Title 11 — Bankruptcy
Chapter 1 — General Provisions
§ 101. Definitions
Statutory text
In this title the following definitions shall apply:
The term “accountant” means accountant authorized under applicable law to practice public accounting, and includes professional accounting association, corporation, or partnership, if so authorized.
The term “affiliate” means—
entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities—
in a fiduciary or agency capacity without sole discretionary power to vote such securities; or
solely to secure a debt, if such entity has not in fact exercised such power to vote;
corporation 20 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the debtor, or by an entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities—
in a fiduciary or agency capacity without sole discretionary power to vote such securities; or
solely to secure a debt, if such entity has not in fact exercised such power to vote;
person whose business is operated under a lease or operating agreement by a debtor, or person substantially all of whose property is operated under an operating agreement with the debtor; or
entity that operates the business or substantially all of the property of the debtor under a lease or operating agreement.
The term “assisted person” means any person whose debts consist primarily of consumer debts and the value of whose nonexempt property is less than $150,000.1
The term “attorney” means attorney, professional law association, corporation, or partnership, authorized under applicable law to practice law.
The term “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 case or proceeding on behalf of another or providing legal representation with respect to a case or proceeding under this title.
The term “claim” means—
right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured; or
right to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured, or unsecured.
The term “commodity broker” means futures commission merchant, foreign futures commission merchant, clearing organization, leverage transaction merchant, or commodity options dealer, as defined in section 761 of this title, with respect to which there is a customer, as defined in section 761 of this title.
The term “community claim” means claim that arose before the commencement of the case concerning the debtor for which property of the kind specified in section 541(a)(2) of this title is liable, whether or not there is any such property at the time of the commencement of the case.
The term “commercial fishing operation” means—
the catching or harvesting of fish, shrimp, lobsters, urchins, seaweed, shellfish, or other aquatic species or products of such species; or
for purposes of section 109 and chapter 12, aquaculture activities consisting of raising for market any species or product described in subparagraph (A).
The term “commercial fishing vessel” means a vessel used by a family fisherman to carry out a commercial fishing operation.
The term “consumer debt” means debt incurred by an individual primarily for a personal, family, or household purpose.
The term “corporation”—
includes—
association having a power or privilege that a private corporation, but not an individual or a partnership, possesses;
partnership association organized under a law that makes only the capital subscribed responsible for the debts of such association;
joint-stock company;
unincorporated company or association; or
business trust; but
does not include limited partnership.
The term “creditor” means—
entity that has a claim against the debtor that arose at the time of or before the order for relief concerning the debtor;
entity that has a claim against the estate of a kind specified in section 348(d), 502(f), 502(g), 502(h) or 502(i) of this title; or
entity that has a community claim.
The term “current monthly income”—
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 6-month period ending on—
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
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
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); and
excludes—
benefits received under the Social Security Act (42 U.S.C. 301 et seq.);
payments to victims of war crimes or crimes against humanity on account of their status as victims of such crimes;
payments to victims of international terrorism or domestic terrorism, as those terms are defined in section 2331 of title 18, on account of their status as victims of such terrorism; and
any monthly compensation, pension, pay, annuity, or allowance paid under title 10, 37, or 38 in connection with a disability, combat-related injury or disability, or death of a member of the uniformed services, except that any retired pay excluded under this subclause shall include retired pay paid under chapter 61 of title 10 only to the extent that such retired pay exceeds the amount of retired pay to which the debtor would otherwise be entitled if retired under any provision of title 10 other than chapter 61 of that title.
The term “custodian” means—
receiver or trustee of any of the property of the debtor, appointed in a case or proceeding not under this title;
assignee under a general assignment for the benefit of the debtor’s creditors; or
trustee, receiver, or agent under applicable law, or under a contract, that is appointed or authorized to take charge of property of the debtor for the purpose of enforcing a lien against such property, or for the purpose of general administration of such property for the benefit of the debtor’s creditors.
The term “debt” means liability on a claim.
The term “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—
any person who is an officer, director, employee, or agent of a person who provides such assistance or of the bankruptcy petition preparer;
a nonprofit organization that is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986;
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;
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
an author, publisher, distributor, or seller of works subject to copyright protection under title 17, when acting in such capacity.
The term “debtor” means person or municipality concerning which a case under this title has been commenced.
The term “debtor’s principal residence”—
means a residential structure if used as the principal residence by the debtor, including incidental property, without regard to whether that structure is attached to real property; and
includes an individual condominium or cooperative unit, a mobile or manufactured home, or trailer if used as the principal residence by the debtor.
The term “disinterested person” means a person that—
is not a creditor, an equity security holder, or an insider;
is not and was not, within 2 years before the date of the filing of the petition, a director, officer, or employee of the debtor; and
does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason.
The term “domestic support obligation” means a debt that accrues before, on, 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—
owed to or recoverable by—
a spouse, former spouse, or child of the debtor or such child’s parent, legal guardian, or responsible relative; or
a governmental unit;
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;
established or subject to establishment before, on, or after the date of the order for relief in a case under this title, by reason of applicable provisions of—
a separation agreement, divorce decree, or property settlement agreement;
an order of a court of record; or
a determination made in accordance with applicable nonbankruptcy law by a governmental unit; and
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.
The term “entity” includes person, estate, trust, governmental unit, and United States trustee.
The term “equity security” means—
share in a corporation, whether or not transferable or denominated “stock”, or similar security;
interest of a limited partner in a limited partnership; or
warrant or right, other than a right to convert, to purchase, sell, or subscribe to a share, security, or interest of a kind specified in subparagraph (A) or (B) of this paragraph.
The term “equity security holder” means holder of an equity security of the debtor.
The term “family farmer” means—
individual or individual and spouse engaged in a farming operation whose aggregate debts do not exceed $10,000,000 1 and not less than 50 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 farming operation), on the date the case is filed, arise out of a farming operation owned or operated by such individual or such individual and spouse, and such individual or such individual and spouse receive from such farming operation more than 50 percent of such individual’s or such individual and spouse’s gross income for—
the taxable year preceding; or
each of the 2d and 3d taxable years preceding;
the taxable year in which the case concerning such individual or such individual and spouse was filed; or
corporation or partnership in which more than 50 percent of the outstanding stock or equity is held by one family, or by one family and the relatives of the members of such family, and such family or such relatives conduct the farming operation, and
more than 80 percent of the value of its assets consists of assets related to the farming operation;
its aggregate debts do not exceed $10,000,000 1 and not less than 50 percent of its aggregate noncontingent, liquidated debts (excluding a debt for one 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 farming operation), on the date the case is filed, arise out of the farming operation owned or operated by such corporation or such partnership; and
if such corporation issues stock, such stock is not publicly traded.
The term “family farmer with regular annual income” means family farmer whose annual income is sufficiently stable and regular to enable such family farmer to make payments under a plan under chapter 12 of this title.
The term “family fisherman” means—
an individual or individual and spouse engaged in a commercial fishing operation—
whose aggregate debts do not exceed $1,500,000 1 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
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
a corporation or partnership—
in which more than 50 percent of the outstanding stock or equity is held by—
1 family that conducts the commercial fishing operation; or
1 family and the relatives of the members of such family, and such family or such relatives conduct the commercial fishing operation; and
more than 80 percent of the value of its assets consists of assets related to the commercial fishing operation;
its aggregate debts do not exceed $1,500,000 1 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
if such corporation issues stock, such stock is not publicly traded.
The term “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.
The term “farmer” means (except when such term appears in the term “family farmer”) person that received more than 80 percent of such person’s gross income during the taxable year of such person immediately preceding the taxable year of such person during which the case under this title concerning such person was commenced from a farming operation owned or operated by such person.
The term “farming operation” includes farming, tillage of the soil, dairy farming, ranching, production or raising of crops, poultry, or livestock, and production of poultry or livestock products in an unmanufactured state.
The term “farmout agreement” means a written agreement in which—
the owner of a right to drill, produce, or operate liquid or gaseous hydrocarbons on property agrees or has agreed to transfer or assign all or a part of such right to another entity; and
such other entity (either directly or through its agents or its assigns), as consideration, agrees to perform drilling, reworking, recompleting, testing, or similar or related operations, to develop or produce liquid or gaseous hydrocarbons on the property.
The term “Federal depository institutions regulatory agency” means—
with respect to an insured depository institution (as defined in section 3(c)(2) of the Federal Deposit Insurance Act) for which no conservator or receiver has been appointed, the appropriate Federal banking agency (as defined in section 3(q) of such Act);
with respect to an insured credit union (including an insured credit union for which the National Credit Union Administration has been appointed conservator or liquidating agent), the National Credit Union Administration;
with respect to any insured depository institution for which the Resolution Trust Corporation has been appointed conservator or receiver, the Resolution Trust Corporation; and
with respect to any insured depository institution for which the Federal Deposit Insurance Corporation has been appointed conservator or receiver, the Federal Deposit Insurance Corporation.
The term “financial institution” means—
a Federal reserve bank, or an entity that is a commercial or savings bank, industrial savings bank, savings and loan association, trust company, federally-insured credit union, or receiver, liquidating agent, or conservator for such entity and, when any such Federal reserve bank, receiver, liquidating agent, conservator or entity is acting as agent or custodian for a customer (whether or not a “customer”, as defined in section 741) in connection with a securities contract (as defined in section 741) such customer; or
in connection with a securities contract (as defined in section 741) an investment company registered under the Investment Company Act of 1940.
The term “financial participant” means—
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 (aggregated across counterparties) at such time or on any day during the 15-month period preceding the date of the filing of the petition, 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) at such time or on any day during the 15-month period preceding the date of the filing of the petition; or
a clearing organization (as defined in section 402 of the Federal Deposit Insurance Corporation Improvement Act of 1991).
The term “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.
The term “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.
The term “forward contract” means—
a contract (other than a commodity contract, as defined in section 761) for the purchase, sale, or transfer of a commodity, as defined in section 761(8) of this title, or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade, or product or byproduct thereof, with a maturity date more than two days after the date the contract is entered into, including, but not limited to, a repurchase or reverse repurchase transaction (whether or not such repurchase or reverse repurchase transaction is a “repurchase agreement”, as defined in this section) 2 consignment, lease, swap, hedge transaction, deposit, loan, option, allocated transaction, unallocated transaction, or any other similar agreement;
any combination of agreements or transactions referred to in subparagraphs (A) and (C);
any option to enter into an agreement or transaction referred to in subparagraph (A) or (B);
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
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.
The term “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.
The term “governmental unit” means United States; State; Commonwealth; District; Territory; municipality; foreign state; department, agency, or instrumentality of the United States (but not a United States trustee while serving as a trustee in a case under this title), a State, a Commonwealth, a District, a Territory, a municipality, or a foreign state; or other foreign or domestic government.
The term “health care business”—
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—
the diagnosis or treatment of injury, deformity, or disease; and
surgical, drug treatment, psychiatric, or obstetric care; and
includes—
any—
general or specialized hospital;
ancillary ambulatory, emergency, or surgical treatment facility;
hospice;
home health agency; and
other health care institution that is similar to an entity referred to in subclause (I), (II), (III), or (IV); and
any long-term care facility, including any—
skilled nursing facility;
intermediate care facility;
assisted living facility;
home for the aged;
domiciliary care facility; and
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.
The term “incidental property” means, with respect to a debtor’s principal residence—
property commonly conveyed with a principal residence in the area where the real property is located;
all easements, rights, appurtenances, fixtures, rents, royalties, mineral rights, oil or gas rights or profits, water rights, escrow funds, or insurance proceeds; and
all replacements or additions.
The term “indenture” means mortgage, deed of trust, or indenture, under which there is outstanding a security, other than a voting-trust certificate, constituting a claim against the debtor, a claim secured by a lien on any of the debtor’s property, or an equity security of the debtor.
The term “indenture trustee” means trustee under an indenture.
The term “individual with regular income” means individual whose income is sufficiently stable and regular to enable such individual to make payments under a plan under chapter 13 of this title, other than a stockbroker or a commodity broker.
The term “insider” includes—
if the debtor is an individual—
relative of the debtor or of a general partner of the debtor;
partnership in which the debtor is a general partner;
general partner of the debtor; or
corporation of which the debtor is a director, officer, or person in control;
if the debtor is a corporation—
director of the debtor;
officer of the debtor;
person in control of the debtor;
partnership in which the debtor is a general partner;
general partner of the debtor; or
relative of a general partner, director, officer, or person in control of the debtor;
if the debtor is a partnership—
general partner in the debtor;
relative of a general partner in, general partner of, or person in control of the debtor;
partnership in which the debtor is a general partner;
general partner of the debtor; or
person in control of the debtor;
if the debtor is a municipality, elected official of the debtor or relative of an elected official of the debtor;
affiliate, or insider of an affiliate as if such affiliate were the debtor; and
managing agent of the debtor.
The term “insolvent” means—
with reference to an entity other than a partnership and a municipality, financial condition such that the sum of such entity’s debts is greater than all of such entity’s property, at a fair valuation, exclusive of—
property transferred, concealed, or removed with intent to hinder, delay, or defraud such entity’s creditors; and
property that may be exempted from property of the estate under section 522 of this title;
with reference to a partnership, financial condition such that the sum of such partnership’s debts is greater than the aggregate of, at a fair valuation—
all of such partnership’s property, exclusive of property of the kind specified in subparagraph (A)(i) of this paragraph; and
the sum of the excess of the value of each general partner’s nonpartnership property, exclusive of property of the kind specified in subparagraph (A) of this paragraph, over such partner’s nonpartnership debts; and
with reference to a municipality, financial condition such that the municipality is—
generally not paying its debts as they become due unless such debts are the subject of a bona fide dispute; or
unable to pay its debts as they become due.
The term “institution-affiliated party”—
with respect to an insured depository institution (as defined in section 3(c)(2) of the Federal Deposit Insurance Act), has the meaning given it in section 3(u) of the Federal Deposit Insurance Act; and
with respect to an insured credit union, has the meaning given it in section 206(r) of the Federal Credit Union Act.
The term “insured credit union” has the meaning given it in section 101(7) of the Federal Credit Union Act.
The term “insured depository institution”—
has the meaning given it in section 3(c)(2) of the Federal Deposit Insurance Act; and
includes an insured credit union (except in the case of paragraphs (21B) and (33)(A) of this subsection).
The term “intellectual property” means—
trade secret;
invention, process, design, or plant protected under title 35;
patent application;
plant variety;
work of authorship protected under title 17; or
mask work protected under chapter 9 of title 17;
to the extent protected by applicable nonbankruptcy law.
The term “judicial lien” means lien obtained by judgment, levy, sequestration, or other legal or equitable process or proceeding.
The term “lien” means charge against or interest in property to secure payment of a debt or performance of an obligation.
The term “margin payment” means, for purposes of the forward contract provisions of this title, payment or deposit of cash, a security or other property, that is commonly known in the forward contract trade as original margin, initial margin, maintenance margin, or variation margin, including mark-to-market payments, or variation payments.
The term “master netting agreement”—
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
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).
The term “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.
The term “mask work” has the meaning given it in section 901(a)(2) of title 17.
The term “median family income” means for any year—
the median family income both calculated and reported by the Bureau of the Census in the then most recent year; and
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.
The term “municipality” means political subdivision or public agency or instrumentality of a State.
The term “patient” means any individual who obtains or receives services from a health care business.
The term “patient records” means any record relating to a patient, including a written document or a record recorded in a magnetic, optical, or other form of electronic medium.
The term “person” includes individual, partnership, and corporation, but does not include governmental unit, except that a governmental unit that—
acquires an asset from a person—
as a result of the operation of a loan guarantee agreement; or
as receiver or liquidating agent of a person;
is a guarantor of a pension benefit payable by or on behalf of the debtor or an affiliate of the debtor; or
is the legal or beneficial owner of an asset of—
an employee pension benefit plan that is a governmental plan, as defined in section 414(d) of the Internal Revenue Code of 1986; or
an eligible deferred compensation plan, as defined in section 457(b) of the Internal Revenue Code of 1986;
shall be considered, for purposes of section 1102 of this title, to be a person with respect to such asset or such benefit.
The term “personally identifiable information” means—
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—
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;
the geographical address of a physical place of residence of such individual;
an electronic address (including an e-mail address) of such individual;
a telephone number dedicated to contacting such individual at such physical place of residence;
a social security account number issued to such individual; or
the account number of a credit card issued to such individual; or
if identified in connection with 1 or more of the items of information specified in subparagraph (A)—
a birth date, the number of a certificate of birth or adoption, or a place of birth; or
any other information concerning an identified individual that, if disclosed, will result in contacting or identifying such individual physically or electronically.
The term “petition” means petition filed under section 301, 302, 303 and 3 1504 of this title, as the case may be, commencing a case under this title.
The term “production payment” means a term overriding royalty satisfiable in cash or in kind—
contingent on the production of a liquid or gaseous hydrocarbon from particular real property; and
from a specified volume, or a specified value, from the liquid or gaseous hydrocarbon produced from such property, and determined without regard to production costs.
The term “purchaser” means transferee of a voluntary transfer, and includes immediate or mediate transferee of such a transferee.
The term “railroad” means common carrier by railroad engaged in the transportation of individuals or property or owner of trackage facilities leased by such a common carrier.
The term “relative” means individual related by affinity or consanguinity within the third degree as determined by the common law, or individual in a step or adoptive relationship within such third degree.
The term “repo participant” means an entity that, at any time before the filing of the petition, has an outstanding repurchase agreement with the debtor.
The term “repurchase agreement” (which definition also applies to a reverse repurchase agreement)—
means—
an agreement, including related terms, which provides for the transfer of 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;
any combination of agreements or transactions referred to in clauses (i) and (iii);
an option to enter into an agreement or transaction referred to in clause (i) or (ii);
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
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
does not include a repurchase obligation under a participation in a commercial mortgage loan.
The term “securities clearing agency” means person that is registered as a clearing agency under section 17A of the Securities Exchange Act of 1934, or exempt from such registration under such section pursuant to an order of the Securities and Exchange Commission, or whose business is confined to the performance of functions of a clearing agency with respect to exempted securities, as defined in section 3(a)(12) of such Act for the purposes of such section 17A.
The term “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.
The term “security”—
includes—
note;
stock;
treasury stock;
bond;
debenture;
collateral trust certificate;
pre-organization certificate or subscription;
transferable share;
voting-trust certificate;
certificate of deposit;
certificate of deposit for security;
investment contract or certificate of interest or participation in a profit-sharing agreement or in an oil, gas, or mineral royalty or lease, if such contract or interest is required to be the subject of a registration statement filed with the Securities and Exchange Commission under the provisions of the Securities Act of 1933, or is exempt under section 3(b) of such Act from the requirement to file such a statement;
interest of a limited partner in a limited partnership;
other claim or interest commonly known as “security”; and
certificate of interest or participation in, temporary or interim certificate for, receipt for, or warrant or right to subscribe to or purchase or sell, a security; but
does not include—
currency, check, draft, bill of exchange, or bank letter of credit;
leverage transaction, as defined in section 761 of this title;
commodity futures contract or forward contract;
option, warrant, or right to subscribe to or purchase or sell a commodity futures contract;
option to purchase or sell a commodity;
contract or certificate of a kind specified in subparagraph (A)(xii) of this paragraph that is not required to be the subject of a registration statement filed with the Securities and Exchange Commission and is not exempt under section 3(b) of the Securities Act of 1933 from the requirement to file such a statement; or
debt or evidence of indebtedness for goods sold and delivered or services rendered.
The term “security agreement” means agreement that creates or provides for a security interest.
The term “security interest” means lien created by an agreement.
The term “settlement payment” means, for purposes of the forward contract provisions of this title, a preliminary settlement payment, a partial settlement payment, an interim settlement payment, a settlement payment on account, a final settlement payment, a net settlement payment, or any other similar payment commonly used in the forward contract trade.
The term “single asset real estate” means real property constituting a single property or project, other than residential real property with fewer than 4 residential units, which generates substantially all of the gross income of a debtor who is not a family farmer and on which no substantial business is being conducted by a debtor other than the business of operating the real property and activities incidental thereto.
The term “small business case” means a case filed under chapter 11 of this title in which the debtor is a small business debtor and has not elected that subchapter V of chapter 11 of this title shall apply.
The term “small business debtor”—
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 single asset real estate) that has aggregate noncontingent liquidated secured and unsecured debts as of the date of the filing of the petition or the date of the order for relief in an amount not more than $2,000,000 1 (excluding debts owed to 1 or more affiliates or insiders) not less than 50 percent of which arose from the commercial or business activities of the debtor; and
does not include—
any member of a group of affiliated debtors under this title that has aggregate noncontingent liquidated secured and unsecured debts in an amount greater than $2,000,000 1 (excluding debt owed to 1 or more affiliates or insiders);
any debtor that is a corporation subject to the reporting requirements under section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)); or
any debtor that is an affiliate of a corporation described in clause (ii).
The term “State” includes the District of Columbia and Puerto Rico, except for the purpose of defining who may be a debtor under chapter 9 of this title.
The term “statutory lien” means lien arising solely by force of a statute on specified circumstances or conditions, or lien of distress for rent, whether or not statutory, but does not include security interest or judicial lien, whether or not such interest or lien is provided by or is dependent on a statute and whether or not such interest or lien is made fully effective by statute.
The term “stockbroker” means person—
with respect to which there is a customer, as defined in section 741 of this title; and
that is engaged in the business of effecting transactions in securities—
for the account of others; or
with members of the general public, from or for such person’s own account.
The term “swap agreement”—
means—
any agreement, including the terms and conditions incorporated by reference in 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, precious metals, or other commodity 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 a commodity swap, option, future, or forward agreement;
a weather swap, option, future, or forward agreement;
an emissions swap, option, future, or forward agreement; or
an inflation swap, option, future, or forward agreement;
any agreement or transaction that is similar to any other agreement or transaction referred to in this paragraph and that—
is of a type that has been, is presently, or in the future becomes, the subject of recurrent dealings in the swap or other derivatives markets (including terms and conditions incorporated by reference therein); and
is a forward, swap, future, option, or spot transaction 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;
any combination of agreements or transactions referred to in this subparagraph;
any option to enter into an agreement or transaction referred to in this subparagraph;
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
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
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 Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act of 2000, the securities laws (as such term is defined in section 3(a)(47) of the Securities Exchange Act of 1934) and the Commodity Exchange Act.
The term “swap participant” means an entity that, at any time before the filing of the petition, has an outstanding swap agreement with the debtor.
4 The term “term overriding royalty” means an interest in liquid or gaseous hydrocarbons in place or to be produced from particular real property that entitles the owner thereof to a share of production, or the value thereof, for a term limited by time, quantity, or value realized.
The term “timeshare plan” means and shall include that interest purchased in any arrangement, plan, scheme, or similar device, but not including exchange programs, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, right to use agreement, or by any other means, whereby a purchaser, in exchange for consideration, receives a right to use accommodations, facilities, or recreational sites, whether improved or unimproved, for a specific period of time less than a full year during any given year, but not necessarily for consecutive years, and which extends for a period of more than three years. A “timeshare interest” is that interest purchased in a timeshare plan which grants the purchaser the right to use and occupy accommodations, facilities, or recreational sites, whether improved or unimproved, pursuant to a timeshare plan.
The term “transfer” means—
the creation of a lien;
the retention of title as a security interest;
the foreclosure of a debtor’s equity of redemption; or
each mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with—
property; or
an interest in property.
The term “uninsured State member bank” means a State member bank (as defined in section 3 of the Federal Deposit Insurance Act) the deposits of which are not insured by the Federal Deposit Insurance Corporation.
The term “United States”, when used in a geographical sense, includes all locations where the judicial jurisdiction of the United States extends, including territories and possessions of the United States.
Footnotes
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 95–598 · 92 Stat. 2549
Enacted · 11 U.S.C. § 101
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2549
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2549Pub. L. 97–222 § 1(a)(2) · 96 Stat. 235
Redesignated · 11 U.S.C. § 101(35)
Pub. L. 97–222, § 1(a)(2), added par. (35). Former par. (35) redesignated (36)
Source evidence
Code amendment note
Par. (35). Pub. L. 97–222, § 1(a)(2), added par. (35). Former par. (35) redesignated (36).Enacted provision · exact public law section
(1) by redesignating paragraphs (35), (36), (37), (38), (39), and (40) as paragraphs (36), (37), (38), (39), (40), and (41), respectively, andPub. L. 97–222 § 1(a)(1) · 96 Stat. 235
Redesignated · 11 U.S.C. § 101(36)
Pub. L. 97–222, § 1(a)(1), (b), (c), redesignated par. (35) as (36)
Substituted · 11 U.S.C. § 101(36)
Pub. L. 97–222, § 1(a)(1), (b), (c), substituted “is required to be the subject of a registration statement” for “is the subject of a registration statement” in subpar. (A)(xii)
Redesignated · 11 U.S.C. § 101(36)
Pub. L. 97–222, § 1(a)(1), (b), (c), substituted “forward contract” for “forward commodity contract” in subpar. (B)(iii). Former par. (36) redesignated (37)
Source evidence
Code amendment note
Par. (36). Pub. L. 97–222, § 1(a)(1), (b), (c), redesignated par. (35) as (36) and substituted “is required to be the subject of a registration statement” for “is the subject of a registration statement” in subpar. (A)(xii) and substituted “forward contract” for “forward commodity contract” in subpar. (B)(iii). Former par. (36) redesignated (37).Enacted provision · exact public law section
(1) by redesignating paragraphs (35), (36), (37), (38), (39), and (40) as paragraphs (36), (37), (38), (39), (40), and (41), respectively, andPub. L. 97–222 § 1(a)(1) · 96 Stat. 235
Redesignated · 11 U.S.C. § 101(37)(39)
Pub. L. 97–222, § 1(a)(1), redesignated pars. (36) to (38) as (37) to (39), respectively. Former par. (39) redesignated (40)
Source evidence
Code amendment note
Pars. (37) to (39). Pub. L. 97–222, § 1(a)(1), redesignated pars. (36) to (38) as (37) to (39), respectively. Former par. (39) redesignated (40).Enacted provision · exact public law section
(1) by redesignating paragraphs (35), (36), (37), (38), (39), and (40) as paragraphs (36), (37), (38), (39), (40), and (41), respectively, andPub. L. 97–222 § 1(a)(1) · 96 Stat. 235
Redesignated · 11 U.S.C. § 101(40); 11 U.S.C. § 101(41)
Pub. L. 97–222, § 1(a)(1), (d), redesignated former par. (39) as (40) and restructured its provisions by dividing the former introductory provisions into subpars. (A) and (B) and by redesignating former subpars. (A) and (B) as cls. (i) and (ii), respectively, of subpar. (B). Former par. (40) redesignated (41)
Source evidence
Code amendment note
Pars. (40), (41). Pub. L. 97–222, § 1(a)(1), (d), redesignated former par. (39) as (40) and restructured its provisions by dividing the former introductory provisions into subpars. (A) and (B) and by redesignating former subpars. (A) and (B) as cls. (i) and (ii), respectively, of subpar. (B). Former par. (40) redesignated (41).Enacted provision · exact public law section
(1) by redesignating paragraphs (35), (36), (37), (38), (39), and (40) as paragraphs (36), (37), (38), (39), (40), and (41), respectively, andPub. L. 98–353 § 421(a) · 98 Stat. 333
Struck · 11 U.S.C. § 101(2)(D)
Pub. L. 98–353, § 421(a), struck out “or all” after “business”
Source evidence
Code amendment note
Par. (2)(D). Pub. L. 98–353, § 421(a), struck out “or all” after “business”.Enacted provision · exact public law section
(a) Section 101(2)(D) of title 11 of the United States Code is amended by striking out “or all” after “business”.Pub. L. 98–353 § 421(b) · 98 Stat. 333
Substituted · 11 U.S.C. § 101(8)(B)
Pub. L. 98–353, § 421(b), substituted a semicolon for the colon at end of subpar. (B)
Source evidence
Code amendment note
Par. (8)(B). Pub. L. 98–353, § 421(b), substituted a semicolon for the colon at end of subpar. (B).Enacted provision · exact public law section
(b) Section 101(8)(B) of title 11 of the United States Code is amended by striking out the colon at the end thereof and inserting in lieu thereof a semicolon.Pub. L. 98–353 § 421(c) · 98 Stat. 333
Inserted · 11 U.S.C. § 101(9)(B)
Pub. L. 98–353, § 421(c), inserted reference to section 348(d)
Source evidence
Code amendment note
Par. (9)(B). Pub. L. 98–353, § 421(c), inserted reference to section 348(d).Enacted provision · exact public law section
(c) Section 101(9)(B) of title 11 of the United States Code is amended by inserting “348(d),” after “section”.Pub. L. 98–353 § 421(d) · 98 Stat. 333
Inserted · 11 U.S.C. § 101(14)
Pub. L. 98–353, § 421(d), inserted “and” after “trust,”
Source evidence
Code amendment note
Par. (14). Pub. L. 98–353, § 421(d), inserted “and” after “trust,”.Enacted provision · exact public law section
(d) Section 101(14) of title 11 of the United States Code is amended by inserting “and” after “trust,”.Pub. L. 98–353 § 421(j)(3) · 98 Stat. 333
Added · 11 U.S.C. § 101(19)(21)
Pub. L. 98–353, § 421(j)(3), (4), added par. (19)
Redesignated · 11 U.S.C. § 101(19)(21)
Pub. L. 98–353, § 421(j)(3), (4), redesignated former pars. (19), (20), and (21) as (20), (21), and (24), respectively
Source evidence
Code amendment note
Pars. (19) to (21). Pub. L. 98–353, § 421(j)(3), (4), added par. (19) and redesignated former pars. (19), (20), and (21) as (20), (21), and (24), respectively.Enacted provision · exact public law section
(3) by redesignating paragraphs (19) and (20) as paragraphs (20) and (21), respectively;Pub. L. 98–353 § 421(j)(2) · 98 Stat. 333
Added · 11 U.S.C. § 101(22); 11 U.S.C. § 101(23)
Pub. L. 98–353, § 421(j)(2), (5), added pars. (22) and (23)
Redesignated · 11 U.S.C. § 101(22); 11 U.S.C. § 101(23)
Pub. L. 98–353, § 421(j)(2), (5), redesignated former pars. (22) and (23) as (25) and (26), respectively
Source evidence
Code amendment note
Pars. (22), (23). Pub. L. 98–353, § 421(j)(2), (5), added pars. (22) and (23) and redesignated former pars. (22) and (23) as (25) and (26), respectively.Enacted provision · exact public law section
(2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively;Pub. L. 98–353 § 421(j)(2) · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(24)(26)
Pub. L. 98–353, § 421(j)(2), redesignated former pars. (21) to (23) as (24) to (26), respectively. Former pars. (24) to (26) redesignated (27) to (29), respectively
Source evidence
Code amendment note
Pars. (24) to (26). Pub. L. 98–353, § 421(j)(2), redesignated former pars. (21) to (23) as (24) to (26), respectively. Former pars. (24) to (26) redesignated (27) to (29), respectively.Enacted provision · exact public law section
(2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively;Pub. L. 98–353 § 421(e) · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(27)
Pub. L. 98–353, § 421(e), (j)(2), redesignated former par. (24) as (27)
Redesignated · 11 U.S.C. § 101(27)
Pub. L. 98–353, § 421(e), (j)(2), substituted “stockbroker” for “stock broker”. Former par. (27) redesignated (30)
Source evidence
Code amendment note
Par. (27). Pub. L. 98–353, § 421(e), (j)(2), redesignated former par. (24) as (27) and substituted “stockbroker” for “stock broker”. Former par. (27) redesignated (30).Enacted provision · exact public law section
(e) Section 101(24) of title 11 of the United States Code is amended by striking out “stock broker” and inserting in lieu thereof “stockbroker”Pub. L. 98–353 § 421(j)(2) · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(28)
Pub. L. 98–353, § 421(j)(2), redesignated former par. (25) as (28). Former par. (28) redesignated (31)
Source evidence
Code amendment note
Par. (28). Pub. L. 98–353, § 421(j)(2), redesignated former par. (25) as (28). Former par. (28) redesignated (31).Enacted provision · exact public law section
(2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively;Pub. L. 98–353 § 421(f) · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(29)
Pub. L. 98–353, § 421(f), (j)(2), redesignated former par. (26) as (29) and, in subpar. (B)(ii)
Redesignated · 11 U.S.C. § 101(29)
Pub. L. 98–353, § 421(f), (j)(2), substituted “nonpartnership” and “(A)” for “separate” and “(A)(ii)”, respectively, wherever appearing. Former par. (29) redesignated (32)
Source evidence
Code amendment note
Par. (29). Pub. L. 98–353, § 421(f), (j)(2), redesignated former par. (26) as (29) and, in subpar. (B)(ii), substituted “nonpartnership” and “(A)” for “separate” and “(A)(ii)”, respectively, wherever appearing. Former par. (29) redesignated (32).Enacted provision · exact public law section
(f) Section 101(26)(B)(ii) of title 11 of the United States Code is amended by— (1) striking out “separate” each place it appears and inserting in lieu thereof “nonpartnership”; and (2) striking out “(A)(ii) and inserting in lieu thereof “(A)”,Pub. L. 98–353 § 421(j)(2) · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(30)(32)
Pub. L. 98–353, § 421(j)(2), redesignated former pars. (27) to (29) as (30) to (32), respectively. Former pars. (30) to (32) redesignated (33) to (35), respectively
Source evidence
Code amendment note
Pars. (30) to (32). Pub. L. 98–353, § 421(j)(2), redesignated former pars. (27) to (29) as (30) to (32), respectively. Former pars. (30) to (32) redesignated (33) to (35), respectively.Enacted provision · exact public law section
(2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively;Pub. L. 98–353 § 421(g) · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(33)
Pub. L. 98–353, § 421(g), (j)(2), redesignated former par. (30) as (33)
Redesignated · 11 U.S.C. § 101(33)
Pub. L. 98–353, § 421(g), (j)(2), amended definition of “person” generally, thereby inserting proviso relating to consideration of certain governmental units as persons for purposes of section 1102 of this title. Former par. (33) redesignated (36)
Source evidence
Code amendment note
Par. (33). Pub. L. 98–353, § 421(g), (j)(2), redesignated former par. (30) as (33) and amended definition of “person” generally, thereby inserting proviso relating to consideration of certain governmental units as persons for purposes of section 1102 of this title. Former par. (33) redesignated (36).Enacted provision · exact public law section
(g) Section 101(30) of title 11 of the United States Code is amended to read as follows: (30) “person” includes individual, partnership, and corporation, but does not include governmental unit, Provided, however, That any governmental unit that acquires an asset from a person as a result of operation of a loan guarantee agreement, or as receiver or liquidating agent of a person, will be considered a person for purposes of section 1102 of this title.Pub. L. 98–353 § 421(j)(2) · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(34)
Pub. L. 98–353, § 421(j)(2), redesignated former par. (31) as (34). Former par. (34) redesignated (37)
Source evidence
Code amendment note
Par. (34). Pub. L. 98–353, § 421(j)(2), redesignated former par. (31) as (34). Former par. (34) redesignated (37).Enacted provision · exact public law section
(2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively;Pub. L. 98–353 § 421(j)(2) · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(35); 11 U.S.C. § 101(36)
Pub. L. 98–353, § 421(j)(2), redesignated former pars. (32) and (33) as (35) and (36), respectively. Former pars. (35) and (36), as added by Pub. L. 98–353, § 391(2)
Redesignated · 11 U.S.C. § 101(35); 11 U.S.C. § 101(36)
Pub. L. 98–353, § 421(j)(2), redesignated (38) and (39), respectively
Source evidence
Code amendment note
Pars. (35), (36). Pub. L. 98–353, § 421(j)(2), redesignated former pars. (32) and (33) as (35) and (36), respectively. Former pars. (35) and (36), as added by Pub. L. 98–353, § 391(2), redesignated (38) and (39), respectively.Enacted provision · exact public law section
(2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively;Pub. L. 98–353 § 391 · 98 Stat. 333
Added · 11 U.S.C. § 101(35); 11 U.S.C. § 101(36)
Pub. L. 98–353, § 391, added pars. (35) and (36)
Redesignated · 11 U.S.C. § 101(35); 11 U.S.C. § 101(36)
Pub. L. 98–353, § 391, redesignated former pars. (35) and (36) as (37) and (38) which were again redesignated as (40) and (41), respectively
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 98–353, § 391, added pars. (35) and (36), and redesignated former pars. (35) and (36) as (37) and (38) which were again redesignated as (40) and (41), respectively.Enacted provision · exact public law section
Sec. 391. Section 101 of title 11, United States Code, is amended— (1) by redesignating paragraphs (35), (36), (37), (38), (39), (40), and (41), as paragraphs (37), (38), (39), (40), (41), (42), and (43), respectively, and (2) by inserting after paragraph (34) the following new paragraphs: “(35) ‘repo participant’ means an entity that, on any day during the period beginning 90 days before the date of the filing of the petition, has an outstanding repurchase agreement with the debtor; “(36) ‘repurchase agreement’ (which definition also applies to Securities. a reverse repurchase agreement) means an agreement, including related terms, which provides for the transfer of certificates of deposit, eligible bankers’ acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, or securities with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, or securities as described above, at a date certain not later than one year after such transfers or on demand, against the transfer of funds;”.Pub. L. 98–353 § 421(j)(2) · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(37)
Pub. L. 98–353, § 421(j)(2), redesignated former par. (34) as (37). Former par. (37) redesignated successively as (39) and again as (42)
Source evidence
Code amendment note
Par. (37). Pub. L. 98–353, § 421(j)(2), redesignated former par. (34) as (37). Former par. (37) redesignated successively as (39) and again as (42).Enacted provision · exact public law section
(2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively;Pub. L. 98–353 title III · 98 Stat. 333
Added · 11 U.S.C. § 101(38)
Pub. L. 98–353, §§ 391(2), 421(j)(2), added par. (35)
Redesignated · 11 U.S.C. § 101(38)
Pub. L. 98–353, §§ 391(2), 421(j)(2), redesignated such par. (35) as (38). Former par. (38) redesignated successively as (40) and again as (43)
Source evidence
Code amendment note
Par. (38). Pub. L. 98–353, §§ 391(2), 421(j)(2), added par. (35) and redesignated such par. (35) as (38). Former par. (38) redesignated successively as (40) and again as (43).Enacted provision · exact public law
TITLE III— AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE Subtitle A— Consumer Credit Amendments Sec. 301. Section 109 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Notwithstanding any other provision of this section, no individual may be a debtor under this title who has been a debtor in a case pending under this title at any time in the preceding 180 days if— “(1) the case was dismissed by the court for willful failure of the debtor to abide by orders of the court, or to appear before the court in proper prosecution of the case; or “(2) the debtor requested and obtained the voluntary dismissal of the case following the filing of a request for relief from the automatic stay provided by section 362 of this title.”. Sec. 302. Section 342 of title 11, United States Code, is amended— (1) by inserting “(a)” before “There shall be given”, and (2) by adding at the end thereof the following new subsection: “(b) Prior to the commencement of a case under this title by an individual whose debts are primarily consumer debts, the clerk shall give written notice to such individual that indicates each chapter of this title under which such individual may proceed.”. Sec. 303. Section 349(a) of title 11, United States Code, is amended by inserting before the period at the end thereof nor does the dismissal of a case under this title prejudice the debtor with regard to the filing of a subsequent petition under this title, except as Supra. provided in section 109(f) of this title”. Sec. 304. Section 362 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(h) An individual injured by any willful violation of a stay provided by this section shall recover actual damages, including costs and attorneys’ fees, and, in appropriate circumstances, may recover punitive damages.”. Sec. 305. Section 521 of title 11, United States Code, is amended— (1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, (2) in paragraph (1) by inserting “a schedule of current income and current expenditures,” after “liabilities,”, and (3) by inserting after paragraph (1) the following new paragraph: “(2) if an individual debtor’s schedule of assets and liabilities includes consumer debts which are secured by property of the estate— “(A) within thirty days after the date of the filing of a petition under chapter 7 of this title or on or before the date of the meeting of creditors, whichever is earlier, or within such additional time as the court, for cause, within such period fixes, the debtor shall file with the clerk a statement of his intention with respect to the retention or surrender of such property and, if applicable, specifying that such property is claimed as exempt, that the debtor intends to redeem such property, or that the debtor intends to reaffirm debts secured by such property; “(B) within forty-five days after the filing of a notice of intent under this section, or within such additional time as the court, for cause, within such forty-five day period fixes, the debtor shall perform his intention with respect to such property, as specified by subparagraph (A) of this paragraph; and “(C) nothing in subparagraphs (A) and (B) of this paragraph shall alter the debtor’s or the trustee’s rights with regard to such property under this title;”. Sec. 306. (a) Section 522(b) of title 11, United States Code, is amended by striking out “Notwithstanding” and all that follows through “either—” and inserting in lieu thereof the following: “Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (1) or, in the alternative, paragraph (2) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Bankruptcy Rules, one 11 USC app. debtor may not elect to exempt property listed in paragraph (1) and the other debtor elect to exempt property listed in paragraph (2) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (1), where such election is permitted under the law of the jurisdiction where the case is filed. Such property is—”. (b) Section 522(d)(3) of title 11, United States Code, is amended by inserting “or $4,000 in aggregate value” after “item”. (c) Section 522(d)(5) of title 11, United States Code, is amended to read as follows: “(5) The debtor’s aggregate interest in any property, not to exceed in value $400 plus up to $3,750 of any unused amount of the exemption provided under paragraph (1) of this subsection”. (d) Section 522(m) of title 11, United States Code, is amended to read as follows: “(m) Subject to the limitation in subsection (b), this section shall apply separately with respect to each debtor in a joint case.”. Sec. 307. (a) Section 523(a)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “or” at the end thereof, (2) in subparagraph (B) by inserting “or” at the end thereof, and (3) by adding at the end thereof the following new subparagraph: “(C) for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $500 for ‘luxury goods or services’ incurred by an individual debtor on or within forty days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within twenty days before the order for relief under this title, are presumed to be nondischargeable; ‘luxury goods or services’ do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.);”. (b) Section 523(d) of title 11, United States Code, is amended to read as follows: “(d) If a creditor requests a determination of dischargeability of a consumer debt under subsection (a)(2) of this section, and such debt is discharged, the court shall grant judgment in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding if the court finds that the position of the creditor was not substantially justified, except that the court shall not award such costs and fees if special circumstances would make the award unjust.”. Sec. 308. (a) Section 524(a)(2) of title 11, United States Code, is amended by striking out “or from property of the debtor,”. (b) Section 524(c) of title 11, United States Code, is amended— (1) by striking out paragraph (2), (2) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively, and (3) by inserting after paragraph (1) the following new paragraphs: “(2) such agreement contains a clear and conspicuous statement which advises the debtor that the agreement may be rescinded at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of rescission to the holder of such claim; “(3) such agreement has been filed with the court and, if applicable, accompanied by a declaration or an affidavit of the attorney that represented the debtor during the course of negotiating an agreement under this subsection, which states that such agreement— “(A) represents a fully informed and voluntary agreement by the debtor; and “(B) does not impose an undue hardship on the debtor or a dependent of the debtor; “(4) the debtor has not rescinded such agreement at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of recission to the holder of such claim;” and (4) by amending paragraph (6), as so redesignated, to read as follows: “(6) (A) in a case concerning an individual who was not represented by an attorney during the course of negotiating an agreement under this subsection, the court approves such agreement as— “(i) not imposing an undue hardship on the debtor or a dependent of the debtor; and “(ii) in the best interest of the debtor. “(B) Subparagraph (A) shall not apply to the extent that such debt is a consumer debt secured by real property.”. (c) Section 524(d)(2) of title 11, United States Code, is amended by striking out “subsection (c)(4)” and inserting in lieu thereof “subsection (c)(6)”. (e) Section 524 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Nothing contained in subsection (c) or (d) of this section prevents a debtor from voluntarily repaying any debt.”. Sec. 309. Section 525 of title 11, United States Code, is amended— (1) by inserting “(a)” before “Except”, (2) by inserting “the” before “Perishable”, and (3) by adding at the end thereof the following new subsection: Employment and unemployment. Discrimination, prohibition. 11 USC note prec. 101. “(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt— “(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act; “(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or “(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.”. Sec. 310. Section 547(c) of title 11, United States Code, is amended— (1) in paragraph (5) by striking out “or” at the end thereof, (2) in paragraph (6) by striking out the period at the end thereof and inserting in lieu thereof “; or”, and (3) by adding at the end thereof the following new paragraph: “(7) if, in a case filed by an individual debtor whose debts are primarily consumer debts, the aggregate value of all property that constitutes or is affected by such transfer is less than $600.”. Sec. 311. (a) Section 704 of title 11, United States Code, is amended— (1) by redesignating paragraphs (3), (4), (5), (6), (7), and (8) as paragraphs (4), (5), (6), (7), (8), and (9), respectively, and (2) by inserting after paragraph (2) the following new paragraph: “(3) ensure that the debtor shall perform his intention as specified in section 521(2)(B) of this title;”. Ante, p. 352. (b) (1) Section 1106(a)(1) of title 11, United States Code, is amended by striking out “704(4), 704(6), 704(7), and 704(8)” and inserting in lieu thereof “704(5), 704(7), 704(8), and 704(9)”. (2) Section 1304(c) of title 11, United States Code, is amended by striking out “section 704(7)” and inserting in lieu thereof “section 704(8)”. (3) Section 15103(f) of title 11, United States Code, is amended by striking out “704(8),” and inserting in lieu thereof “704(9),”. (4) Section 151301(b)(1) of title 11, United States Code, is amended 11 USC 151302. by striking out “and 704(8)” and inserting in lieu thereof “, 704(7), and 704(9)”. Sec. 312. Section 707 of title 11, United States Code, is amended— (1) by inserting “(a)” before “The court may” and (2) by adding at the end thereof the following new subsection: “(b) After notice and a hearing, the court, on its own motion and not at the request or suggestion of any party in interest, may dismiss a case filed by an individual debtor under this chapter whose debts are primarily consumer debts if it finds that the granting of relief would be a substantial abuse of the provisions of this chapter. There shall be a presumption in favor of granting the relief requested by the debtor.”. Sec. 313. Section 1301 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(d) Twenty days after the filing of a request under subsection (c)(2) of this section for relief from the stay provided by subsection (a) of this section, such stay is terminated with respect to the party in interest making such request, unless the debtor or any individual that is liable on such debt with the debtor files and serves upon such party in interest a written objection to the taking of the proposed action.”. Sec. 314. Section 1302(b) of title 11, United States Code, is amended— (1) by amending paragraph (1) to read as follows: “(1) perform the duties specified in sections 704(2), 704(3), 704(4), 704(5), 704(6), 704(7), and 704(9) of this title;”; (2) in paragraph (2) by striking out “and” at the end thereof, (3) in paragraph (3) by striking out the period and inserting in lieu thereof “; and”, and (4) by adding at the end thereof the following new paragraph: “(4) ensure that the debtor commences making timely payments under section 1326 of this title.”. Sec. 315. Section 1307(c) of title 11, United States Code, is amended— (1) by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), respectively, and (2) by inserting after paragraph (3) the following new paragraph: “(4) failure to commence making timely payments under section 1326 of this title;”. Sec. 316. Section 1322(b)(1) of title 11, United States Code, is amended to read as follows: “(1) designate a class or classes of unsecured claims, as provided in section 1122 of this title, but may not discriminate unfairly against any class so designated; however, such plan may treat claims for a consumer debt of the debtor if an individual is liable on such consumer debt with the debtor differently than other unsecured claims;”. Sec. 317. Section 1325 of title 11, United States Code, is amended— (1) in subsection (a) by striking out “The” and inserting in lieu thereof “Except as provided in subsection (b), the”, (2) by redesignating subsection (b) as subsection (c), and (3) by inserting after subsection (a) the following new subsection: “(b) (1) If the trustee or the holder of an allowed unsecured claim objects to the confirmation of the plan, then the court may not approve the plan unless, as of the effective date of the plan— “(A) the value of the property to be distributed under the plan on account of such claim is not less than the amount of such claim; or “(B) the plan provides that all of the debtor’s projected disposable income to be received in the three-year period beginning on the date that the first payment is due under the plan will be applied to make payments under the plan. “(2) For purposes of this subsection, disposable income’ means income which is received by the debtor and which is not reasonably necessary to be expended— “(A) for the maintenance or support of the debtor or a dependent of the debtor; or “(B) if the debtor is engaged in business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business.”. Sec. 318. (a) Section 1326 of title 11, United States Code, is amended— (1) by redesignating subsections (a) and (b) as subsections (h) and (c), respectively, and (2) by inserting before such subsections the following new subsection: “(a) (1) Unless the court orders otherwise, the debtor shall commence making the payments proposed by a plan within 30 days after the plan is filed. “(2) A payment made under this subsection shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan. If a plan is not confirmed, the trustee shall return any such payments to the debtor, after deducting any unpaid claim allowed under section 503(b) of this title.”. (b) Section 15103(f) of title 11, United States Code, is amended by striking out “1326(a),” and inserting in lieu thereof “1326(b),”. Sec. 319. Section 1329(a) of title 11, United States Code, is amended by striking out “At” and all that follows through “modified to—”, and inserting in lieu thereof the following: “At any time after confirmation but before the completion of payments under a plan, the plan may be modified, upon request of the debtor, the trustee, or the holder of an allowed unsecured claim, to—”. Sec. 320. The Supreme Court shall prescribe general rules implementing Supreme Court of U.S. 28 USC 2075 note. Ante, p. 355. the practice and procedure to be followed under section 707(b) of title 11, United States Code. Section 2075 of title 28, United States Code, shall apply with respect to the general rules prescribed under this section. Sec. 321. Rule 2002 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision: “(n) In a voluntary case commenced under the Code by an individual debtor whose debts are primarily consumer debts, the clerk, or some other person as the court may direct, shall give the trustee and all creditors notice by mail of the order for relief not more than 20 days after the entry of such order.”. Sec. 322. Official Bankruptcy Form No. 1, referred to in Rule 1002 of the Bankruptcy Rules, is amended— 11 USC app. (1) by inserting after paragraph (5) the following: “(6) [If petitioner is an individual whose debts are primarily consumer debts.] Petitioner is aware that [he or she] may proceed under chapter 7 or 13 of title 11, United States Code, 11 USC 701 et seq.. 1301 et seq. understands the relief available under each such chapter, and chooses to proceed under chapter 7 of such title. “(7) [If petitioner is an individual whose debts are primarily consumer debts and such petitioner is represented by an attorney.] A declaration or an affidavit in the form of Exhibit ‘B’ is attached to and made a part of this petition.”, and (2) by inserting after Exhibit “A” at the end thereof the following new exhibit: “Exhibit ‘B’ “[If petitioner is an individual whose debts are primarily consumer debts, this Exhibit ‘B’ shall be completed and attached to the petition pursuant to paragraph (7) thereof.] Sec. 323. Section 408(c) of the Act of November 6, 1978 (Public Law 95–598; 92 Stat. 2687(c)), as amended by the Act of November 28, 1983 (Public Law 98–166; 97 Stat. 1071), is amended by striking out “September 30, 1984” and inserting in lieu thereof “September 30, 1986”. Sec. 324. Section 1103(b) of title 11, United States Code, is amended by striking out “A person” and inserting in lieu thereof “An attorney or accountant” Subtitle B— Amendments Relating to Grain Storage Facility Bankruptcy Sec. 350. Section 507(a) of title 11, United States Code, is amended— (1) by striking out “(5) Fifth” and inserting in lieu thereof “(6) Sixth” (2) by striking out “(6) Sixth” and inserting in lieu thereof “(7) Seventh”; and (3) by adding after paragraph (4) the following: “(5) Fifth, allowed unsecured claims of persons— “(A) engaged in the production or raising of grain, as Post, p. 359. defined in section 557(b)(1) of this title, against a debtor who owns or operates a grain storage facility, as defined in section 557(b)(2) of this title, for grain or the proceeds of grain, or “(B) engaged as a United States fisherman against a debtor who has acquired fish or fish produce from a fisherman through a safe or conversion, and who is engaged in operating a fish produce storage or processing facility— but only to the extent of $2,000 for each such individual.”. Sec. 351. Section 546 of title 11, United States Code, is amended— (1) in the first sentence of subsection (c) thereof, by striking out “The” and inserting in lieu thereof “Except as provided in subsection (d) of this section, the”; and (2) by redesignating subsection (d) as subsection (e); and (3) by inserting after subsection (c) the following: In the case of a seller who is a producer of grain sold to a grain storage facility, owned or operated by the debtor, in the ordinary course of such seller’s business (as such terms are defined Post, p. 359. in section 557 of this title) or in the case of a United States fisherman who has caught fish sold to a fish processing facility owned or operated by the debtor in the ordinary course of such fisherman’s business, the rights and powers of the trustee under sections 544(a), 545, 547, and 549 of this title are subject to any statutory or common law right of such producer or fisherman to reclaim such grain or fish if the debtor has received such grain or fish while insolvent, but— “(1) such producer or fisherman may not reclaim any grain or Claims. fish unless such producer or fisherman demands, in writing, reclamation of such grain or fish before ten days after receipt thereof by the debtor; and “(2) the court may deny reclamation to such a producer or fisherman with a right of reclamation that has made such a demand only if the court secures such claim by a lien.”. Sec. 352. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 557. Expedited determination of interests in, and abandonment or other disposition of grain assets “(a) This section applies only in a case concerning a debtor that owns or operates a grain storage facility and only with respect to grain and the proceeds of grain. This section does not affect the application of any other section of this title to property other than grain and proceeds of grain. “(b) In this section— “(1) ‘grain’ means wheat, corn, flaxseed, grain sorghum, barley, oats, rye, soybeans, other dry edible beans, or rice; “(2) ‘grain storage facility’ means a site or physical structure regularly used to store grain for producers, or to store grain acquired from prodùcers for resale; and “(3) ‘producer’ means an entity which engages in the growing of grain. “(c) (1) Notwithstanding sections 362, 363, 365, and 554 of this title, on the court’s own motion the court may, and on the request of the trustee or an entity that claims an interest in grain or the proceeds of grain the court shall, expedite the procedures for the determination of interests in and the disposition of grain and the proceeds of grain, by shortening to the greatest extent feasible such time periods as are otherwise applicable for such procedures and by establishing, by order, a timetable having a duration of not to exceed 120 days for the completion of the applicable procedure specified in subsection (d) of this section. Such time periods and such timetable may be modified by the court, for cause, in accordance with subsection (f) of this section. “(2) The court shall determine the extent to which such time periods shall be shortened, based upon— “(A) any need of an entity claiming an interest in such grain or the proceeds of grain for a prompt determination of such interest; “(B) any need of such entity for a prompt disposition of such grain; “(C) the market for such grain; “(D) the conditions under which such grain is stored; “(E) the costs of continued storage or disposition of such grain; “(F) the orderly administration of the estate; “(G) the appropriate opportunity for an entity to assert an interest in such grain; and “(H) such other considerations as are relevant to the need to expedite such procedures in the case. “(d) The procedures that may be expedited under subsection (c) of this section include— “(1) the filing of and response to— “(A) a claim of ownership; “(B) a proof of claim; “(C) a request for abandonment; “(D) a request for relief from the stay of action against property under section 362(a) of this title; “(E) a request for determination of secured status; “(F) a request for determination of whether such grain or the proceeds of grain— “(i) is property of the estate; “(ii) must be turned over to the estate; or “(iii) may be used, sold, or leased; and “(G) any other request for determination of an interest in such grain or the proceeds of grain; “(2) the disposition of such grain or the proceeds of grain, before or after determination of interests in such grain or the proceeds of grain, by way of— “(A) sale of such grain; “(B) abandonment; “(C) distribution; or “(D) such other method as is equitable in the case; “(3) subject to sections 701, 702, 703, 1104, and 1302 of this title, the appointment of a trustee or examiner and the retention and compensation of any professional person required to assist with respect to matters relevant to the determination of interests in or disposition of such grain or the proceeds of grain; and “(4) the determination of any dispute concerning a matter specified in paragraph (1), (2), or (3) of this subsection. “(e) (1) Any governmental unit that has regulatory jurisdiction over the operation or liquidation of the debtor or the debtor’s business shall be given notice of any request made or order entered under subsection (c) of this section. “(2) Any such governmental unit may raise, and may appear and be heard on, any issue relating to grain or the proceeds of grain in a case in which a request is made, or an order is entered, under subsection (c) of this section. “(3) The trustee shall consult with such governmental unit before taking any action relating to the disposition of grain in the possession, custody, or control of the debtor or the estate. “(f) The court may extend the period for final disposition of grain or the proceeds of grain under this section beyond 120 days if the court finds that— “(1) the interests of justice so require in light of the complexity of the case; and “(2) the interests of those claimants entitled to distribution of grain or the proceeds of grain will not be materially injured by such additional delay. “(g) Unless an order establishing an expedited procedure under subsection (c) of this section, or determining any interest in or approving any disposition of grain or the proceeds of grain, is stayed pending appeal— “(1) the reversal or modification of such order on appeal does not affect the validity of any procedure, determination, or disposition that occurs before such reversal or modification, whether or not any entity knew of the pendency of the appeal; and “(2) neither the court nor the trustee may delay, due to the appeal of such order, any proceeding in the case in which such order is issued. “(h) (1) The trustee may recover from grain and the proceeds of grain the reasonable and necessary costs and expenses allowable under section 503(b) of this title attributable to preserving or disposing of grain or the proceeds of grain, but may not recover from such grain or the proceeds of grain any other costs or expenses. “(2) Notwithstanding section 326(a) of this title, the dollar amounts of money specified in such section include the value, as of the date of disposition, of any grain that the trustee distributes in kind. “(i) In all cases where the quantity of a specific type of grain held by a debtor operating a grain storage facility exceeds ten thousand bushels, such grain shall be sold by the trustee and the assets thereof distributed in accordance with the provisions of this section.”. (b) The table of sections of chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: ‘557 Expedited determination of interests in and disposition of grain.”. Sec. 353. Section 901(a) of title 11, United States Code, is amended by inserting “557,” after “553,”. Sec. 354. Rule 3001 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision “(g) To the extent not inconsistent with the United States Warehouse Act or applicable State law, a warehouse receipt, scale ticket, or similar document of the type routinely issued as evidence of title by a grain storage facility, as defined in section 557 of title 11, shall constitute prima facie evidence of the validity and amount of a claim of ownership of a quantity of grain ”. Subtitle C— Leasehold Management Amendments Sec. 361. This subtitle may be cited as the “Leasehold Management Bankruptcy Amendments Act of 1983”. Sec. 362. (a) Section 365 of title 11, United States Code, is amended by amending subsections (a), (b), (c), and (d) to read as follows: “(a) Except as provided in sections 765 and 766 of this title and in subsections (b), (c), and (d) of this section, the trustee, subject to the court’s approval, may assume or reject any executory contract or unexpired lease of the debtor. “(b) (1) If there has been a default in an executory contract or unexpired lease of the debtor, the trustee may not assume such contract or lease unless, at the time of assumption of such contract or lease, the trustee— “(A) cures, or provides adequate assurance that the trustee will promptly cure, such default; “(B) compensates, or provides adequate assurance that the trustee will promptly compensate, a party other than the debtor to such contract or lease, for any actual pecuniary loss to such party resulting from such default; and “(C) provides adequate assurance of future performance under such contract or lease. “(2) Paragraph (1) of this subsection does not apply to a default that is a breach of a provision relating to— “(A) the insolvency or financial condition of the debtor at any time before the closing of the case; “(B) the commencement of a case under this title; or “(C) the appointment of or taking possession by a trustee in a case under this title or a custodian before such commencement. “(3) For the purposes of paragraph (1) of this subsection and paragraph (2)(B) of subsection (t), adequate assurance of future performance of a lease of real property in a shopping center includes adequate assurance— “(A) of the source of rent and other consideration due under such lease, and in the case of an assignment, that the financial condition and operating performance of the proposed assignee and its guarantors, if any, shall be similar to the financial condition and operating performance of the debtor and its guarantors, if any, as of the time the debtor became the lessee under the lease; “(B) that any percentage rent due under such lease will not decline substantially; “(C) that assumption or assignment of such lease is subject to all the provisions thereof, including (but not limited to) provisions such as a radius, location, use, or exclusivity provision, and will not breach any such provision contained in any other lease, financing agreement, or master agreement relating to such shopping center; and “(D) that assumption or assignment of such lease will not disrupt any tenant mix or balance in such shopping center. “(4) Notwithstanding any other provision of this section, if there has been a default in an unexpired lease of the debtor, other than a default of a kind specified in paragraph (2) of this subsection, the trustee may not require a lessor to provide services or supplies incidental to such lease before assumption of such lease unless the lessor is compensated under the terms of such lease for any services and supplies provided under such lease before assumption of such lease. “(c) The trustee may not assume or assign any executory contract or unexpired lease of the debtor, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties, if— “(1) (A) applicable law excuses a party, other than the debtor, to such contract or lease from accepting performance from or rendering performance to an entity other than the debtor or the debtor in possession or an assignee of such contract or lease, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties; and “(B) such party does not consent to such assumption or assignment; or “(2) such contract is a contract to make a loan, or extend other debt financing or financial accommodations, to or for the benefit of the debtor, or to issue a security of the debtor; or “(3) such lease of nonresidential real property has been terminated under applicable nonbankruptcy law prior to the order for relief. “(d) (1) In a case under chapter 7 of this title, if the trustee does not assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor within 60 days after the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such contract or lease is deemed rejected. “(2) In a case under chapter 9, 11, or 13 of this title, the trustee 11 USC 901 et seq., 1101 et seq., 1301 et seq. may assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor at any time before the confirmation of a plan but the court, on the request of any party to such contract or lease, may order the trustee to determine within a specified period of time whether to assume or reject such contract or lease. “(3) The trustee shall timely perform all the obligations of the debtor, except those specified in section 365(b)(2), arising from and Ante, p. 361. after the order for relief under any unexpired lease of nonresidential real property, until such lease is assumed or rejected, notwithstanding section 503(b)(1) of this title. The court may extend, for cause, the time for performance of any such obligation that arises within 60 days after the date of the order for relief, but the time for performance shall not be extended beyond such 60-day period. This subsection shall not be deemed to affect the trustee’s obligations under the provisions of subsection (b) or (f) of this section. Acceptance of any such performance does not constitute waiver or relinquishment of the lessor’s rights under such lease or under this title. “(4) Notwithstanding paragraphs (1) and (2), in a case under any chapter of this title, if the trustee does not assume or reject an unexpired lease of nonresidential real property under which the debtor is the lessee within 60 days after the date of the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such lease is deemed rejected, and the trustee shall immediately surrender such nonresidential real property to the lessor.”. (b) Section 365 is further amended by adding at the end thereof the following new subsection: “(l) If an unexpired lease under which the debtor is the lessee is assigned pursuant to this section, the lessor of the property may require a deposit or other security for the performance of the debtor’s obligations under the lease substantially the same as would have been required by the landlord upon the initial leasing to a similar tenant. “(m) For purposes of this section 365 and sections 541(b)(2) and Real property. Infra. 362(b)(9), leases of real property shall include any rental agreement to use real property.”. Sec. 363. (a) Section 541(b) of title 11, United States Code, is amended to read as follows: “(b) Property of the estate does not include— “(1) any power that the debtor may exercise solely for the benefit of an entity other than the debtor; or “(2) any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease before the commencement of the case under this title, and ceases to include any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease during the case.”. (b) Section 362(b) of title 11 of the United States Code is amended by— (1) striking out “or” at the end of paragraph (7), (2) replacing the period after paragraph (8) with “; or”, and (3) adding the following after paragraph (8): “(9) under subsection (a) of this section, of any act by a lessor to the debtor under a lease of nonresidential real property that has terminated by the expiration of the stated term of the lease before the commencement of or during a case under this title to obtain possession of such property.”. Subtitle D— Amendments to Title 11, Section 523 Relating to the Discharge of Debts Incurred by Persons Driving While Intoxicated Sec. 371. Section 523(a) of title 11, United States Code, is amended by— (1) striking out “or” at the end of paragraph (8); and (2) by adding the following new paragraph after such paragraph: “(9) to any entity, to the extent that such debt arises from a judgment or consent decree entered in a court of record against the debtor wherein liability was incurred by such debtor as a result of the debtor’s operation of a motor vehicle while legally intoxicated under the laws or regulations of any jurisdiction within the United States or its territories wherein such motor vehicle was operated and within which such liability was incurred; or”. Subtitle E— Referees Salary and Expense Fund Sec. 381. This subtitle may be cited as the “Referees Salary and Expense Fund Act of 1984”. Sec. 382. Section 403(e) of the Act of November 6, 1978 (92 Stat. 2683; Public Law 95–598), is amended to read as follows: “(e) Notwithstanding subsection (a) of this section— “(1) a fee may not be charged under section 40c(2)(a) of the Bankruptcy Act in a case pending under such Act after September 30, 1979, to the extent that such fee exceeds $200,000; “(2) a fee may not be charged under section 40c(2)(b) of the Bankruptcy Act in a case in which the plan is confirmed after September 30, 1978, or in which the final determination as to the amount of such fee is made after September 30, 1979, notwithstanding an earlier confirmation date, to the extent that such fee exceeds $100,000; “(3) after September 30, 1979, all moneys collected for payment into the referees’ salary and expense fund in cases filed 11 USC note prec. 101. under the Bankruptcy Act shall be collected and paid into the general fund of the Treasury; and “(4) any balance in the referees’ salary and expense fund in the Treasury on October 1, 1979, shall be transferred to the general fund of the Treasury and the referees’ salary and expense fund account shall be closed.”. Subtitle F— Amendments Regarding Repurchase Agreements Sec. 391. Section 101 of title 11, United States Code, is amended— (1) by redesignating paragraphs (35), (36), (37), (38), (39), (40), and (41), as paragraphs (37), (38), (39), (40), (41), (42), and (43), respectively, and (2) by inserting after paragraph (34) the following new paragraphs: “(35) ‘repo participant’ means an entity that, on any day during the period beginning 90 days before the date of the filing of the petition, has an outstanding repurchase agreement with the debtor; “(36) ‘repurchase agreement’ (which definition also applies to Securities. a reverse repurchase agreement) means an agreement, including related terms, which provides for the transfer of certificates of deposit, eligible bankers’ acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, or securities with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, or securities as described above, at a date certain not later than one year after such transfers or on demand, against the transfer of funds;”. Sec. 392. Section 362(b) of title 11, United States Code, is Ante, p. 363. amended— (a) by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively, and (b) by inserting after paragraph (6) the following new paragraph: “(7) under subsection (a) of this section, of the setoff by a repo participant, of any mutual debt and claim under or in connection with repurchase agreements that constitutes the setoff of a claim against the debtor for a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, arising out of repurchase agreements against cash, securities, or other property held by or due from such repo participant to margin, guarantee, secure or settle repurchase agreements;”. Sec. 393. Section 546 of title 11, United States Code, is amended by Ante, p. 358. inserting after subsection (e), as redesignated by section 251, the following: Notwithstanding sections 544, 545, 547, 548(a)(2), and 548(b) of this title, the trustee may not avoid a transfer that is a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, made by or to a repo participant, in connection with a repurchase agreement and that is made before the commencement of the case, except under section 548(a)(1) of this title.”. Sec. 394. Section 548(d)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “and” at the end thereof; (2) in subparagraph (B) by striking out the period at the end thereof and inserting in lieu thereof “; and”; and by inserting after paragraph (B) the following new subparagraph: “(C) a repo participant that receives a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, in connection with a repurchase agreement, takes for value to the extent of such payment.”