3), as so redesignated, by striking 
        ``Second'' and inserting ``Third'';
          (5) in paragraph (4), as so redesignated--
                  (A) by striking ``Third'' and inserting 
                ``Fourth''; and
                  (B) by striking the semicolon at the end and 
                inserting a period;
          (6) in paragraph (5), as so redesignated, by striking 
        ``Fourth'' and inserting ``Fifth'';
          (7) in paragraph (6), as so redesignated, by striking 
        ``Fifth'' and inserting ``Sixth'';
          (8) in paragraph (7), as so redesignated, by striking 
        ``Sixth'' and inserting ``Seventh''; and
          (9) by inserting before paragraph (2), as so 
        redesignated, the following:
          ``(1) First:
                  ``(A) Allowed unsecured claims for domestic 
                support obligations that, as of the date of the 
                filing of the petition in a case under this 
                title, are owed to or recoverable by a spouse, 
                former spouse, or child of the debtor, or such 
                child's parent, legal guardian, or responsible 
                relative, without regard to whether the claim 
                is filed by such person or is filed by a 
                governmental unit on behalf of such person, on 
                the condition that funds received under this 
                paragraph by a governmental unit under this 
                title after the date of the filing of the 
                petition shall be applied and distributed in 
                accordance with applicable nonbankruptcy law.
                  ``(B) Subject to claims under subparagraph 
                (A), allowed unsecured claims for domestic 
                support obligations that, as of the date of the 
                filing of the petition, are assigned by a 
                spouse, former spouse, child of the debtor, or 
                such child's parent, legal guardian, or 
                responsible relative to a governmental unit 
                (unless such obligation is assigned voluntarily 
                by the spouse, former spouse, child, parent, 
                legal guardian, or responsible relative of the 
                child for the purpose of collecting the debt) 
                or are owed directly to or recoverable by a 
                governmental unit under applicable 
                nonbankruptcy law, on the condition that funds 
                received under this paragraph by a governmental 
                unit under this title after the date of the 
                filing of the petition be applied and 
                distributed in accordance with applicable 
                nonbankruptcy law.
                  ``(C) If a trustee is appointed or elected 
                under section 701, 702, 703, 1104, 1202, or 
                1302, the administrative expenses of the 
                trustee allowed under paragraphs (1)(A), (2), 
                and (6) of section 503(b) shall be paid before 
                payment of claims under subparagraphs (A) and 
                (B), to the extent that the trustee administers 
                assets that are otherwise available for the 
                payment of such claims.''.

SEC. 213. REQUIREMENTS TO OBTAIN CONFIRMATION AND DISCHARGE IN CASES 
                    INVOLVING DOMESTIC SUPPORT OBLIGATIONS.

  Title 11, United States Code, is amended--
          (1) in section 1129(a), by adding at the end the 
        following:
          ``(14) If the debtor is required by a judicial or 
        administrative order, or by statute, to pay a domestic 
        support obligation, the debtor has paid all amounts 
        payable under such order or such statute for such 
        obligation that first become payable after the date of 
        the filing of the petition.'';
          (2) in section 1208(c)--
                  (A) in paragraph (8), by striking ``or'' at 
                the end;
                  (B) in paragraph (9), by striking the period 
                at the end and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(10) failure of the debtor to pay any domestic 
        support obligation that first becomes payable after the 
        date of the filing of the petition.'';
          (3) in section 1222(a)--
                  (A) in paragraph (2), by striking ``and'' at 
                the end;
                  (B) in paragraph (3), by striking the period 
                at the end and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(4) notwithstanding any other provision of this 
        section, a plan may provide for less than full payment 
        of all amounts owed for a claim entitled to priority 
        under section 507(a)(1)(B) only if the plan provides 
        that all of the debtor's projected disposable income 
        for a 5-year period beginning on the date that the 
        first payment is due under the plan will be applied to 
        make payments under the plan.'';
          (4) in section 1222(b)--
                  (A) by redesignating paragraph (11) as 
                paragraph (12); and
                  (B) by inserting after paragraph (10) the 
                following:
          ``(11) provide for the payment of interest accruing 
        after the date of the filing of the petition on 
        unsecured claims that are nondischargeable under 
        section 1228(a), except that such interest may be paid 
        only to the extent that the debtor has disposable 
        income available to pay such interest after making 
        provision for full payment of all allowed claims;'';
          (5) in section 1225(a)--
                  (A) in paragraph (5), by striking ``and'' at 
                the end;
                  (B) in paragraph (6), by striking the period 
                at the end and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(7) the debtor has paid all amounts that are 
        required to be paid under a domestic support obligation 
        and that first become payable after the date of the 
        filing of the petition if the debtor is required by a 
        judicial or administrative order, or by statute, to pay 
        such domestic support obligation.'';
          (6) in section 1228(a), in the matter preceding 
        paragraph (1), by inserting ``, and in the case of a 
        debtor who is required by a judicial or administrative 
        order, or by statute, to pay a domestic support 
        obligation, after such debtor certifies that all 
        amounts payable under such order or such statute that 
        are due on or before the date of the certification 
        (including amounts due before the petition was filed, 
        but only to the extent provided for by the plan) have 
        been paid'' after ``completion by the debtor of all 
        payments under the plan'';
          (7) in section 1307(c)--
                  (A) in paragraph (9), by striking ``or'' at 
                the end;
                  (B) in paragraph (10), by striking the period 
                at the end and inserting ``; or''; and
                  (C) by adding at the end the following:
          ``(11) failure of the debtor to pay any domestic 
        support obligation that first becomes payable after the 
        date of the filing of the petition.'';
          (8) in section 1322(a)--
                  (A) in paragraph (2), by striking ``and'' at 
                the end;
                  (B) in paragraph (3), by striking the period 
                at the end and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(4) notwithstanding any other provision of this 
        section, a plan may provide for less than full payment 
        of all amounts owed for a claim entitled to priority 
        under section 507(a)(1)(B) only if the plan provides 
        that all of the debtor's projected disposable income 
        for a 5-year period beginning on the date that the 
        first payment is due under the plan will be applied to 
        make payments under the plan.'';
          (9) in section 1322(b)--
                  (A) in paragraph (9), by striking ``; and'' 
                and inserting a semicolon;
                  (B) by redesignating paragraph (10) as 
                paragraph (11); and
                  (C) inserting after paragraph (9) the 
                following:
          ``(10) provide for the payment of interest accruing 
        after the date of the filing of the petition on 
        unsecured claims that are nondischargeable under 
        section 1328(a), except that such interest may be paid 
        only to the extent that the debtor has disposable 
        income available to pay such interest after making 
        provision for full payment of all allowed claims; 
        and'';
          (10) in section 1325(a), as amended by section 102, 
        by inserting after paragraph (7) the following:
          ``(8) the debtor has paid all amounts that are 
        required to be paid under a domestic support obligation 
        and that first become payable after the date of the 
        filing of the petition if the debtor is required by a 
        judicial or administrative order, or by statute, to pay 
        such domestic support obligation; and'';
          (11) in section 1328(a), in the matter preceding 
        paragraph (1), by inserting ``, and in the case of a 
        debtor who is required by a judicial or administrative 
        order, or by statute, to pay a domestic support 
        obligation, after such debtor certifies that all 
        amounts payable under such order or such statute that 
        are due on or before the date of the certification 
        (including amounts due before the petition was filed, 
        but only to the extent provided for by the plan) have 
        been paid'' after ``completion by the debtor of all 
        payments under the plan''.

SEC. 214. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC SUPPORT OBLIGATION 
                    PROCEEDINGS.

  Section 362(b) of title 11, United States Code, is amended by 
striking paragraph (2) and inserting the following:
          ``(2) under subsection (a)--
                  ``(A) of the commencement or continuation of 
                a civil action or proceeding--
                          ``(i) for the establishment of 
                        paternity;
                          ``(ii) for the establishment or 
                        modification of an order for domestic 
                        support obligations;
                          ``(iii) concerning child custody or 
                        visitation;
                          ``(iv) for the dissolution of a 
                        marriage, except to the extent that 
                        such proceeding seeks to determine the 
                        division of property that is property 
                        of the estate; or
                          ``(v) regarding domestic violence;
                  ``(B) of the collection of a domestic support 
                obligation from property that is not property 
                of the estate;
                  ``(C) with respect to the withholding of 
                income that is property of the estate or 
                property of the debtor for payment of a 
                domestic support obligation under a judicial or 
                administrative order or a statute;
                  ``(D) of the withholding, suspension, or 
                restriction of a driver's license, a 
                professional or occupational license, or a 
                recreational license, under State law, as 
                specified in section 466(a)(16) of the Social 
                Security Act;
                  ``(E) of the reporting of overdue support 
                owed by a parent to any consumer reporting 
                agency as specified in section 466(a)(7) of the 
                Social Security Act;
                  ``(F) of the interception of a tax refund, as 
                specified in sections 464 and 466(a)(3) of the 
                Social Security Act or under an analogous State 
                law; or
                  ``(G) of the enforcement of a medical 
                obligation, as specified under title IV of the 
                Social Security Act;''.

SEC. 215. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY, 
                    MAINTENANCE, AND SUPPORT.

  Section 523 of title 11, United States Code, is amended--
          (1) in subsection (a)--
                  (A) by striking paragraph (5) and inserting 
                the following:
          ``(5) for a domestic support obligation;''; and
                  (B) by striking paragraph (18);
          (2) in subsection (c), by striking ``(6), or (15)'' 
        each place it appears and inserting ``or (6)''; and
          (3) in paragraph (15), as added by Public Law 103-394 
        (108 Stat. 4133)--
                  (A) by inserting ``to a spouse, former 
                spouse, or child of the debtor and'' before 
                ``not of the kind'';
                  (B) by inserting ``or'' after ``court of 
                record,''; and
                  (C) by striking ``unless--'' and all that 
                follows through the end of the paragraph and 
                inserting a semicolon.

SEC. 216. CONTINUED LIABILITY OF PROPERTY.

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

SEC. 217. PROTECTION OF DOMESTIC SUPPORT CLAIMS AGAINST PREFERENTIAL 
                    TRANSFER MOTIONS.

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

SEC. 218. DISPOSABLE INCOME DEFINED.

  Section 1225(b)(2)(A) of title 11, United States Code, is 
amended by inserting ``or for a domestic support obligation 
that first becomes payable after the date of the filing of the 
petition'' after ``dependent of the debtor''.

SEC. 219. COLLECTION OF CHILD SUPPORT.

  (a) Duties of Trustee Under Chapter 7.--Section 704 of title 
11, United States Code, as amended by section 102, is amended--
          (1) in subsection (a)--
                  (A) in paragraph (8), by striking ``and'' at 
                the end;
                  (B) in paragraph (9), by striking the period 
                and inserting a semicolon; and
                  (C) by adding at the end the following:
          ``(10) if with respect to the debtor there is a claim 
        for a domestic support obligation, provide the 
        applicable notice specified in subsection (c); and''; 
        and
          (2) by adding at the end the following:
  ``(c)(1) In a case described in subsection (a)(10) to which 
subsection (a)(10) applies, the trustee shall--
          ``(A)(i) provide written notice to the holder of the 
        claim described in subsection (a)(10) of such claim and 
        of the right of such holder to use the services of the 
        State child support enforcement agency established 
        under sections 464 and 466 of the Social Security Act 
        for the State in which such holder resides, for 
        assistance in collecting child support during and after 
        the case under this title;
          ``(ii) include in the notice provided under clause 
        (i) the address and telephone number of such State 
        child support enforcement agency; and
          ``(iii) include in the notice provided under clause 
        (i) an explanation of the rights of such holder to 
        payment of such claim under this chapter;
          ``(B)(i) provide written notice to such State child 
        support enforcement agency of such claim; and
          ``(ii) include in the notice provided under clause 
        (i) the name, address, and telephone number of such 
        holder; and
          ``(C) at such time as the debtor is granted a 
        discharge under section 727, provide written notice to 
        such holder and to such State child support enforcement 
        agency of--
                  ``(i) the granting of the discharge;
                  ``(ii) the last recent known address of the 
                debtor;
                  ``(iii) the last recent known name and 
                address of the debtor's employer; and
                  ``(iv) the name of each creditor that holds a 
                claim that--
                          ``(I) is not discharged under 
                        paragraph (2), (4), or (14A) of section 
                        523(a); or
                          ``(II) was reaffirmed by the debtor 
                        under section 524(c).
  ``(2)(A) The holder of a claim described in subsection 
(a)(10) or the State child support enforcement agency of the 
State in which such holder resides may request from a creditor 
described in paragraph (1)(C)(iv) the last known address of the 
debtor.
  ``(B) Notwithstanding any other provision of law, a creditor 
that makes a disclosure of a last known address of a debtor in 
connection with a request made under subparagraph (A) shall not 
be liable by reason of making such disclosure.''.
  (b) Duties of Trustee Under Chapter 11.--Section 1106 of 
title 11, United States Code, is amended--
          (1) in subsection (a)--
                  (A) in paragraph (6), by striking ``and'' at 
                the end;
                  (B) in paragraph (7), by striking the period 
                and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(8) if with respect to the debtor there is a claim 
        for a domestic support obligation, provide the 
        applicable notice specified in subsection (c).''; and
          (2) by adding at the end the following:
  ``(c)(1) In a case described in subsection (a)(8) to which 
subsection (a)(8) applies, the trustee shall--
          ``(A)(i) provide written notice to the holder of the 
        claim described in subsection (a)(8) of such claim and 
        of the right of such holder to use the services of the 
        State child support enforcement agency established 
        under sections 464 and 466 of the Social Security Act 
        for the State in which such holder resides, for 
        assistance in collecting child support during and after 
        the case under this title; and
          ``(ii) include in the notice required by clause (i) 
        the address and telephone number of such State child 
        support enforcement agency;
          ``(B)(i) provide written notice to such State child 
        support enforcement agency of such claim; and
          ``(ii) include in the notice required by clause (i) 
        the name, address, and telephone number of such holder; 
        and
          ``(C) at such time as the debtor is granted a 
        discharge under section 1141, provide written notice to 
        such holder and to such State child support enforcement 
        agency of--
                  ``(i) the granting of the discharge;
                  ``(ii) the last recent known address of the 
                debtor;
                  ``(iii) the last recent known name and 
                address of the debtor's employer; and
                  ``(iv) the name of each creditor that holds a 
                claim that--
                          ``(I) is not discharged under 
                        paragraph (2), (4), or (14A) of section 
                        523(a); or
                          ``(II) was reaffirmed by the debtor 
                        under section 524(c).
  ``(2)(A) The holder of a claim described in subsection (a)(8) 
or the State child enforcement support agency of the State in 
which such holder resides may request from a creditor described 
in paragraph (1)(C)(iv) the last known address of the debtor.
  ``(B) Notwithstanding any other provision of law, a creditor 
that makes a disclosure of a last known address of a debtor in 
connection with a request made under subparagraph (A) shall not 
be liable by reason of making such disclosure.''.
  (c) Duties of Trustee Under Chapter 12.--Section 1202 of 
title 11, United States Code, is amended--
          (1) in subsection (b)--
                  (A) in paragraph (4), by striking ``and'' at 
                the end;
                  (B) in paragraph (5), by striking the period 
                and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(6) if with respect to the debtor there is a claim 
        for a domestic support obligation, provide the 
        applicable notice specified in subsection (c).''; and
          (2) by adding at the end the following:
  ``(c)(1) In a case described in subsection (b)(6) to which 
subsection (b)(6) applies, the trustee shall--
          ``(A)(i) provide written notice to the holder of the 
        claim described in subsection (b)(6) of such claim and 
        of the right of such holder to use the services of the 
        State child support enforcement agency established 
        under sections 464 and 466 of the Social Security Act 
        for the State in which such holder resides, for 
        assistance in collecting child support during and after 
        the case under this title; and
          ``(ii) include in the notice provided under clause 
        (i) the address and telephone number of such State 
        child support enforcement agency;
          ``(B)(i) provide written notice to such State child 
        support enforcement agency of such claim; and
          ``(ii) include in the notice provided under clause 
        (i) the name, address, and telephone number of such 
        holder; and
          ``(C) at such time as the debtor is granted a 
        discharge under section 1228, provide written notice to 
        such holder and to such State child support enforcement 
        agency of--
                  ``(i) the granting of the discharge;
                  ``(ii) the last recent known address of the 
                debtor;
                  ``(iii) the last recent known name and 
                address of the debtor's employer; and
                  ``(iv) the name of each creditor that holds a 
                claim that--
                          ``(I) is not discharged under 
                        paragraph (2), (4), or (14A) of section 
                        523(a); or
                          ``(II) was reaffirmed by the debtor 
                        under section 524(c).
  ``(2)(A) The holder of a claim described in subsection (b)(6) 
or the State child support enforcement agency of the State in 
which such holder resides may request from a creditor described 
in paragraph (1)(C)(iv) the last known address of the debtor.
  ``(B) Notwithstanding any other provision of law, a creditor 
that makes a disclosure of a last known address of a debtor in 
connection with a request made under subparagraph (A) shall not 
be liable by reason of making that disclosure.''.
  (d) Duties of Trustee Under Chapter 13.--Section 1302 of 
title 11, United States Code, is amended--
          (1) in subsection (b)--
                  (A) in paragraph (4), by striking ``and'' at 
                the end;
                  (B) in paragraph (5), by striking the period 
                and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(6) if with respect to the debtor there is a claim 
        for a domestic support obligation, provide the 
        applicable notice specified in subsection (d).''; and
          (2) by adding at the end the following:
  ``(d)(1) In a case described in subsection (b)(6) to which 
subsection (b)(6) applies, the trustee shall--
          ``(A)(i) provide written notice to the holder of the 
        claim described in subsection (b)(6) of such claim and 
        of the right of such holder to use the services of the 
        State child support enforcement agency established 
        under sections 464 and 466 of the Social Security Act 
        for the State in which such holder resides, for 
        assistance in collecting child support during and after 
        the case under this title; and
          ``(ii) include in the notice provided under clause 
        (i) the address and telephone number of such State 
        child support enforcement agency;
          ``(B)(i) provide written notice to such State child 
        support enforcement agency of such claim; and
          ``(ii) include in the notice provided under clause 
        (i) the name, address, and telephone number of such 
        holder; and
          ``(C) at such time as the debtor is granted a 
        discharge under section 1328, provide written notice to 
        such holder and to such State child support enforcement 
        agency of--
                  ``(i) the granting of the discharge;
                  ``(ii) the last recent known address of the 
                debtor;
                  ``(iii) the last recent known name and 
                address of the debtor's employer; and
                  ``(iv) the name of each creditor that holds a 
                claim that--
                          ``(I) is not discharged under 
                        paragraph (2) or (4) of section 523(a); 
                        or
                          ``(II) was reaffirmed by the debtor 
                        under section 524(c).
  ``(2)(A) The holder of a claim described in subsection (b)(6) 
or the State child support enforcement agency of the State in 
which such holder resides may request from a creditor described 
in paragraph (1)(C)(iv) the last known address of the debtor.
  ``(B) Notwithstanding any other provision of law, a creditor 
that makes a disclosure of a last known address of a debtor in 
connection with a request made under subparagraph (A) shall not 
be liable by reason of making that disclosure.''.

                 Subtitle C--Other Consumer Protections

SEC. 221. AMENDMENTS TO DISCOURAGE ABUSIVE BANKRUPTCY FILINGS.

  Section 110 of title 11, United States Code, is amended--
          (1) in subsection (b)--
                  (A) in paragraph (1), by adding at the end 
                the following: ``If a bankruptcy petition 
                preparer is not an individual, then an officer, 
                principal, responsible person, or partner of 
                the bankruptcy petition preparer shall be 
                required to--
          ``(A) sign the document for filing; and
          ``(B) print on the document the name and address of 
        that officer, principal, responsible person, or 
        partner.''; and
                  (B) by striking paragraph (2) and inserting 
                the following:
  ``(2)(A) Before preparing any document for filing or 
accepting any fees from a debtor, the bankruptcy petition 
preparer shall provide to the debtor a written notice which 
shall be on an official form prescribed by the Judicial 
Conference of the United States in accordance with rule 9009 of 
the Federal Rules of Bankruptcy Procedure.
  ``(B) The notice under subparagraph (A)--
          ``(i) shall inform the debtor in simple language that 
        a bankruptcy petition preparer is not an attorney and 
        may not practice law or give legal advice;
          ``(ii) may contain a description of examples of legal 
        advice that a bankruptcy petition preparer is not 
        authorized to give, in addition to any advice that the 
        preparer may not give by reason of subsection (e)(2); 
        and
          ``(iii) shall--
                  ``(I) be signed by the debtor and, under 
                penalty of perjury, by the bankruptcy petition 
                preparer; and
                  ``(II) be filed with any document for 
                filing.'';
          (2) in subsection (c)--
                  (A) in paragraph (2)--
                          (i) by striking ``(2) For purposes'' 
                        and inserting ``(2)(A) Subject to 
                        subparagraph (B), for purposes''; and
                          (ii) by adding at the end the 
                        following:
  ``(B) If a bankruptcy petition preparer is not an individual, 
the identifying number of the bankruptcy petition preparer 
shall be the Social Security account number of the officer, 
principal, responsible person, or partner of the bankruptcy 
petition preparer.''; and
                  (B) by striking paragraph (3);
          (3) in subsection (d)--
                  (A) by striking ``(d)(1)'' and inserting 
                ``(d)''; and
                  (B) by striking paragraph (2);
          (4) in subsection (e)--
                  (A) by striking paragraph (2); and
                  (B) by adding at the end the following:
  ``(2)(A) A bankruptcy petition preparer may not offer a 
potential bankruptcy debtor any legal advice, including any 
legal advice described in subparagraph (B).
  ``(B) The legal advice referred to in subparagraph (A) 
includes advising the debtor--
          ``(i) whether--
                  ``(I) to file a petition under this title; or
                  ``(II) commencing a case under chapter 7, 11, 
                12, or 13 is appropriate;
          ``(ii) whether the debtor's debts will be discharged 
        in a case under this title;
          ``(iii) whether the debtor will be able to retain the 
        debtor's home, car, or other property after commencing 
        a case under this title;
          ``(iv) concerning--
                  ``(I) the tax consequences of a case brought 
                under this title; or
                  ``(II) the dischargeability of tax claims;
          ``(v) whether the debtor may or should promise to 
        repay debts to a creditor or enter into a reaffirmation 
        agreement with a creditor to reaffirm a debt;
          ``(vi) concerning how to characterize the nature of 
        the debtor's interests in property or the debtor's 
        debts; or
          ``(vii) concerning bankruptcy procedures and 
        rights.'';
          (5) in subsection (f)--
                  (A) by striking ``(f)(1)'' and inserting 
                ``(f)''; and
                  (B) by striking paragraph (2);
          (6) in subsection (g)--
                  (A) by striking ``(g)(1)'' and inserting 
                ``(g)''; and
                  (B) by striking paragraph (2);
          (7) in subsection (h)--
                  (A) by redesignating paragraphs (1) through 
                (4) as paragraphs (2) through (5), 
                respectively;
                  (B) by inserting before paragraph (2), as so 
                redesignated, the following:
  ``(1) The Supreme Court may promulgate rules under section 
2075 of title 28, or the Judicial Conference of the United 
States may prescribe guidelines, for setting a maximum 
allowable fee chargeable by a bankruptcy petition preparer. A 
bankruptcy petition preparer shall notify the debtor of any 
such maximum amount before preparing any document for filing 
for a debtor or accepting any fee from the debtor.'';
                  (C) in paragraph (2), as so redesignated--
                          (i) by striking ``Within 10 days 
                        after the date of the filing of a 
                        petition, a bankruptcy petition 
                        preparer shall file a'' and inserting 
                        ``A'';
                          (ii) by inserting ``by the bankruptcy 
                        petition preparer shall be filed 
                        together with the petition,'' after 
                        ``perjury''; and
                          (iii) by adding at the end the 
                        following: ``If rules or guidelines 
                        setting a maximum fee for services have 
                        been promulgated or prescribed under 
                        paragraph (1), the declaration under 
                        this paragraph shall include a 
                        certification that the bankruptcy 
                        petition preparer complied with the 
                        notification requirement under 
                        paragraph (1).'';
                  (D) by striking paragraph (3), as so 
                redesignated, and inserting the following:
  ``(3)(A) The court shall disallow and order the immediate 
turnover to the bankruptcy trustee any fee referred to in 
paragraph (2) found to be in excess of the value of any 
services--
          ``(i) rendered by the bankruptcy petition preparer 
        during the 12-month period immediately preceding the 
        date of the filing of the petition; or
          ``(ii) found to be in violation of any rule or 
        guideline promulgated or prescribed under paragraph 
        (1).
  ``(B) All fees charged by a bankruptcy petition preparer may 
be forfeited in any case in which the bankruptcy petition 
preparer fails to comply with this subsection or subsection 
(b), (c), (d), (e), (f), or (g).
  ``(C) An individual may exempt any funds recovered under this 
paragraph under section 522(b).''; and
                  (E) in paragraph (4), as so redesignated, by 
                striking ``or the United States trustee'' and 
                inserting ``the United States trustee (or the 
                bankruptcy administrator, if any) or the court, 
                on the initiative of the court,'';
          (8) in subsection (i)(1), by striking the matter 
        preceding subparagraph (A) and inserting the following:
  ``(i)(1) If a bankruptcy petition preparer violates this 
section or commits any act that the court finds to be 
fraudulent, unfair, or deceptive, on the motion of the debtor, 
trustee, United States trustee (or the bankruptcy 
administrator, if any), and after notice and a hearing, the 
court shall order the bankruptcy petition preparer to pay to 
the debtor--'';
          (9) in subsection (j)--
                  (A) in paragraph (2)--
                          (i) in subparagraph (A)(i)(I), by 
                        striking ``a violation of which 
                        subjects a person to criminal 
                        penalty'';
                          (ii) in subparagraph (B)--
                                  (I) by striking ``or has not 
                                paid a penalty'' and inserting 
                                ``has not paid a penalty''; and
                                  (II) by inserting ``or failed 
                                to disgorge all fees ordered by 
                                the court'' after ``a penalty 
                                imposed under this section,'';
                  (B) by redesignating paragraph (3) as 
                paragraph (4); and
                  (C) by inserting after paragraph (2) the 
                following:
  ``(3) The court, as part of its contempt power, may enjoin a 
bankruptcy petition preparer that has failed to comply with a 
previous order issued under this section. The injunction under 
this paragraph may be issued on the motion of the court, the 
trustee, or the United States trustee (or the bankruptcy 
administrator, if any).''; and
          (10) by adding at the end the following:
  ``(l)(1) A bankruptcy petition preparer who fails to comply 
with any provision of subsection (b), (c), (d), (e), (f), (g), 
or (h) may be fined not more than $500 for each such failure.
  ``(2) The court shall triple the amount of a fine assessed 
under paragraph (1) in any case in which the court finds that a 
bankruptcy petition preparer--
          ``(A) advised the debtor to exclude assets or income 
        that should have been included on applicable schedules;
          ``(B) advised the debtor to use a false Social 
        Security account number;
          ``(C) failed to inform the debtor that the debtor was 
        filing for relief under this title; or
          ``(D) prepared a document for filing in a manner that 
        failed to disclose the identity of the bankruptcy 
        petition preparer.
  ``(3) A debtor, trustee, creditor, or United States trustee 
(or the bankruptcy administrator, if any) may file a motion for 
an order imposing a fine on the bankruptcy petition preparer 
for any violation of this section.
  ``(4)(A) Fines imposed under this subsection in judicial 
districts served by United States trustees shall be paid to the 
United States trustee, who shall deposit an amount equal to 
such fines in a special account of the United States Trustee 
System Fund referred to in section 586(e)(2) of title 28. 
Amounts deposited under this subparagraph shall be available to 
fund the enforcement of this section on a national basis.
  ``(B) Fines imposed under this subsection in judicial 
districts served by bankruptcy administrators shall be 
deposited as offsetting receipts to the fund established under 
section 1931 of title 28, and shall remain available until 
expended to reimburse any appropriation for the amount paid out 
of such appropriation for expenses of the operation and 
maintenance of the courts of the United States.''.

SEC. 222. SENSE OF CONGRESS.

  It is the sense of Congress that States should develop 
curricula relating to the subject of personal finance, designed 
for use in elementary and secondary schools.

SEC. 223. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED STATES CODE.

  Section 507(a) of title 11, United States Code, as amended by 
section 212, is amended by inserting after paragraph (9) the 
following:
          ``(10) Tenth, allowed claims for death or personal 
        injury resulting from the operation of a motor vehicle 
        or vessel if such operation was unlawful because the 
        debtor was intoxicated from using alcohol, a drug, or 
        another substance.''.

SEC. 224. PROTECTION OF RETIREMENT SAVINGS IN BANKRUPTCY.

  (a) In General.--Section 522 of title 11, United States Code, 
is amended--
          (1) in subsection (b)--
                  (A) in paragraph (2)--
                          (i) in subparagraph (A), by striking 
                        ``and'' at the end;
                          (ii) in subparagraph (B), by striking 
                        the period at the end and inserting ``; 
                        and'';
                          (iii) by adding at the end the 
                        following:
          ``(C) retirement funds to the extent that those funds 
        are in a fund or account that is exempt from taxation 
        under section 401, 403, 408, 408A, 414, 457, or 501(a) 
        of the Internal Revenue Code of 1986.''; and
                          (iv) by striking ``(2)(A) any 
                        property'' and inserting:
  ``(3) Property listed in this paragraph is--
          ``(A) any property'';
                  (B) by striking paragraph (1) and inserting:
  ``(2) Property listed in this paragraph is property that is 
specified under subsection (d), unless the State law that is 
applicable to the debtor under paragraph (3)(A) specifically 
does not so authorize.'';
                  (C) by striking ``(b) Notwithstanding'' and 
                inserting ``(b)(1) Notwithstanding'';
                  (D) by striking ``paragraph (2)'' each place 
                it appears and inserting ``paragraph (3)'';
                  (E) by striking ``paragraph (1)'' each place 
                it appears and inserting ``paragraph (2)'';
                  (F) by striking ``Such property is--''; and
                  (G) by adding at the end the following:
  ``(4) For purposes of paragraph (3)(C) and subsection 
(d)(12), the following shall apply:
          ``(A) If the retirement funds are in a retirement 
        fund that has received a favorable determination under 
        section 7805 of the Internal Revenue Code of 1986, and 
        that determination is in effect as of the date of the 
        filing of the petition in a case under this title, 
        those funds shall be presumed to be exempt from the 
        estate.
          ``(B) If the retirement funds are in a retirement 
        fund that has not received a favorable determination 
        under such section 7805, those funds are exempt from 
        the estate if the debtor demonstrates that--
                  ``(i) no prior determination to the contrary 
                has been made by a court or the Internal 
                Revenue Service; and
                  ``(ii)(I) the retirement fund is in 
                substantial compliance with the applicable 
                requirements of the Internal Revenue Code of 
                1986; or
                  ``(II) the retirement fund fails to be in 
                substantial compliance with the applicable 
                requirements of the Internal Revenue Code of 
                1986 and the debtor is not materially 
                responsible for that failure.
          ``(C) A direct transfer of retirement funds from 1 
        fund or account that is exempt from taxation under 
        section 401, 403, 408, 408A, 414, 457, or 501(a) of the 
        Internal Revenue Code of 1986, under section 401(a)(31) 
        of the Internal Revenue Code of 1986, or otherwise, 
        shall not cease to qualify for exemption under 
        paragraph (3)(C) or subsection (d)(12) by reason of 
        such direct transfer.
          ``(D)(i) Any distribution that qualifies as an 
        eligible rollover distribution within the meaning of 
        section 402(c) of the Internal Revenue Code of 1986 or 
        that is described in clause (ii) shall not cease to 
        qualify for exemption under paragraph (3)(C) or 
        subsection (d)(12) by reason of such distribution.
          ``(ii) A distribution described in this clause is an 
        amount that--
                  ``(I) has been distributed from a fund or 
                account that is exempt from taxation under 
                section 401, 403, 408, 408A, 414, 457, or 
                501(a) of the Internal Revenue Code of 1986; 
                and
                  ``(II) to the extent allowed by law, is 
                deposited in such a fund or account not later 
                than 60 days after the distribution of such 
                amount.''; and
          (2) in subsection (d)--
                  (A) in the matter preceding paragraph (1), by 
                striking ``subsection (b)(1)'' and inserting 
                ``subsection (b)(2)''; and
                  (B) by adding at the end the following:
          ``(12) Retirement funds to the extent that those 
        funds are in a fund or account that is exempt from 
        taxation under section 401, 403, 408, 408A, 414, 457, 
        or 501(a) of the Internal Revenue Code of 1986.''.
  (b) Automatic Stay.--Section 362(b) of title 11, United 
States Code, is amended--
          (1) in paragraph (17), by striking ``or'' at the end;
          (2) in paragraph (18), by striking the period and 
        inserting a semicolon; and
          (3) by inserting after paragraph (18) the following:
          ``(19) under subsection (a), of withholding of income 
        from a debtor's wages and collection of amounts 
        withheld, under the debtor's agreement authorizing that 
        withholding and collection for the benefit of a 
        pension, profit-sharing, stock bonus, or other plan 
        established under section 401, 403, 408, 408A, 414, 
        457, or 501(c) of the Internal Revenue Code of 1986, 
        that is sponsored by the employer of the debtor, or an 
        affiliate, successor, or predecessor of such employer--
                  ``(A) to the extent that the amounts withheld 
                and collected are used solely for payments 
                relating to a loan from a plan under section 
                408(b)(1) of the Employee Retirement Income 
                Security Act of 1974 or is subject to section 
                72(p) of the Internal Revenue Code of 1986; or
                  ``(B) a loan from a thrift savings plan 
                permitted under subchapter III of chapter 84 of 
                title 5, that satisfies the requirements of 
                section 8433(g) of such title;
        but nothing in this paragraph may be construed to 
        provide that any loan made under a governmental plan 
        under section 414(d), or a contract or account under 
        section 403(b), of the Internal Revenue Code of 1986 
        constitutes a claim or a debt under this title;''.
  (c) Exceptions To Discharge.--Section 523(a) of title 11, 
United States Code, as amended by section 215, is amended by 
inserting after paragraph (17) the following:
          ``(18) owed to a pension, profit-sharing, stock 
        bonus, or other plan established under section 401, 
        403, 408, 408A, 414, 457, or 501(c) of the Internal 
        Revenue Code of 1986, under--
                  ``(A) a loan permitted under section 
                408(b)(1) of the Employee Retirement Income 
                Security Act of 1974, or subject to section 
                72(p) of the Internal Revenue Code of 1986; or
                  ``(B) a loan from a thrift savings plan 
                permitted under subchapter III of chapter 84 of 
                title 5, that satisfies the requirements of 
                section 8433(g) of such title;
        but nothing in this paragraph may be construed to 
        provide that any loan made under a governmental plan 
        under section 414(d), or a contract or account under 
        section 403(b), of the Internal Revenue Code of 1986 
        constitutes a claim or a debt under this title; or''.
  (d) Plan Contents.--Section 1322 of title 11, United States 
Code, is amended by adding at the end the following:
  ``(f) A plan may not materially alter the terms of a loan 
described in section 362(b)(19) and any amounts required to 
repay such loan shall not constitute `disposable income' under 
section 1325.''.
  (e) Asset Limitation.--
          (1) Limitation.--Section 522 of title 11, United 
        States Code, is amended by adding at the end the 
        following:
  ``(n) For assets in individual retirement accounts described 
in section 408 or 408A of the Internal Revenue Code of 1986, 
other than a simplified employee pension under section 408(k) 
of such Code or a simple retirement account under section 
408(p) of such Code, the aggregate value of such assets 
exempted under this section, without regard to amounts 
attributable to rollover contributions under section 402(c), 
402(e)(6), 403(a)(4), 403(a)(5), and 403(b)(8) of the Internal 
Revenue Code of 1986, and earnings thereon, shall not exceed 
$1,000,000 in a case filed by a debtor who is an individual, 
except that such amount may be increased if the interests of 
justice so require.''.
          (2) Adjustment of dollar amounts.--Paragraphs (1) and 
        (2) of section 104(b) of title 11, United States Code, 
        are amended by inserting ``522(n),'' after ``522(d),''.

SEC. 225. PROTECTION OF EDUCATION SAVINGS IN BANKRUPTCY.