. Sec. 395. Section 553(b)(1) of title 11, United States Code, is amended by inserting “, 362(b)(7),” after “362(b)(6)”. Sec. 396. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 559. Contractual right to liquidate a repurchase agreement “The exercise of a contractual right of a repo participant to cause the liquidation of a repurchase agreement because of a condition of the kind specified in section 365(e)(1) of this title shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title, unless, where the debtor is a stockbroker or securities clearing agency, such order is authorized under the provisions of the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) or any statute administered by the Securities and Exchange Commission. In the event that a repo participant liquidates one or more repurchase agreements with a debtor and under the terms of one or more such agreements has agreed to deliver assets subject to repurchase agreements to the debtor, any excess of the market prices received on liquidation of such assets (or if any such assets are not disposed of on the date of liquidation of such repurchase agreements, at the prices available at the time of liquidation of such repurchase agreements from a generally recognized source or the most recent closing bid quotation from such a source) over the sum of the stated repurchase prices and all expenses in connection with the liquidation of such repurchase agreements shall be deemed property of the estate, subject to the available rights of setoff. As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw, applicable to each party to the repurchase agreement, of a national securities exchange, a national securities association, or a securities clearing agency, and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal business practice.”. (b) The analysis of sections for chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: “559. Contractual right to liquidate a repurchase agreement.”. Subtitle G— Amendments to Title 11, Section 365 of the United States Code to Provide Adequate Protection for Timeshare Consumers Sec. 401. Title 11, United States Code, section 101 is hereby amended by— (1) redesignating paragraph (43), as redesignated by section Ante, p. 364. Real property. 391, as paragraph (44); and (2) adding the following paragraph after paragraph (42), as redesignated in section 391: “(43) ‘timeshare plan’ means and shall include that interest purchased in any arrangement, plan, scheme, or similar device, but not including exchange programs, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, right to use agreement, or by any other means, whereby a purchaser, in exchange for consideration, receives a right to use accommodations, facilities, or recreational sites, whether improved or unimproved, for a specific period of time less than a full year during any given year, but not necessarily for consecutive years, and which extends for a period of more than three years. A ‘timeshare interest’ is that interest purchased in a timeshare plan which grants the purchaser the right to use and occupy accommodations, facilities, or recreational sites, whether improved or unimproved, pursuant to a timeshare plan.”. Sec. 402. Section 365(h)(1) of title 11, United States Code, is Real property. amended to read as follows: “(h) (1) If the trustee rejects an unexpired lease of real property of the debtor under which the debtor is the lessor, or a timeshare interest under a timeshare plan under which the debtor is the timeshare interest seller, the lessee or timeshare interest purchaser under such lease or timeshare plan may treat such lease or time-share plan as terminated by such rejection, where the disaffirmance by the trustee amounts to such a breach as would entitle the lessee or timeshare interest purchaser to treat such lease as terminated by virtue of its own terms, applicable nonbankruptcy law, or other agreements the lessee or timeshare interest purchaser has made with other parties; or, in the alternative, the lessee or timeshare interest purchaser may remain in possession of the leasehold or timeshare interest under any lease or timeshare plan the term of which has commenced for the balance of such term and for any renewal or extension of such term that is enforceable by such lessee or timeshare interest purchaser under applicable nonbankruptcy law.”. Sec. 403. Section 365(h)(2) of title 11, United States Code, is Real property. amended to read as follows: “(2) If such lessee or timeshare interest purchaser remains in possession as provided in paragraph (1) of this subsection, such lessee or timeshare interest purchaser may offset against the rent reserved under such lease or moneys due for such timeshare interest for the balance of the term after the date of the rejection of such lease or timeshare interest, and any such renewal or extension thereof, any damages occurring after such date caused by the non-performance of any obligation of the debtor under such lease or timeshare plan after such date, but such lessee or timeshare interest purchaser does not have any rights against the estate on account of any damages arising after such date from such rejection, other than such offset.”. Sec. 404. Section 365(i)(1) of title 11, United States Code, is Real property. amended to read as follows: “(i) (1) If the trustee rejects an executory contract of the debtor for the sale of real property or for the sale of a timeshare interest under a timeshare plan, under which the purchaser is in possession, such purchaser may treat such contract as terminated, or, in the alternative, may remain in possession of such real property or timeshare interest.”. Subtitle H— Miscellaneous Amendments to Title 11 Sec. 421. (a) Section 101(2)(D) of title 11 of the United States Code is amended by striking out “or all” after “business”. (b) Section 101(8)(B) of title 11 of the United States Code is amended by striking out the colon at the end thereof and inserting in lieu thereof a semicolon. (c) Section 101(9)(B) of title 11 of the United States Code is amended by inserting “348(d),” after “section”. (d) Section 101(14) of title 11 of the United States Code is amended by inserting “and” after “trust,”. (e) Section 101(24) of title 11 of the United States Code is amended by striking out “stock broker” and inserting in lieu thereof “stockbroker” (f) Section 101(26)(B)(ii) of title 11 of the United States Code is amended by— (1) striking out “separate” each place it appears and inserting in lieu thereof “nonpartnership”; and (2) striking out “(A)(ii) and inserting in lieu thereof “(A)”, (g) Section 101(30) of title 11 of the United States Code is amended to read as follows: (30) “person” includes individual, partnership, and corporation, but does not include governmental unit, Provided, however, That any governmental unit that acquires an asset from a person as a result of operation of a loan guarantee agreement, or as receiver or liquidating agent of a person, will be considered a person for purposes of section 1102 of this title. (h) Section 101(38)(B)(vi) of title 11 of the United States Code, as Ante, p. 364. redesignated by section 391 of this Act, is amended by— (1) striking out “certificate specified in clause (xii) of subparagraph (A)” and inserting in lieu thereof “certificate of a kind specified in subparagraph (A)(xii)”; and (2) striking out “the subject of such a registration statement” and inserting in lieu thereof “required to be the subject of a registration statement”. (i) Section 101(44) of title 11 of the United States Code, as so redesignated, is amended by striking out the period and inserting in lieu thereof “and foreclosure of the debtor’s equity of redemption; and”. (j) Section 101 of title 11 of the United States Code is amended— (1) by redesignating paragraphs (41) through (44), as previously redesignated, as paragraphs (45) through (48); (2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively; (3) by redesignating paragraphs (19) and (20) as paragraphs (20) and (21), respectively; (4) by inserting after paragraph (18) the following: “(19) ‘financial institution’ means a person that is a commercial or savings bank, industrial savings bank, savings and loan association, or trust company and, when any such person is acting as agent or custodian for a customer in connection with a securities contract, as defined in section Post, p. 382. 741(7) of this title, such customer;”; (5) by inserting after paragraph (21) as redesignated herein the following: “(22) ‘forward contract’ means a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity, or product or byproduct thereof, with a maturity date more than two days after the date the contract is entered into; “(23) ‘forward contract merchant’ means a person whose business consists in whole or in part of entering into forward contracts as or with merchants in commodities;”; (6) by inserting after paragraph (43) the following: “(44) ‘State’ includes the District of Columbia and Puerto Rico, except for the purpose of defining who may be a debtor under chapter 9 of this title;”; and 11 USC 901 el seq. (7) by inserting after paragraph (48) the following: “(49) ‘United States’, when used in a geographical sense, includes all locations where the judicial jurisdiction of the United States extends, including territories and possessions of the United States;”. Sec. 422. Section 102 of title 11 of the United States Code is amended by striking out “continued” and inserting in lieu thereof “contained” in paragraph (8). Sec. 423. Section 103(c) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stockbroker”. Sec. 424. (a) Subsections (a)(1), (b)(1), and (c)(1) of section 108 of title 11 of the United States Code are each amended by striking out “and” each place it appears and inserting in lieu thereof “or”. (b) Subsections (a), (b), and (c) of section 108 of title 11 of the United States Code are each amended by inserting “nonbankruptcy” after “applicable” and after “entered in a” each place such terms appear. Sec. 425. (a) Section 109 of title 11 of the United States Code, is amended by striking out “in the United States,” the first place it appears. (b) Section 109(c)(5)(D) of title 11 of the United States Code of this Act is amended by striking out “preference” and inserting in lieu thereof “transfer that is avoidable under section 547 of this title”. (c) Section 109(d) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stock-broker”. Sec. 426. (a) Section 303(b) of title 11 of the United States Code is amended by inserting “against a person” after “involuntary case”. (b) Section 303 of title 11 of the United States Code, is amended— (1) in subsection (b)(1) by inserting “or the subject on a bona fide dispute,” after “liability”; and (2) in subsection (h)(1) by inserting “unless such debts that are the subject of a bona fide dispute” after “due”. Sec. 427. Section 303(j)(2) of title 11 of the United States Code is amended by striking out “debtors” and inserting in lieu thereof “debtor”. Sec. 428. Section 321(b) of title 11 of the United States Code is amended by striking out “a case” and inserting in lieu thereof “the case”. Sec. 429. Section 322(b)(1) of title 11 of the United States Code is amended by inserting “required to be” after “bond”. Sec. 430. (a) Section 326(a) of title 11 of the United States Code is amended by striking out all the language beginning with “three percent” through “$50,000” the second place the latter appears and inserting in lieu thereof “and three percent on any amount in excess of $3,000”. (b) Section 326(d) of title 11 of the United States Code is amended to read as follows: “(d) The court may deny allowance of compensation for services or reimbursement of expenses of the trustee if the trustee failed to make diligent inquiry into facts that would permit denial of allowance under section 328(c) of this title or, with knowledge of such facts, employed a professional person under section 327 of this title.”. (c) Section 327(c) of title 11 of the United States Code is amended to read as follows: “(c) In a case under chapter 7 or 11 of this title, a person is not disqualified for employment under this section solely because of such person’s employment by or representation of a creditor, unless there is objection by another creditor, in which case the court shall disapprove such employment if there is an actual conflict of interest.”. Sec. 431. Section 328(a) of title 11 of the United States Code is amended by striking out “unanticipatable” and inserting in lieu thereof “not capable of being anticipated”. Sec. 432. (a) Section 329(a) of title 11 of the United States Code is amended by striking out “and” the first place it appears and inserting in lieu thereof “or”. (b) Section 329(b)(1) of title 11 of the United States Code is amended by striking out “trustee” and inserting in lieu thereof “estate” Sec. 433. Section 330(a) of title 11 of the United States Code is amended— (1) by striking out “to any parties in interest and to the United States trustee”; and (2) in paragraph (1), by striking out “time, the nature, the extent, and the value of such services” and inserting in lieu thereof “nature, the extent, and the value of such services, the time spent on such services”. Sec. 434. (a) Section 330(b) of title 11 of the United States Code is amended by striking out “$20” and inserting in lieu thereof “$45”. (b) Section 330 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(c) Unless the court orders otherwise, in a case under chapter 13 11 USC 1301 et seq. of this title the compensation paid to the trustee serving in the case shall not be less than $5 per month from any distribution under the plan during the administration of the plan.”. Sec. 435. Section 342 of title 11 of the United States Code as Ante, p. 352. amended by section 302 is further amended by amending subsection (a) to read as follows: “(a) There shall be given such notice as is appropriate, including notice to any holder of a community claim, of an order for relief in a case under this title.”. Sec. 436. Section 343 of title 11 of the United States Code is amended by striking out “examiner” the last place it appears and inserting in lieu thereof “examine”. Sec. 437. Section 345 of title 11 of the United States Code is amended by adding at the end thereof a new subsection (c) as follows: “(c) An entity with which such moneys are deposited or invested is authorized to deposit or invest such moneys as may be required under this section”. Sec. 438. Section 346(c)(2) of title 11 of the United States Code is amended by striking out “operation” and inserting in lieu thereof “corporation”. Sec. 439. Section 350(b) of title 11 of the United States Code is amended by striking out “a” and inserting in lieu thereof “A”. Sec. 440. Section 361(1) of title 11 of the United States Code is amended by inserting “a cash payment or” after “make ”. Sec. 441. (a) Section 362(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “action or” after “other”; and (2) in paragraph (3), by inserting “or to exercise control over property of the estate” after “estate” the second place it appears. (b) Section 362(b) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting “or to the extent that such act is accomplished within the period provided under section 547(e)(2)(A) of this title” after “title”; (2) in paragraph (6), by— (A) inserting “or due from” after “held by”; and (B) striking out “or secure commodity contracts” and inserting in lieu thereof “secure, or settle commodity contracts”, and by inserting “financial institution,” after “stockbroker” each time it appears. (3) in paragraph (8) as redesignated by section 392, by— Ante, p. 365. (A) striking out “said” and inserting in lieu thereof “the”; and (B) striking out “or” the last place it appears; (4) in paragraph (9) as redesignated by section 392, by striking out the period and inserting in lieu thereof a semicolon; and (5) by adding after paragraph (9) the following new paragraph: “(10) under subsection (a) of this section, of the presentment of a negotiable instrument and the giving of notice of and protesting dishonor of such an instrument.”. (c) Section 362(c)(2)(B) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. (d) Section 362(d)(2) of title 11 of the United States Code is amended by inserting “under subsection (a) of this section” after “property” the first place it appears. (e) Section 362(e) of title 11 of the United States Code is amended— (1) in the first sentence by inserting “the conclusion of” after “pending”; and (2) by striking out the last sentence and inserting in lieu thereof the following: “The court shall order such stay continued in effect pending the conclusion of the final hearing under subsection (d) of this section if there is a reasonable likelihood that the party opposing relief from such stay will prevail at the conclusion of such final hearing. If the nearing under this subsection is a preliminary hearing, then such final hearing shall be commenced not later than thirty days after the conclusion of such preliminary hearing.”. (f) Section 362(f) of title 11 of the United States Code is amended by— (1) striking out “The” and inserting in lieu thereof “Upon request of a party in interest, the”; and (2) inserting “with or” after “court,”. Sec. 442. (a) Section 363(a) of title 11 of the United States Code is amended by— (1) inserting “whenever acquired” after “equivalents”; and (2) inserting “and includes the proceeds, products, offspring, rents, or profits of property subject to a security interest as provided in section 552(b) of this title, whether existing before or after the commencement of a case under this title” after “interest”. (b) Section 363(b) of title 11 of the United States Code is amended by— (1) striking out “(b)” and inserting in lieu thereof “(b)(1)”; and (2) adding at the end thereof the following new paragraph: “(2) If notification is required under subsection (a) of section 7 A of the Clayton Act (15 U.S.C. 18a) in the case of a transaction under this subsection, then— “(A) notwithstanding subsection (a) of such section, such notification shall be given by the trustee; and “(B) notwithstanding subsection (b) of such section, the required waiting period shall end on the tenth day after the date of the receipt of such notification, unless the court, after notice and hearing, orders otherwise.”. (c) Section 363(e) of title 11 of the United States Code is amended by— (1) inserting “, with or without a hearing,” after “court”; and (2) striking out the last sentence. (d) Section 363(f)(3) of title 11 of the United States Code is amended by striking out “such interest” the second place it appears and inserting in lieu thereof “all liens on such property”. (e) Section 363(h) of title 11 of the United States Code is amended by striking out “immediately before” and inserting in lieu thereof “at the time of”. (f) Section 363(i) of title 11 of the United States Code is amended by striking out “compenation” and inserting in lieu thereof “compensation”. (g) Section 363(k) of title 11 of the United States Code is amended by striking out “if the holder” and inserting in lieu thereof “unless the court for cause orders otherwise the holder of such claim may bid at such sale, and, if the holder”. (h) Section 363(1) of title 11 of the United States Code is amended by— (1) striking out “The trustee” and inserting in lieu thereof “Subject to the provisions of section 365, the trustee”; (2) striking out “conditions” and inserting in lieu thereof “condition”; (3) striking out “a taking” and inserting in lieu thereof “or the taking”; and (4) striking out “interests” and inserting in lieu thereof “interest”. (i) Section 363(n) of title 11 of the United States Code is amended by— (1) striking out “void” and inserting in lieu thereof “avoid”; (2) striking out “voiding” and inserting in lieu thereof “avoiding”; and (3) amending the last sentence to read as follows: “In addition to any recovery under the preceding sentence, the court may grant judgment for punitive damages in favor of the estate and against any such party that entered into such an agreement in willful disregard of this subsection.”. (j) Section 363 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(o) In any hearing under this section— “(1) the trustee has the burden of proof on the issue of adequate protection; and “(2) the entity asserting an interest in property has the burden of proof on the issue of the validity, priority, or extent of such interest.”. Sec. 443. Section 366(a) of title 11 of the United States Code is amended by inserting “of the commencement of a case under this title or” after “basis”. Sec. 444. Section 501(d) of title 11 of the United States Code is amended by inserting “502(e)(2),” before “502(f)”. Sec. 445. (a) Section 502(a) of title 11 of the United States Code is amended by inserting “general” before “partner”. (b) Section 502(b) of title 11 of the United States Code is amended— (1) by inserting “(e)(2),” after “subsections”; (2) by inserting “in lawful currency of the United States” after “claim” the second place it appears; (3) in paragraph (1), by striking out “, and unenforceable against” and inserting in lieu thereof “and”; (4) by striking out paragraph (3) and redesignating paragraphs (4), (5), (6), (7), (8), and (9) as paragraphs (3), (4), (5), (6), (7), and (8), respectively; (5) in paragraph (3), as redesignated by paragraph (5), by inserting “the” after “exceeds”; (6) in paragraph (5), as redesignated by paragraph (5), by— (A) striking out “the claim” and inserting in lieu thereof “such claim”, and (B) striking out the comma after “petition”; and (7) in paragraph (7), as redesignated by paragraph (5), by— (A) inserting “the claim of an employee” before “for damages”; (B) striking out “and” in subparagraph (A)(i) and inserting in lieu thereof “or”; (C) striking out “the” the first place it appears in subparagraph (B) and inserting in lieu thereof “any”; and (D) inserting a comma after “such contract” in subparagraph (B). (c) Section 502(c) of title 11 of the United States Code is amended— (1) in paragraph (1) by— (A) inserting “the” before “fixing”; and (B) striking out “closing” and inserting in lieu thereof “administration”; and (2) in paragraph (2), by— (A) inserting “right to payment arising from a” after “any”; and (B) striking out “if such breach gives rise to a right to payment”. (d) Section 502(e)(1) of title 11, United States Code, is amended— (1) by striking out “and (b)” and inserting in lieu thereof “, (b), and (c)”; and (2) by striking out the commas before and after “or has secured”; (3) in subparagraph (B), by inserting “or disallowance” after “allowance”; and (4) in subparagraph (C), by— (A) striking out “requests subrogation” and inserting in lieu thereof “asserts a right of subrogation to the rights of such creditor”; and (B) striking out “to the rights of such creditor”. (e) Section 502(h) of title 11 of the United States Code is amended by striking out “522(i)” and inserting in lieu thereof “522”. (f) Section 502(j) of title 11 of the United States Code is amended to read as follows: “(j) A claim that has been allowed or disallowed may be reconsidered for cause. A reconsidered claim may be allowed or disallowed according to the equities of the case. Reconsideration of a claim under this subsection does not affect the validity of any payment or transfer from the estate made to a holder of an allowed claim on account of such allowed claim that is not reconsidered, but if a reconsidered claim is allowed and is of the same class as such holder’s claim, such holder may not receive any additional payment or transfer from the estate on account of such holder’s allowed claim until the holder of such reconsidered and allowed claim receives payment on account of such claim proportionate in value to that already received by such other holder. This subsection does not alter or modify the trustee’s right to recover from a creditor any excess payment or transfer made to such creditor.”. Sec. 446. Section 503(b) of title 11 of the United States Code is amended— (1) by striking out the comma after “be allowed”; (2) in paragraph (1)(C), by striking out the comma after “credit”; (3) in paragraph (2), by inserting “(a)” after “330”; (4) in paragraph (3), by inserting a comma after “paragraph (4) of this subsection”; (5) in paragraph (3)(C), by striking out the comma after “case”; (6) in paragraph (5), by striking out “and” after the semicolon; and (7) in paragraph (6), by striking out the period and inserting in lieu thereof “; and”. Sec. 447. Section 505(a) of title 11 of the United States Code is amended in paragraph (2)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 448. (a) Section 506(b) of title 11 of the United States Code is amended by inserting “for” after “provided”. (b) Paragraphs (1) and (2) of section 506(d) of title 11 of the United States Code are amended to read as follows: “(1) such claim was disallowed only under section 502(b)(5) or 502(e) of this title; or “(2) such claim is not an allowed secured claim due only to the failure of any entity to file a proof of such claim under section 501 of this title.”. Sec. 449. (a) Section 507(a) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting a comma after “severance”: (2) in paragraph (4), by striking out “employee benefit plans” and inserting in lieu thereof “an employee benefit plan”; (3) in paragraph (4)(B)(i), by inserting “each” after “covered by”; and (4) in paragraph (7) as redesignated by section 350 by inserting “only” after “units,”. (b) Section 507(c) of title 11 of the United States Code is amended by striking out “shall be treated the same” and inserting in lieu thereof “has the same priority”. Sec. 450. (a) Section 509(a) of title 11 of the United States Code is amended by— (1) striking out “subsections (b) and” and inserting in lieu thereof “subsection (b) or”; and (2) inserting “against the debtor” after “a creditor”. (b) Section 509(b)(1) of title 11 of the United States Code is amended by striking out “of a” and inserting in lieu thereof “of such”. (c) Section 509(c) of title 11 of the United States Code is amended by striking out “section 509 of this title” and inserting in lieu thereof “this section”. Sec. 451. Section 510(b) of title 11 of the United States Code is Claims. amended to read as follows: “(b) For the purpose of distribution under this title, a claim arising from rescission of a purchase or sale of a security of the debtor or of an affiliate of the debtor, for damages arising from the purchase or sale of such a security, or for reimbursement or contribution allowed under section 502 on account of such a claim, shall be subordinated to all claims or interests that are senior to or equal the claim or interest represented by such security, except that if such security is common stock, such claim has the same priority as common stock.”. Sec. 452. Section 521(3) of title 11 of the United States Code, as redesignated in section 305, is amended by inserting “, whether or Ante, p. 352. not immunity is granted under section 344 of this title” after “estate” the second place it appears. Sec. 453. (a) Section 522(a)(2) of title 11 of the United States Code is amended by inserting “or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate” after “petition”. (b) Section 522(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the case is dismissed, property exempted under this section is not liable during or after the case for any debt of the debtor that arose, or that is determined under section 502 of this title as if such debt had arisen, before the commencement of the case, except— “(1) a debt of a kind specified in section 523(a)(1) or 523(a)(5) of this title; or “(2) a debt secured by a lien that is— “(A) (i) not avoided under subsection (f) or (g) of this section or under section 544, 545, 547, 548, 549, or 724(a) of this title; and “(ii) not void under section 506(d) of this title; or Ante, p. 374. “(B) a tax lien, notice of which is properly filed.”. (c) Section 522(e) of title 11 of the United States Code is amended by striking out “exemptions” and inserting in lieu thereof “an exemption”. Sec. 454. (a) Section 523(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by— (A) striking out “obtaining” each place it appears; and (B) striking out “refinance of credit,” and inserting in lieu thereof “refinancing of credit, to the extent obtained”; and (2) by striking out “of higher education” in paragraph (8). (b) Section 523(a)(5) of title 11, United States Code, is amended by— (1) amending the first paragraph thereof by inserting the words “or other order of a court of record” after the words “divorce decree,”; and (2) inserting “, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State” after “Social Security Act”. (c) Section 523(c) of title 11 of the United States Code is amended by inserting “of a kind” after “debt” the first time it appears. Sec. 455. Section 524(a) of title 11 of the United States Code is amended by striking out “any act” each place it appears and inserting in lieu thereof “an act”. Sec. 456. (a) Section 541(a) of title 11 of the United States Code is amended— (1) by striking out “under” the second time it appears; (2) by inserting “and by whomever held” after “located”; (3) in paragraph (3), by inserting “329(b), 363(n),” after “section”; (4) in paragraph (5), by striking out “An” and inserting in lieu thereof “Any”; and (5) in paragraph (6), by striking out “and” and inserting in lieu thereof “or”. (b) Section 541(c) of title 11 of the United States Code is amended— (1) by inserting “in an agreement, transfer instrument, or applicable nonbankruptcy law” after “provision”; and (2) in paragraph (1)(B), by— (A) striking out “the taking” and inserting in lieu thereof “taking”; and (B) inserting “before such commencement” after “custodian”. (c) Section 541(d) of title 11 of the United States Code is amended by inserting “(1) or (2)” after “(a)”. (d) Section 541(e) of title 11 of the United States Code is repealed. Sec. 457. Section 542(e) of title 11 of the United States Code is amended by inserting “to turn over or” before “disclose”. Sec. 458. (a) Section 543(a) of title 11 of the United States Code is amended by inserting “, product, offspring, rents, or profits” after “proceeds”. (b) Section 543(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by— (A) inserting “held by or” after “debtor”; and (B) inserting “, product, offspring, rents, or profits” after “proceeds”; and (2) in paragraph (2), by inserting “, product, offspring, rents, or profits” after “proceeds”. (c) Section 543(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “or proceeds, product, off-spring, rents, or profits of such property” after “property”; and (2) in paragraph (3), by inserting “that has been” before “approved”. (d) Section 543(d) of title 11 of the United States Code is amended to read as follows: “(d) After notice and hearing, the bankruptcy court— “(1) may excuse compliance with subsection (a), (b), or (c) of this section, if the interests of creditors and, if the debtor is not insolvent, of equity security holders would be better served by permitting a custodian to continue in possession, custody, or control of such property, and “(2) shall excuse compliance with subsections (a) and (b)(1) of this section if the custodian is an assignee for the benefit of the debtor’s creditors that was appointed or took possession more than 120 days before the date of the filing of the petition, unless compliance with such subsections is necessary to prevent fraud or injustice.”. Sec. 459. Section 544(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “such” after “obtained”; (2) in paragraph (2), by striking out “; and” and inserting in lieu thereof “, or”; and (3) in paragraph (3), by— (A) inserting “, other than fixtures,” after “property”; and (B) inserting “and has perfected such transfer” after “purchaser” the second place it appears. Sec. 460. Section 545 of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by striking out “is” the first time it appears; (2) in paragraph (1)(C), by striking out “apponted” and inserting in lieu thereof appointed or authorized to take”; and (3) in paragraph (2), by striking out “on the date of of the filing the petition” each place it appears and inserting in lieu thereof “at the time of the commencement of the case”. Sec. 461. (a) Section 546(a) of title 11 of the United States Code is amended in paragraph (1) by striking out “and” and inserting in lieu thereof “or”. (b) Section 546(b) of title 11 of the United States Code is amended by striking out “the trustee under section 544, 545, or” and inserting in lieu thereof “a trustee under sections 544, 545, and”. (c) Section 546(c) of title 11 of the United States Code is amended— (1) by striking out “the trustee” and inserting in lieu thereof “a trustee”; (2) by striking out “right” the first place it appears; (3) by inserting “of goods that has sold goods to the debtor” after “seller” the first place it appears; (4) by striking out “of goods to the debtor” after “business,”; and (5) in paragraph (2), by— (A) inserting “the” after “if’; and (B) striking out “an administrative expense” and inserting in lieu thereof “a claim of a kind specified in section 503(b) of this title” (d) Section 546(e) of title 11 of the United States Code, as redesignated by section 351, is amended by inserting “financial institution” after “stockbroker”. Sec. 462. (a) Section 547(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “including proceeds of such property,” after “law,”; and (2) in paragraph (4), by— (A) striking out “, without penalty”; and (B) inserting “without penalty” after “payable”. (b) Section 547(b) of title 11 of the United States Code is amended— (1) by striking out “of property of the debtor” and inserting in lieu thereof “of an interest of the debtor in property”; and (2) in paragraph (4) by amending subparagraph (B) to read as follows: “(B) between ninety days and one year before the date of the Tiling of the petition, if such creditor at the time of such transfer was an insider;”. (c) Section 547 of title 11 of the United States Code is amended in subsection (c)(2) thereof by striking out subparagraph (B) of such subsection, and by redesignating subparagraphs (C) and (D) thereof as subparagraphs (B) and (C), respectively. (d) Section 547(c) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by inserting “by the debtor” after “incurred”; (2) in paragraph (3), by striking out “of” the first place it appears and inserting in lieu thereof “that creates”; (3) in paragraph (3)(B), by— (A) inserting “on or after “perfected”; and (B) striking out “such security interest attaches” and inserting in lieu thereof “the debtor receives possession of such property”; (4) in paragraph (5), by— (A) striking out “of” the first place it appears and inserting in lieu thereof “that creates”; and (B) striking out “all security interest” and inserting in lieu thereof “all security interests”; and (5) in paragraph (5)(A)(ii), by striking out “and” and inserting in lieu thereof “or”. (e) Section 547(d) of title 11 of the United States Code is amended by— (1) striking out “A” and inserting in lieu thereof “The”; (2) inserting “an interest in” after “transfer of’: (3) inserting “to or for the benefit of a surety” after “transferred”; and (4) inserting “such” after “reimbursement of’. (f) Section 547(e) of title 11 of the United States Code is amended in paragraph (2)(C)(i), by striking out “and” and inserting in lieu thereof “or”. (g) Section 547 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(g) For the purposes of this section, the trustee has the burden of proving the avoidability of a transfer under subsection (b) of this section, and the creditor or party in interest against whom recovery or avoidance is sought has the burden of proving the nonavoidability of a transfer under subsection (c) of this section.”. Sec. 463. (a) Section 548(a) of title 11 of the United States Code is amended— (1) by striking out “if the debtor” and inserting in lieu thereof “if the debtor voluntarily or involuntarily”; (2) in paragraph (1), by striking out “occurred” and inserting in lieu thereof “was made”; and (3) in paragraph (2)(B)(ii), by inserting “or a transaction” after “engaged in business”. (b) Section 548(c) of title 11 of the United States Code is amended by— (1) inserting “or may retain” after “lien on”; and (2) striking out “, may retain any lien transferred,”. (c) (1) Section 548(d)(1) of title 11 of the United States Code is amended by— (A) striking out “becomes so far” and inserting in lieu thereof “is so”; (B) striking out “such transfer could have been” and inserting in lieu thereof “applicable law permits such transfer to be”; and (C) striking out “occurs” and inserting in lieu thereof “is made”. (2) Section 548(d)(2)(B) of title 11 is amended by inserting “financial institution,” after “stockbroker”. Sec. 464. (a) Section 549(a) of title 11 of the United States Code is amended— (1) by striking out “(b) and (c)” and inserting in lieu thereof “(b) or (c)”; and (2) in paragraph (2)(A), by inserting “only” after “authorized”. (3) striking out “that occurs” and inserting in lieu thereof “made”; (4) striking out “is valid against the trustee to the extent of’ and inserting in lieu thereof “to the extent”; and (5) inserting “is” before “given”. (c) Section 549(c) of title 11 of the United States Code is amended Real property. to read as follows: “(c) The trustee may not avoid under subsection (a) of this section a transfer of real property to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value unless a copy or notice of the petition was filed, where a transfer of such real property may be recorded to perfect such transfer, before such transfer is so perfected that a bona fide purchaser of such property, against whom applicable law permits such transfer to be perfected, could not acquire an interest that is superior to the interest of such good faith purchaser. A good faith purchaser without knowledge of the commencement of the case and for less than present fair equivalent value has a lien on the property transferred to the extent of any present value given, unless a copy or notice of the petition was so filed before such transfer was so perfected”. (d) Section 549(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 465. (a) Section 550(a) of title 11 of the United States Code is amended by striking out “549, or 724(a) of this title” and inserting in lieu thereof “549, 553(b), or 724(a) of this title”. (b) Section 550(d) of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by inserting “or accruing to” after “by”; (2) in paragraph (1)(B), by striking out “value” and inserting in lieu thereof “the value of such property”; (3) in paragraph (2), by striking out subparagraphs (D) and (E) and inserting in lieu thereof the following: “(D) payment of any debt secured by a lien on such property that is superior or equal to the rights of the trustee; and”, and (4) in paragraph (2), by redesignating subparagraph (F) as subparagraph (E). (c) Section 550(e)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 466. Section 552(b) of title 11 of the United States Code is amended by— (1) inserting “522,” after “506(c),”; (2) striking out “a secured party enter” and inserting in lieu thereof “an entity entered”; and (3) striking out “except to the extent” and inserting in lieu thereof “except to any extent”. Sec. 467. Section 553(b)(1) of title 11 of the United States Code is amended by striking out “or 365(h)(1)” and inserting in lieu thereof “, 365(h)(2), or 365(i)(2)”. Sec. 468. (a) Subsections (a) and (b) of section 554 of title 11 of the United States Code are each amended by inserting “and benefit” after “value”. (b) Section 554(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the court orders otherwise, any property scheduled under section 521(a)(1) of this title not otherwise administered at the time of the closing of a case is abandoned to the debtor and administered for purposes of section 350 of this title.”. (c) Section 554(d) of title 11 of the United States Code is amended by striking out “section (a) or (b) of”. Sec. 469. Section 555 of title 11 of the United States Code is amended by inserting “, financial institution,” after “stockbroker”. Sec. 470. (a) Chapter 5 of title 11 of the United States Code as amended by section 352 is amended by adding at the end thereof the following new section: “§ 558. Defenses of the estate “The estate shall have the benefit of any defense available to the debtor as against any entity other than the estate, including statutes of limitation, statutes of frauds, usury, and other personal defenses. A waiver of any such defense by the debtor after the commencement of the case does not bind the estate.”. (b) The table of sections for chapter 5 of title 11 of the United States Code is amended by adding at the end thereof the following new item: “558. Defenses of the estate.”. Sec. 471. The table of sections for chapter 7 of title 11 of the United States Code is amended by striking out “Succesor” in the item relating to section 703 and inserting in lieu thereof “Succcssor” Sec. 472. (a) Section 702(b) of title 11 of the United States Code is amended by inserting “held” after “meeting of creditors”. (b) Section 702(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “of a kind” after “claims”; and (2) in paragraph (2), by inserting “a” after “for”. (c) Section 702(d) of title 11 of the United States Code is amended by striking out “subsection (c) of”. Sec. 473. Section 703(b) of title 11 of the United States Code is amended by striking out “specified in section 701(a) of this title. Sections 701(b) and 701(c) of this title apply to such interim trustee” and inserting in lieu thereof “and subject to the provisions of section 701 of this title”. Sec. 474. Section 704 of title 11 of the United States Code as amended by section 311 is amended in paragraph (1), by striking out Ante, p. 355. “up”. Sec. 475. Paragraphs (1) and (2) of section 707 of title 11 of the United States Code are each amended by striking out “and” and inserting in lieu thereof “or”. Sec. 476. (a) Section 723(a) of title 11 of the United States Code is amended by striking out all after “claims” and inserting in lie thereof “which are allowed in a case under this chapter concerning a partnership and with respect to which a general partner of the partnership is personally liable, the trustee shall have a claim against such general partner for the full amount of the deficiency”. (b) Section 723(c) of title 11 of the United States Code is amended by— (1) striking out “such case” each place it appears and inserting in lieu thereof “such partner’s case”; (2) striking out “be property” and inserting in lieu thereof “by property”; and (3) striking out “the kind” and inserting in lieu thereof “a kind”. Sec. 477. (a) Section 724(b) of title 11 of the United States Code is amended— (1) by striking out “taxes” and inserting in lieu thereof “a tax”; (2) in paragraph (2), by— (A) striking out “claims” and inserting in lieu thereof “any holder of a claim of a kind”; (B) striking out “sections” and inserting in lieu thereof “section”; and (C) striking out “and” and inserting in lieu thereof “or”; and (3) in paragraph (3), by inserting “tax” after “allowed”. (b) Section 724(c) of title 11 of the United States Code is amended by— (1) striking out “creditor” and inserting in lieu thereof “holder of a claim”; and (2) striking out “creditors” each place it appears and inserting in lieu thereof “holders”. (c) Section 724(d) of title 11 of the United States Code is amended by— (1) striking out “whose priority” and inserting in lieu thereof “the priority of which”; and (2) inserting ‘ if such lien were” after “the same as”. Sec. 478. Section 725 of title 11 of the United States Cede is amended by inserting “of property of the estate” after “distribution”. Sec. 479. (a) Section 726(b) of title 11 of the United States Code is amended by— (1) striking out “a particular paragraph” and inserting in lieu thereof “each such particular paragraph”; and (2) striking out “administrative expenses” each place it appears and inserting in lieu thereof “a claim allowed under section 503(b) of this title”; and (3) striking out “have” and inserting in lieu thereof “has”. (b) Section 726(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “Administrative expenses” and inserting in lieu thereof “Claims allowed under section 503 of this title”; and (2) in paragraph (2), by striking out “Claims other than for administrative expenses” and inserting in lieu thereof “Allowed claims, other than claims allowed under section 503 of this title,”. Sec. 480. (a) Section 727(a) of title 11 of the United States Code is amended— (1) in paragraph (6)(C), by striking out “property” and inserting in lieu thereof “properly”; (2) in paragraph (7), by inserting “, under this title or under the Bankruptcy Act,” after “another case”; and (3) in paragraph (8), by inserting a comma after “371”. (b) Section 727(c)(1) of title 11 of the United States Code is amended by inserting “the granting of a” after “to”. (c) Section 727(e)(2)(A) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 481. (a) Section 728(c) of title 11 of the United States Code is amended by striking out the comma after “taxable income”. (b) Section 728(d)(2) of title 11 of the United States Code is amended by inserting “otherwise” after “is”, and by striking out “otherwise” after “partner”. Sec. 482. Section 741 of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by— (A) striking out “the debtor” the first time it appears and inserting in lieu thereof “a person”; (B) striking out “holds” and inserting in lieu thereof “has”; (C) striking out “the debtor” the second and third time it appears and inserting in lieu thereof “such person”; and (D) striking out “business as a stockbroker” and inserting in lieu thereof “such person”s business as a stockbroker,”, (2) in paragraph (2)(B), by— (A) striking out “holds” and inserting in lieu thereof “has”; (B) striking out “the debtor” the first place it appears and inserting in lieu thereof “a person”; and (C) by striking out “the debtor” and inserting in lieu thereof “such person” in clause (ii); (3) in paragraph (4)(A)(i), by striking out “and that is” and inserting in lieu thereof “from and that is the lawful”; (4) in paragraph (6)(A)(i), by— (A) inserting a comma after “petition”; and (B) inserting “any” after “except”; and (5) in paragraph (7), by amending such paragraph to read as follows: “(7) ‘securities contract’ means contract for the purchase, sale, or loan of a security, including an option for the purchase or sale of a security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any option entered into on a national securities exchange relating to foreign currencies, or the guarantee of any settlement of cash or securities by or to a securities clearing agency;”; and (6) in paragraph (8) by inserting “a final settlement payment,” after “settlement payment on account,”. Sec. 483. Section 745(a) of title 11 of the United States Code is amended by inserting “the debtor for” after “by”. Sec. 484. (a) Section 752(a) of title 11 of the United States Code is amended by— (1) striking out “customers allowed” and in lieu thereof “customers’ allowed”; (2) inserting “of the kind” after “except claims”; and (3) inserting “such” before “customer property”. (b) Section 752(b)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 485. Section 761 of title 11 of the United States Code is amended in paragraph (10), by striking out “and that is” in subparagraph (A)(viii) and inserting in lieu thereof “from and that is the lawful”. Sec. 486. Section 763(a) of title 11 of the United States Code is amended by— (1) inserting “the debtor for” after “by”; and (2) striking out “deemed to be” and inserting in lieu thereof “treated as”. Sec. 487. Section 764(a) of title 11 of the United States Code is amended by inserting “by the debtor” after “any transfer”. Sec. 488. Section 765(a) of title 11 of the United States Code is amended by striking out “notice under”, and inserting in lieu thereof “notice required by”. Sec. 489. Section 766(j)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 490. Section 901(a) of title 11 of the United States Code is amended by inserting a comma after “1111(b)”. Sec. 491. Section 902(2) of title 11 of the United States Code is amended by striking out “title, legal or equitable, to real property against which has been levied a special assessment or special tax” and by inserting in lieu thereof “legal or equitable title to real property against which a special assessment or special tax has been levied”. Sec. 492. Section 903(2) of title 11 of the United States Code is amended by striking out “to” the first place it appears. Sec. 493. Chapter 9 of title 11 of the United States Code is 11 USC prec 921.. amended by striking out “SUBCHAPER II” and inserting in lieu thereof “SUBCHAPTER II”. Sec. 494. (a) Section 921(c) of title 11 of the United States Code is amended by— (1) striking out “an” and inserting in lieu thereof “any”; and (2) striking out the comma after “petition” the second place it appears, and after “faith”. (b) Section 921 of title 11 of the United States Code is amended by redesignating subsections (e) and (f) as subsections (d) and (e), respectively. (c) Section 921(a) is amended by striking out “109(c)” and inserting in lieu thereof “109(d)”. (d) Section 921(d) of title 11 of the United States Code, as so redesignated, is amended by striking out “subsection (d)” and inserting in lieu thereof “subsection (c)”. Sec. 495. Section 922(a)(1) of title 11 of the United States Code is amended by— (1) inserting “a” before “judicial”; and (2) inserting “action or” before “proceeding”. Sec. 496. Section 927(b) of title 11 of the United States Code is amended by inserting “of a plan under this chapter” after “confirmation”. Sec. 497. Section 943(b) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “to be taken”; and (2) by amending paragraph (5) to read as follows: “(5) except to the extent that the holder of a particular claim has agreed to a different treatment of such claim, the plan provides that on the effective date of the plan each holder of a claim of a kind specified in section 507(a)(1) of this title will receive on account of such claim cash equal to the allowed amount of such claim; and”. Sec. 498. Section 945(a) of title 11 of the United States Code is amended by striking out “execution” and inserting in lieu thereof “implementation”. Sec. 499. Section 1102(b)(1) of title 11 of the United States Code is amended by striking out “order for relief’ and inserting in lieu thereof “commencement of the case”. Sec. 500. (a) Section 1103(b) is amended by— (1) inserting “having an adverse interest” after “entity”; and (2) adding at the end thereof the following: “Representation of one or more creditors of the same class as represented by the committee shall not per se constitute the representation of an adverse interest/’. (b) Section 1103(c) of title 11 of the United States Code is amended— (1) in paragraph (3), by— (A) striking out “recommendations” and inserting in lieu thereof “determinations”; and (B) inserting “or rejections” after “acceptances”; and (2) in paragraph (4), by striking out “, if a trustee or examiner, as the case may be, has not previously been appointed under this chapter in the case”. Sec. 501. Section 1105 of title 11 of the United States Code is amended by striking out “estate, and” and inserting in lieu thereof “estate and of the”. Sec. 502. Section 1106(b) of title 11 of the United States Code is amended by inserting “, except to the extent that the court orders otherwise, before “any other”. Sec. 503. Section 1107(a) of title 11 of the United States Code is amended by inserting “serving in a case” after “on a trustee”. Sec. 504. Section 1108 of title 11 of the United States Code is amended by inserting “, on request of a party in interest and after notice and a hearing, after “court”. Sec. 505. (a) Section 1112(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by striking out “is an involuntary case originally commenced under this chapter” and inserting in lieu thereof “originally was commenced as an involuntary case under this chapter”; and (2) in paragraph (3), by striking but “on other than” and inserting in lieu thereof “other than on”. (b) Section 1112(b) of title 11 of the United States Code is amended— (1) in paragraph (5), by inserting “a request made for” before “additional”; and (2) in paragraph (8), by striking out “and” and inserting in lieu thereof “or”. Sec. 506. (a) Section 1121(c)(3) of title 11 of the United States Code is amended by striking out “the claims or interests of which are” and inserting in lieu thereof “of claims or interests that is”. (b) Section 1121(d) of title 11 of the United States Code is amended by inserting “made within the respective periods specified in subsection (c) of this section” after “interest”. Sec. 507. (a) Section 1123(a) of title 11 of the United States Code is amended— (1) by striking out “A” and inserting in lieu thereof “Notwithstanding any otherwise applicable nonbankruptcy law, a”; (2) in paragraph (1), by— (A) inserting a comma after “classes of claims”; and (B) by striking out “507(a)(6) of this title” and inserting in lieu thereof “507(a)(7) of this title,”; (3) in paragraph (3), by striking out “shall”; (4) in paragraph (5), by striking out “execution” and inserting in lieu thereof “implementation”, and (5) in paragraph (5)(G), by inserting “of’ after “waiving”. (b) Section 1123(b)(2) of title 11 of the United States Code is amended by— (1) striking out “or rejection” and inserting in lieu thereof “, rejection, or assignment”; and (2) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”. Sec. 508. Section 1124 of title 11 of the United States Code is amended— (1) by amending paragraph ()(A) to read as follows: “(A) cures any such default that occurred before or after the commencement of the case under this title, other than a default of a kind specified in section 365(b)(2) of this title;”; Ante, p. 361. and (2) in paragraph (3)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 509. (a) Section 1125(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “, but adequate information need not include such information about any other possible or proposed plan” after “plan”; (2) in paragraph (2)(B), by inserting “the” after “with”; and (3) in paragraph (2)(C), by inserting “or’ after “holders”. (b) Section 1125(d) of title 11 of the United States Code is amended by— (1) inserting “required under subsection (b) of this section” after “statement” the first place it appears; and (2) inserting or otherwise seek review of,” after “appeal from”. (c) Section 1125(e) of title 11 of the United States Code is amended by— (1) inserting “acceptance or rejection of a plan” after “solicits”; and (2) inserting “solicitation of acceptance or rejection of a plan or” after “governing”. Sec. 510. (a) Section 1126(b)(2) of title 11 of the United States Code is amended by striking out “1125(a)(1)” and inserting in lieu thereof “1125(a)”. (b) Section 1126(d) of title 11 of the United States Code is amended by inserting a comma after “such interests” the first place it appears. (c) Section 1126(f) of title 11 of the United States Code is amended by— (1) striking out “is deemed” and inserting in lieu thereof “, and each holder of a claim or interest of such class, are conclusively presumed”; (2) striking out “solicititation” and inserting in lieu thereof “solicitation”; and (3) striking out “interest” and inserting in lieu thereof “interests” (d) Section 1126(g) of title 11 of the United States Code is amended by striking out “any payment or compensation” and inserting in lieu thereof “receive or retain any property”. Sec. 511. (a) Section 1127(a) of title 11 of the United States Code is amended by— (1) inserting “of a plan” after “After the proponent”; and (2) inserting “of such plan” after “modification”. (b) Section 1127(b) of title 11 of the United States Code is amended by striking out “the court, after notice and a hearing, confirms such plan, as modified, under section 1129 of this title, and circumstances warrant such modification” and inserting in lieu thereof “circumstances warrant such modification and the court, after notice and a hearing, confirms such plan as modified, under section 1129 of this title”. Sec. 512. (a) Section 1129(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “chapter.” and inserting in lieu thereof “title.”; (2) in paragraph (2), by striking out “chapter.” and inserting in lieu thereof “title.”; (3) by amending paragraph (4) to read as follows: “(4) Any payment made or to be made by the proponent, by the debtor, or by a person issuing securities or acquiring property under the plan, for services or for costs and expenses in or in connection with the case, or in connection with the plan and incident to the case, has been approved by, or is subject to the approval of, the court as reasonable;”; (4) in paragraph (5)(A)(ii), by striking out the period and inserting in lieu thereof “; and”; (5) in paragraph (5)(B), by striking out “The” and inserting in lieu thereof “the”; (6) in paragraph (6), by inserting “governmental” after “Any”; (7) in paragraph (7), by— (A) inserting “of each impaired class of claims or interests” in lieu of “each class”; and (B) striking out “creditor’s” in subparagraph (B) and inserting in lieu thereof “holder’s”; (8) in paragraph (8), by inserting “of claims or interests” after “each class”; and (9) by amending paragraph (10) to read as follows: “(10) If a class of claims is impaired under the plan, at least one class of claims that is impaired under the plan has accepted the plan, determined without including any acceptance of the plan by any insider.”. (b) Section 1129(b) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by striking out “lien” each place it appears and inserting in lieu thereof “liens”; (2) in paragraph (2)(B)(ii), by inserting “under the plan” after “retain”, and (3) in paragraph (2)(C)(i), by— (A) striking out “claim” and inserting in lieu thereof “interest”; and (B) striking out “and the value” and inserting in lieu thereof “or the value”. (c) Section 1129(d) of title 11 of the United States Code is amended by— (1) inserting “the application of” after “avoidance of” the second place it appears; and (2) adding at the end thereof the following new sentence: “In any hearing under this subsection, the governmental unit has the burden of proof on the issue of avoidance.”. Sec. 513. (a) Section 1141(a) of title 11 of the United States Code is amended by striking out “any creditor or equity security holder of, or general partner in,” and inserting in lieu thereof “any creditor, equity security holder, or general partner in”. (b) Section 1141(c) of title 11 of the United States Code is amended to read as follows: “(c) Except as provided in subsections (d)(2) and (d)(3) of this section and except as otherwise provided in the plan or in the order confirming the plan, after confirmation of a plan, the property dealt with by the plan is free and clear of all claims and interests of creditors, equity security holders, and of general partners in the debtor.”. Sec. 514. (a) The heading for section 1142 of title 11 of the United States Code is amended to read as follows: “§ 1142. Implementation of plan”. (b) The item relating to section 1142 in the table of sections for chapter 11 of title 11 of the United States Code is amended by striking out “Execution” and inserting in lieu thereof “Implementation”. (c) Section 1142(a) of title 11 of the United States Code is amended by striking out the comma after “plan” the second place it appears. (d) Section 1142(b) of title 11 of the United States Code is amended by inserting “a” after “by”. Sec. 515. Section 1144 of title 11 of the United States Code is amended by inserting “if and only” after “revoke such order”. Sec. 516. (a) Section 1145(a) of title 11 of the United States Code is amended— (1) in paragraph (3)(B)(i), by inserting “or 15(d)” after “13” and by inserting “or 78o(d)” after “78m”; (2) by amending paragraph (3)(B)(ii) to read as follows: “(ii) in compliance with the disclosure and reporting provision of such applicable section; and”; and (3) in paragraph (4), by striking out “stockholder” each place it appears and inserting in lieu thereof “stockbroker”. (b) Section 1145(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “and except with respect to ordinary trading transactions of an entity that is not an issuer” after “subsection”; (2) in paragraph (1)(C), by striking out “for” and inserting in lieu thereof “from”; (3) in paragraph (2)(a)(1), by striking out “combination” and inserting in lieu thereof “or combining”; and (4) in paragraph (2)(A)(ii), by striking out “among” and inserting in lieu thereof “from or to”. (c) Section 1145(d) of title 11 of the United States Code is amended by striking out “commercial”. Sec. 517. (a) Section 1146(c) of title 11 of the United States Code is amended by striking out “State or local”. (b) Section 1146(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 518. Section 1166 of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 519. Section 1168(b) of title 11 of the United States Code is amended by inserting a comma after “approval”. Sec. 520. Section 1169(c) of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 521. (a) Section 1170(a) of title 11 of the United States Code is amended by inserting “of all or a portion” after “the abandonment”. (b) Section 1170(c) of title 11 of the United States Code is amended by inserting a comma after “abandonment”. (c) Section U70(d)(2) of title 11 of the United States Code is amended by— (1) striking out “the abandonment of a railroad line” and inserting in lieu thereof “such abandonment”; and (2) striking out “termination” each place it appears and inserting in lieu thereof “suspension”. Sec. 522. Section 1171(b) of title 11 of the United States Code is amended by striking out “such” and inserting in lieu thereof “the same”. Sec. 523. Section 1173(a)(4) of title 11 of the United States Code is amended by striking out “compatible” and inserting in lieu thereof “consistent”. Sec. 524. Section 1301(c)(3) of title 11 of the United States Code is amended by inserting “continuation of’ after “by”. Sec. 525. (a) Section 1302(b) of title 11 of the United States Code as Ante, p. 356. amended by section 314 is amended by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively and by inserting after paragraph (2) the following new paragraph: “(3) dispose of, under regulations issued by the Director of the Administrative Office of the United States Courts, moneys received or to be received in a case under chapter XIII of the Bankruptcy Act; and”. (b) Section 1302(e) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “fix” and inserting in lieu thereof “set for such individual”; (2) in paragraph (1)(A), by striking out “for such individual”; and (3) in paragraph (2)(A), by— (A) striking out “of” and inserting in lieu thereof “received by”; and (B) striking out “upon all payments” and inserting in lieu thereof “of all such payments made”. Sec. 526. Section 1304(b) of title 11 of the United States Code is amended by striking out the comma after “of the debtor”. Sec. 527. (a) Section 1307(b) of title 11 of the United States Code is amended by inserting a comma after “time”. (b) Section 1307(c) of title 11 of the United States Code as amended by section 315 is amended— Ante, p. 356. (1) in paragraph (5), as redesignated by inserting “a request made for” before “additional”; (2) in paragraph (7), as redesignated by striking out “and” after the semicolon and inserting in lieu thereof “or”; and (3) in paragraph (8), as redesignated by inserting “other than completion of payments under the plan” after ‘In the plan”. Sec. 528. (a) Section 1322(a)(2) of title 11 of the United States Code is amended by inserting a comma after “payments”. (b) Section 1322(b) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “, or leave unaffected the rights of holders of any class of claims” before the semicolon; (2) in paragraph (4), by inserting “other” after “claim or any”; (3) in paragraph (7), by— (A) inserting “subject to section 365 of this title,” before “provide”; (B) striking out “or rejection” and inserting in lieu thereof rejection, or assignment”; and (C) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”; and (4) in paragraph (8), by striking out “any”. Sec. 529. Section 1324 of title 11 of the United States Code is amended by striking out “the” the second place it appears. Sec. 530. Section 1325(a)(1) of title 11 of the United States Code is amended by inserting “the” before “other”. Sec. 531. Section 1326(b)(2) of title 11 of the United States Code as amended by section 318 is amended by inserting “of this title” after Ante, p. 357. “1302(d)”. Sec. 532. Section 1328(e) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “by the debtor” after “obtained”; and (2) in paragraph (2), by striking out “knowledge of such fraud came to the requesting party” and inserting in lieu thereof “the requesting party did not know of such fraud until”. Sec. 533. Section 1329(a) of title 11 of the United States Code is amended— (1) by inserting “of the plan” after “confirmation”; (2) by striking out “a plan” and inserting in lieu thereof “such plan”; and (3) in paragraph (3), by striking out the comma. Sec. 534. Section 151302(a) of title 11 of the United States Code is amended by inserting “, or shall appoint a disinterested person to serve,” after “The United States trustee shall serve”. Subtitle J— Collective Bargaining Agreements Sec. 541. (a) Title 11 of the United States Code is amended by adding after section 1112 the following new section: “§ 1113. Rejection of collective bargaining agreements “(a) The debtor in possession, or the trustee if one has been appointed under the provisions of this chapter, other than a trustee 11 USC 1161. 45 USC 151. in a case covered by subchapter IV of this chapter and by title I of the Railway Labor Act, may assume or reject a collective bargaining agreement only in accordance with the provisions of this section. “(b) (1) Subsequent to filing a petition and prior to filing an application seeking rejection of a collective bargaining agreement, the debtor in possession or trustee (hereinafter in this section ‘trustee’ shall include a debtor in possession), shall— “(A) make a proposal to the authorized representative of the employees covered by such agreement, based on the most complete and reliable information available at the time of such proposal, which provides for those necessary modifications in the employees benefits and protections that are necessary to permit the reorganization of the debtor and assures that all creditors, the debtor and all of the affected parties are treated fairly and equitably; and “(B) provide, subject to subsection (d)(3), the representative of the employees with such relevant information as is necessary to evaluate the proposal. “(2) During the period beginning on the date of the making of a proposal provided for in paragraph (1) and ending on the date of the hearing provided for in subsection (d)(1), the trustee shall meet, at reasonable times, with the authorized representative to confer in good faith in attempting to reach mutually satisfactory modifications of such agreement. “(c) The court shall approve an application for rejection of a collective bargaining agreement only if the court finds that— “(1) the trustee has, prior to the hearing, made a proposal that fulfills the requirements of subsection (b)(1); “(2) the authorized representative of the employees has refused to accept such proposal without good cause; and “(3) the balance of the equities clearly favors rejection of such agreement. “(d) (1) Upon the filing of an application for rejection the court shall schedule a hearing to be held not later than fourteen days after the date of the filing of such application. All interested parties may appear and be heard at such hearing. Adequate notice shall be provided to such parties at least ten days before the date of such nearing. The court may extend the time for the commencement of such hearing for a period not exceeding seven days where the circumstances of the case, and the interests of justice require such extension, or for additional periods of time to which the trustee and representative agree. “(2) The court shall rule on such application for rejection within thirty days after the date of the commencement of the hearing. In the interests of justice, the court may extend such time for ruling for such additional period as the trustee and the employees’ representative may agree to. If the court does not rule on such application within thirty days after the date of the commencement of the hearing, or within such additional time as the trustee and the employees’ representative may agree to, the trustee may terminate or alter any provisions of the collective bargaining agreement pending the ruling of the court on such application. “(3) The court may enter such protective orders, consistent with Confidentiality. the need of the authorized representative of the employee to evaluate the trustee’s proposal and the application for rejection, as may be necessary to prevent disclosure of information provided to such representative where such disclosure could compromise the position of the debtor with respect to its competitors in the industry in which it is engaged. “(e) If during a period when the collective bargaining agreement continues in effect, and if essential to the continuation of the debtor’s business, or in order to avoid irreparable damage to the estate, the court, after notice and a hearing, may authorize the trustee to implement interim changes in the terms, conditions, wages, benefits, or work rules provided by a collective bargaining agreement. Any hearing under this paragraph shall be scheduled in accordance with the needs of the trustee. The implementation of such interim changes shall not render the application for rejection moot. “(f) No provision of this title shall be construed to permit a trustee to unilaterally terminate or alter any provisions of a collective bargaining agreement prior to compliance with the provisions of this section.”. (b) The table of sections for chapter 11 of title 11, United States Code, is amended by inserting after the item relating to section 1112 the following new item: “1113. Rejection of collective bargaining agreements.”. (c) The amendments made by this section shall become effective Effective date. 11 USC 1113 note. upon the date of enactment of this Act; provided that this section shall not apply to cases filed under title 11 of the United States Code which were commenced prior to the date of enactment of this section. Subtitle K— Miscellaneous Sec. 551. If any provision of this title or any amendment made by Provisions held invalid. 11 USC 101 note. this title, or the application thereof to any person or circumstance is held invalid, the provisions of every other part, and their application shall not be affected thereby. Sec. 552. Notwithstanding the provisions of section 8331(22) of title 5, United States Code, or any other provision of law, for purposes of section 8339(n) of title 5, United States Code, any individual appointed under section 34 of the Bankruptcy Act who served as a United States bankruptcy judge for Ante, p. 343. the district of Oregon or for the Central district of California until March 31, 1984, shall receive an annuity computed with respect to his service as a referee in bankruptcy and as a bankruptcy judge, and his military service (not exceeding five years) creditable under section 8332 of title 5, United States Code, by multiplying 2¼ per centum of his average annual pay by the years of that service. Sec. 553. (a) Except as otherwise provided in this section the amendments made by this title shall become effective to cases filed 90 days after the date of enactment of this Act. (b) The amendments made by section 426(b) shall become effective upon the date of enactment of this Act. (c) The amendments made by subtitle J, shall become effective as provided in section 541(c).Pub. L. 98–353 title III · 98 Stat. 333
Added · 11 U.S.C. § 101(39)
Pub. L. 98–353, §§ 391(2), 421(j)(2), added par. (36)
Redesignated · 11 U.S.C. § 101(39)
Pub. L. 98–353, §§ 391(2), 421(j)(2), redesignated such par. (36) as (39). Former par. (39) redesignated successively as (41) and again as (45)
Source evidence
Code amendment note
Par. (39). Pub. L. 98–353, §§ 391(2), 421(j)(2), added par. (36) and redesignated such par. (36) as (39). Former par. (39) redesignated successively as (41) and again as (45).Enacted provision · exact public law
TITLE III— AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE Subtitle A— Consumer Credit Amendments Sec. 301. Section 109 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Notwithstanding any other provision of this section, no individual may be a debtor under this title who has been a debtor in a case pending under this title at any time in the preceding 180 days if— “(1) the case was dismissed by the court for willful failure of the debtor to abide by orders of the court, or to appear before the court in proper prosecution of the case; or “(2) the debtor requested and obtained the voluntary dismissal of the case following the filing of a request for relief from the automatic stay provided by section 362 of this title.”. Sec. 302. Section 342 of title 11, United States Code, is amended— (1) by inserting “(a)” before “There shall be given”, and (2) by adding at the end thereof the following new subsection: “(b) Prior to the commencement of a case under this title by an individual whose debts are primarily consumer debts, the clerk shall give written notice to such individual that indicates each chapter of this title under which such individual may proceed.”. Sec. 303. Section 349(a) of title 11, United States Code, is amended by inserting before the period at the end thereof nor does the dismissal of a case under this title prejudice the debtor with regard to the filing of a subsequent petition under this title, except as Supra. provided in section 109(f) of this title”. Sec. 304. Section 362 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(h) An individual injured by any willful violation of a stay provided by this section shall recover actual damages, including costs and attorneys’ fees, and, in appropriate circumstances, may recover punitive damages.”. Sec. 305. Section 521 of title 11, United States Code, is amended— (1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, (2) in paragraph (1) by inserting “a schedule of current income and current expenditures,” after “liabilities,”, and (3) by inserting after paragraph (1) the following new paragraph: “(2) if an individual debtor’s schedule of assets and liabilities includes consumer debts which are secured by property of the estate— “(A) within thirty days after the date of the filing of a petition under chapter 7 of this title or on or before the date of the meeting of creditors, whichever is earlier, or within such additional time as the court, for cause, within such period fixes, the debtor shall file with the clerk a statement of his intention with respect to the retention or surrender of such property and, if applicable, specifying that such property is claimed as exempt, that the debtor intends to redeem such property, or that the debtor intends to reaffirm debts secured by such property; “(B) within forty-five days after the filing of a notice of intent under this section, or within such additional time as the court, for cause, within such forty-five day period fixes, the debtor shall perform his intention with respect to such property, as specified by subparagraph (A) of this paragraph; and “(C) nothing in subparagraphs (A) and (B) of this paragraph shall alter the debtor’s or the trustee’s rights with regard to such property under this title;”. Sec. 306. (a) Section 522(b) of title 11, United States Code, is amended by striking out “Notwithstanding” and all that follows through “either—” and inserting in lieu thereof the following: “Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (1) or, in the alternative, paragraph (2) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Bankruptcy Rules, one 11 USC app. debtor may not elect to exempt property listed in paragraph (1) and the other debtor elect to exempt property listed in paragraph (2) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (1), where such election is permitted under the law of the jurisdiction where the case is filed. Such property is—”. (b) Section 522(d)(3) of title 11, United States Code, is amended by inserting “or $4,000 in aggregate value” after “item”. (c) Section 522(d)(5) of title 11, United States Code, is amended to read as follows: “(5) The debtor’s aggregate interest in any property, not to exceed in value $400 plus up to $3,750 of any unused amount of the exemption provided under paragraph (1) of this subsection”. (d) Section 522(m) of title 11, United States Code, is amended to read as follows: “(m) Subject to the limitation in subsection (b), this section shall apply separately with respect to each debtor in a joint case.”. Sec. 307. (a) Section 523(a)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “or” at the end thereof, (2) in subparagraph (B) by inserting “or” at the end thereof, and (3) by adding at the end thereof the following new subparagraph: “(C) for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $500 for ‘luxury goods or services’ incurred by an individual debtor on or within forty days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within twenty days before the order for relief under this title, are presumed to be nondischargeable; ‘luxury goods or services’ do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.);”. (b) Section 523(d) of title 11, United States Code, is amended to read as follows: “(d) If a creditor requests a determination of dischargeability of a consumer debt under subsection (a)(2) of this section, and such debt is discharged, the court shall grant judgment in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding if the court finds that the position of the creditor was not substantially justified, except that the court shall not award such costs and fees if special circumstances would make the award unjust.”. Sec. 308. (a) Section 524(a)(2) of title 11, United States Code, is amended by striking out “or from property of the debtor,”. (b) Section 524(c) of title 11, United States Code, is amended— (1) by striking out paragraph (2), (2) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively, and (3) by inserting after paragraph (1) the following new paragraphs: “(2) such agreement contains a clear and conspicuous statement which advises the debtor that the agreement may be rescinded at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of rescission to the holder of such claim; “(3) such agreement has been filed with the court and, if applicable, accompanied by a declaration or an affidavit of the attorney that represented the debtor during the course of negotiating an agreement under this subsection, which states that such agreement— “(A) represents a fully informed and voluntary agreement by the debtor; and “(B) does not impose an undue hardship on the debtor or a dependent of the debtor; “(4) the debtor has not rescinded such agreement at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of recission to the holder of such claim;” and (4) by amending paragraph (6), as so redesignated, to read as follows: “(6) (A) in a case concerning an individual who was not represented by an attorney during the course of negotiating an agreement under this subsection, the court approves such agreement as— “(i) not imposing an undue hardship on the debtor or a dependent of the debtor; and “(ii) in the best interest of the debtor. “(B) Subparagraph (A) shall not apply to the extent that such debt is a consumer debt secured by real property.”. (c) Section 524(d)(2) of title 11, United States Code, is amended by striking out “subsection (c)(4)” and inserting in lieu thereof “subsection (c)(6)”. (e) Section 524 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Nothing contained in subsection (c) or (d) of this section prevents a debtor from voluntarily repaying any debt.”. Sec. 309. Section 525 of title 11, United States Code, is amended— (1) by inserting “(a)” before “Except”, (2) by inserting “the” before “Perishable”, and (3) by adding at the end thereof the following new subsection: Employment and unemployment. Discrimination, prohibition. 11 USC note prec. 101. “(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt— “(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act; “(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or “(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.”. Sec. 310. Section 547(c) of title 11, United States Code, is amended— (1) in paragraph (5) by striking out “or” at the end thereof, (2) in paragraph (6) by striking out the period at the end thereof and inserting in lieu thereof “; or”, and (3) by adding at the end thereof the following new paragraph: “(7) if, in a case filed by an individual debtor whose debts are primarily consumer debts, the aggregate value of all property that constitutes or is affected by such transfer is less than $600.”. Sec. 311. (a) Section 704 of title 11, United States Code, is amended— (1) by redesignating paragraphs (3), (4), (5), (6), (7), and (8) as paragraphs (4), (5), (6), (7), (8), and (9), respectively, and (2) by inserting after paragraph (2) the following new paragraph: “(3) ensure that the debtor shall perform his intention as specified in section 521(2)(B) of this title;”. Ante, p. 352. (b) (1) Section 1106(a)(1) of title 11, United States Code, is amended by striking out “704(4), 704(6), 704(7), and 704(8)” and inserting in lieu thereof “704(5), 704(7), 704(8), and 704(9)”. (2) Section 1304(c) of title 11, United States Code, is amended by striking out “section 704(7)” and inserting in lieu thereof “section 704(8)”. (3) Section 15103(f) of title 11, United States Code, is amended by striking out “704(8),” and inserting in lieu thereof “704(9),”. (4) Section 151301(b)(1) of title 11, United States Code, is amended 11 USC 151302. by striking out “and 704(8)” and inserting in lieu thereof “, 704(7), and 704(9)”. Sec. 312. Section 707 of title 11, United States Code, is amended— (1) by inserting “(a)” before “The court may” and (2) by adding at the end thereof the following new subsection: “(b) After notice and a hearing, the court, on its own motion and not at the request or suggestion of any party in interest, may dismiss a case filed by an individual debtor under this chapter whose debts are primarily consumer debts if it finds that the granting of relief would be a substantial abuse of the provisions of this chapter. There shall be a presumption in favor of granting the relief requested by the debtor.”. Sec. 313. Section 1301 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(d) Twenty days after the filing of a request under subsection (c)(2) of this section for relief from the stay provided by subsection (a) of this section, such stay is terminated with respect to the party in interest making such request, unless the debtor or any individual that is liable on such debt with the debtor files and serves upon such party in interest a written objection to the taking of the proposed action.”. Sec. 314. Section 1302(b) of title 11, United States Code, is amended— (1) by amending paragraph (1) to read as follows: “(1) perform the duties specified in sections 704(2), 704(3), 704(4), 704(5), 704(6), 704(7), and 704(9) of this title;”; (2) in paragraph (2) by striking out “and” at the end thereof, (3) in paragraph (3) by striking out the period and inserting in lieu thereof “; and”, and (4) by adding at the end thereof the following new paragraph: “(4) ensure that the debtor commences making timely payments under section 1326 of this title.”. Sec. 315. Section 1307(c) of title 11, United States Code, is amended— (1) by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), respectively, and (2) by inserting after paragraph (3) the following new paragraph: “(4) failure to commence making timely payments under section 1326 of this title;”. Sec. 316. Section 1322(b)(1) of title 11, United States Code, is amended to read as follows: “(1) designate a class or classes of unsecured claims, as provided in section 1122 of this title, but may not discriminate unfairly against any class so designated; however, such plan may treat claims for a consumer debt of the debtor if an individual is liable on such consumer debt with the debtor differently than other unsecured claims;”. Sec. 317. Section 1325 of title 11, United States Code, is amended— (1) in subsection (a) by striking out “The” and inserting in lieu thereof “Except as provided in subsection (b), the”, (2) by redesignating subsection (b) as subsection (c), and (3) by inserting after subsection (a) the following new subsection: “(b) (1) If the trustee or the holder of an allowed unsecured claim objects to the confirmation of the plan, then the court may not approve the plan unless, as of the effective date of the plan— “(A) the value of the property to be distributed under the plan on account of such claim is not less than the amount of such claim; or “(B) the plan provides that all of the debtor’s projected disposable income to be received in the three-year period beginning on the date that the first payment is due under the plan will be applied to make payments under the plan. “(2) For purposes of this subsection, disposable income’ means income which is received by the debtor and which is not reasonably necessary to be expended— “(A) for the maintenance or support of the debtor or a dependent of the debtor; or “(B) if the debtor is engaged in business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business.”. Sec. 318. (a) Section 1326 of title 11, United States Code, is amended— (1) by redesignating subsections (a) and (b) as subsections (h) and (c), respectively, and (2) by inserting before such subsections the following new subsection: “(a) (1) Unless the court orders otherwise, the debtor shall commence making the payments proposed by a plan within 30 days after the plan is filed. “(2) A payment made under this subsection shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan. If a plan is not confirmed, the trustee shall return any such payments to the debtor, after deducting any unpaid claim allowed under section 503(b) of this title.”