  (a) Exclusions.--Section 541 of title 11, United States Code, 
is amended--
          (1) in subsection (b)--
                  (A) in paragraph (4), by striking ``or'' at 
                the end;
                  (B) by redesignating paragraph (5) as 
                paragraph (9); and
                  (C) by inserting after paragraph (4) the 
                following:
          ``(5) funds placed in an education individual 
        retirement account (as defined in section 530(b)(1) of 
        the Internal Revenue Code of 1986) not later than 365 
        days before the date of the filing of the petition in a 
        case under this title, but--
                  ``(A) only if the designated beneficiary of 
                such account was a child, stepchild, 
                grandchild, or stepgrandchild of the debtor for 
                the taxable year for which funds were placed in 
                such account;
                  ``(B) only to the extent that such funds--
                          ``(i) are not pledged or promised to 
                        any entity in connection with any 
                        extension of credit; and
                          ``(ii) are not excess contributions 
                        (as described in section 4973(e) of the 
                        Internal Revenue Code of 1986); and
                  ``(C) in the case of funds placed in all such 
                accounts having the same designated beneficiary 
                not earlier than 720 days nor later than 365 
                days before such date, only so much of such 
                funds as does not exceed $5,000;
          ``(6) funds used to purchase a tuition credit or 
        certificate or contributed to an account in accordance 
        with section 529(b)(1)(A) of the Internal Revenue Code 
        of 1986 under a qualified State tuition program (as 
        defined in section 529(b)(1) of such Code) not later 
        than 365 days before the date of the filing of the 
        petition in a case under this title, but--
                  ``(A) only if the designated beneficiary of 
                the amounts paid or contributed to such tuition 
                program was a child, stepchild, grandchild, or 
                stepgrandchild of the debtor for the taxable 
                year for which funds were paid or contributed;
                  ``(B) with respect to the aggregate amount 
                paid or contributed to such program having the 
                same designated beneficiary, only so much of 
                such amount as does not exceed the total 
                contributions permitted under section 529(b)(7) 
                of such Code with respect to such beneficiary, 
                as adjusted beginning on the date of the filing 
                of the petition in a case under this title by 
                the annual increase or decrease (rounded to the 
                nearest tenth of 1 percent) in the education 
                expenditure category of the Consumer Price 
                Index prepared by the Department of Labor; and
                  ``(C) in the case of funds paid or 
                contributed to such program having the same 
                designated beneficiary not earlier than 720 
                days nor later than 365 days before such date, 
                only so much of such funds as does not exceed 
                $5,000;''; and
          (2) by adding at the end the following:
  ``(e) In determining whether any of the relationships 
specified in paragraph (5)(A) or (6)(A) of subsection (b) 
exists, a legally adopted child of an individual (and a child 
who is a member of an individual's household, if placed with 
such individual by an authorized placement agency for legal 
adoption by such individual), or a foster child of an 
individual (if such child has as the child's principal place of 
abode the home of the debtor and is a member of the debtor's 
household) shall be treated as a child of such individual by 
blood.''.
  (b) Debtor's Duties.--Section 521 of title 11, United States 
Code, as amended by section 106, is amended by adding at the 
end the following:
  ``(c) In addition to meeting the requirements under 
subsection (a), a debtor shall file with the court a record of 
any interest that a debtor has in an education individual 
retirement account (as defined in section 530(b)(1) of the 
Internal Revenue Code of 1986) or under a qualified State 
tuition program (as defined in section 529(b)(1) of such 
Code).''.

SEC. 226. DEFINITIONS.

  (a) Definitions.--Section 101 of title 11, United States 
Code, is amended--
          (1) by inserting after paragraph (2) the following:
          ``(3) `assisted person' means any person whose debts 
        consist primarily of consumer debts and the value of 
        whose nonexempt property is less than $150,000;'';
          (2) by inserting after paragraph (4) the following:
          ``(4A) `bankruptcy assistance' means any goods or 
        services sold or otherwise provided to an assisted 
        person with the express or implied purpose of providing 
        information, advice, counsel, document preparation, or 
        filing, or attendance at a creditors' meeting or 
        appearing in a proceeding on behalf of another or 
        providing legal representation with respect to a case 
        or proceeding under this title;''; and
          (3) by inserting after paragraph (12) the following:
          ``(12A) `debt relief agency' means any person who 
        provides any bankruptcy assistance to an assisted 
        person in return for the payment of money or other 
        valuable consideration, or who is a bankruptcy petition 
        preparer under section 110, but does not include--
                  ``(A) any person who is an officer, director, 
                employee, or agent of a person who provides 
                such assistance or of the bankruptcy petition 
                preparer;
                  ``(B) a nonprofit organization that is exempt 
                from taxation under section 501(c)(3) of the 
                Internal Revenue Code of 1986;
                  ``(C) a creditor of such assisted person, to 
                the extent that the creditor is assisting such 
                assisted person to restructure any debt owed by 
                such assisted person to the creditor;
                  ``(D) a depository institution (as defined in 
                section 3 of the Federal Deposit Insurance Act) 
                or any Federal credit union or State credit 
                union (as those terms are defined in section 
                101 of the Federal Credit Union Act), or any 
                affiliate or subsidiary of such depository 
                institution or credit union; or
                  ``(E) an author, publisher, distributor, or 
                seller of works subject to copyright protection 
                under title 17, when acting in such 
                capacity.''.
  (b) Conforming Amendment.--Section 104(b) of title 11, United 
States Code, is amended by inserting ``101(3),'' after 
``sections'' each place it appears.

SEC. 227. RESTRICTIONS ON DEBT RELIEF AGENCIES.

  (a) Enforcement.--Subchapter II of chapter 5 of title 11, 
United States Code, is amended by adding at the end the 
following:

``Sec. 526. Restrictions on debt relief agencies

  ``(a) A debt relief agency shall not--
          ``(1) fail to perform any service that such agency 
        informed an assisted person or prospective assisted 
        person it would provide in connection with a case or 
        proceeding under this title;
          ``(2) make any statement, or counsel or advise any 
        assisted person or prospective assisted person to make 
        a statement in a document filed in a case or proceeding 
        under this title, that is untrue and misleading, or 
        that upon the exercise of reasonable care, should have 
        been known by such agency to be untrue or misleading;
          ``(3) misrepresent to any assisted person or 
        prospective assisted person, directly or indirectly, 
        affirmatively or by material omission, with respect 
        to--
                  ``(A) the services that such agency will 
                provide to such person; or
                  ``(B) the benefits and risks that may result 
                if such person becomes a debtor in a case under 
                this title; or
          ``(4) advise an assisted person or prospective 
        assisted person to incur more debt in contemplation of 
        such person filing a case under this title or to pay an 
        attorney or bankruptcy petition preparer fee or charge 
        for services performed as part of preparing for or 
        representing a debtor in a case under this title.
  ``(b) Any waiver by any assisted person of any protection or 
right provided under this section shall not be enforceable 
against the debtor by any Federal or State court or any other 
person, but may be enforced against a debt relief agency.
  ``(c)(1) Any contract for bankruptcy assistance between a 
debt relief agency and an assisted person that does not comply 
with the material requirements of this section, section 527, or 
section 528 shall be void and may not be enforced by any 
Federal or State court or by any other person, other than such 
assisted person.
  ``(2) Any debt relief agency shall be liable to an assisted 
person in the amount of any fees or charges in connection with 
providing bankruptcy assistance to such person that such debt 
relief agency has received, for actual damages, and for 
reasonable attorneys' fees and costs if such agency is found, 
after notice and a hearing, to have--
          ``(A) intentionally or negligently failed to comply 
        with any provision of this section, section 527, or 
        section 528 with respect to a case or proceeding under 
        this title for such assisted person;
          ``(B) provided bankruptcy assistance to an assisted 
        person in a case or proceeding under this title that is 
        dismissed or converted to a case under another chapter 
        of this title because of such agency's intentional or 
        negligent failure to file any required document 
        including those specified in section 521; or
          ``(C) intentionally or negligently disregarded the 
        material requirements of this title or the Federal 
        Rules of Bankruptcy Procedure applicable to such 
        agency.
  ``(3) In addition to such other remedies as are provided 
under State law, whenever the chief law enforcement officer of 
a State, or an official or agency designated by a State, has 
reason to believe that any person has violated or is violating 
this section, the State--
          ``(A) may bring an action to enjoin such violation;
          ``(B) may bring an action on behalf of its residents 
        to recover the actual damages of assisted persons 
        arising from such violation, including any liability 
        under paragraph (2); and
          ``(C) in the case of any successful action under 
        subparagraph (A) or (B), shall be awarded the costs of 
        the action and reasonable attorneys' fees as determined 
        by the court.
  ``(4) The district courts of the United States for districts 
located in the State shall have concurrent jurisdiction of any 
action under subparagraph (A) or (B) of paragraph (3).
  ``(5) Notwithstanding any other provision of Federal law and 
in addition to any other remedy provided under Federal or State 
law, if the court, on its own motion or on the motion of the 
United States trustee or the debtor, finds that a person 
intentionally violated this section, or engaged in a clear and 
consistent pattern or practice of violating this section, the 
court may--
          ``(A) enjoin the violation of such section; or
          ``(B) impose an appropriate civil penalty against 
        such person.
  ``(d) No provision of this section, section 527, or section 
528 shall--
          ``(1) annul, alter, affect, or exempt any person 
        subject to such sections from complying with any law of 
        any State except to the extent that such law is 
        inconsistent with those sections, and then only to the 
        extent of the inconsistency; or
          ``(2) be deemed to limit or curtail the authority or 
        ability--
                  ``(A) of a State or subdivision or 
                instrumentality thereof, to determine and 
                enforce qualifications for the practice of law 
                under the laws of that State; or
                  ``(B) of a Federal court to determine and 
                enforce the qualifications for the practice of 
                law before that court.''.
  (b) Conforming Amendment.--The table of sections for chapter 
5 of title 11, United States Code, is amended by inserting 
after the item relating to section 525, the following:

``526. Restrictions on debt relief agencies.''.

SEC. 228. DISCLOSURES.

  (a) Disclosures.--Subchapter II of chapter 5 of title 11, 
United States Code, as amended by section 227, is amended by 
adding at the end the following:

``Sec. 527. Disclosures

  ``(a) A debt relief agency providing bankruptcy assistance to 
an assisted person shall provide--
          ``(1) the written notice required under section 
        342(b)(1); and
          ``(2) to the extent not covered in the written notice 
        described in paragraph (1), and not later than 3 
        business days after the first date on which a debt 
        relief agency first offers to provide any bankruptcy 
        assistance services to an assisted person, a clear and 
        conspicuous written notice advising assisted persons 
        that--
                  ``(A) all information that the assisted 
                person is required to provide with a petition 
                and thereafter during a case under this title 
                is required to be complete, accurate, and 
                truthful;
                  ``(B) all assets and all liabilities are 
                required to be completely and accurately 
                disclosed in the documents filed to commence 
                the case, and the replacement value of each 
                asset as defined in section 506 must be stated 
                in those documents where requested after 
                reasonable inquiry to establish such value;
                  ``(C) current monthly income, the amounts 
                specified in section 707(b)(2), and, in a case 
                under chapter 13 of this title, disposable 
                income (determined in accordance with section 
                707(b)(2)), are required to be stated after 
                reasonable inquiry; and
                  ``(D) information that an assisted person 
                provides during their case may be audited 
                pursuant to this title, and that failure to 
                provide such information may result in 
                dismissal of the case under this title or other 
                sanction, including a criminal sanction.
  ``(b) A debt relief agency providing bankruptcy assistance to 
an assisted person shall provide each assisted person at the 
same time as the notices required under subsection (a)(1) the 
following statement, to the extent applicable, or one 
substantially similar. The statement shall be clear and 
conspicuous and shall be in a single document separate from 
other documents or notices provided to the assisted person:
  `` `IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE 
SERVICES FROM AN ATTORNEY OR BANKRUPTCY PETITION PREPARER.
  `` `If you decide to seek bankruptcy relief, you can 
represent yourself, you can hire an attorney to represent you, 
or you can get help in some localities from a bankruptcy 
petition preparer who is not an attorney. THE LAW REQUIRES AN 
ATTORNEY OR BANKRUPTCY PETITION PREPARER TO GIVE YOU A WRITTEN 
CONTRACT SPECIFYING WHAT THE ATTORNEY OR BANKRUPTCY PETITION 
PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. Ask to see 
the contract before you hire anyone.
  `` `The following information helps you understand what must 
be done in a routine bankruptcy case to help you evaluate how 
much service you need. Although bankruptcy can be complex, many 
cases are routine.
  `` `Before filing a bankruptcy case, either you or your 
attorney should analyze your eligibility for different forms of 
debt relief available under the Bankruptcy Code and which form 
of relief is most likely to be beneficial for you. Be sure you 
understand the relief you can obtain and its limitations. To 
file a bankruptcy case, documents called a Petition, Schedules 
and Statement of Financial Affairs, as well as in some cases a 
Statement of Intention need to be prepared correctly and filed 
with the bankruptcy court. You will have to pay a filing fee to 
the bankruptcy court. Once your case starts, you will have to 
attend the required first meeting of creditors where you may be 
questioned by a court official called a `trustee' and by 
creditors.
  `` `If you choose to file a chapter 7 case, you may be asked 
by a creditor to reaffirm a debt. You may want help deciding 
whether to do so. A creditor is not permitted to coerce you 
into reaffirming your debts.
  `` `If you choose to file a chapter 13 case in which you 
repay your creditors what you can afford over 3 to 5 years, you 
may also want help with preparing your chapter 13 plan and with 
the confirmation hearing on your plan which will be before a 
bankruptcy judge.
  `` `If you select another type of relief under the Bankruptcy 
Code other than chapter 7 or chapter 13, you will want to find 
out what should be done from someone familiar with that type of 
relief.
  `` `Your bankruptcy case may also involve litigation. You are 
generally permitted to represent yourself in litigation in 
bankruptcy court, but only attorneys, not bankruptcy petition 
preparers, can give you legal advice.'.
  ``(c) Except to the extent the debt relief agency provides 
the required information itself after reasonably diligent 
inquiry of the assisted person or others so as to obtain such 
information reasonably accurately for inclusion on the 
petition, schedules or statement of financial affairs, a debt 
relief agency providing bankruptcy assistance to an assisted 
person, to the extent permitted by nonbankruptcy law, shall 
provide each assisted person at the time required for the 
notice required under subsection (a)(1) reasonably sufficient 
information (which shall be provided in a clear and conspicuous 
writing) to the assisted person on how to provide all the 
information the assisted person is required to provide under 
this title pursuant to section 521, including--
          ``(1) how to value assets at replacement value, 
        determine current monthly income, the amounts specified 
        in section 707(b)(2) and, in a chapter 13 case, how to 
        determine disposable income in accordance with section 
        707(b)(2) and related calculations;
          ``(2) how to complete the list of creditors, 
        including how to determine what amount is owed and what 
        address for the creditor should be shown; and
          ``(3) how to determine what property is exempt and 
        how to value exempt property at replacement value as 
        defined in section 506.
  ``(d) A debt relief agency shall maintain a copy of the 
notices required under subsection (a) of this section for 2 
years after the date on which the notice is given the assisted 
person.''.
  (b) Conforming Amendment.--The table of sections for chapter 
5 of title 11, United States Code, as amended by section 227, 
is amended by inserting after the item relating to section 526 
the following:

``527. Disclosures.''.

SEC. 229. REQUIREMENTS FOR DEBT RELIEF AGENCIES.

  (a) Enforcement.--Subchapter II of chapter 5 of title 11, 
United States Code, as amended by sections 227 and 228, is 
amended by adding at the end the following:

``Sec. 528. Requirements for debt relief agencies

  ``(a) A debt relief agency shall--
          ``(1) not later than 5 business days after the first 
        date on which such agency provides any bankruptcy 
        assistance services to an assisted person, but prior to 
        such assisted person's petition under this title being 
        filed, execute a written contract with such assisted 
        person that explains clearly and conspicuously--
                  ``(A) the services such agency will provide 
                to such assisted person; and
                  ``(B) the fees or charges for such services, 
                and the terms of payment;
          ``(2) provide the assisted person with a copy of the 
        fully executed and completed contract;
          ``(3) clearly and conspicuously disclose in any 
        advertisement of bankruptcy assistance services or of 
        the benefits of bankruptcy directed to the general 
        public (whether in general media, seminars or specific 
        mailings, telephonic or electronic messages, or 
        otherwise) that the services or benefits are with 
        respect to bankruptcy relief under this title; and
          ``(4) clearly and conspicuously use the following 
        statement in such advertisement: `We are a debt relief 
        agency. We help people file for bankruptcy relief under 
        the Bankruptcy Code.' or a substantially similar 
        statement.
  ``(b)(1) An advertisement of bankruptcy assistance services 
or of the benefits of bankruptcy directed to the general public 
includes--
          ``(A) descriptions of bankruptcy assistance in 
        connection with a chapter 13 plan whether or not 
        chapter 13 is specifically mentioned in such 
        advertisement; and
          ``(B) statements such as `federally supervised 
        repayment plan' or `Federal debt restructuring help' or 
        other similar statements that could lead a reasonable 
        consumer to believe that debt counseling was being 
        offered when in fact the services were directed to 
        providing bankruptcy assistance with a chapter 13 plan 
        or other form of bankruptcy relief under this title.
  ``(2) An advertisement, directed to the general public, 
indicating that the debt relief agency provides assistance with 
respect to credit defaults, mortgage foreclosures, eviction 
proceedings, excessive debt, debt collection pressure, or 
inability to pay any consumer debt shall--
          ``(A) disclose clearly and conspicuously in such 
        advertisement that the assistance may involve 
        bankruptcy relief under this title; and
          ``(B) include the following statement: `We are a debt 
        relief agency. We help people file for bankruptcy 
        relief under the Bankruptcy Code.' or a substantially 
        similar statement.''.
  (b) Conforming Amendment.--The table of sections for chapter 
5 of title 11, United States Code, as amended by section 227 
and 228, is amended by inserting after the item relating to 
section 527, the following:

``528. Requirements for debt relief agencies.''.

SEC. 230. GAO STUDY.

  (a) Study.--Not later than 270 days after the date of 
enactment of this Act, the Comptroller General of the United 
States shall conduct a study of the feasibility, effectiveness, 
and cost of requiring trustees appointed under title 11, United 
States Code, or the bankruptcy courts, to provide to the Office 
of Child Support Enforcement promptly after the commencement of 
cases by debtors who are individuals under such title, the 
names and social security account numbers of such debtors for 
the purposes of allowing such Office to determine whether such 
debtors have outstanding obligations for child support (as 
determined on the basis of information in the Federal Case 
Registry or other national database).
  (b) Report.--Not later than 300 days after the date of 
enactment of this Act, the Comptroller General shall submit to 
the President pro tempore of the Senate and the Speaker of the 
House of Representatives a report containing the results of the 
study required by subsection (a).

SEC. 231. PROTECTION OF PERSONALLY IDENTIFIABLE INFORMATION.

  (a) Limitation.--Section 363(b)(1) of title 11, United States 
Code, is amended by striking the period at the end and 
inserting the following:
``, except that if the debtor in connection with offering a 
product or a service discloses to an individual a policy 
prohibiting the transfer of personally identifiable information 
about individuals to persons that are not affiliated with the 
debtor and if such policy is in effect on the date of the 
commencement of the case, then the trustee may not sell or 
lease personally identifiable information to any person 
unless--
          ``(A) such sale or such lease is consistent with such 
        policy; or
          ``(B) after appointment of a consumer privacy 
        ombudsman in accordance with section 332, and after 
        notice and a hearing, the court approves such sale or 
        such lease--
                  ``(i) giving due consideration to the facts, 
                circumstances, and conditions of such sale or 
                such lease; and
                  ``(ii) finding that no showing was made that 
                such sale or such lease would violate 
                applicable nonbankruptcy law.''.
  (b) Definition.--Section 101 of title 11, United States Code, 
is amended by inserting after paragraph (41) the following:
          ``(41A) `personally identifiable information' means--
                  ``(A) if provided by an individual to the 
                debtor in connection with obtaining a product 
                or a service from the debtor primarily for 
                personal, family, or household purposes--
                          ``(i) the first name (or initial) and 
                        last name of such individual, whether 
                        given at birth or time of adoption, or 
                        resulting from a lawful change of name;
                          ``(ii) the geographical address of a 
                        physical place of residence of such 
                        individual;
                          ``(iii) an electronic address 
                        (including an e-mail address) of such 
                        individual;
                          ``(iv) a telephone number dedicated 
                        to contacting such individual at such 
                        physical place of residence;
                          ``(v) a social security account 
                        number issued to such individual; or
                          ``(vi) the account number of a credit 
                        card issued to such individual; or
                  ``(B) if identified in connection with 1 or 
                more of the items of information specified in 
                subparagraph (A)--
                          ``(i) a birth date, the number of a 
                        certificate of birth or adoption, or a 
                        place of birth; or
                          ``(ii) any other information 
                        concerning an identified individual 
                        that, if disclosed, will result in 
                        contacting or identifying such 
                        individual physically or 
                        electronically;''.

SEC. 232. CONSUMER PRIVACY OMBUDSMAN.

  (a) Consumer Privacy Ombudsman.--Title 11 of the United 
States Code is amended by inserting after section 331 the 
following:

``Sec. 332. Consumer privacy ombudsman

  ``(a) If a hearing is required under section 363(b)(1)(B), 
the court shall order the United States trustee to appoint, not 
later than 5 days before the commencement of the hearing, 1 
disinterested person (other than the United States trustee) to 
serve as the consumer privacy ombudsman in the case and shall 
require that notice of such hearing be timely given to such 
ombudsman.
  ``(b) The consumer privacy ombudsman may appear and be heard 
at such hearing and shall provide to the court information to 
assist the court in its consideration of the facts, 
circumstances, and conditions of the proposed sale or lease of 
personally identifiable information under section 363(b)(1)(B). 
Such information may include presentation of--
          ``(1) the debtor's privacy policy;
          ``(2) the potential losses or gains of privacy to 
        consumers if such sale or such lease is approved by the 
        court;
          ``(3) the potential costs or benefits to consumers if 
        such sale or such lease is approved by the court; and
          ``(4) the potential alternatives that would mitigate 
        potential privacy losses or potential costs to 
        consumers.
  ``(c) A consumer privacy ombudsman shall not disclose any 
personally identifiable information obtained by the ombudsman 
under this title.''.
  (b) Compensation of Consumer Privacy Ombudsman.--Section 
330(a)(1) of title 11, United States Code, is amended in the 
matter preceding subparagraph (A), by inserting ``a consumer 
privacy ombudsman appointed under section 332,'' before ``an 
examiner''.
  (c) Conforming Amendment.--The table of sections for 
subchapter II of chapter 3 of title 11, United States Code, is 
amended by adding at the end the following:

``332. Consumer privacy ombudsman.''.

SEC. 233. PROHIBITION ON DISCLOSURE OF NAME OF MINOR CHILDREN.

  (a) Prohibition.--Title 11 of the United States Code, as 
amended by section 106, is amended by inserting after section 
111 the following:

``Sec. 112. Prohibition on disclosure of name of minor children

  ``The debtor may be required to provide information regarding 
a minor child involved in matters under this title but may not 
be required to disclose in the public records in the case the 
name of such minor child. The debtor may be required to 
disclose the name of such minor child in a nonpublic record 
that is maintained by the court and made available by the court 
for examination by the United States trustee, the trustee, and 
the auditor (if any) serving under section 586(f) of title 28, 
in the case. The court, the United States trustee, the trustee, 
and such auditor shall not disclose the name of such minor 
child maintained in such nonpublic record.''.
  (b) Clerical Amendment.--The table of sections for chapter 1 
of title 11, United States Code, as amended by section 106, is 
amended by inserting after the item relating to section 111 the 
following:

``112. Prohibition on disclosure of name of minor children.''.

  (c) Conforming Amendment.--Section 107(a) of title 11, United 
States Code, is amended by inserting ``and subject to section 
112'' after ``section''.

               TITLE III --DISCOURAGING BANKRUPTCY ABUSE

SEC. 301. TECHNICAL AMENDMENTS.

  Section 523(a)(17) of title 11, United States Code, is 
amended--
          (1) by striking ``by a court'' and inserting ``on a 
        prisoner by any court'';
          (2) by striking ``section 1915(b) or (f)'' and 
        inserting ``subsection (b) or (f)(2) of section 1915''; 
        and
          (3) by inserting ``(or a similar non-Federal law)'' 
        after ``title 28'' each place it appears.

SEC. 302. CURBING ABUSIVE FILINGS.

  (a) In General.--Section 362(d) of title 11, United States 
Code, is amended--
          (1) in paragraph (2), by striking ``or'' at the end;
          (2) in paragraph (3), by striking the period at the 
        end and inserting ``; or''; and
          (3) by adding at the end the following:
          ``(4) with respect to a stay of an act against real 
        property under subsection (a), by a creditor whose 
        claim is secured by an interest in such real property, 
        if the court finds that the filing of the petition was 
        part of a scheme to delay, hinder, and defraud 
        creditors that involved either--
                  ``(A) transfer of all or part ownership of, 
                or other interest in, such real property 
                without the consent of the secured creditor or 
                court approval; or
                  ``(B) multiple bankruptcy filings affecting 
                such real property.
If recorded in compliance with applicable State laws governing 
notices of interests or liens in real property, an order 
entered under paragraph (4) shall be binding in any other case 
under this title purporting to affect such real property filed 
not later than 2 years after the date of the entry of such 
order by the court, except that a debtor in a subsequent case 
under this title may move for relief from such order based upon 
changed circumstances or for good cause shown, after notice and 
a hearing. Any Federal, State, or local governmental unit that 
accepts notices of interests or liens in real property shall 
accept any certified copy of an order described in this 
subsection for indexing and recording.''.
  (b) Automatic Stay.--Section 362(b) of title 11, United 
States Code, as amended by section 224, is amended by inserting 
after paragraph (19), the following:
          ``(20) under subsection (a), of any act to enforce 
        any lien against or security interest in real property 
        following entry of the order under subsection (d)(4) as 
        to such real property in any prior case under this 
        title, for a period of 2 years after the date of the 
        entry of such an order, except that the debtor, in a 
        subsequent case under this title, may move for relief 
        from such order based upon changed circumstances or for 
        other good cause shown, after notice and a hearing;
          ``(21) under subsection (a), of any act to enforce 
        any lien against or security interest in real 
        property--
                  ``(A) if the debtor is ineligible under 
                section 109(g) to be a debtor in a case under 
                this title; or
                  ``(B) if the case under this title was filed 
                in violation of a bankruptcy court order in a 
                prior case under this title prohibiting the 
                debtor from being a debtor in another case 
                under this title;''.

SEC. 303. GIVING SECURED CREDITORS FAIR TREATMENT IN CHAPTER 13.

  (b) Restoring the Foundation for Secured Credit.--Section 
1325(a) of title 11, United States Code, is amended by adding 
at the end the following:
``For purposes of paragraph (5), section 506 shall not apply to 
a claim described in that paragraph if the creditor has a 
purchase money security interest securing the debt that is the 
subject of the claim, the debt was incurred within the 365-day 
preceding the date of the filing of the petition, and the 
collateral for that debt consists of a motor vehicle (as 
defined in section 30102 of title 49) acquired for the personal 
use of the debtor, or if collateral for that debt consists of 
any other thing of value, if the debt was incurred during the 
180-day period preceding that filing.''.

SEC. 304. DOMICILIARY REQUIREMENTS FOR EXEMPTIONS.

  Section 522(b)(3) of title 11, United States Code, as so 
designated by section 106, is amended--
          (1) in subparagraph (A)--
                  (A) by striking ``180 days'' and inserting 
                ``730 days''; and
                  (B) by striking ``, or for a longer portion 
                of such 180-day period than in any other 
                place'' and inserting ``or if the debtor's 
                domicile has not been located at a single State 
                for such 730-day period, the place in which the 
                debtor's domicile was located for 180 days 
                immediately preceding the 730-day period or for 
                a longer portion of such 180-day period than in 
                any other place''; and
          (2) by adding at the end the following:
``If the effect of the domiciliary requirement under 
subparagraph (A) is to render the debtor ineligible for any 
exemption, the debtor may elect to exempt property that is 
specified under subsection (d).''.

SEC. 305. REDUCTION OF HOMESTEAD EXEMPTION FOR FRAUD.

  Section 522 of title 11, United States Code, as amended by 
section 224, is amended--
          (1) in subsection (b)(3)(A), as so designated by this 
        Act, by inserting ``subject to subsections (o) and 
        (p),'' before ``any property''; and
          (2) by adding at the end the following:
  ``(o) For purposes of subsection (b)(3)(A), and 
notwithstanding subsection (a), the value of an interest in--
          ``(1) real or personal property that the debtor or a 
        dependent of the debtor uses as a residence;
          ``(2) a cooperative that owns property that the 
        debtor or a dependent of the debtor uses as a 
        residence;
          ``(3) a burial plot for the debtor or a dependent of 
        the debtor; or
          ``(4) real or personal property that the debtor or a 
        dependent of the debtor claims as a homestead;
shall be reduced to the extent that such value is attributable 
to any portion of any property that the debtor disposed of in 
the 10-year period ending on the date of the filing of the 
petition with the intent to hinder, delay, or defraud a 
creditor and that the debtor could not exempt, or that portion 
that the debtor could not exempt, under subsection (b), if on 
such date the debtor had held the property so disposed of.''.

SEC. 306. LIMITATIONS ON HOMESTEAD EXEMPTION.

  (a) Exemptions.--Section 522 of title 11, United States Code, 
as amended by sections 224 and 308, is amended by adding at the 
end the following:
  ``(p)(1) Except as provided in paragraph (2) of this 
subsection and sections 544 and 548, as a result of electing 
under subsection (b)(3)(A) to exempt property under State or 
local law, a debtor may not exempt any amount of interest that 
was acquired by the debtor during the 1215-day period preceding 
the date of the filing of the petition that exceeds in the 
aggregate $125,000 in value in--
          ``(A) real or personal property that the debtor or a 
        dependent of the debtor uses as a residence;
          ``(B) a cooperative that owns property that the 
        debtor or a dependent of the debtor uses as a 
        residence;
          ``(C) a burial plot for the debtor or a dependent of 
        the debtor; or
          ``(D) real or personal property that the debtor or 
        dependent of the debtor claims as a homestead.
  ``(2)(A) The limitation under paragraph (1) shall not apply 
to an exemption claimed under subsection (b)(3)(A) by a family 
farmer for the principal residence of such farmer.
  ``(B) For purposes of paragraph (1), any amount of such 
interest does not include any interest transferred from a 
debtor's previous principal residence (which was acquired prior 
to the beginning of such 1215-day period) into the debtor's 
current principal residence, if the debtor's previous and 
current residences are located in the same State.
  ``(q)(1) As a result of electing under subsection (b)(3)(A) 
to exempt property under State or local law, a debtor may not 
exempt any amount of an interest in property described in 
subparagraphs (A), (B), (C), and (D) of subsection (p)(1) which 
exceeds in the aggregate $125,000 if--
          ``(A) the court determines, after notice and a 
        hearing, that the debtor has been convicted of a felony 
        (as defined in section 3156 of title 18), which under 
        the circumstances, demonstrates that the filing of the 
        case was an abuse of the provisions of this title; or
          ``(B) the debtor owes a debt arising from--
                  ``(i) any violation of the Federal securities 
                laws (as defined in section 3(a)(47) of the 
                Securities Exchange Act of 1934), any State 
                securities laws, or any regulation or order 
                issued under Federal securities laws or State 
                securities laws;
                  ``(ii) fraud, deceit, or manipulation in a 
                fiduciary capacity or in connection with the 
                purchase or sale of any security registered 
                under section 12 or 15(d) of the Securities 
                Exchange Act of 1934 or under section 6 of the 
                Securities Act of 1933;
                  ``(iii) any civil remedy under section 1964 
                of title 18; or
                  ``(iv) any criminal act, intentional tort, or 
                willful or reckless misconduct that caused 
                serious physical injury or death to another 
                individual in the preceding 5 years.
  ``(2) Paragraph (1) shall not apply to the extent the amount 
of an interest in property described in subparagraphs (A), (B), 
(C), and (D) of subsection (p)(1) is reasonably necessary for 
the support of the debtor and any dependent of the debtor.''.
  (b) Adjustment of Dollar Amounts.--Paragraphs (1) and (2) of 
section 104(b) of title 11, United States Code, as amended by 
section 224, are amended by inserting ``522(p), 522(q),'' after 
``522(n),''.

SEC. 307. EXCLUDING EMPLOYEE BENEFIT PLAN PARTICIPANT CONTRIBUTIONS AND 
                    OTHER PROPERTY FROM THE ESTATE.

  Section 541(b) of title 11, United States Code, as amended by 
section 225, is amended by adding after paragraph (6), as added 
by section 225(a)(1)(C), the following:
          ``(7) any amount--
                  ``(A) withheld by an employer from the wages 
                of employees for payment as contributions--
                          ``(i) to--
                                  ``(I) an employee benefit 
                                plan that is subject to title I 
                                of the Employee Retirement 
                                Income Security Act of 1974 or 
                                under an employee benefit plan 
                                which is a governmental plan 
                                under section 414(d) of the 
                                Internal Revenue Code of 1986;
                                  ``(II) a deferred 
                                compensation plan under section 
                                457 of the Internal Revenue 
                                Code of 1986; or
                                  ``(III) a tax-deferred 
                                annuity under section 403(b) of 
                                the Internal Revenue Code of 
                                1986;
                        except that such amount under this 
                        subparagraph shall not constitute 
                        disposable income as defined in section 
                        1325(b)(2); or
                          ``(ii) to a health insurance plan 
                        regulated by State law whether or not 
                        subject to such title; or
                  ``(B) received by an employer from employees 
                for payment as contributions--
                          ``(i) to--
                                  ``(I) an employee benefit 
                                plan that is subject to title I 
                                of the Employee Retirement 
                                Income Security Act of 1974 or 
                                under an employee benefit plan 
                                which is a governmental plan 
                                under section 414(d) of the 
                                Internal Revenue Code of 1986;
                                  ``(II) a deferred 
                                compensation plan under section 
                                457 of the Internal Revenue 
                                Code of 1986; or
                                  ``(III) a tax-deferred 
                                annuity under section 403(b) of 
                                the Internal Revenue Code of 
                                1986;
                        except that such amount under this 
                        subparagraph shall not constitute 
                        disposable income, as defined in 
                        section 1325(b)(2); or
                          ``(ii) to a health insurance plan 
                        regulated by State law whether or not 
                        subject to such title;''.

SEC. 308. UNITED STATES TRUSTEE PROGRAM FILING FEE INCREASE.

  (a) Actions Under Chapter 7 or 13 of Title 11, United States 
Code.--Section 1930(a) of title 28, United States Code, is 
amended by striking paragraph (1) and inserting the following:
          ``(1) For a case commenced--
                  ``(A) under chapter 7 of title 11, $160; or
                  ``(B) under chapter 13 of title 11, $150.''.
  (b) United States Trustee System Fund.--Section 589a(b) of 
title 28, United States Code, is amended--
          (1) by striking paragraph (1) and inserting the 
        following:
          ``(1)(A) 40.63 percent of the fees collected under 
        section 1930(a)(1)(A) of this title in cases commenced 
        under chapter 7 of title 11; and
          ``(B) 70.00 percent of the fees collected under 
        section 1930(a)(1)(B) of this title in cases commenced 
        under chapter 13 of title 11;'';
          (2) in paragraph (2), by striking ``one-half'' and 
        inserting ``three-fourths''; and
          (3) in paragraph (4), by striking ``one-half'' and 
        inserting ``100 percent''.
  (c) Collection and Deposit of Miscellaneous Bankruptcy 
Fees.--Section 406(b) of the Judiciary Appropriations Act, 1990 
(28 U.S.C. 1931 note) is amended by striking ``pursuant to 28 
U.S.C. section 1930(b)'' and all that follows through ``28 
U.S.C. section 1931'' and inserting ``under section 1930(b) of 
title 28, United States Code, and 31.25 percent of the fees 
collected under section 1930(a)(1)(A) of that title, 30.00 
percent of the fees collected under section 1930(a)(1)(B) of 
that title, and 25 percent of the fees collected under section 
1930(a)(3) of that title shall be deposited as offsetting 
receipts to the fund established under section 1931 of that 
title''.

SEC. 309. SHARING OF COMPENSATION.

  Section 504 of title 11, United States Code, is amended by 
adding at the end the following:
  ``(c) This section shall not apply with respect to sharing, 
or agreeing to share, compensation with a bona fide public 
service attorney referral program that operates in accordance 
with non-Federal law regulating attorney referral services and 
with rules of professional responsibility applicable to 
attorney acceptance of referrals.''.

SEC. 310. DEFAULTS BASED ON NONMONETARY OBLIGATIONS.

  (a) Executory Contracts and Unexpired Leases.--Section 365 of 
title 11, United States Code, is amended--
          (1) in subsection (b)--
                  (A) in paragraph (1)(A), by striking the 
                semicolon at the end and inserting the 
                following: ``other than a default that is a 
                breach of a provision relating to 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, except that if such default arises 
                from a failure to operate in accordance with a 
                nonresidential real property lease, then such 
                default shall be cured by performance at and 
                after the time of assumption in accordance with 
                such lease, and pecuniary losses resulting from 
                such default shall be compensated in accordance 
                with the provisions of this paragraph;''; and
                  (B) in paragraph (2)(D), by striking 
                ``penalty rate or provision'' and inserting 
                ``penalty rate or penalty provision'';
          (2) in subsection (c)--
                  (A) in paragraph (2), by inserting ``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); and
          (4) in subsection (f)(1) by striking ``; except 
        that'' and all that follows through the end of the 
        paragraph and inserting a period.
  (b) Impairment of Claims or Interests.--Section 1124(2) of 
title 11, United States Code, is amended--
          (1) in subparagraph (A), by inserting ``or of a kind 
        that section 365(b)(2) expressly does not require to be 
        cured'' before the semicolon at the end;
          (2) in subparagraph (C), by striking ``and'' at the 
        end;
          (3) by redesignating subparagraph (D) as subparagraph 
        (E); and
          (4) by inserting after subparagraph (C) the 
        following:
                  ``(D) if such claim or such interest arises 
                from any failure to perform a nonmonetary 
                obligation, other than a default arising from 
                failure to operate a nonresidential real 
                property lease subject to section 365(b)(1)(A), 
                compensates the holder of such claim or such 
                interest (other than the debtor or an insider) 
                for any actual pecuniary loss incurred by such 
                holder as a result of such failure; and''.

SEC. 311. CLARIFICATION OF POSTPETITION WAGES AND BENEFITS.

  Section 503(b)(1)(A) of title 11, United States Code, is 
amended to read as follows:
        ``(A) the actual, necessary costs and expenses of 
        preserving the estate including--
                  ``(i) wages, salaries, and commissions for 
                services rendered after the commencement of the 
                case; and
                  ``(ii) wages and benefits awarded pursuant to 
                a judicial proceeding or a proceeding of the 
                National Labor Relations Board as back pay 
                attributable to any period of time occurring 
                after commencement of the case under this 
                title, as a result of a violation of Federal or 
                State law by the debtor, without regard to the 
                time of the occurrence of unlawful conduct on 
                which such award is based or to whether any 
                services were rendered, if the court determines 
                that payment of wages and benefits by reason of 
                the operation of this clause will not 
                substantially increase the probability of 
                layoff or termination of current employees, or 
                of nonpayment of domestic support obligations, 
                during the case under this title;''.