. (b) Section 15103(f) of title 11, United States Code, is amended by striking out “1326(a),” and inserting in lieu thereof “1326(b),”. Sec. 319. Section 1329(a) of title 11, United States Code, is amended by striking out “At” and all that follows through “modified to—”, and inserting in lieu thereof the following: “At any time after confirmation but before the completion of payments under a plan, the plan may be modified, upon request of the debtor, the trustee, or the holder of an allowed unsecured claim, to—”. Sec. 320. The Supreme Court shall prescribe general rules implementing Supreme Court of U.S. 28 USC 2075 note. Ante, p. 355. the practice and procedure to be followed under section 707(b) of title 11, United States Code. Section 2075 of title 28, United States Code, shall apply with respect to the general rules prescribed under this section. Sec. 321. Rule 2002 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision: “(n) In a voluntary case commenced under the Code by an individual debtor whose debts are primarily consumer debts, the clerk, or some other person as the court may direct, shall give the trustee and all creditors notice by mail of the order for relief not more than 20 days after the entry of such order.”. Sec. 322. Official Bankruptcy Form No. 1, referred to in Rule 1002 of the Bankruptcy Rules, is amended— 11 USC app. (1) by inserting after paragraph (5) the following: “(6) [If petitioner is an individual whose debts are primarily consumer debts.] Petitioner is aware that [he or she] may proceed under chapter 7 or 13 of title 11, United States Code, 11 USC 701 et seq.. 1301 et seq. understands the relief available under each such chapter, and chooses to proceed under chapter 7 of such title. “(7) [If petitioner is an individual whose debts are primarily consumer debts and such petitioner is represented by an attorney.] A declaration or an affidavit in the form of Exhibit ‘B’ is attached to and made a part of this petition.”, and (2) by inserting after Exhibit “A” at the end thereof the following new exhibit: “Exhibit ‘B’ “[If petitioner is an individual whose debts are primarily consumer debts, this Exhibit ‘B’ shall be completed and attached to the petition pursuant to paragraph (7) thereof.] Sec. 323. Section 408(c) of the Act of November 6, 1978 (Public Law 95–598; 92 Stat. 2687(c)), as amended by the Act of November 28, 1983 (Public Law 98–166; 97 Stat. 1071), is amended by striking out “September 30, 1984” and inserting in lieu thereof “September 30, 1986”. Sec. 324. Section 1103(b) of title 11, United States Code, is amended by striking out “A person” and inserting in lieu thereof “An attorney or accountant” Subtitle B— Amendments Relating to Grain Storage Facility Bankruptcy Sec. 350. Section 507(a) of title 11, United States Code, is amended— (1) by striking out “(5) Fifth” and inserting in lieu thereof “(6) Sixth” (2) by striking out “(6) Sixth” and inserting in lieu thereof “(7) Seventh”; and (3) by adding after paragraph (4) the following: “(5) Fifth, allowed unsecured claims of persons— “(A) engaged in the production or raising of grain, as Post, p. 359. defined in section 557(b)(1) of this title, against a debtor who owns or operates a grain storage facility, as defined in section 557(b)(2) of this title, for grain or the proceeds of grain, or “(B) engaged as a United States fisherman against a debtor who has acquired fish or fish produce from a fisherman through a safe or conversion, and who is engaged in operating a fish produce storage or processing facility— but only to the extent of $2,000 for each such individual.”. Sec. 351. Section 546 of title 11, United States Code, is amended— (1) in the first sentence of subsection (c) thereof, by striking out “The” and inserting in lieu thereof “Except as provided in subsection (d) of this section, the”; and (2) by redesignating subsection (d) as subsection (e); and (3) by inserting after subsection (c) the following: In the case of a seller who is a producer of grain sold to a grain storage facility, owned or operated by the debtor, in the ordinary course of such seller’s business (as such terms are defined Post, p. 359. in section 557 of this title) or in the case of a United States fisherman who has caught fish sold to a fish processing facility owned or operated by the debtor in the ordinary course of such fisherman’s business, the rights and powers of the trustee under sections 544(a), 545, 547, and 549 of this title are subject to any statutory or common law right of such producer or fisherman to reclaim such grain or fish if the debtor has received such grain or fish while insolvent, but— “(1) such producer or fisherman may not reclaim any grain or Claims. fish unless such producer or fisherman demands, in writing, reclamation of such grain or fish before ten days after receipt thereof by the debtor; and “(2) the court may deny reclamation to such a producer or fisherman with a right of reclamation that has made such a demand only if the court secures such claim by a lien.”. Sec. 352. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 557. Expedited determination of interests in, and abandonment or other disposition of grain assets “(a) This section applies only in a case concerning a debtor that owns or operates a grain storage facility and only with respect to grain and the proceeds of grain. This section does not affect the application of any other section of this title to property other than grain and proceeds of grain. “(b) In this section— “(1) ‘grain’ means wheat, corn, flaxseed, grain sorghum, barley, oats, rye, soybeans, other dry edible beans, or rice; “(2) ‘grain storage facility’ means a site or physical structure regularly used to store grain for producers, or to store grain acquired from prodùcers for resale; and “(3) ‘producer’ means an entity which engages in the growing of grain. “(c) (1) Notwithstanding sections 362, 363, 365, and 554 of this title, on the court’s own motion the court may, and on the request of the trustee or an entity that claims an interest in grain or the proceeds of grain the court shall, expedite the procedures for the determination of interests in and the disposition of grain and the proceeds of grain, by shortening to the greatest extent feasible such time periods as are otherwise applicable for such procedures and by establishing, by order, a timetable having a duration of not to exceed 120 days for the completion of the applicable procedure specified in subsection (d) of this section. Such time periods and such timetable may be modified by the court, for cause, in accordance with subsection (f) of this section. “(2) The court shall determine the extent to which such time periods shall be shortened, based upon— “(A) any need of an entity claiming an interest in such grain or the proceeds of grain for a prompt determination of such interest; “(B) any need of such entity for a prompt disposition of such grain; “(C) the market for such grain; “(D) the conditions under which such grain is stored; “(E) the costs of continued storage or disposition of such grain; “(F) the orderly administration of the estate; “(G) the appropriate opportunity for an entity to assert an interest in such grain; and “(H) such other considerations as are relevant to the need to expedite such procedures in the case. “(d) The procedures that may be expedited under subsection (c) of this section include— “(1) the filing of and response to— “(A) a claim of ownership; “(B) a proof of claim; “(C) a request for abandonment; “(D) a request for relief from the stay of action against property under section 362(a) of this title; “(E) a request for determination of secured status; “(F) a request for determination of whether such grain or the proceeds of grain— “(i) is property of the estate; “(ii) must be turned over to the estate; or “(iii) may be used, sold, or leased; and “(G) any other request for determination of an interest in such grain or the proceeds of grain; “(2) the disposition of such grain or the proceeds of grain, before or after determination of interests in such grain or the proceeds of grain, by way of— “(A) sale of such grain; “(B) abandonment; “(C) distribution; or “(D) such other method as is equitable in the case; “(3) subject to sections 701, 702, 703, 1104, and 1302 of this title, the appointment of a trustee or examiner and the retention and compensation of any professional person required to assist with respect to matters relevant to the determination of interests in or disposition of such grain or the proceeds of grain; and “(4) the determination of any dispute concerning a matter specified in paragraph (1), (2), or (3) of this subsection. “(e) (1) Any governmental unit that has regulatory jurisdiction over the operation or liquidation of the debtor or the debtor’s business shall be given notice of any request made or order entered under subsection (c) of this section. “(2) Any such governmental unit may raise, and may appear and be heard on, any issue relating to grain or the proceeds of grain in a case in which a request is made, or an order is entered, under subsection (c) of this section. “(3) The trustee shall consult with such governmental unit before taking any action relating to the disposition of grain in the possession, custody, or control of the debtor or the estate. “(f) The court may extend the period for final disposition of grain or the proceeds of grain under this section beyond 120 days if the court finds that— “(1) the interests of justice so require in light of the complexity of the case; and “(2) the interests of those claimants entitled to distribution of grain or the proceeds of grain will not be materially injured by such additional delay. “(g) Unless an order establishing an expedited procedure under subsection (c) of this section, or determining any interest in or approving any disposition of grain or the proceeds of grain, is stayed pending appeal— “(1) the reversal or modification of such order on appeal does not affect the validity of any procedure, determination, or disposition that occurs before such reversal or modification, whether or not any entity knew of the pendency of the appeal; and “(2) neither the court nor the trustee may delay, due to the appeal of such order, any proceeding in the case in which such order is issued. “(h) (1) The trustee may recover from grain and the proceeds of grain the reasonable and necessary costs and expenses allowable under section 503(b) of this title attributable to preserving or disposing of grain or the proceeds of grain, but may not recover from such grain or the proceeds of grain any other costs or expenses. “(2) Notwithstanding section 326(a) of this title, the dollar amounts of money specified in such section include the value, as of the date of disposition, of any grain that the trustee distributes in kind. “(i) In all cases where the quantity of a specific type of grain held by a debtor operating a grain storage facility exceeds ten thousand bushels, such grain shall be sold by the trustee and the assets thereof distributed in accordance with the provisions of this section.”. (b) The table of sections of chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: ‘557 Expedited determination of interests in and disposition of grain.”. Sec. 353. Section 901(a) of title 11, United States Code, is amended by inserting “557,” after “553,”. Sec. 354. Rule 3001 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision “(g) To the extent not inconsistent with the United States Warehouse Act or applicable State law, a warehouse receipt, scale ticket, or similar document of the type routinely issued as evidence of title by a grain storage facility, as defined in section 557 of title 11, shall constitute prima facie evidence of the validity and amount of a claim of ownership of a quantity of grain ”. Subtitle C— Leasehold Management Amendments Sec. 361. This subtitle may be cited as the “Leasehold Management Bankruptcy Amendments Act of 1983”. Sec. 362. (a) Section 365 of title 11, United States Code, is amended by amending subsections (a), (b), (c), and (d) to read as follows: “(a) Except as provided in sections 765 and 766 of this title and in subsections (b), (c), and (d) of this section, the trustee, subject to the court’s approval, may assume or reject any executory contract or unexpired lease of the debtor. “(b) (1) If there has been a default in an executory contract or unexpired lease of the debtor, the trustee may not assume such contract or lease unless, at the time of assumption of such contract or lease, the trustee— “(A) cures, or provides adequate assurance that the trustee will promptly cure, such default; “(B) compensates, or provides adequate assurance that the trustee will promptly compensate, a party other than the debtor to such contract or lease, for any actual pecuniary loss to such party resulting from such default; and “(C) provides adequate assurance of future performance under such contract or lease. “(2) Paragraph (1) of this subsection does not apply to a default that is a breach of a provision relating to— “(A) the insolvency or financial condition of the debtor at any time before the closing of the case; “(B) the commencement of a case under this title; or “(C) the appointment of or taking possession by a trustee in a case under this title or a custodian before such commencement. “(3) For the purposes of paragraph (1) of this subsection and paragraph (2)(B) of subsection (t), adequate assurance of future performance of a lease of real property in a shopping center includes adequate assurance— “(A) of the source of rent and other consideration due under such lease, and in the case of an assignment, that the financial condition and operating performance of the proposed assignee and its guarantors, if any, shall be similar to the financial condition and operating performance of the debtor and its guarantors, if any, as of the time the debtor became the lessee under the lease; “(B) that any percentage rent due under such lease will not decline substantially; “(C) that assumption or assignment of such lease is subject to all the provisions thereof, including (but not limited to) provisions such as a radius, location, use, or exclusivity provision, and will not breach any such provision contained in any other lease, financing agreement, or master agreement relating to such shopping center; and “(D) that assumption or assignment of such lease will not disrupt any tenant mix or balance in such shopping center. “(4) Notwithstanding any other provision of this section, if there has been a default in an unexpired lease of the debtor, other than a default of a kind specified in paragraph (2) of this subsection, the trustee may not require a lessor to provide services or supplies incidental to such lease before assumption of such lease unless the lessor is compensated under the terms of such lease for any services and supplies provided under such lease before assumption of such lease. “(c) The trustee may not assume or assign any executory contract or unexpired lease of the debtor, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties, if— “(1) (A) applicable law excuses a party, other than the debtor, to such contract or lease from accepting performance from or rendering performance to an entity other than the debtor or the debtor in possession or an assignee of such contract or lease, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties; and “(B) such party does not consent to such assumption or assignment; or “(2) such contract is a contract to make a loan, or extend other debt financing or financial accommodations, to or for the benefit of the debtor, or to issue a security of the debtor; or “(3) such lease of nonresidential real property has been terminated under applicable nonbankruptcy law prior to the order for relief. “(d) (1) In a case under chapter 7 of this title, if the trustee does not assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor within 60 days after the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such contract or lease is deemed rejected. “(2) In a case under chapter 9, 11, or 13 of this title, the trustee 11 USC 901 et seq., 1101 et seq., 1301 et seq. may assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor at any time before the confirmation of a plan but the court, on the request of any party to such contract or lease, may order the trustee to determine within a specified period of time whether to assume or reject such contract or lease. “(3) The trustee shall timely perform all the obligations of the debtor, except those specified in section 365(b)(2), arising from and Ante, p. 361. after the order for relief under any unexpired lease of nonresidential real property, until such lease is assumed or rejected, notwithstanding section 503(b)(1) of this title. The court may extend, for cause, the time for performance of any such obligation that arises within 60 days after the date of the order for relief, but the time for performance shall not be extended beyond such 60-day period. This subsection shall not be deemed to affect the trustee’s obligations under the provisions of subsection (b) or (f) of this section. Acceptance of any such performance does not constitute waiver or relinquishment of the lessor’s rights under such lease or under this title. “(4) Notwithstanding paragraphs (1) and (2), in a case under any chapter of this title, if the trustee does not assume or reject an unexpired lease of nonresidential real property under which the debtor is the lessee within 60 days after the date of the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such lease is deemed rejected, and the trustee shall immediately surrender such nonresidential real property to the lessor.”. (b) Section 365 is further amended by adding at the end thereof the following new subsection: “(l) If an unexpired lease under which the debtor is the lessee is assigned pursuant to this section, the lessor of the property may require a deposit or other security for the performance of the debtor’s obligations under the lease substantially the same as would have been required by the landlord upon the initial leasing to a similar tenant. “(m) For purposes of this section 365 and sections 541(b)(2) and Real property. Infra. 362(b)(9), leases of real property shall include any rental agreement to use real property.”. Sec. 363. (a) Section 541(b) of title 11, United States Code, is amended to read as follows: “(b) Property of the estate does not include— “(1) any power that the debtor may exercise solely for the benefit of an entity other than the debtor; or “(2) any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease before the commencement of the case under this title, and ceases to include any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease during the case.”. (b) Section 362(b) of title 11 of the United States Code is amended by— (1) striking out “or” at the end of paragraph (7), (2) replacing the period after paragraph (8) with “; or”, and (3) adding the following after paragraph (8): “(9) under subsection (a) of this section, of any act by a lessor to the debtor under a lease of nonresidential real property that has terminated by the expiration of the stated term of the lease before the commencement of or during a case under this title to obtain possession of such property.”. Subtitle D— Amendments to Title 11, Section 523 Relating to the Discharge of Debts Incurred by Persons Driving While Intoxicated Sec. 371. Section 523(a) of title 11, United States Code, is amended by— (1) striking out “or” at the end of paragraph (8); and (2) by adding the following new paragraph after such paragraph: “(9) to any entity, to the extent that such debt arises from a judgment or consent decree entered in a court of record against the debtor wherein liability was incurred by such debtor as a result of the debtor’s operation of a motor vehicle while legally intoxicated under the laws or regulations of any jurisdiction within the United States or its territories wherein such motor vehicle was operated and within which such liability was incurred; or”. Subtitle E— Referees Salary and Expense Fund Sec. 381. This subtitle may be cited as the “Referees Salary and Expense Fund Act of 1984”. Sec. 382. Section 403(e) of the Act of November 6, 1978 (92 Stat. 2683; Public Law 95–598), is amended to read as follows: “(e) Notwithstanding subsection (a) of this section— “(1) a fee may not be charged under section 40c(2)(a) of the Bankruptcy Act in a case pending under such Act after September 30, 1979, to the extent that such fee exceeds $200,000; “(2) a fee may not be charged under section 40c(2)(b) of the Bankruptcy Act in a case in which the plan is confirmed after September 30, 1978, or in which the final determination as to the amount of such fee is made after September 30, 1979, notwithstanding an earlier confirmation date, to the extent that such fee exceeds $100,000; “(3) after September 30, 1979, all moneys collected for payment into the referees’ salary and expense fund in cases filed 11 USC note prec. 101. under the Bankruptcy Act shall be collected and paid into the general fund of the Treasury; and “(4) any balance in the referees’ salary and expense fund in the Treasury on October 1, 1979, shall be transferred to the general fund of the Treasury and the referees’ salary and expense fund account shall be closed.”. Subtitle F— Amendments Regarding Repurchase Agreements Sec. 391. Section 101 of title 11, United States Code, is amended— (1) by redesignating paragraphs (35), (36), (37), (38), (39), (40), and (41), as paragraphs (37), (38), (39), (40), (41), (42), and (43), respectively, and (2) by inserting after paragraph (34) the following new paragraphs: “(35) ‘repo participant’ means an entity that, on any day during the period beginning 90 days before the date of the filing of the petition, has an outstanding repurchase agreement with the debtor; “(36) ‘repurchase agreement’ (which definition also applies to Securities. a reverse repurchase agreement) means an agreement, including related terms, which provides for the transfer of certificates of deposit, eligible bankers’ acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, or securities with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, or securities as described above, at a date certain not later than one year after such transfers or on demand, against the transfer of funds;”. Sec. 392. Section 362(b) of title 11, United States Code, is Ante, p. 363. amended— (a) by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively, and (b) by inserting after paragraph (6) the following new paragraph: “(7) under subsection (a) of this section, of the setoff by a repo participant, of any mutual debt and claim under or in connection with repurchase agreements that constitutes the setoff of a claim against the debtor for a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, arising out of repurchase agreements against cash, securities, or other property held by or due from such repo participant to margin, guarantee, secure or settle repurchase agreements;”. Sec. 393. Section 546 of title 11, United States Code, is amended by Ante, p. 358. inserting after subsection (e), as redesignated by section 251, the following: Notwithstanding sections 544, 545, 547, 548(a)(2), and 548(b) of this title, the trustee may not avoid a transfer that is a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, made by or to a repo participant, in connection with a repurchase agreement and that is made before the commencement of the case, except under section 548(a)(1) of this title.”. Sec. 394. Section 548(d)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “and” at the end thereof; (2) in subparagraph (B) by striking out the period at the end thereof and inserting in lieu thereof “; and”; and by inserting after paragraph (B) the following new subparagraph: “(C) a repo participant that receives a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, in connection with a repurchase agreement, takes for value to the extent of such payment.”. Sec. 395. Section 553(b)(1) of title 11, United States Code, is amended by inserting “, 362(b)(7),” after “362(b)(6)”. Sec. 396. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 559. Contractual right to liquidate a repurchase agreement “The exercise of a contractual right of a repo participant to cause the liquidation of a repurchase agreement because of a condition of the kind specified in section 365(e)(1) of this title shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title, unless, where the debtor is a stockbroker or securities clearing agency, such order is authorized under the provisions of the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) or any statute administered by the Securities and Exchange Commission. In the event that a repo participant liquidates one or more repurchase agreements with a debtor and under the terms of one or more such agreements has agreed to deliver assets subject to repurchase agreements to the debtor, any excess of the market prices received on liquidation of such assets (or if any such assets are not disposed of on the date of liquidation of such repurchase agreements, at the prices available at the time of liquidation of such repurchase agreements from a generally recognized source or the most recent closing bid quotation from such a source) over the sum of the stated repurchase prices and all expenses in connection with the liquidation of such repurchase agreements shall be deemed property of the estate, subject to the available rights of setoff. As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw, applicable to each party to the repurchase agreement, of a national securities exchange, a national securities association, or a securities clearing agency, and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal business practice.”. (b) The analysis of sections for chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: “559. Contractual right to liquidate a repurchase agreement.”. Subtitle G— Amendments to Title 11, Section 365 of the United States Code to Provide Adequate Protection for Timeshare Consumers Sec. 401. Title 11, United States Code, section 101 is hereby amended by— (1) redesignating paragraph (43), as redesignated by section Ante, p. 364. Real property. 391, as paragraph (44); and (2) adding the following paragraph after paragraph (42), as redesignated in section 391: “(43) ‘timeshare plan’ means and shall include that interest purchased in any arrangement, plan, scheme, or similar device, but not including exchange programs, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, right to use agreement, or by any other means, whereby a purchaser, in exchange for consideration, receives a right to use accommodations, facilities, or recreational sites, whether improved or unimproved, for a specific period of time less than a full year during any given year, but not necessarily for consecutive years, and which extends for a period of more than three years. A ‘timeshare interest’ is that interest purchased in a timeshare plan which grants the purchaser the right to use and occupy accommodations, facilities, or recreational sites, whether improved or unimproved, pursuant to a timeshare plan.”. Sec. 402. Section 365(h)(1) of title 11, United States Code, is Real property. amended to read as follows: “(h) (1) If the trustee rejects an unexpired lease of real property of the debtor under which the debtor is the lessor, or a timeshare interest under a timeshare plan under which the debtor is the timeshare interest seller, the lessee or timeshare interest purchaser under such lease or timeshare plan may treat such lease or time-share plan as terminated by such rejection, where the disaffirmance by the trustee amounts to such a breach as would entitle the lessee or timeshare interest purchaser to treat such lease as terminated by virtue of its own terms, applicable nonbankruptcy law, or other agreements the lessee or timeshare interest purchaser has made with other parties; or, in the alternative, the lessee or timeshare interest purchaser may remain in possession of the leasehold or timeshare interest under any lease or timeshare plan the term of which has commenced for the balance of such term and for any renewal or extension of such term that is enforceable by such lessee or timeshare interest purchaser under applicable nonbankruptcy law.”. Sec. 403. Section 365(h)(2) of title 11, United States Code, is Real property. amended to read as follows: “(2) If such lessee or timeshare interest purchaser remains in possession as provided in paragraph (1) of this subsection, such lessee or timeshare interest purchaser may offset against the rent reserved under such lease or moneys due for such timeshare interest for the balance of the term after the date of the rejection of such lease or timeshare interest, and any such renewal or extension thereof, any damages occurring after such date caused by the non-performance of any obligation of the debtor under such lease or timeshare plan after such date, but such lessee or timeshare interest purchaser does not have any rights against the estate on account of any damages arising after such date from such rejection, other than such offset.”. Sec. 404. Section 365(i)(1) of title 11, United States Code, is Real property. amended to read as follows: “(i) (1) If the trustee rejects an executory contract of the debtor for the sale of real property or for the sale of a timeshare interest under a timeshare plan, under which the purchaser is in possession, such purchaser may treat such contract as terminated, or, in the alternative, may remain in possession of such real property or timeshare interest.”. Subtitle H— Miscellaneous Amendments to Title 11 Sec. 421. (a) Section 101(2)(D) of title 11 of the United States Code is amended by striking out “or all” after “business”. (b) Section 101(8)(B) of title 11 of the United States Code is amended by striking out the colon at the end thereof and inserting in lieu thereof a semicolon. (c) Section 101(9)(B) of title 11 of the United States Code is amended by inserting “348(d),” after “section”. (d) Section 101(14) of title 11 of the United States Code is amended by inserting “and” after “trust,”. (e) Section 101(24) of title 11 of the United States Code is amended by striking out “stock broker” and inserting in lieu thereof “stockbroker” (f) Section 101(26)(B)(ii) of title 11 of the United States Code is amended by— (1) striking out “separate” each place it appears and inserting in lieu thereof “nonpartnership”; and (2) striking out “(A)(ii) and inserting in lieu thereof “(A)”, (g) Section 101(30) of title 11 of the United States Code is amended to read as follows: (30) “person” includes individual, partnership, and corporation, but does not include governmental unit, Provided, however, That any governmental unit that acquires an asset from a person as a result of operation of a loan guarantee agreement, or as receiver or liquidating agent of a person, will be considered a person for purposes of section 1102 of this title. (h) Section 101(38)(B)(vi) of title 11 of the United States Code, as Ante, p. 364. redesignated by section 391 of this Act, is amended by— (1) striking out “certificate specified in clause (xii) of subparagraph (A)” and inserting in lieu thereof “certificate of a kind specified in subparagraph (A)(xii)”; and (2) striking out “the subject of such a registration statement” and inserting in lieu thereof “required to be the subject of a registration statement”. (i) Section 101(44) of title 11 of the United States Code, as so redesignated, is amended by striking out the period and inserting in lieu thereof “and foreclosure of the debtor’s equity of redemption; and”. (j) Section 101 of title 11 of the United States Code is amended— (1) by redesignating paragraphs (41) through (44), as previously redesignated, as paragraphs (45) through (48); (2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively; (3) by redesignating paragraphs (19) and (20) as paragraphs (20) and (21), respectively; (4) by inserting after paragraph (18) the following: “(19) ‘financial institution’ means a person that is a commercial or savings bank, industrial savings bank, savings and loan association, or trust company and, when any such person is acting as agent or custodian for a customer in connection with a securities contract, as defined in section Post, p. 382. 741(7) of this title, such customer;”; (5) by inserting after paragraph (21) as redesignated herein the following: “(22) ‘forward contract’ means a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity, or product or byproduct thereof, with a maturity date more than two days after the date the contract is entered into; “(23) ‘forward contract merchant’ means a person whose business consists in whole or in part of entering into forward contracts as or with merchants in commodities;”; (6) by inserting after paragraph (43) the following: “(44) ‘State’ includes the District of Columbia and Puerto Rico, except for the purpose of defining who may be a debtor under chapter 9 of this title;”; and 11 USC 901 el seq. (7) by inserting after paragraph (48) the following: “(49) ‘United States’, when used in a geographical sense, includes all locations where the judicial jurisdiction of the United States extends, including territories and possessions of the United States;”. Sec. 422. Section 102 of title 11 of the United States Code is amended by striking out “continued” and inserting in lieu thereof “contained” in paragraph (8). Sec. 423. Section 103(c) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stockbroker”. Sec. 424. (a) Subsections (a)(1), (b)(1), and (c)(1) of section 108 of title 11 of the United States Code are each amended by striking out “and” each place it appears and inserting in lieu thereof “or”. (b) Subsections (a), (b), and (c) of section 108 of title 11 of the United States Code are each amended by inserting “nonbankruptcy” after “applicable” and after “entered in a” each place such terms appear. Sec. 425. (a) Section 109 of title 11 of the United States Code, is amended by striking out “in the United States,” the first place it appears. (b) Section 109(c)(5)(D) of title 11 of the United States Code of this Act is amended by striking out “preference” and inserting in lieu thereof “transfer that is avoidable under section 547 of this title”. (c) Section 109(d) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stock-broker”. Sec. 426. (a) Section 303(b) of title 11 of the United States Code is amended by inserting “against a person” after “involuntary case”. (b) Section 303 of title 11 of the United States Code, is amended— (1) in subsection (b)(1) by inserting “or the subject on a bona fide dispute,” after “liability”; and (2) in subsection (h)(1) by inserting “unless such debts that are the subject of a bona fide dispute” after “due”. Sec. 427. Section 303(j)(2) of title 11 of the United States Code is amended by striking out “debtors” and inserting in lieu thereof “debtor”. Sec. 428. Section 321(b) of title 11 of the United States Code is amended by striking out “a case” and inserting in lieu thereof “the case”. Sec. 429. Section 322(b)(1) of title 11 of the United States Code is amended by inserting “required to be” after “bond”. Sec. 430. (a) Section 326(a) of title 11 of the United States Code is amended by striking out all the language beginning with “three percent” through “$50,000” the second place the latter appears and inserting in lieu thereof “and three percent on any amount in excess of $3,000”. (b) Section 326(d) of title 11 of the United States Code is amended to read as follows: “(d) The court may deny allowance of compensation for services or reimbursement of expenses of the trustee if the trustee failed to make diligent inquiry into facts that would permit denial of allowance under section 328(c) of this title or, with knowledge of such facts, employed a professional person under section 327 of this title.”. (c) Section 327(c) of title 11 of the United States Code is amended to read as follows: “(c) In a case under chapter 7 or 11 of this title, a person is not disqualified for employment under this section solely because of such person’s employment by or representation of a creditor, unless there is objection by another creditor, in which case the court shall disapprove such employment if there is an actual conflict of interest.”. Sec. 431. Section 328(a) of title 11 of the United States Code is amended by striking out “unanticipatable” and inserting in lieu thereof “not capable of being anticipated”. Sec. 432. (a) Section 329(a) of title 11 of the United States Code is amended by striking out “and” the first place it appears and inserting in lieu thereof “or”. (b) Section 329(b)(1) of title 11 of the United States Code is amended by striking out “trustee” and inserting in lieu thereof “estate” Sec. 433. Section 330(a) of title 11 of the United States Code is amended— (1) by striking out “to any parties in interest and to the United States trustee”; and (2) in paragraph (1), by striking out “time, the nature, the extent, and the value of such services” and inserting in lieu thereof “nature, the extent, and the value of such services, the time spent on such services”. Sec. 434. (a) Section 330(b) of title 11 of the United States Code is amended by striking out “$20” and inserting in lieu thereof “$45”. (b) Section 330 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(c) Unless the court orders otherwise, in a case under chapter 13 11 USC 1301 et seq. of this title the compensation paid to the trustee serving in the case shall not be less than $5 per month from any distribution under the plan during the administration of the plan.”. Sec. 435. Section 342 of title 11 of the United States Code as Ante, p. 352. amended by section 302 is further amended by amending subsection (a) to read as follows: “(a) There shall be given such notice as is appropriate, including notice to any holder of a community claim, of an order for relief in a case under this title.”. Sec. 436. Section 343 of title 11 of the United States Code is amended by striking out “examiner” the last place it appears and inserting in lieu thereof “examine”. Sec. 437. Section 345 of title 11 of the United States Code is amended by adding at the end thereof a new subsection (c) as follows: “(c) An entity with which such moneys are deposited or invested is authorized to deposit or invest such moneys as may be required under this section”. Sec. 438. Section 346(c)(2) of title 11 of the United States Code is amended by striking out “operation” and inserting in lieu thereof “corporation”. Sec. 439. Section 350(b) of title 11 of the United States Code is amended by striking out “a” and inserting in lieu thereof “A”. Sec. 440. Section 361(1) of title 11 of the United States Code is amended by inserting “a cash payment or” after “make ”. Sec. 441. (a) Section 362(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “action or” after “other”; and (2) in paragraph (3), by inserting “or to exercise control over property of the estate” after “estate” the second place it appears. (b) Section 362(b) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting “or to the extent that such act is accomplished within the period provided under section 547(e)(2)(A) of this title” after “title”; (2) in paragraph (6), by— (A) inserting “or due from” after “held by”; and (B) striking out “or secure commodity contracts” and inserting in lieu thereof “secure, or settle commodity contracts”, and by inserting “financial institution,” after “stockbroker” each time it appears. (3) in paragraph (8) as redesignated by section 392, by— Ante, p. 365. (A) striking out “said” and inserting in lieu thereof “the”; and (B) striking out “or” the last place it appears; (4) in paragraph (9) as redesignated by section 392, by striking out the period and inserting in lieu thereof a semicolon; and (5) by adding after paragraph (9) the following new paragraph: “(10) under subsection (a) of this section, of the presentment of a negotiable instrument and the giving of notice of and protesting dishonor of such an instrument.”. (c) Section 362(c)(2)(B) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. (d) Section 362(d)(2) of title 11 of the United States Code is amended by inserting “under subsection (a) of this section” after “property” the first place it appears. (e) Section 362(e) of title 11 of the United States Code is amended— (1) in the first sentence by inserting “the conclusion of” after “pending”; and (2) by striking out the last sentence and inserting in lieu thereof the following: “The court shall order such stay continued in effect pending the conclusion of the final hearing under subsection (d) of this section if there is a reasonable likelihood that the party opposing relief from such stay will prevail at the conclusion of such final hearing. If the nearing under this subsection is a preliminary hearing, then such final hearing shall be commenced not later than thirty days after the conclusion of such preliminary hearing.”. (f) Section 362(f) of title 11 of the United States Code is amended by— (1) striking out “The” and inserting in lieu thereof “Upon request of a party in interest, the”; and (2) inserting “with or” after “court,”. Sec. 442. (a) Section 363(a) of title 11 of the United States Code is amended by— (1) inserting “whenever acquired” after “equivalents”; and (2) inserting “and includes the proceeds, products, offspring, rents, or profits of property subject to a security interest as provided in section 552(b) of this title, whether existing before or after the commencement of a case under this title” after “interest”. (b) Section 363(b) of title 11 of the United States Code is amended by— (1) striking out “(b)” and inserting in lieu thereof “(b)(1)”; and (2) adding at the end thereof the following new paragraph: “(2) If notification is required under subsection (a) of section 7 A of the Clayton Act (15 U.S.C. 18a) in the case of a transaction under this subsection, then— “(A) notwithstanding subsection (a) of such section, such notification shall be given by the trustee; and “(B) notwithstanding subsection (b) of such section, the required waiting period shall end on the tenth day after the date of the receipt of such notification, unless the court, after notice and hearing, orders otherwise.”. (c) Section 363(e) of title 11 of the United States Code is amended by— (1) inserting “, with or without a hearing,” after “court”; and (2) striking out the last sentence. (d) Section 363(f)(3) of title 11 of the United States Code is amended by striking out “such interest” the second place it appears and inserting in lieu thereof “all liens on such property”. (e) Section 363(h) of title 11 of the United States Code is amended by striking out “immediately before” and inserting in lieu thereof “at the time of”. (f) Section 363(i) of title 11 of the United States Code is amended by striking out “compenation” and inserting in lieu thereof “compensation”. (g) Section 363(k) of title 11 of the United States Code is amended by striking out “if the holder” and inserting in lieu thereof “unless the court for cause orders otherwise the holder of such claim may bid at such sale, and, if the holder”. (h) Section 363(1) of title 11 of the United States Code is amended by— (1) striking out “The trustee” and inserting in lieu thereof “Subject to the provisions of section 365, the trustee”; (2) striking out “conditions” and inserting in lieu thereof “condition”; (3) striking out “a taking” and inserting in lieu thereof “or the taking”; and (4) striking out “interests” and inserting in lieu thereof “interest”. (i) Section 363(n) of title 11 of the United States Code is amended by— (1) striking out “void” and inserting in lieu thereof “avoid”; (2) striking out “voiding” and inserting in lieu thereof “avoiding”; and (3) amending the last sentence to read as follows: “In addition to any recovery under the preceding sentence, the court may grant judgment for punitive damages in favor of the estate and against any such party that entered into such an agreement in willful disregard of this subsection.”. (j) Section 363 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(o) In any hearing under this section— “(1) the trustee has the burden of proof on the issue of adequate protection; and “(2) the entity asserting an interest in property has the burden of proof on the issue of the validity, priority, or extent of such interest.”. Sec. 443. Section 366(a) of title 11 of the United States Code is amended by inserting “of the commencement of a case under this title or” after “basis”. Sec. 444. Section 501(d) of title 11 of the United States Code is amended by inserting “502(e)(2),” before “502(f)”. Sec. 445. (a) Section 502(a) of title 11 of the United States Code is amended by inserting “general” before “partner”. (b) Section 502(b) of title 11 of the United States Code is amended— (1) by inserting “(e)(2),” after “subsections”; (2) by inserting “in lawful currency of the United States” after “claim” the second place it appears; (3) in paragraph (1), by striking out “, and unenforceable against” and inserting in lieu thereof “and”; (4) by striking out paragraph (3) and redesignating paragraphs (4), (5), (6), (7), (8), and (9) as paragraphs (3), (4), (5), (6), (7), and (8), respectively; (5) in paragraph (3), as redesignated by paragraph (5), by inserting “the” after “exceeds”; (6) in paragraph (5), as redesignated by paragraph (5), by— (A) striking out “the claim” and inserting in lieu thereof “such claim”, and (B) striking out the comma after “petition”; and (7) in paragraph (7), as redesignated by paragraph (5), by— (A) inserting “the claim of an employee” before “for damages”; (B) striking out “and” in subparagraph (A)(i) and inserting in lieu thereof “or”; (C) striking out “the” the first place it appears in subparagraph (B) and inserting in lieu thereof “any”; and (D) inserting a comma after “such contract” in subparagraph (B). (c) Section 502(c) of title 11 of the United States Code is amended— (1) in paragraph (1) by— (A) inserting “the” before “fixing”; and (B) striking out “closing” and inserting in lieu thereof “administration”; and (2) in paragraph (2), by— (A) inserting “right to payment arising from a” after “any”; and (B) striking out “if such breach gives rise to a right to payment”. (d) Section 502(e)(1) of title 11, United States Code, is amended— (1) by striking out “and (b)” and inserting in lieu thereof “, (b), and (c)”; and (2) by striking out the commas before and after “or has secured”; (3) in subparagraph (B), by inserting “or disallowance” after “allowance”; and (4) in subparagraph (C), by— (A) striking out “requests subrogation” and inserting in lieu thereof “asserts a right of subrogation to the rights of such creditor”; and (B) striking out “to the rights of such creditor”. (e) Section 502(h) of title 11 of the United States Code is amended by striking out “522(i)” and inserting in lieu thereof “522”. (f) Section 502(j) of title 11 of the United States Code is amended to read as follows: “(j) A claim that has been allowed or disallowed may be reconsidered for cause. A reconsidered claim may be allowed or disallowed according to the equities of the case. Reconsideration of a claim under this subsection does not affect the validity of any payment or transfer from the estate made to a holder of an allowed claim on account of such allowed claim that is not reconsidered, but if a reconsidered claim is allowed and is of the same class as such holder’s claim, such holder may not receive any additional payment or transfer from the estate on account of such holder’s allowed claim until the holder of such reconsidered and allowed claim receives payment on account of such claim proportionate in value to that already received by such other holder. This subsection does not alter or modify the trustee’s right to recover from a creditor any excess payment or transfer made to such creditor.”. Sec. 446. Section 503(b) of title 11 of the United States Code is amended— (1) by striking out the comma after “be allowed”; (2) in paragraph (1)(C), by striking out the comma after “credit”; (3) in paragraph (2), by inserting “(a)” after “330”; (4) in paragraph (3), by inserting a comma after “paragraph (4) of this subsection”; (5) in paragraph (3)(C), by striking out the comma after “case”; (6) in paragraph (5), by striking out “and” after the semicolon; and (7) in paragraph (6), by striking out the period and inserting in lieu thereof “; and”. Sec. 447. Section 505(a) of title 11 of the United States Code is amended in paragraph (2)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 448. (a) Section 506(b) of title 11 of the United States Code is amended by inserting “for” after “provided”. (b) Paragraphs (1) and (2) of section 506(d) of title 11 of the United States Code are amended to read as follows: “(1) such claim was disallowed only under section 502(b)(5) or 502(e) of this title; or “(2) such claim is not an allowed secured claim due only to the failure of any entity to file a proof of such claim under section 501 of this title.”. Sec. 449. (a) Section 507(a) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting a comma after “severance”: (2) in paragraph (4), by striking out “employee benefit plans” and inserting in lieu thereof “an employee benefit plan”; (3) in paragraph (4)(B)(i), by inserting “each” after “covered by”; and (4) in paragraph (7) as redesignated by section 350 by inserting “only” after “units,”. (b) Section 507(c) of title 11 of the United States Code is amended by striking out “shall be treated the same” and inserting in lieu thereof “has the same priority”. Sec. 450. (a) Section 509(a) of title 11 of the United States Code is amended by— (1) striking out “subsections (b) and” and inserting in lieu thereof “subsection (b) or”; and (2) inserting “against the debtor” after “a creditor”. (b) Section 509(b)(1) of title 11 of the United States Code is amended by striking out “of a” and inserting in lieu thereof “of such”. (c) Section 509(c) of title 11 of the United States Code is amended by striking out “section 509 of this title” and inserting in lieu thereof “this section”. Sec. 451. Section 510(b) of title 11 of the United States Code is Claims. amended to read as follows: “(b) For the purpose of distribution under this title, a claim arising from rescission of a purchase or sale of a security of the debtor or of an affiliate of the debtor, for damages arising from the purchase or sale of such a security, or for reimbursement or contribution allowed under section 502 on account of such a claim, shall be subordinated to all claims or interests that are senior to or equal the claim or interest represented by such security, except that if such security is common stock, such claim has the same priority as common stock.”. Sec. 452. Section 521(3) of title 11 of the United States Code, as redesignated in section 305, is amended by inserting “, whether or Ante, p. 352. not immunity is granted under section 344 of this title” after “estate” the second place it appears. Sec. 453. (a) Section 522(a)(2) of title 11 of the United States Code is amended by inserting “or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate” after “petition”. (b) Section 522(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the case is dismissed, property exempted under this section is not liable during or after the case for any debt of the debtor that arose, or that is determined under section 502 of this title as if such debt had arisen, before the commencement of the case, except— “(1) a debt of a kind specified in section 523(a)(1) or 523(a)(5) of this title; or “(2) a debt secured by a lien that is— “(A) (i) not avoided under subsection (f) or (g) of this section or under section 544, 545, 547, 548, 549, or 724(a) of this title; and “(ii) not void under section 506(d) of this title; or Ante, p. 374. “(B) a tax lien, notice of which is properly filed.”. (c) Section 522(e) of title 11 of the United States Code is amended by striking out “exemptions” and inserting in lieu thereof “an exemption”. Sec. 454. (a) Section 523(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by— (A) striking out “obtaining” each place it appears; and (B) striking out “refinance of credit,” and inserting in lieu thereof “refinancing of credit, to the extent obtained”; and (2) by striking out “of higher education” in paragraph (8). (b) Section 523(a)(5) of title 11, United States Code, is amended by— (1) amending the first paragraph thereof by inserting the words “or other order of a court of record” after the words “divorce decree,”; and (2) inserting “, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State” after “Social Security Act”. (c) Section 523(c) of title 11 of the United States Code is amended by inserting “of a kind” after “debt” the first time it appears. Sec. 455. Section 524(a) of title 11 of the United States Code is amended by striking out “any act” each place it appears and inserting in lieu thereof “an act”. Sec. 456. (a) Section 541(a) of title 11 of the United States Code is amended— (1) by striking out “under” the second time it appears; (2) by inserting “and by whomever held” after “located”; (3) in paragraph (3), by inserting “329(b), 363(n),” after “section”; (4) in paragraph (5), by striking out “An” and inserting in lieu thereof “Any”; and (5) in paragraph (6), by striking out “and” and inserting in lieu thereof “or”. (b) Section 541(c) of title 11 of the United States Code is amended— (1) by inserting “in an agreement, transfer instrument, or applicable nonbankruptcy law” after “provision”; and (2) in paragraph (1)(B), by— (A) striking out “the taking” and inserting in lieu thereof “taking”; and (B) inserting “before such commencement” after “custodian”. (c) Section 541(d) of title 11 of the United States Code is amended by inserting “(1) or (2)” after “(a)”. (d) Section 541(e) of title 11 of the United States Code is repealed. Sec. 457. Section 542(e) of title 11 of the United States Code is amended by inserting “to turn over or” before “disclose”. Sec. 458. (a) Section 543(a) of title 11 of the United States Code is amended by inserting “, product, offspring, rents, or profits” after “proceeds”. (b) Section 543(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by— (A) inserting “held by or” after “debtor”; and (B) inserting “, product, offspring, rents, or profits” after “proceeds”; and (2) in paragraph (2), by inserting “, product, offspring, rents, or profits” after “proceeds”. (c) Section 543(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “or proceeds, product, off-spring, rents, or profits of such property” after “property”; and (2) in paragraph (3), by inserting “that has been” before “approved”. (d) Section 543(d) of title 11 of the United States Code is amended to read as follows: “(d) After notice and hearing, the bankruptcy court— “(1) may excuse compliance with subsection (a), (b), or (c) of this section, if the interests of creditors and, if the debtor is not insolvent, of equity security holders would be better served by permitting a custodian to continue in possession, custody, or control of such property, and “(2) shall excuse compliance with subsections (a) and (b)(1) of this section if the custodian is an assignee for the benefit of the debtor’s creditors that was appointed or took possession more than 120 days before the date of the filing of the petition, unless compliance with such subsections is necessary to prevent fraud or injustice.”. Sec. 459. Section 544(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “such” after “obtained”; (2) in paragraph (2), by striking out “; and” and inserting in lieu thereof “, or”; and (3) in paragraph (3), by— (A) inserting “, other than fixtures,” after “property”; and (B) inserting “and has perfected such transfer” after “purchaser” the second place it appears. Sec. 460. Section 545 of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by striking out “is” the first time it appears; (2) in paragraph (1)(C), by striking out “apponted” and inserting in lieu thereof appointed or authorized to take”; and (3) in paragraph (2), by striking out “on the date of of the filing the petition” each place it appears and inserting in lieu thereof “at the time of the commencement of the case”. Sec. 461. (a) Section 546(a) of title 11 of the United States Code is amended in paragraph (1) by striking out “and” and inserting in lieu thereof “or”. (b) Section 546(b) of title 11 of the United States Code is amended by striking out “the trustee under section 544, 545, or” and inserting in lieu thereof “a trustee under sections 544, 545, and”. (c) Section 546(c) of title 11 of the United States Code is amended— (1) by striking out “the trustee” and inserting in lieu thereof “a trustee”; (2) by striking out “right” the first place it appears; (3) by inserting “of goods that has sold goods to the debtor” after “seller” the first place it appears; (4) by striking out “of goods to the debtor” after “business,”; and (5) in paragraph (2), by— (A) inserting “the” after “if’; and (B) striking out “an administrative expense” and inserting in lieu thereof “a claim of a kind specified in section 503(b) of this title” (d) Section 546(e) of title 11 of the United States Code, as redesignated by section 351, is amended by inserting “financial institution” after “stockbroker”. Sec. 462. (a) Section 547(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “including proceeds of such property,” after “law,”; and (2) in paragraph (4), by— (A) striking out “, without penalty”; and (B) inserting “without penalty” after “payable”. (b) Section 547(b) of title 11 of the United States Code is amended— (1) by striking out “of property of the debtor” and inserting in lieu thereof “of an interest of the debtor in property”; and (2) in paragraph (4) by amending subparagraph (B) to read as follows: “(B) between ninety days and one year before the date of the Tiling of the petition, if such creditor at the time of such transfer was an insider;”. (c) Section 547 of title 11 of the United States Code is amended in subsection (c)(2) thereof by striking out subparagraph (B) of such subsection, and by redesignating subparagraphs (C) and (D) thereof as subparagraphs (B) and (C), respectively. (d) Section 547(c) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by inserting “by the debtor” after “incurred”; (2) in paragraph (3), by striking out “of” the first place it appears and inserting in lieu thereof “that creates”; (3) in paragraph (3)(B), by— (A) inserting “on or after “perfected”; and (B) striking out “such security interest attaches” and inserting in lieu thereof “the debtor receives possession of such property”; (4) in paragraph (5), by— (A) striking out “of” the first place it appears and inserting in lieu thereof “that creates”; and (B) striking out “all security interest” and inserting in lieu thereof “all security interests”; and (5) in paragraph (5)(A)(ii), by striking out “and” and inserting in lieu thereof “or”. (e) Section 547(d) of title 11 of the United States Code is amended by— (1) striking out “A” and inserting in lieu thereof “The”; (2) inserting “an interest in” after “transfer of’: (3) inserting “to or for the benefit of a surety” after “transferred”; and (4) inserting “such” after “reimbursement of’. (f) Section 547(e) of title 11 of the United States Code is amended in paragraph (2)(C)(i), by striking out “and” and inserting in lieu thereof “or”. (g) Section 547 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(g) For the purposes of this section, the trustee has the burden of proving the avoidability of a transfer under subsection (b) of this section, and the creditor or party in interest against whom recovery or avoidance is sought has the burden of proving the nonavoidability of a transfer under subsection (c) of this section.”. Sec. 463. (a) Section 548(a) of title 11 of the United States Code is amended— (1) by striking out “if the debtor” and inserting in lieu thereof “if the debtor voluntarily or involuntarily”; (2) in paragraph (1), by striking out “occurred” and inserting in lieu thereof “was made”; and (3) in paragraph (2)(B)(ii), by inserting “or a transaction” after “engaged in business”. (b) Section 548(c) of title 11 of the United States Code is amended by— (1) inserting “or may retain” after “lien on”; and (2) striking out “, may retain any lien transferred,”. (c) (1) Section 548(d)(1) of title 11 of the United States Code is amended by— (A) striking out “becomes so far” and inserting in lieu thereof “is so”; (B) striking out “such transfer could have been” and inserting in lieu thereof “applicable law permits such transfer to be”; and (C) striking out “occurs” and inserting in lieu thereof “is made”. (2) Section 548(d)(2)(B) of title 11 is amended by inserting “financial institution,” after “stockbroker”. Sec. 464. (a) Section 549(a) of title 11 of the United States Code is amended— (1) by striking out “(b) and (c)” and inserting in lieu thereof “(b) or (c)”; and (2) in paragraph (2)(A), by inserting “only” after “authorized”. (3) striking out “that occurs” and inserting in lieu thereof “made”; (4) striking out “is valid against the trustee to the extent of’ and inserting in lieu thereof “to the extent”; and (5) inserting “is” before “given”. (c) Section 549(c) of title 11 of the United States Code is amended Real property. to read as follows: “(c) The trustee may not avoid under subsection (a) of this section a transfer of real property to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value unless a copy or notice of the petition was filed, where a transfer of such real property may be recorded to perfect such transfer, before such transfer is so perfected that a bona fide purchaser of such property, against whom applicable law permits such transfer to be perfected, could not acquire an interest that is superior to the interest of such good faith purchaser. A good faith purchaser without knowledge of the commencement of the case and for less than present fair equivalent value has a lien on the property transferred to the extent of any present value given, unless a copy or notice of the petition was so filed before such transfer was so perfected”. (d) Section 549(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 465. (a) Section 550(a) of title 11 of the United States Code is amended by striking out “549, or 724(a) of this title” and inserting in lieu thereof “549, 553(b), or 724(a) of this title”. (b) Section 550(d) of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by inserting “or accruing to” after “by”; (2) in paragraph (1)(B), by striking out “value” and inserting in lieu thereof “the value of such property”; (3) in paragraph (2), by striking out subparagraphs (D) and (E) and inserting in lieu thereof the following: “(D) payment of any debt secured by a lien on such property that is superior or equal to the rights of the trustee; and”, and (4) in paragraph (2), by redesignating subparagraph (F) as subparagraph (E). (c) Section 550(e)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 466. Section 552(b) of title 11 of the United States Code is amended by— (1) inserting “522,” after “506(c),”; (2) striking out “a secured party enter” and inserting in lieu thereof “an entity entered”; and (3) striking out “except to the extent” and inserting in lieu thereof “except to any extent”. Sec. 467. Section 553(b)(1) of title 11 of the United States Code is amended by striking out “or 365(h)(1)” and inserting in lieu thereof “, 365(h)(2), or 365(i)(2)”. Sec. 468. (a) Subsections (a) and (b) of section 554 of title 11 of the United States Code are each amended by inserting “and benefit” after “value”. (b) Section 554(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the court orders otherwise, any property scheduled under section 521(a)(1) of this title not otherwise administered at the time of the closing of a case is abandoned to the debtor and administered for purposes of section 350 of this title.”. (c) Section 554(d) of title 11 of the United States Code is amended by striking out “section (a) or (b) of”. Sec. 469. Section 555 of title 11 of the United States Code is amended by inserting “, financial institution,” after “stockbroker”. Sec. 470. (a) Chapter 5 of title 11 of the United States Code as amended by section 352 is amended by adding at the end thereof the following new section: “§ 558. Defenses of the estate “The estate shall have the benefit of any defense available to the debtor as against any entity other than the estate, including statutes of limitation, statutes of frauds, usury, and other personal defenses. A waiver of any such defense by the debtor after the commencement of the case does not bind the estate.”. (b) The table of sections for chapter 5 of title 11 of the United States Code is amended by adding at the end thereof the following new item: “558. Defenses of the estate.”. Sec. 471. The table of sections for chapter 7 of title 11 of the United States Code is amended by striking out “Succesor” in the item relating to section 703 and inserting in lieu thereof “Succcssor” Sec. 472. (a) Section 702(b) of title 11 of the United States Code is amended by inserting “held” after “meeting of creditors”. (b) Section 702(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “of a kind” after “claims”; and (2) in paragraph (2), by inserting “a” after “for”. (c) Section 702(d) of title 11 of the United States Code is amended by striking out “subsection (c) of”. Sec. 473. Section 703(b) of title 11 of the United States Code is amended by striking out “specified in section 701(a) of this title. Sections 701(b) and 701(c) of this title apply to such interim trustee” and inserting in lieu thereof “and subject to the provisions of section 701 of this title”. Sec. 474. Section 704 of title 11 of the United States Code as amended by section 311 is amended in paragraph (1), by striking out Ante, p. 355. “up”. Sec. 475. Paragraphs (1) and (2) of section 707 of title 11 of the United States Code are each amended by striking out “and” and inserting in lieu thereof “or”. Sec. 476. (a) Section 723(a) of title 11 of the United States Code is amended by striking out all after “claims” and inserting in lie thereof “which are allowed in a case under this chapter concerning a partnership and with respect to which a general partner of the partnership is personally liable, the trustee shall have a claim against such general partner for the full amount of the deficiency”. (b) Section 723(c) of title 11 of the United States Code is amended by— (1) striking out “such case” each place it appears and inserting in lieu thereof “such partner’s case”; (2) striking out “be property” and inserting in lieu thereof “by property”; and (3) striking out “the kind” and inserting in lieu thereof “a kind”. Sec. 477. (a) Section 724(b) of title 11 of the United States Code is amended— (1) by striking out “taxes” and inserting in lieu thereof “a tax”; (2) in paragraph (2), by— (A) striking out “claims” and inserting in lieu thereof “any holder of a claim of a kind”; (B) striking out “sections” and inserting in lieu thereof “section”; and (C) striking out “and” and inserting in lieu thereof “or”; and (3) in paragraph (3), by inserting “tax” after “allowed”. (b) Section 724(c) of title 11 of the United States Code is amended by— (1) striking out “creditor” and inserting in lieu thereof “holder of a claim”; and (2) striking out “creditors” each place it appears and inserting in lieu thereof “holders”. (c) Section 724(d) of title 11 of the United States Code is amended by— (1) striking out “whose priority” and inserting in lieu thereof “the priority of which”; and (2) inserting ‘ if such lien were” after “the same as”. Sec. 478. Section 725 of title 11 of the United States Cede is amended by inserting “of property of the estate” after “distribution”. Sec. 479. (a) Section 726(b) of title 11 of the United States Code is amended by— (1) striking out “a particular paragraph” and inserting in lieu thereof “each such particular paragraph”; and (2) striking out “administrative expenses” each place it appears and inserting in lieu thereof “a claim allowed under section 503(b) of this title”; and (3) striking out “have” and inserting in lieu thereof “has”. (b) Section 726(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “Administrative expenses” and inserting in lieu thereof “Claims allowed under section 503 of this title”; and (2) in paragraph (2), by striking out “Claims other than for administrative expenses” and inserting in lieu thereof “Allowed claims, other than claims allowed under section 503 of this title,”. Sec. 480. (a) Section 727(a) of title 11 of the United States Code is amended— (1) in paragraph (6)(C), by striking out “property” and inserting in lieu thereof “properly”; (2) in paragraph (7), by inserting “, under this title or under the Bankruptcy Act,” after “another case”; and (3) in paragraph (8), by inserting a comma after “371”. (b) Section 727(c)(1) of title 11 of the United States Code is amended by inserting “the granting of a” after “to”. (c) Section 727(e)(2)(A) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 481. (a) Section 728(c) of title 11 of the United States Code is amended by striking out the comma after “taxable income”. (b) Section 728(d)(2) of title 11 of the United States Code is amended by inserting “otherwise” after “is”, and by striking out “otherwise” after “partner”. Sec. 482. Section 741 of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by— (A) striking out “the debtor” the first time it appears and inserting in lieu thereof “a person”; (B) striking out “holds” and inserting in lieu thereof “has”; (C) striking out “the debtor” the second and third time it appears and inserting in lieu thereof “such person”; and (D) striking out “business as a stockbroker” and inserting in lieu thereof “such person”s business as a stockbroker,”, (2) in paragraph (2)(B), by— (A) striking out “holds” and inserting in lieu thereof “has”; (B) striking out “the debtor” the first place it appears and inserting in lieu thereof “a person”; and (C) by striking out “the debtor” and inserting in lieu thereof “such person” in clause (ii); (3) in paragraph (4)(A)(i), by striking out “and that is” and inserting in lieu thereof “from and that is the lawful”; (4) in paragraph (6)(A)(i), by— (A) inserting a comma after “petition”; and (B) inserting “any” after “except”; and (5) in paragraph (7), by amending such paragraph to read as follows: “(7) ‘securities contract’ means contract for the purchase, sale, or loan of a security, including an option for the purchase or sale of a security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any option entered into on a national securities exchange relating to foreign currencies, or the guarantee of any settlement of cash or securities by or to a securities clearing agency;”; and (6) in paragraph (8) by inserting “a final settlement payment,” after “settlement payment on account,”. Sec. 483. Section 745(a) of title 11 of the United States Code is amended by inserting “the debtor for” after “by”. Sec. 484. (a) Section 752(a) of title 11 of the United States Code is amended by— (1) striking out “customers allowed” and in lieu thereof “customers’ allowed”; (2) inserting “of the kind” after “except claims”; and (3) inserting “such” before “customer property”. (b) Section 752(b)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 485. Section 761 of title 11 of the United States Code is amended in paragraph (10), by striking out “and that is” in subparagraph (A)(viii) and inserting in lieu thereof “from and that is the lawful”. Sec. 486. Section 763(a) of title 11 of the United States Code is amended by— (1) inserting “the debtor for” after “by”; and (2) striking out “deemed to be” and inserting in lieu thereof “treated as”. Sec. 487. Section 764(a) of title 11 of the United States Code is amended by inserting “by the debtor” after “any transfer”. Sec. 488. Section 765(a) of title 11 of the United States Code is amended by striking out “notice under”, and inserting in lieu thereof “notice required by”. Sec. 489. Section 766(j)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 490. Section 901(a) of title 11 of the United States Code is amended by inserting a comma after “1111(b)”. Sec. 491. Section 902(2) of title 11 of the United States Code is amended by striking out “title, legal or equitable, to real property against which has been levied a special assessment or special tax” and by inserting in lieu thereof “legal or equitable title to real property against which a special assessment or special tax has been levied”. Sec. 492. Section 903(2) of title 11 of the United States Code is amended by striking out “to” the first place it appears. Sec. 493. Chapter 9 of title 11 of the United States Code is 11 USC prec 921.. amended by striking out “SUBCHAPER II” and inserting in lieu thereof “SUBCHAPTER II”. Sec. 494. (a) Section 921(c) of title 11 of the United States Code is amended by— (1) striking out “an” and inserting in lieu thereof “any”; and (2) striking out the comma after “petition” the second place it appears, and after “faith”. (b) Section 921 of title 11 of the United States Code is amended by redesignating subsections (e) and (f) as subsections (d) and (e), respectively. (c) Section 921(a) is amended by striking out “109(c)” and inserting in lieu thereof “109(d)”. (d) Section 921(d) of title 11 of the United States Code, as so redesignated, is amended by striking out “subsection (d)” and inserting in lieu thereof “subsection (c)”. Sec. 495. Section 922(a)(1) of title 11 of the United States Code is amended by— (1) inserting “a” before “judicial”; and (2) inserting “action or” before “proceeding”. Sec. 496. Section 927(b) of title 11 of the United States Code is amended by inserting “of a plan under this chapter” after “confirmation”. Sec. 497. Section 943(b) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “to be taken”; and (2) by amending paragraph (5) to read as follows: “(5) except to the extent that the holder of a particular claim has agreed to a different treatment of such claim, the plan provides that on the effective date of the plan each holder of a claim of a kind specified in section 507(a)(1) of this title will receive on account of such claim cash equal to the allowed amount of such claim; and”. Sec. 498. Section 945(a) of title 11 of the United States Code is amended by striking out “execution” and inserting in lieu thereof “implementation”. Sec. 499. Section 1102(b)(1) of title 11 of the United States Code is amended by striking out “order for relief’ and inserting in lieu thereof “commencement of the case”. Sec. 500. (a) Section 1103(b) is amended by— (1) inserting “having an adverse interest” after “entity”; and (2) adding at the end thereof the following: “Representation of one or more creditors of the same class as represented by the committee shall not per se constitute the representation of an adverse interest/’. (b) Section 1103(c) of title 11 of the United States Code is amended— (1) in paragraph (3), by— (A) striking out “recommendations” and inserting in lieu thereof “determinations”; and (B) inserting “or rejections” after “acceptances”; and (2) in paragraph (4), by striking out “, if a trustee or examiner, as the case may be, has not previously been appointed under this chapter in the case”. Sec. 501. Section 1105 of title 11 of the United States Code is amended by striking out “estate, and” and inserting in lieu thereof “estate and of the”. Sec. 502. Section 1106(b) of title 11 of the United States Code is amended by inserting “, except to the extent that the court orders otherwise, before “any other”. Sec. 503. Section 1107(a) of title 11 of the United States Code is amended by inserting “serving in a case” after “on a trustee”. Sec. 504. Section 1108 of title 11 of the United States Code is amended by inserting “, on request of a party in interest and after notice and a hearing, after “court”. Sec. 505. (a) Section 1112(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by striking out “is an involuntary case originally commenced under this chapter” and inserting in lieu thereof “originally was commenced as an involuntary case under this chapter”; and (2) in paragraph (3), by striking but “on other than” and inserting in lieu thereof “other than on”. (b) Section 1112(b) of title 11 of the United States Code is amended— (1) in paragraph (5), by inserting “a request made for” before “additional”; and (2) in paragraph (8), by striking out “and” and inserting in lieu thereof “or”. Sec. 506. (a) Section 1121(c)(3) of title 11 of the United States Code is amended by striking out “the claims or interests of which are” and inserting in lieu thereof “of claims or interests that is”. (b) Section 1121(d) of title 11 of the United States Code is amended by inserting “made within the respective periods specified in subsection (c) of this section” after “interest”. Sec. 507. (a) Section 1123(a) of title 11 of the United States Code is amended— (1) by striking out “A” and inserting in lieu thereof “Notwithstanding any otherwise applicable nonbankruptcy law, a”; (2) in paragraph (1), by— (A) inserting a comma after “classes of claims”; and (B) by striking out “507(a)(6) of this title” and inserting in lieu thereof “507(a)(7) of this title,”; (3) in paragraph (3), by striking out “shall”; (4) in paragraph (5), by striking out “execution” and inserting in lieu thereof “implementation”, and (5) in paragraph (5)(G), by inserting “of’ after “waiving”. (b) Section 1123(b)(2) of title 11 of the United States Code is amended by— (1) striking out “or rejection” and inserting in lieu thereof “, rejection, or assignment”; and (2) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”. Sec. 508. Section 1124 of title 11 of the United States Code is amended— (1) by amending paragraph ()(A) to read as follows: “(A) cures any such default that occurred before or after the commencement of the case under this title, other than a default of a kind specified in section 365(b)(2) of this title;”; Ante, p. 361. and (2) in paragraph (3)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 509. (a) Section 1125(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “, but adequate information need not include such information about any other possible or proposed plan” after “plan”; (2) in paragraph (2)(B), by inserting “the” after “with”; and (3) in paragraph (2)(C), by inserting “or’ after “holders”. (b) Section 1125(d) of title 11 of the United States Code is amended by— (1) inserting “required under subsection (b) of this section” after “statement” the first place it appears; and (2) inserting or otherwise seek review of,” after “appeal from”. (c) Section 1125(e) of title 11 of the United States Code is amended by— (1) inserting “acceptance or rejection of a plan” after “solicits”; and (2) inserting “solicitation of acceptance or rejection of a plan or” after “governing”. Sec. 510. (a) Section 1126(b)(2) of title 11 of the United States Code is amended by striking out “1125(a)(1)” and inserting in lieu thereof “1125(a)”. (b) Section 1126(d) of title 11 of the United States Code is amended by inserting a comma after “such interests” the first place it appears. (c) Section 1126(f) of title 11 of the United States Code is amended by— (1) striking out “is deemed” and inserting in lieu thereof “, and each holder of a claim or interest of such class, are conclusively presumed”; (2) striking out “solicititation” and inserting in lieu thereof “solicitation”; and (3) striking out “interest” and inserting in lieu thereof “interests” (d) Section 1126(g) of title 11 of the United States Code is amended by striking out “any payment or compensation” and inserting in lieu thereof “receive or retain any property”. Sec. 511. (a) Section 1127(a) of title 11 of the United States Code is amended by— (1) inserting “of a plan” after “After the proponent”; and (2) inserting “of such plan” after “modification”. (b) Section 1127(b) of title 11 of the United States Code is amended by striking out “the court, after notice and a hearing, confirms such plan, as modified, under section 1129 of this title, and circumstances warrant such modification” and inserting in lieu thereof “circumstances warrant such modification and the court, after notice and a hearing, confirms such plan as modified, under section 1129 of this title”. Sec. 512. (a) Section 1129(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “chapter.” and inserting in lieu thereof “title.”; (2) in paragraph (2), by striking out “chapter.” and inserting in lieu thereof “title.”; (3) by amending paragraph (4) to read as follows: “(4) Any payment made or to be made by the proponent, by the debtor, or by a person issuing securities or acquiring property under the plan, for services or for costs and expenses in or in connection with the case, or in connection with the plan and incident to the case, has been approved by, or is subject to the approval of, the court as reasonable;”; (4) in paragraph (5)(A)(ii), by striking out the period and inserting in lieu thereof “; and”; (5) in paragraph (5)(B), by striking out “The” and inserting in lieu thereof “the”; (6) in paragraph (6), by inserting “governmental” after “Any”; (7) in paragraph (7), by— (A) inserting “of each impaired class of claims or interests” in lieu of “each class”; and (B) striking out “creditor’s” in subparagraph (B) and inserting in lieu thereof “holder’s”; (8) in paragraph (8), by inserting “of claims or interests” after “each class”; and (9) by amending paragraph (10) to read as follows: “(10) If a class of claims is impaired under the plan, at least one class of claims that is impaired under the plan has accepted the plan, determined without including any acceptance of the plan by any insider.”. (b) Section 1129(b) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by striking out “lien” each place it appears and inserting in lieu thereof “liens”; (2) in paragraph (2)(B)(ii), by inserting “under the plan” after “retain”, and (3) in paragraph (2)(C)(i), by— (A) striking out “claim” and inserting in lieu thereof “interest”; and (B) striking out “and the value” and inserting in lieu thereof “or the value”. (c) Section 1129(d) of title 11 of the United States Code is amended by— (1) inserting “the application of” after “avoidance of” the second place it appears; and (2) adding at the end thereof the following new sentence: “In any hearing under this subsection, the governmental unit has the burden of proof on the issue of avoidance.”. Sec. 513. (a) Section 1141(a) of title 11 of the United States Code is amended by striking out “any creditor or equity security holder of, or general partner in,” and inserting in lieu thereof “any creditor, equity security holder, or general partner in”. (b) Section 1141(c) of title 11 of the United States Code is amended to read as follows: “(c) Except as provided in subsections (d)(2) and (d)(3) of this section and except as otherwise provided in the plan or in the order confirming the plan, after confirmation of a plan, the property dealt with by the plan is free and clear of all claims and interests of creditors, equity security holders, and of general partners in the debtor.”. Sec. 514. (a) The heading for section 1142 of title 11 of the United States Code is amended to read as follows: “§ 1142. Implementation of plan”. (b) The item relating to section 1142 in the table of sections for chapter 11 of title 11 of the United States Code is amended by striking out “Execution” and inserting in lieu thereof “Implementation”. (c) Section 1142(a) of title 11 of the United States Code is amended by striking out the comma after “plan” the second place it appears. (d) Section 1142(b) of title 11 of the United States Code is amended by inserting “a” after “by”. Sec. 515. Section 1144 of title 11 of the United States Code is amended by inserting “if and only” after “revoke such order”. Sec. 516. (a) Section 1145(a) of title 11 of the United States Code is amended— (1) in paragraph (3)(B)(i), by inserting “or 15(d)” after “13” and by inserting “or 78o(d)” after “78m”; (2) by amending paragraph (3)(B)(ii) to read as follows: “(ii) in compliance with the disclosure and reporting provision of such applicable section; and”; and (3) in paragraph (4), by striking out “stockholder” each place it appears and inserting in lieu thereof “stockbroker”. (b) Section 1145(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “and except with respect to ordinary trading transactions of an entity that is not an issuer” after “subsection”; (2) in paragraph (1)(C), by striking out “for” and inserting in lieu thereof “from”; (3) in paragraph (2)(a)(1), by striking out “combination” and inserting in lieu thereof “or combining”; and (4) in paragraph (2)(A)(ii), by striking out “among” and inserting in lieu thereof “from or to”. (c) Section 1145(d) of title 11 of the United States Code is amended by striking out “commercial”. Sec. 517. (a) Section 1146(c) of title 11 of the United States Code is amended by striking out “State or local”. (b) Section 1146(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 518. Section 1166 of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 519. Section 1168(b) of title 11 of the United States Code is amended by inserting a comma after “approval”. Sec. 520. Section 1169(c) of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 521. (a) Section 1170(a) of title 11 of the United States Code is amended by inserting “of all or a portion” after “the abandonment”. (b) Section 1170(c) of title 11 of the United States Code is amended by inserting a comma after “abandonment”. (c) Section U70(d)(2) of title 11 of the United States Code is amended by— (1) striking out “the abandonment of a railroad line” and inserting in lieu thereof “such abandonment”; and (2) striking out “termination” each place it appears and inserting in lieu thereof “suspension”. Sec. 522. Section 1171(b) of title 11 of the United States Code is amended by striking out “such” and inserting in lieu thereof “the same”. Sec. 523. Section 1173(a)(4) of title 11 of the United States Code is amended by striking out “compatible” and inserting in lieu thereof “consistent”. Sec. 524. Section 1301(c)(3) of title 11 of the United States Code is amended by inserting “continuation of’ after “by”. Sec. 525. (a) Section 1302(b) of title 11 of the United States Code as Ante, p. 356. amended by section 314 is amended by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively and by inserting after paragraph (2) the following new paragraph: “(3) dispose of, under regulations issued by the Director of the Administrative Office of the United States Courts, moneys received or to be received in a case under chapter XIII of the Bankruptcy Act; and”. (b) Section 1302(e) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “fix” and inserting in lieu thereof “set for such individual”; (2) in paragraph (1)(A), by striking out “for such individual”; and (3) in paragraph (2)(A), by— (A) striking out “of” and inserting in lieu thereof “received by”; and (B) striking out “upon all payments” and inserting in lieu thereof “of all such payments made”. Sec. 526. Section 1304(b) of title 11 of the United States Code is amended by striking out the comma after “of the debtor”. Sec. 527. (a) Section 1307(b) of title 11 of the United States Code is amended by inserting a comma after “time”. (b) Section 1307(c) of title 11 of the United States Code as amended by section 315 is amended— Ante, p. 356. (1) in paragraph (5), as redesignated by inserting “a request made for” before “additional”; (2) in paragraph (7), as redesignated by striking out “and” after the semicolon and inserting in lieu thereof “or”; and (3) in paragraph (8), as redesignated by inserting “other than completion of payments under the plan” after ‘In the plan”. Sec. 528. (a) Section 1322(a)(2) of title 11 of the United States Code is amended by inserting a comma after “payments”. (b) Section 1322(b) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “, or leave unaffected the rights of holders of any class of claims” before the semicolon; (2) in paragraph (4), by inserting “other” after “claim or any”; (3) in paragraph (7), by— (A) inserting “subject to section 365 of this title,” before “provide”; (B) striking out “or rejection” and inserting in lieu thereof rejection, or assignment”; and (C) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”; and (4) in paragraph (8), by striking out “any”. Sec. 529. Section 1324 of title 11 of the United States Code is amended by striking out “the” the second place it appears. Sec. 530. Section 1325(a)(1) of title 11 of the United States Code is amended by inserting “the” before “other”. Sec. 531. Section 1326(b)(2) of title 11 of the United States Code as amended by section 318 is amended by inserting “of this title” after Ante, p. 357. “1302(d)”. Sec. 532. Section 1328(e) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “by the debtor” after “obtained”; and (2) in paragraph (2), by striking out “knowledge of such fraud came to the requesting party” and inserting in lieu thereof “the requesting party did not know of such fraud until”. Sec. 533. Section 1329(a) of title 11 of the United States Code is amended— (1) by inserting “of the plan” after “confirmation”; (2) by striking out “a plan” and inserting in lieu thereof “such plan”; and (3) in paragraph (3), by striking out the comma. Sec. 534. Section 151302(a) of title 11 of the United States Code is amended by inserting “, or shall appoint a disinterested person to serve,” after “The United States trustee shall serve”. Subtitle J— Collective Bargaining Agreements Sec. 541. (a) Title 11 of the United States Code is amended by adding after section 1112 the following new section: “§ 1113. Rejection of collective bargaining agreements “(a) The debtor in possession, or the trustee if one has been appointed under the provisions of this chapter, other than a trustee 11 USC 1161. 45 USC 151. in a case covered by subchapter IV of this chapter and by title I of the Railway Labor Act, may assume or reject a collective bargaining agreement only in accordance with the provisions of this section. “(b) (1) Subsequent to filing a petition and prior to filing an application seeking rejection of a collective bargaining agreement, the debtor in possession or trustee (hereinafter in this section ‘trustee’ shall include a debtor in possession), shall— “(A) make a proposal to the authorized representative of the employees covered by such agreement, based on the most complete and reliable information available at the time of such proposal, which provides for those necessary modifications in the employees benefits and protections that are necessary to permit the reorganization of the debtor and assures that all creditors, the debtor and all of the affected parties are treated fairly and equitably; and “(B) provide, subject to subsection (d)(3), the representative of the employees with such relevant information as is necessary to evaluate the proposal. “(2) During the period beginning on the date of the making of a proposal provided for in paragraph (1) and ending on the date of the hearing provided for in subsection (d)(1), the trustee shall meet, at reasonable times, with the authorized representative to confer in good faith in attempting to reach mutually satisfactory modifications of such agreement. “(c) The court shall approve an application for rejection of a collective bargaining agreement only if the court finds that— “(1) the trustee has, prior to the hearing, made a proposal that fulfills the requirements of subsection (b)(1); “(2) the authorized representative of the employees has refused to accept such proposal without good cause; and “(3) the balance of the equities clearly favors rejection of such agreement. “(d) (1) Upon the filing of an application for rejection the court shall schedule a hearing to be held not later than fourteen days after the date of the filing of such application. All interested parties may appear and be heard at such hearing. Adequate notice shall be provided to such parties at least ten days before the date of such nearing. The court may extend the time for the commencement of such hearing for a period not exceeding seven days where the circumstances of the case, and the interests of justice require such extension, or for additional periods of time to which the trustee and representative agree. “(2) The court shall rule on such application for rejection within thirty days after the date of the commencement of the hearing. In the interests of justice, the court may extend such time for ruling for such additional period as the trustee and the employees’ representative may agree to. If the court does not rule on such application within thirty days after the date of the commencement of the hearing, or within such additional time as the trustee and the employees’ representative may agree to, the trustee may terminate or alter any provisions of the collective bargaining agreement pending the ruling of the court on such application. “(3) The court may enter such protective orders, consistent with Confidentiality. the need of the authorized representative of the employee to evaluate the trustee’s proposal and the application for rejection, as may be necessary to prevent disclosure of information provided to such representative where such disclosure could compromise the position of the debtor with respect to its competitors in the industry in which it is engaged. “(e) If during a period when the collective bargaining agreement continues in effect, and if essential to the continuation of the debtor’s business, or in order to avoid irreparable damage to the estate, the court, after notice and a hearing, may authorize the trustee to implement interim changes in the terms, conditions, wages, benefits, or work rules provided by a collective bargaining agreement. Any hearing under this paragraph shall be scheduled in accordance with the needs of the trustee. The implementation of such interim changes shall not render the application for rejection moot. “(f) No provision of this title shall be construed to permit a trustee to unilaterally terminate or alter any provisions of a collective bargaining agreement prior to compliance with the provisions of this section.”. (b) The table of sections for chapter 11 of title 11, United States Code, is amended by inserting after the item relating to section 1112 the following new item: “1113. Rejection of collective bargaining agreements.”. (c) The amendments made by this section shall become effective Effective date. 11 USC 1113 note. upon the date of enactment of this Act; provided that this section shall not apply to cases filed under title 11 of the United States Code which were commenced prior to the date of enactment of this section. Subtitle K— Miscellaneous Sec. 551. If any provision of this title or any amendment made by Provisions held invalid. 11 USC 101 note. this title, or the application thereof to any person or circumstance is held invalid, the provisions of every other part, and their application shall not be affected thereby. Sec. 552. Notwithstanding the provisions of section 8331(22) of title 5, United States Code, or any other provision of law, for purposes of section 8339(n) of title 5, United States Code, any individual appointed under section 34 of the Bankruptcy Act who served as a United States bankruptcy judge for Ante, p. 343. the district of Oregon or for the Central district of California until March 31, 1984, shall receive an annuity computed with respect to his service as a referee in bankruptcy and as a bankruptcy judge, and his military service (not exceeding five years) creditable under section 8332 of title 5, United States Code, by multiplying 2¼ per centum of his average annual pay by the years of that service. Sec. 553. (a) Except as otherwise provided in this section the amendments made by this title shall become effective to cases filed 90 days after the date of enactment of this Act. (b) The amendments made by section 426(b) shall become effective upon the date of enactment of this Act. (c) The amendments made by subtitle J, shall become effective as provided in section 541(c).Pub. L. 98–353 title III · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(40)