SEC. 312. DELAY OF DISCHARGE DURING PENDENCY OF CERTAIN PROCEEDINGS.

  (a) Chapter 7.--Section 727(a) of title 11, United States 
Code, as amended by section 106, is amended--
          (1) in paragraph (10), by striking ``or'' at the end;
          (2) in paragraph (11) by striking the period at the 
        end and inserting ``; or''; and
          (3) by inserting after paragraph (11) the following:
          ``(12) the court after notice and a hearing held not 
        more than 10 days before the date of the entry of the 
        order granting the discharge finds that there is 
        reasonable cause to believe that--
                  ``(A) section 522(q)(1) may be applicable to 
                the debtor; and
                  ``(B) there is pending any proceeding in 
                which the debtor may be found guilty of a 
                felony of the kind described in section 
                522(q)(1)(A) or liable for a debt of the kind 
                described in section 522(q)(1)(B).''.
  (b) Chapter 11.--Section 1141(d) of title 11, United States 
Code, as amended by section 321, is amended by adding at the 
end the following:
          ``(C) unless after notice and a hearing held not more 
        than 10 days before the date of the entry of the order 
        granting the discharge, the court finds that there is 
        no reasonable cause to believe that--
                  ``(i) section 522(q)(1) may be applicable to 
                the debtor; and
                  ``(ii) there is pending any proceeding in 
                which the debtor may be found guilty of a 
                felony of the kind described in section 
                522(q)(1)(A) or liable for a debt of the kind 
                described in section 522(q)(1)(B).''.
  (c) Chapter 12.--Section 1228 of title 11, United States 
Code, is amended--
          (1) in subsection (a) by striking ``As'' and 
        inserting ``Subject to subsection (d), as'',
          (2) in subsection (b) by striking ``At'' and 
        inserting ``Subject to subsection (d), at'', and
          (3) by adding at the end the following:
  ``(f) The court may not grant a discharge under this chapter 
unless the court after notice and a hearing held not more than 
10 days before the date of the entry of the order granting the 
discharge finds that there is no reasonable cause to believe 
that--
          ``(1) section 522(q)(1) may be applicable to the 
        debtor; and
          ``(2) there is pending any proceeding in which the 
        debtor may be found guilty of a felony of the kind 
        described in section 522(q)(1)(A) or liable for a debt 
        of the kind described in section 522(q)(1)(B).''.
  (d) Chapter 13.--Section 1328 of title 11, United States 
Code, as amended by section 106, is amended--
          (1) in subsection (a) by striking ``As'' and 
        inserting ``Subject to subsection (d), as'',
          (2) in subsection (b) by striking ``At'' and 
        inserting ``Subject to subsection (d), at'', and
          (3) by adding at the end the following:
  ``(h) The court may not grant a discharge under this chapter 
unless the court after notice and a hearing held not more than 
10 days before the date of the entry of the order granting the 
discharge finds that there is no reasonable cause to believe 
that--
          ``(1) section 522(q)(1) may be applicable to the 
        debtor; and
          ``(2) there is pending any proceeding in which the 
        debtor may be found guilty of a felony of the kind 
        described in section 522(q)(1)(A) or liable for a debt 
        of the kind described in section 522(q)(1)(B).''.

SEC. 313. NONDISCHARGEABILITY OF DEBTS INCURRED THROUGH VIOLATIONS OF 
                    CIVIL RIGHTS LAWS.

  (a) Debts Incurred Through Violations of Civil Rights Laws.--
Section 523(a) of title 11, United States Code, as amended by 
section 224, is amended--
          (1) in paragraph (18) by striking ``or'' at the end;
          (2) in paragraph (19) by striking the period at the 
        end and inserting ``; or''; and
          (3) by adding at the end the following:
          ``(20) that results from any judgment, order, consent 
        order, or decree entered in any Federal or State court, 
        or contained in any settlement agreement entered into 
        by the debtor (including any court-ordered damages, 
        fine, penalty, or attorney fee or cost owed by the 
        debtor), that arises from--
                  ``(A) the violation by the debtor of any 
                offense described in section 244 (relating to 
                discrimination against a person wearing the 
                uniform of the Armed Forces), section 245 
                (relating to federally protected rights), 
                section 247 (relating to damage to religious 
                property; obstruction of persons in the free 
                exercise of religious beliefs), or section 248 
                (relating to the freedom of access to clinic 
                entrances), of title 18, United States Code;
                  ``(B) an offense under State law that 
                consists of conduct that would be a civil 
                rights crime described in subparagraph (A) of 
                this paragraph; or
                  ``(C) a valid court order enforcing a civil 
                rights law described in subparagraphs (A) or 
                (B) of this paragraph.''.
  (b) Restitution.--Section 523(a)(13) of title 11, United 
States Code, is amended by inserting ``or under the criminal 
law of a State'' after ``title 18''.

       TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS

           Subtitle A--General Business Bankruptcy Provisions

SEC. 401. ADEQUATE PROTECTION FOR INVESTORS.

  (a) Definition.--Section 101 of title 11, United States Code, 
is amended by inserting after paragraph (48) the following:
          ``(48A) `securities self regulatory organization' 
        means either a securities association registered with 
        the Securities and Exchange Commission under section 
        15A of the Securities Exchange Act of 1934 or a 
        national securities exchange registered with the 
        Securities and Exchange Commission under section 6 of 
        the Securities Exchange Act of 1934;''.
  (b) Automatic Stay.--Section 362(b) of title 11, United 
States Code, as amended by sections 224, 303, and 311, is 
amended by inserting after paragraph (24) the following:
          ``(25) under subsection (a), of--
                  ``(A) the commencement or continuation of an 
                investigation or action by a securities self 
                regulatory organization to enforce such 
                organization's regulatory power;
                  ``(B) the enforcement of an order or 
                decision, other than for monetary sanctions, 
                obtained in an action by such securities self 
                regulatory organization to enforce such 
                organization's regulatory power; or
                  ``(C) any act taken by such securities self 
                regulatory organization to delist, delete, or 
                refuse to permit quotation of any stock that 
                does not meet applicable regulatory 
                requirements;''.

SEC. 402. MEETINGS OF CREDITORS AND EQUITY SECURITY HOLDERS.

  Section 341 of title 11, United States Code, is amended by 
adding at the end the following:
  ``(e) Notwithstanding subsections (a) and (b), the court, on 
the request of a party in interest and after notice and a 
hearing, for cause may order that the United States trustee not 
convene a meeting of creditors or equity security holders if 
the debtor has filed a plan as to which the debtor solicited 
acceptances prior to the commencement of the case.''.

SEC. 403. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

  (a) In General.--Section 365(d)(4) of title 11, United States 
Code, is amended to read as follows:
  ``(4)(A) Subject to subparagraph (B), an unexpired lease of 
nonresidential real property under which the debtor is the 
lessee shall be deemed rejected, and the trustee shall 
immediately surrender that nonresidential real property to the 
lessor, if the trustee does not assume or reject the unexpired 
lease by the earlier of--
          ``(i) the date that is 120 days after the date of the 
        order for relief; or
          ``(ii) the date of the entry of an order confirming a 
        plan.
  ``(B)(i) The court may extend the period determined under 
subparagraph (A), prior to the expiration of the 120-day 
period, for 90 days on the motion of the trustee or lessor for 
cause.
  ``(ii) If the court grants an extension under clause (i), the 
court may grant a subsequent extension only upon prior written 
consent of the lessor in each instance.
  ``(iii) The court may extend the time periods specified in 
this paragraph if the debtor establishes by clear and 
convincing evidence that an extension is justified by 
circumstances beyond the debtor's control that were not 
foreseeable on the date of the order for relief.''.
  (b) Exception.--Section 365(f)(1) of title 11, United States 
Code, is amended by striking ``subsection'' the first place it 
appears and inserting ``subsections (b) and''.

SEC. 404. CREDITORS AND EQUITY SECURITY HOLDERS COMMITTEES.

  (a) Appointment.--Section 1102(a) of title 11, United States 
Code, is amended by adding at the end the following:
  ``(4) On request of a party in interest and after notice and 
a hearing, the court may order the United States trustee to 
change the membership of a committee appointed under this 
subsection, if the court determines that the change is 
necessary to ensure adequate representation of creditors or 
equity security holders. The court may order the United States 
trustee to increase the number of members of a committee to 
include a creditor that is a small business concern (as 
described in section 3(a)(1) of the Small Business Act), if the 
court determines that the creditor holds claims (of the kind 
represented by the committee) the aggregate amount of which, in 
comparison to the annual gross revenue of that creditor, is 
disproportionately large.''.
  (b) Information.--Section 1102(b) of title 11, United States 
Code, is amended by adding at the end the following:
  ``(3) A committee appointed under subsection (a) shall--
          ``(A) provide access to information for creditors 
        who--
                  ``(i) hold claims of the kind represented by 
                that committee; and
                  ``(ii) are not appointed to the committee;
          ``(B) solicit and receive comments from the creditors 
        described in subparagraph (A); and
          ``(C) be subject to a court order that compels any 
        additional report or disclosure to be made to the 
        creditors described in subparagraph (A).''.

SEC. 405. AMENDMENTS TO SECTION 330(A) OF TITLE 11, UNITED STATES CODE.

  Section 330(a) of title 11, United States Code, is amended--
          (1) in paragraph (3)--
                  (A) by striking ``(A) In'' and inserting 
                ``In''; and
                  (B) by inserting ``to an examiner, trustee 
                under chapter 11, or professional person'' 
                after ``awarded''; and
          (2) by adding at the end the following:
  ``(7) In determining the amount of reasonable compensation to 
be awarded to a trustee, the court shall treat such 
compensation as a commission, based on section 326.''.

SEC. 406. POSTPETITION DISCLOSURE AND SOLICITATION.

  Section 1125 of title 11, United States Code, is amended by 
adding at the end the following:
  ``(g) Notwithstanding subsection (b), an acceptance or 
rejection of the plan may be solicited from a holder of a claim 
or interest if such solicitation complies with applicable 
nonbankruptcy law and if such holder was solicited before the 
commencement of the case in a manner complying with applicable 
nonbankruptcy law.''.

SEC. 407. VENUE OF CERTAIN PROCEEDINGS.

  Section 1409(b) of title 28, United States Code, is amended 
by inserting ``, or a debt (excluding a consumer debt) against 
a noninsider of less than $10,000,'' after ``$5,000''.

SEC. 408. PERIOD FOR FILING PLAN UNDER CHAPTER 11.

  Section 1121(d) of title 11, United States Code, is amended--
          (1) by striking ``On'' and inserting ``(1) Subject to 
        paragraph (2), on''; and
          (2) by adding at the end the following:
  ``(2)(A) Unless the debtor establishes by clear and 
convincing evidence that there are circumstances beyond the 
debtor's control that were not foreseeable on the date of the 
order of relief, the 120-day period specified in paragraph (1) 
may not be extended beyond a date that is 18 months after the 
date of the order for relief under this chapter.
  ``(B) Unless the debtor establishes by clear and convincing 
evidence that there are circumstances beyond the debtor's 
control that were not foreseeable on the date of the order of 
relief, the 180-day period specified in paragraph (1) may not 
be extended beyond a date that is 20 months after the date of 
the order for relief under this chapter.''.

SEC. 409. FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS.

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

SEC. 410. FACTORS FOR COMPENSATION OF PROFESSIONAL PERSONS.

  Section 330(a)(3) of title 11, United States Code, is 
amended--
          (1) in subparagraph (D), by striking ``and'' at the 
        end;
          (2) by redesignating subparagraph (E) as subparagraph 
        (F); and
          (3) by inserting after subparagraph (D) the 
        following:
          ``(E) with respect to a professional person, whether 
        the person is board certified or otherwise has 
        demonstrated skill and experience in the bankruptcy 
        field; and''.

SEC. 411. APPOINTMENT OF ELECTED TRUSTEE.

  Section 1104(b) of title 11, United States Code, is amended--
          (1) by inserting ``(1)'' after ``(b)''; and
          (2) by adding at the end the following:
  ``(2)(A) If an eligible, disinterested trustee is elected at 
a meeting of creditors under paragraph (1), the United States 
trustee shall file a report certifying that election.
  ``(B) Upon the filing of a report under subparagraph (A)--
          ``(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.
  ``(C) The court shall resolve any dispute arising out of an 
election described in subparagraph (A).''.

SEC. 412. UTILITY SERVICE.

  Section 366 of title 11, United States Code, is amended--
          (1) in subsection (a), by striking ``subsection (b)'' 
        and inserting ``subsections (b) and (c)''; and
          (2) by adding at the end the following:
  ``(c)(1)(A) For purposes of this subsection, the term 
`assurance of payment' means--
          ``(i) a cash deposit;
          ``(ii) a letter of credit;
          ``(iii) a certificate of deposit;
          ``(iv) a surety bond;
          ``(v) a prepayment of utility consumption; or
          ``(vi) another form of security that is mutually 
        agreed on between the utility and the debtor or the 
        trustee.
  ``(B) For purposes of this subsection an administrative 
expense priority shall not constitute an assurance of payment.
  ``(2) Subject to paragraphs (3) and (4), with respect to a 
case filed under chapter 11, a utility referred to in 
subsection (a) may alter, refuse, or discontinue utility 
service, if during the 30-day period beginning on the date of 
the filing of the petition, the utility does not receive from 
the debtor or the trustee adequate assurance of payment for 
utility service that is satisfactory to the utility.
  ``(3)(A) On request of a party in interest and after notice 
and a hearing, the court may order modification of the amount 
of an assurance of payment under paragraph (2).
  ``(B) In making a determination under this paragraph whether 
an assurance of payment is adequate, the court may not 
consider--
          ``(i) the absence of security before the date of the 
        filing of the petition;
          ``(ii) the payment by the debtor of charges for 
        utility service in a timely manner before the date of 
        the filing of the petition; or
          ``(iii) the availability of an administrative expense 
        priority.
  ``(4) Notwithstanding any other provision of law, with 
respect to a case subject to this subsection, a utility may 
recover or set off against a security deposit provided to the 
utility by the debtor before the date of the filing of the 
petition without notice or order of the court.
  ``(5) The court may extend the time period specified in 
paragraph (2) if the debtor establishes by clear and convincing 
evidence that an extension is justified by circumstances beyond 
the debtor's control that were not foreseeable on the date the 
assurance of payment was due.''.

SEC. 413. BANKRUPTCY FEES.

  Section 1930 of title 28, United States Code, is amended--
          (1) in subsection (a), by striking ``Notwithstanding 
        section 1915 of this title, the'' and inserting 
        ``The''; and
          (2) by adding at the end the following:
  ``(f)(1) Under the procedures prescribed by the Judicial 
Conference of the United States, the district court or the 
bankruptcy court may waive the filing fee in a case under 
chapter 7 of title 11 for an individual if the court determines 
that such individual has income less than 150 percent of the 
income official poverty line (as defined by the Office of 
Management and Budget, and revised annually in accordance with 
section 673(2) of the Omnibus Budget Reconciliation Act of 
1981) applicable to a family of the size involved and is unable 
to pay that fee in installments. For purposes of this 
paragraph, the term `filing fee' means the filing required by 
subsection (a), or any other fee prescribed by the Judicial 
Conference under subsections (b) and (c) that is payable to the 
clerk upon the commencement of a case under chapter 7.
  ``(2) The district court or the bankruptcy court may waive 
for such debtors other fees prescribed under subsections (b) 
and (c).
  ``(3) This subsection does not restrict the district court or 
the bankruptcy court from waiving, in accordance with Judicial 
Conference policy, fees prescribed under this section for other 
debtors and creditors.''.

SEC. 414. EFFECT OF SALE OF ASSETS ON EMPLOYEE BENEFITS.

  Section 363(b) of title 11, United States Code, is amended by 
adding at the end the following:
  ``(3) The court shall not approve the sale of all or 
substantially all the assets of a debtor with 50 or more 
employees until the debtor has reported to the court on the 
potential adverse impact that such sale is likely to have on 
employee benefits, including any pension and health care plans 
sponsored by the debtor.''.

SEC. 415. ADMINISTRATIVE EXPENSES.

  Section 503 of title 11, United States Code, is amended by 
adding at the end the following:
  ``(c)(1) Notwithstanding subsection (b), there shall neither 
be allowed, nor paid--
          ``(A) a transfer made to, or an obligation incurred 
        for the benefit of, an insider of the debtor for the 
        purpose of inducing such person to remain with the 
        debtor's business, absent a finding by the court based 
        on evidence in the record that--
                  ``(i) the transfer or obligation is essential 
                to retention of the person because the 
                individual has a bona fide job offer from 
                another business at the same or greater rate of 
                compensation;
                  ``(ii) the services provided by the person 
                are essential to the survival of the business; 
                and
                  ``(iii) either--
                          ``(I) the amount of the transfer made 
                        to, or obligation incurred for the 
                        benefit of, the person is not greater 
                        than an amount equal to 10 times the 
                        amount of the mean transfer or 
                        obligation of a similar kind given to 
                        nonmanagement employees for any purpose 
                        during the calendar year in which the 
                        transfer is made or the obligation is 
                        incurred; or
                          ``(II) if no such similar transfers 
                        were made to, or obligations were 
                        incurred for the benefit of, such 
                        nonmanagement employees during such 
                        calendar year, the amount of the 
                        transfer or obligation is not greater 
                        than an amount equal to 25 percent of 
                        the amount of any similar transfer or 
                        obligation made to or incurred for the 
                        benefit of such insider for any purpose 
                        during the calendar year before the 
                        year in which such transfer is made or 
                        obligation is incurred;
          ``(B) a severance payment to an insider of the 
        debtor, unless--
                  ``(i) the payment is part of a program that 
                is generally applicable to all full-time 
                employees; and
                  ``(ii) the amount of the payment is not 
                greater than 10 times the amount of the mean 
                severance pay given to nonmanagement employees 
                during the calendar year in which the payment 
                is made; or
          ``(C) other transfers or obligations that are outside 
        the ordinary course of business and not justified by 
        the facts and circumstances of the case.
  ``(2) For purposes of paragraph (1)(C), transfers made to, or 
obligations incurred for the benefit of, officers, managers, or 
consultants hired after the date of the filing of the petition 
shall be considered outside the ordinary course of business.''.

SEC. 416. PRIORITIES.

  Section 507(a) of title 11, United States Code, is amended--
          (1) in paragraph (3), by striking ``$4,000'' and 
        inserting ``$13,500'';
          (2) in paragraph (3), striking ``90 days'' and 
        inserting ``180 days'';
          (3) in paragraph (4)(A), striking ``180 days'' and 
        inserting ``360 days''; and
          (4) in paragraph (4)(B)(i), by striking ``$4,000'' 
        and inserting ``$13,500''.

SEC. 417. LOCAL FILING OF BANKRUPTCY CASES.

  (a) Venue of Cases Under Title 11.--Section 1408 of title 28, 
United States Code, is amended--
          (1) by striking ``Except'' and inserting the 
        following:
  ``(a) Except'';
          (2) in paragraph (2), by inserting ``as defined in 
        section 101(2)(A) of title 11'' after ``affiliate''; 
        and
          (3) by adding at the end the following:
  ``(b) For purposes of subsection (a)--
          ``(1) if the debtor is a corporation, the domicile 
        and residence of the debtor are conclusively presumed 
        to be where the debtor's principal place of business in 
        the United States is located; and
          ``(2) if an affiliate, as defined in section 
        101(2)(A) of title 11, is not a debtor in a case under 
        title 11, but the debtor is an affiliate as defined in 
        subparagraph (B), (C), or (D) of that section, then the 
        bankruptcy case may be filed in the district in which 
        the principal place of business of the affiliate with 
        the greatest assets in the United States is located.''.
  (b) Change of Venue.--Section 1412 of title 28, United States 
Code, is amended--
          (1) by striking ``A'' and inserting the following:
  ``(a) A''; and
          (2) by adding at the end the following:
  ``(b) The district court of a district in which is filed a 
case laying venue in the wrong division or district shall 
dismiss, or if it be in the interest of justice, transfer such 
case to any district or division in which it could have been 
brought.
  ``(c) Nothing in this chapter shall impair the jurisdiction 
of a district court of any matter involving a party who does 
not interpose timely and sufficient objection to the venue.
  ``(d) As used in this section--
          ``(1) the term ``district court'' includes--
                  ``(A) the bankruptcy judges of each such 
                court as defined in section 151 of this title; 
                and
                  ``(B) the District Court of Guam, the 
                District Court for the Northern Mariana 
                Islands, and the District Court of the Virgin 
                Islands, including any bankruptcy judge of each 
                such court; and
          ``(2) the term ``district'' includes the territorial 
        jurisdiction of each such court.''.

SEC. 418. ASSUMPTION AND TERMINATION OF CERTAIN CONTRACTS AND LEASES

  (a) Assumption.--Section 365(c) of title 11, United States 
Code, is amended--
          (1) by inserting ``(1) after ``(c)'';
          (2) by redesignating existing paragraphs (1) through 
        (4) as subparagraphs (A) through (D) respectively;
          (3) by redesignating subparagraphs (A) and (B) of 
        paragraph (1) as clauses (i) and (ii), respectively; 
        and
          (4) by adding at the end the following:
  ``(2) A debtor in possession may assume, but may not assign, 
an executory contract or unexpired lease in the circumstances 
described in paragraph (1)(A).''.
  (b) Termination.--Clause (i) of section 365(e)(2)(A) of title 
11, United States Code, is amended by inserting ``the trustee 
seeks to assign such contract or lease and'' before 
``applicable law''.

            Subtitle B--Small Business Bankruptcy Provisions

SEC. 431. FLEXIBLE RULES FOR DISCLOSURE STATEMENT AND PLAN.

  Section 1125 of title 11, United States Code, is amended--
          (1) in subsection (a)(1), by inserting before the 
        semicolon ``and in determining whether a disclosure 
        statement provides adequate information, the court 
        shall consider the complexity of the case, the benefit 
        of additional information to creditors and other 
        parties in interest, and the cost of providing 
        additional information''; and
          (2) by striking subsection (f), and inserting the 
        following:
  ``(f) Notwithstanding subsection (b), in a small business 
case--
          ``(1) the court may determine that the plan itself 
        provides adequate information and that a separate 
        disclosure statement is not necessary;
          ``(2) the court may approve a disclosure statement 
        submitted on standard forms approved by the court or 
        adopted under section 2075 of title 28; and
          ``(3)(A) the court may conditionally approve a 
        disclosure statement subject to final approval after 
        notice and a hearing;
          ``(B) acceptances and rejections of a plan may be 
        solicited based on a conditionally approved disclosure 
        statement if the debtor provides adequate information 
        to each holder of a claim or interest that is 
        solicited, but a conditionally approved disclosure 
        statement shall be mailed not later than 25 days before 
        the date of the hearing on confirmation of the plan; 
        and
          ``(C) the hearing on the disclosure statement may be 
        combined with the hearing on confirmation of a plan.''.

SEC. 432. DEFINITIONS.

  (a) Definitions.--Section 101 of title 11, United States 
Code, is amended by striking paragraph (51C) and inserting the 
following:
          ``(51C) `small business case' means a case filed 
        under chapter 11 of this title in which the debtor is a 
        small business debtor;
          ``(51D) `small business debtor'--
                  ``(A) subject to subparagraph (B), means a 
                person engaged in commercial or business 
                activities (including any affiliate of such 
                person that is also a debtor under this title 
                and excluding a person whose primary activity 
                is the business of owning or operating real 
                property or activities incidental thereto) that 
                has aggregate noncontingent liquidated secured 
                and unsecured debts as of the date of the 
                petition or the date of the order for relief in 
                an amount not more than $2,000,000 (excluding 
                debts owed to 1 or more affiliates or insiders) 
                for a case in which the United States trustee 
                has not appointed under section 1102(a)(1) a 
                committee of unsecured creditors or where the 
                court has determined that the committee of 
                unsecured creditors is not sufficiently active 
                and representative to provide effective 
                oversight of the debtor; and
                  ``(B) does not include any member of a group 
                of affiliated debtors that has aggregate 
                noncontingent liquidated secured and unsecured 
                debts in an amount greater than $2,000,000 
                (excluding debt owed to 1 or more affiliates or 
                insiders);''.
  (b) Conforming Amendment.--Section 1102(a)(3) of title 11, 
United States Code, is amended by inserting ``debtor'' after 
``small business''.
  (c) Adjustment of Dollar Amounts.--Section 104(b) of title 
11, United States Code, as amended by section 226, is amended 
by inserting ``101(51D),'' after ``101(3),'' each place it 
appears.

SEC. 433. STANDARD FORM DISCLOSURE STATEMENT AND PLAN.

  Within a reasonable period of time after the date of 
enactment of this Act, the Judicial Conference of the United 
States shall prescribe in accordance with rule 9009 of the 
Federal Rules of Bankruptcy Procedure official standard form 
disclosure statements and plans of reorganization for small 
business debtors (as defined in section 101 of title 11, United 
States Code, as amended by this Act), designed to achieve a 
practical balance between--
          (1) the reasonable needs of the courts, the United 
        States trustee, creditors, and other parties in 
        interest for reasonably complete information; and
          (2) economy and simplicity for debtors.

SEC. 434. UNIFORM NATIONAL REPORTING REQUIREMENTS.

  (a) Reporting Required.--
          (1) In general.--Chapter 3 of title 11, United States 
        Code, is amended by inserting after section 307 the 
        following:

``Sec. 308. Debtor reporting requirements

  ``(a) For purposes of this section, the term `profitability' 
means, with respect to a debtor, the amount of money that the 
debtor has earned or lost during current and recent fiscal 
periods.
  ``(b) A small business debtor shall file periodic financial 
and other reports containing information including--
          ``(1) the debtor's profitability;
          ``(2) reasonable approximations of the debtor's 
        projected cash receipts and cash disbursements over a 
        reasonable period;
          ``(3) comparisons of actual cash receipts and 
        disbursements with projections in prior reports;
          ``(4)(A) whether the debtor is--
                  ``(i) in compliance in all material respects 
                with postpetition requirements imposed by this 
                title and the Federal Rules of Bankruptcy 
                Procedure; and
                  ``(ii) timely filing tax returns and other 
                required government filings and paying taxes 
                and other administrative expenses when due;
          ``(B) if the debtor is not in compliance with the 
        requirements referred to in subparagraph (A)(i) or 
        filing tax returns and other required government 
        filings and making the payments referred to in 
        subparagraph (A)(ii), what the failures are and how, at 
        what cost, and when the debtor intends to remedy such 
        failures; and
          ``(C) such other matters as are in the best interests 
        of the debtor and creditors, and in the public interest 
        in fair and efficient procedures under chapter 11 of 
        this title.''.
          (2) Clerical amendment.--The table of sections for 
        chapter 3 of title 11, United States Code, is amended 
        by inserting after the item relating to section 307 the 
        following:

``308. Debtor reporting requirements.''.
  (b) Effective Date.--The amendments made by subsection (a) 
shall take effect 60 days after the date on which rules are 
prescribed under section 2075 of title 28, United States Code, 
to establish forms to be used to comply with section 308 of 
title 11, United States Code, as added by subsection (a).

SEC. 435. UNIFORM REPORTING RULES AND FORMS FOR SMALL BUSINESS CASES.

  (a) Proposal of Rules and Forms.--The Judicial Conference of 
the United States shall propose in accordance with section 2073 
of title 28 of the United States Code amended Federal Rules of 
Bankruptcy Procedure, and shall prescribe in accordance with 
rule 9009 of the Federal Rules of Bankruptcy Procedure official 
bankruptcy forms, directing small business debtors to file 
periodic financial and other reports containing information, 
including information relating to--
          (1) the debtor's profitability;
          (2) the debtor's cash receipts and disbursements; and
          (3) whether the debtor is timely filing tax returns 
        and paying taxes and other administrative expenses when 
        due.
  (b) Purpose.--The rules and forms proposed under subsection 
(a) shall be designed to achieve a practical balance among--
          (1) the reasonable needs of the bankruptcy court, the 
        United States trustee, creditors, and other parties in 
        interest for reasonably complete information;
          (2) a small business debtor's interest that required 
        reports be easy and inexpensive to complete; and
          (3) the interest of all parties that the required 
        reports help such debtor to understand such debtor's 
        financial condition and plan the such debtor's future.

SEC. 436. DUTIES IN SMALL BUSINESS CASES.

  (a) Duties in Chapter 11 Cases.--Subchapter I of chapter 11 
of title 11, United States Code, as amended by section 321, is 
amended by adding at the end the following:

``Sec. 1116. Duties of trustee or debtor in possession in small 
                    business cases

  ``In a small business case, a trustee or the debtor in 
possession, in addition to the duties provided in this title 
and as otherwise required by law, shall--
          ``(1) append to the voluntary petition or, in an 
        involuntary case, file not later than 7 days after the 
        date of the order for relief--
                  ``(A) its most recent balance sheet, 
                statement of operations, cash-flow statement, 
                Federal income tax return; or
                  ``(B) a statement made under penalty of 
                perjury that no balance sheet, statement of 
                operations, or cash-flow statement has been 
                prepared and no Federal tax return has been 
                filed;
          ``(2) attend, through its senior management personnel 
        and counsel, meetings scheduled by the court or the 
        United States trustee, including initial debtor 
        interviews, scheduling conferences, and meetings of 
        creditors convened under section 341 unless the court, 
        after notice and a hearing, waives that requirement 
        upon a finding of extraordinary and compelling 
        circumstances;
          ``(3) timely file all schedules and statements of 
        financial affairs, unless the court, after notice and a 
        hearing, grants an extension, which shall not extend 
        such time period to a date later than 30 days after the 
        date of the order for relief, absent extraordinary and 
        compelling circumstances;
          ``(4) file all postpetition financial and other 
        reports required by the Federal Rules of Bankruptcy 
        Procedure or by local rule of the district court;
          ``(5) subject to section 363(c)(2), maintain 
        insurance customary and appropriate to the industry;
          ``(6)(A) timely file tax returns and other required 
        government filings; and
          ``(B) subject to section 363(c)(2), timely pay all 
        taxes entitled to administrative expense priority 
        except those being contested by appropriate proceedings 
        being diligently prosecuted; and
          ``(7) allow the United States trustee, or a 
        designated representative of the United States trustee, 
        to inspect the debtor's business premises, books, and 
        records at reasonable times, after reasonable prior 
        written notice, unless notice is waived by the debtor.
  ``(b) The court may extend the time periods specified in 
paragraphs (1) and (3) of subsection (a) if the debtor 
establishes by clear and convincing evidence that an extension 
is justified by circumstances that there are beyond the 
debtor's control that were not foreseeable on the date of the 
order of relief.''.
  (b) Clerical Amendment.--The table of sections for chapter 11 
of title 11, United States Code, as amended by section 321, is 
amended by inserting after the item relating to section 1115 
the following:

``1116. Duties of trustee or debtor in possession in small business 
          cases.''.

SEC. 437. PLAN FILING AND CONFIRMATION DEADLINES.

  Section 1121 of title 11, United States Code, is amended by 
striking subsection (e) and inserting the following:
  ``(e) In a small business case--
          ``(1) only the debtor may file a plan until after 180 
        days after the date of the order for relief, unless 
        that period is--
                  ``(A) extended as provided by this 
                subsection, after notice and a hearing; or
                  ``(B) the court, for cause, orders otherwise;
          ``(2) the plan and a disclosure statement (if any) 
        shall be filed not later than 300 days after the date 
        of the order for relief; and
          ``(3) the time periods specified in paragraphs (1) 
        and (2), and the time fixed in section 1129(e) within 
        which the plan shall be confirmed, may be extended only 
        if--
                  ``(A) the debtor, after providing notice to 
                parties in interest (including the United 
                States trustee), demonstrates by a 
                preponderance of the evidence that it is more 
                likely than not that the court will confirm a 
                plan within a reasonable period of time;
                  ``(B) a new deadline is imposed at the time 
                the extension is granted;
                  ``(C) the debtor establishes by clear and 
                convincing evidence that an extension is 
                justified by circumstances beyond the debtor's 
                control that were not foreseeable on the date 
                of the order of relief; and
                  ``(D) the order extending time is signed 
                before the existing deadline has expired.''.

SEC. 438. PLAN CONFIRMATION DEADLINE.

  Section 1129 of title 11, United States Code, is amended by 
adding at the end the following:
  ``(e) In a small business case, the court shall confirm a 
plan that complies with the applicable provisions of this title 
and that is filed in accordance with section 1121(e) not later 
than 45 days after the plan is filed unless the time for 
confirmation is extended in accordance with section 1121(e)(3) 
or the debtor establishes by clear and convincing evidence that 
an extension is justified by circumstances beyond the debtor's 
control that were not foreseeable on the date of the order for 
relief.''.

SEC. 439. DUTIES OF THE UNITED STATES TRUSTEE.

  Section 586(a) of title 28, United States Code, is amended--
          (1) in paragraph (3)--
                  (A) in subparagraph (G), by striking ``and'' 
                at the end;
                  (B) by redesignating subparagraph (H) as 
                subparagraph (I); and
                  (C) by inserting after subparagraph (G) the 
                following:
                  ``(H) in small business cases (as defined in 
                section 101 of title 11), performing the 
                additional duties specified in title 11 
                pertaining to such cases; and'';
          (2) in paragraph (5), by striking ``and'' at the end;
          (3) in paragraph (6), by striking the period at the 
        end and inserting a semicolon; and
          (4) by adding at the end the following:
          ``(7) in each of such small business cases--
                  ``(A) conduct an initial debtor interview as 
                soon as practicable after the date of the order 
                for relief but before the first meeting 
                scheduled under section 341(a) of title 11, at 
                which time the United States trustee shall--
                          ``(i) begin to investigate the 
                        debtor's viability;
                          ``(ii) inquire about the debtor's 
                        business plan;
                          ``(iii) explain the debtor's 
                        obligations to file monthly operating 
                        reports and other required reports;
                          ``(iv) attempt to develop an agreed 
                        scheduling order; and
                          ``(v) inform the debtor of other 
                        obligations;
                  ``(B) if determined to be appropriate and 
                advisable, visit the appropriate business 
                premises of the debtor, ascertain the state of 
                the debtor's books and records, and verify that 
                the debtor has filed its tax returns; and
                  ``(C) review and monitor diligently the 
                debtor's activities, to identify as promptly as 
                possible whether the debtor will be unable to 
                confirm a plan; and
          ``(8) in any case in which the United States trustee 
        finds material grounds for any relief under section 
        1112 of title 11, the United States trustee shall apply 
        promptly after making that finding to the court for 
        relief.''.

SEC. 440. SCHEDULING CONFERENCES.

  Section 105(d) of title 11, United States Code, is amended--
          (1) in the matter preceding paragraph (1), by 
        striking ``, may''; and
          (2) by striking paragraph (1) and inserting the 
        following:
          ``(1) shall hold such status conferences as are 
        necessary to further the expeditious and economical 
        resolution of the case; and''.

SEC. 441. SERIAL FILER PROVISIONS.

  Section 362 of title 11, United States Code, as amended by 
sections 106, 305, and 311, is amended--
          (1) in subsection (k), as so redesignated by section 
        305--
                  (A) by striking ``An'' and inserting ``(1) 
                Except as provided in paragraph (2), an''; and
                  (B) by adding at the end the following:
  ``(2) If such violation is based on an action taken by an 
entity in the good faith belief that subsection (h) applies to 
the debtor, the recovery under paragraph (1) of this subsection 
against such entity shall be limited to actual damages.''; and
          (2) by adding at the end the following:
  ``(n)(1) Except as provided in paragraph (2), subsection (a) 
does not apply in a case in which the debtor--
          ``(A) is a debtor in a small business case pending at 
        the time the petition is filed;
          ``(B) was a debtor in a small business case that was 
        dismissed for any reason by an order that became final 
        in the 2-year period ending on the date of the order 
        for relief entered with respect to the petition;
          ``(C) was a debtor in a small business case in which 
        a plan was confirmed in the 2-year period ending on the 
        date of the order for relief entered with respect to 
        the petition; or
          ``(D) is an entity that has acquired substantially 
        all of the assets or business of a small business 
        debtor described in subparagraph (A), (B), or (C), 
        unless such entity establishes by a preponderance of 
        the evidence that such entity acquired substantially 
        all of the assets or business of such small business 
        debtor in good faith and not for the purpose of evading 
        this paragraph.
  ``(2) Paragraph (1) does not apply--
          ``(A) to an involuntary case involving no collusion 
        by the debtor with creditors; or
          ``(B) to the filing of a petition if--
                  ``(i) the debtor proves by a preponderance of 
                the evidence that the filing of the petition 
                resulted from circumstances beyond the control 
                of the debtor not foreseeable at the time the 
                case then pending was filed; and
                  ``(ii) it is more likely than not that the 
                court will confirm a feasible plan, but not a 
                liquidating plan, within a reasonable period of 
                time.''.

SEC. 442. EXPANDED GROUNDS FOR DISMISSAL OR CONVERSION AND APPOINTMENT 
                    OF A TRUSTEE.

  (a) Expanded Grounds for Dismissal or Conversion.--Section 
1112 of title 11, United States Code, is amended by striking 
subsection (b) and inserting the following:
  ``(b)(1) Except as provided in paragraph (2) of this 
subsection, subsection (c) of this section, and section 
1104(a)(3), on request of a party in interest, and after notice 
and a hearing, the court shall convert a case under this 
chapter to a case under chapter 7 or dismiss a case under this 
chapter, whichever is in the best interests of the creditors 
and the estate, if the movement establishes cause.
  ``(2) The relief provided in paragraph (1) shall not be 
granted if--
          ``(A) the granting of such relief is not in the best 
        interests of the creditors or the estate; or
          ``(B) the debtor, or another party in interest, 
        objects and establishes that--
          ``(i) there is reasonable likelihood that a plan will 
        be confirmed within the time frames established in 
        section 1121(e) and 1129(e) of this title, or if such 
        sections do not apply, within such a reasonable period 
        of time; and
          ``(ii) the grounds for granting such relief include 
        an act or omission of the debtor other than under 
        paragraph (4)(A)--
                  ``(I) for which there exists a reasonable 
                justification for the act or omissions;
                  ``(II) the debtor establishes by clear and 
                convincing evidence that an extension is 
                justified by circumstances beyond the debtor's 
                control that were not foreseeable on the date 
                of the order for relief; and
                  ``(III) that will be cured within a 
                reasonable period of time fixed by the court.
  ``(3) The court shall commence the hearing on a motion under 
this subsection not later than 30 days after filing of the 
motion, and shall decide the motion not later than 15 days 
after commencement of such hearing, unless the movant expressly 
consents to a continuance for a specific period of time or 
compelling circumstances prevent the court from meeting the 
time limits established by this paragraph.
  ``(4) For purposes of this subsection, the term `cause' 
includes--
          ``(A) substantial or continuing loss to or diminution 
        of the estate and the absence of a reasonable 
        likelihood of rehabilitation;
          ``(B) gross mismanagement of the estate;
          ``(C) failure to maintain appropriate insurance that 
        poses a risk to the estate or to the public;
          ``(D) unauthorized use of cash collateral 
        substantially harmful to 1 or more creditors;
          ``(E) failure to comply with an order of the court;
          ``(F) unexcused failure to satisfy timely any filing 
        or reporting requirement established by this title or 
        by any rule applicable to a case under this chapter;
          ``(G) failure to attend the meeting of creditors 
        convened under section 341(a) or an examination ordered 
        under rule 2004 of the Federal Rules of Bankruptcy 
        Procedure without good cause shown by the debtor;
          ``(H) failure timely to provide information or attend 
        meetings reasonably requested by the United States 
        trustee (or the bankruptcy administrator, if any);
          ``(I) failure timely to pay taxes owed after the date 
        of the order for relief or to file tax returns due 
        after the date of the order for relief;
          ``(J) failure to file a disclosure statement, or to 
        file or confirm a plan, within the time fixed by this 
        title or by order of the court;
          ``(K) failure to pay any fees or charges required 
        under chapter 123 of title 28;
          ``(L) revocation of an order of confirmation under 
        section 1144;
          ``(M) inability to effectuate substantial 
        consummation of a confirmed plan;
          ``(N) material default by the debtor with respect to 
        a confirmed plan;
          ``(O) termination of a confirmed plan by reason of 
        the occurrence of a condition specified in the plan; 
        and
          ``(P) failure of the debtor to pay any domestic 
        support obligation that first becomes payable after the 
        date of the filing of the petition.
  ``(5) The court shall commence the hearing on a motion under 
this subsection not later than 30 days after filing of the 
motion, and shall decide the motion not later than 15 days 
after commencement of such hearing, unless the movant expressly 
consents to a continuance for a specific period of time or 
compelling circumstances prevent the court from meeting the 
time limits established by this paragraph.''.
  (b) Additional Grounds for Appointment of Trustee.--Section 
1104(a) of title 11, United States Code, is amended--
          (1) in paragraph (1), by striking ``or'' at the end;
          (2) in paragraph (2), by striking the period at the 
        end and inserting ``; or''; and
          (3) by adding at the end the following:
          ``(3) if grounds exist to convert or dismiss the case 
        under section 1112, but the court determines that the 
        appointment of a trustee or an examiner is in the best 
        interests of creditors and the estate.''.

SEC. 443. STUDY OF OPERATION OF TITLE 11, UNITED STATES CODE, WITH 
                    RESPECT TO SMALL BUSINESSES.

  Not later than 2 years after the date of enactment of this 
Act, the Administrator of the Small Business Administration, in 
consultation with the Attorney General, the Director of the 
Executive Office for United States Trustees, and the Director 
of the Administrative Office of the United States Courts, 
shall--
          (1) conduct a study to determine--
                  (A) the internal and external factors that 
                cause small businesses, especially sole 
                proprietorships, to become debtors in cases 
                under title 11, United States Code, and that 
                cause certain small businesses to successfully 
                complete cases under chapter 11 of such title; 
                and
                  (B) how Federal laws relating to bankruptcy 
                may be made more effective and efficient in 
                assisting small businesses to remain viable; 
                and
          (2) submit to the President pro tempore of the Senate 
        and the Speaker of the House of Representatives a 
        report summarizing that study.

SEC. 444. DUTIES WITH RESPECT TO A DEBTOR WHO IS A PLAN ADMINISTRATOR 
                    OF AN EMPLOYEE BENEFIT PLAN.

  (a) In General.--Section 521(a) of title 11, United States 
Code, as amended by sections 106 and 304, is amended--
          (1) in paragraph (5), by striking ``and'' at the end;
          (2) in paragraph (6), by striking the period at the 
        end and inserting ``; and''; and
          (3) by adding after paragraph (6) the following:
          ``(7) unless a trustee is serving in the case, 
        continue to perform the obligations required of the 
        administrator (as defined in section 3 of the Employee 
        Retirement Income Security Act of 1974) of an employee 
        benefit plan if at the time of the commencement of the 
        case the debtor (or any entity designated by the 
        debtor) served as such administrator.''.
  (b) Duties of Trustees.--Section 704(a) of title 11, United 
States Code, as amended by sections 102 and 219, is amended--
          (1) in paragraph (10), by striking ``and'' at the 
        end; and
          (2) by adding at the end the following:
          ``(11) if, at the time of the commencement of the 
        case, the debtor (or any entity designated by the 
        debtor) served as the administrator (as defined in 
        section 3 of the Employee Retirement Income Security 
        Act of 1974) of an employee benefit plan, continue to 
        perform the obligations required of the administrator; 
        and''.
  (c) Conforming Amendment.--Section 1106(a)(1) of title 11, 
United States Code, is amended to read as follows:
          ``(1) perform the duties of the trustee, as specified 
        in paragraphs (2), (5), (7), (8), (9), (10), and (11) 
        of section 704;''.

SEC. 445. APPOINTMENT OF COMMITTEE OF RETIRED EMPLOYEES.

  Section 1114(d) of title 11, United States Code, is amended--
          (1) by striking ``appoint'' and inserting ``order the 
        appointment of'', and
          (2) by adding at the end the following: ``The United 
        States trustee shall appoint any such committee.''.

SEC. 446. EFFECT OF SALE OF ASSETS ON EMPLOYEE BENEFITS.

  Section 363(b) of title 11, United States Code, is amended by 
adding at the end the following:
  ``(3) The court shall not approve the sale of all or 
substantially all the assets of a debtor with 50 or more 
employees until the debtor has reported to the court on the 
potential adverse impact that such sale is likely to have on 
employee benefits, including any pension and health care plans 
sponsored by the debtor.''.

                TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS

SEC. 501. PETITION AND PROCEEDINGS RELATED TO PETITION.

  (a) Technical Amendment Relating to Municipalities.--Section 
921(d) of title 11, United States Code, is amended by inserting 
``notwithstanding section 301(b)'' before the period at the 
end.
  (b) Conforming Amendment.--Section 301 of title 11, United 
States Code, is amended--
          (1) by inserting ``(a)'' before ``A voluntary''; and
          (2) by striking the last sentence and inserting the 
        following:
  ``(b) The commencement of a voluntary case under a chapter of 
this title constitutes an order for relief under such 
chapter.''.

SEC. 502. APPLICABILITY OF OTHER SECTIONS TO CHAPTER 9.

  Section 901(a) of title 11, United States Code, is amended--
          (1) by inserting ``555, 556,'' after ``553,''; and
          (2) by inserting ``559, 560, 561, 562,'' after 
        ``557,''.

                       TITLE VI--BANKRUPTCY DATA

SEC. 601. IMPROVED BANKRUPTCY STATISTICS.

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

``Sec. 159. Bankruptcy statistics

  ``(a) The clerk of the district court, or the clerk of the 
bankruptcy court if one is certified pursuant to section 156(b) 
of this title, shall collect statistics regarding debtors who 
are individuals with primarily consumer debts seeking relief 
under chapters 7, 11, and 13 of title 11. Those statistics 
shall be in a standardized format prescribed by the Director of 
the Administrative Office of the United States Courts (referred 
to in this section as the `Director').
  ``(b) The Director shall--
          ``(1) compile the statistics referred to in 
        subsection (a);
          ``(2) make the statistics available to the public; 
        and
          ``(3) not later than July 1, 2006, and annually 
        thereafter, prepare, and submit to Congress a report 
        concerning the information collected under subsection 
        (a) that contains an analysis of the information.
  ``(c) The compilation required under subsection (b) shall--
          ``(1) be itemized, by chapter, with respect to title 
        11;
          ``(2) be presented in the aggregate and for each 
        district; and
          ``(3) include information concerning--
                  ``(A) the total assets and total liabilities 
                of the debtors described in subsection (a), and 
                in each category of assets and liabilities, as 
                reported in the schedules prescribed pursuant 
                to section 2075 of this title and filed by 
                debtors;
                  ``(B) the current monthly income, average 
                income, and average expenses of debtors as 
                reported on the schedules and statements that 
                each such debtor files under sections 521 and 
                1322 of title 11;
                  ``(C) the aggregate amount of debt discharged 
                in cases filed during the reporting period, 
                determined as the difference between the total 
                amount of debt and obligations of a debtor 
                reported on the schedules and the amount of 
                such debt reported in categories which are 
                predominantly nondischargeable;
                  ``(D) the average period of time between the 
                date of the filing of the petition and the 
                closing of the case for cases closed during the 
                reporting period;
                  ``(E) for cases closed during the reporting 
                period--
                          ``(i) the number of cases in which a 
                        reaffirmation agreement was filed; and
                          ``(ii)(I) the total number of 
                        reaffirmation agreements filed;
                          ``(II) of those cases in which a 
                        reaffirmation agreement was filed, the 
                        number of cases in which the debtor was 
                        not represented by an attorney; and
                          ``(III) of those cases in which a 
                        reaffirmation agreement was filed, the 
                        number of cases in which the 
                        reaffirmation agreement was approved by 
                        the court;
                  ``(F) with respect to cases filed under 
                chapter 13 of title 11, for the reporting 
                period--
                          ``(i)(I) the number of cases in which 
                        a final order was entered determining 
                        the value of property securing a claim 
                        in an amount less than the amount of 
                        the claim; and
                          ``(II) the number of final orders 
                        entered determining the value of 
                        property securing a claim;
                          ``(ii) the number of cases dismissed, 
                        the number of cases dismissed for 
                        failure to make payments under the 
                        plan, the number of cases refiled after 
                        dismissal, and the number of cases in 
                        which the plan was completed, 
                        separately itemized with respect to the 
                        number of modifications made before 
                        completion of the plan, if any; and
                          ``(iii) the number of cases in which 
                        the debtor filed another case during 
                        the 6-year period preceding the filing;
                  ``(G) the number of cases in which creditors 
                were fined for misconduct and any amount of 
                punitive damages awarded by the court for 
                creditor misconduct; and
                  ``(H) the number of cases in which sanctions 
                under rule 9011 of the Federal Rules of 
                Bankruptcy Procedure were imposed against 
                debtor's attorney or damages awarded under such 
                Rule.''.
  (b) Clerical Amendment.--The table of sections for chapter 6 
of title 28, United States Code, is amended by adding at the 
end the following:

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

SEC. 602. UNIFORM RULES FOR THE COLLECTION OF BANKRUPTCY DATA.

  (a) Amendment.--Chapter 39 of title 28, United States Code, 
is amended by adding at the end the following:

``Sec. 589b. Bankruptcy data

  ``(a) Rules.--The Attorney General shall, within a reasonable 
time after the effective date of this section, issue rules 
requiring uniform forms for (and from time to time thereafter 
to appropriately modify and approve)--
          ``(1) final reports by trustees in cases under 
        chapters 7, 12, and 13 of title 11; and
          ``(2) periodic reports by debtors in possession or 
        trustees in cases under chapter 11 of title 11.
  ``(b) Reports.--Each report referred to in subsection (a) 
shall be designed (and the requirements as to place and manner 
of filing shall be established) so as to facilitate compilation 
of data and maximum possible access of the public, both by 
physical inspection at one or more central filing locations, 
and by electronic access through the Internet or other 
appropriate media.
  ``(c) Required Information.--The information required to be 
filed in the reports referred to in subsection (b) shall be 
that which is in the best interests of debtors and creditors, 
and in the public interest in reasonable and adequate 
information to evaluate the efficiency and practicality of the 
Federal bankruptcy system. In issuing rules proposing the forms 
referred to in subsection (a), the Attorney General shall 
strike the best achievable practical balance between--
          ``(1) the reasonable needs of the public for 
        information about the operational results of the 
        Federal bankruptcy system;
          ``(2) economy, simplicity, and lack of undue burden 
        on persons with a duty to file reports; and
          ``(3) appropriate privacy concerns and safeguards.
  ``(d) Final Reports.--The uniform forms for final reports 
required under subsection (a) for use by trustees under 
chapters 7, 12, and 13 of title 11 shall, in addition to such 
other matters as are required by law or as the Attorney General 
in the discretion of the Attorney General shall propose, 
include with respect to a case under such title--
          ``(1) information about the length of time the case 
        was pending;
          ``(2) assets abandoned;
          ``(3) assets exempted;
          ``(4) receipts and disbursements of the estate;
          ``(5) expenses of administration, including for use 
        under section 707(b), actual costs of administering 
        cases under chapter 13 of title 11;
          ``(6) claims asserted;
          ``(7) claims allowed; and
          ``(8) distributions to claimants and claims 
        discharged without payment,
in each case by appropriate category and, in cases under 
chapters 12 and 13 of title 11, date of confirmation of the 
plan, each modification thereto, and defaults by the debtor in 
performance under the plan.
  ``(e) Periodic Reports.--The uniform forms for periodic 
reports required under subsection (a) for use by trustees or 
debtors in possession under chapter 11 of title 11 shall, in 
addition to such other matters as are required by law or as the 
Attorney General in the discretion of the Attorney General 
shall propose, include--
          ``(1) information about the industry classification, 
        published by the Department of Commerce, for the 
        businesses conducted by the debtor;
          ``(2) length of time the case has been pending;
          ``(3) number of full-time employees as of the date of 
        the order for relief and at the end of each reporting 
        period since the case was filed;
          ``(4) cash receipts, cash disbursements and 
        profitability of the debtor for the most recent period 
        and cumulatively since the date of the order for 
        relief;
          ``(5) compliance with title 11, whether or not tax 
        returns and tax payments since the date of the order 
        for relief have been timely filed and made;
          ``(6) all professional fees approved by the court in 
        the case for the most recent period and cumulatively 
        since the date of the order for relief (separately 
        reported, for the professional fees incurred by or on 
        behalf of the debtor, between those that would have 
        been incurred absent a bankruptcy case and those not); 
        and
          ``(7) plans of reorganization filed and confirmed 
        and, with respect thereto, by class, the recoveries of 
        the holders, expressed in aggregate dollar values and, 
        in the case of claims, as a percentage of total claims 
        of the class allowed.''.
  (b) Clerical Amendment.--The table of sections for chapter 39 
of title 28, United States Code, is amended by adding at the 
end the following:

``589b. Bankruptcy data.''.

SEC. 603. AUDIT PROCEDURES.

  (a) In General.--
          (1) Establishment of procedures.--The Attorney 
        General (in judicial districts served by United States 
        trustees) and the Judicial Conference of the United 
        States (in judicial districts served by bankruptcy 
        administrators) shall establish procedures to determine 
        the accuracy, veracity, and completeness of petitions, 
        schedules, and other information that the debtor is 
        required to provide under sections 521 and 1322 of 
        title 11, United States Code, and, if applicable, 
        section 111 of such title, in cases filed under chapter 
        7 or 13 of such title in which the debtor is an 
        individual. Such audits shall be in accordance with 
        generally accepted auditing standards and performed by 
        independent certified public accountants or independent 
        licensed public accountants, provided that the Attorney 
        General and the Judicial Conference, as appropriate, 
        may develop alternative auditing standards not later 
        than 2 years after the date of enactment of this Act.
          (2) Procedures.--Those procedures required by 
        paragraph (1) shall--
                  (A) establish a method of selecting 
                appropriate qualified persons to contract to 
                perform those audits;
                  (B) establish a method of randomly selecting 
                cases to be audited, except that not less than 
                1 out of every 250 cases in each Federal 
                judicial district shall be selected for audit;
                  (C) require audits of schedules of income and 
                expenses that reflect greater than average 
                variances from the statistical norm of the 
                district in which the schedules were filed if 
                those variances occur by reason of higher 
                income or higher expenses than the statistical 
                norm of the district in which the schedules 
                were filed; and
                  (D) establish procedures for providing, not 
                less frequently than annually, public 
                information concerning the aggregate results of 
                such audits including the percentage of cases, 
                by district, in which a material misstatement 
                of income or expenditures is reported.
  (b) Amendments.--Section 586 of title 28, United States Code, 
is amended--
          (1) in subsection (a), by striking paragraph (6) and 
        inserting the following:
          ``(6) make such reports as the Attorney General 
        directs, including the results of audits performed 
        under section 603(a) of the Bankruptcy Abuse Prevention 
        and Consumer Protection Act of 2003;''; and
          (2) by adding at the end the following:
  ``(f)(1) The United States trustee for each district is 
authorized to contract with auditors to perform audits in cases 
designated by the United States trustee, in accordance with the 
procedures established under section 603(a) of the Bankruptcy 
Abuse Prevention and Consumer Protection Act of 2003.
  ``(2)(A) The report of each audit referred to in paragraph 
(1) shall be filed with the court and transmitted to the United 
States trustee. Each report shall clearly and conspicuously 
specify any material misstatement of income or expenditures or 
of assets identified by the person performing the audit. In any 
case in which a material misstatement of income or expenditures 
or of assets has been reported, the clerk of the district court 
(or the clerk of the bankruptcy court if one is certified under 
section 156(b) of this title) shall give notice of the 
misstatement to the creditors in the case.
  ``(B) If a material misstatement of income or expenditures or 
of assets is reported, the United States trustee shall--
          ``(i) report the material misstatement, if 
        appropriate, to the United States Attorney pursuant to 
        section 3057 of title 18; and
          ``(ii) if advisable, take appropriate action, 
        including but not limited to commencing an adversary 
        proceeding to revoke the debtor's discharge pursuant to 
        section 727(d) of title 11.''.
  (c) Amendments to Section 521 of Title 11, U.S.C.--Section 
521(a) of title 11, United States Code, as so designated by 
section 106, is amended in each of paragraphs (3) and (4) by 
inserting ``or an auditor serving under section 586(f) of title 
28'' after ``serving in the case''.
  (d) Amendments to Section 727 of Title 11, U.S.C.--Section 
727(d) of title 11, United States Code, is amended--
          (1) in paragraph (2), by striking ``or'' at the end;
          (2) in paragraph (3), by striking the period at the 
        end and inserting ``; or''; and
          (3) by adding at the end the following:
          ``(4) the debtor has failed to explain 
        satisfactorily--
                  ``(A) a material misstatement in an audit 
                referred to in section 586(f) of title 28; or
                  ``(B) a failure to make available for 
                inspection all necessary accounts, papers, 
                documents, financial records, files, and all 
                other papers, things, or property belonging to 
                the debtor that are requested for an audit 
                referred to in section 586(f) of title 28.''.
  (e) Effective Date.--The amendments made by this section 
shall take effect 18 months after the date of enactment of this 
Act.

SEC. 604. SENSE OF CONGRESS REGARDING AVAILABILITY OF BANKRUPTCY DATA.

  It is the sense of Congress that--
          (1) the national policy of the United States should 
        be that all data held by bankruptcy clerks in 
        electronic form, to the extent such data reflects only 
        public records (as defined in section 107 of title 11, 
        United States Code), should be released in a usable 
        electronic form in bulk to the public, subject to such 
        appropriate privacy concerns and safeguards as Congress 
        and the Judicial Conference of the United States may 
        determine; and
          (2) there should be established a bankruptcy data 
        system in which--
                  (A) a single set of data definitions and 
                forms are used to collect data nationwide; and
                  (B) data for any particular bankruptcy case 
                are aggregated in the same electronic record.

           TITLE VII--ANCILLARY AND OTHER CROSS-BORDER CASES

SEC. 701. AMENDMENT TO ADD CHAPTER 15 TO TITLE 11, UNITED STATES CODE.

  (a) In General.--Title 11, United States Code, is amended by 
inserting after chapter 13 the following:

          ``CHAPTER 15--ANCILLARY AND OTHER CROSS-BORDER CASES

``Sec.
``1501. Purpose and scope of application.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``1502. Definitions.
``1503. International obligations of the United States.
``1504. Commencement of ancillary case.
``1505. Authorization to act in a foreign country.
``1506. Public policy exception.
``1507. Additional assistance.
``1508. Interpretation.

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

``1509. Right of direct access.
``1510. Limited jurisdiction.
``1511. Commencement of case under section 301 or 303.
``1512. Participation of a foreign representative in a case under this 
          title.
``1513. Access of foreign creditors to a case under this title.
``1514. Notification to foreign creditors concerning a case under this 
          title.

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

``1515. Application for recognition.
``1516. Presumptions concerning recognition.
``1517. Order granting recognition.
``1518. Subsequent information.
``1519. Relief that may be granted upon filing petition for recognition.
``1520. Effects of recognition of a foreign main proceeding.
``1521. Relief that may be granted upon recognition.
``1522. Protection of creditors and other interested persons.
``1523. Actions to avoid acts detrimental to creditors.
``1524. Intervention by a foreign representative.

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

``1525. Cooperation and direct communication between the court and 
          foreign courts or foreign representatives.
``1526. Cooperation and direct communication between the trustee and 
          foreign courts or foreign representatives.
``1527. Forms of cooperation.

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``1528. Commencement of a case under this title after recognition of a 
          foreign main proceeding.
``1529. Coordination of a case under this title and a foreign 
          proceeding.
``1530. Coordination of more than 1 foreign proceeding.
``1531. Presumption of insolvency based on recognition of a foreign main 
          proceeding.
``1532. Rule of payment in concurrent proceedings.

``Sec. 1501. Purpose and scope of application

  ``(a) The purpose of this chapter is to incorporate the Model 
Law on Cross-Border Insolvency so as to provide effective 
mechanisms for dealing with cases of cross-border insolvency 
with the objectives of--
          ``(1) cooperation between--
                  ``(A) courts of the United States, United 
                States trustees, trustees, examiners, debtors, 
                and debtors in possession; and
                  ``(B) the courts and other competent 
                authorities of foreign countries involved in 
                cross-border insolvency cases;
          ``(2) greater legal certainty for trade and 
        investment;
          ``(3) fair and efficient administration of cross-
        border insolvencies that protects the interests of all 
        creditors, and other interested entities, including the 
        debtor;
          ``(4) protection and maximization of the value of the 
        debtor's assets; and
          ``(5) facilitation of the rescue of financially 
        troubled businesses, thereby protecting investment and 
        preserving employment.
  ``(b) This chapter applies where--
          ``(1) assistance is sought in the United States by a 
        foreign court or a foreign representative in connection 
        with a foreign proceeding;
          ``(2) assistance is sought in a foreign country in 
        connection with a case under this title;
          ``(3) a foreign proceeding and a case under this 
        title with respect to the same debtor are pending 
        concurrently; or
          ``(4) creditors or other interested persons in a 
        foreign country have an interest in requesting the 
        commencement of, or participating in, a case or 
        proceeding under this title.
  ``(c) This chapter does not apply to--
          ``(1) a proceeding concerning an entity, other than a 
        foreign insurance company, identified by exclusion in 
        section 109(b);
          ``(2) an individual, or to an individual and such 
        individual's spouse, who have debts within the limits 
        specified in section 109(e) and who are citizens of the 
        United States or aliens lawfully admitted for permanent 
        residence in the United States; or
          ``(3) an entity subject to a proceeding under the 
        Securities Investor Protection Act of 1970, a 
        stockbroker subject to subchapter III of chapter 7 of 
        this title, or a commodity broker subject to subchapter 
        IV of chapter 7 of this title.
  ``(d) The court may not grant relief under this chapter with 
respect to any deposit, escrow, trust fund, or other security 
required or permitted under any applicable State insurance law 
or regulation for the benefit of claim holders in the United 
States.

                   ``SUBCHAPTER I--GENERAL PROVISIONS


``Sec. 1502. Definitions

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

``Sec. 1503. International obligations of the United States

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

``Sec. 1504. Commencement of ancillary case

  ``A case under this chapter is commenced by the filing of a 
petition for recognition of a foreign proceeding under section 
1515.

``Sec. 1505. Authorization to act in a foreign country

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

``Sec. 1506. Public policy exception

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

``Sec. 1507. Additional assistance

  ``(a) Subject to the specific limitations stated elsewhere in 
this chapter the court, if recognition is granted, may provide 
additional assistance to a foreign representative under this 
title or under other laws of the United States.
  ``(b) In determining whether to provide additional assistance 
under this title or under other laws of the United States, the 
court shall consider whether such additional assistance, 
consistent with the principles of comity, will reasonably 
assure--
          ``(1) just treatment of all holders of claims against 
        or interests in the debtor's property;
          ``(2) protection of claim holders in the United 
        States against prejudice and inconvenience in the 
        processing of claims in such foreign proceeding;
          ``(3) prevention of preferential or fraudulent 
        dispositions of property of the debtor;
          ``(4) distribution of proceeds of the debtor's 
        property substantially in accordance with the order 
        prescribed by this title; and
          ``(5) if appropriate, the provision of an opportunity 
        for a fresh start for the individual that such foreign 
        proceeding concerns.

``Sec. 1508. Interpretation

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

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


``Sec. 1509. Right of direct access

  ``(a) A foreign representative may commence a case under 
section 1504 by filing directly with the court a petition for 
recognition of a foreign proceeding under section 1515.
  ``(b) If the court grants recognition under section 1515, and 
subject to any limitations that the court may impose consistent 
with the policy of this chapter--
          ``(1) the foreign representative has the capacity to 
        sue and be sued in a court in the United States;
          ``(2) the foreign representative may apply directly 
        to a court in the United States for appropriate relief 
        in that court; and
          ``(3) a court in the United States shall grant comity 
        or cooperation to the foreign representative.
  ``(c) A request for comity or cooperation by a foreign 
representative in a court in the United States other than the 
court which granted recognition shall be accompanied by a 
certified copy of an order granting recognition under section 
1517.
  ``(d) If the court denies recognition under this chapter, the 
court may issue any appropriate order necessary to prevent the 
foreign representative from obtaining comity or cooperation 
from courts in the United States.
  ``(e) Whether or not the court grants recognition, and 
subject to sections 306 and 1510, a foreign representative is 
subject to applicable nonbankruptcy law.
  ``(f) Notwithstanding any other provision of this section, 
the failure of a foreign representative to commence a case or 
to obtain recognition under this chapter does not affect any 
right the foreign representative may have to sue in a court in 
the United States to collect or recover a claim which is the 
property of the debtor.

``Sec. 1510. Limited jurisdiction

  ``The sole fact that a foreign representative files a 
petition under section 1515 does not subject the foreign 
representative to the jurisdiction of any court in the United 
States for any other purpose.

``Sec. 1511. Commencement of case under section 301 or 303

  ``(a) Upon recognition, a foreign representative may 
commence--
          ``(1) an involuntary case under section 303; or
          ``(2) a voluntary case under section 301 or 302, if 
        the foreign proceeding is a foreign main proceeding.
  ``(b) The petition commencing a case under subsection (a) 
must be accompanied by a certified copy of an order granting 
recognition. The court where the petition for recognition has 
been filed must be advised of the foreign representative's 
intent to commence a case under subsection (a) prior to such 
commencement.

``Sec. 1512. Participation of a foreign representative in a case under 
                    this title

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

``Sec. 1513. Access of foreign creditors to a case under this title

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

``Sec. 1514. Notification to foreign creditors concerning a case under 
                    this title

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

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


``Sec. 1515. Application for recognition

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

``Sec. 1516. Presumptions concerning recognition

  ``(a) If the decision or certificate referred to in section 
1515(b) indicates that the foreign proceeding is a foreign 
proceeding and that the person or body is a foreign 
representative, the court is entitled to so presume.
  ``(b) The court is entitled to presume that documents 
submitted in support of the petition for recognition are 
authentic, whether or not they have been legalized.
  ``(c) In the absence of evidence to the contrary, the 
debtor's registered office, or habitual residence in the case 
of an individual, is presumed to be the center of the debtor's 
main interests.

``Sec. 1517. Order granting recognition

  ``(a) Subject to section 1506, after notice and a hearing, an 
order recognizing a foreign proceeding shall be entered if--
          ``(1) such foreign proceeding for which recognition 
        is sought is a foreign main proceeding or foreign 
        nonmain proceeding within the meaning of section 1502;
          ``(2) the foreign representative applying for 
        recognition is a person or body; and
          ``(3) the petition meets the requirements of section 
        1515.
  ``(b) Such foreign proceeding shall be recognized--
          ``(1) as a foreign main proceeding if it is pending 
        in the country where the debtor has the center of its 
        main interests; or
          ``(2) as a foreign nonmain proceeding if the debtor 
        has an establishment within the meaning of section 1502 
        in the foreign country where the proceeding is pending.
  ``(c) A petition for recognition of a foreign proceeding 
shall be decided upon at the earliest possible time. Entry of 
an order recognizing a foreign proceeding constitutes 
recognition under this chapter.
  ``(d) The provisions of this subchapter do not prevent 
modification or termination of recognition if it is shown that 
the grounds for granting it were fully or partially lacking or 
have ceased to exist, but in considering such action the court 
shall give due weight to possible prejudice to parties that 
have relied upon the order granting recognition. A case under 
this chapter may be closed in the manner prescribed under 
section 350.

``Sec. 1518. Subsequent information

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

``Sec. 1519. Relief that may be granted upon filing petition for 
                    recognition

  ``(a) From the time of filing a petition for recognition 
until the court rules on the petition, the court may, at the 
request of the foreign representative, where relief is urgently 
needed to protect the assets of the debtor or the interests of 
the creditors, grant relief of a provisional nature, 
including--
          ``(1) staying execution against the debtor's assets;
          ``(2) entrusting the administration or realization of 
        all or part of the debtor's assets located in the 
        United States to the foreign representative or another 
        person authorized by the court, including an examiner, 
        in order to protect and preserve the value of assets 
        that, by their nature or because of other 
        circumstances, are perishable, susceptible to 
        devaluation or otherwise in jeopardy; and
          ``(3) any relief referred to in paragraph (3), (4), 
        or (7) of section 1521(a).
  ``(b) Unless extended under section 1521(a)(6), the relief 
granted under this section terminates when the petition for 
recognition is granted.
  ``(c) It is a ground for denial of relief under this section 
that such relief would interfere with the administration of a 
foreign main proceeding.
  ``(d) The court may not enjoin a police or regulatory act of 
a governmental unit, including a criminal action or proceeding, 
under this section.
  ``(e) The standards, procedures, and limitations applicable 
to an injunction shall apply to relief under this section.
  ``(f) The exercise of rights not subject to the stay arising 
under section 362(a) pursuant to paragraph (6), (7), (17), or 
(27) of section 362(b) or pursuant to section 362(n) shall not 
be stayed by any order of a court or administrative agency in 
any proceeding under this chapter.

``Sec. 1520. Effects of recognition of a foreign main proceeding

  ``(a) Upon recognition of a foreign proceeding that is a 
foreign main proceeding--
          ``(1) sections 361 and 362 apply with respect to the 
        debtor and the property of the debtor that is within 
        the territorial jurisdiction of the United States;
          ``(2) sections 363, 549, and 552 apply to a transfer 
        of an interest of the debtor in property that is within 
        the territorial jurisdiction of the United States to 
        the same extent that the sections would apply to 
        property of an estate;
          ``(3) unless the court orders otherwise, the foreign 
        representative may operate the debtor's business and 
        may exercise the rights and powers of a trustee under 
        and to the extent provided by sections 363 and 552; and
          ``(4) section 552 applies to property of the debtor 
        that is within the territorial jurisdiction of the 
        United States.
  ``(b) Subsection (a) does not affect the right to commence an 
individual action or proceeding in a foreign country to the 
extent necessary to preserve a claim against the debtor.
  ``(c) Subsection (a) does not affect the right of a foreign 
representative or an entity to file a petition commencing a 
case under this title or the right of any party to file claims 
or take other proper actions in such a case.

``Sec. 1521. Relief that may be granted upon recognition

  ``(a) Upon recognition of a foreign proceeding, whether main 
or nonmain, where necessary to effectuate the purpose of this 
chapter and to protect the assets of the debtor or the 
interests of the creditors, the court may, at the request of 
the foreign representative, grant any appropriate relief, 
including--
          ``(1) staying the commencement or continuation of an 
        individual action or proceeding concerning the debtor's 
        assets, rights, obligations or liabilities to the 
        extent they have not been stayed under section 1520(a);
          ``(2) staying execution against the debtor's assets 
        to the extent it has not been stayed under section 
        1520(a);
          ``(3) suspending the right to transfer, encumber or 
        otherwise dispose of any assets of the debtor to the 
        extent this right has not been suspended under section 
        1520(a);
          ``(4) providing for the examination of witnesses, the 
        taking of evidence or the delivery of information 
        concerning the debtor's assets, affairs, rights, 
        obligations or liabilities;
          ``(5) entrusting the administration or realization of 
        all or part of the debtor's assets within the 
        territorial jurisdiction of the United States to the 
        foreign representative or another person, including an 
        examiner, authorized by the court;
          ``(6) extending relief granted under section 1519(a); 
        and
          ``(7) granting any additional relief that may be 
        available to a trustee, except for relief available 
        under sections 522, 544, 545, 547, 548, 550, and 
        724(a).
  ``(b) Upon recognition of a foreign proceeding, whether main 
or nonmain, the court may, at the request of the foreign 
representative, entrust the distribution of all or part of the 
debtor's assets located in the United States to the foreign 
representative or another person, including an examiner, 
authorized by the court, provided that the court is satisfied 
that the interests of creditors in the United States are 
sufficiently protected.
  ``(c) In granting relief under this section to a 
representative of a foreign nonmain proceeding, the court must 
be satisfied that the relief relates to assets that, under the 
law of the United States, should be administered in the foreign 
nonmain proceeding or concerns information required in that 
proceeding.
  ``(d) The court may not enjoin a police or regulatory act of 
a governmental unit, including a criminal action or proceeding, 
under this section.
  ``(e) The standards, procedures, and limitations applicable 
to an injunction shall apply to relief under paragraphs (1), 
(2), (3), and (6) of subsection (a).
  ``(f) The exercise of rights not subject to the stay arising 
under section 362(a) pursuant to paragraph (6), (7), (17), or 
(27) of section 362(b) or pursuant to section 362(n) shall not 
be stayed by any order of a court or administrative agency in 
any proceeding under this chapter.

``Sec. 1522. Protection of creditors and other interested persons

  ``(a) The court may grant relief under section 1519 or 1521, 
or may modify or terminate relief under subsection (c), only if 
the interests of the creditors and other interested entities, 
including the debtor, are sufficiently protected.
  ``(b) The court may subject relief granted under section 1519 
or 1521, or the operation of the debtor's business under 
section 1520(a)(3), to conditions it considers appropriate, 
including the giving of security or the filing of a bond.
  ``(c) The court may, at the request of the foreign 
representative or an entity affected by relief granted under 
section 1519 or 1521, or at its own motion, modify or terminate 
such relief.
  ``(d) Section 1104(d) shall apply to the appointment of an 
examiner under this chapter. Any examiner shall comply with the 
qualification requirements imposed on a trustee by section 322.

``Sec. 1523. Actions to avoid acts detrimental to creditors

  ``(a) Upon recognition of a foreign proceeding, the foreign 
representative has standing in a case concerning the debtor 
pending under another chapter of this title to initiate actions 
under sections 522, 544, 545, 547, 548, 550, 553, and 724(a).
  ``(b) When a foreign proceeding is a foreign nonmain 
proceeding, the court must be satisfied that an action under 
subsection (a) relates to assets that, under United States law, 
should be administered in the foreign nonmain proceeding.

``Sec. 1524. Intervention by a foreign representative

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

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


``Sec. 1525. Cooperation and direct communication between the court and 
                    foreign courts or foreign representatives

  ``(a) Consistent with section 1501, the court shall cooperate 
to the maximum extent possible with a foreign court or a 
foreign representative, either directly or through the trustee.
  ``(b) The court is entitled to communicate directly with, or 
to request information or assistance directly from, a foreign 
court or a foreign representative, subject to the rights of a 
party in interest to notice and participation.

``Sec. 1526. Cooperation and direct communication between the trustee 
                    and foreign courts or foreign representatives

  ``(a) Consistent with section 1501, the trustee or other 
person, including an examiner, authorized by the court, shall, 
subject to the supervision of the court, cooperate to the 
maximum extent possible with a foreign court or a foreign 
representative.
  ``(b) The trustee or other person, including an examiner, 
authorized by the court is entitled, subject to the supervision 
of the court, to communicate directly with a foreign court or a 
foreign representative.