Pub. L. 98–353, §§ 391(1), 421(j)(2), redesignated successively former par. (35) as (37) and again as (40). Former par. (40) redesignated successively as (42) and again as (46)
Source evidence
Code amendment note
Par. (40). Pub. L. 98–353, §§ 391(1), 421(j)(2), redesignated successively former par. (35) as (37) and again as (40). Former par. (40) redesignated successively as (42) and again as (46).Enacted provision · exact public law
TITLE III— AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE Subtitle A— Consumer Credit Amendments Sec. 301. Section 109 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Notwithstanding any other provision of this section, no individual may be a debtor under this title who has been a debtor in a case pending under this title at any time in the preceding 180 days if— “(1) the case was dismissed by the court for willful failure of the debtor to abide by orders of the court, or to appear before the court in proper prosecution of the case; or “(2) the debtor requested and obtained the voluntary dismissal of the case following the filing of a request for relief from the automatic stay provided by section 362 of this title.”. Sec. 302. Section 342 of title 11, United States Code, is amended— (1) by inserting “(a)” before “There shall be given”, and (2) by adding at the end thereof the following new subsection: “(b) Prior to the commencement of a case under this title by an individual whose debts are primarily consumer debts, the clerk shall give written notice to such individual that indicates each chapter of this title under which such individual may proceed.”. Sec. 303. Section 349(a) of title 11, United States Code, is amended by inserting before the period at the end thereof nor does the dismissal of a case under this title prejudice the debtor with regard to the filing of a subsequent petition under this title, except as Supra. provided in section 109(f) of this title”. Sec. 304. Section 362 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(h) An individual injured by any willful violation of a stay provided by this section shall recover actual damages, including costs and attorneys’ fees, and, in appropriate circumstances, may recover punitive damages.”. Sec. 305. Section 521 of title 11, United States Code, is amended— (1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, (2) in paragraph (1) by inserting “a schedule of current income and current expenditures,” after “liabilities,”, and (3) by inserting after paragraph (1) the following new paragraph: “(2) if an individual debtor’s schedule of assets and liabilities includes consumer debts which are secured by property of the estate— “(A) within thirty days after the date of the filing of a petition under chapter 7 of this title or on or before the date of the meeting of creditors, whichever is earlier, or within such additional time as the court, for cause, within such period fixes, the debtor shall file with the clerk a statement of his intention with respect to the retention or surrender of such property and, if applicable, specifying that such property is claimed as exempt, that the debtor intends to redeem such property, or that the debtor intends to reaffirm debts secured by such property; “(B) within forty-five days after the filing of a notice of intent under this section, or within such additional time as the court, for cause, within such forty-five day period fixes, the debtor shall perform his intention with respect to such property, as specified by subparagraph (A) of this paragraph; and “(C) nothing in subparagraphs (A) and (B) of this paragraph shall alter the debtor’s or the trustee’s rights with regard to such property under this title;”. Sec. 306. (a) Section 522(b) of title 11, United States Code, is amended by striking out “Notwithstanding” and all that follows through “either—” and inserting in lieu thereof the following: “Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (1) or, in the alternative, paragraph (2) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Bankruptcy Rules, one 11 USC app. debtor may not elect to exempt property listed in paragraph (1) and the other debtor elect to exempt property listed in paragraph (2) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (1), where such election is permitted under the law of the jurisdiction where the case is filed. Such property is—”. (b) Section 522(d)(3) of title 11, United States Code, is amended by inserting “or $4,000 in aggregate value” after “item”. (c) Section 522(d)(5) of title 11, United States Code, is amended to read as follows: “(5) The debtor’s aggregate interest in any property, not to exceed in value $400 plus up to $3,750 of any unused amount of the exemption provided under paragraph (1) of this subsection”. (d) Section 522(m) of title 11, United States Code, is amended to read as follows: “(m) Subject to the limitation in subsection (b), this section shall apply separately with respect to each debtor in a joint case.”. Sec. 307. (a) Section 523(a)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “or” at the end thereof, (2) in subparagraph (B) by inserting “or” at the end thereof, and (3) by adding at the end thereof the following new subparagraph: “(C) for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $500 for ‘luxury goods or services’ incurred by an individual debtor on or within forty days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within twenty days before the order for relief under this title, are presumed to be nondischargeable; ‘luxury goods or services’ do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.);”. (b) Section 523(d) of title 11, United States Code, is amended to read as follows: “(d) If a creditor requests a determination of dischargeability of a consumer debt under subsection (a)(2) of this section, and such debt is discharged, the court shall grant judgment in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding if the court finds that the position of the creditor was not substantially justified, except that the court shall not award such costs and fees if special circumstances would make the award unjust.”. Sec. 308. (a) Section 524(a)(2) of title 11, United States Code, is amended by striking out “or from property of the debtor,”. (b) Section 524(c) of title 11, United States Code, is amended— (1) by striking out paragraph (2), (2) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively, and (3) by inserting after paragraph (1) the following new paragraphs: “(2) such agreement contains a clear and conspicuous statement which advises the debtor that the agreement may be rescinded at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of rescission to the holder of such claim; “(3) such agreement has been filed with the court and, if applicable, accompanied by a declaration or an affidavit of the attorney that represented the debtor during the course of negotiating an agreement under this subsection, which states that such agreement— “(A) represents a fully informed and voluntary agreement by the debtor; and “(B) does not impose an undue hardship on the debtor or a dependent of the debtor; “(4) the debtor has not rescinded such agreement at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of recission to the holder of such claim;” and (4) by amending paragraph (6), as so redesignated, to read as follows: “(6) (A) in a case concerning an individual who was not represented by an attorney during the course of negotiating an agreement under this subsection, the court approves such agreement as— “(i) not imposing an undue hardship on the debtor or a dependent of the debtor; and “(ii) in the best interest of the debtor. “(B) Subparagraph (A) shall not apply to the extent that such debt is a consumer debt secured by real property.”. (c) Section 524(d)(2) of title 11, United States Code, is amended by striking out “subsection (c)(4)” and inserting in lieu thereof “subsection (c)(6)”. (e) Section 524 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Nothing contained in subsection (c) or (d) of this section prevents a debtor from voluntarily repaying any debt.”. Sec. 309. Section 525 of title 11, United States Code, is amended— (1) by inserting “(a)” before “Except”, (2) by inserting “the” before “Perishable”, and (3) by adding at the end thereof the following new subsection: Employment and unemployment. Discrimination, prohibition. 11 USC note prec. 101. “(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt— “(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act; “(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or “(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.”. Sec. 310. Section 547(c) of title 11, United States Code, is amended— (1) in paragraph (5) by striking out “or” at the end thereof, (2) in paragraph (6) by striking out the period at the end thereof and inserting in lieu thereof “; or”, and (3) by adding at the end thereof the following new paragraph: “(7) if, in a case filed by an individual debtor whose debts are primarily consumer debts, the aggregate value of all property that constitutes or is affected by such transfer is less than $600.”. Sec. 311. (a) Section 704 of title 11, United States Code, is amended— (1) by redesignating paragraphs (3), (4), (5), (6), (7), and (8) as paragraphs (4), (5), (6), (7), (8), and (9), respectively, and (2) by inserting after paragraph (2) the following new paragraph: “(3) ensure that the debtor shall perform his intention as specified in section 521(2)(B) of this title;”. Ante, p. 352. (b) (1) Section 1106(a)(1) of title 11, United States Code, is amended by striking out “704(4), 704(6), 704(7), and 704(8)” and inserting in lieu thereof “704(5), 704(7), 704(8), and 704(9)”. (2) Section 1304(c) of title 11, United States Code, is amended by striking out “section 704(7)” and inserting in lieu thereof “section 704(8)”. (3) Section 15103(f) of title 11, United States Code, is amended by striking out “704(8),” and inserting in lieu thereof “704(9),”. (4) Section 151301(b)(1) of title 11, United States Code, is amended 11 USC 151302. by striking out “and 704(8)” and inserting in lieu thereof “, 704(7), and 704(9)”. Sec. 312. Section 707 of title 11, United States Code, is amended— (1) by inserting “(a)” before “The court may” and (2) by adding at the end thereof the following new subsection: “(b) After notice and a hearing, the court, on its own motion and not at the request or suggestion of any party in interest, may dismiss a case filed by an individual debtor under this chapter whose debts are primarily consumer debts if it finds that the granting of relief would be a substantial abuse of the provisions of this chapter. There shall be a presumption in favor of granting the relief requested by the debtor.”. Sec. 313. Section 1301 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(d) Twenty days after the filing of a request under subsection (c)(2) of this section for relief from the stay provided by subsection (a) of this section, such stay is terminated with respect to the party in interest making such request, unless the debtor or any individual that is liable on such debt with the debtor files and serves upon such party in interest a written objection to the taking of the proposed action.”. Sec. 314. Section 1302(b) of title 11, United States Code, is amended— (1) by amending paragraph (1) to read as follows: “(1) perform the duties specified in sections 704(2), 704(3), 704(4), 704(5), 704(6), 704(7), and 704(9) of this title;”; (2) in paragraph (2) by striking out “and” at the end thereof, (3) in paragraph (3) by striking out the period and inserting in lieu thereof “; and”, and (4) by adding at the end thereof the following new paragraph: “(4) ensure that the debtor commences making timely payments under section 1326 of this title.”. Sec. 315. Section 1307(c) of title 11, United States Code, is amended— (1) by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), respectively, and (2) by inserting after paragraph (3) the following new paragraph: “(4) failure to commence making timely payments under section 1326 of this title;”. Sec. 316. Section 1322(b)(1) of title 11, United States Code, is amended to read as follows: “(1) designate a class or classes of unsecured claims, as provided in section 1122 of this title, but may not discriminate unfairly against any class so designated; however, such plan may treat claims for a consumer debt of the debtor if an individual is liable on such consumer debt with the debtor differently than other unsecured claims;”. Sec. 317. Section 1325 of title 11, United States Code, is amended— (1) in subsection (a) by striking out “The” and inserting in lieu thereof “Except as provided in subsection (b), the”, (2) by redesignating subsection (b) as subsection (c), and (3) by inserting after subsection (a) the following new subsection: “(b) (1) If the trustee or the holder of an allowed unsecured claim objects to the confirmation of the plan, then the court may not approve the plan unless, as of the effective date of the plan— “(A) the value of the property to be distributed under the plan on account of such claim is not less than the amount of such claim; or “(B) the plan provides that all of the debtor’s projected disposable income to be received in the three-year period beginning on the date that the first payment is due under the plan will be applied to make payments under the plan. “(2) For purposes of this subsection, disposable income’ means income which is received by the debtor and which is not reasonably necessary to be expended— “(A) for the maintenance or support of the debtor or a dependent of the debtor; or “(B) if the debtor is engaged in business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business.”. Sec. 318. (a) Section 1326 of title 11, United States Code, is amended— (1) by redesignating subsections (a) and (b) as subsections (h) and (c), respectively, and (2) by inserting before such subsections the following new subsection: “(a) (1) Unless the court orders otherwise, the debtor shall commence making the payments proposed by a plan within 30 days after the plan is filed. “(2) A payment made under this subsection shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan. If a plan is not confirmed, the trustee shall return any such payments to the debtor, after deducting any unpaid claim allowed under section 503(b) of this title.”. (b) Section 15103(f) of title 11, United States Code, is amended by striking out “1326(a),” and inserting in lieu thereof “1326(b),”. Sec. 319. Section 1329(a) of title 11, United States Code, is amended by striking out “At” and all that follows through “modified to—”, and inserting in lieu thereof the following: “At any time after confirmation but before the completion of payments under a plan, the plan may be modified, upon request of the debtor, the trustee, or the holder of an allowed unsecured claim, to—”. Sec. 320. The Supreme Court shall prescribe general rules implementing Supreme Court of U.S. 28 USC 2075 note. Ante, p. 355. the practice and procedure to be followed under section 707(b) of title 11, United States Code. Section 2075 of title 28, United States Code, shall apply with respect to the general rules prescribed under this section. Sec. 321. Rule 2002 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision: “(n) In a voluntary case commenced under the Code by an individual debtor whose debts are primarily consumer debts, the clerk, or some other person as the court may direct, shall give the trustee and all creditors notice by mail of the order for relief not more than 20 days after the entry of such order.”. Sec. 322. Official Bankruptcy Form No. 1, referred to in Rule 1002 of the Bankruptcy Rules, is amended— 11 USC app. (1) by inserting after paragraph (5) the following: “(6) [If petitioner is an individual whose debts are primarily consumer debts.] Petitioner is aware that [he or she] may proceed under chapter 7 or 13 of title 11, United States Code, 11 USC 701 et seq.. 1301 et seq. understands the relief available under each such chapter, and chooses to proceed under chapter 7 of such title. “(7) [If petitioner is an individual whose debts are primarily consumer debts and such petitioner is represented by an attorney.] A declaration or an affidavit in the form of Exhibit ‘B’ is attached to and made a part of this petition.”, and (2) by inserting after Exhibit “A” at the end thereof the following new exhibit: “Exhibit ‘B’ “[If petitioner is an individual whose debts are primarily consumer debts, this Exhibit ‘B’ shall be completed and attached to the petition pursuant to paragraph (7) thereof.] Sec. 323. Section 408(c) of the Act of November 6, 1978 (Public Law 95–598; 92 Stat. 2687(c)), as amended by the Act of November 28, 1983 (Public Law 98–166; 97 Stat. 1071), is amended by striking out “September 30, 1984” and inserting in lieu thereof “September 30, 1986”. Sec. 324. Section 1103(b) of title 11, United States Code, is amended by striking out “A person” and inserting in lieu thereof “An attorney or accountant” Subtitle B— Amendments Relating to Grain Storage Facility Bankruptcy Sec. 350. Section 507(a) of title 11, United States Code, is amended— (1) by striking out “(5) Fifth” and inserting in lieu thereof “(6) Sixth” (2) by striking out “(6) Sixth” and inserting in lieu thereof “(7) Seventh”; and (3) by adding after paragraph (4) the following: “(5) Fifth, allowed unsecured claims of persons— “(A) engaged in the production or raising of grain, as Post, p. 359. defined in section 557(b)(1) of this title, against a debtor who owns or operates a grain storage facility, as defined in section 557(b)(2) of this title, for grain or the proceeds of grain, or “(B) engaged as a United States fisherman against a debtor who has acquired fish or fish produce from a fisherman through a safe or conversion, and who is engaged in operating a fish produce storage or processing facility— but only to the extent of $2,000 for each such individual.”. Sec. 351. Section 546 of title 11, United States Code, is amended— (1) in the first sentence of subsection (c) thereof, by striking out “The” and inserting in lieu thereof “Except as provided in subsection (d) of this section, the”; and (2) by redesignating subsection (d) as subsection (e); and (3) by inserting after subsection (c) the following: In the case of a seller who is a producer of grain sold to a grain storage facility, owned or operated by the debtor, in the ordinary course of such seller’s business (as such terms are defined Post, p. 359. in section 557 of this title) or in the case of a United States fisherman who has caught fish sold to a fish processing facility owned or operated by the debtor in the ordinary course of such fisherman’s business, the rights and powers of the trustee under sections 544(a), 545, 547, and 549 of this title are subject to any statutory or common law right of such producer or fisherman to reclaim such grain or fish if the debtor has received such grain or fish while insolvent, but— “(1) such producer or fisherman may not reclaim any grain or Claims. fish unless such producer or fisherman demands, in writing, reclamation of such grain or fish before ten days after receipt thereof by the debtor; and “(2) the court may deny reclamation to such a producer or fisherman with a right of reclamation that has made such a demand only if the court secures such claim by a lien.”. Sec. 352. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 557. Expedited determination of interests in, and abandonment or other disposition of grain assets “(a) This section applies only in a case concerning a debtor that owns or operates a grain storage facility and only with respect to grain and the proceeds of grain. This section does not affect the application of any other section of this title to property other than grain and proceeds of grain. “(b) In this section— “(1) ‘grain’ means wheat, corn, flaxseed, grain sorghum, barley, oats, rye, soybeans, other dry edible beans, or rice; “(2) ‘grain storage facility’ means a site or physical structure regularly used to store grain for producers, or to store grain acquired from prodùcers for resale; and “(3) ‘producer’ means an entity which engages in the growing of grain. “(c) (1) Notwithstanding sections 362, 363, 365, and 554 of this title, on the court’s own motion the court may, and on the request of the trustee or an entity that claims an interest in grain or the proceeds of grain the court shall, expedite the procedures for the determination of interests in and the disposition of grain and the proceeds of grain, by shortening to the greatest extent feasible such time periods as are otherwise applicable for such procedures and by establishing, by order, a timetable having a duration of not to exceed 120 days for the completion of the applicable procedure specified in subsection (d) of this section. Such time periods and such timetable may be modified by the court, for cause, in accordance with subsection (f) of this section. “(2) The court shall determine the extent to which such time periods shall be shortened, based upon— “(A) any need of an entity claiming an interest in such grain or the proceeds of grain for a prompt determination of such interest; “(B) any need of such entity for a prompt disposition of such grain; “(C) the market for such grain; “(D) the conditions under which such grain is stored; “(E) the costs of continued storage or disposition of such grain; “(F) the orderly administration of the estate; “(G) the appropriate opportunity for an entity to assert an interest in such grain; and “(H) such other considerations as are relevant to the need to expedite such procedures in the case. “(d) The procedures that may be expedited under subsection (c) of this section include— “(1) the filing of and response to— “(A) a claim of ownership; “(B) a proof of claim; “(C) a request for abandonment; “(D) a request for relief from the stay of action against property under section 362(a) of this title; “(E) a request for determination of secured status; “(F) a request for determination of whether such grain or the proceeds of grain— “(i) is property of the estate; “(ii) must be turned over to the estate; or “(iii) may be used, sold, or leased; and “(G) any other request for determination of an interest in such grain or the proceeds of grain; “(2) the disposition of such grain or the proceeds of grain, before or after determination of interests in such grain or the proceeds of grain, by way of— “(A) sale of such grain; “(B) abandonment; “(C) distribution; or “(D) such other method as is equitable in the case; “(3) subject to sections 701, 702, 703, 1104, and 1302 of this title, the appointment of a trustee or examiner and the retention and compensation of any professional person required to assist with respect to matters relevant to the determination of interests in or disposition of such grain or the proceeds of grain; and “(4) the determination of any dispute concerning a matter specified in paragraph (1), (2), or (3) of this subsection. “(e) (1) Any governmental unit that has regulatory jurisdiction over the operation or liquidation of the debtor or the debtor’s business shall be given notice of any request made or order entered under subsection (c) of this section. “(2) Any such governmental unit may raise, and may appear and be heard on, any issue relating to grain or the proceeds of grain in a case in which a request is made, or an order is entered, under subsection (c) of this section. “(3) The trustee shall consult with such governmental unit before taking any action relating to the disposition of grain in the possession, custody, or control of the debtor or the estate. “(f) The court may extend the period for final disposition of grain or the proceeds of grain under this section beyond 120 days if the court finds that— “(1) the interests of justice so require in light of the complexity of the case; and “(2) the interests of those claimants entitled to distribution of grain or the proceeds of grain will not be materially injured by such additional delay. “(g) Unless an order establishing an expedited procedure under subsection (c) of this section, or determining any interest in or approving any disposition of grain or the proceeds of grain, is stayed pending appeal— “(1) the reversal or modification of such order on appeal does not affect the validity of any procedure, determination, or disposition that occurs before such reversal or modification, whether or not any entity knew of the pendency of the appeal; and “(2) neither the court nor the trustee may delay, due to the appeal of such order, any proceeding in the case in which such order is issued. “(h) (1) The trustee may recover from grain and the proceeds of grain the reasonable and necessary costs and expenses allowable under section 503(b) of this title attributable to preserving or disposing of grain or the proceeds of grain, but may not recover from such grain or the proceeds of grain any other costs or expenses. “(2) Notwithstanding section 326(a) of this title, the dollar amounts of money specified in such section include the value, as of the date of disposition, of any grain that the trustee distributes in kind. “(i) In all cases where the quantity of a specific type of grain held by a debtor operating a grain storage facility exceeds ten thousand bushels, such grain shall be sold by the trustee and the assets thereof distributed in accordance with the provisions of this section.”. (b) The table of sections of chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: ‘557 Expedited determination of interests in and disposition of grain.”. Sec. 353. Section 901(a) of title 11, United States Code, is amended by inserting “557,” after “553,”. Sec. 354. Rule 3001 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision “(g) To the extent not inconsistent with the United States Warehouse Act or applicable State law, a warehouse receipt, scale ticket, or similar document of the type routinely issued as evidence of title by a grain storage facility, as defined in section 557 of title 11, shall constitute prima facie evidence of the validity and amount of a claim of ownership of a quantity of grain ”. Subtitle C— Leasehold Management Amendments Sec. 361. This subtitle may be cited as the “Leasehold Management Bankruptcy Amendments Act of 1983”. Sec. 362. (a) Section 365 of title 11, United States Code, is amended by amending subsections (a), (b), (c), and (d) to read as follows: “(a) Except as provided in sections 765 and 766 of this title and in subsections (b), (c), and (d) of this section, the trustee, subject to the court’s approval, may assume or reject any executory contract or unexpired lease of the debtor. “(b) (1) If there has been a default in an executory contract or unexpired lease of the debtor, the trustee may not assume such contract or lease unless, at the time of assumption of such contract or lease, the trustee— “(A) cures, or provides adequate assurance that the trustee will promptly cure, such default; “(B) compensates, or provides adequate assurance that the trustee will promptly compensate, a party other than the debtor to such contract or lease, for any actual pecuniary loss to such party resulting from such default; and “(C) provides adequate assurance of future performance under such contract or lease. “(2) Paragraph (1) of this subsection does not apply to a default that is a breach of a provision relating to— “(A) the insolvency or financial condition of the debtor at any time before the closing of the case; “(B) the commencement of a case under this title; or “(C) the appointment of or taking possession by a trustee in a case under this title or a custodian before such commencement. “(3) For the purposes of paragraph (1) of this subsection and paragraph (2)(B) of subsection (t), adequate assurance of future performance of a lease of real property in a shopping center includes adequate assurance— “(A) of the source of rent and other consideration due under such lease, and in the case of an assignment, that the financial condition and operating performance of the proposed assignee and its guarantors, if any, shall be similar to the financial condition and operating performance of the debtor and its guarantors, if any, as of the time the debtor became the lessee under the lease; “(B) that any percentage rent due under such lease will not decline substantially; “(C) that assumption or assignment of such lease is subject to all the provisions thereof, including (but not limited to) provisions such as a radius, location, use, or exclusivity provision, and will not breach any such provision contained in any other lease, financing agreement, or master agreement relating to such shopping center; and “(D) that assumption or assignment of such lease will not disrupt any tenant mix or balance in such shopping center. “(4) Notwithstanding any other provision of this section, if there has been a default in an unexpired lease of the debtor, other than a default of a kind specified in paragraph (2) of this subsection, the trustee may not require a lessor to provide services or supplies incidental to such lease before assumption of such lease unless the lessor is compensated under the terms of such lease for any services and supplies provided under such lease before assumption of such lease. “(c) The trustee may not assume or assign any executory contract or unexpired lease of the debtor, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties, if— “(1) (A) applicable law excuses a party, other than the debtor, to such contract or lease from accepting performance from or rendering performance to an entity other than the debtor or the debtor in possession or an assignee of such contract or lease, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties; and “(B) such party does not consent to such assumption or assignment; or “(2) such contract is a contract to make a loan, or extend other debt financing or financial accommodations, to or for the benefit of the debtor, or to issue a security of the debtor; or “(3) such lease of nonresidential real property has been terminated under applicable nonbankruptcy law prior to the order for relief. “(d) (1) In a case under chapter 7 of this title, if the trustee does not assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor within 60 days after the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such contract or lease is deemed rejected. “(2) In a case under chapter 9, 11, or 13 of this title, the trustee 11 USC 901 et seq., 1101 et seq., 1301 et seq. may assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor at any time before the confirmation of a plan but the court, on the request of any party to such contract or lease, may order the trustee to determine within a specified period of time whether to assume or reject such contract or lease. “(3) The trustee shall timely perform all the obligations of the debtor, except those specified in section 365(b)(2), arising from and Ante, p. 361. after the order for relief under any unexpired lease of nonresidential real property, until such lease is assumed or rejected, notwithstanding section 503(b)(1) of this title. The court may extend, for cause, the time for performance of any such obligation that arises within 60 days after the date of the order for relief, but the time for performance shall not be extended beyond such 60-day period. This subsection shall not be deemed to affect the trustee’s obligations under the provisions of subsection (b) or (f) of this section. Acceptance of any such performance does not constitute waiver or relinquishment of the lessor’s rights under such lease or under this title. “(4) Notwithstanding paragraphs (1) and (2), in a case under any chapter of this title, if the trustee does not assume or reject an unexpired lease of nonresidential real property under which the debtor is the lessee within 60 days after the date of the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such lease is deemed rejected, and the trustee shall immediately surrender such nonresidential real property to the lessor.”. (b) Section 365 is further amended by adding at the end thereof the following new subsection: “(l) If an unexpired lease under which the debtor is the lessee is assigned pursuant to this section, the lessor of the property may require a deposit or other security for the performance of the debtor’s obligations under the lease substantially the same as would have been required by the landlord upon the initial leasing to a similar tenant. “(m) For purposes of this section 365 and sections 541(b)(2) and Real property. Infra. 362(b)(9), leases of real property shall include any rental agreement to use real property.”. Sec. 363. (a) Section 541(b) of title 11, United States Code, is amended to read as follows: “(b) Property of the estate does not include— “(1) any power that the debtor may exercise solely for the benefit of an entity other than the debtor; or “(2) any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease before the commencement of the case under this title, and ceases to include any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease during the case.”. (b) Section 362(b) of title 11 of the United States Code is amended by— (1) striking out “or” at the end of paragraph (7), (2) replacing the period after paragraph (8) with “; or”, and (3) adding the following after paragraph (8): “(9) under subsection (a) of this section, of any act by a lessor to the debtor under a lease of nonresidential real property that has terminated by the expiration of the stated term of the lease before the commencement of or during a case under this title to obtain possession of such property.”. Subtitle D— Amendments to Title 11, Section 523 Relating to the Discharge of Debts Incurred by Persons Driving While Intoxicated Sec. 371. Section 523(a) of title 11, United States Code, is amended by— (1) striking out “or” at the end of paragraph (8); and (2) by adding the following new paragraph after such paragraph: “(9) to any entity, to the extent that such debt arises from a judgment or consent decree entered in a court of record against the debtor wherein liability was incurred by such debtor as a result of the debtor’s operation of a motor vehicle while legally intoxicated under the laws or regulations of any jurisdiction within the United States or its territories wherein such motor vehicle was operated and within which such liability was incurred; or”. Subtitle E— Referees Salary and Expense Fund Sec. 381. This subtitle may be cited as the “Referees Salary and Expense Fund Act of 1984”. Sec. 382. Section 403(e) of the Act of November 6, 1978 (92 Stat. 2683; Public Law 95–598), is amended to read as follows: “(e) Notwithstanding subsection (a) of this section— “(1) a fee may not be charged under section 40c(2)(a) of the Bankruptcy Act in a case pending under such Act after September 30, 1979, to the extent that such fee exceeds $200,000; “(2) a fee may not be charged under section 40c(2)(b) of the Bankruptcy Act in a case in which the plan is confirmed after September 30, 1978, or in which the final determination as to the amount of such fee is made after September 30, 1979, notwithstanding an earlier confirmation date, to the extent that such fee exceeds $100,000; “(3) after September 30, 1979, all moneys collected for payment into the referees’ salary and expense fund in cases filed 11 USC note prec. 101. under the Bankruptcy Act shall be collected and paid into the general fund of the Treasury; and “(4) any balance in the referees’ salary and expense fund in the Treasury on October 1, 1979, shall be transferred to the general fund of the Treasury and the referees’ salary and expense fund account shall be closed.”. Subtitle F— Amendments Regarding Repurchase Agreements Sec. 391. Section 101 of title 11, United States Code, is amended— (1) by redesignating paragraphs (35), (36), (37), (38), (39), (40), and (41), as paragraphs (37), (38), (39), (40), (41), (42), and (43), respectively, and (2) by inserting after paragraph (34) the following new paragraphs: “(35) ‘repo participant’ means an entity that, on any day during the period beginning 90 days before the date of the filing of the petition, has an outstanding repurchase agreement with the debtor; “(36) ‘repurchase agreement’ (which definition also applies to Securities. a reverse repurchase agreement) means an agreement, including related terms, which provides for the transfer of certificates of deposit, eligible bankers’ acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, or securities with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, or securities as described above, at a date certain not later than one year after such transfers or on demand, against the transfer of funds;”. Sec. 392. Section 362(b) of title 11, United States Code, is Ante, p. 363. amended— (a) by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively, and (b) by inserting after paragraph (6) the following new paragraph: “(7) under subsection (a) of this section, of the setoff by a repo participant, of any mutual debt and claim under or in connection with repurchase agreements that constitutes the setoff of a claim against the debtor for a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, arising out of repurchase agreements against cash, securities, or other property held by or due from such repo participant to margin, guarantee, secure or settle repurchase agreements;”. Sec. 393. Section 546 of title 11, United States Code, is amended by Ante, p. 358. inserting after subsection (e), as redesignated by section 251, the following: Notwithstanding sections 544, 545, 547, 548(a)(2), and 548(b) of this title, the trustee may not avoid a transfer that is a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, made by or to a repo participant, in connection with a repurchase agreement and that is made before the commencement of the case, except under section 548(a)(1) of this title.”. Sec. 394. Section 548(d)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “and” at the end thereof; (2) in subparagraph (B) by striking out the period at the end thereof and inserting in lieu thereof “; and”; and by inserting after paragraph (B) the following new subparagraph: “(C) a repo participant that receives a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, in connection with a repurchase agreement, takes for value to the extent of such payment.”. Sec. 395. Section 553(b)(1) of title 11, United States Code, is amended by inserting “, 362(b)(7),” after “362(b)(6)”. Sec. 396. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 559. Contractual right to liquidate a repurchase agreement “The exercise of a contractual right of a repo participant to cause the liquidation of a repurchase agreement because of a condition of the kind specified in section 365(e)(1) of this title shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title, unless, where the debtor is a stockbroker or securities clearing agency, such order is authorized under the provisions of the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) or any statute administered by the Securities and Exchange Commission. In the event that a repo participant liquidates one or more repurchase agreements with a debtor and under the terms of one or more such agreements has agreed to deliver assets subject to repurchase agreements to the debtor, any excess of the market prices received on liquidation of such assets (or if any such assets are not disposed of on the date of liquidation of such repurchase agreements, at the prices available at the time of liquidation of such repurchase agreements from a generally recognized source or the most recent closing bid quotation from such a source) over the sum of the stated repurchase prices and all expenses in connection with the liquidation of such repurchase agreements shall be deemed property of the estate, subject to the available rights of setoff. As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw, applicable to each party to the repurchase agreement, of a national securities exchange, a national securities association, or a securities clearing agency, and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal business practice.”. (b) The analysis of sections for chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: “559. Contractual right to liquidate a repurchase agreement.”. Subtitle G— Amendments to Title 11, Section 365 of the United States Code to Provide Adequate Protection for Timeshare Consumers Sec. 401. Title 11, United States Code, section 101 is hereby amended by— (1) redesignating paragraph (43), as redesignated by section Ante, p. 364. Real property. 391, as paragraph (44); and (2) adding the following paragraph after paragraph (42), as redesignated in section 391: “(43) ‘timeshare plan’ means and shall include that interest purchased in any arrangement, plan, scheme, or similar device, but not including exchange programs, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, right to use agreement, or by any other means, whereby a purchaser, in exchange for consideration, receives a right to use accommodations, facilities, or recreational sites, whether improved or unimproved, for a specific period of time less than a full year during any given year, but not necessarily for consecutive years, and which extends for a period of more than three years. A ‘timeshare interest’ is that interest purchased in a timeshare plan which grants the purchaser the right to use and occupy accommodations, facilities, or recreational sites, whether improved or unimproved, pursuant to a timeshare plan.”. Sec. 402. Section 365(h)(1) of title 11, United States Code, is Real property. amended to read as follows: “(h) (1) If the trustee rejects an unexpired lease of real property of the debtor under which the debtor is the lessor, or a timeshare interest under a timeshare plan under which the debtor is the timeshare interest seller, the lessee or timeshare interest purchaser under such lease or timeshare plan may treat such lease or time-share plan as terminated by such rejection, where the disaffirmance by the trustee amounts to such a breach as would entitle the lessee or timeshare interest purchaser to treat such lease as terminated by virtue of its own terms, applicable nonbankruptcy law, or other agreements the lessee or timeshare interest purchaser has made with other parties; or, in the alternative, the lessee or timeshare interest purchaser may remain in possession of the leasehold or timeshare interest under any lease or timeshare plan the term of which has commenced for the balance of such term and for any renewal or extension of such term that is enforceable by such lessee or timeshare interest purchaser under applicable nonbankruptcy law.”. Sec. 403. Section 365(h)(2) of title 11, United States Code, is Real property. amended to read as follows: “(2) If such lessee or timeshare interest purchaser remains in possession as provided in paragraph (1) of this subsection, such lessee or timeshare interest purchaser may offset against the rent reserved under such lease or moneys due for such timeshare interest for the balance of the term after the date of the rejection of such lease or timeshare interest, and any such renewal or extension thereof, any damages occurring after such date caused by the non-performance of any obligation of the debtor under such lease or timeshare plan after such date, but such lessee or timeshare interest purchaser does not have any rights against the estate on account of any damages arising after such date from such rejection, other than such offset.”. Sec. 404. Section 365(i)(1) of title 11, United States Code, is Real property. amended to read as follows: “(i) (1) If the trustee rejects an executory contract of the debtor for the sale of real property or for the sale of a timeshare interest under a timeshare plan, under which the purchaser is in possession, such purchaser may treat such contract as terminated, or, in the alternative, may remain in possession of such real property or timeshare interest.”. Subtitle H— Miscellaneous Amendments to Title 11 Sec. 421. (a) Section 101(2)(D) of title 11 of the United States Code is amended by striking out “or all” after “business”. (b) Section 101(8)(B) of title 11 of the United States Code is amended by striking out the colon at the end thereof and inserting in lieu thereof a semicolon. (c) Section 101(9)(B) of title 11 of the United States Code is amended by inserting “348(d),” after “section”. (d) Section 101(14) of title 11 of the United States Code is amended by inserting “and” after “trust,”. (e) Section 101(24) of title 11 of the United States Code is amended by striking out “stock broker” and inserting in lieu thereof “stockbroker” (f) Section 101(26)(B)(ii) of title 11 of the United States Code is amended by— (1) striking out “separate” each place it appears and inserting in lieu thereof “nonpartnership”; and (2) striking out “(A)(ii) and inserting in lieu thereof “(A)”, (g) Section 101(30) of title 11 of the United States Code is amended to read as follows: (30) “person” includes individual, partnership, and corporation, but does not include governmental unit, Provided, however, That any governmental unit that acquires an asset from a person as a result of operation of a loan guarantee agreement, or as receiver or liquidating agent of a person, will be considered a person for purposes of section 1102 of this title. (h) Section 101(38)(B)(vi) of title 11 of the United States Code, as Ante, p. 364. redesignated by section 391 of this Act, is amended by— (1) striking out “certificate specified in clause (xii) of subparagraph (A)” and inserting in lieu thereof “certificate of a kind specified in subparagraph (A)(xii)”; and (2) striking out “the subject of such a registration statement” and inserting in lieu thereof “required to be the subject of a registration statement”. (i) Section 101(44) of title 11 of the United States Code, as so redesignated, is amended by striking out the period and inserting in lieu thereof “and foreclosure of the debtor’s equity of redemption; and”. (j) Section 101 of title 11 of the United States Code is amended— (1) by redesignating paragraphs (41) through (44), as previously redesignated, as paragraphs (45) through (48); (2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively; (3) by redesignating paragraphs (19) and (20) as paragraphs (20) and (21), respectively; (4) by inserting after paragraph (18) the following: “(19) ‘financial institution’ means a person that is a commercial or savings bank, industrial savings bank, savings and loan association, or trust company and, when any such person is acting as agent or custodian for a customer in connection with a securities contract, as defined in section Post, p. 382. 741(7) of this title, such customer;”; (5) by inserting after paragraph (21) as redesignated herein the following: “(22) ‘forward contract’ means a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity, or product or byproduct thereof, with a maturity date more than two days after the date the contract is entered into; “(23) ‘forward contract merchant’ means a person whose business consists in whole or in part of entering into forward contracts as or with merchants in commodities;”; (6) by inserting after paragraph (43) the following: “(44) ‘State’ includes the District of Columbia and Puerto Rico, except for the purpose of defining who may be a debtor under chapter 9 of this title;”; and 11 USC 901 el seq. (7) by inserting after paragraph (48) the following: “(49) ‘United States’, when used in a geographical sense, includes all locations where the judicial jurisdiction of the United States extends, including territories and possessions of the United States;”. Sec. 422. Section 102 of title 11 of the United States Code is amended by striking out “continued” and inserting in lieu thereof “contained” in paragraph (8). Sec. 423. Section 103(c) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stockbroker”. Sec. 424. (a) Subsections (a)(1), (b)(1), and (c)(1) of section 108 of title 11 of the United States Code are each amended by striking out “and” each place it appears and inserting in lieu thereof “or”. (b) Subsections (a), (b), and (c) of section 108 of title 11 of the United States Code are each amended by inserting “nonbankruptcy” after “applicable” and after “entered in a” each place such terms appear. Sec. 425. (a) Section 109 of title 11 of the United States Code, is amended by striking out “in the United States,” the first place it appears. (b) Section 109(c)(5)(D) of title 11 of the United States Code of this Act is amended by striking out “preference” and inserting in lieu thereof “transfer that is avoidable under section 547 of this title”. (c) Section 109(d) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stock-broker”. Sec. 426. (a) Section 303(b) of title 11 of the United States Code is amended by inserting “against a person” after “involuntary case”. (b) Section 303 of title 11 of the United States Code, is amended— (1) in subsection (b)(1) by inserting “or the subject on a bona fide dispute,” after “liability”; and (2) in subsection (h)(1) by inserting “unless such debts that are the subject of a bona fide dispute” after “due”. Sec. 427. Section 303(j)(2) of title 11 of the United States Code is amended by striking out “debtors” and inserting in lieu thereof “debtor”. Sec. 428. Section 321(b) of title 11 of the United States Code is amended by striking out “a case” and inserting in lieu thereof “the case”. Sec. 429. Section 322(b)(1) of title 11 of the United States Code is amended by inserting “required to be” after “bond”. Sec. 430. (a) Section 326(a) of title 11 of the United States Code is amended by striking out all the language beginning with “three percent” through “$50,000” the second place the latter appears and inserting in lieu thereof “and three percent on any amount in excess of $3,000”. (b) Section 326(d) of title 11 of the United States Code is amended to read as follows: “(d) The court may deny allowance of compensation for services or reimbursement of expenses of the trustee if the trustee failed to make diligent inquiry into facts that would permit denial of allowance under section 328(c) of this title or, with knowledge of such facts, employed a professional person under section 327 of this title.”. (c) Section 327(c) of title 11 of the United States Code is amended to read as follows: “(c) In a case under chapter 7 or 11 of this title, a person is not disqualified for employment under this section solely because of such person’s employment by or representation of a creditor, unless there is objection by another creditor, in which case the court shall disapprove such employment if there is an actual conflict of interest.”. Sec. 431. Section 328(a) of title 11 of the United States Code is amended by striking out “unanticipatable” and inserting in lieu thereof “not capable of being anticipated”. Sec. 432. (a) Section 329(a) of title 11 of the United States Code is amended by striking out “and” the first place it appears and inserting in lieu thereof “or”. (b) Section 329(b)(1) of title 11 of the United States Code is amended by striking out “trustee” and inserting in lieu thereof “estate” Sec. 433. Section 330(a) of title 11 of the United States Code is amended— (1) by striking out “to any parties in interest and to the United States trustee”; and (2) in paragraph (1), by striking out “time, the nature, the extent, and the value of such services” and inserting in lieu thereof “nature, the extent, and the value of such services, the time spent on such services”. Sec. 434. (a) Section 330(b) of title 11 of the United States Code is amended by striking out “$20” and inserting in lieu thereof “$45”. (b) Section 330 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(c) Unless the court orders otherwise, in a case under chapter 13 11 USC 1301 et seq. of this title the compensation paid to the trustee serving in the case shall not be less than $5 per month from any distribution under the plan during the administration of the plan.”. Sec. 435. Section 342 of title 11 of the United States Code as Ante, p. 352. amended by section 302 is further amended by amending subsection (a) to read as follows: “(a) There shall be given such notice as is appropriate, including notice to any holder of a community claim, of an order for relief in a case under this title.”. Sec. 436. Section 343 of title 11 of the United States Code is amended by striking out “examiner” the last place it appears and inserting in lieu thereof “examine”. Sec. 437. Section 345 of title 11 of the United States Code is amended by adding at the end thereof a new subsection (c) as follows: “(c) An entity with which such moneys are deposited or invested is authorized to deposit or invest such moneys as may be required under this section”. Sec. 438. Section 346(c)(2) of title 11 of the United States Code is amended by striking out “operation” and inserting in lieu thereof “corporation”. Sec. 439. Section 350(b) of title 11 of the United States Code is amended by striking out “a” and inserting in lieu thereof “A”. Sec. 440. Section 361(1) of title 11 of the United States Code is amended by inserting “a cash payment or” after “make ”. Sec. 441. (a) Section 362(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “action or” after “other”; and (2) in paragraph (3), by inserting “or to exercise control over property of the estate” after “estate” the second place it appears. (b) Section 362(b) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting “or to the extent that such act is accomplished within the period provided under section 547(e)(2)(A) of this title” after “title”; (2) in paragraph (6), by— (A) inserting “or due from” after “held by”; and (B) striking out “or secure commodity contracts” and inserting in lieu thereof “secure, or settle commodity contracts”, and by inserting “financial institution,” after “stockbroker” each time it appears. (3) in paragraph (8) as redesignated by section 392, by— Ante, p. 365. (A) striking out “said” and inserting in lieu thereof “the”; and (B) striking out “or” the last place it appears; (4) in paragraph (9) as redesignated by section 392, by striking out the period and inserting in lieu thereof a semicolon; and (5) by adding after paragraph (9) the following new paragraph: “(10) under subsection (a) of this section, of the presentment of a negotiable instrument and the giving of notice of and protesting dishonor of such an instrument.”. (c) Section 362(c)(2)(B) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. (d) Section 362(d)(2) of title 11 of the United States Code is amended by inserting “under subsection (a) of this section” after “property” the first place it appears. (e) Section 362(e) of title 11 of the United States Code is amended— (1) in the first sentence by inserting “the conclusion of” after “pending”; and (2) by striking out the last sentence and inserting in lieu thereof the following: “The court shall order such stay continued in effect pending the conclusion of the final hearing under subsection (d) of this section if there is a reasonable likelihood that the party opposing relief from such stay will prevail at the conclusion of such final hearing. If the nearing under this subsection is a preliminary hearing, then such final hearing shall be commenced not later than thirty days after the conclusion of such preliminary hearing.”. (f) Section 362(f) of title 11 of the United States Code is amended by— (1) striking out “The” and inserting in lieu thereof “Upon request of a party in interest, the”; and (2) inserting “with or” after “court,”. Sec. 442. (a) Section 363(a) of title 11 of the United States Code is amended by— (1) inserting “whenever acquired” after “equivalents”; and (2) inserting “and includes the proceeds, products, offspring, rents, or profits of property subject to a security interest as provided in section 552(b) of this title, whether existing before or after the commencement of a case under this title” after “interest”. (b) Section 363(b) of title 11 of the United States Code is amended by— (1) striking out “(b)” and inserting in lieu thereof “(b)(1)”; and (2) adding at the end thereof the following new paragraph: “(2) If notification is required under subsection (a) of section 7 A of the Clayton Act (15 U.S.C. 18a) in the case of a transaction under this subsection, then— “(A) notwithstanding subsection (a) of such section, such notification shall be given by the trustee; and “(B) notwithstanding subsection (b) of such section, the required waiting period shall end on the tenth day after the date of the receipt of such notification, unless the court, after notice and hearing, orders otherwise.”. (c) Section 363(e) of title 11 of the United States Code is amended by— (1) inserting “, with or without a hearing,” after “court”; and (2) striking out the last sentence. (d) Section 363(f)(3) of title 11 of the United States Code is amended by striking out “such interest” the second place it appears and inserting in lieu thereof “all liens on such property”. (e) Section 363(h) of title 11 of the United States Code is amended by striking out “immediately before” and inserting in lieu thereof “at the time of”. (f) Section 363(i) of title 11 of the United States Code is amended by striking out “compenation” and inserting in lieu thereof “compensation”. (g) Section 363(k) of title 11 of the United States Code is amended by striking out “if the holder” and inserting in lieu thereof “unless the court for cause orders otherwise the holder of such claim may bid at such sale, and, if the holder”. (h) Section 363(1) of title 11 of the United States Code is amended by— (1) striking out “The trustee” and inserting in lieu thereof “Subject to the provisions of section 365, the trustee”; (2) striking out “conditions” and inserting in lieu thereof “condition”; (3) striking out “a taking” and inserting in lieu thereof “or the taking”; and (4) striking out “interests” and inserting in lieu thereof “interest”. (i) Section 363(n) of title 11 of the United States Code is amended by— (1) striking out “void” and inserting in lieu thereof “avoid”; (2) striking out “voiding” and inserting in lieu thereof “avoiding”; and (3) amending the last sentence to read as follows: “In addition to any recovery under the preceding sentence, the court may grant judgment for punitive damages in favor of the estate and against any such party that entered into such an agreement in willful disregard of this subsection.”. (j) Section 363 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(o) In any hearing under this section— “(1) the trustee has the burden of proof on the issue of adequate protection; and “(2) the entity asserting an interest in property has the burden of proof on the issue of the validity, priority, or extent of such interest.”. Sec. 443. Section 366(a) of title 11 of the United States Code is amended by inserting “of the commencement of a case under this title or” after “basis”. Sec. 444. Section 501(d) of title 11 of the United States Code is amended by inserting “502(e)(2),” before “502(f)”. Sec. 445. (a) Section 502(a) of title 11 of the United States Code is amended by inserting “general” before “partner”. (b) Section 502(b) of title 11 of the United States Code is amended— (1) by inserting “(e)(2),” after “subsections”; (2) by inserting “in lawful currency of the United States” after “claim” the second place it appears; (3) in paragraph (1), by striking out “, and unenforceable against” and inserting in lieu thereof “and”; (4) by striking out paragraph (3) and redesignating paragraphs (4), (5), (6), (7), (8), and (9) as paragraphs (3), (4), (5), (6), (7), and (8), respectively; (5) in paragraph (3), as redesignated by paragraph (5), by inserting “the” after “exceeds”; (6) in paragraph (5), as redesignated by paragraph (5), by— (A) striking out “the claim” and inserting in lieu thereof “such claim”, and (B) striking out the comma after “petition”; and (7) in paragraph (7), as redesignated by paragraph (5), by— (A) inserting “the claim of an employee” before “for damages”; (B) striking out “and” in subparagraph (A)(i) and inserting in lieu thereof “or”; (C) striking out “the” the first place it appears in subparagraph (B) and inserting in lieu thereof “any”; and (D) inserting a comma after “such contract” in subparagraph (B). (c) Section 502(c) of title 11 of the United States Code is amended— (1) in paragraph (1) by— (A) inserting “the” before “fixing”; and (B) striking out “closing” and inserting in lieu thereof “administration”; and (2) in paragraph (2), by— (A) inserting “right to payment arising from a” after “any”; and (B) striking out “if such breach gives rise to a right to payment”. (d) Section 502(e)(1) of title 11, United States Code, is amended— (1) by striking out “and (b)” and inserting in lieu thereof “, (b), and (c)”; and (2) by striking out the commas before and after “or has secured”; (3) in subparagraph (B), by inserting “or disallowance” after “allowance”; and (4) in subparagraph (C), by— (A) striking out “requests subrogation” and inserting in lieu thereof “asserts a right of subrogation to the rights of such creditor”; and (B) striking out “to the rights of such creditor”. (e) Section 502(h) of title 11 of the United States Code is amended by striking out “522(i)” and inserting in lieu thereof “522”. (f) Section 502(j) of title 11 of the United States Code is amended to read as follows: “(j) A claim that has been allowed or disallowed may be reconsidered for cause. A reconsidered claim may be allowed or disallowed according to the equities of the case. Reconsideration of a claim under this subsection does not affect the validity of any payment or transfer from the estate made to a holder of an allowed claim on account of such allowed claim that is not reconsidered, but if a reconsidered claim is allowed and is of the same class as such holder’s claim, such holder may not receive any additional payment or transfer from the estate on account of such holder’s allowed claim until the holder of such reconsidered and allowed claim receives payment on account of such claim proportionate in value to that already received by such other holder. This subsection does not alter or modify the trustee’s right to recover from a creditor any excess payment or transfer made to such creditor.”. Sec. 446. Section 503(b) of title 11 of the United States Code is amended— (1) by striking out the comma after “be allowed”; (2) in paragraph (1)(C), by striking out the comma after “credit”; (3) in paragraph (2), by inserting “(a)” after “330”; (4) in paragraph (3), by inserting a comma after “paragraph (4) of this subsection”; (5) in paragraph (3)(C), by striking out the comma after “case”; (6) in paragraph (5), by striking out “and” after the semicolon; and (7) in paragraph (6), by striking out the period and inserting in lieu thereof “; and”. Sec. 447. Section 505(a) of title 11 of the United States Code is amended in paragraph (2)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 448. (a) Section 506(b) of title 11 of the United States Code is amended by inserting “for” after “provided”. (b) Paragraphs (1) and (2) of section 506(d) of title 11 of the United States Code are amended to read as follows: “(1) such claim was disallowed only under section 502(b)(5) or 502(e) of this title; or “(2) such claim is not an allowed secured claim due only to the failure of any entity to file a proof of such claim under section 501 of this title.”. Sec. 449. (a) Section 507(a) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting a comma after “severance”: (2) in paragraph (4), by striking out “employee benefit plans” and inserting in lieu thereof “an employee benefit plan”; (3) in paragraph (4)(B)(i), by inserting “each” after “covered by”; and (4) in paragraph (7) as redesignated by section 350 by inserting “only” after “units,”. (b) Section 507(c) of title 11 of the United States Code is amended by striking out “shall be treated the same” and inserting in lieu thereof “has the same priority”. Sec. 450. (a) Section 509(a) of title 11 of the United States Code is amended by— (1) striking out “subsections (b) and” and inserting in lieu thereof “subsection (b) or”; and (2) inserting “against the debtor” after “a creditor”. (b) Section 509(b)(1) of title 11 of the United States Code is amended by striking out “of a” and inserting in lieu thereof “of such”. (c) Section 509(c) of title 11 of the United States Code is amended by striking out “section 509 of this title” and inserting in lieu thereof “this section”. Sec. 451. Section 510(b) of title 11 of the United States Code is Claims. amended to read as follows: “(b) For the purpose of distribution under this title, a claim arising from rescission of a purchase or sale of a security of the debtor or of an affiliate of the debtor, for damages arising from the purchase or sale of such a security, or for reimbursement or contribution allowed under section 502 on account of such a claim, shall be subordinated to all claims or interests that are senior to or equal the claim or interest represented by such security, except that if such security is common stock, such claim has the same priority as common stock.”. Sec. 452. Section 521(3) of title 11 of the United States Code, as redesignated in section 305, is amended by inserting “, whether or Ante, p. 352. not immunity is granted under section 344 of this title” after “estate” the second place it appears. Sec. 453. (a) Section 522(a)(2) of title 11 of the United States Code is amended by inserting “or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate” after “petition”. (b) Section 522(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the case is dismissed, property exempted under this section is not liable during or after the case for any debt of the debtor that arose, or that is determined under section 502 of this title as if such debt had arisen, before the commencement of the case, except— “(1) a debt of a kind specified in section 523(a)(1) or 523(a)(5) of this title; or “(2) a debt secured by a lien that is— “(A) (i) not avoided under subsection (f) or (g) of this section or under section 544, 545, 547, 548, 549, or 724(a) of this title; and “(ii) not void under section 506(d) of this title; or Ante, p. 374. “(B) a tax lien, notice of which is properly filed.”. (c) Section 522(e) of title 11 of the United States Code is amended by striking out “exemptions” and inserting in lieu thereof “an exemption”. Sec. 454. (a) Section 523(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by— (A) striking out “obtaining” each place it appears; and (B) striking out “refinance of credit,” and inserting in lieu thereof “refinancing of credit, to the extent obtained”; and (2) by striking out “of higher education” in paragraph (8). (b) Section 523(a)(5) of title 11, United States Code, is amended by— (1) amending the first paragraph thereof by inserting the words “or other order of a court of record” after the words “divorce decree,”; and (2) inserting “, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State” after “Social Security Act”. (c) Section 523(c) of title 11 of the United States Code is amended by inserting “of a kind” after “debt” the first time it appears. Sec. 455. Section 524(a) of title 11 of the United States Code is amended by striking out “any act” each place it appears and inserting in lieu thereof “an act”. Sec. 456. (a) Section 541(a) of title 11 of the United States Code is amended— (1) by striking out “under” the second time it appears; (2) by inserting “and by whomever held” after “located”; (3) in paragraph (3), by inserting “329(b), 363(n),” after “section”; (4) in paragraph (5), by striking out “An” and inserting in lieu thereof “Any”; and (5) in paragraph (6), by striking out “and” and inserting in lieu thereof “or”. (b) Section 541(c) of title 11 of the United States Code is amended— (1) by inserting “in an agreement, transfer instrument, or applicable nonbankruptcy law” after “provision”; and (2) in paragraph (1)(B), by— (A) striking out “the taking” and inserting in lieu thereof “taking”; and (B) inserting “before such commencement” after “custodian”. (c) Section 541(d) of title 11 of the United States Code is amended by inserting “(1) or (2)” after “(a)”. (d) Section 541(e) of title 11 of the United States Code is repealed. Sec. 457. Section 542(e) of title 11 of the United States Code is amended by inserting “to turn over or” before “disclose”. Sec. 458. (a) Section 543(a) of title 11 of the United States Code is amended by inserting “, product, offspring, rents, or profits” after “proceeds”. (b) Section 543(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by— (A) inserting “held by or” after “debtor”; and (B) inserting “, product, offspring, rents, or profits” after “proceeds”; and (2) in paragraph (2), by inserting “, product, offspring, rents, or profits” after “proceeds”. (c) Section 543(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “or proceeds, product, off-spring, rents, or profits of such property” after “property”; and (2) in paragraph (3), by inserting “that has been” before “approved”. (d) Section 543(d) of title 11 of the United States Code is amended to read as follows: “(d) After notice and hearing, the bankruptcy court— “(1) may excuse compliance with subsection (a), (b), or (c) of this section, if the interests of creditors and, if the debtor is not insolvent, of equity security holders would be better served by permitting a custodian to continue in possession, custody, or control of such property, and “(2) shall excuse compliance with subsections (a) and (b)(1) of this section if the custodian is an assignee for the benefit of the debtor’s creditors that was appointed or took possession more than 120 days before the date of the filing of the petition, unless compliance with such subsections is necessary to prevent fraud or injustice.”. Sec. 459. Section 544(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “such” after “obtained”; (2) in paragraph (2), by striking out “; and” and inserting in lieu thereof “, or”; and (3) in paragraph (3), by— (A) inserting “, other than fixtures,” after “property”; and (B) inserting “and has perfected such transfer” after “purchaser” the second place it appears. Sec. 460. Section 545 of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by striking out “is” the first time it appears; (2) in paragraph (1)(C), by striking out “apponted” and inserting in lieu thereof appointed or authorized to take”; and (3) in paragraph (2), by striking out “on the date of of the filing the petition” each place it appears and inserting in lieu thereof “at the time of the commencement of the case”. Sec. 461. (a) Section 546(a) of title 11 of the United States Code is amended in paragraph (1) by striking out “and” and inserting in lieu thereof “or”. (b) Section 546(b) of title 11 of the United States Code is amended by striking out “the trustee under section 544, 545, or” and inserting in lieu thereof “a trustee under sections 544, 545, and”. (c) Section 546(c) of title 11 of the United States Code is amended— (1) by striking out “the trustee” and inserting in lieu thereof “a trustee”; (2) by striking out “right” the first place it appears; (3) by inserting “of goods that has sold goods to the debtor” after “seller” the first place it appears; (4) by striking out “of goods to the debtor” after “business,”; and (5) in paragraph (2), by— (A) inserting “the” after “if’; and (B) striking out “an administrative expense” and inserting in lieu thereof “a claim of a kind specified in section 503(b) of this title” (d) Section 546(e) of title 11 of the United States Code, as redesignated by section 351, is amended by inserting “financial institution” after “stockbroker”. Sec. 462. (a) Section 547(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “including proceeds of such property,” after “law,”; and (2) in paragraph (4), by— (A) striking out “, without penalty”; and (B) inserting “without penalty” after “payable”. (b) Section 547(b) of title 11 of the United States Code is amended— (1) by striking out “of property of the debtor” and inserting in lieu thereof “of an interest of the debtor in property”; and (2) in paragraph (4) by amending subparagraph (B) to read as follows: “(B) between ninety days and one year before the date of the Tiling of the petition, if such creditor at the time of such transfer was an insider;”. (c) Section 547 of title 11 of the United States Code is amended in subsection (c)(2) thereof by striking out subparagraph (B) of such subsection, and by redesignating subparagraphs (C) and (D) thereof as subparagraphs (B) and (C), respectively. (d) Section 547(c) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by inserting “by the debtor” after “incurred”; (2) in paragraph (3), by striking out “of” the first place it appears and inserting in lieu thereof “that creates”; (3) in paragraph (3)(B), by— (A) inserting “on or after “perfected”; and (B) striking out “such security interest attaches” and inserting in lieu thereof “the debtor receives possession of such property”; (4) in paragraph (5), by— (A) striking out “of” the first place it appears and inserting in lieu thereof “that creates”; and (B) striking out “all security interest” and inserting in lieu thereof “all security interests”; and (5) in paragraph (5)(A)(ii), by striking out “and” and inserting in lieu thereof “or”. (e) Section 547(d) of title 11 of the United States Code is amended by— (1) striking out “A” and inserting in lieu thereof “The”; (2) inserting “an interest in” after “transfer of’: (3) inserting “to or for the benefit of a surety” after “transferred”; and (4) inserting “such” after “reimbursement of’. (f) Section 547(e) of title 11 of the United States Code is amended in paragraph (2)(C)(i), by striking out “and” and inserting in lieu thereof “or”. (g) Section 547 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(g) For the purposes of this section, the trustee has the burden of proving the avoidability of a transfer under subsection (b) of this section, and the creditor or party in interest against whom recovery or avoidance is sought has the burden of proving the nonavoidability of a transfer under subsection (c) of this section.”