``Sec. 1527. Forms of cooperation

  ``Cooperation referred to in sections 1525 and 1526 may be 
implemented by any appropriate means, including--
          ``(1) appointment of a person or body, including an 
        examiner, to act at the direction of the court;
          ``(2) communication of information by any means 
        considered appropriate by the court;
          ``(3) coordination of the administration and 
        supervision of the debtor's assets and affairs;
          ``(4) approval or implementation of agreements 
        concerning the coordination of proceedings; and
          ``(5) coordination of concurrent proceedings 
        regarding the same debtor.

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS


``Sec. 1528. Commencement of a case under this title after recognition 
                    of a foreign main proceeding

  ``After recognition of a foreign main proceeding, a case 
under another chapter of this title may be commenced only if 
the debtor has assets in the United States. The effects of such 
case shall be restricted to the assets of the debtor that are 
within the territorial jurisdiction of the United States and, 
to the extent necessary to implement cooperation and 
coordination under sections 1525, 1526, and 1527, to other 
assets of the debtor that are within the jurisdiction of the 
court under sections 541(a) of this title, and 1334(e) of title 
28, to the extent that such other assets are not subject to the 
jurisdiction and control of a foreign proceeding that has been 
recognized under this chapter.

``Sec. 1529. Coordination of a case under this title and a foreign 
                    proceeding

  ``If a foreign proceeding and a case under another chapter of 
this title are pending concurrently regarding the same debtor, 
the court shall seek cooperation and coordination under 
sections 1525, 1526, and 1527, and the following shall apply:
          ``(1) If the case in the United States pending at the 
        time the petition for recognition of such foreign 
        proceeding is filed--
                  ``(A) any relief granted under section 1519 
                or 1521 must be consistent with the relief 
                granted in the case in the United States; and
                  ``(B) section 1520 does not apply even if 
                such foreign proceeding is recognized as a 
                foreign main proceeding.
          ``(2) If a case in the United States under this title 
        commences after recognition, or after the date of the 
        filing of the petition for recognition, of such foreign 
        proceeding--
                  ``(A) any relief in effect under section 1519 
                or 1521 shall be reviewed by the court and 
                shall be modified or terminated if inconsistent 
                with the case in the United States; and
                  ``(B) if such foreign proceeding is a foreign 
                main proceeding, the stay and suspension 
                referred to in section 1520(a) shall be 
                modified or terminated if inconsistent with the 
                relief granted in the case in the United 
                States.
          ``(3) In granting, extending, or modifying relief 
        granted to a representative of a foreign nonmain 
        proceeding, the court must be satisfied that the relief 
        relates to assets that, under the laws of the United 
        States, should be administered in the foreign nonmain 
        proceeding or concerns information required in that 
        proceeding.
          ``(4) In achieving cooperation and coordination under 
        sections 1528 and 1529, the court may grant any of the 
        relief authorized under section 305.

``Sec. 1530. Coordination of more than 1 foreign proceeding

  ``In matters referred to in section 1501, with respect to 
more than 1 foreign proceeding regarding the debtor, the court 
shall seek cooperation and coordination under sections 1525, 
1526, and 1527, and the following shall apply:
          ``(1) Any relief granted under section 1519 or 1521 
        to a representative of a foreign nonmain proceeding 
        after recognition of a foreign main proceeding must be 
        consistent with the foreign main proceeding.
          ``(2) If a foreign main proceeding is recognized 
        after recognition, or after the filing of a petition 
        for recognition, of a foreign nonmain proceeding, any 
        relief in effect under section 1519 or 1521 shall be 
        reviewed by the court and shall be modified or 
        terminated if inconsistent with the foreign main 
        proceeding.
          ``(3) If, after recognition of a foreign nonmain 
        proceeding, another foreign nonmain proceeding is 
        recognized, the court shall grant, modify, or terminate 
        relief for the purpose of facilitating coordination of 
        the proceedings.

``Sec. 1531. Presumption of insolvency based on recognition of a 
                    foreign main proceeding

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

``Sec. 1532. Rule of payment in concurrent proceedings

  ``Without prejudice to secured claims or rights in rem, a 
creditor who has received payment with respect to its claim in 
a foreign proceeding pursuant to a law relating to insolvency 
may not receive a payment for the same claim in a case under 
any other chapter of this title regarding the debtor, so long 
as the payment to other creditors of the same class is 
proportionately less than the payment the creditor has already 
received.''.
  (b) Clerical Amendment.--The table of chapters for title 11, 
United States Code, is amended by inserting after the item 
relating to chapter 13 the following:

``15. Ancillary and Other Cross-Border Cases.....................1501''.

SEC. 702. OTHER AMENDMENTS TO TITLES 11 AND 28, UNITED STATES CODE.

  (a) Applicability of Chapters.--Section 103 of title 11, 
United States Code, is amended--
          (1) in subsection (a), by inserting before the period 
        the following: ``, and this chapter, sections 307, 
        362(n), 555 through 557, and 559 through 562 apply in a 
        case under chapter 15''; and
          (2) by adding at the end the following:
  ``(k) Chapter 15 applies only in a case under such chapter, 
except that--
          ``(1) sections 1505, 1513, and 1514 apply in all 
        cases under this title; and
          ``(2) section 1509 applies whether or not a case 
        under this title is pending.''.
  (b) Definitions.--Section 101 of title 11, United States 
Code, is amended by striking paragraphs (23) and (24) and 
inserting the following:
          ``(23) `foreign proceeding' means a collective 
        judicial or administrative proceeding in a foreign 
        country, including an interim proceeding, under a law 
        relating to insolvency or adjustment of debt in which 
        proceeding the assets and affairs of the debtor are 
        subject to control or supervision by a foreign court, 
        for the purpose of reorganization or liquidation;
          ``(24) `foreign representative' means a person or 
        body, including a person or body appointed on an 
        interim basis, authorized in a foreign proceeding to 
        administer the reorganization or the liquidation of the 
        debtor's assets or affairs or to act as a 
        representative of such foreign proceeding;''.
  (c) Amendments to Title 28, United States Code.--
          (1) Procedures.--Section 157(b)(2) of title 28, 
        United States Code, is amended--
                  (A) in subparagraph (N), by striking ``and'' 
                at the end;
                  (B) in subparagraph (O), by striking the 
                period at the end and inserting ``; and''; and
                  (C) by adding at the end the following:
                  ``(P) recognition of foreign proceedings and 
                other matters under chapter 15 of title 11.''.
          (2) Bankruptcy cases and proceedings.--Section 
        1334(c) of title 28, United States Code, is amended by 
        striking ``Nothing in'' and inserting ``Except with 
        respect to a case under chapter 15 of title 11, nothing 
        in''.
          (3) Duties of trustees.--Section 586(a)(3) of title 
        28, United States Code, is amended by striking ``or 
        13'' and inserting ``13, or 15''.
          (4) Venue of cases ancillary to foreign 
        proceedings.--Section 1410 of title 28, United States 
        Code, is amended to read as follows:

``Sec. 1410. Venue of cases ancillary to foreign proceedings

  ``A case under chapter 15 of title 11 may be commenced in the 
district court of the United States for the district--
          ``(1) in which the debtor has its principal place of 
        business or principal assets in the United States;
          ``(2) if the debtor does not have a place of business 
        or assets in the United States, in which there is 
        pending against the debtor an action or proceeding in a 
        Federal or State court; or
          ``(3) in a case other than those specified in 
        paragraph (1) or (2), in which venue will be consistent 
        with the interests of justice and the convenience of 
        the parties, having regard to the relief sought by the 
        foreign representative.''.
  (d) Other Sections of Title 11.--Title 11 of the United 
States Code is amended--
          (1) in section 109(b), by striking paragraph (3) and 
        inserting the following:
          ``(3)(A) a foreign insurance company, engaged in such 
        business in the United States; or
          ``(B) a foreign bank, savings bank, cooperative bank, 
        savings and loan association, building and loan 
        association, or credit union, that has a branch or 
        agency (as defined in section 1(b) of the International 
        Banking Act of 1978 in the United States.'';
          (2) in section 303, by striking subsection (k);
          (3) by striking section 304;
          (4) in the table of sections for chapter 3 by 
        striking the item relating to section 304;
          (5) in section 306 by striking ``, 304,'' each place 
        it appears;
          (6) in section 305(a) by striking paragraph (2) and 
        inserting the following:
          ``(2)(A) a petition under section 1515 for 
        recognition of a foreign proceeding has been granted; 
        and
          ``(B) the purposes of chapter 15 of this title would 
        be best served by such dismissal or suspension.''; and
          (7) in section 508--
                  (A) by striking subsection (a); and
                  (B) in subsection (b), by striking ``(b)''.

                TITLE VII--FINANCIAL CONTRACT PROVISIONS

SEC. 801. TREATMENT OF CERTAIN AGREEMENTS BY CONSERVATORS OR RECEIVERS 
                    OF INSURED DEPOSITORY INSTITUTIONS.

  (a) Definition of Qualified Financial Contract.--Section 
11(e)(8)(D) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)(D)) is amended--
          (1) by striking ``subsection--'' and inserting 
        ``subsection, the following definitions shall apply:''; 
        and
          (2) in clause (i), by inserting ``, resolution, or 
        order'' after ``any similar agreement that the 
        Corporation determines by regulation''.
  (b) Definition of Securities Contract.--Section 
11(e)(8)(D)(ii) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)(D)(ii)) is amended to read as follows:
                          ``(ii) Securities contract.--The term 
                        `securities contract'--
                                  ``(I) means a contract for 
                                the purchase, sale, or loan of 
                                a security, a certificate of 
                                deposit, a mortgage loan, or 
                                any interest in a mortgage 
                                loan, a group or index of 
                                securities, certificates of 
                                deposit, or mortgage loans or 
                                interests therein (including 
                                any interest therein or based 
                                on the value thereof) or any 
                                option on any of the foregoing, 
                                including any option to 
                                purchase or sell any such 
                                security, certificate of 
                                deposit, mortgage loan, 
                                interest, group or index, or 
                                option, and including any 
                                repurchase or reverse 
                                repurchase transaction on any 
                                such security, certificate of 
                                deposit, mortgage loan, 
                                interest, group or index, or 
                                option;
                                  ``(II) does not include any 
                                purchase, sale, or repurchase 
                                obligation under a 
                                participation in a commercial 
                                mortgage loan unless the 
                                Corporation determines by 
                                regulation, resolution, or 
                                order to include any such 
                                agreement within the meaning of 
                                such term;
                                  ``(III) means any option 
                                entered into on a national 
                                securities exchange relating to 
                                foreign currencies;
                                  ``(IV) means the guarantee by 
                                or to any securities clearing 
                                agency of any settlement of 
                                cash, securities, certificates 
                                of deposit, mortgage loans or 
                                interests therein, group or 
                                index of securities, 
                                certificates of deposit, or 
                                mortgage loans or interests 
                                therein (including any interest 
                                therein or based on the value 
                                thereof) or option on any of 
                                the foregoing, including any 
                                option to purchase or sell any 
                                such security, certificate of 
                                deposit, mortgage loan, 
                                interest, group or index, or 
                                option;
                                  ``(V) means any margin loan;
                                  ``(VI) means any other 
                                agreement or transaction that 
                                is similar to any agreement or 
                                transaction referred to in this 
                                clause;
                                  ``(VII) means any combination 
                                of the agreements or 
                                transactions referred to in 
                                this clause;
                                  ``(VIII) means any option to 
                                enter into any agreement or 
                                transaction referred to in this 
                                clause;
                                  ``(IX) means a master 
                                agreement that provides for an 
                                agreement or transaction 
                                referred to in subclause (I), 
                                (III), (IV), (V), (VI), (VII), 
                                or (VIII), together with all 
                                supplements to any such master 
                                agreement, without regard to 
                                whether the master agreement 
                                provides for an agreement or 
                                transaction that is not a 
                                securities contract under this 
                                clause, except that the master 
                                agreement shall be considered 
                                to be a securities contract 
                                under this clause only with 
                                respect to each agreement or 
                                transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (III), (IV), 
                                (V), (VI), (VII), or (VIII); 
                                and
                                  ``(X) means any security 
                                agreement or arrangement or 
                                other credit enhancement 
                                related to any agreement or 
                                transaction referred to in this 
                                clause, including any guarantee 
                                or reimbursement obligation in 
                                connection with any agreement 
                                or transaction referred to in 
                                this clause.''.
  (c) Definition of Commodity Contract.--Section 
11(e)(8)(D)(iii) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(e)(8)(D)(iii)) is amended to read as follows:
                          ``(iii) Commodity contract.--The term 
                        `commodity contract' means--
                                  ``(I) with respect to a 
                                futures commission merchant, a 
                                contract for the purchase or 
                                sale of a commodity for future 
                                delivery on, or subject to the 
                                rules of, a contract market or 
                                board of trade;
                                  ``(II) with respect to a 
                                foreign futures commission 
                                merchant, a foreign future;
                                  ``(III) with respect to a 
                                leverage transaction merchant, 
                                a leverage transaction;
                                  ``(IV) with respect to a 
                                clearing organization, a 
                                contract for the purchase or 
                                sale of a commodity for future 
                                delivery on, or subject to the 
                                rules of, a contract market or 
                                board of trade that is cleared 
                                by such clearing organization, 
                                or commodity option traded on, 
                                or subject to the rules of, a 
                                contract market or board of 
                                trade that is cleared by such 
                                clearing organization;
                                  ``(V) with respect to a 
                                commodity options dealer, a 
                                commodity option;
                                  ``(VI) any other agreement or 
                                transaction that is similar to 
                                any agreement or transaction 
                                referred to in this clause;
                                  ``(VII) any combination of 
                                the agreements or transactions 
                                referred to in this clause;
                                  ``(VIII) any option to enter 
                                into any agreement or 
                                transaction referred to in this 
                                clause;
                                  ``(IX) a master agreement 
                                that provides for an agreement 
                                or transaction referred to in 
                                subclause (I), (II), (III), 
                                (IV), (V), (VI), (VII), or 
                                (VIII), together with all 
                                supplements to any such master 
                                agreement, without regard to 
                                whether the master agreement 
                                provides for an agreement or 
                                transaction that is not a 
                                commodity contract under this 
                                clause, except that the master 
                                agreement shall be considered 
                                to be a commodity contract 
                                under this clause only with 
                                respect to each agreement or 
                                transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (II), (III), 
                                (IV), (V), (VI), (VII), or 
                                (VIII); or
                                  ``(X) any security agreement 
                                or arrangement or other credit 
                                enhancement related to any 
                                agreement or transaction 
                                referred to in this clause, 
                                including any guarantee or 
                                reimbursement obligation in 
                                connection with any agreement 
                                or transaction referred to in 
                                this clause.''.
  (d) Definition of Forward Contract.--Section 11(e)(8)(D)(iv) 
of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)(D)(iv)) is amended to read as follows:
                          ``(iv) Forward contract.--The term 
                        `forward contract' means--
                                  ``(I) a contract (other than 
                                a commodity contract) for the 
                                purchase, sale, or transfer of 
                                a commodity 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 
                                2 days after the date the 
                                contract is entered into, 
                                including, a repurchase 
                                transaction, reverse repurchase 
                                transaction, consignment, 
                                lease, swap, hedge transaction, 
                                deposit, loan, option, 
                                allocated transaction, 
                                unallocated transaction, or any 
                                other similar agreement;
                                  ``(II) any combination of 
                                agreements or transactions 
                                referred to in subclauses (I) 
                                and (III);
                                  ``(III) any option to enter 
                                into any agreement or 
                                transaction referred to in 
                                subclause (I) or (II);
                                  ``(IV) a master agreement 
                                that provides for an agreement 
                                or transaction referred to in 
                                subclauses (I), (II), or (III), 
                                together with all supplements 
                                to any such master agreement, 
                                without regard to whether the 
                                master agreement provides for 
                                an agreement or transaction 
                                that is not a forward contract 
                                under this clause, except that 
                                the master agreement shall be 
                                considered to be a forward 
                                contract under this clause only 
                                with respect to each agreement 
                                or transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (II), or 
                                (III); or
                                  ``(V) any security agreement 
                                or arrangement or other credit 
                                enhancement related to any 
                                agreement or transaction 
                                referred to in subclause (I), 
                                (II), (III), or (IV), including 
                                any guarantee or reimbursement 
                                obligation in connection with 
                                any agreement or transaction 
                                referred to in any such 
                                subclause.''.
  (e) Definition of Repurchase Agreement.--Section 
11(e)(8)(D)(v) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)(D)(v)) is amended to read as follows:
                          ``(v) Repurchase agreement.--The term 
                        `repurchase agreement' (which 
                        definition also applies to a reverse 
                        repurchase agreement)--
                                  ``(I) means an agreement, 
                                including related terms, which 
                                provides for the transfer of 
                                one or more certificates of 
                                deposit, mortgage-related 
                                securities (as such term is 
                                defined in the Securities 
                                Exchange Act of 1934), mortgage 
                                loans, interests in mortgage-
                                related securities or mortgage 
                                loans, eligible bankers' 
                                acceptances, qualified foreign 
                                government securities or 
                                securities that are direct 
                                obligations of, or that are 
                                fully guaranteed 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, securities, 
                                mortgage loans, or interests 
                                with a simultaneous agreement 
                                by such transferee to transfer 
                                to the transferor thereof 
                                certificates of deposit, 
                                eligible bankers' acceptances, 
                                securities, mortgage loans, or 
                                interests as described above, 
                                at a date certain not later 
                                than 1 year after such 
                                transfers or on demand, against 
                                the transfer of funds, or any 
                                other similar agreement;
                                  ``(II) does not include any 
                                repurchase obligation under a 
                                participation in a commercial 
                                mortgage loan unless the 
                                Corporation determines by 
                                regulation, resolution, or 
                                order to include any such 
                                participation within the 
                                meaning of such term;
                                  ``(III) means any combination 
                                of agreements or transactions 
                                referred to in subclauses (I) 
                                and (IV);
                                  ``(IV) means any option to 
                                enter into any agreement or 
                                transaction referred to in 
                                subclause (I) or (III);
                                  ``(V) means a master 
                                agreement that provides for an 
                                agreement or transaction 
                                referred to in subclause (I), 
                                (III), or (IV), together with 
                                all supplements to any such 
                                master agreement, without 
                                regard to whether the master 
                                agreement provides for an 
                                agreement or transaction that 
                                is not a repurchase agreement 
                                under this clause, except that 
                                the master agreement shall be 
                                considered to be a repurchase 
                                agreement under this subclause 
                                only with respect to each 
                                agreement or transaction under 
                                the master agreement that is 
                                referred to in subclause (I), 
                                (III), or (IV); and
                                  ``(VI) means any security 
                                agreement or arrangement or 
                                other credit enhancement 
                                related to any agreement or 
                                transaction referred to in 
                                subclause (I), (III), (IV), or 
                                (V), including any guarantee or 
                                reimbursement obligation in 
                                connection with any agreement 
                                or transaction referred to in 
                                any such subclause.
                        For purposes of this clause, the term 
                        `qualified foreign government security' 
                        means a security that is a direct 
                        obligation of, or that is fully 
                        guaranteed by, the central government 
                        of a member of the Organization for 
                        Economic Cooperation and Development 
                        (as determined by regulation or order 
                        adopted by the appropriate Federal 
                        banking authority).''.
  (f) Definition of Swap Agreement.--Section 11(e)(8)(D)(vi) of 
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(vi)) 
is amended to read as follows:
                          ``(vi) Swap agreement.--The term 
                        `swap agreement' means--
                                  ``(I) any agreement, 
                                including the terms and 
                                conditions incorporated by 
                                reference in any such 
                                agreement, which is an interest 
                                rate swap, option, future, or 
                                forward agreement, including a 
                                rate floor, rate cap, rate 
                                collar, cross-currency rate 
                                swap, and basis swap; a spot, 
                                same day-tomorrow, tomorrow-
                                next, forward, or other foreign 
                                exchange or precious metals 
                                agreement; a currency swap, 
                                option, future, or forward 
                                agreement; an equity index or 
                                equity swap, option, future, or 
                                forward agreement; a debt index 
                                or debt swap, option, future, 
                                or forward agreement; a total 
                                return, credit spread or credit 
                                swap, option, future, or 
                                forward agreement; a commodity 
                                index or commodity swap, 
                                option, future, or forward 
                                agreement; or a weather swap, 
                                weather derivative, or weather 
                                option;
                                  ``(II) any agreement or 
                                transaction that is similar to 
                                any other agreement or 
                                transaction referred to in this 
                                clause and that is of a type 
                                that has been, is presently, or 
                                in the future becomes, the 
                                subject of recurrent dealings 
                                in the swap markets (including 
                                terms and conditions 
                                incorporated by reference in 
                                such agreement) and that is a 
                                forward, swap, future, or 
                                option on one or more rates, 
                                currencies, commodities, equity 
                                securities or other equity 
                                instruments, debt securities or 
                                other debt instruments, 
                                quantitative measures 
                                associated with an occurrence, 
                                extent of an occurrence, or 
                                contingency associated with a 
                                financial, commercial, or 
                                economic consequence, or 
                                economic or financial indices 
                                or measures of economic or 
                                financial risk or value;
                                  ``(III) any combination of 
                                agreements or transactions 
                                referred to in this clause;
                                  ``(IV) any option to enter 
                                into any agreement or 
                                transaction referred to in this 
                                clause;
                                  ``(V) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in 
                                subclause (I), (II), (III), or 
                                (IV), together with all 
                                supplements to any such master 
                                agreement, without regard to 
                                whether the master agreement 
                                contains an agreement or 
                                transaction that is not a swap 
                                agreement under this clause, 
                                except that the master 
                                agreement shall be considered 
                                to be a swap agreement under 
                                this clause only with respect 
                                to each agreement or 
                                transaction under the master 
                                agreement that is referred to 
                                in subclause (I), (II), (III), 
                                or (IV); and
                                  ``(VI) any security agreement 
                                or arrangement or other credit 
                                enhancement related to any 
                                agreements or transactions 
                                referred to in subclause (I), 
                                (II), (III), (IV), or (V), 
                                including any guarantee or 
                                reimbursement obligation in 
                                connection with any agreement 
                                or transaction referred to in 
                                any such subclause.
                        Such term is applicable for purposes of 
                        this subsection only and shall not be 
                        construed or applied so as to challenge 
                        or affect the characterization, 
                        definition, or treatment of any swap 
                        agreement under any other statute, 
                        regulation, or rule, including the 
                        Securities Act of 1933, the Securities 
                        Exchange Act of 1934, the Public 
                        Utility Holding Company Act of 1935, 
                        the Trust Indenture Act of 1939, the 
                        Investment Company Act of 1940, the 
                        Investment Advisers Act of 1940, the 
                        Securities Investor Protection Act of 
                        1970, the Commodity Exchange Act, the 
                        Gramm-Leach-Bliley Act, and the Legal 
                        Certainty for Bank Products Act of 
                        2000.''.
  (g) Definition of Transfer.--Section 11(e)(8)(D)(viii) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(viii)) 
is amended to read as follows:
                          ``(viii) Transfer.--The term 
                        `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 
                        depository institution's equity of 
                        redemption.''.
  (h) Treatment of Qualified Financial Contracts.--Section 
11(e)(8) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)) is amended--
          (1) in subparagraph (A)--
                  (A) by striking ``paragraph (10)'' and 
                inserting ``paragraphs (9) and (10)'';
                  (B) in clause (i), by striking ``to cause the 
                termination or liquidation'' and inserting 
                ``such person has to cause the termination, 
                liquidation, or acceleration''; and
                  (C) by striking clause (ii) and inserting the 
                following:
                          ``(ii) any right under any security 
                        agreement or arrangement or other 
                        credit enhancement related to one or 
                        more qualified financial contracts 
                        described in clause (i);''; and
          (2) in subparagraph (E), by striking clause (ii) and 
        inserting the following:
                          ``(ii) any right under any security 
                        agreement or arrangement or other 
                        credit enhancement related to one or 
                        more qualified financial contracts 
                        described in clause (i);''.
  (i) Avoidance of Transfers.--Section 11(e)(8)(C)(i) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(C)(i)) is 
amended by inserting ``section 5242 of the Revised Statutes of 
the United States or any other Federal or State law relating to 
the avoidance of preferential or fraudulent transfers,'' before 
``the Corporation''.

SEC. 802. AUTHORITY OF THE CORPORATION WITH RESPECT TO FAILED AND 
                    FAILING INSTITUTIONS.

  (a) In General.--Section 11(e)(8) of the Federal Deposit 
Insurance Act (12 U.S.C. 1821(e)(8)) is amended--
          (1) in subparagraph (E), by striking ``other than 
        paragraph (12) of this subsection, subsection (d)(9)'' 
        and inserting ``other than subsections (d)(9) and 
        (e)(10)''; and
          (2) by adding at the end the following new 
        subparagraphs:
                  ``(F) Clarification.--No provision of law 
                shall be construed as limiting the right or 
                power of the Corporation, or authorizing any 
                court or agency to limit or delay, in any 
                manner, the right or power of the Corporation 
                to transfer any qualified financial contract in 
                accordance with paragraphs (9) and (10) of this 
                subsection or to disaffirm or repudiate any 
                such contract in accordance with subsection 
                (e)(1) of this section.
                  ``(G) Walkaway clauses not effective.--
                          ``(i) In general.--Notwithstanding 
                        the provisions of subparagraphs (A) and 
                        (E), and sections 403 and 404 of the 
                        Federal Deposit Insurance Corporation 
                        Improvement Act of 1991, no walkaway 
                        clause shall be enforceable in a 
                        qualified financial contract of an 
                        insured depository institution in 
                        default.
                          ``(ii) Walkaway clause defined.--For 
                        purposes of this subparagraph, the term 
                        `walkaway clause' means a provision in 
                        a qualified financial contract that, 
                        after calculation of a value of a 
                        party's position or an amount due to or 
                        from 1 of the parties in accordance 
                        with its terms upon termination, 
                        liquidation, or acceleration of the 
                        qualified financial contract, either 
                        does not create a payment obligation of 
                        a party or extinguishes a payment 
                        obligation of a party in whole or in 
                        part solely because of such party's 
                        status as a nondefaulting party.''.
  (b) Technical and Conforming Amendment.--Section 11(e)(12)(A) 
of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(12)(A)) 
is amended by inserting ``or the exercise of rights or powers 
by'' after ``the appointment of''.

SEC. 803. AMENDMENTS RELATING TO TRANSFERS OF QUALIFIED FINANCIAL 
                    CONTRACTS.

  (a) Transfers of Qualified Financial Contracts to Financial 
Institutions.--Section 11(e)(9) of the Federal Deposit 
Insurance Act (12 U.S.C. 1821(e)(9)) is amended to read as 
follows:
          ``(9) Transfer of qualified financial contracts.--
                  ``(A) In general.--In making any transfer of 
                assets or liabilities of a depository 
                institution in default which includes any 
                qualified financial contract, the conservator 
                or receiver for such depository institution 
                shall either--
                          ``(i) transfer to one financial 
                        institution, other than a financial 
                        institution for which a conservator, 
                        receiver, trustee in bankruptcy, or 
                        other legal custodian has been 
                        appointed or which is otherwise the 
                        subject of a bankruptcy or insolvency 
                        proceeding--
                                  ``(I) all qualified financial 
                                contracts between any person or 
                                any affiliate of such person 
                                and the depository institution 
                                in default;
                                  ``(II) all claims of such 
                                person or any affiliate of such 
                                person against such depository 
                                institution under any such 
                                contract (other than any claim 
                                which, under the terms of any 
                                such contract, is subordinated 
                                to the claims of general 
                                unsecured creditors of such 
                                institution);
                                  ``(III) all claims of such 
                                depository institution against 
                                such person or any affiliate of 
                                such person under any such 
                                contract; and
                                  ``(IV) all property securing 
                                or any other credit enhancement 
                                for any contract described in 
                                subclause (I) or any claim 
                                described in subclause (II) or 
                                (III) under any such contract; 
                                or
                          ``(ii) transfer none of the qualified 
                        financial contracts, claims, property 
                        or other credit enhancement referred to 
                        in clause (i) (with respect to such 
                        person and any affiliate of such 
                        person).
                  ``(B) Transfer to foreign bank, foreign 
                financial institution, or branch or agency of a 
                foreign bank or financial institution.--In 
                transferring any qualified financial contracts 
                and related claims and property under 
                subparagraph (A)(i), the conservator or 
                receiver for the depository institution shall 
                not make such transfer to a foreign bank, 
                financial institution organized under the laws 
                of a foreign country, or a branch or agency of 
                a foreign bank or financial institution unless, 
                under the law applicable to such bank, 
                financial institution, branch or agency, to the 
                qualified financial contracts, and to any 
                netting contract, any security agreement or 
                arrangement or other credit enhancement related 
                to one or more qualified financial contracts, 
                the contractual rights of the parties to such 
                qualified financial contracts, netting 
                contracts, security agreements or arrangements, 
                or other credit enhancements are enforceable 
                substantially to the same extent as permitted 
                under this section.
                  ``(C) Transfer of contracts subject to the 
                rules of a clearing organization.--In the event 
                that a conservator or receiver transfers any 
                qualified financial contract and related 
                claims, property, and credit enhancements 
                pursuant to subparagraph (A)(i) and such 
                contract is cleared by or subject to the rules 
                of a clearing organization, the clearing 
                organization shall not be required to accept 
                the transferee as a member by virtue of the 
                transfer.
                  ``(D) Definitions.--For purposes of this 
                paragraph, the term `financial institution' 
                means a broker or dealer, a depository 
                institution, a futures commission merchant, or 
                any other institution, as determined by the 
                Corporation by regulation to be a financial 
                institution, and the term `clearing 
                organization' has the same meaning as in 
                section 402 of the Federal Deposit Insurance 
                Corporation Improvement Act of 1991.''.
  (b) Notice to Qualified Financial Contract Counterparties.--
Section 11(e)(10)(A) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(e)(10)(A)) is amended in the material immediately 
following clause (ii) by striking ``the conservator'' and all 
that follows through the period and inserting the following: 
``the conservator or receiver shall notify any person who is a 
party to any such contract of such transfer by 5:00 p.m. 
(eastern time) on the business day following the date of the 
appointment of the receiver in the case of a receivership, or 
the business day following such transfer in the case of a 
conservatorship.''.
  (c) Rights Against Receiver and Treatment of Bridge Banks.--
Section 11(e)(10) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(e)(10)) is amended--
          (1) by redesignating subparagraph (B) as subparagraph 
        (D); and
          (2) by inserting after subparagraph (A) the following 
        new subparagraphs:
                  ``(B) Certain rights not enforceable.--
                          ``(i) Receivership.--A person who is 
                        a party to a qualified financial 
                        contract with an insured depository 
                        institution may not exercise any right 
                        that such person has to terminate, 
                        liquidate, or net such contract under 
                        paragraph (8)(A) of this subsection or 
                        section 403 or 404 of the Federal 
                        Deposit Insurance Corporation 
                        Improvement Act of 1991, solely by 
                        reason of or incidental to the 
                        appointment of a receiver for the 
                        depository institution (or the 
                        insolvency or financial condition of 
                        the depository institution for which 
                        the receiver has been appointed)--
                                  ``(I) until 5:00 p.m. 
                                (eastern time) on the business 
                                day following the date of the 
                                appointment of the receiver; or
                                  ``(II) after the person has 
                                received notice that the 
                                contract has been transferred 
                                pursuant to paragraph (9)(A).
                          ``(ii) Conservatorship.--A person who 
                        is a party to a qualified financial 
                        contract with an insured depository 
                        institution may not exercise any right 
                        that such person has to terminate, 
                        liquidate, or net such contract under 
                        paragraph (8)(E) of this subsection or 
                        section 403 or 404 of the Federal 
                        Deposit Insurance Corporation 
                        Improvement Act of 1991, solely by 
                        reason of or incidental to the 
                        appointment of a conservator for the 
                        depository institution (or the 
                        insolvency or financial condition of 
                        the depository institution for which 
                        the conservator has been appointed).
                          ``(iii) Notice.--For purposes of this 
                        paragraph, the Corporation as receiver 
                        or conservator of an insured depository 
                        institution shall be deemed to have 
                        notified a person who is a party to a 
                        qualified financial contract with such 
                        depository institution if the 
                        Corporation has taken steps reasonably 
                        calculated to provide notice to such 
                        person by the time specified in 
                        subparagraph (A).
                  ``(C) Treatment of bridge banks.--The 
                following institutions shall not be considered 
                to be a financial institution for which a 
                conservator, receiver, trustee in bankruptcy, 
                or other legal custodian has been appointed or 
                which is otherwise the subject of a bankruptcy 
                or insolvency proceeding for purposes of 
                paragraph (9):
                          ``(i) A bridge bank.
                          ``(ii) A depository institution 
                        organized by the Corporation, for which 
                        a conservator is appointed either--
                                  ``(I) immediately upon the 
                                organization of the 
                                institution; or
                                  ``(II) at the time of a 
                                purchase and assumption 
                                transaction between the 
                                depository institution and the 
                                Corporation as receiver for a 
                                depository institution in 
                                default.''.

SEC. 804. AMENDMENTS RELATING TO DISAFFIRMANCE OR REPUDIATION OF 
                    QUALIFIED FINANCIAL CONTRACTS.

  Section 11(e) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)) is amended--
          (1) by redesignating paragraphs (11) through (15) as 
        paragraphs (12) through (16), respectively;
          (2) by inserting after paragraph (10) the following 
        new paragraph:
          ``(11) Disaffirmance or repudiation of qualified 
        financial contracts.--In exercising the rights of 
        disaffirmance or repudiation of a conservator or 
        receiver with respect to any qualified financial 
        contract to which an insured depository institution is 
        a party, the conservator or receiver for such 
        institution shall either--
                  ``(A) disaffirm or repudiate all qualified 
                financial contracts between--
                          ``(i) any person or any affiliate of 
                        such person; and
                          ``(ii) the depository institution in 
                        default; or
                  ``(B) disaffirm or repudiate none of the 
                qualified financial contracts referred to in 
                subparagraph (A) (with respect to such person 
                or any affiliate of such person).''; and
          (3) by adding at the end the following new paragraph:
          ``(17) Savings clause.--The meanings of terms used in 
        this subsection are applicable for purposes of this 
        subsection only, and shall not be construed or applied 
        so as to challenge or affect the characterization, 
        definition, or treatment of any similar terms under any 
        other statute, regulation, or rule, including the 
        Gramm-Leach-Bliley Act, the Legal Certainty for Bank 
        Products Act of 2000, the securities laws (as that term 
        is defined in section 3(a)(47) of the Securities 
        Exchange Act of 1934), and the Commodity Exchange 
        Act.''.

SEC. 805. CLARIFYING AMENDMENT RELATING TO MASTER AGREEMENTS.

  Section 11(e)(8)(D)(vii) of the Federal Deposit Insurance Act 
(12 U.S.C. 1821(e)(8)(D)(vii)) is amended to read as follows:
                          ``(vii) Treatment of master agreement 
                        as one agreement.--Any master agreement 
                        for any contract or agreement described 
                        in any preceding clause of this 
                        subparagraph (or any master agreement 
                        for such master agreement or 
                        agreements), together with all 
                        supplements to such master agreement, 
                        shall be treated as a single agreement 
                        and a single qualified financial 
                        contract. If a master agreement 
                        contains provisions relating to 
                        agreements or transactions that are not 
                        themselves qualified financial 
                        contracts, the master agreement shall 
                        be deemed to be a qualified financial 
                        contract only with respect to those 
                        transactions that are themselves 
                        qualified financial contracts.''.

SEC. 806. FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF 
                    1991.

  (a) Definitions.--Section 402 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991 (12 U.S.C. 4402) 
is amended--
          (1) in paragraph (2)--
                  (A) in subparagraph (A)(ii), by inserting 
                before the semicolon ``, or is exempt from such 
                registration by order of the Securities and 
                Exchange Commission''; and
                  (B) in subparagraph (B), by inserting before 
                the period ``, that has been granted an 
                exemption under section 4(c)(1) of the 
                Commodity Exchange Act, or that is a 
                multilateral clearing organization (as defined 
                in section 408 of this Act)'';
          (2) in paragraph (6)--
                  (A) by redesignating subparagraphs (B) 
                through (D) as subparagraphs (C) through (E), 
                respectively;
                  (B) by inserting after subparagraph (A) the 
                following new subparagraph:
                  ``(B) an uninsured national bank or an 
                uninsured State bank that is a member of the 
                Federal Reserve System, if the national bank or 
                State member bank is not eligible to make 
                application to become an insured bank under 
                section 5 of the Federal Deposit Insurance 
                Act;''; and
                  (C) by amending subparagraph (C), so 
                redesignated, to read as follows:
                  ``(C) a branch or agency of a foreign bank, a 
                foreign bank and any branch or agency of the 
                foreign bank, or the foreign bank that 
                established the branch or agency, as those 
                terms are defined in section 1(b) of the 
                International Banking Act of 1978;'';
          (3) in paragraph (11), by inserting before the period 
        ``and any other clearing organization with which such 
        clearing organization has a netting contract'';
          (4) by amending paragraph (14)(A)(i) to read as 
        follows:
                          ``(i) means a contract or agreement 
                        between 2 or more financial 
                        institutions, clearing organizations, 
                        or members that provides for netting 
                        present or future payment obligations 
                        or payment entitlements (including 
                        liquidation or close out values 
                        relating to such obligations or 
                        entitlements) among the parties to the 
                        agreement; and''; and
          (5) by adding at the end the following new paragraph:
          ``(15) Payment.--The term `payment' means a payment 
        of United States dollars, another currency, or a 
        composite currency, and a noncash delivery, including a 
        payment or delivery to liquidate an unmatured 
        obligation.''.
  (b) Enforceability of Bilateral Netting Contracts.--Section 
403 of the Federal Deposit Insurance Corporation Improvement 
Act of 1991 (12 U.S.C. 4403) is amended--
          (1) by striking subsection (a) and inserting the 
        following:
  ``(a) General Rule.--Notwithstanding any other provision of 
State or Federal law (other than paragraphs (8)(E), (8)(F), and 
(10)(B) of section 11(e) of the Federal Deposit Insurance Act 
or any order authorized under section 5(b)(2) of the Securities 
Investor Protection Act of 1970), the covered contractual 
payment obligations and the covered contractual payment 
entitlements between any 2 financial institutions shall be 
netted in accordance with, and subject to the conditions of, 
the terms of any applicable netting contract (except as 
provided in section 561(b)(2) of title 11, United States 
Code).''; and
          (2) by adding at the end the following new 
        subsection:
  ``(f) Enforceability of Security Agreements.--The provisions 
of any security agreement or arrangement or other credit 
enhancement related to one or more netting contracts between 
any 2 financial institutions shall be enforceable in accordance 
with their terms (except as provided in section 561(b)(2) of 
title 11, United States Code), and shall not be stayed, 
avoided, or otherwise limited by any State or Federal law 
(other than paragraphs (8)(E), (8)(F), and (10)(B) of section 
11(e) of the Federal Deposit Insurance Act and section 5(b)(2) 
of the Securities Investor Protection Act of 1970).''.
  (c) Enforceability of Clearing Organization Netting 
Contracts.--Section 404 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 (12 U.S.C. 4404) is 
amended--
          (1) by striking subsection (a) and inserting the 
        following:
  ``(a) General Rule.--Notwithstanding any other provision of 
State or Federal law (other than paragraphs (8)(E), (8)(F), and 
(10)(B) of section 11(e) of the Federal Deposit Insurance Act 
and any order authorized under section 5(b)(2) of the 
Securities Investor Protection Act of 1970), the covered 
contractual payment obligations and the covered contractual 
payment entitlements of a member of a clearing organization to 
and from all other members of a clearing organization shall be 
netted in accordance with and subject to the conditions of any 
applicable netting contract (except as provided in section 
561(b)(2) of title 11, United States Code).''; and
          (2) by adding at the end the following new 
        subsection:
  ``(h) Enforceability of Security Agreements.--The provisions 
of any security agreement or arrangement or other credit 
enhancement related to one or more netting contracts between 
any 2 members of a clearing organization shall be enforceable 
in accordance with their terms (except as provided in section 
561(b)(2) of title 11, United States Code), and shall not be 
stayed, avoided, or otherwise limited by any State or Federal 
law (other than paragraphs (8)(E), (8)(F), and (10)(B) of 
section 11(e) of the Federal Deposit Insurance Act and section 
5(b)(2) of the Securities Investor Protection Act of 1970).''.
  (d) Enforceability of Contracts With Uninsured National 
Banks, Uninsured Federal Branches and Agencies, Certain 
Uninsured State Member Banks, and Edge Act Corporations.--The 
Federal Deposit Insurance Corporation Improvement Act of 1991 
(12 U.S.C. 4401 et seq.) is amended--
          (1) by redesignating section 407 as section 407A; and
          (2) by inserting after section 406 the following new 
        section:

``SEC. 407. TREATMENT OF CONTRACTS WITH UNINSURED NATIONAL BANKS, 
                    UNINSURED FEDERAL BRANCHES AND AGENCIES, CERTAIN 
                    UNINSURED STATE MEMBER BANKS, AND EDGE ACT 
                    CORPORATIONS.

  ``(a) In General.--Notwithstanding any other provision of 
law, paragraphs (8), (9), (10), and (11) of section 11(e) of 
the Federal Deposit Insurance Act shall apply to an uninsured 
national bank or uninsured Federal branch or Federal agency, a 
corporation chartered under section 25A of the Federal Reserve 
Act, or an uninsured State member bank which operates, or 
operates as, a multilateral clearing organization pursuant to 
section 409 of this Act, except that for such purpose--
          ``(1) any reference to the `Corporation as receiver' 
        or `the receiver or the Corporation' shall refer to the 
        receiver appointed by the Comptroller of the Currency 
        in the case of an uninsured national bank or uninsured 
        Federal branch or agency, or to the receiver appointed 
        by the Board of Governors of the Federal Reserve System 
        in the case of a corporation chartered under section 
        25A of the Federal Reserve Act or an uninsured State 
        member bank;
          ``(2) any reference to the `Corporation' (other than 
        in section 11(e)(8)(D) of such Act), the `Corporation, 
        whether acting as such or as conservator or receiver', 
        a `receiver', or a `conservator' shall refer to the 
        receiver or conservator appointed by the Comptroller of 
        the Currency in the case of an uninsured national bank 
        or uninsured Federal branch or agency, or to the 
        receiver or conservator appointed by the Board of 
        Governors of the Federal Reserve System in the case of 
        a corporation chartered under section 25A of the 
        Federal Reserve Act or an uninsured State member bank; 
        and
          ``(3) any reference to an `insured depository 
        institution' or `depository institution' shall refer to 
        an uninsured national bank, an uninsured Federal branch 
        or Federal agency, a corporation chartered under 
        section 25A of the Federal Reserve Act, or an uninsured 
        State member bank which operates, or operates as, a 
        multilateral clearing organization pursuant to section 
        409 of this Act.
  ``(b) Liability.--The liability of a receiver or conservator 
of an uninsured national bank, uninsured Federal branch or 
agency, a corporation chartered under section 25A of the 
Federal Reserve Act, or an uninsured State member bank which 
operates, or operates as, a multilateral clearing organization 
pursuant to section 409 of this Act, shall be determined in the 
same manner and subject to the same limitations that apply to 
receivers and conservators of insured depository institutions 
under section 11(e) of the Federal Deposit Insurance Act.
  ``(c) Regulatory Authority.--
          ``(1) In general.--The Comptroller of the Currency in 
        the case of an uninsured national bank or uninsured 
        Federal branch or agency and the Board of Governors of 
        the Federal Reserve System in the case of a corporation 
        chartered under section 25A of the Federal Reserve Act, 
        or an uninsured State member bank that operates, or 
        operates as, a multilateral clearing organization 
        pursuant to section 409 of this Act, in consultation 
        with the Federal Deposit Insurance Corporation, may 
        each promulgate regulations solely to implement this 
        section.
          ``(2) Specific requirement.--In promulgating 
        regulations, limited solely to implementing paragraphs 
        (8), (9), (10), and (11) of section 11(e) of the 
        Federal Deposit Insurance Act, the Comptroller of the 
        Currency and the Board of Governors of the Federal 
        Reserve System each shall ensure that the regulations 
        generally are consistent with the regulations and 
        policies of the Federal Deposit Insurance Corporation 
        adopted pursuant to the Federal Deposit Insurance Act.
  ``(d) Definitions.--For purposes of this section, the terms 
`Federal branch', `Federal agency', and `foreign bank' have the 
same meanings as in section 1(b) of the International Banking 
Act of 1978.''.

SEC. 807. BANKRUPTCY LAW AMENDMENTS.

  (a) Definitions of Forward Contract, Repurchase Agreement, 
Securities Clearing Agency, Swap Agreement, Commodity Contract, 
and Securities Contract.--Title 11, United States Code, is 
amended--
          (1) in section 101--
                  (A) in paragraph (25)--
                          (i) by striking ``means a contract'' 
                        and inserting ``means--
                  ``(A) a contract'';
                          (ii) by striking ``, or any 
                        combination thereof or option 
                        thereon;'' and inserting ``, or any 
                        other similar agreement;''; and
                          (iii) by adding at the end the 
                        following:
                  ``(B) any combination of agreements or 
                transactions referred to in subparagraphs (A) 
                and (C);
                  ``(C) any option to enter into an agreement 
                or transaction referred to in subparagraph (A) 
                or (B);
                  ``(D) a master agreement that provides for an 
                agreement or transaction referred to in 
                subparagraph (A), (B), or (C), together with 
                all supplements to any such master agreement, 
                without regard to whether such master agreement 
                provides for an agreement or transaction that 
                is not a forward contract under this paragraph, 
                except that such master agreement shall be 
                considered to be a forward contract under this 
                paragraph only with respect to each agreement 
                or transaction under such master agreement that 
                is referred to in subparagraph (A), (B), or 
                (C); or
                  ``(E) any security agreement or arrangement, 
                or other credit enhancement related to any 
                agreement or transaction referred to in 
                subparagraph (A), (B), (C), or (D), including 
                any guarantee or reimbursement obligation by or 
                to a forward contract merchant or financial 
                participant in connection with any agreement or 
                transaction referred to in any such 
                subparagraph, but not to exceed the damages in 
                connection with any such agreement or 
                transaction, measured in accordance with 
                section 562;'';
                  (B) in paragraph (46), by striking ``on any 
                day during the period beginning 90 days before 
                the date of'' and inserting ``at any time 
                before'';
                  (C) by amending paragraph (47) to read as 
                follows:
          ``(47) `repurchase agreement' (which definition also 
        applies to a reverse repurchase agreement)--
                  ``(A) means--
                          ``(i) an agreement, including related 
                        terms, which provides for the transfer 
                        of one or more certificates of deposit, 
                        mortgage related securities (as defined 
                        in section 3 of the Securities Exchange 
                        Act of 1934), mortgage loans, interests 
                        in mortgage related securities or 
                        mortgage loans, eligible bankers' 
                        acceptances, qualified foreign 
                        government securities (defined as a 
                        security that is a direct obligation 
                        of, or that is fully guaranteed by, the 
                        central government of a member of the 
                        Organization for Economic Cooperation 
                        and Development), or securities that 
                        are direct obligations of, or that are 
                        fully guaranteed 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, 
                        securities, mortgage loans, or 
                        interests, with a simultaneous 
                        agreement by such transferee to 
                        transfer to the transferor thereof 
                        certificates of deposit, eligible 
                        bankers' acceptance, securities, 
                        mortgage loans, or interests of the 
                        kind described in this clause, at a 
                        date certain not later than 1 year 
                        after such transfer or on demand, 
                        against the transfer of funds;
                          ``(ii) any combination of agreements 
                        or transactions referred to in clauses 
                        (i) and (iii);
                          ``(iii) an option to enter into an 
                        agreement or transaction referred to in 
                        clause (i) or (ii);
                          ``(iv) a master agreement that 
                        provides for an agreement or 
                        transaction referred to in clause (i), 
                        (ii), or (iii), together with all 
                        supplements to any such master 
                        agreement, without regard to whether 
                        such master agreement provides for an 
                        agreement or transaction that is not a 
                        repurchase agreement under this 
                        paragraph, except that such master 
                        agreement shall be considered to be a 
                        repurchase agreement under this 
                        paragraph only with respect to each 
                        agreement or transaction under the 
                        master agreement that is referred to in 
                        clause (i), (ii), or (iii); or
                          ``(v) any security agreement or 
                        arrangement or other credit enhancement 
                        related to any agreement or transaction 
                        referred to in clause (i), (ii), (iii), 
                        or (iv), including any guarantee or 
                        reimbursement obligation by or to a 
                        repo participant or financial 
                        participant in connection with any 
                        agreement or transaction referred to in 
                        any such clause, but not to exceed the 
                        damages in connection with any such 
                        agreement or transaction, measured in 
                        accordance with section 562 of this 
                        title; and
                  ``(B) does not include a repurchase 
                obligation under a participation in a 
                commercial mortgage loan;'';
                  (D) in paragraph (48), by inserting ``, or 
                exempt from such registration under such 
                section pursuant to an order of the Securities 
                and Exchange Commission,'' after ``1934''; and
                  (E) by amending paragraph (53B) to read as 
                follows:
          ``(53B) `swap agreement'--
                  ``(A) means--
                          ``(i) any agreement, including the 
                        terms and conditions incorporated by 
                        reference in such agreement, which is--
                                  ``(I) an interest rate swap, 
                                option, future, or forward 
                                agreement, including a rate 
                                floor, rate cap, rate collar, 
                                cross-currency rate swap, and 
                                basis swap;
                                  ``(II) a spot, same day-
                                tomorrow, tomorrow-next, 
                                forward, or other foreign 
                                exchange or precious metals 
                                agreement;
                                  ``(III) a currency swap, 
                                option, future, or forward 
                                agreement;
                                  ``(IV) an equity index or 
                                equity swap, option, future, or 
                                forward agreement;
                                  ``(V) a debt index or debt 
                                swap, option, future, or 
                                forward agreement;
                                  ``(VI) a total return, credit 
                                spread or credit swap, option, 
                                future, or forward agreement;
                                  ``(VII) a commodity index or 
                                a commodity swap, option, 
                                future, or forward agreement; 
                                or
                                  ``(VIII) a weather swap, 
                                weather derivative, or weather 
                                option;
                          ``(ii) any agreement or transaction 
                        that is similar to any other agreement 
                        or transaction referred to in this 
                        paragraph and that--
                                  ``(I) is of a type that has 
                                been, is presently, or in the 
                                future becomes, the subject of 
                                recurrent dealings in the swap 
                                markets (including terms and 
                                conditions incorporated by 
                                reference therein); and
                                  ``(II) is a forward, swap, 
                                future, or option on one or 
                                more rates, currencies, 
                                commodities, equity securities, 
                                or other equity instruments, 
                                debt securities or other debt 
                                instruments, quantitative 
                                measures associated with an 
                                occurrence, extent of an 
                                occurrence, or contingency 
                                associated with a financial, 
                                commercial, or economic 
                                consequence, or economic or 
                                financial indices or measures 
                                of economic or financial risk 
                                or value;
                          ``(iii) any combination of agreements 
                        or transactions referred to in this 
                        subparagraph;
                          ``(iv) any option to enter into an 
                        agreement or transaction referred to in 
                        this subparagraph;
                          ``(v) a master agreement that 
                        provides for an agreement or 
                        transaction referred to in clause (i), 
                        (ii), (iii), or (iv), together with all 
                        supplements to any such master 
                        agreement, and without regard to 
                        whether the master agreement contains 
                        an agreement or transaction that is not 
                        a swap agreement under this paragraph, 
                        except that the master agreement shall 
                        be considered to be a swap agreement 
                        under this paragraph only with respect 
                        to each agreement or transaction under 
                        the master agreement that is referred 
                        to in clause (i), (ii), (iii), or (iv); 
                        or
                          ``(vi) any security agreement or 
                        arrangement or other credit enhancement 
                        related to any agreements or 
                        transactions referred to in clause (i) 
                        through (v), including any guarantee or 
                        reimbursement obligation by or to a 
                        swap participant or financial 
                        participant in connection with any 
                        agreement or transaction referred to in 
                        any such clause, but not to exceed the 
                        damages in connection with any such 
                        agreement or transaction, measured in 
                        accordance with section 562; and
                  ``(B) is applicable for purposes of this 
                title only, and shall not be construed or 
                applied so as to challenge or affect the 
                characterization, definition, or treatment of 
                any swap agreement under any other statute, 
                regulation, or rule, including the Securities 
                Act of 1933, the Securities Exchange Act of 
                1934, the Public Utility Holding Company Act of 
                1935, the Trust Indenture Act of 1939, the 
                Investment Company Act of 1940, the Investment 
                Advisers Act of 1940, the Securities Investor 
                Protection Act of 1970, the Commodity Exchange 
                Act, the Gramm-Leach-Bliley Act, and the Legal 
                Certainty for Bank Products Act of 2000;'';
          (2) in section 741(7), by striking paragraph (7) and 
        inserting the following:
          ``(7) `securities contract'--
                  ``(A) means--
                          ``(i) a contract for the purchase, 
                        sale, or loan of a security, a 
                        certificate of deposit, a mortgage loan 
                        or any interest in a mortgage loan, a 
                        group or index of securities, 
                        certificates of deposit, or mortgage 
                        loans or interests therein (including 
                        an interest therein or based on the 
                        value thereof), or option on any of the 
                        foregoing, including an option to 
                        purchase or sell any such security, 
                        certificate of deposit, mortgage loan, 
                        interest, group or index, or option, 
                        and including any repurchase or reverse 
                        repurchase transaction on any such 
                        security, certificate of deposit, 
                        mortgage loan, interest, group or 
                        index, or option;
                          ``(ii) any option entered into on a 
                        national securities exchange relating 
                        to foreign currencies;
                          ``(iii) the guarantee by or to any 
                        securities clearing agency of a 
                        settlement of cash, securities, 
                        certificates of deposit, mortgage loans 
                        or interests therein, group or index of 
                        securities, or mortgage loans or 
                        interests therein (including any 
                        interest therein or based on the value 
                        thereof), or option on any of the 
                        foregoing, including an option to 
                        purchase or sell any such security, 
                        certificate of deposit, mortgage loan, 
                        interest, group or index, or option;
                          ``(iv) any margin loan;
                          ``(v) any other agreement or 
                        transaction that is similar to an 
                        agreement or transaction referred to in 
                        this subparagraph;
                          ``(vi) any combination of the 
                        agreements or transactions referred to 
                        in this subparagraph;
                          ``(vii) any option to enter into any 
                        agreement or transaction referred to in 
                        this subparagraph;
                          ``(viii) a master agreement that 
                        provides for an agreement or 
                        transaction referred to in clause (i), 
                        (ii), (iii), (iv), (v), (vi), or (vii), 
                        together with all supplements to any 
                        such master agreement, without regard 
                        to whether the master agreement 
                        provides for an agreement or 
                        transaction that is not a securities 
                        contract under this subparagraph, 
                        except that such master agreement shall 
                        be considered to be a securities 
                        contract under this subparagraph only 
                        with respect to each agreement or 
                        transaction under such master agreement 
                        that is referred to in clause (i), 
                        (ii), (iii), (iv), (v), (vi), or (vii); 
                        or
                          ``(ix) any security agreement or 
                        arrangement or other credit enhancement 
                        related to any agreement or transaction 
                        referred to in this subparagraph, 
                        including any guarantee or 
                        reimbursement obligation by or to a 
                        stockbroker, securities clearing 
                        agency, financial institution, or 
                        financial participant in connection 
                        with any agreement or transaction 
                        referred to in this subparagraph, but 
                        not to exceed the damages in connection 
                        with any such agreement or transaction, 
                        measured in accordance with section 
                        562; and
                  ``(B) does not include any purchase, sale, or 
                repurchase obligation under a participation in 
                a commercial mortgage loan;''; and
          (3) in section 761(4)--
                  (A) by striking ``or'' at the end of 
                subparagraph (D); and
                  (B) by adding at the end the following:
                  ``(F) any other agreement or transaction that 
                is similar to an agreement or transaction 
                referred to in this paragraph;
                  ``(G) any combination of the agreements or 
                transactions referred to in this paragraph;
                  ``(H) any option to enter into an agreement 
                or transaction referred to in this paragraph;
                  ``(I) a master agreement that provides for an 
                agreement or transaction referred to in 
                subparagraph (A), (B), (C), (D), (E), (F), (G), 
                or (H), together with all supplements to such 
                master agreement, without regard to whether the 
                master agreement provides for an agreement or 
                transaction that is not a commodity contract 
                under this paragraph, except that the master 
                agreement shall be considered to be a commodity 
                contract under this paragraph only with respect 
                to each agreement or transaction under the 
                master agreement that is referred to in 
                subparagraph (A), (B), (C), (D), (E), (F), (G), 
                or (H); or
                  ``(J) any security agreement or arrangement 
                or other credit enhancement related to any 
                agreement or transaction referred to in this 
                paragraph, including any guarantee or 
                reimbursement obligation by or to a commodity 
                broker or financial participant in connection 
                with any agreement or transaction referred to 
                in this paragraph, but not to exceed the 
                damages in connection with any such agreement 
                or transaction, measured in accordance with 
                section 562;''.
  (b) Definitions of Financial Institution, Financial 
Participant, and Forward Contract Merchant.--Section 101 of 
title 11, United States Code, is amended--
          (1) by striking paragraph (22) and inserting the 
        following:
          ``(22) `financial institution' means--
                  ``(A) a Federal reserve bank, or an entity 
                (domestic or foreign) that is a commercial or 
                savings bank, industrial savings bank, savings 
                and loan association, trust company, or 
                receiver or conservator for such entity and, 
                when any such Federal reserve bank, receiver, 
                conservator or entity is acting as agent or 
                custodian for a customer in connection with a 
                securities contract (as defined in section 741) 
                such customer; or
                  ``(B) in connection with a securities 
                contract (as defined in section 741) an 
                investment company registered under the 
                Investment Company Act of 1940;'';
          (2) by inserting after paragraph (22) the following:
          ``(22A) `financial participant' means--
                  ``(A) an entity that, at the time it enters 
                into a securities contract, commodity contract, 
                swap agreement, repurchase agreement, or 
                forward contract, or at the time of the date of 
                the filing of the petition, has one or more 
                agreements or transactions described in 
                paragraph (1), (2), (3), (4), (5), or (6) of 
                section 561(a) with the debtor or any other 
                entity (other than an affiliate) of a total 
                gross dollar value of not less than 
                $1,000,000,000 in notional or actual principal 
                amount outstanding on any day during the 
                previous 15-month period, or has gross mark-to-
                market positions of not less than $100,000,000 
                (aggregated across counterparties) in one or 
                more such agreements or transactions with the 
                debtor or any other entity (other than an 
                affiliate) on any day during the previous 15-
                month period; or
                  ``(B) a clearing organization (as defined in 
                section 402 of the Federal Deposit Insurance 
                Corporation Improvement Act of 1991);''; and
          (3) by striking paragraph (26) and inserting the 
        following:
          ``(26) `forward contract merchant' means a Federal 
        reserve bank, or an entity the business of which 
        consists in whole or in part of entering into forward 
        contracts as or with merchants in a commodity (as 
        defined in section 761) 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;''.
  (c) Definition of Master Netting Agreement and Master Netting 
Agreement Participant.--Section 101 of title 11, United States 
Code, is amended by inserting after paragraph (38) the 
following new paragraphs:
          ``(38A) `master netting agreement'--
                  ``(A) means an agreement providing for the 
                exercise of rights, including rights of 
                netting, setoff, liquidation, termination, 
                acceleration, or close out, under or in 
                connection with one or more contracts that are 
                described in any one or more of paragraphs (1) 
                through (5) of section 561(a), or any security 
                agreement or arrangement or other credit 
                enhancement related to one or more of the 
                foregoing, including any guarantee or 
                reimbursement obligation related to 1 or more 
                of the foregoing; and
                  ``(B) if the agreement contains provisions 
                relating to agreements or transactions that are 
                not contracts described in paragraphs (1) 
                through (5) of section 561(a), shall be deemed 
                to be a master netting agreement only with 
                respect to those agreements or transactions 
                that are described in any one or more of 
                paragraphs (1) through (5) of section 561(a);
          ``(38B) `master netting agreement participant' means 
        an entity that, at any time before the date of the 
        filing of the petition, is a party to an outstanding 
        master netting agreement with the debtor;''.
  (d) Swap Agreements, Securities Contracts, Commodity 
Contracts, Forward Contracts, Repurchase Agreements, and Master 
Netting Agreements Under the Automatic-Stay.--
          (1) In general.--Section 362(b) of title 11, United 
        States Code, as amended by sections 224, 303, 311, 401, 
        and 718, is amended--
                  (A) in paragraph (6), by inserting ``, 
                pledged to, under the control of,'' after 
                ``held by'';
                  (B) in paragraph (7), by inserting ``, 
                pledged to, under the control of,'' after 
                ``held by'';
                  (C) by striking paragraph (17) and inserting 
                the following:
          ``(17) under subsection (a), of the setoff by a swap 
        participant or financial participant of a mutual debt 
        and claim under or in connection with one or more swap 
        agreements that constitutes the setoff of a claim 
        against the debtor for any payment or other transfer of 
        property due from the debtor under or in connection 
        with any swap agreement against any payment due to the 
        debtor from the swap participant or financial 
        participant under or in connection with any swap 
        agreement or against cash, securities, or other 
        property held by, pledged to, under the control of, or 
        due from such swap participant or financial participant 
        to margin, guarantee, secure, or settle any swap 
        agreement;''; and
                  (D) by inserting after paragraph (26) the 
                following:
          ``(27) under subsection (a), of the setoff by a 
        master netting agreement participant of a mutual debt 
        and claim under or in connection with one or more 
        master netting agreements or any contract or agreement 
        subject to such agreements that constitutes the setoff 
        of a claim against the debtor for any payment or other 
        transfer of property due from the debtor under or in 
        connection with such agreements or any contract or 
        agreement subject to such agreements against any 
        payment due to the debtor from such master netting 
        agreement participant under or in connection with such 
        agreements or any contract or agreement subject to such 
        agreements or against cash, securities, or other 
        property held by, pledged to, under the control of, or 
        due from such master netting agreement participant to 
        margin, guarantee, secure, or settle such agreements or 
        any contract or agreement subject to such agreements, 
        to the extent that such participant is eligible to 
        exercise such offset rights under paragraph (6), (7), 
        or (17) for each individual contract covered by the 
        master netting agreement in issue; and''.
          (2) Limitation.--Section 362 of title 11, United 
        States Code, as amended by sections 106, 305, 311, and 
        441, is amended by adding at the end the following:
  ``(o) The exercise of rights not subject to the stay arising 
under subsection (a) pursuant to paragraph (6), (7), (17), or 
(27) of subsection (b) shall not be stayed by any order of a 
court or administrative agency in any proceeding under this 
title.''.
  (e) Limitation of Avoidance Powers Under Master Netting 
Agreement.--Section 546 of title 11, United States Code, is 
amended--
          (1) in subsection (g) (as added by section 103 of 
        Public Law 101-311)--
                  (A) by striking ``under a swap agreement'';
                  (B) by striking ``in connection with a swap 
                agreement'' and inserting ``under or in 
                connection with any swap agreement''; and
                  (C) by inserting ``or financial participant'' 
                after ``swap participant''; and
          (2) by adding at the end the following:
  ``(j) Notwithstanding sections 544, 545, 547, 548(a)(1)(B), 
and 548(b) the trustee may not avoid a transfer made by or to a 
master netting agreement participant under or in connection 
with any master netting agreement or any individual contract 
covered thereby that is made before the commencement of the 
case, except under section 548(a)(1)(A) and except to the 
extent that the trustee could otherwise avoid such a transfer 
made under an individual contract covered by such master 
netting agreement.''.
  (f) Fraudulent Transfers of Master Netting Agreements.--
Section 548(d)(2) of title 11, United States Code, is amended--
          (1) in subparagraph (C), by striking ``and'' at the 
        end;
          (2) in subparagraph (D), by striking the period and 
        inserting ``; and''; and
          (3) by adding at the end the following new 
        subparagraph:
          ``(E) a master netting agreement participant that 
        receives a transfer in connection with a master netting 
        agreement or any individual contract covered thereby 
        takes for value to the extent of such transfer, except 
        that, with respect to a transfer under any individual 
        contract covered thereby, to the extent that such 
        master netting agreement participant otherwise did not 
        take (or is otherwise not deemed to have taken) such 
        transfer for value.''.
  (g) Termination or Acceleration of Securities Contracts.--
Section 555 of title 11, United States Code, is amended--
          (1) by amending the section heading to read as 
        follows:

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

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

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

          (2) in the first sentence, by striking 
        ``liquidation'' and inserting ``liquidation, 
        termination, or acceleration''; and
          (3) in the second sentence, by striking ``As used'' 
        and all that follows through ``right,'' and inserting 
        ``As used in this section, the term `contractual right' 
        includes a right set forth in a rule or bylaw of a 
        derivatives clearing organization (as defined in the 
        Commodity Exchange Act), a multilateral clearing 
        organization (as defined in the Federal Deposit 
        Insurance Corporation Improvement Act of 1991), a 
        national securities exchange, a national securities 
        association, a securities clearing agency, a contract 
        market designated under the Commodity Exchange Act, a 
        derivatives transaction execution facility registered 
        under the Commodity Exchange Act, or a board of trade 
        (as defined in the Commodity Exchange Act) or in a 
        resolution of the governing board thereof and a 
        right,''.
  (i) Termination or Acceleration of Repurchase Agreements.--
Section 559 of title 11, United States Code, is amended--
          (1) by amending the section heading to read as 
        follows:

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

          (2) in the first sentence, by striking 
        ``liquidation'' and inserting ``liquidation, 
        termination, or acceleration''; and
          (3) in the third sentence, by striking ``As used'' 
        and all that follows through ``right,'' and inserting 
        ``As used in this section, the term `contractual right' 
        includes a right set forth in a rule or bylaw of a 
        derivatives clearing organization (as defined in the 
        Commodity Exchange Act), a multilateral clearing 
        organization (as defined in the Federal Deposit 
        Insurance Corporation Improvement Act of 1991), a 
        national securities exchange, a national securities 
        association, a securities clearing agency, a contract 
        market designated under the Commodity Exchange Act, a 
        derivatives transaction execution facility registered 
        under the Commodity Exchange Act, or a board of trade 
        (as defined in the Commodity Exchange Act) or in a 
        resolution of the governing board thereof and a 
        right,''.
  (j) Liquidation, Termination, or Acceleration of Swap 
Agreements.--Section 560 of title 11, United States Code, is 
amended--
          (1) by amending the section heading to read as 
        follows:

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

          (2) in the first sentence, by striking ``termination 
        of a swap agreement'' and inserting ``liquidation, 
        termination, or acceleration of one or more swap 
        agreements'';
          (3) by striking ``in connection with any swap 
        agreement'' and inserting ``in connection with the 
        termination, liquidation, or acceleration of one or 
        more swap agreements''; and
          (4) in the second sentence, by striking ``As used'' 
        and all that follows through ``right,'' and inserting 
        ``As used in this section, the term `contractual right' 
        includes a right set forth in a rule or bylaw of a 
        derivatives clearing organization (as defined in the 
        Commodity Exchange Act), a multilateral clearing 
        organization (as defined in the Federal Deposit 
        Insurance Corporation Improvement Act of 1991), a 
        national securities exchange, a national securities 
        association, a securities clearing agency, a contract 
        market designated under the Commodity Exchange Act, a 
        derivatives transaction execution facility registered 
        under the Commodity Exchange Act, or a board of trade 
        (as defined in the Commodity Exchange Act) or in a 
        resolution of the governing board thereof and a 
        right,''.
  (k) Liquidation, Termination, Acceleration, or Offset Under a 
Master Netting Agreement and Across Contracts.--
          (1) In general.--Title 11, United States Code, is 
        amended by inserting after section 560 the following:

``Sec. 561. Contractual right to terminate, liquidate, accelerate, or 
                    offset under a master netting agreement and across 
                    contracts; proceedings under chapter 15

  ``(a) Subject to subsection (b), the exercise of any 
contractual right, because of a condition of the kind specified 
in section 365(e)(1), to cause the termination, liquidation, or 
acceleration of or to offset or net termination values, payment 
amounts, or other transfer obligations arising under or in 
connection with one or more (or the termination, liquidation, 
or acceleration of one or more)--
          ``(1) securities contracts, as defined in section 
        741(7);
          ``(2) commodity contracts, as defined in section 
        761(4);
          ``(3) forward contracts;
          ``(4) repurchase agreements;
          ``(5) swap agreements; or
          ``(6) master netting agreements,
shall not be stayed, avoided, or otherwise limited by operation 
of any provision of this title or by any order of a court or 
administrative agency in any proceeding under this title.
  ``(b)(1) A party may exercise a contractual right described 
in subsection (a) to terminate, liquidate, or accelerate only 
to the extent that such party could exercise such a right under 
section 555, 556, 559, or 560 for each individual contract 
covered by the master netting agreement in issue.
  ``(2) If a debtor is a commodity broker subject to subchapter 
IV of chapter 7--
          ``(A) a party may not net or offset an obligation to 
        the debtor arising under, or in connection with, a 
        commodity contract traded on or subject to the rules of 
        a contract market designated under the Commodity 
        Exchange Act or a derivatives transaction execution 
        facility registered under the Commodity Exchange Act 
        against any claim arising under, or in connection with, 
        other instruments, contracts, or agreements listed in 
        subsection (a) except to the extent that the party has 
        positive net equity in the commodity accounts at the 
        debtor, as calculated under such subchapter; and
          ``(B) another commodity broker may not net or offset 
        an obligation to the debtor arising under, or in 
        connection with, a commodity contract entered into or 
        held on behalf of a customer of the debtor and traded 
        on or subject to the rules of a contract market 
        designated under the Commodity Exchange Act or a 
        derivatives transaction execution facility registered 
        under the Commodity Exchange Act against any claim 
        arising under, or in connection with, other 
        instruments, contracts, or agreements listed in 
        subsection (a).
  ``(3) No provision of subparagraph (A) or (B) of paragraph 
(2) shall prohibit the offset of claims and obligations that 
arise under--
          ``(A) a cross-margining agreement or similar 
        arrangement that has been approved by the Commodity 
        Futures Trading Commission or submitted to the 
        Commodity Futures Trading Commission under paragraph 
        (1) or (2) of section 5c(c) of the Commodity Exchange 
        Act and has not been abrogated or rendered ineffective 
        by the Commodity Futures Trading Commission; or
          ``(B) any other netting agreement between a clearing 
        organization (as defined in section 761) and another 
        entity that has been approved by the Commodity Futures 
        Trading Commission.
  ``(c) As used in this section, the term `contractual right' 
includes a right set forth in a rule or bylaw of a derivatives 
clearing organization (as defined in the Commodity Exchange 
Act), a multilateral clearing organization (as defined in the 
Federal Deposit Insurance Corporation Improvement Act of 1991), 
a national securities exchange, a national securities 
association, a securities clearing agency, a contract market 
designated under the Commodity Exchange Act, a derivatives 
transaction execution facility registered under the Commodity 
Exchange Act, or a board of trade (as defined in the Commodity 
Exchange Act) or in a resolution of the governing board 
thereof, and a right, whether or not evidenced in writing, 
arising under common law, under law merchant, or by reason of 
normal business practice.
  ``(d) Any provisions of this title relating to securities 
contracts, commodity contracts, forward contracts, repurchase 
agreements, swap agreements, or master netting agreements shall 
apply in a case under chapter 15, so that enforcement of 
contractual provisions of such contracts and agreements in 
accordance with their terms will not be stayed or otherwise 
limited by operation of any provision of this title or by order 
of a court in any case under this title, and to limit avoidance 
powers to the same extent as in a proceeding under chapter 7 or 
11 of this title (such enforcement not to be limited based on 
the presence or absence of assets of the debtor in the United 
States).''.
          (2) Conforming amendment.--The table of sections for 
        chapter 5 of title 11, United States Code, is amended 
        by inserting after the item relating to section 560 the 
        following:

``561. Contractual right to terminate, liquidate, accelerate, or offset 
          under a master netting agreement and across contracts; 
          proceedings under chapter 15.''.
  (l) Commodity Broker Liquidations.--Title 11, United States 
Code, is amended by inserting after section 766 the following:

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

  ``Notwithstanding any other provision of this title, the 
exercise of rights by a forward contract merchant, commodity 
broker, stockbroker, financial institution, financial 
participant, securities clearing agency, swap participant, repo 
participant, or master netting agreement participant under this 
title shall not affect the priority of any unsecured claim it 
may have after the exercise of such rights.''.
  (m) Stockbroker Liquidations.--Title 11, United States Code, 
is amended by inserting after section 752 the following:

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

  ``Notwithstanding any other provision of this title, the 
exercise of rights by a forward contract merchant, commodity 
broker, stockbroker, financial institution, financial 
participant, securities clearing agency, swap participant, repo 
participant, or master netting agreement participant under this 
title shall not affect the priority of any unsecured claim it 
may have after the exercise of such rights.''.
  (n) Setoff.--Section 553 of title 11, United States Code, is 
amended--
          (1) in subsection (a)(2)(B)(ii), by inserting before 
        the semicolon the following: ``(except for a setoff of 
        a kind described in section 362(b)(6), 362(b)(7), 
        362(b)(17), 362(b)(27), 555, 556, 559, 560, or 561)'';
          (2) in subsection (a)(3)(C), by inserting before the 
        period the following: ``(except for a setoff of a kind 
        described in section 362(b)(6), 362(b)(7), 362(b)(17), 
        362(b)(27), 555, 556, 559, 560, or 561)''; and
          (3) in subsection (b)(1), by striking ``362(b)(14),'' 
        and inserting ``362(b)(17), 362(b)(27), 555, 556, 559, 
        560, 561,''.
  (o) Securities Contracts, Commodity Contracts, and Forward 
Contracts.--Title 11, United States Code, is amended--
          (1) in section 362(b)(6), by striking ``financial 
        institutions,'' each place such term appears and 
        inserting ``financial institution, financial 
        participant,'';
          (2) in sections 362(b)(7) and 546(f), by inserting 
        ``or financial participant'' after ``repo participant'' 
        each place such term appears;
          (3) in section 546(e), by inserting ``financial 
        participant,'' after ``financial institution,'';
          (4) in section 548(d)(2)(B), by inserting ``financial 
        participant,'' after ``financial institution,'';
          (5) in section 548(d)(2)(C), by inserting ``or 
        financial participant'' after ``repo participant'';
          (6) in section 548(d)(2)(D), by inserting ``or 
        financial participant'' after ``swap participant'';
          (7) in section 555--
                  (A) by inserting ``financial participant,'' 
                after ``financial institution,''; and
                  (B) by striking the second sentence and 
                inserting the following: ``As used in this 
                section, the term `contractual right' includes 
                a right set forth in a rule or bylaw of a 
                derivatives clearing organization (as defined 
                in the Commodity Exchange Act), a multilateral 
                clearing organization (as defined in the 
                Federal Deposit Insurance Corporation 
                Improvement Act of 1991), a national securities 
                exchange, a national securities association, a 
                securities clearing agency, a contract market 
                designated under the Commodity Exchange Act, a 
                derivatives transaction execution facility 
                registered under the Commodity Exchange Act, or 
                a board of trade (as defined in the Commodity 
                Exchange Act), or in a resolution of the 
                governing board thereof, and a right, whether 
                or not in writing, arising under common law, 
                under law merchant, or by reason of normal 
                business practice.'';
          (8) in section 556, by inserting ``, financial 
        participant,'' after ``commodity broker'';
          (9) in section 559, by inserting ``or financial 
        participant'' after ``repo participant'' each place 
        such term appears; and
          (10) in section 560, by inserting ``or financial 
        participant'' after ``swap participant''.
  (p) Conforming Amendments.--Title 11, United States Code, is 
amended--
          (1) in the table of sections for chapter 5--
                  (A) by amending the items relating to 
                sections 555 and 556 to read as follows:

``555. Contractual right to liquidate, terminate, or accelerate a 
          securities contract.
``556. Contractual right to liquidate, terminate, or accelerate a 
          commodities contract or forward contract.'';
                and
                  (B) by amending the items relating to 
                sections 559 and 560 to read as follows:

``559. Contractual right to liquidate, terminate, or accelerate a 
          repurchase agreement.
``560. Contractual right to liquidate, terminate, or accelerate a swap 
          agreement.'';
                and
          (2) in the table of sections for chapter 7--
                  (A) by inserting after the item relating to 
                section 766 the following:

``767. Commodity broker liquidation and forward contract merchants, 
          commodity brokers, stockbrokers, financial institutions, 
          financial participants, securities clearing agencies, swap 
          participants, repo participants, and master netting agreement 
          participants.'';
                and
                  (B) by inserting after the item relating to 
                section 752 the following:

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

SEC. 808. RECORDKEEPING REQUIREMENTS.