. Sec. 463. (a) Section 548(a) of title 11 of the United States Code is amended— (1) by striking out “if the debtor” and inserting in lieu thereof “if the debtor voluntarily or involuntarily”; (2) in paragraph (1), by striking out “occurred” and inserting in lieu thereof “was made”; and (3) in paragraph (2)(B)(ii), by inserting “or a transaction” after “engaged in business”. (b) Section 548(c) of title 11 of the United States Code is amended by— (1) inserting “or may retain” after “lien on”; and (2) striking out “, may retain any lien transferred,”. (c) (1) Section 548(d)(1) of title 11 of the United States Code is amended by— (A) striking out “becomes so far” and inserting in lieu thereof “is so”; (B) striking out “such transfer could have been” and inserting in lieu thereof “applicable law permits such transfer to be”; and (C) striking out “occurs” and inserting in lieu thereof “is made”. (2) Section 548(d)(2)(B) of title 11 is amended by inserting “financial institution,” after “stockbroker”. Sec. 464. (a) Section 549(a) of title 11 of the United States Code is amended— (1) by striking out “(b) and (c)” and inserting in lieu thereof “(b) or (c)”; and (2) in paragraph (2)(A), by inserting “only” after “authorized”. (3) striking out “that occurs” and inserting in lieu thereof “made”; (4) striking out “is valid against the trustee to the extent of’ and inserting in lieu thereof “to the extent”; and (5) inserting “is” before “given”. (c) Section 549(c) of title 11 of the United States Code is amended Real property. to read as follows: “(c) The trustee may not avoid under subsection (a) of this section a transfer of real property to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value unless a copy or notice of the petition was filed, where a transfer of such real property may be recorded to perfect such transfer, before such transfer is so perfected that a bona fide purchaser of such property, against whom applicable law permits such transfer to be perfected, could not acquire an interest that is superior to the interest of such good faith purchaser. A good faith purchaser without knowledge of the commencement of the case and for less than present fair equivalent value has a lien on the property transferred to the extent of any present value given, unless a copy or notice of the petition was so filed before such transfer was so perfected”. (d) Section 549(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 465. (a) Section 550(a) of title 11 of the United States Code is amended by striking out “549, or 724(a) of this title” and inserting in lieu thereof “549, 553(b), or 724(a) of this title”. (b) Section 550(d) of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by inserting “or accruing to” after “by”; (2) in paragraph (1)(B), by striking out “value” and inserting in lieu thereof “the value of such property”; (3) in paragraph (2), by striking out subparagraphs (D) and (E) and inserting in lieu thereof the following: “(D) payment of any debt secured by a lien on such property that is superior or equal to the rights of the trustee; and”, and (4) in paragraph (2), by redesignating subparagraph (F) as subparagraph (E). (c) Section 550(e)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 466. Section 552(b) of title 11 of the United States Code is amended by— (1) inserting “522,” after “506(c),”; (2) striking out “a secured party enter” and inserting in lieu thereof “an entity entered”; and (3) striking out “except to the extent” and inserting in lieu thereof “except to any extent”. Sec. 467. Section 553(b)(1) of title 11 of the United States Code is amended by striking out “or 365(h)(1)” and inserting in lieu thereof “, 365(h)(2), or 365(i)(2)”. Sec. 468. (a) Subsections (a) and (b) of section 554 of title 11 of the United States Code are each amended by inserting “and benefit” after “value”. (b) Section 554(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the court orders otherwise, any property scheduled under section 521(a)(1) of this title not otherwise administered at the time of the closing of a case is abandoned to the debtor and administered for purposes of section 350 of this title.”. (c) Section 554(d) of title 11 of the United States Code is amended by striking out “section (a) or (b) of”. Sec. 469. Section 555 of title 11 of the United States Code is amended by inserting “, financial institution,” after “stockbroker”. Sec. 470. (a) Chapter 5 of title 11 of the United States Code as amended by section 352 is amended by adding at the end thereof the following new section: “§ 558. Defenses of the estate “The estate shall have the benefit of any defense available to the debtor as against any entity other than the estate, including statutes of limitation, statutes of frauds, usury, and other personal defenses. A waiver of any such defense by the debtor after the commencement of the case does not bind the estate.”. (b) The table of sections for chapter 5 of title 11 of the United States Code is amended by adding at the end thereof the following new item: “558. Defenses of the estate.”. Sec. 471. The table of sections for chapter 7 of title 11 of the United States Code is amended by striking out “Succesor” in the item relating to section 703 and inserting in lieu thereof “Succcssor” Sec. 472. (a) Section 702(b) of title 11 of the United States Code is amended by inserting “held” after “meeting of creditors”. (b) Section 702(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “of a kind” after “claims”; and (2) in paragraph (2), by inserting “a” after “for”. (c) Section 702(d) of title 11 of the United States Code is amended by striking out “subsection (c) of”. Sec. 473. Section 703(b) of title 11 of the United States Code is amended by striking out “specified in section 701(a) of this title. Sections 701(b) and 701(c) of this title apply to such interim trustee” and inserting in lieu thereof “and subject to the provisions of section 701 of this title”. Sec. 474. Section 704 of title 11 of the United States Code as amended by section 311 is amended in paragraph (1), by striking out Ante, p. 355. “up”. Sec. 475. Paragraphs (1) and (2) of section 707 of title 11 of the United States Code are each amended by striking out “and” and inserting in lieu thereof “or”. Sec. 476. (a) Section 723(a) of title 11 of the United States Code is amended by striking out all after “claims” and inserting in lie thereof “which are allowed in a case under this chapter concerning a partnership and with respect to which a general partner of the partnership is personally liable, the trustee shall have a claim against such general partner for the full amount of the deficiency”. (b) Section 723(c) of title 11 of the United States Code is amended by— (1) striking out “such case” each place it appears and inserting in lieu thereof “such partner’s case”; (2) striking out “be property” and inserting in lieu thereof “by property”; and (3) striking out “the kind” and inserting in lieu thereof “a kind”. Sec. 477. (a) Section 724(b) of title 11 of the United States Code is amended— (1) by striking out “taxes” and inserting in lieu thereof “a tax”; (2) in paragraph (2), by— (A) striking out “claims” and inserting in lieu thereof “any holder of a claim of a kind”; (B) striking out “sections” and inserting in lieu thereof “section”; and (C) striking out “and” and inserting in lieu thereof “or”; and (3) in paragraph (3), by inserting “tax” after “allowed”. (b) Section 724(c) of title 11 of the United States Code is amended by— (1) striking out “creditor” and inserting in lieu thereof “holder of a claim”; and (2) striking out “creditors” each place it appears and inserting in lieu thereof “holders”. (c) Section 724(d) of title 11 of the United States Code is amended by— (1) striking out “whose priority” and inserting in lieu thereof “the priority of which”; and (2) inserting ‘ if such lien were” after “the same as”. Sec. 478. Section 725 of title 11 of the United States Cede is amended by inserting “of property of the estate” after “distribution”. Sec. 479. (a) Section 726(b) of title 11 of the United States Code is amended by— (1) striking out “a particular paragraph” and inserting in lieu thereof “each such particular paragraph”; and (2) striking out “administrative expenses” each place it appears and inserting in lieu thereof “a claim allowed under section 503(b) of this title”; and (3) striking out “have” and inserting in lieu thereof “has”. (b) Section 726(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “Administrative expenses” and inserting in lieu thereof “Claims allowed under section 503 of this title”; and (2) in paragraph (2), by striking out “Claims other than for administrative expenses” and inserting in lieu thereof “Allowed claims, other than claims allowed under section 503 of this title,”. Sec. 480. (a) Section 727(a) of title 11 of the United States Code is amended— (1) in paragraph (6)(C), by striking out “property” and inserting in lieu thereof “properly”; (2) in paragraph (7), by inserting “, under this title or under the Bankruptcy Act,” after “another case”; and (3) in paragraph (8), by inserting a comma after “371”. (b) Section 727(c)(1) of title 11 of the United States Code is amended by inserting “the granting of a” after “to”. (c) Section 727(e)(2)(A) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 481. (a) Section 728(c) of title 11 of the United States Code is amended by striking out the comma after “taxable income”. (b) Section 728(d)(2) of title 11 of the United States Code is amended by inserting “otherwise” after “is”, and by striking out “otherwise” after “partner”. Sec. 482. Section 741 of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by— (A) striking out “the debtor” the first time it appears and inserting in lieu thereof “a person”; (B) striking out “holds” and inserting in lieu thereof “has”; (C) striking out “the debtor” the second and third time it appears and inserting in lieu thereof “such person”; and (D) striking out “business as a stockbroker” and inserting in lieu thereof “such person”s business as a stockbroker,”, (2) in paragraph (2)(B), by— (A) striking out “holds” and inserting in lieu thereof “has”; (B) striking out “the debtor” the first place it appears and inserting in lieu thereof “a person”; and (C) by striking out “the debtor” and inserting in lieu thereof “such person” in clause (ii); (3) in paragraph (4)(A)(i), by striking out “and that is” and inserting in lieu thereof “from and that is the lawful”; (4) in paragraph (6)(A)(i), by— (A) inserting a comma after “petition”; and (B) inserting “any” after “except”; and (5) in paragraph (7), by amending such paragraph to read as follows: “(7) ‘securities contract’ means contract for the purchase, sale, or loan of a security, including an option for the purchase or sale of a security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any option entered into on a national securities exchange relating to foreign currencies, or the guarantee of any settlement of cash or securities by or to a securities clearing agency;”; and (6) in paragraph (8) by inserting “a final settlement payment,” after “settlement payment on account,”. Sec. 483. Section 745(a) of title 11 of the United States Code is amended by inserting “the debtor for” after “by”. Sec. 484. (a) Section 752(a) of title 11 of the United States Code is amended by— (1) striking out “customers allowed” and in lieu thereof “customers’ allowed”; (2) inserting “of the kind” after “except claims”; and (3) inserting “such” before “customer property”. (b) Section 752(b)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 485. Section 761 of title 11 of the United States Code is amended in paragraph (10), by striking out “and that is” in subparagraph (A)(viii) and inserting in lieu thereof “from and that is the lawful”. Sec. 486. Section 763(a) of title 11 of the United States Code is amended by— (1) inserting “the debtor for” after “by”; and (2) striking out “deemed to be” and inserting in lieu thereof “treated as”. Sec. 487. Section 764(a) of title 11 of the United States Code is amended by inserting “by the debtor” after “any transfer”. Sec. 488. Section 765(a) of title 11 of the United States Code is amended by striking out “notice under”, and inserting in lieu thereof “notice required by”. Sec. 489. Section 766(j)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 490. Section 901(a) of title 11 of the United States Code is amended by inserting a comma after “1111(b)”. Sec. 491. Section 902(2) of title 11 of the United States Code is amended by striking out “title, legal or equitable, to real property against which has been levied a special assessment or special tax” and by inserting in lieu thereof “legal or equitable title to real property against which a special assessment or special tax has been levied”. Sec. 492. Section 903(2) of title 11 of the United States Code is amended by striking out “to” the first place it appears. Sec. 493. Chapter 9 of title 11 of the United States Code is 11 USC prec 921.. amended by striking out “SUBCHAPER II” and inserting in lieu thereof “SUBCHAPTER II”. Sec. 494. (a) Section 921(c) of title 11 of the United States Code is amended by— (1) striking out “an” and inserting in lieu thereof “any”; and (2) striking out the comma after “petition” the second place it appears, and after “faith”. (b) Section 921 of title 11 of the United States Code is amended by redesignating subsections (e) and (f) as subsections (d) and (e), respectively. (c) Section 921(a) is amended by striking out “109(c)” and inserting in lieu thereof “109(d)”. (d) Section 921(d) of title 11 of the United States Code, as so redesignated, is amended by striking out “subsection (d)” and inserting in lieu thereof “subsection (c)”. Sec. 495. Section 922(a)(1) of title 11 of the United States Code is amended by— (1) inserting “a” before “judicial”; and (2) inserting “action or” before “proceeding”. Sec. 496. Section 927(b) of title 11 of the United States Code is amended by inserting “of a plan under this chapter” after “confirmation”. Sec. 497. Section 943(b) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “to be taken”; and (2) by amending paragraph (5) to read as follows: “(5) except to the extent that the holder of a particular claim has agreed to a different treatment of such claim, the plan provides that on the effective date of the plan each holder of a claim of a kind specified in section 507(a)(1) of this title will receive on account of such claim cash equal to the allowed amount of such claim; and”. Sec. 498. Section 945(a) of title 11 of the United States Code is amended by striking out “execution” and inserting in lieu thereof “implementation”. Sec. 499. Section 1102(b)(1) of title 11 of the United States Code is amended by striking out “order for relief’ and inserting in lieu thereof “commencement of the case”. Sec. 500. (a) Section 1103(b) is amended by— (1) inserting “having an adverse interest” after “entity”; and (2) adding at the end thereof the following: “Representation of one or more creditors of the same class as represented by the committee shall not per se constitute the representation of an adverse interest/’. (b) Section 1103(c) of title 11 of the United States Code is amended— (1) in paragraph (3), by— (A) striking out “recommendations” and inserting in lieu thereof “determinations”; and (B) inserting “or rejections” after “acceptances”; and (2) in paragraph (4), by striking out “, if a trustee or examiner, as the case may be, has not previously been appointed under this chapter in the case”. Sec. 501. Section 1105 of title 11 of the United States Code is amended by striking out “estate, and” and inserting in lieu thereof “estate and of the”. Sec. 502. Section 1106(b) of title 11 of the United States Code is amended by inserting “, except to the extent that the court orders otherwise, before “any other”. Sec. 503. Section 1107(a) of title 11 of the United States Code is amended by inserting “serving in a case” after “on a trustee”. Sec. 504. Section 1108 of title 11 of the United States Code is amended by inserting “, on request of a party in interest and after notice and a hearing, after “court”. Sec. 505. (a) Section 1112(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by striking out “is an involuntary case originally commenced under this chapter” and inserting in lieu thereof “originally was commenced as an involuntary case under this chapter”; and (2) in paragraph (3), by striking but “on other than” and inserting in lieu thereof “other than on”. (b) Section 1112(b) of title 11 of the United States Code is amended— (1) in paragraph (5), by inserting “a request made for” before “additional”; and (2) in paragraph (8), by striking out “and” and inserting in lieu thereof “or”. Sec. 506. (a) Section 1121(c)(3) of title 11 of the United States Code is amended by striking out “the claims or interests of which are” and inserting in lieu thereof “of claims or interests that is”. (b) Section 1121(d) of title 11 of the United States Code is amended by inserting “made within the respective periods specified in subsection (c) of this section” after “interest”. Sec. 507. (a) Section 1123(a) of title 11 of the United States Code is amended— (1) by striking out “A” and inserting in lieu thereof “Notwithstanding any otherwise applicable nonbankruptcy law, a”; (2) in paragraph (1), by— (A) inserting a comma after “classes of claims”; and (B) by striking out “507(a)(6) of this title” and inserting in lieu thereof “507(a)(7) of this title,”; (3) in paragraph (3), by striking out “shall”; (4) in paragraph (5), by striking out “execution” and inserting in lieu thereof “implementation”, and (5) in paragraph (5)(G), by inserting “of’ after “waiving”. (b) Section 1123(b)(2) of title 11 of the United States Code is amended by— (1) striking out “or rejection” and inserting in lieu thereof “, rejection, or assignment”; and (2) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”. Sec. 508. Section 1124 of title 11 of the United States Code is amended— (1) by amending paragraph ()(A) to read as follows: “(A) cures any such default that occurred before or after the commencement of the case under this title, other than a default of a kind specified in section 365(b)(2) of this title;”; Ante, p. 361. and (2) in paragraph (3)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 509. (a) Section 1125(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “, but adequate information need not include such information about any other possible or proposed plan” after “plan”; (2) in paragraph (2)(B), by inserting “the” after “with”; and (3) in paragraph (2)(C), by inserting “or’ after “holders”. (b) Section 1125(d) of title 11 of the United States Code is amended by— (1) inserting “required under subsection (b) of this section” after “statement” the first place it appears; and (2) inserting or otherwise seek review of,” after “appeal from”. (c) Section 1125(e) of title 11 of the United States Code is amended by— (1) inserting “acceptance or rejection of a plan” after “solicits”; and (2) inserting “solicitation of acceptance or rejection of a plan or” after “governing”. Sec. 510. (a) Section 1126(b)(2) of title 11 of the United States Code is amended by striking out “1125(a)(1)” and inserting in lieu thereof “1125(a)”. (b) Section 1126(d) of title 11 of the United States Code is amended by inserting a comma after “such interests” the first place it appears. (c) Section 1126(f) of title 11 of the United States Code is amended by— (1) striking out “is deemed” and inserting in lieu thereof “, and each holder of a claim or interest of such class, are conclusively presumed”; (2) striking out “solicititation” and inserting in lieu thereof “solicitation”; and (3) striking out “interest” and inserting in lieu thereof “interests” (d) Section 1126(g) of title 11 of the United States Code is amended by striking out “any payment or compensation” and inserting in lieu thereof “receive or retain any property”. Sec. 511. (a) Section 1127(a) of title 11 of the United States Code is amended by— (1) inserting “of a plan” after “After the proponent”; and (2) inserting “of such plan” after “modification”. (b) Section 1127(b) of title 11 of the United States Code is amended by striking out “the court, after notice and a hearing, confirms such plan, as modified, under section 1129 of this title, and circumstances warrant such modification” and inserting in lieu thereof “circumstances warrant such modification and the court, after notice and a hearing, confirms such plan as modified, under section 1129 of this title”. Sec. 512. (a) Section 1129(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “chapter.” and inserting in lieu thereof “title.”; (2) in paragraph (2), by striking out “chapter.” and inserting in lieu thereof “title.”; (3) by amending paragraph (4) to read as follows: “(4) Any payment made or to be made by the proponent, by the debtor, or by a person issuing securities or acquiring property under the plan, for services or for costs and expenses in or in connection with the case, or in connection with the plan and incident to the case, has been approved by, or is subject to the approval of, the court as reasonable;”; (4) in paragraph (5)(A)(ii), by striking out the period and inserting in lieu thereof “; and”; (5) in paragraph (5)(B), by striking out “The” and inserting in lieu thereof “the”; (6) in paragraph (6), by inserting “governmental” after “Any”; (7) in paragraph (7), by— (A) inserting “of each impaired class of claims or interests” in lieu of “each class”; and (B) striking out “creditor’s” in subparagraph (B) and inserting in lieu thereof “holder’s”; (8) in paragraph (8), by inserting “of claims or interests” after “each class”; and (9) by amending paragraph (10) to read as follows: “(10) If a class of claims is impaired under the plan, at least one class of claims that is impaired under the plan has accepted the plan, determined without including any acceptance of the plan by any insider.”. (b) Section 1129(b) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by striking out “lien” each place it appears and inserting in lieu thereof “liens”; (2) in paragraph (2)(B)(ii), by inserting “under the plan” after “retain”, and (3) in paragraph (2)(C)(i), by— (A) striking out “claim” and inserting in lieu thereof “interest”; and (B) striking out “and the value” and inserting in lieu thereof “or the value”. (c) Section 1129(d) of title 11 of the United States Code is amended by— (1) inserting “the application of” after “avoidance of” the second place it appears; and (2) adding at the end thereof the following new sentence: “In any hearing under this subsection, the governmental unit has the burden of proof on the issue of avoidance.”. Sec. 513. (a) Section 1141(a) of title 11 of the United States Code is amended by striking out “any creditor or equity security holder of, or general partner in,” and inserting in lieu thereof “any creditor, equity security holder, or general partner in”. (b) Section 1141(c) of title 11 of the United States Code is amended to read as follows: “(c) Except as provided in subsections (d)(2) and (d)(3) of this section and except as otherwise provided in the plan or in the order confirming the plan, after confirmation of a plan, the property dealt with by the plan is free and clear of all claims and interests of creditors, equity security holders, and of general partners in the debtor.”. Sec. 514. (a) The heading for section 1142 of title 11 of the United States Code is amended to read as follows: “§ 1142. Implementation of plan”. (b) The item relating to section 1142 in the table of sections for chapter 11 of title 11 of the United States Code is amended by striking out “Execution” and inserting in lieu thereof “Implementation”. (c) Section 1142(a) of title 11 of the United States Code is amended by striking out the comma after “plan” the second place it appears. (d) Section 1142(b) of title 11 of the United States Code is amended by inserting “a” after “by”. Sec. 515. Section 1144 of title 11 of the United States Code is amended by inserting “if and only” after “revoke such order”. Sec. 516. (a) Section 1145(a) of title 11 of the United States Code is amended— (1) in paragraph (3)(B)(i), by inserting “or 15(d)” after “13” and by inserting “or 78o(d)” after “78m”; (2) by amending paragraph (3)(B)(ii) to read as follows: “(ii) in compliance with the disclosure and reporting provision of such applicable section; and”; and (3) in paragraph (4), by striking out “stockholder” each place it appears and inserting in lieu thereof “stockbroker”. (b) Section 1145(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “and except with respect to ordinary trading transactions of an entity that is not an issuer” after “subsection”; (2) in paragraph (1)(C), by striking out “for” and inserting in lieu thereof “from”; (3) in paragraph (2)(a)(1), by striking out “combination” and inserting in lieu thereof “or combining”; and (4) in paragraph (2)(A)(ii), by striking out “among” and inserting in lieu thereof “from or to”. (c) Section 1145(d) of title 11 of the United States Code is amended by striking out “commercial”. Sec. 517. (a) Section 1146(c) of title 11 of the United States Code is amended by striking out “State or local”. (b) Section 1146(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 518. Section 1166 of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 519. Section 1168(b) of title 11 of the United States Code is amended by inserting a comma after “approval”. Sec. 520. Section 1169(c) of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 521. (a) Section 1170(a) of title 11 of the United States Code is amended by inserting “of all or a portion” after “the abandonment”. (b) Section 1170(c) of title 11 of the United States Code is amended by inserting a comma after “abandonment”. (c) Section U70(d)(2) of title 11 of the United States Code is amended by— (1) striking out “the abandonment of a railroad line” and inserting in lieu thereof “such abandonment”; and (2) striking out “termination” each place it appears and inserting in lieu thereof “suspension”. Sec. 522. Section 1171(b) of title 11 of the United States Code is amended by striking out “such” and inserting in lieu thereof “the same”. Sec. 523. Section 1173(a)(4) of title 11 of the United States Code is amended by striking out “compatible” and inserting in lieu thereof “consistent”. Sec. 524. Section 1301(c)(3) of title 11 of the United States Code is amended by inserting “continuation of’ after “by”. Sec. 525. (a) Section 1302(b) of title 11 of the United States Code as Ante, p. 356. amended by section 314 is amended by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively and by inserting after paragraph (2) the following new paragraph: “(3) dispose of, under regulations issued by the Director of the Administrative Office of the United States Courts, moneys received or to be received in a case under chapter XIII of the Bankruptcy Act; and”. (b) Section 1302(e) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “fix” and inserting in lieu thereof “set for such individual”; (2) in paragraph (1)(A), by striking out “for such individual”; and (3) in paragraph (2)(A), by— (A) striking out “of” and inserting in lieu thereof “received by”; and (B) striking out “upon all payments” and inserting in lieu thereof “of all such payments made”. Sec. 526. Section 1304(b) of title 11 of the United States Code is amended by striking out the comma after “of the debtor”. Sec. 527. (a) Section 1307(b) of title 11 of the United States Code is amended by inserting a comma after “time”. (b) Section 1307(c) of title 11 of the United States Code as amended by section 315 is amended— Ante, p. 356. (1) in paragraph (5), as redesignated by inserting “a request made for” before “additional”; (2) in paragraph (7), as redesignated by striking out “and” after the semicolon and inserting in lieu thereof “or”; and (3) in paragraph (8), as redesignated by inserting “other than completion of payments under the plan” after ‘In the plan”. Sec. 528. (a) Section 1322(a)(2) of title 11 of the United States Code is amended by inserting a comma after “payments”. (b) Section 1322(b) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “, or leave unaffected the rights of holders of any class of claims” before the semicolon; (2) in paragraph (4), by inserting “other” after “claim or any”; (3) in paragraph (7), by— (A) inserting “subject to section 365 of this title,” before “provide”; (B) striking out “or rejection” and inserting in lieu thereof rejection, or assignment”; and (C) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”; and (4) in paragraph (8), by striking out “any”. Sec. 529. Section 1324 of title 11 of the United States Code is amended by striking out “the” the second place it appears. Sec. 530. Section 1325(a)(1) of title 11 of the United States Code is amended by inserting “the” before “other”. Sec. 531. Section 1326(b)(2) of title 11 of the United States Code as amended by section 318 is amended by inserting “of this title” after Ante, p. 357. “1302(d)”. Sec. 532. Section 1328(e) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “by the debtor” after “obtained”; and (2) in paragraph (2), by striking out “knowledge of such fraud came to the requesting party” and inserting in lieu thereof “the requesting party did not know of such fraud until”. Sec. 533. Section 1329(a) of title 11 of the United States Code is amended— (1) by inserting “of the plan” after “confirmation”; (2) by striking out “a plan” and inserting in lieu thereof “such plan”; and (3) in paragraph (3), by striking out the comma. Sec. 534. Section 151302(a) of title 11 of the United States Code is amended by inserting “, or shall appoint a disinterested person to serve,” after “The United States trustee shall serve”. Subtitle J— Collective Bargaining Agreements Sec. 541. (a) Title 11 of the United States Code is amended by adding after section 1112 the following new section: “§ 1113. Rejection of collective bargaining agreements “(a) The debtor in possession, or the trustee if one has been appointed under the provisions of this chapter, other than a trustee 11 USC 1161. 45 USC 151. in a case covered by subchapter IV of this chapter and by title I of the Railway Labor Act, may assume or reject a collective bargaining agreement only in accordance with the provisions of this section. “(b) (1) Subsequent to filing a petition and prior to filing an application seeking rejection of a collective bargaining agreement, the debtor in possession or trustee (hereinafter in this section ‘trustee’ shall include a debtor in possession), shall— “(A) make a proposal to the authorized representative of the employees covered by such agreement, based on the most complete and reliable information available at the time of such proposal, which provides for those necessary modifications in the employees benefits and protections that are necessary to permit the reorganization of the debtor and assures that all creditors, the debtor and all of the affected parties are treated fairly and equitably; and “(B) provide, subject to subsection (d)(3), the representative of the employees with such relevant information as is necessary to evaluate the proposal. “(2) During the period beginning on the date of the making of a proposal provided for in paragraph (1) and ending on the date of the hearing provided for in subsection (d)(1), the trustee shall meet, at reasonable times, with the authorized representative to confer in good faith in attempting to reach mutually satisfactory modifications of such agreement. “(c) The court shall approve an application for rejection of a collective bargaining agreement only if the court finds that— “(1) the trustee has, prior to the hearing, made a proposal that fulfills the requirements of subsection (b)(1); “(2) the authorized representative of the employees has refused to accept such proposal without good cause; and “(3) the balance of the equities clearly favors rejection of such agreement. “(d) (1) Upon the filing of an application for rejection the court shall schedule a hearing to be held not later than fourteen days after the date of the filing of such application. All interested parties may appear and be heard at such hearing. Adequate notice shall be provided to such parties at least ten days before the date of such nearing. The court may extend the time for the commencement of such hearing for a period not exceeding seven days where the circumstances of the case, and the interests of justice require such extension, or for additional periods of time to which the trustee and representative agree. “(2) The court shall rule on such application for rejection within thirty days after the date of the commencement of the hearing. In the interests of justice, the court may extend such time for ruling for such additional period as the trustee and the employees’ representative may agree to. If the court does not rule on such application within thirty days after the date of the commencement of the hearing, or within such additional time as the trustee and the employees’ representative may agree to, the trustee may terminate or alter any provisions of the collective bargaining agreement pending the ruling of the court on such application. “(3) The court may enter such protective orders, consistent with Confidentiality. the need of the authorized representative of the employee to evaluate the trustee’s proposal and the application for rejection, as may be necessary to prevent disclosure of information provided to such representative where such disclosure could compromise the position of the debtor with respect to its competitors in the industry in which it is engaged. “(e) If during a period when the collective bargaining agreement continues in effect, and if essential to the continuation of the debtor’s business, or in order to avoid irreparable damage to the estate, the court, after notice and a hearing, may authorize the trustee to implement interim changes in the terms, conditions, wages, benefits, or work rules provided by a collective bargaining agreement. Any hearing under this paragraph shall be scheduled in accordance with the needs of the trustee. The implementation of such interim changes shall not render the application for rejection moot. “(f) No provision of this title shall be construed to permit a trustee to unilaterally terminate or alter any provisions of a collective bargaining agreement prior to compliance with the provisions of this section.”. (b) The table of sections for chapter 11 of title 11, United States Code, is amended by inserting after the item relating to section 1112 the following new item: “1113. Rejection of collective bargaining agreements.”. (c) The amendments made by this section shall become effective Effective date. 11 USC 1113 note. upon the date of enactment of this Act; provided that this section shall not apply to cases filed under title 11 of the United States Code which were commenced prior to the date of enactment of this section. Subtitle K— Miscellaneous Sec. 551. If any provision of this title or any amendment made by Provisions held invalid. 11 USC 101 note. this title, or the application thereof to any person or circumstance is held invalid, the provisions of every other part, and their application shall not be affected thereby. Sec. 552. Notwithstanding the provisions of section 8331(22) of title 5, United States Code, or any other provision of law, for purposes of section 8339(n) of title 5, United States Code, any individual appointed under section 34 of the Bankruptcy Act who served as a United States bankruptcy judge for Ante, p. 343. the district of Oregon or for the Central district of California until March 31, 1984, shall receive an annuity computed with respect to his service as a referee in bankruptcy and as a bankruptcy judge, and his military service (not exceeding five years) creditable under section 8332 of title 5, United States Code, by multiplying 2¼ per centum of his average annual pay by the years of that service. Sec. 553. (a) Except as otherwise provided in this section the amendments made by this title shall become effective to cases filed 90 days after the date of enactment of this Act. (b) The amendments made by section 426(b) shall become effective upon the date of enactment of this Act. (c) The amendments made by subtitle J, shall become effective as provided in section 541(c).Pub. L. 98–353 title III · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(41)
Pub. L. 98–353, §§ 391(1), 401(1), 421(h), (j)(2), redesignated successively former par. (36) as (38) and again as (41), and, in subpar. (B)(vi)
Substituted · 11 U.S.C. § 101(41)
Pub. L. 98–353, §§ 391(1), 401(1), 421(h), (j)(2), substituted “certificate of a kind specified in subparagraph (A)(xii)” for “certificate specified in clause (xii) of subparagraph (A)”
Redesignated · 11 U.S.C. § 101(41)
Pub. L. 98–353, §§ 391(1), 401(1), 421(h), (j)(2), substituted “required to be the subject of a registration statement” for “the subject of such registration statement”. Former par. (41) redesignated successively as (43), again as (44), and again as (48)
Source evidence
Code amendment note
Par. (41). Pub. L. 98–353, §§ 391(1), 401(1), 421(h), (j)(2), redesignated successively former par. (36) as (38) and again as (41), and, in subpar. (B)(vi), substituted “certificate of a kind specified in subparagraph (A)(xii)” for “certificate specified in clause (xii) of subparagraph (A)” and substituted “required to be the subject of a registration statement” for “the subject of such registration statement”. Former par. (41) redesignated successively as (43), again as (44), and again as (48).Enacted provision · exact public law
TITLE III— AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE Subtitle A— Consumer Credit Amendments Sec. 301. Section 109 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Notwithstanding any other provision of this section, no individual may be a debtor under this title who has been a debtor in a case pending under this title at any time in the preceding 180 days if— “(1) the case was dismissed by the court for willful failure of the debtor to abide by orders of the court, or to appear before the court in proper prosecution of the case; or “(2) the debtor requested and obtained the voluntary dismissal of the case following the filing of a request for relief from the automatic stay provided by section 362 of this title.”. Sec. 302. Section 342 of title 11, United States Code, is amended— (1) by inserting “(a)” before “There shall be given”, and (2) by adding at the end thereof the following new subsection: “(b) Prior to the commencement of a case under this title by an individual whose debts are primarily consumer debts, the clerk shall give written notice to such individual that indicates each chapter of this title under which such individual may proceed.”. Sec. 303. Section 349(a) of title 11, United States Code, is amended by inserting before the period at the end thereof nor does the dismissal of a case under this title prejudice the debtor with regard to the filing of a subsequent petition under this title, except as Supra. provided in section 109(f) of this title”. Sec. 304. Section 362 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(h) An individual injured by any willful violation of a stay provided by this section shall recover actual damages, including costs and attorneys’ fees, and, in appropriate circumstances, may recover punitive damages.”. Sec. 305. Section 521 of title 11, United States Code, is amended— (1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, (2) in paragraph (1) by inserting “a schedule of current income and current expenditures,” after “liabilities,”, and (3) by inserting after paragraph (1) the following new paragraph: “(2) if an individual debtor’s schedule of assets and liabilities includes consumer debts which are secured by property of the estate— “(A) within thirty days after the date of the filing of a petition under chapter 7 of this title or on or before the date of the meeting of creditors, whichever is earlier, or within such additional time as the court, for cause, within such period fixes, the debtor shall file with the clerk a statement of his intention with respect to the retention or surrender of such property and, if applicable, specifying that such property is claimed as exempt, that the debtor intends to redeem such property, or that the debtor intends to reaffirm debts secured by such property; “(B) within forty-five days after the filing of a notice of intent under this section, or within such additional time as the court, for cause, within such forty-five day period fixes, the debtor shall perform his intention with respect to such property, as specified by subparagraph (A) of this paragraph; and “(C) nothing in subparagraphs (A) and (B) of this paragraph shall alter the debtor’s or the trustee’s rights with regard to such property under this title;”. Sec. 306. (a) Section 522(b) of title 11, United States Code, is amended by striking out “Notwithstanding” and all that follows through “either—” and inserting in lieu thereof the following: “Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (1) or, in the alternative, paragraph (2) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Bankruptcy Rules, one 11 USC app. debtor may not elect to exempt property listed in paragraph (1) and the other debtor elect to exempt property listed in paragraph (2) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (1), where such election is permitted under the law of the jurisdiction where the case is filed. Such property is—”. (b) Section 522(d)(3) of title 11, United States Code, is amended by inserting “or $4,000 in aggregate value” after “item”. (c) Section 522(d)(5) of title 11, United States Code, is amended to read as follows: “(5) The debtor’s aggregate interest in any property, not to exceed in value $400 plus up to $3,750 of any unused amount of the exemption provided under paragraph (1) of this subsection”. (d) Section 522(m) of title 11, United States Code, is amended to read as follows: “(m) Subject to the limitation in subsection (b), this section shall apply separately with respect to each debtor in a joint case.”. Sec. 307. (a) Section 523(a)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “or” at the end thereof, (2) in subparagraph (B) by inserting “or” at the end thereof, and (3) by adding at the end thereof the following new subparagraph: “(C) for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $500 for ‘luxury goods or services’ incurred by an individual debtor on or within forty days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within twenty days before the order for relief under this title, are presumed to be nondischargeable; ‘luxury goods or services’ do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.);”. (b) Section 523(d) of title 11, United States Code, is amended to read as follows: “(d) If a creditor requests a determination of dischargeability of a consumer debt under subsection (a)(2) of this section, and such debt is discharged, the court shall grant judgment in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding if the court finds that the position of the creditor was not substantially justified, except that the court shall not award such costs and fees if special circumstances would make the award unjust.”. Sec. 308. (a) Section 524(a)(2) of title 11, United States Code, is amended by striking out “or from property of the debtor,”. (b) Section 524(c) of title 11, United States Code, is amended— (1) by striking out paragraph (2), (2) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively, and (3) by inserting after paragraph (1) the following new paragraphs: “(2) such agreement contains a clear and conspicuous statement which advises the debtor that the agreement may be rescinded at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of rescission to the holder of such claim; “(3) such agreement has been filed with the court and, if applicable, accompanied by a declaration or an affidavit of the attorney that represented the debtor during the course of negotiating an agreement under this subsection, which states that such agreement— “(A) represents a fully informed and voluntary agreement by the debtor; and “(B) does not impose an undue hardship on the debtor or a dependent of the debtor; “(4) the debtor has not rescinded such agreement at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of recission to the holder of such claim;” and (4) by amending paragraph (6), as so redesignated, to read as follows: “(6) (A) in a case concerning an individual who was not represented by an attorney during the course of negotiating an agreement under this subsection, the court approves such agreement as— “(i) not imposing an undue hardship on the debtor or a dependent of the debtor; and “(ii) in the best interest of the debtor. “(B) Subparagraph (A) shall not apply to the extent that such debt is a consumer debt secured by real property.”. (c) Section 524(d)(2) of title 11, United States Code, is amended by striking out “subsection (c)(4)” and inserting in lieu thereof “subsection (c)(6)”. (e) Section 524 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Nothing contained in subsection (c) or (d) of this section prevents a debtor from voluntarily repaying any debt.”. Sec. 309. Section 525 of title 11, United States Code, is amended— (1) by inserting “(a)” before “Except”, (2) by inserting “the” before “Perishable”, and (3) by adding at the end thereof the following new subsection: Employment and unemployment. Discrimination, prohibition. 11 USC note prec. 101. “(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt— “(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act; “(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or “(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.”. Sec. 310. Section 547(c) of title 11, United States Code, is amended— (1) in paragraph (5) by striking out “or” at the end thereof, (2) in paragraph (6) by striking out the period at the end thereof and inserting in lieu thereof “; or”, and (3) by adding at the end thereof the following new paragraph: “(7) if, in a case filed by an individual debtor whose debts are primarily consumer debts, the aggregate value of all property that constitutes or is affected by such transfer is less than $600.”. Sec. 311. (a) Section 704 of title 11, United States Code, is amended— (1) by redesignating paragraphs (3), (4), (5), (6), (7), and (8) as paragraphs (4), (5), (6), (7), (8), and (9), respectively, and (2) by inserting after paragraph (2) the following new paragraph: “(3) ensure that the debtor shall perform his intention as specified in section 521(2)(B) of this title;”. Ante, p. 352. (b) (1) Section 1106(a)(1) of title 11, United States Code, is amended by striking out “704(4), 704(6), 704(7), and 704(8)” and inserting in lieu thereof “704(5), 704(7), 704(8), and 704(9)”. (2) Section 1304(c) of title 11, United States Code, is amended by striking out “section 704(7)” and inserting in lieu thereof “section 704(8)”. (3) Section 15103(f) of title 11, United States Code, is amended by striking out “704(8),” and inserting in lieu thereof “704(9),”. (4) Section 151301(b)(1) of title 11, United States Code, is amended 11 USC 151302. by striking out “and 704(8)” and inserting in lieu thereof “, 704(7), and 704(9)”. Sec. 312. Section 707 of title 11, United States Code, is amended— (1) by inserting “(a)” before “The court may” and (2) by adding at the end thereof the following new subsection: “(b) After notice and a hearing, the court, on its own motion and not at the request or suggestion of any party in interest, may dismiss a case filed by an individual debtor under this chapter whose debts are primarily consumer debts if it finds that the granting of relief would be a substantial abuse of the provisions of this chapter. There shall be a presumption in favor of granting the relief requested by the debtor.”. Sec. 313. Section 1301 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(d) Twenty days after the filing of a request under subsection (c)(2) of this section for relief from the stay provided by subsection (a) of this section, such stay is terminated with respect to the party in interest making such request, unless the debtor or any individual that is liable on such debt with the debtor files and serves upon such party in interest a written objection to the taking of the proposed action.”. Sec. 314. Section 1302(b) of title 11, United States Code, is amended— (1) by amending paragraph (1) to read as follows: “(1) perform the duties specified in sections 704(2), 704(3), 704(4), 704(5), 704(6), 704(7), and 704(9) of this title;”; (2) in paragraph (2) by striking out “and” at the end thereof, (3) in paragraph (3) by striking out the period and inserting in lieu thereof “; and”, and (4) by adding at the end thereof the following new paragraph: “(4) ensure that the debtor commences making timely payments under section 1326 of this title.”. Sec. 315. Section 1307(c) of title 11, United States Code, is amended— (1) by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), respectively, and (2) by inserting after paragraph (3) the following new paragraph: “(4) failure to commence making timely payments under section 1326 of this title;”. Sec. 316. Section 1322(b)(1) of title 11, United States Code, is amended to read as follows: “(1) designate a class or classes of unsecured claims, as provided in section 1122 of this title, but may not discriminate unfairly against any class so designated; however, such plan may treat claims for a consumer debt of the debtor if an individual is liable on such consumer debt with the debtor differently than other unsecured claims;”. Sec. 317. Section 1325 of title 11, United States Code, is amended— (1) in subsection (a) by striking out “The” and inserting in lieu thereof “Except as provided in subsection (b), the”, (2) by redesignating subsection (b) as subsection (c), and (3) by inserting after subsection (a) the following new subsection: “(b) (1) If the trustee or the holder of an allowed unsecured claim objects to the confirmation of the plan, then the court may not approve the plan unless, as of the effective date of the plan— “(A) the value of the property to be distributed under the plan on account of such claim is not less than the amount of such claim; or “(B) the plan provides that all of the debtor’s projected disposable income to be received in the three-year period beginning on the date that the first payment is due under the plan will be applied to make payments under the plan. “(2) For purposes of this subsection, disposable income’ means income which is received by the debtor and which is not reasonably necessary to be expended— “(A) for the maintenance or support of the debtor or a dependent of the debtor; or “(B) if the debtor is engaged in business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business.”. Sec. 318. (a) Section 1326 of title 11, United States Code, is amended— (1) by redesignating subsections (a) and (b) as subsections (h) and (c), respectively, and (2) by inserting before such subsections the following new subsection: “(a) (1) Unless the court orders otherwise, the debtor shall commence making the payments proposed by a plan within 30 days after the plan is filed. “(2) A payment made under this subsection shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan. If a plan is not confirmed, the trustee shall return any such payments to the debtor, after deducting any unpaid claim allowed under section 503(b) of this title.”. (b) Section 15103(f) of title 11, United States Code, is amended by striking out “1326(a),” and inserting in lieu thereof “1326(b),”. Sec. 319. Section 1329(a) of title 11, United States Code, is amended by striking out “At” and all that follows through “modified to—”, and inserting in lieu thereof the following: “At any time after confirmation but before the completion of payments under a plan, the plan may be modified, upon request of the debtor, the trustee, or the holder of an allowed unsecured claim, to—”. Sec. 320. The Supreme Court shall prescribe general rules implementing Supreme Court of U.S. 28 USC 2075 note. Ante, p. 355. the practice and procedure to be followed under section 707(b) of title 11, United States Code. Section 2075 of title 28, United States Code, shall apply with respect to the general rules prescribed under this section. Sec. 321. Rule 2002 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision: “(n) In a voluntary case commenced under the Code by an individual debtor whose debts are primarily consumer debts, the clerk, or some other person as the court may direct, shall give the trustee and all creditors notice by mail of the order for relief not more than 20 days after the entry of such order.”. Sec. 322. Official Bankruptcy Form No. 1, referred to in Rule 1002 of the Bankruptcy Rules, is amended— 11 USC app. (1) by inserting after paragraph (5) the following: “(6) [If petitioner is an individual whose debts are primarily consumer debts.] Petitioner is aware that [he or she] may proceed under chapter 7 or 13 of title 11, United States Code, 11 USC 701 et seq.. 1301 et seq. understands the relief available under each such chapter, and chooses to proceed under chapter 7 of such title. “(7) [If petitioner is an individual whose debts are primarily consumer debts and such petitioner is represented by an attorney.] A declaration or an affidavit in the form of Exhibit ‘B’ is attached to and made a part of this petition.”, and (2) by inserting after Exhibit “A” at the end thereof the following new exhibit: “Exhibit ‘B’ “[If petitioner is an individual whose debts are primarily consumer debts, this Exhibit ‘B’ shall be completed and attached to the petition pursuant to paragraph (7) thereof.] Sec. 323. Section 408(c) of the Act of November 6, 1978 (Public Law 95–598; 92 Stat. 2687(c)), as amended by the Act of November 28, 1983 (Public Law 98–166; 97 Stat. 1071), is amended by striking out “September 30, 1984” and inserting in lieu thereof “September 30, 1986”. Sec. 324. Section 1103(b) of title 11, United States Code, is amended by striking out “A person” and inserting in lieu thereof “An attorney or accountant” Subtitle B— Amendments Relating to Grain Storage Facility Bankruptcy Sec. 350. Section 507(a) of title 11, United States Code, is amended— (1) by striking out “(5) Fifth” and inserting in lieu thereof “(6) Sixth” (2) by striking out “(6) Sixth” and inserting in lieu thereof “(7) Seventh”; and (3) by adding after paragraph (4) the following: “(5) Fifth, allowed unsecured claims of persons— “(A) engaged in the production or raising of grain, as Post, p. 359. defined in section 557(b)(1) of this title, against a debtor who owns or operates a grain storage facility, as defined in section 557(b)(2) of this title, for grain or the proceeds of grain, or “(B) engaged as a United States fisherman against a debtor who has acquired fish or fish produce from a fisherman through a safe or conversion, and who is engaged in operating a fish produce storage or processing facility— but only to the extent of $2,000 for each such individual.”. Sec. 351. Section 546 of title 11, United States Code, is amended— (1) in the first sentence of subsection (c) thereof, by striking out “The” and inserting in lieu thereof “Except as provided in subsection (d) of this section, the”; and (2) by redesignating subsection (d) as subsection (e); and (3) by inserting after subsection (c) the following: In the case of a seller who is a producer of grain sold to a grain storage facility, owned or operated by the debtor, in the ordinary course of such seller’s business (as such terms are defined Post, p. 359. in section 557 of this title) or in the case of a United States fisherman who has caught fish sold to a fish processing facility owned or operated by the debtor in the ordinary course of such fisherman’s business, the rights and powers of the trustee under sections 544(a), 545, 547, and 549 of this title are subject to any statutory or common law right of such producer or fisherman to reclaim such grain or fish if the debtor has received such grain or fish while insolvent, but— “(1) such producer or fisherman may not reclaim any grain or Claims. fish unless such producer or fisherman demands, in writing, reclamation of such grain or fish before ten days after receipt thereof by the debtor; and “(2) the court may deny reclamation to such a producer or fisherman with a right of reclamation that has made such a demand only if the court secures such claim by a lien.”. Sec. 352. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 557. Expedited determination of interests in, and abandonment or other disposition of grain assets “(a) This section applies only in a case concerning a debtor that owns or operates a grain storage facility and only with respect to grain and the proceeds of grain. This section does not affect the application of any other section of this title to property other than grain and proceeds of grain. “(b) In this section— “(1) ‘grain’ means wheat, corn, flaxseed, grain sorghum, barley, oats, rye, soybeans, other dry edible beans, or rice; “(2) ‘grain storage facility’ means a site or physical structure regularly used to store grain for producers, or to store grain acquired from prodùcers for resale; and “(3) ‘producer’ means an entity which engages in the growing of grain. “(c) (1) Notwithstanding sections 362, 363, 365, and 554 of this title, on the court’s own motion the court may, and on the request of the trustee or an entity that claims an interest in grain or the proceeds of grain the court shall, expedite the procedures for the determination of interests in and the disposition of grain and the proceeds of grain, by shortening to the greatest extent feasible such time periods as are otherwise applicable for such procedures and by establishing, by order, a timetable having a duration of not to exceed 120 days for the completion of the applicable procedure specified in subsection (d) of this section. Such time periods and such timetable may be modified by the court, for cause, in accordance with subsection (f) of this section. “(2) The court shall determine the extent to which such time periods shall be shortened, based upon— “(A) any need of an entity claiming an interest in such grain or the proceeds of grain for a prompt determination of such interest; “(B) any need of such entity for a prompt disposition of such grain; “(C) the market for such grain; “(D) the conditions under which such grain is stored; “(E) the costs of continued storage or disposition of such grain; “(F) the orderly administration of the estate; “(G) the appropriate opportunity for an entity to assert an interest in such grain; and “(H) such other considerations as are relevant to the need to expedite such procedures in the case. “(d) The procedures that may be expedited under subsection (c) of this section include— “(1) the filing of and response to— “(A) a claim of ownership; “(B) a proof of claim; “(C) a request for abandonment; “(D) a request for relief from the stay of action against property under section 362(a) of this title; “(E) a request for determination of secured status; “(F) a request for determination of whether such grain or the proceeds of grain— “(i) is property of the estate; “(ii) must be turned over to the estate; or “(iii) may be used, sold, or leased; and “(G) any other request for determination of an interest in such grain or the proceeds of grain; “(2) the disposition of such grain or the proceeds of grain, before or after determination of interests in such grain or the proceeds of grain, by way of— “(A) sale of such grain; “(B) abandonment; “(C) distribution; or “(D) such other method as is equitable in the case; “(3) subject to sections 701, 702, 703, 1104, and 1302 of this title, the appointment of a trustee or examiner and the retention and compensation of any professional person required to assist with respect to matters relevant to the determination of interests in or disposition of such grain or the proceeds of grain; and “(4) the determination of any dispute concerning a matter specified in paragraph (1), (2), or (3) of this subsection. “(e) (1) Any governmental unit that has regulatory jurisdiction over the operation or liquidation of the debtor or the debtor’s business shall be given notice of any request made or order entered under subsection (c) of this section. “(2) Any such governmental unit may raise, and may appear and be heard on, any issue relating to grain or the proceeds of grain in a case in which a request is made, or an order is entered, under subsection (c) of this section. “(3) The trustee shall consult with such governmental unit before taking any action relating to the disposition of grain in the possession, custody, or control of the debtor or the estate. “(f) The court may extend the period for final disposition of grain or the proceeds of grain under this section beyond 120 days if the court finds that— “(1) the interests of justice so require in light of the complexity of the case; and “(2) the interests of those claimants entitled to distribution of grain or the proceeds of grain will not be materially injured by such additional delay. “(g) Unless an order establishing an expedited procedure under subsection (c) of this section, or determining any interest in or approving any disposition of grain or the proceeds of grain, is stayed pending appeal— “(1) the reversal or modification of such order on appeal does not affect the validity of any procedure, determination, or disposition that occurs before such reversal or modification, whether or not any entity knew of the pendency of the appeal; and “(2) neither the court nor the trustee may delay, due to the appeal of such order, any proceeding in the case in which such order is issued. “(h) (1) The trustee may recover from grain and the proceeds of grain the reasonable and necessary costs and expenses allowable under section 503(b) of this title attributable to preserving or disposing of grain or the proceeds of grain, but may not recover from such grain or the proceeds of grain any other costs or expenses. “(2) Notwithstanding section 326(a) of this title, the dollar amounts of money specified in such section include the value, as of the date of disposition, of any grain that the trustee distributes in kind. “(i) In all cases where the quantity of a specific type of grain held by a debtor operating a grain storage facility exceeds ten thousand bushels, such grain shall be sold by the trustee and the assets thereof distributed in accordance with the provisions of this section.”. (b) The table of sections of chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: ‘557 Expedited determination of interests in and disposition of grain.”. Sec. 353. Section 901(a) of title 11, United States Code, is amended by inserting “557,” after “553,”. Sec. 354. Rule 3001 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision “(g) To the extent not inconsistent with the United States Warehouse Act or applicable State law, a warehouse receipt, scale ticket, or similar document of the type routinely issued as evidence of title by a grain storage facility, as defined in section 557 of title 11, shall constitute prima facie evidence of the validity and amount of a claim of ownership of a quantity of grain ”. Subtitle C— Leasehold Management Amendments Sec. 361. This subtitle may be cited as the “Leasehold Management Bankruptcy Amendments Act of 1983”. Sec. 362. (a) Section 365 of title 11, United States Code, is amended by amending subsections (a), (b), (c), and (d) to read as follows: “(a) Except as provided in sections 765 and 766 of this title and in subsections (b), (c), and (d) of this section, the trustee, subject to the court’s approval, may assume or reject any executory contract or unexpired lease of the debtor. “(b) (1) If there has been a default in an executory contract or unexpired lease of the debtor, the trustee may not assume such contract or lease unless, at the time of assumption of such contract or lease, the trustee— “(A) cures, or provides adequate assurance that the trustee will promptly cure, such default; “(B) compensates, or provides adequate assurance that the trustee will promptly compensate, a party other than the debtor to such contract or lease, for any actual pecuniary loss to such party resulting from such default; and “(C) provides adequate assurance of future performance under such contract or lease. “(2) Paragraph (1) of this subsection does not apply to a default that is a breach of a provision relating to— “(A) the insolvency or financial condition of the debtor at any time before the closing of the case; “(B) the commencement of a case under this title; or “(C) the appointment of or taking possession by a trustee in a case under this title or a custodian before such commencement. “(3) For the purposes of paragraph (1) of this subsection and paragraph (2)(B) of subsection (t), adequate assurance of future performance of a lease of real property in a shopping center includes adequate assurance— “(A) of the source of rent and other consideration due under such lease, and in the case of an assignment, that the financial condition and operating performance of the proposed assignee and its guarantors, if any, shall be similar to the financial condition and operating performance of the debtor and its guarantors, if any, as of the time the debtor became the lessee under the lease; “(B) that any percentage rent due under such lease will not decline substantially; “(C) that assumption or assignment of such lease is subject to all the provisions thereof, including (but not limited to) provisions such as a radius, location, use, or exclusivity provision, and will not breach any such provision contained in any other lease, financing agreement, or master agreement relating to such shopping center; and “(D) that assumption or assignment of such lease will not disrupt any tenant mix or balance in such shopping center. “(4) Notwithstanding any other provision of this section, if there has been a default in an unexpired lease of the debtor, other than a default of a kind specified in paragraph (2) of this subsection, the trustee may not require a lessor to provide services or supplies incidental to such lease before assumption of such lease unless the lessor is compensated under the terms of such lease for any services and supplies provided under such lease before assumption of such lease. “(c) The trustee may not assume or assign any executory contract or unexpired lease of the debtor, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties, if— “(1) (A) applicable law excuses a party, other than the debtor, to such contract or lease from accepting performance from or rendering performance to an entity other than the debtor or the debtor in possession or an assignee of such contract or lease, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties; and “(B) such party does not consent to such assumption or assignment; or “(2) such contract is a contract to make a loan, or extend other debt financing or financial accommodations, to or for the benefit of the debtor, or to issue a security of the debtor; or “(3) such lease of nonresidential real property has been terminated under applicable nonbankruptcy law prior to the order for relief. “(d) (1) In a case under chapter 7 of this title, if the trustee does not assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor within 60 days after the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such contract or lease is deemed rejected. “(2) In a case under chapter 9, 11, or 13 of this title, the trustee 11 USC 901 et seq., 1101 et seq., 1301 et seq. may assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor at any time before the confirmation of a plan but the court, on the request of any party to such contract or lease, may order the trustee to determine within a specified period of time whether to assume or reject such contract or lease. “(3) The trustee shall timely perform all the obligations of the debtor, except those specified in section 365(b)(2), arising from and Ante, p. 361. after the order for relief under any unexpired lease of nonresidential real property, until such lease is assumed or rejected, notwithstanding section 503(b)(1) of this title. The court may extend, for cause, the time for performance of any such obligation that arises within 60 days after the date of the order for relief, but the time for performance shall not be extended beyond such 60-day period. This subsection shall not be deemed to affect the trustee’s obligations under the provisions of subsection (b) or (f) of this section. Acceptance of any such performance does not constitute waiver or relinquishment of the lessor’s rights under such lease or under this title. “(4) Notwithstanding paragraphs (1) and (2), in a case under any chapter of this title, if the trustee does not assume or reject an unexpired lease of nonresidential real property under which the debtor is the lessee within 60 days after the date of the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such lease is deemed rejected, and the trustee shall immediately surrender such nonresidential real property to the lessor.”. (b) Section 365 is further amended by adding at the end thereof the following new subsection: “(l) If an unexpired lease under which the debtor is the lessee is assigned pursuant to this section, the lessor of the property may require a deposit or other security for the performance of the debtor’s obligations under the lease substantially the same as would have been required by the landlord upon the initial leasing to a similar tenant. “(m) For purposes of this section 365 and sections 541(b)(2) and Real property. Infra. 362(b)(9), leases of real property shall include any rental agreement to use real property.”. Sec. 363. (a) Section 541(b) of title 11, United States Code, is amended to read as follows: “(b) Property of the estate does not include— “(1) any power that the debtor may exercise solely for the benefit of an entity other than the debtor; or “(2) any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease before the commencement of the case under this title, and ceases to include any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease during the case.”. (b) Section 362(b) of title 11 of the United States Code is amended by— (1) striking out “or” at the end of paragraph (7), (2) replacing the period after paragraph (8) with “; or”, and (3) adding the following after paragraph (8): “(9) under subsection (a) of this section, of any act by a lessor to the debtor under a lease of nonresidential real property that has terminated by the expiration of the stated term of the lease before the commencement of or during a case under this title to obtain possession of such property.”. Subtitle D— Amendments to Title 11, Section 523 Relating to the Discharge of Debts Incurred by Persons Driving While Intoxicated Sec. 371. Section 523(a) of title 11, United States Code, is amended by— (1) striking out “or” at the end of paragraph (8); and (2) by adding the following new paragraph after such paragraph: “(9) to any entity, to the extent that such debt arises from a judgment or consent decree entered in a court of record against the debtor wherein liability was incurred by such debtor as a result of the debtor’s operation of a motor vehicle while legally intoxicated under the laws or regulations of any jurisdiction within the United States or its territories wherein such motor vehicle was operated and within which such liability was incurred; or”. Subtitle E— Referees Salary and Expense Fund Sec. 381. This subtitle may be cited as the “Referees Salary and Expense Fund Act of 1984”. Sec. 382. Section 403(e) of the Act of November 6, 1978 (92 Stat. 2683; Public Law 95–598), is amended to read as follows: “(e) Notwithstanding subsection (a) of this section— “(1) a fee may not be charged under section 40c(2)(a) of the Bankruptcy Act in a case pending under such Act after September 30, 1979, to the extent that such fee exceeds $200,000; “(2) a fee may not be charged under section 40c(2)(b) of the Bankruptcy Act in a case in which the plan is confirmed after September 30, 1978, or in which the final determination as to the amount of such fee is made after September 30, 1979, notwithstanding an earlier confirmation date, to the extent that such fee exceeds $100,000; “(3) after September 30, 1979, all moneys collected for payment into the referees’ salary and expense fund in cases filed 11 USC note prec. 101. under the Bankruptcy Act shall be collected and paid into the general fund of the Treasury; and “(4) any balance in the referees’ salary and expense fund in the Treasury on October 1, 1979, shall be transferred to the general fund of the Treasury and the referees’ salary and expense fund account shall be closed.”. Subtitle F— Amendments Regarding Repurchase Agreements Sec. 391. Section 101 of title 11, United States Code, is amended— (1) by redesignating paragraphs (35), (36), (37), (38), (39), (40), and (41), as paragraphs (37), (38), (39), (40), (41), (42), and (43), respectively, and (2) by inserting after paragraph (34) the following new paragraphs: “(35) ‘repo participant’ means an entity that, on any day during the period beginning 90 days before the date of the filing of the petition, has an outstanding repurchase agreement with the debtor; “(36) ‘repurchase agreement’ (which definition also applies to Securities. a reverse repurchase agreement) means an agreement, including related terms, which provides for the transfer of certificates of deposit, eligible bankers’ acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, or securities with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, or securities as described above, at a date certain not later than one year after such transfers or on demand, against the transfer of funds;”. Sec. 392. Section 362(b) of title 11, United States Code, is Ante, p. 363. amended— (a) by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively, and (b) by inserting after paragraph (6) the following new paragraph: “(7) under subsection (a) of this section, of the setoff by a repo participant, of any mutual debt and claim under or in connection with repurchase agreements that constitutes the setoff of a claim against the debtor for a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, arising out of repurchase agreements against cash, securities, or other property held by or due from such repo participant to margin, guarantee, secure or settle repurchase agreements;”. Sec. 393. Section 546 of title 11, United States Code, is amended by Ante, p. 358. inserting after subsection (e), as redesignated by section 251, the following: Notwithstanding sections 544, 545, 547, 548(a)(2), and 548(b) of this title, the trustee may not avoid a transfer that is a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, made by or to a repo participant, in connection with a repurchase agreement and that is made before the commencement of the case, except under section 548(a)(1) of this title.”. Sec. 394. Section 548(d)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “and” at the end thereof; (2) in subparagraph (B) by striking out the period at the end thereof and inserting in lieu thereof “; and”; and by inserting after paragraph (B) the following new subparagraph: “(C) a repo participant that receives a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, in connection with a repurchase agreement, takes for value to the extent of such payment.”. Sec. 395. Section 553(b)(1) of title 11, United States Code, is amended by inserting “, 362(b)(7),” after “362(b)(6)”. Sec. 396. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 559. Contractual right to liquidate a repurchase agreement “The exercise of a contractual right of a repo participant to cause the liquidation of a repurchase agreement because of a condition of the kind specified in section 365(e)(1) of this title shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title, unless, where the debtor is a stockbroker or securities clearing agency, such order is authorized under the provisions of the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) or any statute administered by the Securities and Exchange Commission. In the event that a repo participant liquidates one or more repurchase agreements with a debtor and under the terms of one or more such agreements has agreed to deliver assets subject to repurchase agreements to the debtor, any excess of the market prices received on liquidation of such assets (or if any such assets are not disposed of on the date of liquidation of such repurchase agreements, at the prices available at the time of liquidation of such repurchase agreements from a generally recognized source or the most recent closing bid quotation from such a source) over the sum of the stated repurchase prices and all expenses in connection with the liquidation of such repurchase agreements shall be deemed property of the estate, subject to the available rights of setoff. As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw, applicable to each party to the repurchase agreement, of a national securities exchange, a national securities association, or a securities clearing agency, and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal business practice.”. (b) The analysis of sections for chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: “559. Contractual right to liquidate a repurchase agreement.”. Subtitle G— Amendments to Title 11, Section 365 of the United States Code to Provide Adequate Protection for Timeshare Consumers Sec. 401. Title 11, United States Code, section 101 is hereby amended by— (1) redesignating paragraph (43), as redesignated by section Ante, p. 364. Real property. 391, as paragraph (44); and (2) adding the following paragraph after paragraph (42), as redesignated in section 391: “(43) ‘timeshare plan’ means and shall include that interest purchased in any arrangement, plan, scheme, or similar device, but not including exchange programs, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, right to use agreement, or by any other means, whereby a purchaser, in exchange for consideration, receives a right to use accommodations, facilities, or recreational sites, whether improved or unimproved, for a specific period of time less than a full year during any given year, but not necessarily for consecutive years, and which extends for a period of more than three years. A ‘timeshare interest’ is that interest purchased in a timeshare plan which grants the purchaser the right to use and occupy accommodations, facilities, or recreational sites, whether improved or unimproved, pursuant to a timeshare plan.”. Sec. 402. Section 365(h)(1) of title 11, United States Code, is Real property. amended to read as follows: “(h) (1) If the trustee rejects an unexpired lease of real property of the debtor under which the debtor is the lessor, or a timeshare interest under a timeshare plan under which the debtor is the timeshare interest seller, the lessee or timeshare interest purchaser under such lease or timeshare plan may treat such lease or time-share plan as terminated by such rejection, where the disaffirmance by the trustee amounts to such a breach as would entitle the lessee or timeshare interest purchaser to treat such lease as terminated by virtue of its own terms, applicable nonbankruptcy law, or other agreements the lessee or timeshare interest purchaser has made with other parties; or, in the alternative, the lessee or timeshare interest purchaser may remain in possession of the leasehold or timeshare interest under any lease or timeshare plan the term of which has commenced for the balance of such term and for any renewal or extension of such term that is enforceable by such lessee or timeshare interest purchaser under applicable nonbankruptcy law.”. Sec. 403. Section 365(h)(2) of title 11, United States Code, is Real property. amended to read as follows: “(2) If such lessee or timeshare interest purchaser remains in possession as provided in paragraph (1) of this subsection, such lessee or timeshare interest purchaser may offset against the rent reserved under such lease or moneys due for such timeshare interest for the balance of the term after the date of the rejection of such lease or timeshare interest, and any such renewal or extension thereof, any damages occurring after such date caused by the non-performance of any obligation of the debtor under such lease or timeshare plan after such date, but such lessee or timeshare interest purchaser does not have any rights against the estate on account of any damages arising after such date from such rejection, other than such offset.”. Sec. 404. Section 365(i)(1) of title 11, United States Code, is Real property. amended to read as follows: “(i) (1) If the trustee rejects an executory contract of the debtor for the sale of real property or for the sale of a timeshare interest under a timeshare plan, under which the purchaser is in possession, such purchaser may treat such contract as terminated, or, in the alternative, may remain in possession of such real property or timeshare interest.”. Subtitle H— Miscellaneous Amendments to Title 11 Sec. 421. (a) Section 101(2)(D) of title 11 of the United States Code is amended by striking out “or all” after “business”. (b) Section 101(8)(B) of title 11 of the United States Code is amended by striking out the colon at the end thereof and inserting in lieu thereof a semicolon. (c) Section 101(9)(B) of title 11 of the United States Code is amended by inserting “348(d),” after “section”. (d) Section 101(14) of title 11 of the United States Code is amended by inserting “and” after “trust,”. (e) Section 101(24) of title 11 of the United States Code is amended by striking out “stock broker” and inserting in lieu thereof “stockbroker” (f) Section 101(26)(B)(ii) of title 11 of the United States Code is amended by— (1) striking out “separate” each place it appears and inserting in lieu thereof “nonpartnership”; and (2) striking out “(A)(ii) and inserting in lieu thereof “(A)”, (g) Section 101(30) of title 11 of the United States Code is amended to read as follows: (30) “person” includes individual, partnership, and corporation, but does not include governmental unit, Provided, however, That any governmental unit that acquires an asset from a person as a result of operation of a loan guarantee agreement, or as receiver or liquidating agent of a person, will be considered a person for purposes of section 1102 of this title. (h) Section 101(38)(B)(vi) of title 11 of the United States Code, as Ante, p. 364. redesignated by section 391 of this Act, is amended by— (1) striking out “certificate specified in clause (xii) of subparagraph (A)” and inserting in lieu thereof “certificate of a kind specified in subparagraph (A)(xii)”; and (2) striking out “the subject of such a registration statement” and inserting in lieu thereof “required to be the subject of a registration statement”. (i) Section 101(44) of title 11 of the United States Code, as so redesignated, is amended by striking out the period and inserting in lieu thereof “and foreclosure of the debtor’s equity of redemption; and”. (j) Section 101 of title 11 of the United States Code is amended— (1) by redesignating paragraphs (41) through (44), as previously redesignated, as paragraphs (45) through (48); (2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively; (3) by redesignating paragraphs (19) and (20) as paragraphs (20) and (21), respectively; (4) by inserting after paragraph (18) the following: “(19) ‘financial institution’ means a person that is a commercial or savings bank, industrial savings bank, savings and loan association, or trust company and, when any such person is acting as agent or custodian for a customer in connection with a securities contract, as defined in section Post, p. 382. 741(7) of this title, such customer;”; (5) by inserting after paragraph (21) as redesignated herein the following: “(22) ‘forward contract’ means a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity, or product or byproduct thereof, with a maturity date more than two days after the date the contract is entered into; “(23) ‘forward contract merchant’ means a person whose business consists in whole or in part of entering into forward contracts as or with merchants in commodities;”; (6) by inserting after paragraph (43) the following: “(44) ‘State’ includes the District of Columbia and Puerto Rico, except for the purpose of defining who may be a debtor under chapter 9 of this title;”; and 11 USC 901 el seq. (7) by inserting after paragraph (48) the following: “(49) ‘United States’, when used in a geographical sense, includes all locations where the judicial jurisdiction of the United States extends, including territories and possessions of the United States;”. Sec. 422. Section 102 of title 11 of the United States Code is amended by striking out “continued” and inserting in lieu thereof “contained” in paragraph (8). Sec. 423. Section 103(c) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stockbroker”. Sec. 424. (a) Subsections (a)(1), (b)(1), and (c)(1) of section 108 of title 11 of the United States Code are each amended by striking out “and” each place it appears and inserting in lieu thereof “or”. (b) Subsections (a), (b), and (c) of section 108 of title 11 of the United States Code are each amended by inserting “nonbankruptcy” after “applicable” and after “entered in a” each place such terms appear. Sec. 425. (a) Section 109 of title 11 of the United States Code, is amended by striking out “in the United States,” the first place it appears. (b) Section 109(c)(5)(D) of title 11 of the United States Code of this Act is amended by striking out “preference” and inserting in lieu thereof “transfer that is avoidable under section 547 of this title”. (c) Section 109(d) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stock-broker”. Sec. 426. (a) Section 303(b) of title 11 of the United States Code is amended by inserting “against a person” after “involuntary case”. (b) Section 303 of title 11 of the United States Code, is amended— (1) in subsection (b)(1) by inserting “or the subject on a bona fide dispute,” after “liability”; and (2) in subsection (h)(1) by inserting “unless such debts that are the subject of a bona fide dispute” after “due”. Sec. 427. Section 303(j)(2) of title 11 of the United States Code is amended by striking out “debtors” and inserting in lieu thereof “debtor”. Sec. 428. Section 321(b) of title 11 of the United States Code is amended by striking out “a case” and inserting in lieu thereof “the case”. Sec. 429. Section 322(b)(1) of title 11 of the United States Code is amended by inserting “required to be” after “bond”. Sec. 430. (a) Section 326(a) of title 11 of the United States Code is amended by striking out all the language beginning with “three percent” through “$50,000” the second place the latter appears and inserting in lieu thereof “and three percent on any amount in excess of $3,000”. (b) Section 326(d) of title 11 of the United States Code is amended to read as follows: “(d) The court may deny allowance of compensation for services or reimbursement of expenses of the trustee if the trustee failed to make diligent inquiry into facts that would permit denial of allowance under section 328(c) of this title or, with knowledge of such facts, employed a professional person under section 327 of this title.”. (c) Section 327(c) of title 11 of the United States Code is amended to read as follows: “(c) In a case under chapter 7 or 11 of this title, a person is not disqualified for employment under this section solely because of such person’s employment by or representation of a creditor, unless there is objection by another creditor, in which case the court shall disapprove such employment if there is an actual conflict of interest.”