  Section 11(e)(8) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(e)(8)) is amended by adding at the end the 
following new subparagraph:
                  ``(H) Recordkeeping requirements.--The 
                Corporation, in consultation with the 
                appropriate Federal banking agencies, may 
                prescribe regulations requiring more detailed 
                recordkeeping by any insured depository 
                institution with respect to qualified financial 
                contracts (including market valuations) only if 
                such insured depository institution is in a 
                troubled condition (as such term is defined by 
                the Corporation pursuant to section 32).''.

SEC. 809. EXEMPTIONS FROM CONTEMPORANEOUS EXECUTION REQUIREMENT.

  Section 13(e)(2) of the Federal Deposit Insurance Act (12 
U.S.C. 1823(e)(2)) is amended to read as follows:
          ``(2) Exemptions from contemporaneous execution 
        requirement.--An agreement to provide for the lawful 
        collateralization of--
                  ``(A) deposits of, or other credit extension 
                by, a Federal, State, or local governmental 
                entity, or of any depositor referred to in 
                section 11(a)(2), including an agreement to 
                provide collateral in lieu of a surety bond;
                  ``(B) bankruptcy estate funds pursuant to 
                section 345(b)(2) of title 11, United States 
                Code;
                  ``(C) extensions of credit, including any 
                overdraft, from a Federal reserve bank or 
                Federal home loan bank; or
                  ``(D) one or more qualified financial 
                contracts, as defined in section 11(e)(8)(D),
        shall not be deemed invalid pursuant to paragraph 
        (1)(B) solely because such agreement was not executed 
        contemporaneously with the acquisition of the 
        collateral or because of pledges, delivery, or 
        substitution of the collateral made in accordance with 
        such agreement.''.

SEC. 810. DAMAGE MEASURE.

  (a) In General.--Title 11, United States Code, is amended--
          (1) by inserting after section 561, as added by 
        section 907, the following:

``Sec. 562. Timing of damage measurement in connection with swap 
                    agreements, securities contracts, forward 
                    contracts, commodity contracts, repurchase 
                    agreements, and master netting agreements

  ``(a) If the trustee rejects a swap agreement, securities 
contract (as defined in section 741), forward contract, 
commodity contract (as defined in section 761), repurchase 
agreement, or master netting agreement pursuant to section 
365(a), or if a forward contract merchant, stockbroker, 
financial institution, securities clearing agency, repo 
participant, financial participant, master netting agreement 
participant, or swap participant liquidates, terminates, or 
accelerates such contract or agreement, damages shall be 
measured as of the earlier of--
          ``(1) the date of such rejection; or
          ``(2) the date or dates of such liquidation, 
        termination, or acceleration.
  ``(b) If there are not any commercially reasonable 
determinants of value as of any date referred to in paragraph 
(1) or (2) of subsection (a), damages shall be measured as of 
the earliest subsequent date or dates on which there are 
commercially reasonable determinants of value.
  ``(c) For the purposes of subsection (b), if damages are not 
measured as of the date or dates of rejection, liquidation, 
termination, or acceleration, and the forward contract 
merchant, stockbroker, financial institution, securities 
clearing agency, repo participant, financial participant, 
master netting agreement participant, or swap participant or 
the trustee objects to the timing of the measurement of 
damages--
          ``(1) the trustee, in the case of an objection by a 
        forward contract merchant, stockbroker, financial 
        institution, securities clearing agency, repo 
        participant, financial participant, master netting 
        agreement participant, or swap participant; or
          ``(2) the forward contract merchant, stockbroker, 
        financial institution, securities clearing agency, repo 
        participant, financial participant, master netting 
        agreement participant, or swap participant, in the case 
        of an objection by the trustee,
has the burden of proving that there were no commercially 
reasonable determinants of value as of such date or dates.''; 
and
          (2) in the table of sections for chapter 5, by 
        inserting after the item relating to section 561 (as 
        added by section 907) the following new item:

``562. Timing of damage measure in connection with swap agreements, 
          securities contracts, forward contracts, commodity contracts, 
          repurchase agreements, or master netting agreements.''.

  (b) Claims Arising From Rejection.--Section 502(g) of title 
11, United States Code, is amended--
          (1) by inserting ``(1)'' after ``(g)''; and
          (2) by adding at the end the following:
  ``(2) A claim for damages calculated in accordance with 
section 562 shall be allowed under subsection (a), (b), or (c), 
or disallowed under subsection (d) or (e), as if such claim had 
arisen before the date of the filing of the petition.''.

SEC. 811. SIPC STAY.

  Section 5(b)(2) of the Securities Investor Protection Act of 
1970 (15 U.S.C. 78eee(b)(2)) is amended by adding at the end 
the following new subparagraph:
                  ``(C) Exception from stay.--
                          ``(i) Notwithstanding section 362 of 
                        title 11, United States Code, neither 
                        the filing of an application under 
                        subsection (a)(3) nor any order or 
                        decree obtained by SIPC from the court 
                        shall operate as a stay of any 
                        contractual rights of a creditor to 
                        liquidate, terminate, or accelerate a 
                        securities contract, commodity 
                        contract, forward contract, repurchase 
                        agreement, swap agreement, or master 
                        netting agreement, as those terms are 
                        defined in sections 101, 741, and 761 
                        of title 11, United States Code, to 
                        offset or net termination values, 
                        payment amounts, or other transfer 
                        obligations arising under or in 
                        connection with one or more of such 
                        contracts or agreements, or to 
                        foreclose on any cash collateral 
                        pledged by the debtor, whether or not 
                        with respect to one or more of such 
                        contracts or agreements.
                          ``(ii) Notwithstanding clause (i), 
                        such application, order, or decree may 
                        operate as a stay of the foreclosure 
                        on, or disposition of, securities 
                        collateral pledged by the debtor, 
                        whether or not with respect to one or 
                        more of such contracts or agreements, 
                        securities sold by the debtor under a 
                        repurchase agreement, or securities 
                        lent under a securities lending 
                        agreement.
                          ``(iii) As used in this subparagraph, 
                        the term `contractual right' includes a 
                        right set forth in a rule or bylaw of a 
                        national securities exchange, a 
                        national securities association, or a 
                        securities clearing agency, a right set 
                        forth in a bylaw of a clearing 
                        organization or contract market or in a 
                        resolution of the governing board 
                        thereof, and a right, whether or not in 
                        writing, arising under common law, 
                        under law merchant, or by reason of 
                        normal business practice.''.

      TITLE IX--PROTECTION OF FAMILY FARMERS AND FAMILY FISHERMEN

SEC. 901. PERMANENT REENACTMENT OF CHAPTER 12.

  (a) Reenactment.--
          (1) In general.--Chapter 12 of title 11, United 
        States Code, as reenacted by section 149 of division C 
        of the Omnibus Consolidated and Emergency Supplemental 
        Appropriations Act, 1999 (Public Law 105-277), is 
        hereby reenacted, and as here reenacted is amended by 
        this Act.
          (2) Effective date.--Subsection (a) shall take effect 
        on the date of the enactment of this Act.
  (b) Conforming Amendment.--Section 302 of the Bankruptcy 
Judges, United States Trustees, and Family Farmer Bankruptcy 
Act of 1986 (28 U.S.C. 581 note) is amended by striking 
subsection (f).

SEC. 902. DEBT LIMIT INCREASE.

  Section 104(b) of title 11, United States Code, as amended by 
section 226, is amended by inserting ``101(18),'' after 
``101(3),'' each place it appears.

SEC. 903. CERTAIN CLAIMS OWED TO GOVERNMENTAL UNITS.

  (a) Contents of Plan.--Section 1222(a)(2) of title 11, United 
States Code, as amended by section 213, is amended to read as 
follows:
          ``(2) provide for the full payment, in deferred cash 
        payments, of all claims entitled to priority under 
        section 507, unless--
                  ``(A) the claim is a claim owed to a 
                governmental unit that arises as a result of 
                the sale, transfer, exchange, or other 
                disposition of any farm asset used in the 
                debtor's farming operation, in which case the 
                claim shall be treated as an unsecured claim 
                that is not entitled to priority under section 
                507, but the debt shall be treated in such 
                manner only if the debtor receives a discharge; 
                or
                  ``(B) the holder of a particular claim agrees 
                to a different treatment of that claim;''.
  (b) Special Notice Provisions.--Section 1231(b) of title 11, 
United States Code, as so designated by section 719, is amended 
by striking ``a State or local governmental unit'' and 
inserting ``any governmental unit''.
  (c) Effective Date; Application of Amendments.--This section 
and the amendments made by this section shall take effect on 
the date of the enactment of this Act and shall not apply with 
respect to cases commenced under title 11 of the United States 
Code before such date.

SEC. 904. DEFINITION OF FAMILY FARMER.

  Section 101(18) of title 11, United States Code, is amended--
          (1) in subparagraph (A)--
                  (A) by striking ``$1,500,000'' and inserting 
                ``$3,237,000''; and
                  (B) by striking ``80'' and inserting ``50''; 
                and
          (2) in subparagraph (B)(ii)--
                  (A) by striking ``$1,500,000'' and inserting 
                ``$3,237,000''; and
                  (B) by striking ``80'' and inserting ``50''.

SEC. 905. ELIMINATION OF REQUIREMENT THAT FAMILY FARMER AND SPOUSE 
                    RECEIVE OVER 50 PERCENT OF INCOME FROM FARMING 
                    OPERATION IN YEAR PRIOR TO BANKRUPTCY.

  Section 101(18)(A) of title 11, United States Code, is 
amended by striking ``for the taxable year preceding the 
taxable year'' and inserting the following:
                ``for--
                          ``(i) the taxable year preceding; or
                          ``(ii) each of the 2d and 3d taxable 
                        years preceding;
                the taxable year''.

SEC. 906. PROHIBITION OF RETROACTIVE ASSESSMENT OF DISPOSABLE INCOME.

  (a) Confirmation of Plan.--Section 1225(b)(1) of title 11, 
United States Code, is amended--
          (1) in subparagraph (A) by striking ``or'' at the 
        end;
          (2) in subparagraph (B) by striking the period at the 
        end and inserting ``; or''; and
          (3) by adding at the end the following:
          ``(C) the value of the property to be distributed 
        under the plan in the 3-year period, or such longer 
        period as the court may approve under section 1222(c), 
        beginning on the date that the first distribution is 
        due under the plan is not less than the debtor's 
        projected disposable income for such period.''.
  (b) Modification of Plan.--Section 1229 of title 11, United 
States Code, is amended by adding at the end the following:
  ``(d) A plan may not be modified under this section--
          ``(1) to increase the amount of any payment due 
        before the plan as modified becomes the plan;
          ``(2) by anyone except the debtor, based on an 
        increase in the debtor's disposable income, to increase 
        the amount of payments to unsecured creditors required 
        for a particular month so that the aggregate of such 
        payments exceeds the debtor's disposable income for 
        such month; or
          ``(3) in the last year of the plan by anyone except 
        the debtor, to require payments that would leave the 
        debtor with insufficient funds to carry on the farming 
        operation after the plan is completed.''.

SEC. 907. FAMILY FISHERMEN.

  (a) Definitions.--Section 101 of title 11, United States 
Code, is amended--
          (1) by inserting after paragraph (7) the following:
          ``(7A) `commercial fishing operation' means--
                  ``(A) the catching or harvesting of fish, 
                shrimp, lobsters, urchins, seaweed, shellfish, 
                or other aquatic species or products of such 
                species; or
                  ``(B) for purposes of section 109 and chapter 
                12, aquaculture activities consisting of 
                raising for market any species or product 
                described in subparagraph (A);
          ``(7B) `commercial fishing vessel' means a vessel 
        used by a family fisherman to carry out a commercial 
        fishing operation;''; and
          (2) by inserting after paragraph (19) the following:
          ``(19A) `family fisherman' means--
                  ``(A) an individual or individual and spouse 
                engaged in a commercial fishing operation--
                          ``(i) whose aggregate debts do not 
                        exceed $1,500,000 and not less than 80 
                        percent of whose aggregate 
                        noncontingent, liquidated debts 
                        (excluding a debt for the principal 
                        residence of such individual or such 
                        individual and spouse, unless such debt 
                        arises out of a commercial fishing 
                        operation), on the date the case is 
                        filed, arise out of a commercial 
                        fishing operation owned or operated by 
                        such individual or such individual and 
                        spouse; and
                          ``(ii) who receive from such 
                        commercial fishing operation more than 
                        50 percent of such individual's or such 
                        individual's and spouse's gross income 
                        for the taxable year preceding the 
                        taxable year in which the case 
                        concerning such individual or such 
                        individual and spouse was filed; or
                  ``(B) a corporation or partnership--
                          ``(i) in which more than 50 percent 
                        of the outstanding stock or equity is 
                        held by--
                                  ``(I) 1 family that conducts 
                                the commercial fishing 
                                operation; or
                                  ``(II) 1 family and the 
                                relatives of the members of 
                                such family, and such family or 
                                such relatives conduct the 
                                commercial fishing operation; 
                                and
                          ``(ii)(I) more than 80 percent of the 
                        value of its assets consists of assets 
                        related to the commercial fishing 
                        operation;
                          ``(II) its aggregate debts do not 
                        exceed $1,500,000 and not less than 80 
                        percent of its aggregate noncontingent, 
                        liquidated debts (excluding a debt for 
                        1 dwelling which is owned by such 
                        corporation or partnership and which a 
                        shareholder or partner maintains as a 
                        principal residence, unless such debt 
                        arises out of a commercial fishing 
                        operation), on the date the case is 
                        filed, arise out of a commercial 
                        fishing operation owned or operated by 
                        such corporation or such partnership; 
                        and
                          ``(III) if such corporation issues 
                        stock, such stock is not publicly 
                        traded;
          ``(19B) `family fisherman with regular annual income' 
        means a family fisherman whose annual income is 
        sufficiently stable and regular to enable such family 
        fisherman to make payments under a plan under chapter 
        12 of this title;''.
  (b) Who May Be a Debtor.--Section 109(f) of title 11, United 
States Code, is amended by inserting ``or family fisherman'' 
after ``family farmer''.
  (c)  Chapter 12.--Chapter 12 of title 11, United States Code, 
is amended--
          (1) in the chapter heading, by inserting ``OR 
        FISHERMAN'' after ``FAMILY FARMER'';
          (2) in section 1203, by inserting ``or commercial 
        fishing operation'' after ``farm''; and
          (3) in section 1206, by striking ``if the property is 
        farmland or farm equipment'' and inserting ``if the 
        property is farmland, farm equipment, or property used 
        to carry out a commercial fishing operation (including 
        a commercial fishing vessel)''.
  (d) Clerical Amendment.--In the table of chapters for title 
11, United States Code, the item relating to chapter 12, is 
amended to read as follows:

``12. Adjustments of Debts of a Family Farmer or Family Fisherman 
              with Regular Annual Income.........................1201''.

  (e) Applicability.--Nothing in this section shall change, 
affect, or amend the Fishery Conservation and Management Act of 
1976 (16 U.S.C. 1801, et seq.).

               TITLE X--HEALTH CARE AND EMPLOYEE BENEFITS

SEC. 1001. DEFINITIONS.

  (a) Health Care Business Defined.--Section 101 of title 11, 
United States Code, as amended by section 306, is amended--
          (1) by redesignating paragraph (27A) as paragraph 
        (27B); and
          (2) by inserting after paragraph (27) the following:
          ``(27A) `health care business'--
                  ``(A) means any public or private entity 
                (without regard to whether that entity is 
                organized for profit or not for profit) that is 
                primarily engaged in offering to the general 
                public facilities and services for--
                          ``(i) the diagnosis or treatment of 
                        injury, deformity, or disease; and
                          ``(ii) surgical, drug treatment, 
                        psychiatric, or obstetric care; and
                  ``(B) includes--
                          ``(i) any--
                                  ``(I) general or specialized 
                                hospital;
                                  ``(II) ancillary ambulatory, 
                                emergency, or surgical 
                                treatment facility;
                                  ``(III) hospice;
                                  ``(IV) home health agency; 
                                and
                                  ``(V) other health care 
                                institution that is similar to 
                                an entity referred to in 
                                subclause (I), (II), (III), or 
                                (IV); and
                          ``(ii) any long-term care facility, 
                        including any--
                                  ``(I) skilled nursing 
                                facility;
                                  ``(II) intermediate care 
                                facility;
                                  ``(III) assisted living 
                                facility;
                                  ``(IV) home for the aged;
                                  ``(V) domiciliary care 
                                facility; and
                                  ``(VI) health care 
                                institution that is related to 
                                a facility referred to in 
                                subclause (I), (II), (III), 
                                (IV), or (V), if that 
                                institution is primarily 
                                engaged in offering room, 
                                board, laundry, or personal 
                                assistance with activities of 
                                daily living and incidentals to 
                                activities of daily living;''.
  (b) Patient and Patient Records Defined.--Section 101 of 
title 11, United States Code, is amended by inserting after 
paragraph (40) the following:
          ``(40A) `patient' means any individual who obtains or 
        receives services from a health care business;
          ``(40B) `patient records' means any written document 
        relating to a patient or a record recorded in a 
        magnetic, optical, or other form of electronic 
        medium;''.
  (c) Rule of Construction.--The amendments made by subsection 
(a) of this section shall not affect the interpretation of 
section 109(b) of title 11, United States Code.

SEC. 1002. DISPOSAL OF PATIENT RECORDS.

  (a) In General.--Subchapter III of chapter 3 of title 11, 
United States Code, is amended by adding at the end the 
following:

``Sec. 351. Disposal of patient records

  ``If a health care business commences a case under chapter 7, 
9, or 11, and the trustee does not have a sufficient amount of 
funds to pay for the storage of patient records in the manner 
required under applicable Federal or State law, the following 
requirements shall apply:
          ``(1) The trustee shall--
                  ``(A) promptly publish notice, in 1 or more 
                appropriate newspapers, that if patient records 
                are not claimed by the patient or an insurance 
                provider (if applicable law permits the 
                insurance provider to make that claim) by the 
                date that is 365 days after the date of that 
                notification, the trustee will destroy the 
                patient records; and
                  ``(B) during the first 180 days of the 365-
                day period described in subparagraph (A), 
                promptly attempt to notify directly each 
                patient that is the subject of the patient 
                records and appropriate insurance carrier 
                concerning the patient records by mailing to 
                the most recent known address of that patient, 
                or a family member or contact person for that 
                patient, and to the appropriate insurance 
                carrier an appropriate notice regarding the 
                claiming or disposing of patient records.
          ``(2) If, after providing the notification under 
        paragraph (1), patient records are not claimed during 
        the 365-day period described under that paragraph, the 
        trustee shall mail, by certified mail, at the end of 
        such 365-day period a written request to each 
        appropriate Federal agency to request permission from 
        that agency to deposit the patient records with that 
        agency, except that no Federal agency is required to 
        accept patient records under this paragraph.
          ``(3) If, following the 365-day period described in 
        paragraph (2) and after providing the notification 
        under paragraph (1), patient records are not claimed by 
        a patient or insurance provider, or request is not 
        granted by a Federal agency to deposit such records 
        with that agency, the trustee shall destroy those 
        records by--
                  ``(A) if the records are written, shredding 
                or burning the records; or
                  ``(B) if the records are magnetic, optical, 
                or other electronic records, by otherwise 
                destroying those records so that those records 
                cannot be retrieved.''.
  (b) Clerical Amendment.--The table of sections for subchapter 
III of chapter 3 of title 11, United States Code, is amended by 
adding at the end the following:

``351. Disposal of patient records.''.

SEC. 1003. ADMINISTRATIVE EXPENSE CLAIM FOR COSTS OF CLOSING A HEALTH 
                    CARE BUSINESS AND OTHER ADMINISTRATIVE EXPENSES.

  Section 503(b) of title 11, United States Code, as amended by 
section 445, is amended by adding at the end the following:
          ``(8) the actual, necessary costs and expenses of 
        closing a health care business incurred by a trustee or 
        by a Federal agency (as defined in section 551(1) of 
        title 5) or a department or agency of a State or 
        political subdivision thereof, including any cost or 
        expense incurred--
                  ``(A) in disposing of patient records in 
                accordance with section 351; or
                  ``(B) in connection with transferring 
                patients from the health care business that is 
                in the process of being closed to another 
                health care business; and''.

SEC. 1004. APPOINTMENT OF OMBUDSMAN TO ACT AS PATIENT ADVOCATE.

  (a) Ombudsman To Act as Patient Advocate.--
          (1) Appointment of ombudsman.--Title 11, United 
        States Code, as amended by section 232, is amended by 
        inserting after section 332 the following:

``Sec. 333. Appointment of patient care ombudsman

  ``(a)(1) If the debtor in a case under chapter 7, 9, or 11 is 
a health care business, the court shall order, not later than 
30 days after the commencement of the case, the appointment of 
an ombudsman to monitor the quality of patient care and to 
represent the interests of the patients of the health care 
business unless the court finds that the appointment of such 
ombudsman is not necessary for the protection of patients under 
the specific facts of the case.
  ``(2)(A) If the court orders the appointment of an ombudsman 
under paragraph (1), the United States trustee shall appoint 1 
disinterested person (other than the United States trustee) to 
serve as such ombudsman.
  ``(B) If the debtor is a health care business that provides 
long-term care, then the United States trustee may appoint the 
State Long-Term Care Ombudsman appointed under the Older 
Americans Act of 1965 for the State in which the case is 
pending to serve as the ombudsman required by paragraph (1).
  ``(C) If the United States trustee does not appoint a State 
Long-Term Care Ombudsman under subparagraph (B), the court 
shall notify the State Long-Term Care Ombudsman appointed under 
the Older Americans Act of 1965 for the State in which the case 
is pending, of the name and address of the person who is 
appointed under subparagraph (A).
  ``(b) An ombudsman appointed under subsection (a) shall--
          ``(1) monitor the quality of patient care provided to 
        patients of the debtor, to the extent necessary under 
        the circumstances, including interviewing patients and 
        physicians;
          ``(2) not later than 60 days after the date of 
        appointment, and not less frequently than at 60-day 
        intervals thereafter, report to the court after notice 
        to the parties in interest, at a hearing or in writing, 
        regarding the quality of patient care provided to 
        patients of the debtor; and
          ``(3) if such ombudsman determines that the quality 
        of patient care provided to patients of the debtor is 
        declining significantly or is otherwise being 
        materially compromised, file with the court a motion or 
        a written report, with notice to the parties in 
        interest immediately upon making such determination.
  ``(c)(1) An ombudsman appointed under subsection (a) shall 
maintain any information obtained by such ombudsman under this 
section that relates to patients (including information 
relating to patient records) as confidential information. Such 
ombudsman may not review confidential patient records unless 
the court approves such review in advance and imposes 
restrictions on such ombudsman to protect the confidentiality 
of such records.
  ``(2) An ombudsman appointed under subsection (a)(2)(B) shall 
have access to patient records consistent with authority of 
such ombudsman under the Older Americans Act of 1965 and under 
non-Federal laws governing the State Long-Term Care Ombudsman 
program.''.
          (2) Clerical amendment.--The table of sections for 
        subchapter II of chapter 3 of title 11, United States 
        Code, as amended by section 232, is amended by adding 
        at the end the following:

``333. Appointment of ombudsman.''.

  (b) Compensation of Ombudsman.--Section 330(a)(1) of title 
11, United States Code, is amended--
          (1) in the matter preceding subparagraph (A), by 
        inserting ``an ombudsman appointed under section 333, 
        or'' before ``a professional person''; and
          (2) in subparagraph (A), by inserting ``ombudsman,'' 
        before ``professional person''.

SEC. 1005. DEBTOR IN POSSESSION; DUTY OF TRUSTEE TO TRANSFER PATIENTS.

  (a) In General.--Section 704(a) of title 11, United States 
Code, as amended by sections 102, 219, and 446, is amended by 
adding at the end the following:
          ``(12) use all reasonable and best efforts to 
        transfer patients from a health care business that is 
        in the process of being closed to an appropriate health 
        care business that--
                  ``(A) is in the vicinity of the health care 
                business that is closing;
                  ``(B) provides the patient with services that 
                are substantially similar to those provided by 
                the health care business that is in the process 
                of being closed; and
                  ``(C) maintains a reasonable quality of 
                care.''.
  (b) Conforming Amendment.--Section 1106(a)(1) of title 11, 
United States Code, as amended by section 446, is amended by 
striking ``and (11)'' and inserting ``(11), and (12)''.

SEC. 1006. EXCLUSION FROM PROGRAM PARTICIPATION NOT SUBJECT TO 
                    AUTOMATIC STAY.

  Section 362(b) of title 11, United States Code, is amended by 
inserting after paragraph (27), as amended by sections 224, 
303, 311, 401, 718, and 907, the following:
          ``(28) under subsection (a), of the exclusion by the 
        Secretary of Health and Human Services of the debtor 
        from participation in the medicare program or any other 
        Federal health care program (as defined in section 
        1128B(f) of the Social Security Act pursuant to title 
        XI or XVIII of such Act).''.

                     TITLE XI--TECHNICAL AMENDMENTS

SEC. 1101. DEFINITIONS.

  Section 101 of title 11, United States Code, as hereinbefore 
amended by this Act, is amended--
          (1) by striking ``In this title--'' and inserting 
        ``In this title the following definitions shall 
        apply:'';
          (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 each of paragraphs (35A), (38), and (54A), by 
        striking ``; and'' at the end and inserting a period;
          (5) in paragraph (51B) by inserting ``who is not a 
        family farmer'' after ``debtor'' the first place it 
        appears; and
          (6) by striking paragraph (54) and inserting the 
        following:
          ``(54) The term `transfer' means--
                  ``(A) the creation of a lien;
                  ``(B) the retention of title as a security 
                interest;
                  ``(C) the foreclosure of a debtor's equity of 
                redemption; or
                  ``(D) each mode, direct or indirect, absolute 
                or conditional, voluntary or involuntary, of 
                disposing of or parting with--
                          ``(i) property; or
                          ``(ii) an interest in property;'';
          (7) by indenting the left margin of paragraph (54A) 2 
        ems to the right; and
          (8) in each of paragraphs (1) through (35), in each 
        of paragraphs (36), (37), (38A), (38B) and (39A), and 
        in each of paragraphs (40) through (55), by striking 
        the semicolon at the end and inserting a period.

SEC. 1102. 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. 1103. 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. 1104. TECHNICAL AMENDMENTS.

  Title 11, United States Code, is amended--
          (1) in section 109(b)(2), by striking ``subsection 
        (c) or (d) of''; and
          (2) in section 552(b)(1), by striking ``product'' 
        each place it appears and inserting ``products''.

SEC. 1105. PENALTY FOR PERSONS WHO NEGLIGENTLY OR FRAUDULENTLY PREPARE 
                    BANKRUPTCY PETITIONS.

  Section 110(j)(4) of title 11, United States Code, as so 
redesignated by section 221, is amended by striking 
``attorney's'' and inserting ``attorneys' ''.

SEC. 1106. 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. 1107. 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. 1108. 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. 1109. EXCEPTIONS TO DISCHARGE.

  Section 523 of title 11, United States Code, as amended by 
sections 215 and 314, is amended--
          (1) by transferring paragraph (15), as added by 
        section 304(e) of Public Law 103-394 (108 Stat. 4133), 
        so as to insert such paragraph after subsection 
        (a)(14A);
          (2) in subsection (a)(9), by striking ``motor 
        vehicle'' and inserting ``motor vehicle, vessel, or 
        aircraft''; and
          (3) in subsection (e), by striking ``a insured'' and 
        inserting ``an insured''.

SEC. 1110. 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), 
or that''.

SEC. 1111. 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. 1112. 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. 1113. PREFERENCES.

  (a) In General.--Section 547 of title 11, United States Code, 
as amended by section 201, is amended--
          (1) in subsection (b), by striking ``subsection (c)'' 
        and inserting ``subsections (c) and (i)''; and
          (2) by adding at the end the following:
  ``(i) If the trustee avoids under subsection (b) a transfer 
made between 90 days and 1 year before the date of the filing 
of the petition, by the debtor to an entity that is not an 
insider for the benefit of a creditor that is an insider, such 
transfer shall be considered to be avoided under this section 
only with respect to the creditor that is an insider.''.
  (b) Applicability.--The amendments made by this section shall 
apply to any case that is pending or commenced on or after the 
date of enactment of this Act.

SEC. 1114. POSTPETITION TRANSACTIONS.

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

SEC. 1115. DISPOSITION OF PROPERTY OF THE ESTATE.

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

SEC. 1116. GENERAL PROVISIONS.

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

SEC. 1117. 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. 1118. 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. 1119. 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. 1120. 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. 1121. TRANSFERS MADE BY NONPROFIT CHARITABLE CORPORATIONS.

  (a) Sale of Property of Estate.--Section 363(d) of title 11, 
United States Code, is amended by striking ``only'' and all 
that follows through the end of the subsection and inserting 
``only--
          ``(1) in accordance with applicable nonbankruptcy law 
        that governs the transfer of property by a corporation 
        or trust that is not a moneyed, business, or commercial 
        corporation or trust; and
          ``(2) to the extent not inconsistent with any relief 
        granted under subsection (c), (d), (e), or (f) of 
        section 362.''.
  (b) Confirmation of Plan of Reorganization.--Section 1129(a) 
of title 11, United States Code, as amended by sections 213 and 
321, is amended by adding at the end the following:
          ``(16) All transfers of property of the plan shall be 
        made in accordance with any applicable provisions of 
        nonbankruptcy law that govern the transfer of property 
        by a corporation or trust that is not a moneyed, 
        business, or commercial corporation or trust.''.
  (c) Transfer of Property.--Section 541 of title 11, United 
States Code, as amended by section 225, is amended by adding at 
the end the following:
  ``(f) Notwithstanding any other provision of this title, 
property that is held by a debtor that is a corporation 
described in section 501(c)(3) of the Internal Revenue Code of 
1986 and exempt from tax under section 501(a) of such Code may 
be transferred to an entity that is not such a corporation, but 
only under the same conditions as would apply if the debtor had 
not filed a case under this title.''.
  (d) Applicability.--The amendments made by this section shall 
apply to a case pending under title 11, United States Code, on 
the date of enactment of this Act, or filed under that title on 
or after that date of enactment, except that the court shall 
not confirm a plan under chapter 11 of title 11, United States 
Code, without considering whether this section would 
substantially affect the rights of a party in interest who 
first acquired rights with respect to the debtor after the date 
of the filing of the petition. The parties who may appear and 
be heard in a proceeding under this section include the 
attorney general of the State in which the debtor is 
incorporated, was formed, or does business.
  (e) Rule of Construction.--Nothing in this section shall be 
construed to require the court in which a case under chapter 11 
of title 11, United States Code, is pending to remand or refer 
any proceeding, issue, or controversy to any other court or to 
require the approval of any other court for the transfer of 
property.

SEC. 1122. AUTHORIZATION FOR ADDITIONAL BANKRUPTCY JUDGSHIPS.

  The following judgeships positions shall be filled in the 
manner prescribed in section 152(a)(1) of title 28, United 
States Code, for the appointment of bankruptcy judges provided 
for in section 152(a)(2) of such title:
          (1) Two additional bankruptcy judgeships for the 
        southern district of New York.
          (2) Four additional bankruptcy judgeships for the 
        district of Delaware.
          (3) One additional bankruptcy judgeship for the 
        district of New Jersey.
          (4) One additional bankruptcy judgeship for the 
        eastern district of Pennsylvania.
          (5) Three additional bankruptcy judgeships for the 
        district of Maryland.
          (6) One additional bankruptcy judgeship for the 
        eastern district of North Carolina.
          (7) One additional bankruptcy judgeship for the 
        district of South Carolina.
          (8) One additional bankruptcy judgeship for the 
        eastern district of Virginia.
          (9) Two additional bankruptcy judgeships for the 
        eastern district of Michigan.
          (10) Two additional bankruptcy judgeships for the 
        western district of Tennessee.
          (11) One additional bankruptcy judgeship for the 
        eastern and western districts of Arkansas.
          (12) Two additional bankruptcy judgeships for the 
        district of Nevada.
          (13) One additional bankruptcy judgeship for the 
        district of Utah.
          (14) Two additional bankruptcy judgeships for the 
        middle district of Florida.
          (15) Two additional bankruptcy judgeships for the 
        southern district of Florida.
          (16) Two additional bankruptcy judgeships for the 
        northern district of Georgia.
          (17) One additional bankruptcy judgeship for the 
        southern district of Georgia.

SEC. 1123. TEMPORARY BANKRUPTCY JUDGESHIPS.

  (a) Authorization for Additional Temporary Bankruptcy 
Judgeships.--The following judgeship positions shall be filled 
in the manner prescribed in section 152(a)(1) of title 28, 
United States Code, for the appointment of bankruptcy judges 
provided for in section 152(a)(2) of such title:
          (1) One additional bankruptcy judgeship for the 
        district of Puerto Rico.
          (2) One additional bankruptcy judgeship for the 
        northern district of New York.
          (3) One additional bankruptcy judgeship for the 
        middle district of Pennsylvania.
          (4) One additional bankruptcy judgeship for the 
        district of Maryland.
          (5) One additional bankruptcy judgeship for the 
        northern district of Mississippi.
          (6) One additional bankruptcy judgeship for the 
        southern district of Mississippi.
          (7) One additional bankruptcy judgeship for the 
        southern district of Georgia.
  (b) Vacancies.--
          (1) In general.--The first vacancy occurring in the 
        office of bankruptcy judge in each of the judicial 
        districts set forth in subsection (a)--
                  (A) occurring 5 years or more after the 
                appointment date of the bankruptcy judge 
                appointed under subsection (a) to such office; 
                and
                  (B) resulting from the death, retirement, 
                resignation, or removal of a bankruptcy judge;
        shall not be filled.
          (2) Term expiration.--In the case of a vacancy 
        resulting from the expiration of the term of a 
        bankruptcy judge not described in paragraph (1), that 
        judge shall be eligible for reappointment as a 
        bankruptcy judge in that district.
  (c) Extension of Existing Temporary Bankruptcy Judgeships.--
          (1) In general.--The temporary bankruptcy judgeships 
        authorized for the northern district of Alabama and the 
        eastern district of Tennessee under paragraphs (1) and 
        (9) of section 3(a) of the Bankruptcy Judgeship Act of 
        1992 (28 U.S.C. 152 note) are extended until the first 
        vacancy occurring in the office of a bankruptcy judge 
        in the applicable district resulting from the death, 
        retirement, resignation, or removal of a bankruptcy 
        judge and occurring 5 years or more after the date of 
        enactment of this Act.
          (2) Applicability of other provisions.--All other 
        provisions of section 3 of the Bankruptcy Judgeship Act 
        of 1992 (28 U.S.C. 152 note) remain applicable to the 
        temporary bankruptcy judgeships referred to in this 
        subsection.

SEC. 1124. TRANSFER OF BANKRUPTCY JUDGESHIP SHARED BY THE MIDDLE 
                    DISTRICT OF GEORGIA AND THE SOUTHERN DISTRICT OF 
                    GEORGIA.

  The bankruptcy judgeship presently shared by the southern 
district of Georgia and the middle district of Georgia shall be 
converted to a bankruptcy judgeship for the middle district of 
Georgia.

SEC. 1125. CONVERSION OF EXISTING TEMPORARY BANKRUPTCY JUDGESHIPS.

  (a) District of Delaware.--The temporary bankruptcy judgeship 
authorized for the district of Delaware pursuant to section 3 
of the Bankruptcy Judgeship Act of 1992 (28 U.S.C. 152 note), 
shall be converted to a permanent bankruptcy judgeship.
  (b) District of Puerto Rico.--The temporary bankruptcy 
judgeship authorized for the district of Puerto Rico pursuant 
to section 3 of the Bankruptcy Judgeship Act of 1992 (28 U.S.C. 
152 note), shall be converted to a permanent bankruptcy 
judgeship.

SEC. 1126. TECHNICAL AMENDMENTS.