. Sec. 431. Section 328(a) of title 11 of the United States Code is amended by striking out “unanticipatable” and inserting in lieu thereof “not capable of being anticipated”. Sec. 432. (a) Section 329(a) of title 11 of the United States Code is amended by striking out “and” the first place it appears and inserting in lieu thereof “or”. (b) Section 329(b)(1) of title 11 of the United States Code is amended by striking out “trustee” and inserting in lieu thereof “estate” Sec. 433. Section 330(a) of title 11 of the United States Code is amended— (1) by striking out “to any parties in interest and to the United States trustee”; and (2) in paragraph (1), by striking out “time, the nature, the extent, and the value of such services” and inserting in lieu thereof “nature, the extent, and the value of such services, the time spent on such services”. Sec. 434. (a) Section 330(b) of title 11 of the United States Code is amended by striking out “$20” and inserting in lieu thereof “$45”. (b) Section 330 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(c) Unless the court orders otherwise, in a case under chapter 13 11 USC 1301 et seq. of this title the compensation paid to the trustee serving in the case shall not be less than $5 per month from any distribution under the plan during the administration of the plan.”. Sec. 435. Section 342 of title 11 of the United States Code as Ante, p. 352. amended by section 302 is further amended by amending subsection (a) to read as follows: “(a) There shall be given such notice as is appropriate, including notice to any holder of a community claim, of an order for relief in a case under this title.”. Sec. 436. Section 343 of title 11 of the United States Code is amended by striking out “examiner” the last place it appears and inserting in lieu thereof “examine”. Sec. 437. Section 345 of title 11 of the United States Code is amended by adding at the end thereof a new subsection (c) as follows: “(c) An entity with which such moneys are deposited or invested is authorized to deposit or invest such moneys as may be required under this section”. Sec. 438. Section 346(c)(2) of title 11 of the United States Code is amended by striking out “operation” and inserting in lieu thereof “corporation”. Sec. 439. Section 350(b) of title 11 of the United States Code is amended by striking out “a” and inserting in lieu thereof “A”. Sec. 440. Section 361(1) of title 11 of the United States Code is amended by inserting “a cash payment or” after “make ”. Sec. 441. (a) Section 362(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “action or” after “other”; and (2) in paragraph (3), by inserting “or to exercise control over property of the estate” after “estate” the second place it appears. (b) Section 362(b) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting “or to the extent that such act is accomplished within the period provided under section 547(e)(2)(A) of this title” after “title”; (2) in paragraph (6), by— (A) inserting “or due from” after “held by”; and (B) striking out “or secure commodity contracts” and inserting in lieu thereof “secure, or settle commodity contracts”, and by inserting “financial institution,” after “stockbroker” each time it appears. (3) in paragraph (8) as redesignated by section 392, by— Ante, p. 365. (A) striking out “said” and inserting in lieu thereof “the”; and (B) striking out “or” the last place it appears; (4) in paragraph (9) as redesignated by section 392, by striking out the period and inserting in lieu thereof a semicolon; and (5) by adding after paragraph (9) the following new paragraph: “(10) under subsection (a) of this section, of the presentment of a negotiable instrument and the giving of notice of and protesting dishonor of such an instrument.”. (c) Section 362(c)(2)(B) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. (d) Section 362(d)(2) of title 11 of the United States Code is amended by inserting “under subsection (a) of this section” after “property” the first place it appears. (e) Section 362(e) of title 11 of the United States Code is amended— (1) in the first sentence by inserting “the conclusion of” after “pending”; and (2) by striking out the last sentence and inserting in lieu thereof the following: “The court shall order such stay continued in effect pending the conclusion of the final hearing under subsection (d) of this section if there is a reasonable likelihood that the party opposing relief from such stay will prevail at the conclusion of such final hearing. If the nearing under this subsection is a preliminary hearing, then such final hearing shall be commenced not later than thirty days after the conclusion of such preliminary hearing.”. (f) Section 362(f) of title 11 of the United States Code is amended by— (1) striking out “The” and inserting in lieu thereof “Upon request of a party in interest, the”; and (2) inserting “with or” after “court,”. Sec. 442. (a) Section 363(a) of title 11 of the United States Code is amended by— (1) inserting “whenever acquired” after “equivalents”; and (2) inserting “and includes the proceeds, products, offspring, rents, or profits of property subject to a security interest as provided in section 552(b) of this title, whether existing before or after the commencement of a case under this title” after “interest”. (b) Section 363(b) of title 11 of the United States Code is amended by— (1) striking out “(b)” and inserting in lieu thereof “(b)(1)”; and (2) adding at the end thereof the following new paragraph: “(2) If notification is required under subsection (a) of section 7 A of the Clayton Act (15 U.S.C. 18a) in the case of a transaction under this subsection, then— “(A) notwithstanding subsection (a) of such section, such notification shall be given by the trustee; and “(B) notwithstanding subsection (b) of such section, the required waiting period shall end on the tenth day after the date of the receipt of such notification, unless the court, after notice and hearing, orders otherwise.”. (c) Section 363(e) of title 11 of the United States Code is amended by— (1) inserting “, with or without a hearing,” after “court”; and (2) striking out the last sentence. (d) Section 363(f)(3) of title 11 of the United States Code is amended by striking out “such interest” the second place it appears and inserting in lieu thereof “all liens on such property”. (e) Section 363(h) of title 11 of the United States Code is amended by striking out “immediately before” and inserting in lieu thereof “at the time of”. (f) Section 363(i) of title 11 of the United States Code is amended by striking out “compenation” and inserting in lieu thereof “compensation”. (g) Section 363(k) of title 11 of the United States Code is amended by striking out “if the holder” and inserting in lieu thereof “unless the court for cause orders otherwise the holder of such claim may bid at such sale, and, if the holder”. (h) Section 363(1) of title 11 of the United States Code is amended by— (1) striking out “The trustee” and inserting in lieu thereof “Subject to the provisions of section 365, the trustee”; (2) striking out “conditions” and inserting in lieu thereof “condition”; (3) striking out “a taking” and inserting in lieu thereof “or the taking”; and (4) striking out “interests” and inserting in lieu thereof “interest”. (i) Section 363(n) of title 11 of the United States Code is amended by— (1) striking out “void” and inserting in lieu thereof “avoid”; (2) striking out “voiding” and inserting in lieu thereof “avoiding”; and (3) amending the last sentence to read as follows: “In addition to any recovery under the preceding sentence, the court may grant judgment for punitive damages in favor of the estate and against any such party that entered into such an agreement in willful disregard of this subsection.”. (j) Section 363 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(o) In any hearing under this section— “(1) the trustee has the burden of proof on the issue of adequate protection; and “(2) the entity asserting an interest in property has the burden of proof on the issue of the validity, priority, or extent of such interest.”. Sec. 443. Section 366(a) of title 11 of the United States Code is amended by inserting “of the commencement of a case under this title or” after “basis”. Sec. 444. Section 501(d) of title 11 of the United States Code is amended by inserting “502(e)(2),” before “502(f)”. Sec. 445. (a) Section 502(a) of title 11 of the United States Code is amended by inserting “general” before “partner”. (b) Section 502(b) of title 11 of the United States Code is amended— (1) by inserting “(e)(2),” after “subsections”; (2) by inserting “in lawful currency of the United States” after “claim” the second place it appears; (3) in paragraph (1), by striking out “, and unenforceable against” and inserting in lieu thereof “and”; (4) by striking out paragraph (3) and redesignating paragraphs (4), (5), (6), (7), (8), and (9) as paragraphs (3), (4), (5), (6), (7), and (8), respectively; (5) in paragraph (3), as redesignated by paragraph (5), by inserting “the” after “exceeds”; (6) in paragraph (5), as redesignated by paragraph (5), by— (A) striking out “the claim” and inserting in lieu thereof “such claim”, and (B) striking out the comma after “petition”; and (7) in paragraph (7), as redesignated by paragraph (5), by— (A) inserting “the claim of an employee” before “for damages”; (B) striking out “and” in subparagraph (A)(i) and inserting in lieu thereof “or”; (C) striking out “the” the first place it appears in subparagraph (B) and inserting in lieu thereof “any”; and (D) inserting a comma after “such contract” in subparagraph (B). (c) Section 502(c) of title 11 of the United States Code is amended— (1) in paragraph (1) by— (A) inserting “the” before “fixing”; and (B) striking out “closing” and inserting in lieu thereof “administration”; and (2) in paragraph (2), by— (A) inserting “right to payment arising from a” after “any”; and (B) striking out “if such breach gives rise to a right to payment”. (d) Section 502(e)(1) of title 11, United States Code, is amended— (1) by striking out “and (b)” and inserting in lieu thereof “, (b), and (c)”; and (2) by striking out the commas before and after “or has secured”; (3) in subparagraph (B), by inserting “or disallowance” after “allowance”; and (4) in subparagraph (C), by— (A) striking out “requests subrogation” and inserting in lieu thereof “asserts a right of subrogation to the rights of such creditor”; and (B) striking out “to the rights of such creditor”. (e) Section 502(h) of title 11 of the United States Code is amended by striking out “522(i)” and inserting in lieu thereof “522”. (f) Section 502(j) of title 11 of the United States Code is amended to read as follows: “(j) A claim that has been allowed or disallowed may be reconsidered for cause. A reconsidered claim may be allowed or disallowed according to the equities of the case. Reconsideration of a claim under this subsection does not affect the validity of any payment or transfer from the estate made to a holder of an allowed claim on account of such allowed claim that is not reconsidered, but if a reconsidered claim is allowed and is of the same class as such holder’s claim, such holder may not receive any additional payment or transfer from the estate on account of such holder’s allowed claim until the holder of such reconsidered and allowed claim receives payment on account of such claim proportionate in value to that already received by such other holder. This subsection does not alter or modify the trustee’s right to recover from a creditor any excess payment or transfer made to such creditor.”. Sec. 446. Section 503(b) of title 11 of the United States Code is amended— (1) by striking out the comma after “be allowed”; (2) in paragraph (1)(C), by striking out the comma after “credit”; (3) in paragraph (2), by inserting “(a)” after “330”; (4) in paragraph (3), by inserting a comma after “paragraph (4) of this subsection”; (5) in paragraph (3)(C), by striking out the comma after “case”; (6) in paragraph (5), by striking out “and” after the semicolon; and (7) in paragraph (6), by striking out the period and inserting in lieu thereof “; and”. Sec. 447. Section 505(a) of title 11 of the United States Code is amended in paragraph (2)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 448. (a) Section 506(b) of title 11 of the United States Code is amended by inserting “for” after “provided”. (b) Paragraphs (1) and (2) of section 506(d) of title 11 of the United States Code are amended to read as follows: “(1) such claim was disallowed only under section 502(b)(5) or 502(e) of this title; or “(2) such claim is not an allowed secured claim due only to the failure of any entity to file a proof of such claim under section 501 of this title.”. Sec. 449. (a) Section 507(a) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting a comma after “severance”: (2) in paragraph (4), by striking out “employee benefit plans” and inserting in lieu thereof “an employee benefit plan”; (3) in paragraph (4)(B)(i), by inserting “each” after “covered by”; and (4) in paragraph (7) as redesignated by section 350 by inserting “only” after “units,”. (b) Section 507(c) of title 11 of the United States Code is amended by striking out “shall be treated the same” and inserting in lieu thereof “has the same priority”. Sec. 450. (a) Section 509(a) of title 11 of the United States Code is amended by— (1) striking out “subsections (b) and” and inserting in lieu thereof “subsection (b) or”; and (2) inserting “against the debtor” after “a creditor”. (b) Section 509(b)(1) of title 11 of the United States Code is amended by striking out “of a” and inserting in lieu thereof “of such”. (c) Section 509(c) of title 11 of the United States Code is amended by striking out “section 509 of this title” and inserting in lieu thereof “this section”. Sec. 451. Section 510(b) of title 11 of the United States Code is Claims. amended to read as follows: “(b) For the purpose of distribution under this title, a claim arising from rescission of a purchase or sale of a security of the debtor or of an affiliate of the debtor, for damages arising from the purchase or sale of such a security, or for reimbursement or contribution allowed under section 502 on account of such a claim, shall be subordinated to all claims or interests that are senior to or equal the claim or interest represented by such security, except that if such security is common stock, such claim has the same priority as common stock.”. Sec. 452. Section 521(3) of title 11 of the United States Code, as redesignated in section 305, is amended by inserting “, whether or Ante, p. 352. not immunity is granted under section 344 of this title” after “estate” the second place it appears. Sec. 453. (a) Section 522(a)(2) of title 11 of the United States Code is amended by inserting “or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate” after “petition”. (b) Section 522(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the case is dismissed, property exempted under this section is not liable during or after the case for any debt of the debtor that arose, or that is determined under section 502 of this title as if such debt had arisen, before the commencement of the case, except— “(1) a debt of a kind specified in section 523(a)(1) or 523(a)(5) of this title; or “(2) a debt secured by a lien that is— “(A) (i) not avoided under subsection (f) or (g) of this section or under section 544, 545, 547, 548, 549, or 724(a) of this title; and “(ii) not void under section 506(d) of this title; or Ante, p. 374. “(B) a tax lien, notice of which is properly filed.”. (c) Section 522(e) of title 11 of the United States Code is amended by striking out “exemptions” and inserting in lieu thereof “an exemption”. Sec. 454. (a) Section 523(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by— (A) striking out “obtaining” each place it appears; and (B) striking out “refinance of credit,” and inserting in lieu thereof “refinancing of credit, to the extent obtained”; and (2) by striking out “of higher education” in paragraph (8). (b) Section 523(a)(5) of title 11, United States Code, is amended by— (1) amending the first paragraph thereof by inserting the words “or other order of a court of record” after the words “divorce decree,”; and (2) inserting “, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State” after “Social Security Act”. (c) Section 523(c) of title 11 of the United States Code is amended by inserting “of a kind” after “debt” the first time it appears. Sec. 455. Section 524(a) of title 11 of the United States Code is amended by striking out “any act” each place it appears and inserting in lieu thereof “an act”. Sec. 456. (a) Section 541(a) of title 11 of the United States Code is amended— (1) by striking out “under” the second time it appears; (2) by inserting “and by whomever held” after “located”; (3) in paragraph (3), by inserting “329(b), 363(n),” after “section”; (4) in paragraph (5), by striking out “An” and inserting in lieu thereof “Any”; and (5) in paragraph (6), by striking out “and” and inserting in lieu thereof “or”. (b) Section 541(c) of title 11 of the United States Code is amended— (1) by inserting “in an agreement, transfer instrument, or applicable nonbankruptcy law” after “provision”; and (2) in paragraph (1)(B), by— (A) striking out “the taking” and inserting in lieu thereof “taking”; and (B) inserting “before such commencement” after “custodian”. (c) Section 541(d) of title 11 of the United States Code is amended by inserting “(1) or (2)” after “(a)”. (d) Section 541(e) of title 11 of the United States Code is repealed. Sec. 457. Section 542(e) of title 11 of the United States Code is amended by inserting “to turn over or” before “disclose”. Sec. 458. (a) Section 543(a) of title 11 of the United States Code is amended by inserting “, product, offspring, rents, or profits” after “proceeds”. (b) Section 543(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by— (A) inserting “held by or” after “debtor”; and (B) inserting “, product, offspring, rents, or profits” after “proceeds”; and (2) in paragraph (2), by inserting “, product, offspring, rents, or profits” after “proceeds”. (c) Section 543(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “or proceeds, product, off-spring, rents, or profits of such property” after “property”; and (2) in paragraph (3), by inserting “that has been” before “approved”. (d) Section 543(d) of title 11 of the United States Code is amended to read as follows: “(d) After notice and hearing, the bankruptcy court— “(1) may excuse compliance with subsection (a), (b), or (c) of this section, if the interests of creditors and, if the debtor is not insolvent, of equity security holders would be better served by permitting a custodian to continue in possession, custody, or control of such property, and “(2) shall excuse compliance with subsections (a) and (b)(1) of this section if the custodian is an assignee for the benefit of the debtor’s creditors that was appointed or took possession more than 120 days before the date of the filing of the petition, unless compliance with such subsections is necessary to prevent fraud or injustice.”. Sec. 459. Section 544(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “such” after “obtained”; (2) in paragraph (2), by striking out “; and” and inserting in lieu thereof “, or”; and (3) in paragraph (3), by— (A) inserting “, other than fixtures,” after “property”; and (B) inserting “and has perfected such transfer” after “purchaser” the second place it appears. Sec. 460. Section 545 of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by striking out “is” the first time it appears; (2) in paragraph (1)(C), by striking out “apponted” and inserting in lieu thereof appointed or authorized to take”; and (3) in paragraph (2), by striking out “on the date of of the filing the petition” each place it appears and inserting in lieu thereof “at the time of the commencement of the case”. Sec. 461. (a) Section 546(a) of title 11 of the United States Code is amended in paragraph (1) by striking out “and” and inserting in lieu thereof “or”. (b) Section 546(b) of title 11 of the United States Code is amended by striking out “the trustee under section 544, 545, or” and inserting in lieu thereof “a trustee under sections 544, 545, and”. (c) Section 546(c) of title 11 of the United States Code is amended— (1) by striking out “the trustee” and inserting in lieu thereof “a trustee”; (2) by striking out “right” the first place it appears; (3) by inserting “of goods that has sold goods to the debtor” after “seller” the first place it appears; (4) by striking out “of goods to the debtor” after “business,”; and (5) in paragraph (2), by— (A) inserting “the” after “if’; and (B) striking out “an administrative expense” and inserting in lieu thereof “a claim of a kind specified in section 503(b) of this title” (d) Section 546(e) of title 11 of the United States Code, as redesignated by section 351, is amended by inserting “financial institution” after “stockbroker”. Sec. 462. (a) Section 547(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “including proceeds of such property,” after “law,”; and (2) in paragraph (4), by— (A) striking out “, without penalty”; and (B) inserting “without penalty” after “payable”. (b) Section 547(b) of title 11 of the United States Code is amended— (1) by striking out “of property of the debtor” and inserting in lieu thereof “of an interest of the debtor in property”; and (2) in paragraph (4) by amending subparagraph (B) to read as follows: “(B) between ninety days and one year before the date of the Tiling of the petition, if such creditor at the time of such transfer was an insider;”. (c) Section 547 of title 11 of the United States Code is amended in subsection (c)(2) thereof by striking out subparagraph (B) of such subsection, and by redesignating subparagraphs (C) and (D) thereof as subparagraphs (B) and (C), respectively. (d) Section 547(c) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by inserting “by the debtor” after “incurred”; (2) in paragraph (3), by striking out “of” the first place it appears and inserting in lieu thereof “that creates”; (3) in paragraph (3)(B), by— (A) inserting “on or after “perfected”; and (B) striking out “such security interest attaches” and inserting in lieu thereof “the debtor receives possession of such property”; (4) in paragraph (5), by— (A) striking out “of” the first place it appears and inserting in lieu thereof “that creates”; and (B) striking out “all security interest” and inserting in lieu thereof “all security interests”; and (5) in paragraph (5)(A)(ii), by striking out “and” and inserting in lieu thereof “or”. (e) Section 547(d) of title 11 of the United States Code is amended by— (1) striking out “A” and inserting in lieu thereof “The”; (2) inserting “an interest in” after “transfer of’: (3) inserting “to or for the benefit of a surety” after “transferred”; and (4) inserting “such” after “reimbursement of’. (f) Section 547(e) of title 11 of the United States Code is amended in paragraph (2)(C)(i), by striking out “and” and inserting in lieu thereof “or”. (g) Section 547 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(g) For the purposes of this section, the trustee has the burden of proving the avoidability of a transfer under subsection (b) of this section, and the creditor or party in interest against whom recovery or avoidance is sought has the burden of proving the nonavoidability of a transfer under subsection (c) of this section.”. Sec. 463. (a) Section 548(a) of title 11 of the United States Code is amended— (1) by striking out “if the debtor” and inserting in lieu thereof “if the debtor voluntarily or involuntarily”; (2) in paragraph (1), by striking out “occurred” and inserting in lieu thereof “was made”; and (3) in paragraph (2)(B)(ii), by inserting “or a transaction” after “engaged in business”. (b) Section 548(c) of title 11 of the United States Code is amended by— (1) inserting “or may retain” after “lien on”; and (2) striking out “, may retain any lien transferred,”. (c) (1) Section 548(d)(1) of title 11 of the United States Code is amended by— (A) striking out “becomes so far” and inserting in lieu thereof “is so”; (B) striking out “such transfer could have been” and inserting in lieu thereof “applicable law permits such transfer to be”; and (C) striking out “occurs” and inserting in lieu thereof “is made”. (2) Section 548(d)(2)(B) of title 11 is amended by inserting “financial institution,” after “stockbroker”. Sec. 464. (a) Section 549(a) of title 11 of the United States Code is amended— (1) by striking out “(b) and (c)” and inserting in lieu thereof “(b) or (c)”; and (2) in paragraph (2)(A), by inserting “only” after “authorized”. (3) striking out “that occurs” and inserting in lieu thereof “made”; (4) striking out “is valid against the trustee to the extent of’ and inserting in lieu thereof “to the extent”; and (5) inserting “is” before “given”. (c) Section 549(c) of title 11 of the United States Code is amended Real property. to read as follows: “(c) The trustee may not avoid under subsection (a) of this section a transfer of real property to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value unless a copy or notice of the petition was filed, where a transfer of such real property may be recorded to perfect such transfer, before such transfer is so perfected that a bona fide purchaser of such property, against whom applicable law permits such transfer to be perfected, could not acquire an interest that is superior to the interest of such good faith purchaser. A good faith purchaser without knowledge of the commencement of the case and for less than present fair equivalent value has a lien on the property transferred to the extent of any present value given, unless a copy or notice of the petition was so filed before such transfer was so perfected”. (d) Section 549(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 465. (a) Section 550(a) of title 11 of the United States Code is amended by striking out “549, or 724(a) of this title” and inserting in lieu thereof “549, 553(b), or 724(a) of this title”. (b) Section 550(d) of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by inserting “or accruing to” after “by”; (2) in paragraph (1)(B), by striking out “value” and inserting in lieu thereof “the value of such property”; (3) in paragraph (2), by striking out subparagraphs (D) and (E) and inserting in lieu thereof the following: “(D) payment of any debt secured by a lien on such property that is superior or equal to the rights of the trustee; and”, and (4) in paragraph (2), by redesignating subparagraph (F) as subparagraph (E). (c) Section 550(e)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 466. Section 552(b) of title 11 of the United States Code is amended by— (1) inserting “522,” after “506(c),”; (2) striking out “a secured party enter” and inserting in lieu thereof “an entity entered”; and (3) striking out “except to the extent” and inserting in lieu thereof “except to any extent”. Sec. 467. Section 553(b)(1) of title 11 of the United States Code is amended by striking out “or 365(h)(1)” and inserting in lieu thereof “, 365(h)(2), or 365(i)(2)”. Sec. 468. (a) Subsections (a) and (b) of section 554 of title 11 of the United States Code are each amended by inserting “and benefit” after “value”. (b) Section 554(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the court orders otherwise, any property scheduled under section 521(a)(1) of this title not otherwise administered at the time of the closing of a case is abandoned to the debtor and administered for purposes of section 350 of this title.”. (c) Section 554(d) of title 11 of the United States Code is amended by striking out “section (a) or (b) of”. Sec. 469. Section 555 of title 11 of the United States Code is amended by inserting “, financial institution,” after “stockbroker”. Sec. 470. (a) Chapter 5 of title 11 of the United States Code as amended by section 352 is amended by adding at the end thereof the following new section: “§ 558. Defenses of the estate “The estate shall have the benefit of any defense available to the debtor as against any entity other than the estate, including statutes of limitation, statutes of frauds, usury, and other personal defenses. A waiver of any such defense by the debtor after the commencement of the case does not bind the estate.”. (b) The table of sections for chapter 5 of title 11 of the United States Code is amended by adding at the end thereof the following new item: “558. Defenses of the estate.”. Sec. 471. The table of sections for chapter 7 of title 11 of the United States Code is amended by striking out “Succesor” in the item relating to section 703 and inserting in lieu thereof “Succcssor” Sec. 472. (a) Section 702(b) of title 11 of the United States Code is amended by inserting “held” after “meeting of creditors”. (b) Section 702(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “of a kind” after “claims”; and (2) in paragraph (2), by inserting “a” after “for”. (c) Section 702(d) of title 11 of the United States Code is amended by striking out “subsection (c) of”. Sec. 473. Section 703(b) of title 11 of the United States Code is amended by striking out “specified in section 701(a) of this title. Sections 701(b) and 701(c) of this title apply to such interim trustee” and inserting in lieu thereof “and subject to the provisions of section 701 of this title”. Sec. 474. Section 704 of title 11 of the United States Code as amended by section 311 is amended in paragraph (1), by striking out Ante, p. 355. “up”. Sec. 475. Paragraphs (1) and (2) of section 707 of title 11 of the United States Code are each amended by striking out “and” and inserting in lieu thereof “or”. Sec. 476. (a) Section 723(a) of title 11 of the United States Code is amended by striking out all after “claims” and inserting in lie thereof “which are allowed in a case under this chapter concerning a partnership and with respect to which a general partner of the partnership is personally liable, the trustee shall have a claim against such general partner for the full amount of the deficiency”. (b) Section 723(c) of title 11 of the United States Code is amended by— (1) striking out “such case” each place it appears and inserting in lieu thereof “such partner’s case”; (2) striking out “be property” and inserting in lieu thereof “by property”; and (3) striking out “the kind” and inserting in lieu thereof “a kind”. Sec. 477. (a) Section 724(b) of title 11 of the United States Code is amended— (1) by striking out “taxes” and inserting in lieu thereof “a tax”; (2) in paragraph (2), by— (A) striking out “claims” and inserting in lieu thereof “any holder of a claim of a kind”; (B) striking out “sections” and inserting in lieu thereof “section”; and (C) striking out “and” and inserting in lieu thereof “or”; and (3) in paragraph (3), by inserting “tax” after “allowed”. (b) Section 724(c) of title 11 of the United States Code is amended by— (1) striking out “creditor” and inserting in lieu thereof “holder of a claim”; and (2) striking out “creditors” each place it appears and inserting in lieu thereof “holders”. (c) Section 724(d) of title 11 of the United States Code is amended by— (1) striking out “whose priority” and inserting in lieu thereof “the priority of which”; and (2) inserting ‘ if such lien were” after “the same as”. Sec. 478. Section 725 of title 11 of the United States Cede is amended by inserting “of property of the estate” after “distribution”. Sec. 479. (a) Section 726(b) of title 11 of the United States Code is amended by— (1) striking out “a particular paragraph” and inserting in lieu thereof “each such particular paragraph”; and (2) striking out “administrative expenses” each place it appears and inserting in lieu thereof “a claim allowed under section 503(b) of this title”; and (3) striking out “have” and inserting in lieu thereof “has”. (b) Section 726(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “Administrative expenses” and inserting in lieu thereof “Claims allowed under section 503 of this title”; and (2) in paragraph (2), by striking out “Claims other than for administrative expenses” and inserting in lieu thereof “Allowed claims, other than claims allowed under section 503 of this title,”. Sec. 480. (a) Section 727(a) of title 11 of the United States Code is amended— (1) in paragraph (6)(C), by striking out “property” and inserting in lieu thereof “properly”; (2) in paragraph (7), by inserting “, under this title or under the Bankruptcy Act,” after “another case”; and (3) in paragraph (8), by inserting a comma after “371”. (b) Section 727(c)(1) of title 11 of the United States Code is amended by inserting “the granting of a” after “to”. (c) Section 727(e)(2)(A) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 481. (a) Section 728(c) of title 11 of the United States Code is amended by striking out the comma after “taxable income”. (b) Section 728(d)(2) of title 11 of the United States Code is amended by inserting “otherwise” after “is”, and by striking out “otherwise” after “partner”. Sec. 482. Section 741 of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by— (A) striking out “the debtor” the first time it appears and inserting in lieu thereof “a person”; (B) striking out “holds” and inserting in lieu thereof “has”; (C) striking out “the debtor” the second and third time it appears and inserting in lieu thereof “such person”; and (D) striking out “business as a stockbroker” and inserting in lieu thereof “such person”s business as a stockbroker,”, (2) in paragraph (2)(B), by— (A) striking out “holds” and inserting in lieu thereof “has”; (B) striking out “the debtor” the first place it appears and inserting in lieu thereof “a person”; and (C) by striking out “the debtor” and inserting in lieu thereof “such person” in clause (ii); (3) in paragraph (4)(A)(i), by striking out “and that is” and inserting in lieu thereof “from and that is the lawful”; (4) in paragraph (6)(A)(i), by— (A) inserting a comma after “petition”; and (B) inserting “any” after “except”; and (5) in paragraph (7), by amending such paragraph to read as follows: “(7) ‘securities contract’ means contract for the purchase, sale, or loan of a security, including an option for the purchase or sale of a security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any option entered into on a national securities exchange relating to foreign currencies, or the guarantee of any settlement of cash or securities by or to a securities clearing agency;”; and (6) in paragraph (8) by inserting “a final settlement payment,” after “settlement payment on account,”. Sec. 483. Section 745(a) of title 11 of the United States Code is amended by inserting “the debtor for” after “by”. Sec. 484. (a) Section 752(a) of title 11 of the United States Code is amended by— (1) striking out “customers allowed” and in lieu thereof “customers’ allowed”; (2) inserting “of the kind” after “except claims”; and (3) inserting “such” before “customer property”. (b) Section 752(b)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 485. Section 761 of title 11 of the United States Code is amended in paragraph (10), by striking out “and that is” in subparagraph (A)(viii) and inserting in lieu thereof “from and that is the lawful”. Sec. 486. Section 763(a) of title 11 of the United States Code is amended by— (1) inserting “the debtor for” after “by”; and (2) striking out “deemed to be” and inserting in lieu thereof “treated as”. Sec. 487. Section 764(a) of title 11 of the United States Code is amended by inserting “by the debtor” after “any transfer”. Sec. 488. Section 765(a) of title 11 of the United States Code is amended by striking out “notice under”, and inserting in lieu thereof “notice required by”. Sec. 489. Section 766(j)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 490. Section 901(a) of title 11 of the United States Code is amended by inserting a comma after “1111(b)”. Sec. 491. Section 902(2) of title 11 of the United States Code is amended by striking out “title, legal or equitable, to real property against which has been levied a special assessment or special tax” and by inserting in lieu thereof “legal or equitable title to real property against which a special assessment or special tax has been levied”. Sec. 492. Section 903(2) of title 11 of the United States Code is amended by striking out “to” the first place it appears. Sec. 493. Chapter 9 of title 11 of the United States Code is 11 USC prec 921.. amended by striking out “SUBCHAPER II” and inserting in lieu thereof “SUBCHAPTER II”. Sec. 494. (a) Section 921(c) of title 11 of the United States Code is amended by— (1) striking out “an” and inserting in lieu thereof “any”; and (2) striking out the comma after “petition” the second place it appears, and after “faith”. (b) Section 921 of title 11 of the United States Code is amended by redesignating subsections (e) and (f) as subsections (d) and (e), respectively. (c) Section 921(a) is amended by striking out “109(c)” and inserting in lieu thereof “109(d)”. (d) Section 921(d) of title 11 of the United States Code, as so redesignated, is amended by striking out “subsection (d)” and inserting in lieu thereof “subsection (c)”. Sec. 495. Section 922(a)(1) of title 11 of the United States Code is amended by— (1) inserting “a” before “judicial”; and (2) inserting “action or” before “proceeding”. Sec. 496. Section 927(b) of title 11 of the United States Code is amended by inserting “of a plan under this chapter” after “confirmation”. Sec. 497. Section 943(b) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “to be taken”; and (2) by amending paragraph (5) to read as follows: “(5) except to the extent that the holder of a particular claim has agreed to a different treatment of such claim, the plan provides that on the effective date of the plan each holder of a claim of a kind specified in section 507(a)(1) of this title will receive on account of such claim cash equal to the allowed amount of such claim; and”. Sec. 498. Section 945(a) of title 11 of the United States Code is amended by striking out “execution” and inserting in lieu thereof “implementation”. Sec. 499. Section 1102(b)(1) of title 11 of the United States Code is amended by striking out “order for relief’ and inserting in lieu thereof “commencement of the case”. Sec. 500. (a) Section 1103(b) is amended by— (1) inserting “having an adverse interest” after “entity”; and (2) adding at the end thereof the following: “Representation of one or more creditors of the same class as represented by the committee shall not per se constitute the representation of an adverse interest/’. (b) Section 1103(c) of title 11 of the United States Code is amended— (1) in paragraph (3), by— (A) striking out “recommendations” and inserting in lieu thereof “determinations”; and (B) inserting “or rejections” after “acceptances”; and (2) in paragraph (4), by striking out “, if a trustee or examiner, as the case may be, has not previously been appointed under this chapter in the case”. Sec. 501. Section 1105 of title 11 of the United States Code is amended by striking out “estate, and” and inserting in lieu thereof “estate and of the”. Sec. 502. Section 1106(b) of title 11 of the United States Code is amended by inserting “, except to the extent that the court orders otherwise, before “any other”. Sec. 503. Section 1107(a) of title 11 of the United States Code is amended by inserting “serving in a case” after “on a trustee”. Sec. 504. Section 1108 of title 11 of the United States Code is amended by inserting “, on request of a party in interest and after notice and a hearing, after “court”. Sec. 505. (a) Section 1112(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by striking out “is an involuntary case originally commenced under this chapter” and inserting in lieu thereof “originally was commenced as an involuntary case under this chapter”; and (2) in paragraph (3), by striking but “on other than” and inserting in lieu thereof “other than on”. (b) Section 1112(b) of title 11 of the United States Code is amended— (1) in paragraph (5), by inserting “a request made for” before “additional”; and (2) in paragraph (8), by striking out “and” and inserting in lieu thereof “or”. Sec. 506. (a) Section 1121(c)(3) of title 11 of the United States Code is amended by striking out “the claims or interests of which are” and inserting in lieu thereof “of claims or interests that is”. (b) Section 1121(d) of title 11 of the United States Code is amended by inserting “made within the respective periods specified in subsection (c) of this section” after “interest”. Sec. 507. (a) Section 1123(a) of title 11 of the United States Code is amended— (1) by striking out “A” and inserting in lieu thereof “Notwithstanding any otherwise applicable nonbankruptcy law, a”; (2) in paragraph (1), by— (A) inserting a comma after “classes of claims”; and (B) by striking out “507(a)(6) of this title” and inserting in lieu thereof “507(a)(7) of this title,”; (3) in paragraph (3), by striking out “shall”; (4) in paragraph (5), by striking out “execution” and inserting in lieu thereof “implementation”, and (5) in paragraph (5)(G), by inserting “of’ after “waiving”. (b) Section 1123(b)(2) of title 11 of the United States Code is amended by— (1) striking out “or rejection” and inserting in lieu thereof “, rejection, or assignment”; and (2) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”. Sec. 508. Section 1124 of title 11 of the United States Code is amended— (1) by amending paragraph ()(A) to read as follows: “(A) cures any such default that occurred before or after the commencement of the case under this title, other than a default of a kind specified in section 365(b)(2) of this title;”; Ante, p. 361. and (2) in paragraph (3)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 509. (a) Section 1125(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “, but adequate information need not include such information about any other possible or proposed plan” after “plan”; (2) in paragraph (2)(B), by inserting “the” after “with”; and (3) in paragraph (2)(C), by inserting “or’ after “holders”. (b) Section 1125(d) of title 11 of the United States Code is amended by— (1) inserting “required under subsection (b) of this section” after “statement” the first place it appears; and (2) inserting or otherwise seek review of,” after “appeal from”. (c) Section 1125(e) of title 11 of the United States Code is amended by— (1) inserting “acceptance or rejection of a plan” after “solicits”; and (2) inserting “solicitation of acceptance or rejection of a plan or” after “governing”. Sec. 510. (a) Section 1126(b)(2) of title 11 of the United States Code is amended by striking out “1125(a)(1)” and inserting in lieu thereof “1125(a)”. (b) Section 1126(d) of title 11 of the United States Code is amended by inserting a comma after “such interests” the first place it appears. (c) Section 1126(f) of title 11 of the United States Code is amended by— (1) striking out “is deemed” and inserting in lieu thereof “, and each holder of a claim or interest of such class, are conclusively presumed”; (2) striking out “solicititation” and inserting in lieu thereof “solicitation”; and (3) striking out “interest” and inserting in lieu thereof “interests” (d) Section 1126(g) of title 11 of the United States Code is amended by striking out “any payment or compensation” and inserting in lieu thereof “receive or retain any property”. Sec. 511. (a) Section 1127(a) of title 11 of the United States Code is amended by— (1) inserting “of a plan” after “After the proponent”; and (2) inserting “of such plan” after “modification”. (b) Section 1127(b) of title 11 of the United States Code is amended by striking out “the court, after notice and a hearing, confirms such plan, as modified, under section 1129 of this title, and circumstances warrant such modification” and inserting in lieu thereof “circumstances warrant such modification and the court, after notice and a hearing, confirms such plan as modified, under section 1129 of this title”. Sec. 512. (a) Section 1129(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “chapter.” and inserting in lieu thereof “title.”; (2) in paragraph (2), by striking out “chapter.” and inserting in lieu thereof “title.”; (3) by amending paragraph (4) to read as follows: “(4) Any payment made or to be made by the proponent, by the debtor, or by a person issuing securities or acquiring property under the plan, for services or for costs and expenses in or in connection with the case, or in connection with the plan and incident to the case, has been approved by, or is subject to the approval of, the court as reasonable;”; (4) in paragraph (5)(A)(ii), by striking out the period and inserting in lieu thereof “; and”; (5) in paragraph (5)(B), by striking out “The” and inserting in lieu thereof “the”; (6) in paragraph (6), by inserting “governmental” after “Any”; (7) in paragraph (7), by— (A) inserting “of each impaired class of claims or interests” in lieu of “each class”; and (B) striking out “creditor’s” in subparagraph (B) and inserting in lieu thereof “holder’s”; (8) in paragraph (8), by inserting “of claims or interests” after “each class”; and (9) by amending paragraph (10) to read as follows: “(10) If a class of claims is impaired under the plan, at least one class of claims that is impaired under the plan has accepted the plan, determined without including any acceptance of the plan by any insider.”. (b) Section 1129(b) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by striking out “lien” each place it appears and inserting in lieu thereof “liens”; (2) in paragraph (2)(B)(ii), by inserting “under the plan” after “retain”, and (3) in paragraph (2)(C)(i), by— (A) striking out “claim” and inserting in lieu thereof “interest”; and (B) striking out “and the value” and inserting in lieu thereof “or the value”. (c) Section 1129(d) of title 11 of the United States Code is amended by— (1) inserting “the application of” after “avoidance of” the second place it appears; and (2) adding at the end thereof the following new sentence: “In any hearing under this subsection, the governmental unit has the burden of proof on the issue of avoidance.”. Sec. 513. (a) Section 1141(a) of title 11 of the United States Code is amended by striking out “any creditor or equity security holder of, or general partner in,” and inserting in lieu thereof “any creditor, equity security holder, or general partner in”. (b) Section 1141(c) of title 11 of the United States Code is amended to read as follows: “(c) Except as provided in subsections (d)(2) and (d)(3) of this section and except as otherwise provided in the plan or in the order confirming the plan, after confirmation of a plan, the property dealt with by the plan is free and clear of all claims and interests of creditors, equity security holders, and of general partners in the debtor.”. Sec. 514. (a) The heading for section 1142 of title 11 of the United States Code is amended to read as follows: “§ 1142. Implementation of plan”. (b) The item relating to section 1142 in the table of sections for chapter 11 of title 11 of the United States Code is amended by striking out “Execution” and inserting in lieu thereof “Implementation”. (c) Section 1142(a) of title 11 of the United States Code is amended by striking out the comma after “plan” the second place it appears. (d) Section 1142(b) of title 11 of the United States Code is amended by inserting “a” after “by”. Sec. 515. Section 1144 of title 11 of the United States Code is amended by inserting “if and only” after “revoke such order”. Sec. 516. (a) Section 1145(a) of title 11 of the United States Code is amended— (1) in paragraph (3)(B)(i), by inserting “or 15(d)” after “13” and by inserting “or 78o(d)” after “78m”; (2) by amending paragraph (3)(B)(ii) to read as follows: “(ii) in compliance with the disclosure and reporting provision of such applicable section; and”; and (3) in paragraph (4), by striking out “stockholder” each place it appears and inserting in lieu thereof “stockbroker”. (b) Section 1145(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “and except with respect to ordinary trading transactions of an entity that is not an issuer” after “subsection”; (2) in paragraph (1)(C), by striking out “for” and inserting in lieu thereof “from”; (3) in paragraph (2)(a)(1), by striking out “combination” and inserting in lieu thereof “or combining”; and (4) in paragraph (2)(A)(ii), by striking out “among” and inserting in lieu thereof “from or to”. (c) Section 1145(d) of title 11 of the United States Code is amended by striking out “commercial”. Sec. 517. (a) Section 1146(c) of title 11 of the United States Code is amended by striking out “State or local”. (b) Section 1146(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 518. Section 1166 of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 519. Section 1168(b) of title 11 of the United States Code is amended by inserting a comma after “approval”. Sec. 520. Section 1169(c) of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 521. (a) Section 1170(a) of title 11 of the United States Code is amended by inserting “of all or a portion” after “the abandonment”. (b) Section 1170(c) of title 11 of the United States Code is amended by inserting a comma after “abandonment”. (c) Section U70(d)(2) of title 11 of the United States Code is amended by— (1) striking out “the abandonment of a railroad line” and inserting in lieu thereof “such abandonment”; and (2) striking out “termination” each place it appears and inserting in lieu thereof “suspension”. Sec. 522. Section 1171(b) of title 11 of the United States Code is amended by striking out “such” and inserting in lieu thereof “the same”. Sec. 523. Section 1173(a)(4) of title 11 of the United States Code is amended by striking out “compatible” and inserting in lieu thereof “consistent”. Sec. 524. Section 1301(c)(3) of title 11 of the United States Code is amended by inserting “continuation of’ after “by”. Sec. 525. (a) Section 1302(b) of title 11 of the United States Code as Ante, p. 356. amended by section 314 is amended by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively and by inserting after paragraph (2) the following new paragraph: “(3) dispose of, under regulations issued by the Director of the Administrative Office of the United States Courts, moneys received or to be received in a case under chapter XIII of the Bankruptcy Act; and”. (b) Section 1302(e) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “fix” and inserting in lieu thereof “set for such individual”; (2) in paragraph (1)(A), by striking out “for such individual”; and (3) in paragraph (2)(A), by— (A) striking out “of” and inserting in lieu thereof “received by”; and (B) striking out “upon all payments” and inserting in lieu thereof “of all such payments made”. Sec. 526. Section 1304(b) of title 11 of the United States Code is amended by striking out the comma after “of the debtor”. Sec. 527. (a) Section 1307(b) of title 11 of the United States Code is amended by inserting a comma after “time”. (b) Section 1307(c) of title 11 of the United States Code as amended by section 315 is amended— Ante, p. 356. (1) in paragraph (5), as redesignated by inserting “a request made for” before “additional”; (2) in paragraph (7), as redesignated by striking out “and” after the semicolon and inserting in lieu thereof “or”; and (3) in paragraph (8), as redesignated by inserting “other than completion of payments under the plan” after ‘In the plan”. Sec. 528. (a) Section 1322(a)(2) of title 11 of the United States Code is amended by inserting a comma after “payments”. (b) Section 1322(b) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “, or leave unaffected the rights of holders of any class of claims” before the semicolon; (2) in paragraph (4), by inserting “other” after “claim or any”; (3) in paragraph (7), by— (A) inserting “subject to section 365 of this title,” before “provide”; (B) striking out “or rejection” and inserting in lieu thereof rejection, or assignment”; and (C) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”; and (4) in paragraph (8), by striking out “any”. Sec. 529. Section 1324 of title 11 of the United States Code is amended by striking out “the” the second place it appears. Sec. 530. Section 1325(a)(1) of title 11 of the United States Code is amended by inserting “the” before “other”. Sec. 531. Section 1326(b)(2) of title 11 of the United States Code as amended by section 318 is amended by inserting “of this title” after Ante, p. 357. “1302(d)”. Sec. 532. Section 1328(e) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “by the debtor” after “obtained”; and (2) in paragraph (2), by striking out “knowledge of such fraud came to the requesting party” and inserting in lieu thereof “the requesting party did not know of such fraud until”. Sec. 533. Section 1329(a) of title 11 of the United States Code is amended— (1) by inserting “of the plan” after “confirmation”; (2) by striking out “a plan” and inserting in lieu thereof “such plan”; and (3) in paragraph (3), by striking out the comma. Sec. 534. Section 151302(a) of title 11 of the United States Code is amended by inserting “, or shall appoint a disinterested person to serve,” after “The United States trustee shall serve”. Subtitle J— Collective Bargaining Agreements Sec. 541. (a) Title 11 of the United States Code is amended by adding after section 1112 the following new section: “§ 1113. Rejection of collective bargaining agreements “(a) The debtor in possession, or the trustee if one has been appointed under the provisions of this chapter, other than a trustee 11 USC 1161. 45 USC 151. in a case covered by subchapter IV of this chapter and by title I of the Railway Labor Act, may assume or reject a collective bargaining agreement only in accordance with the provisions of this section. “(b) (1) Subsequent to filing a petition and prior to filing an application seeking rejection of a collective bargaining agreement, the debtor in possession or trustee (hereinafter in this section ‘trustee’ shall include a debtor in possession), shall— “(A) make a proposal to the authorized representative of the employees covered by such agreement, based on the most complete and reliable information available at the time of such proposal, which provides for those necessary modifications in the employees benefits and protections that are necessary to permit the reorganization of the debtor and assures that all creditors, the debtor and all of the affected parties are treated fairly and equitably; and “(B) provide, subject to subsection (d)(3), the representative of the employees with such relevant information as is necessary to evaluate the proposal. “(2) During the period beginning on the date of the making of a proposal provided for in paragraph (1) and ending on the date of the hearing provided for in subsection (d)(1), the trustee shall meet, at reasonable times, with the authorized representative to confer in good faith in attempting to reach mutually satisfactory modifications of such agreement. “(c) The court shall approve an application for rejection of a collective bargaining agreement only if the court finds that— “(1) the trustee has, prior to the hearing, made a proposal that fulfills the requirements of subsection (b)(1); “(2) the authorized representative of the employees has refused to accept such proposal without good cause; and “(3) the balance of the equities clearly favors rejection of such agreement. “(d) (1) Upon the filing of an application for rejection the court shall schedule a hearing to be held not later than fourteen days after the date of the filing of such application. All interested parties may appear and be heard at such hearing. Adequate notice shall be provided to such parties at least ten days before the date of such nearing. The court may extend the time for the commencement of such hearing for a period not exceeding seven days where the circumstances of the case, and the interests of justice require such extension, or for additional periods of time to which the trustee and representative agree. “(2) The court shall rule on such application for rejection within thirty days after the date of the commencement of the hearing. In the interests of justice, the court may extend such time for ruling for such additional period as the trustee and the employees’ representative may agree to. If the court does not rule on such application within thirty days after the date of the commencement of the hearing, or within such additional time as the trustee and the employees’ representative may agree to, the trustee may terminate or alter any provisions of the collective bargaining agreement pending the ruling of the court on such application. “(3) The court may enter such protective orders, consistent with Confidentiality. the need of the authorized representative of the employee to evaluate the trustee’s proposal and the application for rejection, as may be necessary to prevent disclosure of information provided to such representative where such disclosure could compromise the position of the debtor with respect to its competitors in the industry in which it is engaged. “(e) If during a period when the collective bargaining agreement continues in effect, and if essential to the continuation of the debtor’s business, or in order to avoid irreparable damage to the estate, the court, after notice and a hearing, may authorize the trustee to implement interim changes in the terms, conditions, wages, benefits, or work rules provided by a collective bargaining agreement. Any hearing under this paragraph shall be scheduled in accordance with the needs of the trustee. The implementation of such interim changes shall not render the application for rejection moot. “(f) No provision of this title shall be construed to permit a trustee to unilaterally terminate or alter any provisions of a collective bargaining agreement prior to compliance with the provisions of this section.”. (b) The table of sections for chapter 11 of title 11, United States Code, is amended by inserting after the item relating to section 1112 the following new item: “1113. Rejection of collective bargaining agreements.”. (c) The amendments made by this section shall become effective Effective date. 11 USC 1113 note. upon the date of enactment of this Act; provided that this section shall not apply to cases filed under title 11 of the United States Code which were commenced prior to the date of enactment of this section. Subtitle K— Miscellaneous Sec. 551. If any provision of this title or any amendment made by Provisions held invalid. 11 USC 101 note. this title, or the application thereof to any person or circumstance is held invalid, the provisions of every other part, and their application shall not be affected thereby. Sec. 552. Notwithstanding the provisions of section 8331(22) of title 5, United States Code, or any other provision of law, for purposes of section 8339(n) of title 5, United States Code, any individual appointed under section 34 of the Bankruptcy Act who served as a United States bankruptcy judge for Ante, p. 343. the district of Oregon or for the Central district of California until March 31, 1984, shall receive an annuity computed with respect to his service as a referee in bankruptcy and as a bankruptcy judge, and his military service (not exceeding five years) creditable under section 8332 of title 5, United States Code, by multiplying 2¼ per centum of his average annual pay by the years of that service. Sec. 553. (a) Except as otherwise provided in this section the amendments made by this title shall become effective to cases filed 90 days after the date of enactment of this Act. (b) The amendments made by section 426(b) shall become effective upon the date of enactment of this Act. (c) The amendments made by subtitle J, shall become effective as provided in section 541(c).Pub. L. 98–353 title III · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(42)
Pub. L. 98–353, §§ 391(1), 421(j)(2), redesignated successively former par. (37) as (39) and again as (42)
Source evidence
Code amendment note
Par. (42). Pub. L. 98–353, §§ 391(1), 421(j)(2), redesignated successively former par. (37) as (39) and again as (42).Enacted provision · exact public law
TITLE III— AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE Subtitle A— Consumer Credit Amendments Sec. 301. Section 109 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Notwithstanding any other provision of this section, no individual may be a debtor under this title who has been a debtor in a case pending under this title at any time in the preceding 180 days if— “(1) the case was dismissed by the court for willful failure of the debtor to abide by orders of the court, or to appear before the court in proper prosecution of the case; or “(2) the debtor requested and obtained the voluntary dismissal of the case following the filing of a request for relief from the automatic stay provided by section 362 of this title.”. Sec. 302. Section 342 of title 11, United States Code, is amended— (1) by inserting “(a)” before “There shall be given”, and (2) by adding at the end thereof the following new subsection: “(b) Prior to the commencement of a case under this title by an individual whose debts are primarily consumer debts, the clerk shall give written notice to such individual that indicates each chapter of this title under which such individual may proceed.”. Sec. 303. Section 349(a) of title 11, United States Code, is amended by inserting before the period at the end thereof nor does the dismissal of a case under this title prejudice the debtor with regard to the filing of a subsequent petition under this title, except as Supra. provided in section 109(f) of this title”. Sec. 304. Section 362 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(h) An individual injured by any willful violation of a stay provided by this section shall recover actual damages, including costs and attorneys’ fees, and, in appropriate circumstances, may recover punitive damages.”. Sec. 305. Section 521 of title 11, United States Code, is amended— (1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, (2) in paragraph (1) by inserting “a schedule of current income and current expenditures,” after “liabilities,”, and (3) by inserting after paragraph (1) the following new paragraph: “(2) if an individual debtor’s schedule of assets and liabilities includes consumer debts which are secured by property of the estate— “(A) within thirty days after the date of the filing of a petition under chapter 7 of this title or on or before the date of the meeting of creditors, whichever is earlier, or within such additional time as the court, for cause, within such period fixes, the debtor shall file with the clerk a statement of his intention with respect to the retention or surrender of such property and, if applicable, specifying that such property is claimed as exempt, that the debtor intends to redeem such property, or that the debtor intends to reaffirm debts secured by such property; “(B) within forty-five days after the filing of a notice of intent under this section, or within such additional time as the court, for cause, within such forty-five day period fixes, the debtor shall perform his intention with respect to such property, as specified by subparagraph (A) of this paragraph; and “(C) nothing in subparagraphs (A) and (B) of this paragraph shall alter the debtor’s or the trustee’s rights with regard to such property under this title;”. Sec. 306. (a) Section 522(b) of title 11, United States Code, is amended by striking out “Notwithstanding” and all that follows through “either—” and inserting in lieu thereof the following: “Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (1) or, in the alternative, paragraph (2) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Bankruptcy Rules, one 11 USC app. debtor may not elect to exempt property listed in paragraph (1) and the other debtor elect to exempt property listed in paragraph (2) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (1), where such election is permitted under the law of the jurisdiction where the case is filed. Such property is—”. (b) Section 522(d)(3) of title 11, United States Code, is amended by inserting “or $4,000 in aggregate value” after “item”. (c) Section 522(d)(5) of title 11, United States Code, is amended to read as follows: “(5) The debtor’s aggregate interest in any property, not to exceed in value $400 plus up to $3,750 of any unused amount of the exemption provided under paragraph (1) of this subsection”. (d) Section 522(m) of title 11, United States Code, is amended to read as follows: “(m) Subject to the limitation in subsection (b), this section shall apply separately with respect to each debtor in a joint case.”. Sec. 307. (a) Section 523(a)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “or” at the end thereof, (2) in subparagraph (B) by inserting “or” at the end thereof, and (3) by adding at the end thereof the following new subparagraph: “(C) for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $500 for ‘luxury goods or services’ incurred by an individual debtor on or within forty days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within twenty days before the order for relief under this title, are presumed to be nondischargeable; ‘luxury goods or services’ do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.);”. (b) Section 523(d) of title 11, United States Code, is amended to read as follows: “(d) If a creditor requests a determination of dischargeability of a consumer debt under subsection (a)(2) of this section, and such debt is discharged, the court shall grant judgment in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding if the court finds that the position of the creditor was not substantially justified, except that the court shall not award such costs and fees if special circumstances would make the award unjust.”. Sec. 308. (a) Section 524(a)(2) of title 11, United States Code, is amended by striking out “or from property of the debtor,”. (b) Section 524(c) of title 11, United States Code, is amended— (1) by striking out paragraph (2), (2) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively, and (3) by inserting after paragraph (1) the following new paragraphs: “(2) such agreement contains a clear and conspicuous statement which advises the debtor that the agreement may be rescinded at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of rescission to the holder of such claim; “(3) such agreement has been filed with the court and, if applicable, accompanied by a declaration or an affidavit of the attorney that represented the debtor during the course of negotiating an agreement under this subsection, which states that such agreement— “(A) represents a fully informed and voluntary agreement by the debtor; and “(B) does not impose an undue hardship on the debtor or a dependent of the debtor; “(4) the debtor has not rescinded such agreement at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of recission to the holder of such claim;” and (4) by amending paragraph (6), as so redesignated, to read as follows: “(6) (A) in a case concerning an individual who was not represented by an attorney during the course of negotiating an agreement under this subsection, the court approves such agreement as— “(i) not imposing an undue hardship on the debtor or a dependent of the debtor; and “(ii) in the best interest of the debtor. “(B) Subparagraph (A) shall not apply to the extent that such debt is a consumer debt secured by real property.”. (c) Section 524(d)(2) of title 11, United States Code, is amended by striking out “subsection (c)(4)” and inserting in lieu thereof “subsection (c)(6)”. (e) Section 524 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Nothing contained in subsection (c) or (d) of this section prevents a debtor from voluntarily repaying any debt.”. Sec. 309. Section 525 of title 11, United States Code, is amended— (1) by inserting “(a)” before “Except”, (2) by inserting “the” before “Perishable”, and (3) by adding at the end thereof the following new subsection: Employment and unemployment. Discrimination, prohibition. 11 USC note prec. 101. “(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt— “(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act; “(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or “(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.”. Sec. 310. Section 547(c) of title 11, United States Code, is amended— (1) in paragraph (5) by striking out “or” at the end thereof, (2) in paragraph (6) by striking out the period at the end thereof and inserting in lieu thereof “; or”, and (3) by adding at the end thereof the following new paragraph: “(7) if, in a case filed by an individual debtor whose debts are primarily consumer debts, the aggregate value of all property that constitutes or is affected by such transfer is less than $600.”. Sec. 311. (a) Section 704 of title 11, United States Code, is amended— (1) by redesignating paragraphs (3), (4), (5), (6), (7), and (8) as paragraphs (4), (5), (6), (7), (8), and (9), respectively, and (2) by inserting after paragraph (2) the following new paragraph: “(3) ensure that the debtor shall perform his intention as specified in section 521(2)(B) of this title;”. Ante, p. 352. (b) (1) Section 1106(a)(1) of title 11, United States Code, is amended by striking out “704(4), 704(6), 704(7), and 704(8)” and inserting in lieu thereof “704(5), 704(7), 704(8), and 704(9)”. (2) Section 1304(c) of title 11, United States Code, is amended by striking out “section 704(7)” and inserting in lieu thereof “section 704(8)”. (3) Section 15103(f) of title 11, United States Code, is amended by striking out “704(8),” and inserting in lieu thereof “704(9),”. (4) Section 151301(b)(1) of title 11, United States Code, is amended 11 USC 151302. by striking out “and 704(8)” and inserting in lieu thereof “, 704(7), and 704(9)”. Sec. 312. Section 707 of title 11, United States Code, is amended— (1) by inserting “(a)” before “The court may” and (2) by adding at the end thereof the following new subsection: “(b) After notice and a hearing, the court, on its own motion and not at the request or suggestion of any party in interest, may dismiss a case filed by an individual debtor under this chapter whose debts are primarily consumer debts if it finds that the granting of relief would be a substantial abuse of the provisions of this chapter. There shall be a presumption in favor of granting the relief requested by the debtor.”. Sec. 313. Section 1301 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(d) Twenty days after the filing of a request under subsection (c)(2) of this section for relief from the stay provided by subsection (a) of this section, such stay is terminated with respect to the party in interest making such request, unless the debtor or any individual that is liable on such debt with the debtor files and serves upon such party in interest a written objection to the taking of the proposed action.”. Sec. 314. Section 1302(b) of title 11, United States Code, is amended— (1) by amending paragraph (1) to read as follows: “(1) perform the duties specified in sections 704(2), 704(3), 704(4), 704(5), 704(6), 704(7), and 704(9) of this title;”; (2) in paragraph (2) by striking out “and” at the end thereof, (3) in paragraph (3) by striking out the period and inserting in lieu thereof “; and”, and (4) by adding at the end thereof the following new paragraph: “(4) ensure that the debtor commences making timely payments under section 1326 of this title.”. Sec. 315. Section 1307(c) of title 11, United States Code, is amended— (1) by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), respectively, and (2) by inserting after paragraph (3) the following new paragraph: “(4) failure to commence making timely payments under section 1326 of this title;”. Sec. 316. Section 1322(b)(1) of title 11, United States Code, is amended to read as follows: “(1) designate a class or classes of unsecured claims, as provided in section 1122 of this title, but may not discriminate unfairly against any class so designated; however, such plan may treat claims for a consumer debt of the debtor if an individual is liable on such consumer debt with the debtor differently than other unsecured claims;”. Sec. 317. Section 1325 of title 11, United States Code, is amended— (1) in subsection (a) by striking out “The” and inserting in lieu thereof “Except as provided in subsection (b), the”, (2) by redesignating subsection (b) as subsection (c), and (3) by inserting after subsection (a) the following new subsection: “(b) (1) If the trustee or the holder of an allowed unsecured claim objects to the confirmation of the plan, then the court may not approve the plan unless, as of the effective date of the plan— “(A) the value of the property to be distributed under the plan on account of such claim is not less than the amount of such claim; or “(B) the plan provides that all of the debtor’s projected disposable income to be received in the three-year period beginning on the date that the first payment is due under the plan will be applied to make payments under the plan. “(2) For purposes of this subsection, disposable income’ means income which is received by the debtor and which is not reasonably necessary to be expended— “(A) for the maintenance or support of the debtor or a dependent of the debtor; or “(B) if the debtor is engaged in business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business.”. Sec. 318. (a) Section 1326 of title 11, United States Code, is amended— (1) by redesignating subsections (a) and (b) as subsections (h) and (c), respectively, and (2) by inserting before such subsections the following new subsection: “(a) (1) Unless the court orders otherwise, the debtor shall commence making the payments proposed by a plan within 30 days after the plan is filed. “(2) A payment made under this subsection shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan. If a plan is not confirmed, the trustee shall return any such payments to the debtor, after deducting any unpaid claim allowed under section 503(b) of this title.”. (b) Section 15103(f) of title 11, United States Code, is amended by striking out “1326(a),” and inserting in lieu thereof “1326(b),”. Sec. 319. Section 1329(a) of title 11, United States Code, is amended by striking out “At” and all that follows through “modified to—”, and inserting in lieu thereof the following: “At any time after confirmation but before the completion of payments under a plan, the plan may be modified, upon request of the debtor, the trustee, or the holder of an allowed unsecured claim, to—”. Sec. 320. The Supreme Court shall prescribe general rules implementing Supreme Court of U.S. 28 USC 2075 note. Ante, p. 355. the practice and procedure to be followed under section 707(b) of title 11, United States Code. Section 2075 of title 28, United States Code, shall apply with respect to the general rules prescribed under this section. Sec. 321. Rule 2002 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision: “(n) In a voluntary case commenced under the Code by an individual debtor whose debts are primarily consumer debts, the clerk, or some other person as the court may direct, shall give the trustee and all creditors notice by mail of the order for relief not more than 20 days after the entry of such order.”. Sec. 322. Official Bankruptcy Form No. 1, referred to in Rule 1002 of the Bankruptcy Rules, is amended— 11 USC app. (1) by inserting after paragraph (5) the following: “(6) [If petitioner is an individual whose debts are primarily consumer debts.] Petitioner is aware that [he or she] may proceed under chapter 7 or 13 of title 11, United States Code, 11 USC 701 et seq.. 1301 et seq. understands the relief available under each such chapter, and chooses to proceed under chapter 7 of such title. “(7) [If petitioner is an individual whose debts are primarily consumer debts and such petitioner is represented by an attorney.] A declaration or an affidavit in the form of Exhibit ‘B’ is attached to and made a part of this petition.”, and (2) by inserting after Exhibit “A” at the end thereof the following new exhibit: “Exhibit ‘B’ “[If petitioner is an individual whose debts are primarily consumer debts, this Exhibit ‘B’ shall be completed and attached to the petition pursuant to paragraph (7) thereof.] Sec. 323. Section 408(c) of the Act of November 6, 1978 (Public Law 95–598; 92 Stat. 2687(c)), as amended by the Act of November 28, 1983 (Public Law 98–166; 97 Stat. 1071), is amended by striking out “September 30, 1984” and inserting in lieu thereof “September 30, 1986”. Sec. 324. Section 1103(b) of title 11, United States Code, is amended by striking out “A person” and inserting in lieu thereof “An attorney or accountant” Subtitle B— Amendments Relating to Grain Storage Facility Bankruptcy Sec. 350. Section 507(a) of title 11, United States Code, is amended— (1) by striking out “(5) Fifth” and inserting in lieu thereof “(6) Sixth” (2) by striking out “(6) Sixth” and inserting in lieu thereof “(7) Seventh”; and (3) by adding after paragraph (4) the following: “(5) Fifth, allowed unsecured claims of persons— “(A) engaged in the production or raising of grain, as Post, p. 359. defined in section 557(b)(1) of this title, against a debtor who owns or operates a grain storage facility, as defined in section 557(b)(2) of this title, for grain or the proceeds of grain, or “(B) engaged as a United States fisherman against a debtor who has acquired fish or fish produce from a fisherman through a safe or conversion, and who is engaged in operating a fish produce storage or processing facility— but only to the extent of $2,000 for each such individual.”. Sec. 351. Section 546 of title 11, United States Code, is amended— (1) in the first sentence of subsection (c) thereof, by striking out “The” and inserting in lieu thereof “Except as provided in subsection (d) of this section, the”; and (2) by redesignating subsection (d) as subsection (e); and (3) by inserting after subsection (c) the following: In the case of a seller who is a producer of grain sold to a grain storage facility, owned or operated by the debtor, in the ordinary course of such seller’s business (as such terms are defined Post, p. 359. in section 557 of this title) or in the case of a United States fisherman who has caught fish sold to a fish processing facility owned or operated by the debtor in the ordinary course of such fisherman’s business, the rights and powers of the trustee under sections 544(a), 545, 547, and 549 of this title are subject to any statutory or common law right of such producer or fisherman to reclaim such grain or fish if the debtor has received such grain or fish while insolvent, but— “(1) such producer or fisherman may not reclaim any grain or Claims. fish unless such producer or fisherman demands, in writing, reclamation of such grain or fish before ten days after receipt thereof by the debtor; and “(2) the court may deny reclamation to such a producer or fisherman with a right of reclamation that has made such a demand only if the court secures such claim by a lien.”. Sec. 352. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 557. Expedited determination of interests in, and abandonment or other disposition of grain assets “(a) This section applies only in a case concerning a debtor that owns or operates a grain storage facility and only with respect to grain and the proceeds of grain. This section does not affect the application of any other section of this title to property other than grain and proceeds of grain. “(b) In this section— “(1) ‘grain’ means wheat, corn, flaxseed, grain sorghum, barley, oats, rye, soybeans, other dry edible beans, or rice; “(2) ‘grain storage facility’ means a site or physical structure regularly used to store grain for producers, or to store grain acquired from prodùcers for resale; and “(3) ‘producer’ means an entity which engages in the growing of grain. “(c) (1) Notwithstanding sections 362, 363, 365, and 554 of this title, on the court’s own motion the court may, and on the request of the trustee or an entity that claims an interest in grain or the proceeds of grain the court shall, expedite the procedures for the determination of interests in and the disposition of grain and the proceeds of grain, by shortening to the greatest extent feasible such time periods as are otherwise applicable for such procedures and by establishing, by order, a timetable having a duration of not to exceed 120 days for the completion of the applicable procedure specified in subsection (d) of this section. Such time periods and such timetable may be modified by the court, for cause, in accordance with subsection (f) of this section. “(2) The court shall determine the extent to which such time periods shall be shortened, based upon— “(A) any need of an entity claiming an interest in such grain or the proceeds of grain for a prompt determination of such interest; “(B) any need of such entity for a prompt disposition of such grain; “(C) the market for such grain; “(D) the conditions under which such grain is stored; “(E) the costs of continued storage or disposition of such grain; “(F) the orderly administration of the estate; “(G) the appropriate opportunity for an entity to assert an interest in such grain; and “(H) such other considerations as are relevant to the need to expedite such procedures in the case. “(d) The procedures that may be expedited under subsection (c) of this section include— “(1) the filing of and response to— “(A) a claim of ownership; “(B) a proof of claim; “(C) a request for abandonment; “(D) a request for relief from the stay of action against property under section 362(a) of this title; “(E) a request for determination of secured status; “(F) a request for determination of whether such grain or the proceeds of grain— “(i) is property of the estate; “(ii) must be turned over to the estate; or “(iii) may be used, sold, or leased; and “(G) any other request for determination of an interest in such grain or the proceeds of grain; “(2) the disposition of such grain or the proceeds of grain, before or after determination of interests in such grain or the proceeds of grain, by way of— “(A) sale of such grain; “(B) abandonment; “(C) distribution; or “(D) such other method as is equitable in the case; “(3) subject to sections 701, 702, 703, 1104, and 1302 of this title, the appointment of a trustee or examiner and the retention and compensation of any professional person required to assist with respect to matters relevant to the determination of interests in or disposition of such grain or the proceeds of grain; and “(4) the determination of any dispute concerning a matter specified in paragraph (1), (2), or (3) of this subsection. “(e) (1) Any governmental unit that has regulatory jurisdiction over the operation or liquidation of the debtor or the debtor’s business shall be given notice of any request made or order entered under subsection (c) of this section. “(2) Any such governmental unit may raise, and may appear and be heard on, any issue relating to grain or the proceeds of grain in a case in which a request is made, or an order is entered, under subsection (c) of this section. “(3) The trustee shall consult with such governmental unit before taking any action relating to the disposition of grain in the possession, custody, or control of the debtor or the estate. “(f) The court may extend the period for final disposition of grain or the proceeds of grain under this section beyond 120 days if the court finds that— “(1) the interests of justice so require in light of the complexity of the case; and “(2) the interests of those claimants entitled to distribution of grain or the proceeds of grain will not be materially injured by such additional delay. “(g) Unless an order establishing an expedited procedure under subsection (c) of this section, or determining any interest in or approving any disposition of grain or the proceeds of grain, is stayed pending appeal— “(1) the reversal or modification of such order on appeal does not affect the validity of any procedure, determination, or disposition that occurs before such reversal or modification, whether or not any entity knew of the pendency of the appeal; and “(2) neither the court nor the trustee may delay, due to the appeal of such order, any proceeding in the case in which such order is issued. “(h) (1) The trustee may recover from grain and the proceeds of grain the reasonable and necessary costs and expenses allowable under section 503(b) of this title attributable to preserving or disposing of grain or the proceeds of grain, but may not recover from such grain or the proceeds of grain any other costs or expenses. “(2) Notwithstanding section 326(a) of this title, the dollar amounts of money specified in such section include the value, as of the date of disposition, of any grain that the trustee distributes in kind. “(i) In all cases where the quantity of a specific type of grain held by a debtor operating a grain storage facility exceeds ten thousand bushels, such grain shall be sold by the trustee and the assets thereof distributed in accordance with the provisions of this section.”. (b) The table of sections of chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: ‘557 Expedited determination of interests in and disposition of grain.”. Sec. 353. Section 901(a) of title 11, United States Code, is amended by inserting “557,” after “553,”. Sec. 354. Rule 3001 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision “(g) To the extent not inconsistent with the United States Warehouse Act or applicable State law, a warehouse receipt, scale ticket, or similar document of the type routinely issued as evidence of title by a grain storage facility, as defined in section 557 of title 11, shall constitute prima facie evidence of the validity and amount of a claim of ownership of a quantity of grain ”. Subtitle C— Leasehold Management Amendments Sec. 361. This subtitle may be cited as the “Leasehold Management Bankruptcy Amendments Act of 1983”. Sec. 362. (a) Section 365 of title 11, United States Code, is amended by amending subsections (a), (b), (c), and (d) to read as follows: “(a) Except as provided in sections 765 and 766 of this title and in subsections (b), (c), and (d) of this section, the trustee, subject to the court’s approval, may assume or reject any executory contract or unexpired lease of the debtor. “(b) (1) If there has been a default in an executory contract or unexpired lease of the debtor, the trustee may not assume such contract or lease unless, at the time of assumption of such contract or lease, the trustee— “(A) cures, or provides adequate assurance that the trustee will promptly cure, such default; “(B) compensates, or provides adequate assurance that the trustee will promptly compensate, a party other than the debtor to such contract or lease, for any actual pecuniary loss to such party resulting from such default; and “(C) provides adequate assurance of future performance under such contract or lease. “(2) Paragraph (1) of this subsection does not apply to a default that is a breach of a provision relating to— “(A) the insolvency or financial condition of the debtor at any time before the closing of the case; “(B) the commencement of a case under this title; or “(C) the appointment of or taking possession by a trustee in a case under this title or a custodian before such commencement. “(3) For the purposes of paragraph (1) of this subsection and paragraph (2)(B) of subsection (t), adequate assurance of future performance of a lease of real property in a shopping center includes adequate assurance— “(A) of the source of rent and other consideration due under such lease, and in the case of an assignment, that the financial condition and operating performance of the proposed assignee and its guarantors, if any, shall be similar to the financial condition and operating performance of the debtor and its guarantors, if any, as of the time the debtor became the lessee under the lease; “(B) that any percentage rent due under such lease will not decline substantially; “(C) that assumption or assignment of such lease is subject to all the provisions thereof, including (but not limited to) provisions such as a radius, location, use, or exclusivity provision, and will not breach any such provision contained in any other lease, financing agreement, or master agreement relating to such shopping center; and “(D) that assumption or assignment of such lease will not disrupt any tenant mix or balance in such shopping center. “(4) Notwithstanding any other provision of this section, if there has been a default in an unexpired lease of the debtor, other than a default of a kind specified in paragraph (2) of this subsection, the trustee may not require a lessor to provide services or supplies incidental to such lease before assumption of such lease unless the lessor is compensated under the terms of such lease for any services and supplies provided under such lease before assumption of such lease. “(c) The trustee may not assume or assign any executory contract or unexpired lease of the debtor, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties, if— “(1) (A) applicable law excuses a party, other than the debtor, to such contract or lease from accepting performance from or rendering performance to an entity other than the debtor or the debtor in possession or an assignee of such contract or lease, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties; and “(B) such party does not consent to such assumption or assignment; or “(2) such contract is a contract to make a loan, or extend other debt financing or financial accommodations, to or for the benefit of the debtor, or to issue a security of the debtor; or “(3) such lease of nonresidential real property has been terminated under applicable nonbankruptcy law prior to the order for relief. “(d) (1) In a case under chapter 7 of this title, if the trustee does not assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor within 60 days after the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such contract or lease is deemed rejected. “(2) In a case under chapter 9, 11, or 13 of this title, the trustee 11 USC 901 et seq., 1101 et seq., 1301 et seq. may assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor at any time before the confirmation of a plan but the court, on the request of any party to such contract or lease, may order the trustee to determine within a specified period of time whether to assume or reject such contract or lease. “(3) The trustee shall timely perform all the obligations of the debtor, except those specified in section 365(b)(2), arising from and Ante, p. 361. after the order for relief under any unexpired lease of nonresidential real property, until such lease is assumed or rejected, notwithstanding section 503(b)(1) of this title. The court may extend, for cause, the time for performance of any such obligation that arises within 60 days after the date of the order for relief, but the time for performance shall not be extended beyond such 60-day period. This subsection shall not be deemed to affect the trustee’s obligations under the provisions of subsection (b) or (f) of this section. Acceptance of any such performance does not constitute waiver or relinquishment of the lessor’s rights under such lease or under this title. “(4) Notwithstanding paragraphs (1) and (2), in a case under any chapter of this title, if the trustee does not assume or reject an unexpired lease of nonresidential real property under which the debtor is the lessee within 60 days after the date of the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such lease is deemed rejected, and the trustee shall immediately surrender such nonresidential real property to the lessor.”. (b) Section 365 is further amended by adding at the end thereof the following new subsection: “(l) If an unexpired lease under which the debtor is the lessee is assigned pursuant to this section, the lessor of the property may require a deposit or other security for the performance of the debtor’s obligations under the lease substantially the same as would have been required by the landlord upon the initial leasing to a similar tenant. “(m) For purposes of this section 365 and sections 541(b)(2) and Real property. Infra. 362(b)(9), leases of real property shall include any rental agreement to use real property.”. Sec. 363. (a) Section 541(b) of title 11, United States Code, is amended to read as follows: “(b) Property of the estate does not include— “(1) any power that the debtor may exercise solely for the benefit of an entity other than the debtor; or “(2) any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease before the commencement of the case under this title, and ceases to include any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease during the case.”. (b) Section 362(b) of title 11 of the United States Code is amended by— (1) striking out “or” at the end of paragraph (7), (2) replacing the period after paragraph (8) with “; or”, and (3) adding the following after paragraph (8): “(9) under subsection (a) of this section, of any act by a lessor to the debtor under a lease of nonresidential real property that has terminated by the expiration of the stated term of the lease before the commencement of or during a case under this title to obtain possession of such property.”. Subtitle D— Amendments to Title 11, Section 523 Relating to the Discharge of Debts Incurred by Persons Driving While Intoxicated Sec. 371. Section 523(a) of title 11, United States Code, is amended by— (1) striking out “or” at the end of paragraph (8); and (2) by adding the following new paragraph after such paragraph: “(9) to any entity, to the extent that such debt arises from a judgment or consent decree entered in a court of record against the debtor wherein liability was incurred by such debtor as a result of the debtor’s operation of a motor vehicle while legally intoxicated under the laws or regulations of any jurisdiction within the United States or its territories wherein such motor vehicle was operated and within which such liability was incurred; or”. Subtitle E— Referees Salary and Expense Fund Sec. 381. This subtitle may be cited as the “Referees Salary and Expense Fund Act of 1984”. Sec. 382. Section 403(e) of the Act of November 6, 1978 (92 Stat. 2683; Public Law 95–598), is amended to read as follows: “(e) Notwithstanding subsection (a) of this section— “(1) a fee may not be charged under section 40c(2)(a) of the Bankruptcy Act in a case pending under such Act after September 30, 1979, to the extent that such fee exceeds $200,000; “(2) a fee may not be charged under section 40c(2)(b) of the Bankruptcy Act in a case in which the plan is confirmed after September 30, 1978, or in which the final determination as to the amount of such fee is made after September 30, 1979, notwithstanding an earlier confirmation date, to the extent that such fee exceeds $100,000; “(3) after September 30, 1979, all moneys collected for payment into the referees’ salary and expense fund in cases filed 11 USC note prec. 101. under the Bankruptcy Act shall be collected and paid into the general fund of the Treasury; and “(4) any balance in the referees’ salary and expense fund in the Treasury on October 1, 1979, shall be transferred to the general fund of the Treasury and the referees’ salary and expense fund account shall be closed.”. Subtitle F— Amendments Regarding Repurchase Agreements Sec. 391. Section 101 of title 11, United States Code, is amended— (1) by redesignating paragraphs (35), (36), (37), (38), (39), (40), and (41), as paragraphs (37), (38), (39), (40), (41), (42), and (43), respectively, and (2) by inserting after paragraph (34) the following new paragraphs: “(35) ‘repo participant’ means an entity that, on any day during the period beginning 90 days before the date of the filing of the petition, has an outstanding repurchase agreement with the debtor; “(36) ‘repurchase agreement’ (which definition also applies to Securities. a reverse repurchase agreement) means an agreement, including related terms, which provides for the transfer of certificates of deposit, eligible bankers’ acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, or securities with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, or securities as described above, at a date certain not later than one year after such transfers or on demand, against the transfer of funds;”. Sec. 392. Section 362(b) of title 11, United States Code, is Ante, p. 363. amended— (a) by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively, and (b) by inserting after paragraph (6) the following new paragraph: “(7) under subsection (a) of this section, of the setoff by a repo participant, of any mutual debt and claim under or in connection with repurchase agreements that constitutes the setoff of a claim against the debtor for a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, arising out of repurchase agreements against cash, securities, or other property held by or due from such repo participant to margin, guarantee, secure or settle repurchase agreements;”. Sec. 393. Section 546 of title 11, United States Code, is amended by Ante, p. 358. inserting after subsection (e), as redesignated by section 251, the following: Notwithstanding sections 544, 545, 547, 548(a)(2), and 548(b) of this title, the trustee may not avoid a transfer that is a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, made by or to a repo participant, in connection with a repurchase agreement and that is made before the commencement of the case, except under section 548(a)(1) of this title.”. Sec. 394. Section 548(d)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “and” at the end thereof; (2) in subparagraph (B) by striking out the period at the end thereof and inserting in lieu thereof “; and”; and by inserting after paragraph (B) the following new subparagraph: “(C) a repo participant that receives a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, in connection with a repurchase agreement, takes for value to the extent of such payment.”. Sec. 395. Section 553(b)(1) of title 11, United States Code, is amended by inserting “, 362(b)(7),” after “362(b)(6)”. Sec. 396. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 559. Contractual right to liquidate a repurchase agreement “The exercise of a contractual right of a repo participant to cause the liquidation of a repurchase agreement because of a condition of the kind specified in section 365(e)(1) of this title shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title, unless, where the debtor is a stockbroker or securities clearing agency, such order is authorized under the provisions of the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) or any statute administered by the Securities and Exchange Commission. In the event that a repo participant liquidates one or more repurchase agreements with a debtor and under the terms of one or more such agreements has agreed to deliver assets subject to repurchase agreements to the debtor, any excess of the market prices received on liquidation of such assets (or if any such assets are not disposed of on the date of liquidation of such repurchase agreements, at the prices available at the time of liquidation of such repurchase agreements from a generally recognized source or the most recent closing bid quotation from such a source) over the sum of the stated repurchase prices and all expenses in connection with the liquidation of such repurchase agreements shall be deemed property of the estate, subject to the available rights of setoff. As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw, applicable to each party to the repurchase agreement, of a national securities exchange, a national securities association, or a securities clearing agency, and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal business practice.”. (b) The analysis of sections for chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: “559. Contractual right to liquidate a repurchase agreement.”. Subtitle G— Amendments to Title 11, Section 365 of the United States Code to Provide Adequate Protection for Timeshare Consumers Sec. 401. Title 11, United States Code, section 101 is hereby amended by— (1) redesignating paragraph (43), as redesignated by section Ante, p. 364. Real property. 391, as paragraph (44); and (2) adding the following paragraph after paragraph (42), as redesignated in section 391: “(43) ‘timeshare plan’ means and shall include that interest purchased in any arrangement, plan, scheme, or similar device, but not including exchange programs, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, right to use agreement, or by any other means, whereby a purchaser, in exchange for consideration, receives a right to use accommodations, facilities, or recreational sites, whether improved or unimproved, for a specific period of time less than a full year during any given year, but not necessarily for consecutive years, and which extends for a period of more than three years. A ‘timeshare interest’ is that interest purchased in a timeshare plan which grants the purchaser the right to use and occupy accommodations, facilities, or recreational sites, whether improved or unimproved, pursuant to a timeshare plan.”. Sec. 402. Section 365(h)(1) of title 11, United States Code, is Real property. amended to read as follows: “(h) (1) If the trustee rejects an unexpired lease of real property of the debtor under which the debtor is the lessor, or a timeshare interest under a timeshare plan under which the debtor is the timeshare interest seller, the lessee or timeshare interest purchaser under such lease or timeshare plan may treat such lease or time-share plan as terminated by such rejection, where the disaffirmance by the trustee amounts to such a breach as would entitle the lessee or timeshare interest purchaser to treat such lease as terminated by virtue of its own terms, applicable nonbankruptcy law, or other agreements the lessee or timeshare interest purchaser has made with other parties; or, in the alternative, the lessee or timeshare interest purchaser may remain in possession of the leasehold or timeshare interest under any lease or timeshare plan the term of which has commenced for the balance of such term and for any renewal or extension of such term that is enforceable by such lessee or timeshare interest purchaser under applicable nonbankruptcy law.”. Sec. 403. Section 365(h)(2) of title 11, United States Code, is Real property. amended to read as follows: “(2) If such lessee or timeshare interest purchaser remains in possession as provided in paragraph (1) of this subsection, such lessee or timeshare interest purchaser may offset against the rent reserved under such lease or moneys due for such timeshare interest for the balance of the term after the date of the rejection of such lease or timeshare interest, and any such renewal or extension thereof, any damages occurring after such date caused by the non-performance of any obligation of the debtor under such lease or timeshare plan after such date, but such lessee or timeshare interest purchaser does not have any rights against the estate on account of any damages arising after such date from such rejection, other than such offset.”. Sec. 404. Section 365(i)(1) of title 11, United States Code, is Real property. amended to read as follows: “(i) (1) If the trustee rejects an executory contract of the debtor for the sale of real property or for the sale of a timeshare interest under a timeshare plan, under which the purchaser is in possession, such purchaser may treat such contract as terminated, or, in the alternative, may remain in possession of such real property or timeshare interest.”. Subtitle H— Miscellaneous Amendments to Title 11 Sec. 421. (a) Section 101(2)(D) of title 11 of the United States Code is amended by striking out “or all” after “business”. (b) Section 101(8)(B) of title 11 of the United States Code is amended by striking out the colon at the end thereof and inserting in lieu thereof a semicolon. (c) Section 101(9)(B) of title 11 of the United States Code is amended by inserting “348(d),” after “section”. (d) Section 101(14) of title 11 of the United States Code is amended by inserting “and” after “trust,”. (e) Section 101(24) of title 11 of the United States Code is amended by striking out “stock broker” and inserting in lieu thereof “stockbroker” (f) Section 101(26)(B)(ii) of title 11 of the United States Code is amended by— (1) striking out “separate” each place it appears and inserting in lieu thereof “nonpartnership”; and (2) striking out “(A)(ii) and inserting in lieu thereof “(A)”, (g) Section 101(30) of title 11 of the United States Code is amended to read as follows: (30) “person” includes individual, partnership, and corporation, but does not include governmental unit, Provided, however, That any governmental unit that acquires an asset from a person as a result of operation of a loan guarantee agreement, or as receiver or liquidating agent of a person, will be considered a person for purposes of section 1102 of this title. (h) Section 101(38)(B)(vi) of title 11 of the United States Code, as Ante, p. 364. redesignated by section 391 of this Act, is amended by— (1) striking out “certificate specified in clause (xii) of subparagraph (A)” and inserting in lieu thereof “certificate of a kind specified in subparagraph (A)(xii)”; and (2) striking out “the subject of such a registration statement” and inserting in lieu thereof “required to be the subject of a registration statement”. (i) Section 101(44) of title 11 of the United States Code, as so redesignated, is amended by striking out the period and inserting in lieu thereof “and foreclosure of the debtor’s equity of redemption; and”. (j) Section 101 of title 11 of the United States Code is amended— (1) by redesignating paragraphs (41) through (44), as previously redesignated, as paragraphs (45) through (48); (2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively; (3) by redesignating paragraphs (19) and (20) as paragraphs (20) and (21), respectively; (4) by inserting after paragraph (18) the following: “(19) ‘financial institution’ means a person that is a commercial or savings bank, industrial savings bank, savings and loan association, or trust company and, when any such person is acting as agent or custodian for a customer in connection with a securities contract, as defined in section Post, p. 382. 741(7) of this title, such customer;”; (5) by inserting after paragraph (21) as redesignated herein the following: “(22) ‘forward contract’ means a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity, or product or byproduct thereof, with a maturity date more than two days after the date the contract is entered into; “(23) ‘forward contract merchant’ means a person whose business consists in whole or in part of entering into forward contracts as or with merchants in commodities;”; (6) by inserting after paragraph (43) the following: “(44) ‘State’ includes the District of Columbia and Puerto Rico, except for the purpose of defining who may be a debtor under chapter 9 of this title;”; and 11 USC 901 el seq. (7) by inserting after paragraph (48) the following: “(49) ‘United States’, when used in a geographical sense, includes all locations where the judicial jurisdiction of the United States extends, including territories and possessions of the United States;”. Sec. 422. Section 102 of title 11 of the United States Code is amended by striking out “continued” and inserting in lieu thereof “contained” in paragraph (8). Sec. 423. Section 103(c) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stockbroker”. Sec. 424. (a) Subsections (a)(1), (b)(1), and (c)(1) of section 108 of title 11 of the United States Code are each amended by striking out “and” each place it appears and inserting in lieu thereof “or”. (b) Subsections (a), (b), and (c) of section 108 of title 11 of the United States Code are each amended by inserting “nonbankruptcy” after “applicable” and after “entered in a” each place such terms appear. Sec. 425. (a) Section 109 of title 11 of the United States Code, is amended by striking out “in the United States,” the first place it appears. (b) Section 109(c)(5)(D) of title 11 of the United States Code of this Act is amended by striking out “preference” and inserting in lieu thereof “transfer that is avoidable under section 547 of this title”. (c) Section 109(d) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stock-broker”. Sec. 426. (a) Section 303(b) of title 11 of the United States Code is amended by inserting “against a person” after “involuntary case”. (b) Section 303 of title 11 of the United States Code, is amended— (1) in subsection (b)(1) by inserting “or the subject on a bona fide dispute,” after “liability”; and (2) in subsection (h)(1) by inserting “unless such debts that are the subject of a bona fide dispute” after “due”. Sec. 427. Section 303(j)(2) of title 11 of the United States Code is amended by striking out “debtors” and inserting in lieu thereof “debtor”. Sec. 428. Section 321(b) of title 11 of the United States Code is amended by striking out “a case” and inserting in lieu thereof “the case”. Sec. 429. Section 322(b)(1) of title 11 of the United States Code is amended by inserting “required to be” after “bond”. Sec. 430. (a) Section 326(a) of title 11 of the United States Code is amended by striking out all the language beginning with “three percent” through “$50,000” the second place the latter appears and inserting in lieu thereof “and three percent on any amount in excess of $3,000”. (b) Section 326(d) of title 11 of the United States Code is amended to read as follows: “(d) The court may deny allowance of compensation for services or reimbursement of expenses of the trustee if the trustee failed to make diligent inquiry into facts that would permit denial of allowance under section 328(c) of this title or, with knowledge of such facts, employed a professional person under section 327 of this title.”. (c) Section 327(c) of title 11 of the United States Code is amended to read as follows: “(c) In a case under chapter 7 or 11 of this title, a person is not disqualified for employment under this section solely because of such person’s employment by or representation of a creditor, unless there is objection by another creditor, in which case the court shall disapprove such employment if there is an actual conflict of interest.”. Sec. 431. Section 328(a) of title 11 of the United States Code is amended by striking out “unanticipatable” and inserting in lieu thereof “not capable of being anticipated”. Sec. 432. (a) Section 329(a) of title 11 of the United States Code is amended by striking out “and” the first place it appears and inserting in lieu thereof “or”. (b) Section 329(b)(1) of title 11 of the United States Code is amended by striking out “trustee” and inserting in lieu thereof “estate” Sec. 433. Section 330(a) of title 11 of the United States Code is amended— (1) by striking out “to any parties in interest and to the United States trustee”; and (2) in paragraph (1), by striking out “time, the nature, the extent, and the value of such services” and inserting in lieu thereof “nature, the extent, and the value of such services, the time spent on such services”. Sec. 434. (a) Section 330(b) of title 11 of the United States Code is amended by striking out “$20” and inserting in lieu thereof “$45”. (b) Section 330 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(c) Unless the court orders otherwise, in a case under chapter 13 11 USC 1301 et seq. of this title the compensation paid to the trustee serving in the case shall not be less than $5 per month from any distribution under the plan during the administration of the plan.”. Sec. 435. Section 342 of title 11 of the United States Code as Ante, p. 352. amended by section 302 is further amended by amending subsection (a) to read as follows: “(a) There shall be given such notice as is appropriate, including notice to any holder of a community claim, of an order for relief in a case under this title.”. Sec. 436. Section 343 of title 11 of the United States Code is amended by striking out “examiner” the last place it appears and inserting in lieu thereof “examine”. Sec. 437. Section 345 of title 11 of the United States Code is amended by adding at the end thereof a new subsection (c) as follows: “(c) An entity with which such moneys are deposited or invested is authorized to deposit or invest such moneys as may be required under this section”. Sec. 438. Section 346(c)(2) of title 11 of the United States Code is amended by striking out “operation” and inserting in lieu thereof “corporation”. Sec. 439. Section 350(b) of title 11 of the United States Code is amended by striking out “a” and inserting in lieu thereof “A”. Sec. 440. Section 361(1) of title 11 of the United States Code is amended by inserting “a cash payment or” after “make ”. Sec. 441. (a) Section 362(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “action or” after “other”; and (2) in paragraph (3), by inserting “or to exercise control over property of the estate” after “estate” the second place it appears. (b) Section 362(b) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting “or to the extent that such act is accomplished within the period provided under section 547(e)(2)(A) of this title” after “title”; (2) in paragraph (6), by— (A) inserting “or due from” after “held by”; and (B) striking out “or secure commodity contracts” and inserting in lieu thereof “secure, or settle commodity contracts”, and by inserting “financial institution,” after “stockbroker” each time it appears. (3) in paragraph (8) as redesignated by section 392, by— Ante, p. 365. (A) striking out “said” and inserting in lieu thereof “the”; and (B) striking out “or” the last place it appears; (4) in paragraph (9) as redesignated by section 392, by striking out the period and inserting in lieu thereof a semicolon; and (5) by adding after paragraph (9) the following new paragraph: “(10) under subsection (a) of this section, of the presentment of a negotiable instrument and the giving of notice of and protesting dishonor of such an instrument.”. (c) Section 362(c)(2)(B) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. (d) Section 362(d)(2) of title 11 of the United States Code is amended by inserting “under subsection (a) of this section” after “property” the first place it appears. (e) Section 362(e) of title 11 of the United States Code is amended— (1) in the first sentence by inserting “the conclusion of” after “pending”; and (2) by striking out the last sentence and inserting in lieu thereof the following: “The court shall order such stay continued in effect pending the conclusion of the final hearing under subsection (d) of this section if there is a reasonable likelihood that the party opposing relief from such stay will prevail at the conclusion of such final hearing. If the nearing under this subsection is a preliminary hearing, then such final hearing shall be commenced not later than thirty days after the conclusion of such preliminary hearing.”. (f) Section 362(f) of title 11 of the United States Code is amended by— (1) striking out “The” and inserting in lieu thereof “Upon request of a party in interest, the”; and (2) inserting “with or” after “court,”. Sec. 442. (a) Section 363(a) of title 11 of the United States Code is amended by— (1) inserting “whenever acquired” after “equivalents”; and (2) inserting “and includes the proceeds, products, offspring, rents, or profits of property subject to a security interest as provided in section 552(b) of this title, whether existing before or after the commencement of a case under this title” after “interest”. (b) Section 363(b) of title 11 of the United States Code is amended by— (1) striking out “(b)” and inserting in lieu thereof “(b)(1)”; and (2) adding at the end thereof the following new paragraph: “(2) If notification is required under subsection (a) of section 7 A of the Clayton Act (15 U.S.C. 18a) in the case of a transaction under this subsection, then— “(A) notwithstanding subsection (a) of such section, such notification shall be given by the trustee; and “(B) notwithstanding subsection (b) of such section, the required waiting period shall end on the tenth day after the date of the receipt of such notification, unless the court, after notice and hearing, orders otherwise.”. (c) Section 363(e) of title 11 of the United States Code is amended by— (1) inserting “, with or without a hearing,” after “court”; and (2) striking out the last sentence. (d) Section 363(f)(3) of title 11 of the United States Code is amended by striking out “such interest” the second place it appears and inserting in lieu thereof “all liens on such property”. (e) Section 363(h) of title 11 of the United States Code is amended by striking out “immediately before” and inserting in lieu thereof “at the time of”. (f) Section 363(i) of title 11 of the United States Code is amended by striking out “compenation” and inserting in lieu thereof “compensation”. (g) Section 363(k) of title 11 of the United States Code is amended by striking out “if the holder” and inserting in lieu thereof “unless the court for cause orders otherwise the holder of such claim may bid at such sale, and, if the holder”. (h) Section 363(1) of title 11 of the United States Code is amended by— (1) striking out “The trustee” and inserting in lieu thereof “Subject to the provisions of section 365, the trustee”; (2) striking out “conditions” and inserting in lieu thereof “condition”; (3) striking out “a taking” and inserting in lieu thereof “or the taking”; and (4) striking out “interests” and inserting in lieu thereof “interest”. (i) Section 363(n) of title 11 of the United States Code is amended by— (1) striking out “void” and inserting in lieu thereof “avoid”; (2) striking out “voiding” and inserting in lieu thereof “avoiding”; and (3) amending the last sentence to read as follows: “In addition to any recovery under the preceding sentence, the court may grant judgment for punitive damages in favor of the estate and against any such party that entered into such an agreement in willful disregard of this subsection.”. (j) Section 363 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(o) In any hearing under this section— “(1) the trustee has the burden of proof on the issue of adequate protection; and “(2) the entity asserting an interest in property has the burden of proof on the issue of the validity, priority, or extent of such interest.”. Sec. 443. Section 366(a) of title 11 of the United States Code is amended by inserting “of the commencement of a case under this title or” after “basis”. Sec. 444. Section 501(d) of title 11 of the United States Code is amended by inserting “502(e)(2),” before “502(f)”. Sec. 445. (a) Section 502(a) of title 11 of the United States Code is amended by inserting “general” before “partner”. (b) Section 502(b) of title 11 of the United States Code is amended— (1) by inserting “(e)(2),” after “subsections”; (2) by inserting “in lawful currency of the United States” after “claim” the second place it appears; (3) in paragraph (1), by striking out “, and unenforceable against” and inserting in lieu thereof “and”; (4) by striking out paragraph (3) and redesignating paragraphs (4), (5), (6), (7), (8), and (9) as paragraphs (3), (4), (5), (6), (7), and (8), respectively; (5) in paragraph (3), as redesignated by paragraph (5), by inserting “the” after “exceeds”; (6) in paragraph (5), as redesignated by paragraph (5), by— (A) striking out “the claim” and inserting in lieu thereof “such claim”, and (B) striking out the comma after “petition”; and (7) in paragraph (7), as redesignated by paragraph (5), by— (A) inserting “the claim of an employee” before “for damages”; (B) striking out “and” in subparagraph (A)(i) and inserting in lieu thereof “or”; (C) striking out “the” the first place it appears in subparagraph (B) and inserting in lieu thereof “any”; and (D) inserting a comma after “such contract” in subparagraph (B). (c) Section 502(c) of title 11 of the United States Code is amended— (1) in paragraph (1) by— (A) inserting “the” before “fixing”; and (B) striking out “closing” and inserting in lieu thereof “administration”; and (2) in paragraph (2), by— (A) inserting “right to payment arising from a” after “any”; and (B) striking out “if such breach gives rise to a right to payment”. (d) Section 502(e)(1) of title 11, United States Code, is amended— (1) by striking out “and (b)” and inserting in lieu thereof “, (b), and (c)”; and (2) by striking out the commas before and after “or has secured”; (3) in subparagraph (B), by inserting “or disallowance” after “allowance”; and (4) in subparagraph (C), by— (A) striking out “requests subrogation” and inserting in lieu thereof “asserts a right of subrogation to the rights of such creditor”; and (B) striking out “to the rights of such creditor”. (e) Section 502(h) of title 11 of the United States Code is amended by striking out “522(i)” and inserting in lieu thereof “522”. (f) Section 502(j) of title 11 of the United States Code is amended to read as follows: “(j) A claim that has been allowed or disallowed may be reconsidered for cause. A reconsidered claim may be allowed or disallowed according to the equities of the case. Reconsideration of a claim under this subsection does not affect the validity of any payment or transfer from the estate made to a holder of an allowed claim on account of such allowed claim that is not reconsidered, but if a reconsidered claim is allowed and is of the same class as such holder’s claim, such holder may not receive any additional payment or transfer from the estate on account of such holder’s allowed claim until the holder of such reconsidered and allowed claim receives payment on account of such claim proportionate in value to that already received by such other holder. This subsection does not alter or modify the trustee’s right to recover from a creditor any excess payment or transfer made to such creditor.”. Sec. 446. Section 503(b) of title 11 of the United States Code is amended— (1) by striking out the comma after “be allowed”; (2) in paragraph (1)(C), by striking out the comma after “credit”; (3) in paragraph (2), by inserting “(a)” after “330”; (4) in paragraph (3), by inserting a comma after “paragraph (4) of this subsection”; (5) in paragraph (3)(C), by striking out the comma after “case”; (6) in paragraph (5), by striking out “and” after the semicolon; and (7) in paragraph (6), by striking out the period and inserting in lieu thereof “; and”. Sec. 447. Section 505(a) of title 11 of the United States Code is amended in paragraph (2)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 448. (a) Section 506(b) of title 11 of the United States Code is amended by inserting “for” after “provided”. (b) Paragraphs (1) and (2) of section 506(d) of title 11 of the United States Code are amended to read as follows: “(1) such claim was disallowed only under section 502(b)(5) or 502(e) of this title; or “(2) such claim is not an allowed secured claim due only to the failure of any entity to file a proof of such claim under section 501 of this title.”. Sec. 449. (a) Section 507(a) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting a comma after “severance”: (2) in paragraph (4), by striking out “employee benefit plans” and inserting in lieu thereof “an employee benefit plan”; (3) in paragraph (4)(B)(i), by inserting “each” after “covered by”; and (4) in paragraph (7) as redesignated by section 350 by inserting “only” after “units,”. (b) Section 507(c) of title 11 of the United States Code is amended by striking out “shall be treated the same” and inserting in lieu thereof “has the same priority”. Sec. 450. (a) Section 509(a) of title 11 of the United States Code is amended by— (1) striking out “subsections (b) and” and inserting in lieu thereof “subsection (b) or”; and (2) inserting “against the debtor” after “a creditor”. (b) Section 509(b)(1) of title 11 of the United States Code is amended by striking out “of a” and inserting in lieu thereof “of such”. (c) Section 509(c) of title 11 of the United States Code is amended by striking out “section 509 of this title” and inserting in lieu thereof “this section”. Sec. 451. Section 510(b) of title 11 of the United States Code is Claims. amended to read as follows: “(b) For the purpose of distribution under this title, a claim arising from rescission of a purchase or sale of a security of the debtor or of an affiliate of the debtor, for damages arising from the purchase or sale of such a security, or for reimbursement or contribution allowed under section 502 on account of such a claim, shall be subordinated to all claims or interests that are senior to or equal the claim or interest represented by such security, except that if such security is common stock, such claim has the same priority as common stock.”. Sec. 452. Section 521(3) of title 11 of the United States Code, as redesignated in section 305, is amended by inserting “, whether or Ante, p. 352. not immunity is granted under section 344 of this title” after “estate” the second place it appears. Sec. 453. (a) Section 522(a)(2) of title 11 of the United States Code is amended by inserting “or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate” after “petition”. (b) Section 522(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the case is dismissed, property exempted under this section is not liable during or after the case for any debt of the debtor that arose, or that is determined under section 502 of this title as if such debt had arisen, before the commencement of the case, except— “(1) a debt of a kind specified in section 523(a)(1) or 523(a)(5) of this title; or “(2) a debt secured by a lien that is— “(A) (i) not avoided under subsection (f) or (g) of this section or under section 544, 545, 547, 548, 549, or 724(a) of this title; and “(ii) not void under section 506(d) of this title; or Ante, p. 374. “(B) a tax lien, notice of which is properly filed.”. (c) Section 522(e) of title 11 of the United States Code is amended by striking out “exemptions” and inserting in lieu thereof “an exemption”. Sec. 454. (a) Section 523(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by— (A) striking out “obtaining” each place it appears; and (B) striking out “refinance of credit,” and inserting in lieu thereof “refinancing of credit, to the extent obtained”; and (2) by striking out “of higher education” in paragraph (8). (b) Section 523(a)(5) of title 11, United States Code, is amended by— (1) amending the first paragraph thereof by inserting the words “or other order of a court of record” after the words “divorce decree,”; and (2) inserting “, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State” after “Social Security Act”. (c) Section 523(c) of title 11 of the United States Code is amended by inserting “of a kind” after “debt” the first time it appears. Sec. 455. Section 524(a) of title 11 of the United States Code is amended by striking out “any act” each place it appears and inserting in lieu thereof “an act”. Sec. 456. (a) Section 541(a) of title 11 of the United States Code is amended— (1) by striking out “under” the second time it appears; (2) by inserting “and by whomever held” after “located”; (3) in paragraph (3), by inserting “329(b), 363(n),” after “section”; (4) in paragraph (5), by striking out “An” and inserting in lieu thereof “Any”; and (5) in paragraph (6), by striking out “and” and inserting in lieu thereof “or”. (b) Section 541(c) of title 11 of the United States Code is amended— (1) by inserting “in an agreement, transfer instrument, or applicable nonbankruptcy law” after “provision”; and (2) in paragraph (1)(B), by— (A) striking out “the taking” and inserting in lieu thereof “taking”; and (B) inserting “before such commencement” after “custodian”. (c) Section 541(d) of title 11 of the United States Code is amended by inserting “(1) or (2)” after “(a)”. (d) Section 541(e) of title 11 of the United States Code is repealed. Sec. 457. Section 542(e) of title 11 of the United States Code is amended by inserting “to turn over or” before “disclose”. Sec. 458. (a) Section 543(a) of title 11 of the United States Code is amended by inserting “, product, offspring, rents, or profits” after “proceeds”. (b) Section 543(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by— (A) inserting “held by or” after “debtor”; and (B) inserting “, product, offspring, rents, or profits” after “proceeds”; and (2) in paragraph (2), by inserting “, product, offspring, rents, or profits” after “proceeds”. (c) Section 543(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “or proceeds, product, off-spring, rents, or profits of such property” after “property”; and (2) in paragraph (3), by inserting “that has been” before “approved”. (d) Section 543(d) of title 11 of the United States Code is amended to read as follows: “(d) After notice and hearing, the bankruptcy court— “(1) may excuse compliance with subsection (a), (b), or (c) of this section, if the interests of creditors and, if the debtor is not insolvent, of equity security holders would be better served by permitting a custodian to continue in possession, custody, or control of such property, and “(2) shall excuse compliance with subsections (a) and (b)(1) of this section if the custodian is an assignee for the benefit of the debtor’s creditors that was appointed or took possession more than 120 days before the date of the filing of the petition, unless compliance with such subsections is necessary to prevent fraud or injustice.”. Sec. 459. Section 544(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “such” after “obtained”; (2) in paragraph (2), by striking out “; and” and inserting in lieu thereof “, or”; and (3) in paragraph (3), by— (A) inserting “, other than fixtures,” after “property”; and (B) inserting “and has perfected such transfer” after “purchaser” the second place it appears. Sec. 460. Section 545 of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by striking out “is” the first time it appears; (2) in paragraph (1)(C), by striking out “apponted” and inserting in lieu thereof appointed or authorized to take”; and (3) in paragraph (2), by striking out “on the date of of the filing the petition” each place it appears and inserting in lieu thereof “at the time of the commencement of the case”. Sec. 461. (a) Section 546(a) of title 11 of the United States Code is amended in paragraph (1) by striking out “and” and inserting in lieu thereof “or”. (b) Section 546(b) of title 11 of the United States Code is amended by striking out “the trustee under section 544, 545, or” and inserting in lieu thereof “a trustee under sections 544, 545, and”. (c) Section 546(c) of title 11 of the United States Code is amended— (1) by striking out “the trustee” and inserting in lieu thereof “a trustee”; (2) by striking out “right” the first place it appears; (3) by inserting “of goods that has sold goods to the debtor” after “seller” the first place it appears; (4) by striking out “of goods to the debtor” after “business,”; and (5) in paragraph (2), by— (A) inserting “the” after “if’; and (B) striking out “an administrative expense” and inserting in lieu thereof “a claim of a kind specified in section 503(b) of this title” (d) Section 546(e) of title 11 of the United States Code, as redesignated by section 351, is amended by inserting “financial institution” after “stockbroker”. Sec. 462. (a) Section 547(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “including proceeds of such property,” after “law,”; and (2) in paragraph (4), by— (A) striking out “, without penalty”; and (B) inserting “without penalty” after “payable”. (b) Section 547(b) of title 11 of the United States Code is amended— (1) by striking out “of property of the debtor” and inserting in lieu thereof “of an interest of the debtor in property”; and (2) in paragraph (4) by amending subparagraph (B) to read as follows: “(B) between ninety days and one year before the date of the Tiling of the petition, if such creditor at the time of such transfer was an insider;”. (c) Section 547 of title 11 of the United States Code is amended in subsection (c)(2) thereof by striking out subparagraph (B) of such subsection, and by redesignating subparagraphs (C) and (D) thereof as subparagraphs (B) and (C), respectively. (d) Section 547(c) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by inserting “by the debtor” after “incurred”; (2) in paragraph (3), by striking out “of” the first place it appears and inserting in lieu thereof “that creates”; (3) in paragraph (3)(B), by— (A) inserting “on or after “perfected”; and (B) striking out “such security interest attaches” and inserting in lieu thereof “the debtor receives possession of such property”; (4) in paragraph (5), by— (A) striking out “of” the first place it appears and inserting in lieu thereof “that creates”; and (B) striking out “all security interest” and inserting in lieu thereof “all security interests”; and (5) in paragraph (5)(A)(ii), by striking out “and” and inserting in lieu thereof “or”. (e) Section 547(d) of title 11 of the United States Code is amended by— (1) striking out “A” and inserting in lieu thereof “The”; (2) inserting “an interest in” after “transfer of’: (3) inserting “to or for the benefit of a surety” after “transferred”; and (4) inserting “such” after “reimbursement of’. (f) Section 547(e) of title 11 of the United States Code is amended in paragraph (2)(C)(i), by striking out “and” and inserting in lieu thereof “or”. (g) Section 547 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(g) For the purposes of this section, the trustee has the burden of proving the avoidability of a transfer under subsection (b) of this section, and the creditor or party in interest against whom recovery or avoidance is sought has the burden of proving the nonavoidability of a transfer under subsection (c) of this section.”. Sec. 463. (a) Section 548(a) of title 11 of the United States Code is amended— (1) by striking out “if the debtor” and inserting in lieu thereof “if the debtor voluntarily or involuntarily”; (2) in paragraph (1), by striking out “occurred” and inserting in lieu thereof “was made”; and (3) in paragraph (2)(B)(ii), by inserting “or a transaction” after “engaged in business”. (b) Section 548(c) of title 11 of the United States Code is amended by— (1) inserting “or may retain” after “lien on”; and (2) striking out “, may retain any lien transferred,”. (c) (1) Section 548(d)(1) of title 11 of the United States Code is amended by— (A) striking out “becomes so far” and inserting in lieu thereof “is so”; (B) striking out “such transfer could have been” and inserting in lieu thereof “applicable law permits such transfer to be”; and (C) striking out “occurs” and inserting in lieu thereof “is made”. (2) Section 548(d)(2)(B) of title 11 is amended by inserting “financial institution,” after “stockbroker”. Sec. 464. (a) Section 549(a) of title 11 of the United States Code is amended— (1) by striking out “(b) and (c)” and inserting in lieu thereof “(b) or (c)”; and (2) in paragraph (2)(A), by inserting “only” after “authorized”. (3) striking out “that occurs” and inserting in lieu thereof “made”; (4) striking out “is valid against the trustee to the extent of’ and inserting in lieu thereof “to the extent”; and (5) inserting “is” before “given”. (c) Section 549(c) of title 11 of the United States Code is amended Real property. to read as follows: “(c) The trustee may not avoid under subsection (a) of this section a transfer of real property to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value unless a copy or notice of the petition was filed, where a transfer of such real property may be recorded to perfect such transfer, before such transfer is so perfected that a bona fide purchaser of such property, against whom applicable law permits such transfer to be perfected, could not acquire an interest that is superior to the interest of such good faith purchaser. A good faith purchaser without knowledge of the commencement of the case and for less than present fair equivalent value has a lien on the property transferred to the extent of any present value given, unless a copy or notice of the petition was so filed before such transfer was so perfected”. (d) Section 549(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 465. (a) Section 550(a) of title 11 of the United States Code is amended by striking out “549, or 724(a) of this title” and inserting in lieu thereof “549, 553(b), or 724(a) of this title”. (b) Section 550(d) of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by inserting “or accruing to” after “by”; (2) in paragraph (1)(B), by striking out “value” and inserting in lieu thereof “the value of such property”; (3) in paragraph (2), by striking out subparagraphs (D) and (E) and inserting in lieu thereof the following: “(D) payment of any debt secured by a lien on such property that is superior or equal to the rights of the trustee; and”, and (4) in paragraph (2), by redesignating subparagraph (F) as subparagraph (E). (c) Section 550(e)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 466. Section 552(b) of title 11 of the United States Code is amended by— (1) inserting “522,” after “506(c),”; (2) striking out “a secured party enter” and inserting in lieu thereof “an entity entered”; and (3) striking out “except to the extent” and inserting in lieu thereof “except to any extent”. Sec. 467. Section 553(b)(1) of title 11 of the United States Code is amended by striking out “or 365(h)(1)” and inserting in lieu thereof “, 365(h)(2), or 365(i)(2)”. Sec. 468. (a) Subsections (a) and (b) of section 554 of title 11 of the United States Code are each amended by inserting “and benefit” after “value”. (b) Section 554(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the court orders otherwise, any property scheduled under section 521(a)(1) of this title not otherwise administered at the time of the closing of a case is abandoned to the debtor and administered for purposes of section 350 of this title.”. (c) Section 554(d) of title 11 of the United States Code is amended by striking out “section (a) or (b) of”. Sec. 469. Section 555 of title 11 of the United States Code is amended by inserting “, financial institution,” after “stockbroker”. Sec. 470. (a) Chapter 5 of title 11 of the United States Code as amended by section 352 is amended by adding at the end thereof the following new section: “§ 558. Defenses of the estate “The estate shall have the benefit of any defense available to the debtor as against any entity other than the estate, including statutes of limitation, statutes of frauds, usury, and other personal defenses. A waiver of any such defense by the debtor after the commencement of the case does not bind the estate.”. (b) The table of sections for chapter 5 of title 11 of the United States Code is amended by adding at the end thereof the following new item: “558. Defenses of the estate.”. Sec. 471. The table of sections for chapter 7 of title 11 of the United States Code is amended by striking out “Succesor” in the item relating to section 703 and inserting in lieu thereof “Succcssor” Sec. 472. (a) Section 702(b) of title 11 of the United States Code is amended by inserting “held” after “meeting of creditors”. (b) Section 702(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “of a kind” after “claims”; and (2) in paragraph (2), by inserting “a” after “for”. (c) Section 702(d) of title 11 of the United States Code is amended by striking out “subsection (c) of”. Sec. 473. Section 703(b) of title 11 of the United States Code is amended by striking out “specified in section 701(a) of this title. Sections 701(b) and 701(c) of this title apply to such interim trustee” and inserting in lieu thereof “and subject to the provisions of section 701 of this title”. Sec. 474. Section 704 of title 11 of the United States Code as amended by section 311 is amended in paragraph (1), by striking out Ante, p. 355. “up”. Sec. 475. Paragraphs (1) and (2) of section 707 of title 11 of the United States Code are each amended by striking out “and” and inserting in lieu thereof “or”. Sec. 476. (a) Section 723(a) of title 11 of the United States Code is amended by striking out all after “claims” and inserting in lie thereof “which are allowed in a case under this chapter concerning a partnership and with respect to which a general partner of the partnership is personally liable, the trustee shall have a claim against such general partner for the full amount of the deficiency”. (b) Section 723(c) of title 11 of the United States Code is amended by— (1) striking out “such case” each place it appears and inserting in lieu thereof “such partner’s case”; (2) striking out “be property” and inserting in lieu thereof “by property”; and (3) striking out “the kind” and inserting in lieu thereof “a kind”. Sec. 477. (a) Section 724(b) of title 11 of the United States Code is amended— (1) by striking out “taxes” and inserting in lieu thereof “a tax”; (2) in paragraph (2), by— (A) striking out “claims” and inserting in lieu thereof “any holder of a claim of a kind”; (B) striking out “sections” and inserting in lieu thereof “section”; and (C) striking out “and” and inserting in lieu thereof “or”; and (3) in paragraph (3), by inserting “tax” after “allowed”. (b) Section 724(c) of title 11 of the United States Code is amended by— (1) striking out “creditor” and inserting in lieu thereof “holder of a claim”; and (2) striking out “creditors” each place it appears and inserting in lieu thereof “holders”. (c) Section 724(d) of title 11 of the United States Code is amended by— (1) striking out “whose priority” and inserting in lieu thereof “the priority of which”; and (2) inserting ‘ if such lien were” after “the same as”. Sec. 478. Section 725 of title 11 of the United States Cede is amended by inserting “of property of the estate” after “distribution”. Sec. 479. (a) Section 726(b) of title 11 of the United States Code is amended by— (1) striking out “a particular paragraph” and inserting in lieu thereof “each such particular paragraph”; and (2) striking out “administrative expenses” each place it appears and inserting in lieu thereof “a claim allowed under section 503(b) of this title”; and (3) striking out “have” and inserting in lieu thereof “has”. (b) Section 726(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “Administrative expenses” and inserting in lieu thereof “Claims allowed under section 503 of this title”; and (2) in paragraph (2), by striking out “Claims other than for administrative expenses” and inserting in lieu thereof “Allowed claims, other than claims allowed under section 503 of this title,”. Sec. 480. (a) Section 727(a) of title 11 of the United States Code is amended— (1) in paragraph (6)(C), by striking out “property” and inserting in lieu thereof “properly”; (2) in paragraph (7), by inserting “, under this title or under the Bankruptcy Act,” after “another case”; and (3) in paragraph (8), by inserting a comma after “371”. (b) Section 727(c)(1) of title 11 of the United States Code is amended by inserting “the granting of a” after “to”. (c) Section 727(e)(2)(A) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 481. (a) Section 728(c) of title 11 of the United States Code is amended by striking out the comma after “taxable income”. (b) Section 728(d)(2) of title 11 of the United States Code is amended by inserting “otherwise” after “is”, and by striking out “otherwise” after “partner”. Sec. 482. Section 741 of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by— (A) striking out “the debtor” the first time it appears and inserting in lieu thereof “a person”; (B) striking out “holds” and inserting in lieu thereof “has”; (C) striking out “the debtor” the second and third time it appears and inserting in lieu thereof “such person”; and (D) striking out “business as a stockbroker” and inserting in lieu thereof “such person”s business as a stockbroker,”, (2) in paragraph (2)(B), by— (A) striking out “holds” and inserting in lieu thereof “has”; (B) striking out “the debtor” the first place it appears and inserting in lieu thereof “a person”; and (C) by striking out “the debtor” and inserting in lieu thereof “such person” in clause (ii); (3) in paragraph (4)(A)(i), by striking out “and that is” and inserting in lieu thereof “from and that is the lawful”; (4) in paragraph (6)(A)(i), by— (A) inserting a comma after “petition”; and (B) inserting “any” after “except”; and (5) in paragraph (7), by amending such paragraph to read as follows: “(7) ‘securities contract’ means contract for the purchase, sale, or loan of a security, including an option for the purchase or sale of a security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any option entered into on a national securities exchange relating to foreign currencies, or the guarantee of any settlement of cash or securities by or to a securities clearing agency;”; and (6) in paragraph (8) by inserting “a final settlement payment,” after “settlement payment on account,”. Sec. 483. Section 745(a) of title 11 of the United States Code is amended by inserting “the debtor for” after “by”. Sec. 484. (a) Section 752(a) of title 11 of the United States Code is amended by— (1) striking out “customers allowed” and in lieu thereof “customers’ allowed”; (2) inserting “of the kind” after “except claims”; and (3) inserting “such” before “customer property”. (b) Section 752(b)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 485. Section 761 of title 11 of the United States Code is amended in paragraph (10), by striking out “and that is” in subparagraph (A)(viii) and inserting in lieu thereof “from and that is the lawful”. Sec. 486. Section 763(a) of title 11 of the United States Code is amended by— (1) inserting “the debtor for” after “by”; and (2) striking out “deemed to be” and inserting in lieu thereof “treated as”. Sec. 487. Section 764(a) of title 11 of the United States Code is amended by inserting “by the debtor” after “any transfer”. Sec. 488. Section 765(a) of title 11 of the United States Code is amended by striking out “notice under”, and inserting in lieu thereof “notice required by”. Sec. 489. Section 766(j)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 490. Section 901(a) of title 11 of the United States Code is amended by inserting a comma after “1111(b)”. Sec. 491. Section 902(2) of title 11 of the United States Code is amended by striking out “title, legal or equitable, to real property against which has been levied a special assessment or special tax” and by inserting in lieu thereof “legal or equitable title to real property against which a special assessment or special tax has been levied”. Sec. 492. Section 903(2) of title 11 of the United States Code is amended by striking out “to” the first place it appears. Sec. 493. Chapter 9 of title 11 of the United States Code is 11 USC prec 921.. amended by striking out “SUBCHAPER II” and inserting in lieu thereof “SUBCHAPTER II”. Sec. 494. (a) Section 921(c) of title 11 of the United States Code is amended by— (1) striking out “an” and inserting in lieu thereof “any”; and (2) striking out the comma after “petition” the second place it appears, and after “faith”. (b) Section 921 of title 11 of the United States Code is amended by redesignating subsections (e) and (f) as subsections (d) and (e), respectively. (c) Section 921(a) is amended by striking out “109(c)” and inserting in lieu thereof “109(d)”. (d) Section 921(d) of title 11 of the United States Code, as so redesignated, is amended by striking out “subsection (d)” and inserting in lieu thereof “subsection (c)”. Sec. 495. Section 922(a)(1) of title 11 of the United States Code is amended by— (1) inserting “a” before “judicial”; and (2) inserting “action or” before “proceeding”. Sec. 496. Section 927(b) of title 11 of the United States Code is amended by inserting “of a plan under this chapter” after “confirmation”. Sec. 497. Section 943(b) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “to be taken”; and (2) by amending paragraph (5) to read as follows: “(5) except to the extent that the holder of a particular claim has agreed to a different treatment of such claim, the plan provides that on the effective date of the plan each holder of a claim of a kind specified in section 507(a)(1) of this title will receive on account of such claim cash equal to the allowed amount of such claim; and”. Sec. 498. Section 945(a) of title 11 of the United States Code is amended by striking out “execution” and inserting in lieu thereof “implementation”. Sec. 499. Section 1102(b)(1) of title 11 of the United States Code is amended by striking out “order for relief’ and inserting in lieu thereof “commencement of the case”. Sec. 500. (a) Section 1103(b) is amended by— (1) inserting “having an adverse interest” after “entity”; and (2) adding at the end thereof the following: “Representation of one or more creditors of the same class as represented by the committee shall not per se constitute the representation of an adverse interest/’. (b) Section 1103(c) of title 11 of the United States Code is amended— (1) in paragraph (3), by— (A) striking out “recommendations” and inserting in lieu thereof “determinations”; and (B) inserting “or rejections” after “acceptances”; and (2) in paragraph (4), by striking out “, if a trustee or examiner, as the case may be, has not previously been appointed under this chapter in the case”. Sec. 501. Section 1105 of title 11 of the United States Code is amended by striking out “estate, and” and inserting in lieu thereof “estate and of the”. Sec. 502. Section 1106(b) of title 11 of the United States Code is amended by inserting “, except to the extent that the court orders otherwise, before “any other”. Sec. 503. Section 1107(a) of title 11 of the United States Code is amended by inserting “serving in a case” after “on a trustee”. Sec. 504. Section 1108 of title 11 of the United States Code is amended by inserting “, on request of a party in interest and after notice and a hearing, after “court”. Sec. 505. (a) Section 1112(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by striking out “is an involuntary case originally commenced under this chapter” and inserting in lieu thereof “originally was commenced as an involuntary case under this chapter”; and (2) in paragraph (3), by striking but “on other than” and inserting in lieu thereof “other than on”. (b) Section 1112(b) of title 11 of the United States Code is amended— (1) in paragraph (5), by inserting “a request made for” before “additional”; and (2) in paragraph (8), by striking out “and” and inserting in lieu thereof “or”. Sec. 506. (a) Section 1121(c)(3) of title 11 of the United States Code is amended by striking out “the claims or interests of which are” and inserting in lieu thereof “of claims or interests that is”. (b) Section 1121(d) of title 11 of the United States Code is amended by inserting “made within the respective periods specified in subsection (c) of this section” after “interest”. Sec. 507. (a) Section 1123(a) of title 11 of the United States Code is amended— (1) by striking out “A” and inserting in lieu thereof “Notwithstanding any otherwise applicable nonbankruptcy law, a”; (2) in paragraph (1), by— (A) inserting a comma after “classes of claims”; and (B) by striking out “507(a)(6) of this title” and inserting in lieu thereof “507(a)(7) of this title,”; (3) in paragraph (3), by striking out “shall”; (4) in paragraph (5), by striking out “execution” and inserting in lieu thereof “implementation”, and (5) in paragraph (5)(G), by inserting “of’ after “waiving”. (b) Section 1123(b)(2) of title 11 of the United States Code is amended by— (1) striking out “or rejection” and inserting in lieu thereof “, rejection, or assignment”; and (2) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”. Sec. 508. Section 1124 of title 11 of the United States Code is amended— (1) by amending paragraph ()(A) to read as follows: “(A) cures any such default that occurred before or after the commencement of the case under this title, other than a default of a kind specified in section 365(b)(2) of this title;”; Ante, p. 361. and (2) in paragraph (3)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 509. (a) Section 1125(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “, but adequate information need not include such information about any other possible or proposed plan” after “plan”; (2) in paragraph (2)(B), by inserting “the” after “with”; and (3) in paragraph (2)(C), by inserting “or’ after “holders”. (b) Section 1125(d) of title 11 of the United States Code is amended by— (1) inserting “required under subsection (b) of this section” after “statement” the first place it appears; and (2) inserting or otherwise seek review of,” after “appeal from”. (c) Section 1125(e) of title 11 of the United States Code is amended by— (1) inserting “acceptance or rejection of a plan” after “solicits”; and (2) inserting “solicitation of acceptance or rejection of a plan or” after “governing”. Sec. 510. (a) Section 1126(b)(2) of title 11 of the United States Code is amended by striking out “1125(a)(1)” and inserting in lieu thereof “1125(a)”. (b) Section 1126(d) of title 11 of the United States Code is amended by inserting a comma after “such interests” the first place it appears. (c) Section 1126(f) of title 11 of the United States Code is amended by— (1) striking out “is deemed” and inserting in lieu thereof “, and each holder of a claim or interest of such class, are conclusively presumed”; (2) striking out “solicititation” and inserting in lieu thereof “solicitation”; and (3) striking out “interest” and inserting in lieu thereof “interests” (d) Section 1126(g) of title 11 of the United States Code is amended by striking out “any payment or compensation” and inserting in lieu thereof “receive or retain any property”. Sec. 511. (a) Section 1127(a) of title 11 of the United States Code is amended by— (1) inserting “of a plan” after “After the proponent”; and (2) inserting “of such plan” after “modification”. (b) Section 1127(b) of title 11 of the United States Code is amended by striking out “the court, after notice and a hearing, confirms such plan, as modified, under section 1129 of this title, and circumstances warrant such modification” and inserting in lieu thereof “circumstances warrant such modification and the court, after notice and a hearing, confirms such plan as modified, under section 1129 of this title”. Sec. 512. (a) Section 1129(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “chapter.” and inserting in lieu thereof “title.”; (2) in paragraph (2), by striking out “chapter.” and inserting in lieu thereof “title.”; (3) by amending paragraph (4) to read as follows: “(4) Any payment made or to be made by the proponent, by the debtor, or by a person issuing securities or acquiring property under the plan, for services or for costs and expenses in or in connection with the case, or in connection with the plan and incident to the case, has been approved by, or is subject to the approval of, the court as reasonable;”; (4) in paragraph (5)(A)(ii), by striking out the period and inserting in lieu thereof “; and”; (5) in paragraph (5)(B), by striking out “The” and inserting in lieu thereof “the”; (6) in paragraph (6), by inserting “governmental” after “Any”; (7) in paragraph (7), by— (A) inserting “of each impaired class of claims or interests” in lieu of “each class”; and (B) striking out “creditor’s” in subparagraph (B) and inserting in lieu thereof “holder’s”; (8) in paragraph (8), by inserting “of claims or interests” after “each class”; and (9) by amending paragraph (10) to read as follows: “(10) If a class of claims is impaired under the plan, at least one class of claims that is impaired under the plan has accepted the plan, determined without including any acceptance of the plan by any insider.”. (b) Section 1129(b) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by striking out “lien” each place it appears and inserting in lieu thereof “liens”; (2) in paragraph (2)(B)(ii), by inserting “under the plan” after “retain”, and (3) in paragraph (2)(C)(i), by— (A) striking out “claim” and inserting in lieu thereof “interest”; and (B) striking out “and the value” and inserting in lieu thereof “or the value”. (c) Section 1129(d) of title 11 of the United States Code is amended by— (1) inserting “the application of” after “avoidance of” the second place it appears; and (2) adding at the end thereof the following new sentence: “In any hearing under this subsection, the governmental unit has the burden of proof on the issue of avoidance.”. Sec. 513. (a) Section 1141(a) of title 11 of the United States Code is amended by striking out “any creditor or equity security holder of, or general partner in,” and inserting in lieu thereof “any creditor, equity security holder, or general partner in”. (b) Section 1141(c) of title 11 of the United States Code is amended to read as follows: “(c) Except as provided in subsections (d)(2) and (d)(3) of this section and except as otherwise provided in the plan or in the order confirming the plan, after confirmation of a plan, the property dealt with by the plan is free and clear of all claims and interests of creditors, equity security holders, and of general partners in the debtor.”. Sec. 514. (a) The heading for section 1142 of title 11 of the United States Code is amended to read as follows: “§ 1142. Implementation of plan”. (b) The item relating to section 1142 in the table of sections for chapter 11 of title 11 of the United States Code is amended by striking out “Execution” and inserting in lieu thereof “Implementation”. (c) Section 1142(a) of title 11 of the United States Code is amended by striking out the comma after “plan” the second place it appears. (d) Section 1142(b) of title 11 of the United States Code is amended by inserting “a” after “by”. Sec. 515. Section 1144 of title 11 of the United States Code is amended by inserting “if and only” after “revoke such order”. Sec. 516. (a) Section 1145(a) of title 11 of the United States Code is amended— (1) in paragraph (3)(B)(i), by inserting “or 15(d)” after “13” and by inserting “or 78o(d)” after “78m”; (2) by amending paragraph (3)(B)(ii) to read as follows: “(ii) in compliance with the disclosure and reporting provision of such applicable section; and”; and (3) in paragraph (4), by striking out “stockholder” each place it appears and inserting in lieu thereof “stockbroker”. (b) Section 1145(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “and except with respect to ordinary trading transactions of an entity that is not an issuer” after “subsection”; (2) in paragraph (1)(C), by striking out “for” and inserting in lieu thereof “from”; (3) in paragraph (2)(a)(1), by striking out “combination” and inserting in lieu thereof “or combining”; and (4) in paragraph (2)(A)(ii), by striking out “among” and inserting in lieu thereof “from or to”. (c) Section 1145(d) of title 11 of the United States Code is amended by striking out “commercial”. Sec. 517. (a) Section 1146(c) of title 11 of the United States Code is amended by striking out “State or local”. (b) Section 1146(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 518. Section 1166 of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 519. Section 1168(b) of title 11 of the United States Code is amended by inserting a comma after “approval”. Sec. 520. Section 1169(c) of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 521. (a) Section 1170(a) of title 11 of the United States Code is amended by inserting “of all or a portion” after “the abandonment”. (b) Section 1170(c) of title 11 of the United States Code is amended by inserting a comma after “abandonment”. (c) Section U70(d)(2) of title 11 of the United States Code is amended by— (1) striking out “the abandonment of a railroad line” and inserting in lieu thereof “such abandonment”; and (2) striking out “termination” each place it appears and inserting in lieu thereof “suspension”. Sec. 522. Section 1171(b) of title 11 of the United States Code is amended by striking out “such” and inserting in lieu thereof “the same”. Sec. 523. Section 1173(a)(4) of title 11 of the United States Code is amended by striking out “compatible” and inserting in lieu thereof “consistent”. Sec. 524. Section 1301(c)(3) of title 11 of the United States Code is amended by inserting “continuation of’ after “by”. Sec. 525. (a) Section 1302(b) of title 11 of the United States Code as Ante, p. 356. amended by section 314 is amended by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively and by inserting after paragraph (2) the following new paragraph: “(3) dispose of, under regulations issued by the Director of the Administrative Office of the United States Courts, moneys received or to be received in a case under chapter XIII of the Bankruptcy Act; and”. (b) Section 1302(e) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “fix” and inserting in lieu thereof “set for such individual”; (2) in paragraph (1)(A), by striking out “for such individual”; and (3) in paragraph (2)(A), by— (A) striking out “of” and inserting in lieu thereof “received by”; and (B) striking out “upon all payments” and inserting in lieu thereof “of all such payments made”. Sec. 526. Section 1304(b) of title 11 of the United States Code is amended by striking out the comma after “of the debtor”. Sec. 527. (a) Section 1307(b) of title 11 of the United States Code is amended by inserting a comma after “time”. (b) Section 1307(c) of title 11 of the United States Code as amended by section 315 is amended— Ante, p. 356. (1) in paragraph (5), as redesignated by inserting “a request made for” before “additional”; (2) in paragraph (7), as redesignated by striking out “and” after the semicolon and inserting in lieu thereof “or”; and (3) in paragraph (8), as redesignated by inserting “other than completion of payments under the plan” after ‘In the plan”. Sec. 528. (a) Section 1322(a)(2) of title 11 of the United States Code is amended by inserting a comma after “payments”. (b) Section 1322(b) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “, or leave unaffected the rights of holders of any class of claims” before the semicolon; (2) in paragraph (4), by inserting “other” after “claim or any”; (3) in paragraph (7), by— (A) inserting “subject to section 365 of this title,” before “provide”; (B) striking out “or rejection” and inserting in lieu thereof rejection, or assignment”; and (C) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”; and (4) in paragraph (8), by striking out “any”. Sec. 529. Section 1324 of title 11 of the United States Code is amended by striking out “the” the second place it appears. Sec. 530. Section 1325(a)(1) of title 11 of the United States Code is amended by inserting “the” before “other”. Sec. 531. Section 1326(b)(2) of title 11 of the United States Code as amended by section 318 is amended by inserting “of this title” after Ante, p. 357. “1302(d)”. Sec. 532. Section 1328(e) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “by the debtor” after “obtained”; and (2) in paragraph (2), by striking out “knowledge of such fraud came to the requesting party” and inserting in lieu thereof “the requesting party did not know of such fraud until”. Sec. 533. Section 1329(a) of title 11 of the United States Code is amended— (1) by inserting “of the plan” after “confirmation”; (2) by striking out “a plan” and inserting in lieu thereof “such plan”; and (3) in paragraph (3), by striking out the comma. Sec. 534. Section 151302(a) of title 11 of the United States Code is amended by inserting “, or shall appoint a disinterested person to serve,” after “The United States trustee shall serve”. Subtitle J— Collective Bargaining Agreements Sec. 541. (a) Title 11 of the United States Code is amended by adding after section 1112 the following new section: “§ 1113. Rejection of collective bargaining agreements “(a) The debtor in possession, or the trustee if one has been appointed under the provisions of this chapter, other than a trustee 11 USC 1161. 45 USC 151. in a case covered by subchapter IV of this chapter and by title I of the Railway Labor Act, may assume or reject a collective bargaining agreement only in accordance with the provisions of this section. “(b) (1) Subsequent to filing a petition and prior to filing an application seeking rejection of a collective bargaining agreement, the debtor in possession or trustee (hereinafter in this section ‘trustee’ shall include a debtor in possession), shall— “(A) make a proposal to the authorized representative of the employees covered by such agreement, based on the most complete and reliable information available at the time of such proposal, which provides for those necessary modifications in the employees benefits and protections that are necessary to permit the reorganization of the debtor and assures that all creditors, the debtor and all of the affected parties are treated fairly and equitably; and “(B) provide, subject to subsection (d)(3), the representative of the employees with such relevant information as is necessary to evaluate the proposal. “(2) During the period beginning on the date of the making of a proposal provided for in paragraph (1) and ending on the date of the hearing provided for in subsection (d)(1), the trustee shall meet, at reasonable times, with the authorized representative to confer in good faith in attempting to reach mutually satisfactory modifications of such agreement. “(c) The court shall approve an application for rejection of a collective bargaining agreement only if the court finds that— “(1) the trustee has, prior to the hearing, made a proposal that fulfills the requirements of subsection (b)(1); “(2) the authorized representative of the employees has refused to accept such proposal without good cause; and “(3) the balance of the equities clearly favors rejection of such agreement. “(d) (1) Upon the filing of an application for rejection the court shall schedule a hearing to be held not later than fourteen days after the date of the filing of such application. All interested parties may appear and be heard at such hearing. Adequate notice shall be provided to such parties at least ten days before the date of such nearing. The court may extend the time for the commencement of such hearing for a period not exceeding seven days where the circumstances of the case, and the interests of justice require such extension, or for additional periods of time to which the trustee and representative agree. “(2) The court shall rule on such application for rejection within thirty days after the date of the commencement of the hearing. In the interests of justice, the court may extend such time for ruling for such additional period as the trustee and the employees’ representative may agree to. If the court does not rule on such application within thirty days after the date of the commencement of the hearing, or within such additional time as the trustee and the employees’ representative may agree to, the trustee may terminate or alter any provisions of the collective bargaining agreement pending the ruling of the court on such application. “(3) The court may enter such protective orders, consistent with Confidentiality. the need of the authorized representative of the employee to evaluate the trustee’s proposal and the application for rejection, as may be necessary to prevent disclosure of information provided to such representative where such disclosure could compromise the position of the debtor with respect to its competitors in the industry in which it is engaged. “(e) If during a period when the collective bargaining agreement continues in effect, and if essential to the continuation of the debtor’s business, or in order to avoid irreparable damage to the estate, the court, after notice and a hearing, may authorize the trustee to implement interim changes in the terms, conditions, wages, benefits, or work rules provided by a collective bargaining agreement. Any hearing under this paragraph shall be scheduled in accordance with the needs of the trustee. The implementation of such interim changes shall not render the application for rejection moot. “(f) No provision of this title shall be construed to permit a trustee to unilaterally terminate or alter any provisions of a collective bargaining agreement prior to compliance with the provisions of this section.”. (b) The table of sections for chapter 11 of title 11, United States Code, is amended by inserting after the item relating to section 1112 the following new item: “1113. Rejection of collective bargaining agreements.”. (c) The amendments made by this section shall become effective Effective date. 11 USC 1113 note. upon the date of enactment of this Act; provided that this section shall not apply to cases filed under title 11 of the United States Code which were commenced prior to the date of enactment of this section. Subtitle K— Miscellaneous Sec. 551. If any provision of this title or any amendment made by Provisions held invalid. 11 USC 101 note. this title, or the application thereof to any person or circumstance is held invalid, the provisions of every other part, and their application shall not be affected thereby. Sec. 552. Notwithstanding the provisions of section 8331(22) of title 5, United States Code, or any other provision of law, for purposes of section 8339(n) of title 5, United States Code, any individual appointed under section 34 of the Bankruptcy Act who served as a United States bankruptcy judge for Ante, p. 343. the district of Oregon or for the Central district of California until March 31, 1984, shall receive an annuity computed with respect to his service as a referee in bankruptcy and as a bankruptcy judge, and his military service (not exceeding five years) creditable under section 8332 of title 5, United States Code, by multiplying 2¼ per centum of his average annual pay by the years of that service. Sec. 553. (a) Except as otherwise provided in this section the amendments made by this title shall become effective to cases filed 90 days after the date of enactment of this Act. (b) The amendments made by section 426(b) shall become effective upon the date of enactment of this Act. (c) The amendments made by subtitle J, shall become effective as provided in section 541(c).Pub. L. 98–353 title III · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(43)
Pub. L. 98–353, §§ 391(1), 421(j)(2), redesignated successively former par. (38) as (40) and again as (43)
Source evidence
Code amendment note
Par. (43). Pub. L. 98–353, §§ 391(1), 421(j)(2), redesignated successively former par. (38) as (40) and again as (43).Enacted provision · exact public law