  Section 152(a)(2) of title 28, United States Code, is 
amended--
          (1) in the item relating to the eastern and western 
        districts of Arkansas, by striking ``3'' and inserting 
        ``4'';
          (2) in the item relating to the district of Delaware, 
        by striking ``1'' and inserting ``6'';
          (3) in the item relating to the middle district of 
        Florida, by striking ``8'' and inserting ``10'';
          (4) in the item relating to the southern district of 
        Florida, by striking ``5'' and inserting ``7'';
          (5) in the item relating to the northern district of 
        Georgia, by striking ``8'' and inserting ``10'';
          (6) in the item relating to the middle district of 
        Georgia, by striking ``2'' and inserting ``3'';
          (7) in the item relating to the southern district of 
        Georgia, by striking ``2'' and inserting ``3'';
          (8) in the collective item relating to the middle and 
        southern districts of Georgia, by striking ``Middle and 
        Southern . . . . . . 1'';
          (9) in the item relating to the district of Maryland, 
        by striking ``4'' and inserting ``7'';
          (10) in the item relating to the eastern district of 
        Michigan, by striking ``4'' and inserting ``6'';
          (11) in the item relating to the district of Nevada, 
        by striking ``3'' and inserting 5'';
          (12) in the item relating to the district of New 
        Jersey, by striking ``8'' and inserting ``9'';
          (13) in the item relating to the southern district of 
        New York, by striking ``9'' and inserting ``11'';
          (14) in the item relating to the eastern district of 
        North Carolina, by striking ``2'' and inserting ``3'';
          (15) in the item relating to the eastern district of 
        Pennsylvania, by striking ``5'' and inserting ``6'';
          (16) in the item relating to the district of Puerto 
        Rico, by striking ``2 and inserting ``3'';
          (17) in the item relating to the district of South 
        Carolina, by striking ``2'' and inserting ``3'';
          (18) in the item relating to the western district of 
        Tennessee, by striking ``4'' and inserting ``6'';
          (19) in the item relating to the district of Utah, by 
        striking ``3'' and inserting ``4''; and
          (20) in the item relating to the eastern district of 
        Virginia, by striking ``5'' and inserting ``6''.

SEC. 1126. COMPENSATING TRUSTEES.

  Section 1326 of title 11, United States Code, is amended--
          (1) in subsection (b)--
                  (A) in paragraph (1), by striking ``and'';
                  (B) in paragraph (2), by striking the period 
                at the end and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(3) if a chapter 7 trustee has been allowed 
        compensation due to the conversion or dismissal of the 
        debtor's prior case pursuant to section 707(b), and 
        some portion of that compensation remains unpaid in a 
        case converted to this chapter or in the case dismissed 
        under section 707(b) and refiled under this chapter, 
        the amount of any such unpaid compensation, which shall 
        be paid monthly--
                  ``(A) by prorating such amount over the 
                remaining duration of the plan; and
                  ``(B) by monthly payments not to exceed the 
                greater of--
                          ``(i) $25; or
                          ``(ii) the amount payable to 
                        unsecured nonpriority creditors, as 
                        provided by the plan, multiplied by 5 
                        percent, and the result divided by the 
                        number of months in the plan.''; and
          (2) by adding at the end the following:
  ``(d) Notwithstanding any other provision of this title--
          ``(1) compensation referred to in subsection (b)(3) 
        is payable and may be collected by the trustee under 
        that paragraph, even if such amount has been discharged 
        in a prior case under this title; and
          ``(2) such compensation is payable in a case under 
        this chapter only to the extent permitted by subsection 
        (b)(3).''.

SEC. 1126. AMENDMENT TO SECTION 362 OF TITLE 11, UNITED STATES CODE.

  Section 362(b)(18) of title 11, United States Code, is 
amended to read as follows:
          ``(18) under subsection (a) of the creation or 
        perfection of a statutory lien for an ad valorem 
        property tax, or a special tax or special assessment on 
        real property whether or not ad valorem, imposed by a 
        governmental unit, if such tax or assessment comes due 
        after the date of the filing of the petition;''.

SEC. 1127. JUDICIAL EDUCATION.

  The Director of the Federal Judicial Center, in consultation 
with the Director of the Executive Office for United States 
Trustees, shall develop materials and conduct such training as 
may be useful to courts in implementing this Act and the 
amendments made by this Act, including the requirements 
relating to the means test under section 707(b), and 
reaffirmation agreements under section 524, of title 11 of the 
United States Code, as amended by this Act.

SEC. 1128. RECLAMATION.

  (a) Rights and Powers of the Trustee.--Section 546(c) of 
title 11, United States Code, is amended to read as follows:
  ``(c)(1) Except as provided in subsection (d) of this section 
and in section 507(c), and subject to the prior rights of a 
holder of a security interest in such goods or the proceeds 
thereof, the rights and powers of the trustee under sections 
544(a), 545, 547, and 549 are subject to the right of a seller 
of goods that has sold goods to the debtor, in the ordinary 
course of such seller's business, to reclaim such goods if the 
debtor has received such goods while insolvent, within 45 days 
before the date of the commencement of a case under this title, 
but such seller may not reclaim such goods unless such seller 
demands in writing reclamation of such goods--
          ``(A) not later than 45 days after the date of 
        receipt of such goods by the debtor; or
          ``(B) not later than 20 days after the date of 
        commencement of the case, if the 45-day period expires 
        after the commencement of the case.
  ``(2) If a seller of goods fails to provide notice in the 
manner described in paragraph (1), the seller still may assert 
the rights contained in section 503(b)(9).''.
  (b) Administrative Expenses.--Section 503(b) of title 11, 
United States Code, as amended by sections 445 and 1103, is 
amended by adding at the end the following:
          ``(9) the value of any goods received by the debtor 
        within 20 days before the date of commencement of a 
        case under this title in which the goods have been sold 
        to the debtor in the ordinary course of such debtor's 
        business.''.

SEC. 1127. PROVIDING REQUESTED TAX DOCUMENTS TO THE COURT.

  (a) Chapter 7 Cases.--The court shall not grant a discharge 
in the case of an individual who is a debtor in a case under 
chapter 7 of title 11, United States Code, unless requested tax 
documents have been provided to the court.
  (b) Chapter 11 and Chapter 13 Cases.--The court shall not 
confirm a plan of reorganization in the case of an individual 
under chapter 11 or 13 of title 11, United States Code, unless 
requested tax documents have been filed with the court.
  (c) Document Retention.--The court shall destroy documents 
submitted in support of a bankruptcy claim not sooner than 3 
years after the date of the conclusion of a case filed by an 
individual under chapter 7, 11, or 13 of title 11, United 
States Code. In the event of a pending audit or enforcement 
action, the court may extend the time for destruction of such 
requested tax documents.
  (d) The prohibition against the granting of a discharge in 
subsection (a) and the prohibition against the confirmation of 
a plan of reorganization in subsection (b) shall not apply if 
the debtor is unable to provide such tax documents due to 
circumstance beyond the debtor s control including the failure 
of the taxing authority to provide such documents.

SEC. 1128. ENCOURAGING CREDITWORTHINESS.

  (a) Sense of the Congress.--It is the sense of the Congress 
that--
          (1) certain lenders may sometimes offer credit to 
        consumers indiscriminately, without taking steps to 
        ensure that consumers are capable of repaying the 
        resulting debt, and in a manner which may encourage 
        certain consumers to accumulate additional debt; and
          (2) resulting consumer debt may increasingly be a 
        major contributing factor to consumer insolvency.
  (b) Study Required.--The Board of Governors of the Federal 
Reserve System (hereafter in this section referred to as the 
``Board'') shall conduct a study of--
          (1) consumer credit industry practices of soliciting 
        and extending credit--
                  (A) indiscriminately;
                  (B) without taking steps to ensure that 
                consumers are capable of repaying the resulting 
                debt; and
                  (C) in a manner that encourages consumers to 
                accumulate additional debt; and
          (2) the effects of such practices on consumer debt 
        and insolvency.
  (c) Report and Regulations.--Not later than 12 months after 
the date of enactment of this Act, the Board--
          (1) shall make public a report on its findings with 
        respect to the indiscriminate solicitation and 
        extension of credit by the credit industry;
          (2) may issue regulations that would require 
        additional disclosures to consumers; and
          (3) may take any other actions, consistent with its 
        existing statutory authority, that the Board finds 
        necessary to ensure responsible industrywide practices 
        and to prevent resulting consumer debt and insolvency.

SEC. 1129. TRUSTEES.

  (a) Suspension and Termination of Panel Trustees and Standing 
Trustees.--Section 586(d) of title 28, United States Code, is 
amended--
          (1) by inserting ``(1)'' after ``(d)''; and
          (2) by adding at the end the following:
  ``(2) A trustee whose appointment under subsection (a)(1) or 
under subsection (b) is terminated or who ceases to be assigned 
to cases filed under title 11, United States Code, may obtain 
judicial review of the final agency decision by commencing an 
action in the district court of the United States for the 
district for which the panel to which the trustee is appointed 
under subsection (a)(1), or in the district court of the United 
States for the district in which the trustee is appointed under 
subsection (b) resides, after first exhausting all available 
administrative remedies, which if the trustee so elects, shall 
also include an administrative hearing on the record. Unless 
the trustee elects to have an administrative hearing on the 
record, the trustee shall be deemed to have exhausted all 
administrative remedies for purposes of this paragraph if the 
agency fails to make a final agency decision within 90 days 
after the trustee requests administrative remedies. The 
Attorney General shall prescribe procedures to implement this 
paragraph. The decision of the agency shall be affirmed by the 
district court unless it is unreasonable and without cause 
based on the administrative record before the agency.''.
  (b) Expenses of Standing Trustees.--Section 586(e) of title 
28, United States Code, is amended by adding at the end the 
following:
  ``(3) After first exhausting all available administrative 
remedies, an individual appointed under subsection (b) may 
obtain judicial review of final agency action to deny a claim 
of actual, necessary expenses under this subsection by 
commencing an action in the district court of the United States 
for the district where the individual resides. The decision of 
the agency shall be affirmed by the district court unless it is 
unreasonable and without cause based upon the administrative 
record before the agency.
  ``(4) The Attorney General shall prescribe procedures to 
implement this subsection.''.

SEC. 1131. BANKRUPTCY FORMS.

  Section 2075 of title 28, United States Code, is amended by 
adding at the end the following:
  ``The bankruptcy rules promulgated under this section shall 
prescribe a form for the statement required under section 
707(b)(2)(C) of title 11 and may provide general rules on the 
content of such statement.''.

SEC. 1133. DIRECT APPEALS OF BANKRUPTCY MATTERS TO COURTS OF APPEALS.

  (a) Appeals.--Section 158 of title 28, United States Code, is 
amended--
          (1) in subsection (c)(1), by striking ``Subject to 
        subsection (b),'' and inserting ``Subject to 
        subsections (b) and (d)(2),''; and
          (2) in subsection (d)--
                  (A) by inserting ``(1)'' after ``(d)''; and
                  (B) by adding at the end the following:
  ``(2)(A) The appropriate court of appeals shall have 
jurisdiction of appeals described in the first sentence of 
subsection (a) if the bankruptcy court, the district court, or 
the bankruptcy appellate panel involved, acting on its own 
motion or on the request of a party to the judgment, order, or 
decree described in such first sentence, or all the appellants 
and appellees (if any) acting jointly, certify that--
          ``(i) the judgment, order, or decree involves a 
        question of law as to which there is no controlling 
        decision of the court of appeals for the circuit or of 
        the Supreme Court of the United States, or involves a 
        matter of public importance;
          ``(ii) the judgment, order, or decree involves a 
        question of law requiring resolution of conflicting 
        decisions; or
          ``(iii) an immediate appeal from the judgment, order, 
        or decree may materially advance the progress of the 
        case or proceeding in which the appeal is taken;
and if the court of appeals authorizes the direct appeal of the 
judgment, order, or decree.
  ``(B) If the bankruptcy court, the district court, or the 
bankruptcy appellate panel--
          ``(i) on its own motion or on the request of a party, 
        determines that a circumstance specified in clause (i), 
        (ii), or (iii) of subparagraph (A) exists; or
          ``(ii) receives a request made by a majority of the 
        appellants and a majority of appellees (if any) to make 
        the certification described in subparagraph (A);
then the bankruptcy court, the district court, or the 
bankruptcy appellate panel shall make the certification 
described in subparagraph (A).
  ``(C) The parties may supplement the certification with a 
short statement of the basis for the certification.
  ``(D) An appeal under this paragraph does not stay any 
proceeding of the bankruptcy court, the district court, or the 
bankruptcy appellate panel from which the appeal is taken, 
unless the respective bankruptcy court, district court, or 
bankruptcy appellate panel, or the court of appeals in which 
the appeal in pending, issues a stay of such proceeding pending 
the appeal.
  ``(E) Any request under subparagraph (B) for certification 
shall be made not later than 60 days after the entry of the 
judgment, order, or decree.''.
  (b) Procedural Rules.--
          (1) Temporary application.--A provision of this 
        subsection shall apply to appeals under section 
        158(d)(2) of title 28, United States Code, until a rule 
        of practice and procedure relating to such provision 
        and such appeals is promulgated or amended under 
        chapter 131 of such title.
          (2) Certification.--A district court, a bankruptcy 
        court, or a bankruptcy appellate panel may make a 
        certification under section 158(d)(2) of title 28, 
        United States Code, only with respect to matters 
        pending in the respective bankruptcy court, district 
        court, or bankruptcy appellate panel.
          (3) Procedure.--Subject to any other provision of 
        this subsection, an appeal authorized by the court of 
        appeals under section 158(d)(2)(A) of title 28, United 
        States Code, shall be taken in the manner prescribed in 
        subdivisions (a)(1), (b), (c), and (d) of rule 5 of the 
        Federal Rules of Appellate Procedure. For purposes of 
        subdivision (a)(1) of rule 5--
                  (A) a reference in such subdivision to a 
                district court shall be deemed to include a 
                reference to a bankruptcy court and a 
                bankruptcy appellate panel, as appropriate; and
                  (B) a reference in such subdivision to the 
                parties requesting permission to appeal to be 
                served with the petition shall be deemed to 
                include a reference to the parties to the 
                judgment, order, or decree from which the 
                appeal is taken.
          (4) Filing of petition with attachment.--A petition 
        requesting permission to appeal, that is based on a 
        certification made under subparagraph (A) or (B) of 
        section 158(d)(2) shall--
                  (A) be filed with the circuit clerk not later 
                than 10 days after the certification is entered 
                on the docket of the bankruptcy court, the 
                district court, or the bankruptcy appellate 
                panel from which the appeal is taken; and
                  (B) have attached a copy of such 
                certification.
          (5) References in rule 5.--For purposes of rule 5 of 
        the Federal Rules of Appellate Procedure--
                  (A) a reference in such rule to a district 
                court shall be deemed to include a reference to 
                a bankruptcy court and to a bankruptcy 
                appellate panel; and
                  (B) a reference in such rule to a district 
                clerk shall be deemed to include a reference to 
                a clerk of a bankruptcy court and to a clerk of 
                a bankruptcy appellate panel.
          (6) Application of rules.--The Federal Rules of 
        Appellate Procedure shall apply in the courts of 
        appeals with respect to appeals authorized under 
        section 158(d)(2)(A), to the extent relevant and as if 
        such appeals were taken from final judgments, orders, 
        or decrees of the district courts or bankruptcy 
        appellate panels exercising appellate jurisdiction 
        under subsection (a) or (b) of section 158 of title 28, 
        United States Code.

SEC. 1134. INVOLUNTARY CASES.

  (a) Amendments.--Section 303 of title 11, United States Code, 
is amended--
          (1) in subsection (b)(1), by--
                  (A) inserting ``as to liability or amount'' 
                after ``bona fide dispute''; and
                  (B) striking ``if such claims'' and inserting 
                ``if such noncontingent, undisputed claims''; 
                and
          (2) in subsection (h)(1), by inserting ``as to 
        liability or amount'' before the semicolon at the end.
  (b) Effective Date; Application of Amendments.--This section 
and the amendments made by this section shall take effect on 
the date of the enactment of this Act and shall not apply with 
respect to cases commenced under title 11 of the United States 
Code before such date.

SEC. 1135. FEDERAL ELECTION LAW FINES AND PENALTIES AS NONDISCHARGEABLE 
                    DEBT.

  Section 523(a) of title 11, United States Code, as amended by 
section 314, is amended by inserting after paragraph (14A) the 
following:
          ``(14B) incurred to pay fines or penalties imposed 
        under Federal election law;''.

                 TITLE XIII--CONSUMER CREDIT DISCLOSURE

SEC. 1301. ENHANCED DISCLOSURES UNDER AN OPEN END CREDIT PLAN.

  (a) Amendments to the Truth in Lending Act.--
          (1) Enhanced disclosure of repayment terms.--
                  (A) In general.--Section 127(b) of the Truth 
                in Lending Act (15 U.S.C. 1637(b)) is amended 
                by adding at the end the following:
          ``(11)(A) In a clear and conspicuous manner, 
        repayment information that would apply to the 
        outstanding balance of the consumer under the credit 
        plan, including--
                  ``(i) the required minimum monthly payment on 
                that balance, represented as both a dollar 
                figure and a percentage of that balance;
                  ``(ii) the number of months (rounded to the 
                nearest month) that it would take to pay the 
                entire amount of that current balance if the 
                consumer pays only the required minimum monthly 
                payments and if no further advances are made;
                  ``(iii) the total cost to the consumer, 
                including interest and principal payments, of 
                paying that balance in full if the consumer 
                pays only the required minimum monthly payments 
                and if no further advances are made; and
                  ``(iv) the following statement: `If your 
                current rate is a temporary introductory rate, 
                your total costs may be higher.'.
          ``(B) In making the disclosures under subparagraph 
        (A) the creditor shall apply the annual interest rate 
        that applies to that balance with respect to the 
        current billing cycle for that consumer in effect on 
        the date on which the disclosure is made.''.
                  (B) Publication of model forms.--Not later 
                than 180 days after the date of enactment of 
                this Act, the Board of Governors of the Federal 
                Reserve System shall publish model disclosure 
                forms in accordance with section 195 of the 
                Truth in Lending Act for the purpose of 
                compliance with section 127(b)(11) of the Truth 
                in Lending Act, as added by this paragraph.
                  (C) Civil liability.--Section 130(a) of the 
                Truth in Lending Act (15 U.S.C. 1640(a)) is 
                amended, in the undesignated paragraph 
                following paragraph (4), by striking the second 
                sentence and inserting the following: ``In 
                connection with the disclosures referred to in 
                subsections (a) and (b) of section 1637 of this 
                title, a creditor shall have a liability 
                determined under paragraph (2) only for failing 
                to comply with the requirements of section 
                1635, 1637(a), or of paragraph (4), (5), (6), 
                (7), (8), (9), (10), or (11) of section 1637(b) 
                or for failing to comply with disclosure 
                requirements under State law for any term or 
                item that the Board has determined to be 
                substantially the same in meaning under section 
                1610(a)(2) as any of the terms or items 
                referred to in section 1637(a), paragraph (4), 
                (5), (6), (7), (8), (9), (10), or (11) of 
                section 1637(b) of this title.''.
          (2) Disclosures in connection with solicitations.--
                  (A) In general.--Section 127(c)(1)(B) of the 
                Truth in Lending Act (15 U.S.C. 1637(c)(1)(B)) 
                is amended by adding the following:
                          ``(iv) Credit worksheet.--An easily 
                        understandable credit worksheet 
                        designed to aid consumers in 
                        determining their ability to assume 
                        more debt, including consideration of 
                        the personal expenses of the consumer 
                        and a simple formula for the consumer 
                        to determine whether the assumption of 
                        additional debt is advisable.
                          ``(v) Basis of preapproval.--In any 
                        case in which the application or 
                        solicitation states that the consumer 
                        has been preapproved for an account 
                        under an open end consumer credit plan, 
                        the following statement must appear in 
                        a clear and conspicuous manner: `Your 
                        preapproval for this credit card does 
                        not mean that we have reviewed your 
                        individual financial circumstances. You 
                        should review your own budget before 
                        accepting this offer of credit.'.
                          ``(vi) Availability of credit 
                        report.--That the consumer is entitled 
                        to a copy of his or her credit report 
                        in accordance with the Fair Credit 
                        Reporting Act.''.
                  (B) Publication of model forms.--Not later 
                than 180 days after the date of enactment of 
                this Act, the Board of Governors of the Federal 
                Reserve System shall publish model disclosure 
                forms in accordance with section 195 of the 
                Truth in Lending Act for the purpose of 
                compliance with section 127(c)(1)(B) of the 
                Truth in Lending Act, as amended by this 
                paragraph.
  (b) Effective Date.--The provisions of this section shall 
apply with respect to cases commenced under title 11, United 
States Code, on or after the date of the enactment of this Act.

SEC. 1302. ENHANCED DISCLOSURE FOR CREDIT EXTENSIONS SECURED BY A 
                    DWELLING.

  (a) Open End Credit Extensions.--
          (1) Credit applications.--Section 127A(a)(13) of the 
        Truth in Lending Act (15 U.S.C. 1637a(a)(13)) is 
        amended--
                  (A) by striking ``consultation of tax 
                adviser.--A statement that the'' and inserting 
                the following: ``tax deductibility.--A 
                statement that--
                  ``(A) the''; and
                  (B) by striking the period at the end and 
                inserting the following: ``; and
                  ``(B) in any case in which the extension of 
                credit exceeds the fair market value (as 
                defined under the Internal Revenue Code of 
                1986) of the dwelling, the interest on the 
                portion of the credit extension that is greater 
                than the fair market value of the dwelling is 
                not tax deductible for Federal income tax 
                purposes.''.
          (2) Credit advertisements.--Section 147(b) of the 
        Truth in Lending Act (15 U.S.C. 1665b(b)) is amended--
                  (A) by striking ``If any'' and inserting the 
                following:
          ``(1) In general.--If any''; and
                  (B) by adding at the end the following:
          ``(2) Credit in excess of fair market value.--Each 
        advertisement described in subsection (a) that relates 
        to an extension of credit that may exceed the fair 
        market value of the dwelling, and which advertisement 
        is disseminated in paper form to the public or through 
        the Internet, as opposed to by radio or television, 
        shall include a clear and conspicuous statement that--
                  ``(A) the interest on the portion of the 
                credit extension that is greater than the fair 
                market value of the dwelling is not tax 
                deductible for Federal income tax purposes; and
                  ``(B) the consumer should consult a tax 
                adviser for further information regarding the 
                deductibility of interest and charges.''.
  (b) Non-Open End Credit Extensions.--
          (1) Credit applications.--Section 128 of the Truth in 
        Lending Act (15 U.S.C. 1638) is amended--
                  (A) in subsection (a), by adding at the end 
                the following:
          ``(15) In the case of a consumer credit transaction 
        that is secured by the principal dwelling of the 
        consumer, in which the extension of credit may exceed 
        the fair market value of the dwelling, a clear and 
        conspicuous statement that--
                  ``(A) the interest on the portion of the 
                credit extension that is greater than the fair 
                market value of the dwelling is not tax 
                deductible for Federal income tax purposes; and
                  ``(B) the consumer should consult a tax 
                adviser for further information regarding the 
                deductibility of interest and charges.''; and
                  (B) in subsection (b), by adding at the end 
                the following:
  ``(3) In the case of a credit transaction described in 
paragraph (15) of subsection (a), disclosures required by that 
paragraph shall be made to the consumer at the time of 
application for such extension of credit.''.
          (2) Credit advertisements.--Section 144 of the Truth 
        in Lending Act (15 U.S.C. 1664) is amended by adding at 
        the end the following:
  ``(e) Each advertisement to which this section applies that 
relates to a consumer credit transaction that is secured by the 
principal dwelling of a consumer in which the extension of 
credit may exceed the fair market value of the dwelling, and 
which advertisement is disseminated in paper form to the public 
or through the Internet, as opposed to by radio or television, 
shall clearly and conspicuously state that--
          ``(1) the interest on the portion of the credit 
        extension that is greater than the fair market value of 
        the dwelling is not tax deductible for Federal income 
        tax purposes; and
          ``(2) the consumer should consult a tax adviser for 
        further information regarding the deductibility of 
        interest and charges.''.
  (c) Regulatory Implementation.--
          (1) In general.--The Board shall promulgate 
        regulations implementing the amendments made by this 
        section.
          (2) Effective date.--Regulations issued under 
        paragraph (1) shall not take effect until the later 
        of--
                  (A) 12 months after the date of enactment of 
                this Act; or
                  (B) 12 months after the date of publication 
                of such final regulations by the Board.

SEC. 1303. DISCLOSURES RELATED TO ``INTRODUCTORY RATES''.

  (a) Introductory Rate Disclosures.--Section 127(c) of the 
Truth in Lending Act (15 U.S.C. 1637(c)) is amended by adding 
at the end the following:
          ``(6) Additional notice concerning `introductory 
        rates'.--
                  ``(A) In general.--Except as provided in 
                subparagraph (B), an application or 
                solicitation to open a credit card account and 
                all promotional materials accompanying such 
                application or solicitation for which a 
                disclosure is required under paragraph (1), and 
                that offers a temporary annual percentage rate 
                of interest, shall--
                          ``(i) use the term `introductory' in 
                        immediate proximity to each listing of 
                        the temporary annual percentage rate 
                        applicable to such account, which term 
                        shall appear clearly and conspicuously;
                          ``(ii) if the annual percentage rate 
                        of interest that will apply after the 
                        end of the temporary rate period will 
                        be a fixed rate, state in a clear and 
                        conspicuous manner in a prominent 
                        location closely proximate to the first 
                        listing of the temporary annual 
                        percentage rate (other than a listing 
                        of the temporary annual percentage rate 
                        in the tabular format described in 
                        section 122(c)), the time period in 
                        which the introductory period will end 
                        and the annual percentage rate that 
                        will apply after the end of the 
                        introductory period; and
                          ``(iii) if the annual percentage rate 
                        that will apply after the end of the 
                        temporary rate period will vary in 
                        accordance with an index, state in a 
                        clear and conspicuous manner in a 
                        prominent location closely proximate to 
                        the first listing of the temporary 
                        annual percentage rate (other than a 
                        listing in the tabular format 
                        prescribed by section 122(c)), the time 
                        period in which the introductory period 
                        will end and the rate that will apply 
                        after that, based on an annual 
                        percentage rate that was in effect 
                        within 60 days before the date of 
                        mailing the application or 
                        solicitation.
                  ``(B) Exception.--Clauses (ii) and (iii) of 
                subparagraph (A) do not apply with respect to 
                any listing of a temporary annual percentage 
                rate on an envelope or other enclosure in which 
                an application or solicitation to open a credit 
                card account is mailed.
                  ``(C) Conditions for introductory rates.--An 
                application or solicitation to open a credit 
                card account for which a disclosure is required 
                under paragraph (1), and that offers a 
                temporary annual percentage rate of interest 
                shall, if that rate of interest is revocable 
                under any circumstance or upon any event, 
                clearly and conspicuously disclose, in a 
                prominent manner on or with such application or 
                solicitation--
                          ``(i) a general description of the 
                        circumstances that may result in the 
                        revocation of the temporary annual 
                        percentage rate; and
                          ``(ii) if the annual percentage rate 
                        that will apply upon the revocation of 
                        the temporary annual percentage rate--
                                  ``(I) will be a fixed rate, 
                                the annual percentage rate that 
                                will apply upon the revocation 
                                of the temporary annual 
                                percentage rate; or
                                  ``(II) will vary in 
                                accordance with an index, the 
                                rate that will apply after the 
                                temporary rate, based on an 
                                annual percentage rate that was 
                                in effect within 60 days before 
                                the date of mailing the 
                                application or solicitation.
                  ``(D) Definitions.--In this paragraph--
                          ``(i) the terms `temporary annual 
                        percentage rate of interest' and 
                        `temporary annual percentage rate' mean 
                        any rate of interest applicable to a 
                        credit card account for an introductory 
                        period of less than 1 year, if that 
                        rate is less than an annual percentage 
                        rate that was in effect within 60 days 
                        before the date of mailing the 
                        application or solicitation; and
                          ``(ii) the term `introductory period' 
                        means the maximum time period for which 
                        the temporary annual percentage rate 
                        may be applicable.
                  ``(E) Relation to other disclosure 
                requirements.--Nothing in this paragraph may be 
                construed to supersede subsection (a) of 
                section 122, or any disclosure required by 
                paragraph (1) or any other provision of this 
                subsection.''.
  (b) Regulatory Implementation.--
          (1) In general.--The Board shall promulgate 
        regulations implementing the requirements of section 
        127(c)(6) of the Truth in Lending Act, as added by this 
        section.
          (2) Effective date.--Section 127(c)(6) of the Truth 
        in Lending Act, as added by this section, and 
        regulations issued under paragraph (1) of this 
        subsection shall not take effect until the later of--
                  (A) 12 months after the date of enactment of 
                this Act; or
                  (B) 12 months after the date of publication 
                of such final regulations by the Board.

SEC. 1304. INTERNET-BASED CREDIT CARD SOLICITATIONS.

  (a) Internet-Based Solicitations.--Section 127(c) of the 
Truth in Lending Act (15 U.S.C. 1637(c)) is amended by adding 
at the end the following:
          ``(7) Internet-based solicitations.--
                  ``(A) In general.--In any solicitation to 
                open a credit card account for any person under 
                an open end consumer credit plan using the 
                Internet or other interactive computer service, 
                the person making the solicitation shall 
                clearly and conspicuously disclose--
                          ``(i) the information described in 
                        subparagraphs (A) and (B) of paragraph 
                        (1); and
                          ``(ii) the information described in 
                        paragraph (6).
                  ``(B) Form of disclosure.--The disclosures 
                required by subparagraph (A) shall be--
                          ``(i) readily accessible to consumers 
                        in close proximity to the solicitation 
                        to open a credit card account; and
                          ``(ii) updated regularly to reflect 
                        the current policies, terms, and fee 
                        amounts applicable to the credit card 
                        account.
                  ``(C) Definitions.--For purposes of this 
                paragraph--
                          ``(i) the term `Internet' means the 
                        international computer network of both 
                        Federal and non-Federal interoperable 
                        packet switched data networks; and
                          ``(ii) the term `interactive computer 
                        service' means any information service, 
                        system, or access software provider 
                        that provides or enables computer 
                        access by multiple users to a computer 
                        server, including specifically a 
                        service or system that provides access 
                        to the Internet and such systems 
                        operated or services offered by 
                        libraries or educational 
                        institutions.''.
  (b) Regulatory Implementation.--
          (1) In general.--The Board shall promulgate 
        regulations implementing the requirements of section 
        127(c)(7) of the Truth in Lending Act, as added by this 
        section.
          (2) Effective date.--The amendment made by subsection 
        (a) and the regulations issued under paragraph (1) of 
        this subsection shall not take effect until the later 
        of--
                  (A) 12 months after the date of enactment of 
                this Act; or
                  (B) 12 months after the date of publication 
                of such final regulations by the Board.

SEC. 1305. DISCLOSURES RELATED TO LATE PAYMENT DEADLINES AND PENALTIES.

  (a) Disclosures Related to Late Payment Deadlines and 
Penalties.--Section 127(b) of the Truth in Lending Act (15 
U.S.C. 1637(b)) is amended by adding at the end the following:
          ``(12) If a late payment fee is to be imposed due to 
        the failure of the obligor to make payment on or before 
        a required payment due date, the following shall be 
        stated clearly and conspicuously on the billing 
        statement:
                  ``(A) The date on which that payment is due 
                or, if different, the earliest date on which a 
                late payment fee may be charged.
                  ``(B) The amount of the late payment fee to 
                be imposed if payment is made after such 
                date.''.
  (b) Regulatory Implementation.--
          (1) In general.--The Board shall promulgate 
        regulations implementing the requirements of section 
        127(b)(12) of the Truth in Lending Act, as added by 
        this section.
          (2) Effective date.--The amendment made by subsection 
        (a) and regulations issued under paragraph (1) of this 
        subsection shall not take effect until the later of--
                  (A) 12 months after the date of enactment of 
                this Act; or
                  (B) 12 months after the date of publication 
                of such final regulations by the Board.

SEC. 1306. PROHIBITION ON CERTAIN ACTIONS FOR FAILURE TO INCUR FINANCE 
                    CHARGES.

  (a) Prohibition on Certain Actions for Failure To Incur 
Finance Charges.--Section 127 of the Truth in Lending Act (15 
U.S.C. 1637) is amended by adding at the end the following:
  ``(h) Prohibition on Certain Actions for Failure To Incur 
Finance Charges.--A creditor of an account under an open end 
consumer credit plan may not terminate an account prior to its 
expiration date solely because the consumer has not incurred 
finance charges on the account. Nothing in this subsection 
shall prohibit a creditor from terminating an account for 
inactivity in 3 or more consecutive months.''.
  (b) Regulatory Implementation.--
          (1) In general.--The Board shall promulgate 
        regulations implementing the requirements of section 
        127(h) of the Truth in Lending Act, as added by this 
        section.
          (2) Effective date.--The amendment made by subsection 
        (a) and regulations issued under paragraph (1) of this 
        subsection shall not take effect until the later of--
                  (A) 12 months after the date of enactment of 
                this Act; or
                  (B) 12 months after the date of publication 
                of such final regulations by the Board.

SEC. 1307. DUAL USE DEBIT CARD.

  (a) Report.--The Board may conduct a study of, and present to 
Congress a report containing its analysis of, consumer 
protections under existing law to limit the liability of 
consumers for unauthorized use of a debit card or similar 
access device. Such report, if submitted, shall include 
recommendations for legislative initiatives, if any, of the 
Board, based on its findings.
  (b) Considerations.--In preparing a report under subsection 
(a), the Board may include--
          (1) the extent to which section 909 of the Electronic 
        Fund Transfer Act (15 U.S.C. 1693g), as in effect at 
        the time of the report, and the implementing 
        regulations promulgated by the Board to carry out that 
        section provide adequate unauthorized use liability 
        protection for consumers;
          (2) the extent to which any voluntary industry rules 
        have enhanced or may enhance the level of protection 
        afforded consumers in connection with such unauthorized 
        use liability; and
          (3) whether amendments to the Electronic Fund 
        Transfer Act (15 U.S.C. 1693 et seq.), or revisions to 
        regulations promulgated by the Board to carry out that 
        Act, are necessary to further address adequate 
        protection for consumers concerning unauthorized use 
        liability.

SEC. 1308. STUDY OF BANKRUPTCY IMPACT OF CREDIT EXTENDED TO DEPENDENT 
                    STUDENTS.

  (a) Study.--
          (1) In general.--The Board shall conduct a study 
        regarding the impact that the extension of credit 
        described in paragraph (2) has on the rate of cases 
        filed under title 11 of the United States Code.
          (2) Extension of credit.--The extension of credit 
        described in this paragraph is the extension of credit 
        to individuals who are--
                  (A) claimed as dependents for purposes of the 
                Internal Revenue Code of 1986; and
                  (B) enrolled within 1 year of successfully 
                completing all required secondary education 
                requirements and on a full-time basis, in 
                postsecondary educational institutions.
  (b) Report.--Not later than 1 year after the date of 
enactment of this Act, the Board shall submit to the Senate and 
the House of Representatives a report summarizing the results 
of the study conducted under subsection (a).

SEC. 1309. CLARIFICATION OF CLEAR AND CONSPICUOUS.

  (a) Regulations.--Not later than 6 months after the date of 
enactment of this Act, the Board, in consultation with the 
other Federal banking agencies (as defined in section 3 of the 
Federal Deposit Insurance Act), the National Credit Union 
Administration Board, and the Federal Trade Commission, shall 
promulgate regulations to provide guidance regarding the 
meaning of the term ``clear and conspicuous'', as used in 
subparagraphs (A), (B), and (C) of section 127(b)(11) and 
clauses (ii) and (iii) of section 127(c)(6)(A) of the Truth in 
Lending Act.
  (b) Examples.--Regulations promulgated under subsection (a) 
shall include examples of clear and conspicuous model 
disclosures for the purposes of disclosures required by the 
provisions of the Truth in Lending Act referred to in 
subsection (a).
  (c) Standards.--In promulgating regulations under this 
section, the Board shall ensure that the clear and conspicuous 
standard required for disclosures made under the provisions of 
the Truth in Lending Act referred to in subsection (a) can be 
implemented in a manner which results in disclosures which are 
reasonably understandable and designed to call attention to the 
nature and significance of the information in the notice.

SEC. 1310. ISSUANCE OF CREDIT CARDS TO UNDERAGE CONSUMERS.

  Section 127(c) of the Truth in Lending Act (15 U.S.C. 
1637(c)) is amended by inserting after paragraph (6) (as added 
by section 1303 of this title) the following new paragraph:
          ``(7) Applications from underage consumers.--
                  ``(A) Prohibition on issuance.--No credit 
                card may be issued to, or open end credit plan 
                established on behalf of, any consumer who has 
                not attained the age of 21, except in response 
                to a written request or application to the card 
                issuer that meets the requirements of 
                subparagraph (B).
                  ``(B) Application requirements.--An 
                application to open a credit card account by a 
                consumer who has not reached the age of 21 as 
                of the date of submission of the application 
                shall require--
                          ``(i) the signature of the parent or 
                        guardian of the consumer indicating 
                        joint liability for debts incurred by 
                        the consumer in connection with the 
                        account before the consumer has reached 
                        the age of 21; or
                          ``(ii) submission by the consumer of 
                        financial information indicating an 
                        independent means of repaying any 
                        obligation arising from the proposed 
                        extension of credit in connection with 
                        the account.''.

      TITLE XIV--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS

SEC. 1401. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

  (a) Effective Date.--Except as otherwise provided in this 
Act, this Act and the amendments made by this Act shall take 
effect 180 days after the date of enactment of this Act.
  (b) Application of Amendments.--
          (1) In general.--Except as otherwise provided in this 
        Act and paragraph (2), the amendments made by this Act 
        shall not apply with respect to cases commenced under 
        title 11, United States Code, before the effective date 
        of this Act.
        (2) Certain limitations applicable to debtors.--The 
        amendments made by sections 308, 322, and 330 shall 
        apply with respect to cases commenced under title 11, 
        United States Code, on or after the date of the 
        enactment of this Act.

                                
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