TITLE III— AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE Subtitle A— Consumer Credit Amendments Sec. 301. Section 109 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Notwithstanding any other provision of this section, no individual may be a debtor under this title who has been a debtor in a case pending under this title at any time in the preceding 180 days if— “(1) the case was dismissed by the court for willful failure of the debtor to abide by orders of the court, or to appear before the court in proper prosecution of the case; or “(2) the debtor requested and obtained the voluntary dismissal of the case following the filing of a request for relief from the automatic stay provided by section 362 of this title.”. Sec. 302. Section 342 of title 11, United States Code, is amended— (1) by inserting “(a)” before “There shall be given”, and (2) by adding at the end thereof the following new subsection: “(b) Prior to the commencement of a case under this title by an individual whose debts are primarily consumer debts, the clerk shall give written notice to such individual that indicates each chapter of this title under which such individual may proceed.”. Sec. 303. Section 349(a) of title 11, United States Code, is amended by inserting before the period at the end thereof nor does the dismissal of a case under this title prejudice the debtor with regard to the filing of a subsequent petition under this title, except as Supra. provided in section 109(f) of this title”. Sec. 304. Section 362 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(h) An individual injured by any willful violation of a stay provided by this section shall recover actual damages, including costs and attorneys’ fees, and, in appropriate circumstances, may recover punitive damages.”. Sec. 305. Section 521 of title 11, United States Code, is amended— (1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, (2) in paragraph (1) by inserting “a schedule of current income and current expenditures,” after “liabilities,”, and (3) by inserting after paragraph (1) the following new paragraph: “(2) if an individual debtor’s schedule of assets and liabilities includes consumer debts which are secured by property of the estate— “(A) within thirty days after the date of the filing of a petition under chapter 7 of this title or on or before the date of the meeting of creditors, whichever is earlier, or within such additional time as the court, for cause, within such period fixes, the debtor shall file with the clerk a statement of his intention with respect to the retention or surrender of such property and, if applicable, specifying that such property is claimed as exempt, that the debtor intends to redeem such property, or that the debtor intends to reaffirm debts secured by such property; “(B) within forty-five days after the filing of a notice of intent under this section, or within such additional time as the court, for cause, within such forty-five day period fixes, the debtor shall perform his intention with respect to such property, as specified by subparagraph (A) of this paragraph; and “(C) nothing in subparagraphs (A) and (B) of this paragraph shall alter the debtor’s or the trustee’s rights with regard to such property under this title;”. Sec. 306. (a) Section 522(b) of title 11, United States Code, is amended by striking out “Notwithstanding” and all that follows through “either—” and inserting in lieu thereof the following: “Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (1) or, in the alternative, paragraph (2) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Bankruptcy Rules, one 11 USC app. debtor may not elect to exempt property listed in paragraph (1) and the other debtor elect to exempt property listed in paragraph (2) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (1), where such election is permitted under the law of the jurisdiction where the case is filed. Such property is—”. (b) Section 522(d)(3) of title 11, United States Code, is amended by inserting “or $4,000 in aggregate value” after “item”. (c) Section 522(d)(5) of title 11, United States Code, is amended to read as follows: “(5) The debtor’s aggregate interest in any property, not to exceed in value $400 plus up to $3,750 of any unused amount of the exemption provided under paragraph (1) of this subsection”. (d) Section 522(m) of title 11, United States Code, is amended to read as follows: “(m) Subject to the limitation in subsection (b), this section shall apply separately with respect to each debtor in a joint case.”. Sec. 307. (a) Section 523(a)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “or” at the end thereof, (2) in subparagraph (B) by inserting “or” at the end thereof, and (3) by adding at the end thereof the following new subparagraph: “(C) for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $500 for ‘luxury goods or services’ incurred by an individual debtor on or within forty days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within twenty days before the order for relief under this title, are presumed to be nondischargeable; ‘luxury goods or services’ do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.);”. (b) Section 523(d) of title 11, United States Code, is amended to read as follows: “(d) If a creditor requests a determination of dischargeability of a consumer debt under subsection (a)(2) of this section, and such debt is discharged, the court shall grant judgment in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding if the court finds that the position of the creditor was not substantially justified, except that the court shall not award such costs and fees if special circumstances would make the award unjust.”. Sec. 308. (a) Section 524(a)(2) of title 11, United States Code, is amended by striking out “or from property of the debtor,”. (b) Section 524(c) of title 11, United States Code, is amended— (1) by striking out paragraph (2), (2) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively, and (3) by inserting after paragraph (1) the following new paragraphs: “(2) such agreement contains a clear and conspicuous statement which advises the debtor that the agreement may be rescinded at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of rescission to the holder of such claim; “(3) such agreement has been filed with the court and, if applicable, accompanied by a declaration or an affidavit of the attorney that represented the debtor during the course of negotiating an agreement under this subsection, which states that such agreement— “(A) represents a fully informed and voluntary agreement by the debtor; and “(B) does not impose an undue hardship on the debtor or a dependent of the debtor; “(4) the debtor has not rescinded such agreement at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of recission to the holder of such claim;” and (4) by amending paragraph (6), as so redesignated, to read as follows: “(6) (A) in a case concerning an individual who was not represented by an attorney during the course of negotiating an agreement under this subsection, the court approves such agreement as— “(i) not imposing an undue hardship on the debtor or a dependent of the debtor; and “(ii) in the best interest of the debtor. “(B) Subparagraph (A) shall not apply to the extent that such debt is a consumer debt secured by real property.”. (c) Section 524(d)(2) of title 11, United States Code, is amended by striking out “subsection (c)(4)” and inserting in lieu thereof “subsection (c)(6)”. (e) Section 524 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Nothing contained in subsection (c) or (d) of this section prevents a debtor from voluntarily repaying any debt.”. Sec. 309. Section 525 of title 11, United States Code, is amended— (1) by inserting “(a)” before “Except”, (2) by inserting “the” before “Perishable”, and (3) by adding at the end thereof the following new subsection: Employment and unemployment. Discrimination, prohibition. 11 USC note prec. 101. “(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt— “(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act; “(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or “(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.”. Sec. 310. Section 547(c) of title 11, United States Code, is amended— (1) in paragraph (5) by striking out “or” at the end thereof, (2) in paragraph (6) by striking out the period at the end thereof and inserting in lieu thereof “; or”, and (3) by adding at the end thereof the following new paragraph: “(7) if, in a case filed by an individual debtor whose debts are primarily consumer debts, the aggregate value of all property that constitutes or is affected by such transfer is less than $600.”. Sec. 311. (a) Section 704 of title 11, United States Code, is amended— (1) by redesignating paragraphs (3), (4), (5), (6), (7), and (8) as paragraphs (4), (5), (6), (7), (8), and (9), respectively, and (2) by inserting after paragraph (2) the following new paragraph: “(3) ensure that the debtor shall perform his intention as specified in section 521(2)(B) of this title;”. Ante, p. 352. (b) (1) Section 1106(a)(1) of title 11, United States Code, is amended by striking out “704(4), 704(6), 704(7), and 704(8)” and inserting in lieu thereof “704(5), 704(7), 704(8), and 704(9)”. (2) Section 1304(c) of title 11, United States Code, is amended by striking out “section 704(7)” and inserting in lieu thereof “section 704(8)”. (3) Section 15103(f) of title 11, United States Code, is amended by striking out “704(8),” and inserting in lieu thereof “704(9),”. (4) Section 151301(b)(1) of title 11, United States Code, is amended 11 USC 151302. by striking out “and 704(8)” and inserting in lieu thereof “, 704(7), and 704(9)”. Sec. 312. Section 707 of title 11, United States Code, is amended— (1) by inserting “(a)” before “The court may” and (2) by adding at the end thereof the following new subsection: “(b) After notice and a hearing, the court, on its own motion and not at the request or suggestion of any party in interest, may dismiss a case filed by an individual debtor under this chapter whose debts are primarily consumer debts if it finds that the granting of relief would be a substantial abuse of the provisions of this chapter. There shall be a presumption in favor of granting the relief requested by the debtor.”. Sec. 313. Section 1301 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(d) Twenty days after the filing of a request under subsection (c)(2) of this section for relief from the stay provided by subsection (a) of this section, such stay is terminated with respect to the party in interest making such request, unless the debtor or any individual that is liable on such debt with the debtor files and serves upon such party in interest a written objection to the taking of the proposed action.”. Sec. 314. Section 1302(b) of title 11, United States Code, is amended— (1) by amending paragraph (1) to read as follows: “(1) perform the duties specified in sections 704(2), 704(3), 704(4), 704(5), 704(6), 704(7), and 704(9) of this title;”; (2) in paragraph (2) by striking out “and” at the end thereof, (3) in paragraph (3) by striking out the period and inserting in lieu thereof “; and”, and (4) by adding at the end thereof the following new paragraph: “(4) ensure that the debtor commences making timely payments under section 1326 of this title.”. Sec. 315. Section 1307(c) of title 11, United States Code, is amended— (1) by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), respectively, and (2) by inserting after paragraph (3) the following new paragraph: “(4) failure to commence making timely payments under section 1326 of this title;”. Sec. 316. Section 1322(b)(1) of title 11, United States Code, is amended to read as follows: “(1) designate a class or classes of unsecured claims, as provided in section 1122 of this title, but may not discriminate unfairly against any class so designated; however, such plan may treat claims for a consumer debt of the debtor if an individual is liable on such consumer debt with the debtor differently than other unsecured claims;”. Sec. 317. Section 1325 of title 11, United States Code, is amended— (1) in subsection (a) by striking out “The” and inserting in lieu thereof “Except as provided in subsection (b), the”, (2) by redesignating subsection (b) as subsection (c), and (3) by inserting after subsection (a) the following new subsection: “(b) (1) If the trustee or the holder of an allowed unsecured claim objects to the confirmation of the plan, then the court may not approve the plan unless, as of the effective date of the plan— “(A) the value of the property to be distributed under the plan on account of such claim is not less than the amount of such claim; or “(B) the plan provides that all of the debtor’s projected disposable income to be received in the three-year period beginning on the date that the first payment is due under the plan will be applied to make payments under the plan. “(2) For purposes of this subsection, disposable income’ means income which is received by the debtor and which is not reasonably necessary to be expended— “(A) for the maintenance or support of the debtor or a dependent of the debtor; or “(B) if the debtor is engaged in business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business.”. Sec. 318. (a) Section 1326 of title 11, United States Code, is amended— (1) by redesignating subsections (a) and (b) as subsections (h) and (c), respectively, and (2) by inserting before such subsections the following new subsection: “(a) (1) Unless the court orders otherwise, the debtor shall commence making the payments proposed by a plan within 30 days after the plan is filed. “(2) A payment made under this subsection shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan. If a plan is not confirmed, the trustee shall return any such payments to the debtor, after deducting any unpaid claim allowed under section 503(b) of this title.”. (b) Section 15103(f) of title 11, United States Code, is amended by striking out “1326(a),” and inserting in lieu thereof “1326(b),”. Sec. 319. Section 1329(a) of title 11, United States Code, is amended by striking out “At” and all that follows through “modified to—”, and inserting in lieu thereof the following: “At any time after confirmation but before the completion of payments under a plan, the plan may be modified, upon request of the debtor, the trustee, or the holder of an allowed unsecured claim, to—”. Sec. 320. The Supreme Court shall prescribe general rules implementing Supreme Court of U.S. 28 USC 2075 note. Ante, p. 355. the practice and procedure to be followed under section 707(b) of title 11, United States Code. Section 2075 of title 28, United States Code, shall apply with respect to the general rules prescribed under this section. Sec. 321. Rule 2002 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision: “(n) In a voluntary case commenced under the Code by an individual debtor whose debts are primarily consumer debts, the clerk, or some other person as the court may direct, shall give the trustee and all creditors notice by mail of the order for relief not more than 20 days after the entry of such order.”. Sec. 322. Official Bankruptcy Form No. 1, referred to in Rule 1002 of the Bankruptcy Rules, is amended— 11 USC app. (1) by inserting after paragraph (5) the following: “(6) [If petitioner is an individual whose debts are primarily consumer debts.] Petitioner is aware that [he or she] may proceed under chapter 7 or 13 of title 11, United States Code, 11 USC 701 et seq.. 1301 et seq. understands the relief available under each such chapter, and chooses to proceed under chapter 7 of such title. “(7) [If petitioner is an individual whose debts are primarily consumer debts and such petitioner is represented by an attorney.] A declaration or an affidavit in the form of Exhibit ‘B’ is attached to and made a part of this petition.”, and (2) by inserting after Exhibit “A” at the end thereof the following new exhibit: “Exhibit ‘B’ “[If petitioner is an individual whose debts are primarily consumer debts, this Exhibit ‘B’ shall be completed and attached to the petition pursuant to paragraph (7) thereof.] Sec. 323. Section 408(c) of the Act of November 6, 1978 (Public Law 95–598; 92 Stat. 2687(c)), as amended by the Act of November 28, 1983 (Public Law 98–166; 97 Stat. 1071), is amended by striking out “September 30, 1984” and inserting in lieu thereof “September 30, 1986”. Sec. 324. Section 1103(b) of title 11, United States Code, is amended by striking out “A person” and inserting in lieu thereof “An attorney or accountant” Subtitle B— Amendments Relating to Grain Storage Facility Bankruptcy Sec. 350. Section 507(a) of title 11, United States Code, is amended— (1) by striking out “(5) Fifth” and inserting in lieu thereof “(6) Sixth” (2) by striking out “(6) Sixth” and inserting in lieu thereof “(7) Seventh”; and (3) by adding after paragraph (4) the following: “(5) Fifth, allowed unsecured claims of persons— “(A) engaged in the production or raising of grain, as Post, p. 359. defined in section 557(b)(1) of this title, against a debtor who owns or operates a grain storage facility, as defined in section 557(b)(2) of this title, for grain or the proceeds of grain, or “(B) engaged as a United States fisherman against a debtor who has acquired fish or fish produce from a fisherman through a safe or conversion, and who is engaged in operating a fish produce storage or processing facility— but only to the extent of $2,000 for each such individual.”. Sec. 351. Section 546 of title 11, United States Code, is amended— (1) in the first sentence of subsection (c) thereof, by striking out “The” and inserting in lieu thereof “Except as provided in subsection (d) of this section, the”; and (2) by redesignating subsection (d) as subsection (e); and (3) by inserting after subsection (c) the following: In the case of a seller who is a producer of grain sold to a grain storage facility, owned or operated by the debtor, in the ordinary course of such seller’s business (as such terms are defined Post, p. 359. in section 557 of this title) or in the case of a United States fisherman who has caught fish sold to a fish processing facility owned or operated by the debtor in the ordinary course of such fisherman’s business, the rights and powers of the trustee under sections 544(a), 545, 547, and 549 of this title are subject to any statutory or common law right of such producer or fisherman to reclaim such grain or fish if the debtor has received such grain or fish while insolvent, but— “(1) such producer or fisherman may not reclaim any grain or Claims. fish unless such producer or fisherman demands, in writing, reclamation of such grain or fish before ten days after receipt thereof by the debtor; and “(2) the court may deny reclamation to such a producer or fisherman with a right of reclamation that has made such a demand only if the court secures such claim by a lien.”. Sec. 352. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 557. Expedited determination of interests in, and abandonment or other disposition of grain assets “(a) This section applies only in a case concerning a debtor that owns or operates a grain storage facility and only with respect to grain and the proceeds of grain. This section does not affect the application of any other section of this title to property other than grain and proceeds of grain. “(b) In this section— “(1) ‘grain’ means wheat, corn, flaxseed, grain sorghum, barley, oats, rye, soybeans, other dry edible beans, or rice; “(2) ‘grain storage facility’ means a site or physical structure regularly used to store grain for producers, or to store grain acquired from prodùcers for resale; and “(3) ‘producer’ means an entity which engages in the growing of grain. “(c) (1) Notwithstanding sections 362, 363, 365, and 554 of this title, on the court’s own motion the court may, and on the request of the trustee or an entity that claims an interest in grain or the proceeds of grain the court shall, expedite the procedures for the determination of interests in and the disposition of grain and the proceeds of grain, by shortening to the greatest extent feasible such time periods as are otherwise applicable for such procedures and by establishing, by order, a timetable having a duration of not to exceed 120 days for the completion of the applicable procedure specified in subsection (d) of this section. Such time periods and such timetable may be modified by the court, for cause, in accordance with subsection (f) of this section. “(2) The court shall determine the extent to which such time periods shall be shortened, based upon— “(A) any need of an entity claiming an interest in such grain or the proceeds of grain for a prompt determination of such interest; “(B) any need of such entity for a prompt disposition of such grain; “(C) the market for such grain; “(D) the conditions under which such grain is stored; “(E) the costs of continued storage or disposition of such grain; “(F) the orderly administration of the estate; “(G) the appropriate opportunity for an entity to assert an interest in such grain; and “(H) such other considerations as are relevant to the need to expedite such procedures in the case. “(d) The procedures that may be expedited under subsection (c) of this section include— “(1) the filing of and response to— “(A) a claim of ownership; “(B) a proof of claim; “(C) a request for abandonment; “(D) a request for relief from the stay of action against property under section 362(a) of this title; “(E) a request for determination of secured status; “(F) a request for determination of whether such grain or the proceeds of grain— “(i) is property of the estate; “(ii) must be turned over to the estate; or “(iii) may be used, sold, or leased; and “(G) any other request for determination of an interest in such grain or the proceeds of grain; “(2) the disposition of such grain or the proceeds of grain, before or after determination of interests in such grain or the proceeds of grain, by way of— “(A) sale of such grain; “(B) abandonment; “(C) distribution; or “(D) such other method as is equitable in the case; “(3) subject to sections 701, 702, 703, 1104, and 1302 of this title, the appointment of a trustee or examiner and the retention and compensation of any professional person required to assist with respect to matters relevant to the determination of interests in or disposition of such grain or the proceeds of grain; and “(4) the determination of any dispute concerning a matter specified in paragraph (1), (2), or (3) of this subsection. “(e) (1) Any governmental unit that has regulatory jurisdiction over the operation or liquidation of the debtor or the debtor’s business shall be given notice of any request made or order entered under subsection (c) of this section. “(2) Any such governmental unit may raise, and may appear and be heard on, any issue relating to grain or the proceeds of grain in a case in which a request is made, or an order is entered, under subsection (c) of this section. “(3) The trustee shall consult with such governmental unit before taking any action relating to the disposition of grain in the possession, custody, or control of the debtor or the estate. “(f) The court may extend the period for final disposition of grain or the proceeds of grain under this section beyond 120 days if the court finds that— “(1) the interests of justice so require in light of the complexity of the case; and “(2) the interests of those claimants entitled to distribution of grain or the proceeds of grain will not be materially injured by such additional delay. “(g) Unless an order establishing an expedited procedure under subsection (c) of this section, or determining any interest in or approving any disposition of grain or the proceeds of grain, is stayed pending appeal— “(1) the reversal or modification of such order on appeal does not affect the validity of any procedure, determination, or disposition that occurs before such reversal or modification, whether or not any entity knew of the pendency of the appeal; and “(2) neither the court nor the trustee may delay, due to the appeal of such order, any proceeding in the case in which such order is issued. “(h) (1) The trustee may recover from grain and the proceeds of grain the reasonable and necessary costs and expenses allowable under section 503(b) of this title attributable to preserving or disposing of grain or the proceeds of grain, but may not recover from such grain or the proceeds of grain any other costs or expenses. “(2) Notwithstanding section 326(a) of this title, the dollar amounts of money specified in such section include the value, as of the date of disposition, of any grain that the trustee distributes in kind. “(i) In all cases where the quantity of a specific type of grain held by a debtor operating a grain storage facility exceeds ten thousand bushels, such grain shall be sold by the trustee and the assets thereof distributed in accordance with the provisions of this section.”. (b) The table of sections of chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: ‘557 Expedited determination of interests in and disposition of grain.”. Sec. 353. Section 901(a) of title 11, United States Code, is amended by inserting “557,” after “553,”. Sec. 354. Rule 3001 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision “(g) To the extent not inconsistent with the United States Warehouse Act or applicable State law, a warehouse receipt, scale ticket, or similar document of the type routinely issued as evidence of title by a grain storage facility, as defined in section 557 of title 11, shall constitute prima facie evidence of the validity and amount of a claim of ownership of a quantity of grain ”. Subtitle C— Leasehold Management Amendments Sec. 361. This subtitle may be cited as the “Leasehold Management Bankruptcy Amendments Act of 1983”. Sec. 362. (a) Section 365 of title 11, United States Code, is amended by amending subsections (a), (b), (c), and (d) to read as follows: “(a) Except as provided in sections 765 and 766 of this title and in subsections (b), (c), and (d) of this section, the trustee, subject to the court’s approval, may assume or reject any executory contract or unexpired lease of the debtor. “(b) (1) If there has been a default in an executory contract or unexpired lease of the debtor, the trustee may not assume such contract or lease unless, at the time of assumption of such contract or lease, the trustee— “(A) cures, or provides adequate assurance that the trustee will promptly cure, such default; “(B) compensates, or provides adequate assurance that the trustee will promptly compensate, a party other than the debtor to such contract or lease, for any actual pecuniary loss to such party resulting from such default; and “(C) provides adequate assurance of future performance under such contract or lease. “(2) Paragraph (1) of this subsection does not apply to a default that is a breach of a provision relating to— “(A) the insolvency or financial condition of the debtor at any time before the closing of the case; “(B) the commencement of a case under this title; or “(C) the appointment of or taking possession by a trustee in a case under this title or a custodian before such commencement. “(3) For the purposes of paragraph (1) of this subsection and paragraph (2)(B) of subsection (t), adequate assurance of future performance of a lease of real property in a shopping center includes adequate assurance— “(A) of the source of rent and other consideration due under such lease, and in the case of an assignment, that the financial condition and operating performance of the proposed assignee and its guarantors, if any, shall be similar to the financial condition and operating performance of the debtor and its guarantors, if any, as of the time the debtor became the lessee under the lease; “(B) that any percentage rent due under such lease will not decline substantially; “(C) that assumption or assignment of such lease is subject to all the provisions thereof, including (but not limited to) provisions such as a radius, location, use, or exclusivity provision, and will not breach any such provision contained in any other lease, financing agreement, or master agreement relating to such shopping center; and “(D) that assumption or assignment of such lease will not disrupt any tenant mix or balance in such shopping center. “(4) Notwithstanding any other provision of this section, if there has been a default in an unexpired lease of the debtor, other than a default of a kind specified in paragraph (2) of this subsection, the trustee may not require a lessor to provide services or supplies incidental to such lease before assumption of such lease unless the lessor is compensated under the terms of such lease for any services and supplies provided under such lease before assumption of such lease. “(c) The trustee may not assume or assign any executory contract or unexpired lease of the debtor, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties, if— “(1) (A) applicable law excuses a party, other than the debtor, to such contract or lease from accepting performance from or rendering performance to an entity other than the debtor or the debtor in possession or an assignee of such contract or lease, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties; and “(B) such party does not consent to such assumption or assignment; or “(2) such contract is a contract to make a loan, or extend other debt financing or financial accommodations, to or for the benefit of the debtor, or to issue a security of the debtor; or “(3) such lease of nonresidential real property has been terminated under applicable nonbankruptcy law prior to the order for relief. “(d) (1) In a case under chapter 7 of this title, if the trustee does not assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor within 60 days after the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such contract or lease is deemed rejected. “(2) In a case under chapter 9, 11, or 13 of this title, the trustee 11 USC 901 et seq., 1101 et seq., 1301 et seq. may assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor at any time before the confirmation of a plan but the court, on the request of any party to such contract or lease, may order the trustee to determine within a specified period of time whether to assume or reject such contract or lease. “(3) The trustee shall timely perform all the obligations of the debtor, except those specified in section 365(b)(2), arising from and Ante, p. 361. after the order for relief under any unexpired lease of nonresidential real property, until such lease is assumed or rejected, notwithstanding section 503(b)(1) of this title. The court may extend, for cause, the time for performance of any such obligation that arises within 60 days after the date of the order for relief, but the time for performance shall not be extended beyond such 60-day period. This subsection shall not be deemed to affect the trustee’s obligations under the provisions of subsection (b) or (f) of this section. Acceptance of any such performance does not constitute waiver or relinquishment of the lessor’s rights under such lease or under this title. “(4) Notwithstanding paragraphs (1) and (2), in a case under any chapter of this title, if the trustee does not assume or reject an unexpired lease of nonresidential real property under which the debtor is the lessee within 60 days after the date of the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such lease is deemed rejected, and the trustee shall immediately surrender such nonresidential real property to the lessor.”. (b) Section 365 is further amended by adding at the end thereof the following new subsection: “(l) If an unexpired lease under which the debtor is the lessee is assigned pursuant to this section, the lessor of the property may require a deposit or other security for the performance of the debtor’s obligations under the lease substantially the same as would have been required by the landlord upon the initial leasing to a similar tenant. “(m) For purposes of this section 365 and sections 541(b)(2) and Real property. Infra. 362(b)(9), leases of real property shall include any rental agreement to use real property.”. Sec. 363. (a) Section 541(b) of title 11, United States Code, is amended to read as follows: “(b) Property of the estate does not include— “(1) any power that the debtor may exercise solely for the benefit of an entity other than the debtor; or “(2) any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease before the commencement of the case under this title, and ceases to include any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease during the case.”. (b) Section 362(b) of title 11 of the United States Code is amended by— (1) striking out “or” at the end of paragraph (7), (2) replacing the period after paragraph (8) with “; or”, and (3) adding the following after paragraph (8): “(9) under subsection (a) of this section, of any act by a lessor to the debtor under a lease of nonresidential real property that has terminated by the expiration of the stated term of the lease before the commencement of or during a case under this title to obtain possession of such property.”. Subtitle D— Amendments to Title 11, Section 523 Relating to the Discharge of Debts Incurred by Persons Driving While Intoxicated Sec. 371. Section 523(a) of title 11, United States Code, is amended by— (1) striking out “or” at the end of paragraph (8); and (2) by adding the following new paragraph after such paragraph: “(9) to any entity, to the extent that such debt arises from a judgment or consent decree entered in a court of record against the debtor wherein liability was incurred by such debtor as a result of the debtor’s operation of a motor vehicle while legally intoxicated under the laws or regulations of any jurisdiction within the United States or its territories wherein such motor vehicle was operated and within which such liability was incurred; or”. Subtitle E— Referees Salary and Expense Fund Sec. 381. This subtitle may be cited as the “Referees Salary and Expense Fund Act of 1984”. Sec. 382. Section 403(e) of the Act of November 6, 1978 (92 Stat. 2683; Public Law 95–598), is amended to read as follows: “(e) Notwithstanding subsection (a) of this section— “(1) a fee may not be charged under section 40c(2)(a) of the Bankruptcy Act in a case pending under such Act after September 30, 1979, to the extent that such fee exceeds $200,000; “(2) a fee may not be charged under section 40c(2)(b) of the Bankruptcy Act in a case in which the plan is confirmed after September 30, 1978, or in which the final determination as to the amount of such fee is made after September 30, 1979, notwithstanding an earlier confirmation date, to the extent that such fee exceeds $100,000; “(3) after September 30, 1979, all moneys collected for payment into the referees’ salary and expense fund in cases filed 11 USC note prec. 101. under the Bankruptcy Act shall be collected and paid into the general fund of the Treasury; and “(4) any balance in the referees’ salary and expense fund in the Treasury on October 1, 1979, shall be transferred to the general fund of the Treasury and the referees’ salary and expense fund account shall be closed.”. Subtitle F— Amendments Regarding Repurchase Agreements Sec. 391. Section 101 of title 11, United States Code, is amended— (1) by redesignating paragraphs (35), (36), (37), (38), (39), (40), and (41), as paragraphs (37), (38), (39), (40), (41), (42), and (43), respectively, and (2) by inserting after paragraph (34) the following new paragraphs: “(35) ‘repo participant’ means an entity that, on any day during the period beginning 90 days before the date of the filing of the petition, has an outstanding repurchase agreement with the debtor; “(36) ‘repurchase agreement’ (which definition also applies to Securities. a reverse repurchase agreement) means an agreement, including related terms, which provides for the transfer of certificates of deposit, eligible bankers’ acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, or securities with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, or securities as described above, at a date certain not later than one year after such transfers or on demand, against the transfer of funds;”. Sec. 392. Section 362(b) of title 11, United States Code, is Ante, p. 363. amended— (a) by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively, and (b) by inserting after paragraph (6) the following new paragraph: “(7) under subsection (a) of this section, of the setoff by a repo participant, of any mutual debt and claim under or in connection with repurchase agreements that constitutes the setoff of a claim against the debtor for a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, arising out of repurchase agreements against cash, securities, or other property held by or due from such repo participant to margin, guarantee, secure or settle repurchase agreements;”. Sec. 393. Section 546 of title 11, United States Code, is amended by Ante, p. 358. inserting after subsection (e), as redesignated by section 251, the following: Notwithstanding sections 544, 545, 547, 548(a)(2), and 548(b) of this title, the trustee may not avoid a transfer that is a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, made by or to a repo participant, in connection with a repurchase agreement and that is made before the commencement of the case, except under section 548(a)(1) of this title.”. Sec. 394. Section 548(d)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “and” at the end thereof; (2) in subparagraph (B) by striking out the period at the end thereof and inserting in lieu thereof “; and”; and by inserting after paragraph (B) the following new subparagraph: “(C) a repo participant that receives a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, in connection with a repurchase agreement, takes for value to the extent of such payment.”. Sec. 395. Section 553(b)(1) of title 11, United States Code, is amended by inserting “, 362(b)(7),” after “362(b)(6)”. Sec. 396. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 559. Contractual right to liquidate a repurchase agreement “The exercise of a contractual right of a repo participant to cause the liquidation of a repurchase agreement because of a condition of the kind specified in section 365(e)(1) of this title shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title, unless, where the debtor is a stockbroker or securities clearing agency, such order is authorized under the provisions of the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) or any statute administered by the Securities and Exchange Commission. In the event that a repo participant liquidates one or more repurchase agreements with a debtor and under the terms of one or more such agreements has agreed to deliver assets subject to repurchase agreements to the debtor, any excess of the market prices received on liquidation of such assets (or if any such assets are not disposed of on the date of liquidation of such repurchase agreements, at the prices available at the time of liquidation of such repurchase agreements from a generally recognized source or the most recent closing bid quotation from such a source) over the sum of the stated repurchase prices and all expenses in connection with the liquidation of such repurchase agreements shall be deemed property of the estate, subject to the available rights of setoff. As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw, applicable to each party to the repurchase agreement, of a national securities exchange, a national securities association, or a securities clearing agency, and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal business practice.”. (b) The analysis of sections for chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: “559. Contractual right to liquidate a repurchase agreement.”. Subtitle G— Amendments to Title 11, Section 365 of the United States Code to Provide Adequate Protection for Timeshare Consumers Sec. 401. Title 11, United States Code, section 101 is hereby amended by— (1) redesignating paragraph (43), as redesignated by section Ante, p. 364. Real property. 391, as paragraph (44); and (2) adding the following paragraph after paragraph (42), as redesignated in section 391: “(43) ‘timeshare plan’ means and shall include that interest purchased in any arrangement, plan, scheme, or similar device, but not including exchange programs, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, right to use agreement, or by any other means, whereby a purchaser, in exchange for consideration, receives a right to use accommodations, facilities, or recreational sites, whether improved or unimproved, for a specific period of time less than a full year during any given year, but not necessarily for consecutive years, and which extends for a period of more than three years. A ‘timeshare interest’ is that interest purchased in a timeshare plan which grants the purchaser the right to use and occupy accommodations, facilities, or recreational sites, whether improved or unimproved, pursuant to a timeshare plan.”. Sec. 402. Section 365(h)(1) of title 11, United States Code, is Real property. amended to read as follows: “(h) (1) If the trustee rejects an unexpired lease of real property of the debtor under which the debtor is the lessor, or a timeshare interest under a timeshare plan under which the debtor is the timeshare interest seller, the lessee or timeshare interest purchaser under such lease or timeshare plan may treat such lease or time-share plan as terminated by such rejection, where the disaffirmance by the trustee amounts to such a breach as would entitle the lessee or timeshare interest purchaser to treat such lease as terminated by virtue of its own terms, applicable nonbankruptcy law, or other agreements the lessee or timeshare interest purchaser has made with other parties; or, in the alternative, the lessee or timeshare interest purchaser may remain in possession of the leasehold or timeshare interest under any lease or timeshare plan the term of which has commenced for the balance of such term and for any renewal or extension of such term that is enforceable by such lessee or timeshare interest purchaser under applicable nonbankruptcy law.”. Sec. 403. Section 365(h)(2) of title 11, United States Code, is Real property. amended to read as follows: “(2) If such lessee or timeshare interest purchaser remains in possession as provided in paragraph (1) of this subsection, such lessee or timeshare interest purchaser may offset against the rent reserved under such lease or moneys due for such timeshare interest for the balance of the term after the date of the rejection of such lease or timeshare interest, and any such renewal or extension thereof, any damages occurring after such date caused by the non-performance of any obligation of the debtor under such lease or timeshare plan after such date, but such lessee or timeshare interest purchaser does not have any rights against the estate on account of any damages arising after such date from such rejection, other than such offset.”. Sec. 404. Section 365(i)(1) of title 11, United States Code, is Real property. amended to read as follows: “(i) (1) If the trustee rejects an executory contract of the debtor for the sale of real property or for the sale of a timeshare interest under a timeshare plan, under which the purchaser is in possession, such purchaser may treat such contract as terminated, or, in the alternative, may remain in possession of such real property or timeshare interest.”. Subtitle H— Miscellaneous Amendments to Title 11 Sec. 421. (a) Section 101(2)(D) of title 11 of the United States Code is amended by striking out “or all” after “business”. (b) Section 101(8)(B) of title 11 of the United States Code is amended by striking out the colon at the end thereof and inserting in lieu thereof a semicolon. (c) Section 101(9)(B) of title 11 of the United States Code is amended by inserting “348(d),” after “section”. (d) Section 101(14) of title 11 of the United States Code is amended by inserting “and” after “trust,”. (e) Section 101(24) of title 11 of the United States Code is amended by striking out “stock broker” and inserting in lieu thereof “stockbroker” (f) Section 101(26)(B)(ii) of title 11 of the United States Code is amended by— (1) striking out “separate” each place it appears and inserting in lieu thereof “nonpartnership”; and (2) striking out “(A)(ii) and inserting in lieu thereof “(A)”, (g) Section 101(30) of title 11 of the United States Code is amended to read as follows: (30) “person” includes individual, partnership, and corporation, but does not include governmental unit, Provided, however, That any governmental unit that acquires an asset from a person as a result of operation of a loan guarantee agreement, or as receiver or liquidating agent of a person, will be considered a person for purposes of section 1102 of this title. (h) Section 101(38)(B)(vi) of title 11 of the United States Code, as Ante, p. 364. redesignated by section 391 of this Act, is amended by— (1) striking out “certificate specified in clause (xii) of subparagraph (A)” and inserting in lieu thereof “certificate of a kind specified in subparagraph (A)(xii)”; and (2) striking out “the subject of such a registration statement” and inserting in lieu thereof “required to be the subject of a registration statement”. (i) Section 101(44) of title 11 of the United States Code, as so redesignated, is amended by striking out the period and inserting in lieu thereof “and foreclosure of the debtor’s equity of redemption; and”. (j) Section 101 of title 11 of the United States Code is amended— (1) by redesignating paragraphs (41) through (44), as previously redesignated, as paragraphs (45) through (48); (2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively; (3) by redesignating paragraphs (19) and (20) as paragraphs (20) and (21), respectively; (4) by inserting after paragraph (18) the following: “(19) ‘financial institution’ means a person that is a commercial or savings bank, industrial savings bank, savings and loan association, or trust company and, when any such person is acting as agent or custodian for a customer in connection with a securities contract, as defined in section Post, p. 382. 741(7) of this title, such customer;”; (5) by inserting after paragraph (21) as redesignated herein the following: “(22) ‘forward contract’ means a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity, or product or byproduct thereof, with a maturity date more than two days after the date the contract is entered into; “(23) ‘forward contract merchant’ means a person whose business consists in whole or in part of entering into forward contracts as or with merchants in commodities;”; (6) by inserting after paragraph (43) the following: “(44) ‘State’ includes the District of Columbia and Puerto Rico, except for the purpose of defining who may be a debtor under chapter 9 of this title;”; and 11 USC 901 el seq. (7) by inserting after paragraph (48) the following: “(49) ‘United States’, when used in a geographical sense, includes all locations where the judicial jurisdiction of the United States extends, including territories and possessions of the United States;”. Sec. 422. Section 102 of title 11 of the United States Code is amended by striking out “continued” and inserting in lieu thereof “contained” in paragraph (8). Sec. 423. Section 103(c) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stockbroker”. Sec. 424. (a) Subsections (a)(1), (b)(1), and (c)(1) of section 108 of title 11 of the United States Code are each amended by striking out “and” each place it appears and inserting in lieu thereof “or”. (b) Subsections (a), (b), and (c) of section 108 of title 11 of the United States Code are each amended by inserting “nonbankruptcy” after “applicable” and after “entered in a” each place such terms appear. Sec. 425. (a) Section 109 of title 11 of the United States Code, is amended by striking out “in the United States,” the first place it appears. (b) Section 109(c)(5)(D) of title 11 of the United States Code of this Act is amended by striking out “preference” and inserting in lieu thereof “transfer that is avoidable under section 547 of this title”. (c) Section 109(d) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stock-broker”. Sec. 426. (a) Section 303(b) of title 11 of the United States Code is amended by inserting “against a person” after “involuntary case”. (b) Section 303 of title 11 of the United States Code, is amended— (1) in subsection (b)(1) by inserting “or the subject on a bona fide dispute,” after “liability”; and (2) in subsection (h)(1) by inserting “unless such debts that are the subject of a bona fide dispute” after “due”. Sec. 427. Section 303(j)(2) of title 11 of the United States Code is amended by striking out “debtors” and inserting in lieu thereof “debtor”. Sec. 428. Section 321(b) of title 11 of the United States Code is amended by striking out “a case” and inserting in lieu thereof “the case”. Sec. 429. Section 322(b)(1) of title 11 of the United States Code is amended by inserting “required to be” after “bond”. Sec. 430. (a) Section 326(a) of title 11 of the United States Code is amended by striking out all the language beginning with “three percent” through “$50,000” the second place the latter appears and inserting in lieu thereof “and three percent on any amount in excess of $3,000”. (b) Section 326(d) of title 11 of the United States Code is amended to read as follows: “(d) The court may deny allowance of compensation for services or reimbursement of expenses of the trustee if the trustee failed to make diligent inquiry into facts that would permit denial of allowance under section 328(c) of this title or, with knowledge of such facts, employed a professional person under section 327 of this title.”. (c) Section 327(c) of title 11 of the United States Code is amended to read as follows: “(c) In a case under chapter 7 or 11 of this title, a person is not disqualified for employment under this section solely because of such person’s employment by or representation of a creditor, unless there is objection by another creditor, in which case the court shall disapprove such employment if there is an actual conflict of interest.”. Sec. 431. Section 328(a) of title 11 of the United States Code is amended by striking out “unanticipatable” and inserting in lieu thereof “not capable of being anticipated”. Sec. 432. (a) Section 329(a) of title 11 of the United States Code is amended by striking out “and” the first place it appears and inserting in lieu thereof “or”. (b) Section 329(b)(1) of title 11 of the United States Code is amended by striking out “trustee” and inserting in lieu thereof “estate” Sec. 433. Section 330(a) of title 11 of the United States Code is amended— (1) by striking out “to any parties in interest and to the United States trustee”; and (2) in paragraph (1), by striking out “time, the nature, the extent, and the value of such services” and inserting in lieu thereof “nature, the extent, and the value of such services, the time spent on such services”. Sec. 434. (a) Section 330(b) of title 11 of the United States Code is amended by striking out “$20” and inserting in lieu thereof “$45”. (b) Section 330 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(c) Unless the court orders otherwise, in a case under chapter 13 11 USC 1301 et seq. of this title the compensation paid to the trustee serving in the case shall not be less than $5 per month from any distribution under the plan during the administration of the plan.”. Sec. 435. Section 342 of title 11 of the United States Code as Ante, p. 352. amended by section 302 is further amended by amending subsection (a) to read as follows: “(a) There shall be given such notice as is appropriate, including notice to any holder of a community claim, of an order for relief in a case under this title.”. Sec. 436. Section 343 of title 11 of the United States Code is amended by striking out “examiner” the last place it appears and inserting in lieu thereof “examine”. Sec. 437. Section 345 of title 11 of the United States Code is amended by adding at the end thereof a new subsection (c) as follows: “(c) An entity with which such moneys are deposited or invested is authorized to deposit or invest such moneys as may be required under this section”. Sec. 438. Section 346(c)(2) of title 11 of the United States Code is amended by striking out “operation” and inserting in lieu thereof “corporation”. Sec. 439. Section 350(b) of title 11 of the United States Code is amended by striking out “a” and inserting in lieu thereof “A”. Sec. 440. Section 361(1) of title 11 of the United States Code is amended by inserting “a cash payment or” after “make ”. Sec. 441. (a) Section 362(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “action or” after “other”; and (2) in paragraph (3), by inserting “or to exercise control over property of the estate” after “estate” the second place it appears. (b) Section 362(b) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting “or to the extent that such act is accomplished within the period provided under section 547(e)(2)(A) of this title” after “title”; (2) in paragraph (6), by— (A) inserting “or due from” after “held by”; and (B) striking out “or secure commodity contracts” and inserting in lieu thereof “secure, or settle commodity contracts”, and by inserting “financial institution,” after “stockbroker” each time it appears. (3) in paragraph (8) as redesignated by section 392, by— Ante, p. 365. (A) striking out “said” and inserting in lieu thereof “the”; and (B) striking out “or” the last place it appears; (4) in paragraph (9) as redesignated by section 392, by striking out the period and inserting in lieu thereof a semicolon; and (5) by adding after paragraph (9) the following new paragraph: “(10) under subsection (a) of this section, of the presentment of a negotiable instrument and the giving of notice of and protesting dishonor of such an instrument.”. (c) Section 362(c)(2)(B) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. (d) Section 362(d)(2) of title 11 of the United States Code is amended by inserting “under subsection (a) of this section” after “property” the first place it appears. (e) Section 362(e) of title 11 of the United States Code is amended— (1) in the first sentence by inserting “the conclusion of” after “pending”; and (2) by striking out the last sentence and inserting in lieu thereof the following: “The court shall order such stay continued in effect pending the conclusion of the final hearing under subsection (d) of this section if there is a reasonable likelihood that the party opposing relief from such stay will prevail at the conclusion of such final hearing. If the nearing under this subsection is a preliminary hearing, then such final hearing shall be commenced not later than thirty days after the conclusion of such preliminary hearing.”. (f) Section 362(f) of title 11 of the United States Code is amended by— (1) striking out “The” and inserting in lieu thereof “Upon request of a party in interest, the”; and (2) inserting “with or” after “court,”. Sec. 442. (a) Section 363(a) of title 11 of the United States Code is amended by— (1) inserting “whenever acquired” after “equivalents”; and (2) inserting “and includes the proceeds, products, offspring, rents, or profits of property subject to a security interest as provided in section 552(b) of this title, whether existing before or after the commencement of a case under this title” after “interest”. (b) Section 363(b) of title 11 of the United States Code is amended by— (1) striking out “(b)” and inserting in lieu thereof “(b)(1)”; and (2) adding at the end thereof the following new paragraph: “(2) If notification is required under subsection (a) of section 7 A of the Clayton Act (15 U.S.C. 18a) in the case of a transaction under this subsection, then— “(A) notwithstanding subsection (a) of such section, such notification shall be given by the trustee; and “(B) notwithstanding subsection (b) of such section, the required waiting period shall end on the tenth day after the date of the receipt of such notification, unless the court, after notice and hearing, orders otherwise.”. (c) Section 363(e) of title 11 of the United States Code is amended by— (1) inserting “, with or without a hearing,” after “court”; and (2) striking out the last sentence. (d) Section 363(f)(3) of title 11 of the United States Code is amended by striking out “such interest” the second place it appears and inserting in lieu thereof “all liens on such property”. (e) Section 363(h) of title 11 of the United States Code is amended by striking out “immediately before” and inserting in lieu thereof “at the time of”. (f) Section 363(i) of title 11 of the United States Code is amended by striking out “compenation” and inserting in lieu thereof “compensation”. (g) Section 363(k) of title 11 of the United States Code is amended by striking out “if the holder” and inserting in lieu thereof “unless the court for cause orders otherwise the holder of such claim may bid at such sale, and, if the holder”. (h) Section 363(1) of title 11 of the United States Code is amended by— (1) striking out “The trustee” and inserting in lieu thereof “Subject to the provisions of section 365, the trustee”; (2) striking out “conditions” and inserting in lieu thereof “condition”; (3) striking out “a taking” and inserting in lieu thereof “or the taking”; and (4) striking out “interests” and inserting in lieu thereof “interest”. (i) Section 363(n) of title 11 of the United States Code is amended by— (1) striking out “void” and inserting in lieu thereof “avoid”; (2) striking out “voiding” and inserting in lieu thereof “avoiding”; and (3) amending the last sentence to read as follows: “In addition to any recovery under the preceding sentence, the court may grant judgment for punitive damages in favor of the estate and against any such party that entered into such an agreement in willful disregard of this subsection.”. (j) Section 363 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(o) In any hearing under this section— “(1) the trustee has the burden of proof on the issue of adequate protection; and “(2) the entity asserting an interest in property has the burden of proof on the issue of the validity, priority, or extent of such interest.”. Sec. 443. Section 366(a) of title 11 of the United States Code is amended by inserting “of the commencement of a case under this title or” after “basis”. Sec. 444. Section 501(d) of title 11 of the United States Code is amended by inserting “502(e)(2),” before “502(f)”. Sec. 445. (a) Section 502(a) of title 11 of the United States Code is amended by inserting “general” before “partner”. (b) Section 502(b) of title 11 of the United States Code is amended— (1) by inserting “(e)(2),” after “subsections”; (2) by inserting “in lawful currency of the United States” after “claim” the second place it appears; (3) in paragraph (1), by striking out “, and unenforceable against” and inserting in lieu thereof “and”; (4) by striking out paragraph (3) and redesignating paragraphs (4), (5), (6), (7), (8), and (9) as paragraphs (3), (4), (5), (6), (7), and (8), respectively; (5) in paragraph (3), as redesignated by paragraph (5), by inserting “the” after “exceeds”; (6) in paragraph (5), as redesignated by paragraph (5), by— (A) striking out “the claim” and inserting in lieu thereof “such claim”, and (B) striking out the comma after “petition”; and (7) in paragraph (7), as redesignated by paragraph (5), by— (A) inserting “the claim of an employee” before “for damages”; (B) striking out “and” in subparagraph (A)(i) and inserting in lieu thereof “or”; (C) striking out “the” the first place it appears in subparagraph (B) and inserting in lieu thereof “any”; and (D) inserting a comma after “such contract” in subparagraph (B). (c) Section 502(c) of title 11 of the United States Code is amended— (1) in paragraph (1) by— (A) inserting “the” before “fixing”; and (B) striking out “closing” and inserting in lieu thereof “administration”; and (2) in paragraph (2), by— (A) inserting “right to payment arising from a” after “any”; and (B) striking out “if such breach gives rise to a right to payment”. (d) Section 502(e)(1) of title 11, United States Code, is amended— (1) by striking out “and (b)” and inserting in lieu thereof “, (b), and (c)”; and (2) by striking out the commas before and after “or has secured”; (3) in subparagraph (B), by inserting “or disallowance” after “allowance”; and (4) in subparagraph (C), by— (A) striking out “requests subrogation” and inserting in lieu thereof “asserts a right of subrogation to the rights of such creditor”; and (B) striking out “to the rights of such creditor”. (e) Section 502(h) of title 11 of the United States Code is amended by striking out “522(i)” and inserting in lieu thereof “522”. (f) Section 502(j) of title 11 of the United States Code is amended to read as follows: “(j) A claim that has been allowed or disallowed may be reconsidered for cause. A reconsidered claim may be allowed or disallowed according to the equities of the case. Reconsideration of a claim under this subsection does not affect the validity of any payment or transfer from the estate made to a holder of an allowed claim on account of such allowed claim that is not reconsidered, but if a reconsidered claim is allowed and is of the same class as such holder’s claim, such holder may not receive any additional payment or transfer from the estate on account of such holder’s allowed claim until the holder of such reconsidered and allowed claim receives payment on account of such claim proportionate in value to that already received by such other holder. This subsection does not alter or modify the trustee’s right to recover from a creditor any excess payment or transfer made to such creditor.”. Sec. 446. Section 503(b) of title 11 of the United States Code is amended— (1) by striking out the comma after “be allowed”; (2) in paragraph (1)(C), by striking out the comma after “credit”; (3) in paragraph (2), by inserting “(a)” after “330”; (4) in paragraph (3), by inserting a comma after “paragraph (4) of this subsection”; (5) in paragraph (3)(C), by striking out the comma after “case”; (6) in paragraph (5), by striking out “and” after the semicolon; and (7) in paragraph (6), by striking out the period and inserting in lieu thereof “; and”. Sec. 447. Section 505(a) of title 11 of the United States Code is amended in paragraph (2)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 448. (a) Section 506(b) of title 11 of the United States Code is amended by inserting “for” after “provided”. (b) Paragraphs (1) and (2) of section 506(d) of title 11 of the United States Code are amended to read as follows: “(1) such claim was disallowed only under section 502(b)(5) or 502(e) of this title; or “(2) such claim is not an allowed secured claim due only to the failure of any entity to file a proof of such claim under section 501 of this title.”. Sec. 449. (a) Section 507(a) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting a comma after “severance”: (2) in paragraph (4), by striking out “employee benefit plans” and inserting in lieu thereof “an employee benefit plan”; (3) in paragraph (4)(B)(i), by inserting “each” after “covered by”; and (4) in paragraph (7) as redesignated by section 350 by inserting “only” after “units,”. (b) Section 507(c) of title 11 of the United States Code is amended by striking out “shall be treated the same” and inserting in lieu thereof “has the same priority”. Sec. 450. (a) Section 509(a) of title 11 of the United States Code is amended by— (1) striking out “subsections (b) and” and inserting in lieu thereof “subsection (b) or”; and (2) inserting “against the debtor” after “a creditor”. (b) Section 509(b)(1) of title 11 of the United States Code is amended by striking out “of a” and inserting in lieu thereof “of such”. (c) Section 509(c) of title 11 of the United States Code is amended by striking out “section 509 of this title” and inserting in lieu thereof “this section”. Sec. 451. Section 510(b) of title 11 of the United States Code is Claims. amended to read as follows: “(b) For the purpose of distribution under this title, a claim arising from rescission of a purchase or sale of a security of the debtor or of an affiliate of the debtor, for damages arising from the purchase or sale of such a security, or for reimbursement or contribution allowed under section 502 on account of such a claim, shall be subordinated to all claims or interests that are senior to or equal the claim or interest represented by such security, except that if such security is common stock, such claim has the same priority as common stock.”. Sec. 452. Section 521(3) of title 11 of the United States Code, as redesignated in section 305, is amended by inserting “, whether or Ante, p. 352. not immunity is granted under section 344 of this title” after “estate” the second place it appears. Sec. 453. (a) Section 522(a)(2) of title 11 of the United States Code is amended by inserting “or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate” after “petition”. (b) Section 522(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the case is dismissed, property exempted under this section is not liable during or after the case for any debt of the debtor that arose, or that is determined under section 502 of this title as if such debt had arisen, before the commencement of the case, except— “(1) a debt of a kind specified in section 523(a)(1) or 523(a)(5) of this title; or “(2) a debt secured by a lien that is— “(A) (i) not avoided under subsection (f) or (g) of this section or under section 544, 545, 547, 548, 549, or 724(a) of this title; and “(ii) not void under section 506(d) of this title; or Ante, p. 374. “(B) a tax lien, notice of which is properly filed.”. (c) Section 522(e) of title 11 of the United States Code is amended by striking out “exemptions” and inserting in lieu thereof “an exemption”. Sec. 454. (a) Section 523(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by— (A) striking out “obtaining” each place it appears; and (B) striking out “refinance of credit,” and inserting in lieu thereof “refinancing of credit, to the extent obtained”; and (2) by striking out “of higher education” in paragraph (8). (b) Section 523(a)(5) of title 11, United States Code, is amended by— (1) amending the first paragraph thereof by inserting the words “or other order of a court of record” after the words “divorce decree,”; and (2) inserting “, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State” after “Social Security Act”. (c) Section 523(c) of title 11 of the United States Code is amended by inserting “of a kind” after “debt” the first time it appears. Sec. 455. Section 524(a) of title 11 of the United States Code is amended by striking out “any act” each place it appears and inserting in lieu thereof “an act”. Sec. 456. (a) Section 541(a) of title 11 of the United States Code is amended— (1) by striking out “under” the second time it appears; (2) by inserting “and by whomever held” after “located”; (3) in paragraph (3), by inserting “329(b), 363(n),” after “section”; (4) in paragraph (5), by striking out “An” and inserting in lieu thereof “Any”; and (5) in paragraph (6), by striking out “and” and inserting in lieu thereof “or”. (b) Section 541(c) of title 11 of the United States Code is amended— (1) by inserting “in an agreement, transfer instrument, or applicable nonbankruptcy law” after “provision”; and (2) in paragraph (1)(B), by— (A) striking out “the taking” and inserting in lieu thereof “taking”; and (B) inserting “before such commencement” after “custodian”. (c) Section 541(d) of title 11 of the United States Code is amended by inserting “(1) or (2)” after “(a)”. (d) Section 541(e) of title 11 of the United States Code is repealed. Sec. 457. Section 542(e) of title 11 of the United States Code is amended by inserting “to turn over or” before “disclose”. Sec. 458. (a) Section 543(a) of title 11 of the United States Code is amended by inserting “, product, offspring, rents, or profits” after “proceeds”. (b) Section 543(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by— (A) inserting “held by or” after “debtor”; and (B) inserting “, product, offspring, rents, or profits” after “proceeds”; and (2) in paragraph (2), by inserting “, product, offspring, rents, or profits” after “proceeds”. (c) Section 543(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “or proceeds, product, off-spring, rents, or profits of such property” after “property”; and (2) in paragraph (3), by inserting “that has been” before “approved”. (d) Section 543(d) of title 11 of the United States Code is amended to read as follows: “(d) After notice and hearing, the bankruptcy court— “(1) may excuse compliance with subsection (a), (b), or (c) of this section, if the interests of creditors and, if the debtor is not insolvent, of equity security holders would be better served by permitting a custodian to continue in possession, custody, or control of such property, and “(2) shall excuse compliance with subsections (a) and (b)(1) of this section if the custodian is an assignee for the benefit of the debtor’s creditors that was appointed or took possession more than 120 days before the date of the filing of the petition, unless compliance with such subsections is necessary to prevent fraud or injustice.”. Sec. 459. Section 544(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “such” after “obtained”; (2) in paragraph (2), by striking out “; and” and inserting in lieu thereof “, or”; and (3) in paragraph (3), by— (A) inserting “, other than fixtures,” after “property”; and (B) inserting “and has perfected such transfer” after “purchaser” the second place it appears. Sec. 460. Section 545 of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by striking out “is” the first time it appears; (2) in paragraph (1)(C), by striking out “apponted” and inserting in lieu thereof appointed or authorized to take”; and (3) in paragraph (2), by striking out “on the date of of the filing the petition” each place it appears and inserting in lieu thereof “at the time of the commencement of the case”. Sec. 461. (a) Section 546(a) of title 11 of the United States Code is amended in paragraph (1) by striking out “and” and inserting in lieu thereof “or”. (b) Section 546(b) of title 11 of the United States Code is amended by striking out “the trustee under section 544, 545, or” and inserting in lieu thereof “a trustee under sections 544, 545, and”. (c) Section 546(c) of title 11 of the United States Code is amended— (1) by striking out “the trustee” and inserting in lieu thereof “a trustee”; (2) by striking out “right” the first place it appears; (3) by inserting “of goods that has sold goods to the debtor” after “seller” the first place it appears; (4) by striking out “of goods to the debtor” after “business,”; and (5) in paragraph (2), by— (A) inserting “the” after “if’; and (B) striking out “an administrative expense” and inserting in lieu thereof “a claim of a kind specified in section 503(b) of this title” (d) Section 546(e) of title 11 of the United States Code, as redesignated by section 351, is amended by inserting “financial institution” after “stockbroker”. Sec. 462. (a) Section 547(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “including proceeds of such property,” after “law,”; and (2) in paragraph (4), by— (A) striking out “, without penalty”; and (B) inserting “without penalty” after “payable”. (b) Section 547(b) of title 11 of the United States Code is amended— (1) by striking out “of property of the debtor” and inserting in lieu thereof “of an interest of the debtor in property”; and (2) in paragraph (4) by amending subparagraph (B) to read as follows: “(B) between ninety days and one year before the date of the Tiling of the petition, if such creditor at the time of such transfer was an insider;”. (c) Section 547 of title 11 of the United States Code is amended in subsection (c)(2) thereof by striking out subparagraph (B) of such subsection, and by redesignating subparagraphs (C) and (D) thereof as subparagraphs (B) and (C), respectively. (d) Section 547(c) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by inserting “by the debtor” after “incurred”; (2) in paragraph (3), by striking out “of” the first place it appears and inserting in lieu thereof “that creates”; (3) in paragraph (3)(B), by— (A) inserting “on or after “perfected”; and (B) striking out “such security interest attaches” and inserting in lieu thereof “the debtor receives possession of such property”; (4) in paragraph (5), by— (A) striking out “of” the first place it appears and inserting in lieu thereof “that creates”; and (B) striking out “all security interest” and inserting in lieu thereof “all security interests”; and (5) in paragraph (5)(A)(ii), by striking out “and” and inserting in lieu thereof “or”. (e) Section 547(d) of title 11 of the United States Code is amended by— (1) striking out “A” and inserting in lieu thereof “The”; (2) inserting “an interest in” after “transfer of’: (3) inserting “to or for the benefit of a surety” after “transferred”; and (4) inserting “such” after “reimbursement of’. (f) Section 547(e) of title 11 of the United States Code is amended in paragraph (2)(C)(i), by striking out “and” and inserting in lieu thereof “or”. (g) Section 547 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(g) For the purposes of this section, the trustee has the burden of proving the avoidability of a transfer under subsection (b) of this section, and the creditor or party in interest against whom recovery or avoidance is sought has the burden of proving the nonavoidability of a transfer under subsection (c) of this section.”. Sec. 463. (a) Section 548(a) of title 11 of the United States Code is amended— (1) by striking out “if the debtor” and inserting in lieu thereof “if the debtor voluntarily or involuntarily”; (2) in paragraph (1), by striking out “occurred” and inserting in lieu thereof “was made”; and (3) in paragraph (2)(B)(ii), by inserting “or a transaction” after “engaged in business”. (b) Section 548(c) of title 11 of the United States Code is amended by— (1) inserting “or may retain” after “lien on”; and (2) striking out “, may retain any lien transferred,”. (c) (1) Section 548(d)(1) of title 11 of the United States Code is amended by— (A) striking out “becomes so far” and inserting in lieu thereof “is so”; (B) striking out “such transfer could have been” and inserting in lieu thereof “applicable law permits such transfer to be”; and (C) striking out “occurs” and inserting in lieu thereof “is made”. (2) Section 548(d)(2)(B) of title 11 is amended by inserting “financial institution,” after “stockbroker”. Sec. 464. (a) Section 549(a) of title 11 of the United States Code is amended— (1) by striking out “(b) and (c)” and inserting in lieu thereof “(b) or (c)”; and (2) in paragraph (2)(A), by inserting “only” after “authorized”. (3) striking out “that occurs” and inserting in lieu thereof “made”; (4) striking out “is valid against the trustee to the extent of’ and inserting in lieu thereof “to the extent”; and (5) inserting “is” before “given”. (c) Section 549(c) of title 11 of the United States Code is amended Real property. to read as follows: “(c) The trustee may not avoid under subsection (a) of this section a transfer of real property to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value unless a copy or notice of the petition was filed, where a transfer of such real property may be recorded to perfect such transfer, before such transfer is so perfected that a bona fide purchaser of such property, against whom applicable law permits such transfer to be perfected, could not acquire an interest that is superior to the interest of such good faith purchaser. A good faith purchaser without knowledge of the commencement of the case and for less than present fair equivalent value has a lien on the property transferred to the extent of any present value given, unless a copy or notice of the petition was so filed before such transfer was so perfected”. (d) Section 549(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 465. (a) Section 550(a) of title 11 of the United States Code is amended by striking out “549, or 724(a) of this title” and inserting in lieu thereof “549, 553(b), or 724(a) of this title”. (b) Section 550(d) of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by inserting “or accruing to” after “by”; (2) in paragraph (1)(B), by striking out “value” and inserting in lieu thereof “the value of such property”; (3) in paragraph (2), by striking out subparagraphs (D) and (E) and inserting in lieu thereof the following: “(D) payment of any debt secured by a lien on such property that is superior or equal to the rights of the trustee; and”, and (4) in paragraph (2), by redesignating subparagraph (F) as subparagraph (E). (c) Section 550(e)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 466. Section 552(b) of title 11 of the United States Code is amended by— (1) inserting “522,” after “506(c),”; (2) striking out “a secured party enter” and inserting in lieu thereof “an entity entered”; and (3) striking out “except to the extent” and inserting in lieu thereof “except to any extent”. Sec. 467. Section 553(b)(1) of title 11 of the United States Code is amended by striking out “or 365(h)(1)” and inserting in lieu thereof “, 365(h)(2), or 365(i)(2)”. Sec. 468. (a) Subsections (a) and (b) of section 554 of title 11 of the United States Code are each amended by inserting “and benefit” after “value”. (b) Section 554(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the court orders otherwise, any property scheduled under section 521(a)(1) of this title not otherwise administered at the time of the closing of a case is abandoned to the debtor and administered for purposes of section 350 of this title.”. (c) Section 554(d) of title 11 of the United States Code is amended by striking out “section (a) or (b) of”. Sec. 469. Section 555 of title 11 of the United States Code is amended by inserting “, financial institution,” after “stockbroker”. Sec. 470. (a) Chapter 5 of title 11 of the United States Code as amended by section 352 is amended by adding at the end thereof the following new section: “§ 558. Defenses of the estate “The estate shall have the benefit of any defense available to the debtor as against any entity other than the estate, including statutes of limitation, statutes of frauds, usury, and other personal defenses. A waiver of any such defense by the debtor after the commencement of the case does not bind the estate.”. (b) The table of sections for chapter 5 of title 11 of the United States Code is amended by adding at the end thereof the following new item: “558. Defenses of the estate.”. Sec. 471. The table of sections for chapter 7 of title 11 of the United States Code is amended by striking out “Succesor” in the item relating to section 703 and inserting in lieu thereof “Succcssor” Sec. 472. (a) Section 702(b) of title 11 of the United States Code is amended by inserting “held” after “meeting of creditors”. (b) Section 702(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “of a kind” after “claims”; and (2) in paragraph (2), by inserting “a” after “for”. (c) Section 702(d) of title 11 of the United States Code is amended by striking out “subsection (c) of”. Sec. 473. Section 703(b) of title 11 of the United States Code is amended by striking out “specified in section 701(a) of this title. Sections 701(b) and 701(c) of this title apply to such interim trustee” and inserting in lieu thereof “and subject to the provisions of section 701 of this title”. Sec. 474. Section 704 of title 11 of the United States Code as amended by section 311 is amended in paragraph (1), by striking out Ante, p. 355. “up”. Sec. 475. Paragraphs (1) and (2) of section 707 of title 11 of the United States Code are each amended by striking out “and” and inserting in lieu thereof “or”. Sec. 476. (a) Section 723(a) of title 11 of the United States Code is amended by striking out all after “claims” and inserting in lie thereof “which are allowed in a case under this chapter concerning a partnership and with respect to which a general partner of the partnership is personally liable, the trustee shall have a claim against such general partner for the full amount of the deficiency”. (b) Section 723(c) of title 11 of the United States Code is amended by— (1) striking out “such case” each place it appears and inserting in lieu thereof “such partner’s case”; (2) striking out “be property” and inserting in lieu thereof “by property”; and (3) striking out “the kind” and inserting in lieu thereof “a kind”. Sec. 477. (a) Section 724(b) of title 11 of the United States Code is amended— (1) by striking out “taxes” and inserting in lieu thereof “a tax”; (2) in paragraph (2), by— (A) striking out “claims” and inserting in lieu thereof “any holder of a claim of a kind”; (B) striking out “sections” and inserting in lieu thereof “section”; and (C) striking out “and” and inserting in lieu thereof “or”; and (3) in paragraph (3), by inserting “tax” after “allowed”. (b) Section 724(c) of title 11 of the United States Code is amended by— (1) striking out “creditor” and inserting in lieu thereof “holder of a claim”; and (2) striking out “creditors” each place it appears and inserting in lieu thereof “holders”. (c) Section 724(d) of title 11 of the United States Code is amended by— (1) striking out “whose priority” and inserting in lieu thereof “the priority of which”; and (2) inserting ‘ if such lien were” after “the same as”. Sec. 478. Section 725 of title 11 of the United States Cede is amended by inserting “of property of the estate” after “distribution”. Sec. 479. (a) Section 726(b) of title 11 of the United States Code is amended by— (1) striking out “a particular paragraph” and inserting in lieu thereof “each such particular paragraph”; and (2) striking out “administrative expenses” each place it appears and inserting in lieu thereof “a claim allowed under section 503(b) of this title”; and (3) striking out “have” and inserting in lieu thereof “has”. (b) Section 726(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “Administrative expenses” and inserting in lieu thereof “Claims allowed under section 503 of this title”; and (2) in paragraph (2), by striking out “Claims other than for administrative expenses” and inserting in lieu thereof “Allowed claims, other than claims allowed under section 503 of this title,”. Sec. 480. (a) Section 727(a) of title 11 of the United States Code is amended— (1) in paragraph (6)(C), by striking out “property” and inserting in lieu thereof “properly”; (2) in paragraph (7), by inserting “, under this title or under the Bankruptcy Act,” after “another case”; and (3) in paragraph (8), by inserting a comma after “371”. (b) Section 727(c)(1) of title 11 of the United States Code is amended by inserting “the granting of a” after “to”. (c) Section 727(e)(2)(A) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 481. (a) Section 728(c) of title 11 of the United States Code is amended by striking out the comma after “taxable income”. (b) Section 728(d)(2) of title 11 of the United States Code is amended by inserting “otherwise” after “is”, and by striking out “otherwise” after “partner”. Sec. 482. Section 741 of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by— (A) striking out “the debtor” the first time it appears and inserting in lieu thereof “a person”; (B) striking out “holds” and inserting in lieu thereof “has”; (C) striking out “the debtor” the second and third time it appears and inserting in lieu thereof “such person”; and (D) striking out “business as a stockbroker” and inserting in lieu thereof “such person”s business as a stockbroker,”, (2) in paragraph (2)(B), by— (A) striking out “holds” and inserting in lieu thereof “has”; (B) striking out “the debtor” the first place it appears and inserting in lieu thereof “a person”; and (C) by striking out “the debtor” and inserting in lieu thereof “such person” in clause (ii); (3) in paragraph (4)(A)(i), by striking out “and that is” and inserting in lieu thereof “from and that is the lawful”; (4) in paragraph (6)(A)(i), by— (A) inserting a comma after “petition”; and (B) inserting “any” after “except”; and (5) in paragraph (7), by amending such paragraph to read as follows: “(7) ‘securities contract’ means contract for the purchase, sale, or loan of a security, including an option for the purchase or sale of a security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any option entered into on a national securities exchange relating to foreign currencies, or the guarantee of any settlement of cash or securities by or to a securities clearing agency;”; and (6) in paragraph (8) by inserting “a final settlement payment,” after “settlement payment on account,”. Sec. 483. Section 745(a) of title 11 of the United States Code is amended by inserting “the debtor for” after “by”. Sec. 484. (a) Section 752(a) of title 11 of the United States Code is amended by— (1) striking out “customers allowed” and in lieu thereof “customers’ allowed”; (2) inserting “of the kind” after “except claims”; and (3) inserting “such” before “customer property”. (b) Section 752(b)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 485. Section 761 of title 11 of the United States Code is amended in paragraph (10), by striking out “and that is” in subparagraph (A)(viii) and inserting in lieu thereof “from and that is the lawful”. Sec. 486. Section 763(a) of title 11 of the United States Code is amended by— (1) inserting “the debtor for” after “by”; and (2) striking out “deemed to be” and inserting in lieu thereof “treated as”. Sec. 487. Section 764(a) of title 11 of the United States Code is amended by inserting “by the debtor” after “any transfer”. Sec. 488. Section 765(a) of title 11 of the United States Code is amended by striking out “notice under”, and inserting in lieu thereof “notice required by”. Sec. 489. Section 766(j)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 490. Section 901(a) of title 11 of the United States Code is amended by inserting a comma after “1111(b)”. Sec. 491. Section 902(2) of title 11 of the United States Code is amended by striking out “title, legal or equitable, to real property against which has been levied a special assessment or special tax” and by inserting in lieu thereof “legal or equitable title to real property against which a special assessment or special tax has been levied”. Sec. 492. Section 903(2) of title 11 of the United States Code is amended by striking out “to” the first place it appears. Sec. 493. Chapter 9 of title 11 of the United States Code is 11 USC prec 921.. amended by striking out “SUBCHAPER II” and inserting in lieu thereof “SUBCHAPTER II”. Sec. 494. (a) Section 921(c) of title 11 of the United States Code is amended by— (1) striking out “an” and inserting in lieu thereof “any”; and (2) striking out the comma after “petition” the second place it appears, and after “faith”. (b) Section 921 of title 11 of the United States Code is amended by redesignating subsections (e) and (f) as subsections (d) and (e), respectively. (c) Section 921(a) is amended by striking out “109(c)” and inserting in lieu thereof “109(d)”. (d) Section 921(d) of title 11 of the United States Code, as so redesignated, is amended by striking out “subsection (d)” and inserting in lieu thereof “subsection (c)”. Sec. 495. Section 922(a)(1) of title 11 of the United States Code is amended by— (1) inserting “a” before “judicial”; and (2) inserting “action or” before “proceeding”. Sec. 496. Section 927(b) of title 11 of the United States Code is amended by inserting “of a plan under this chapter” after “confirmation”. Sec. 497. Section 943(b) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “to be taken”; and (2) by amending paragraph (5) to read as follows: “(5) except to the extent that the holder of a particular claim has agreed to a different treatment of such claim, the plan provides that on the effective date of the plan each holder of a claim of a kind specified in section 507(a)(1) of this title will receive on account of such claim cash equal to the allowed amount of such claim; and”. Sec. 498. Section 945(a) of title 11 of the United States Code is amended by striking out “execution” and inserting in lieu thereof “implementation”. Sec. 499. Section 1102(b)(1) of title 11 of the United States Code is amended by striking out “order for relief’ and inserting in lieu thereof “commencement of the case”. Sec. 500. (a) Section 1103(b) is amended by— (1) inserting “having an adverse interest” after “entity”; and (2) adding at the end thereof the following: “Representation of one or more creditors of the same class as represented by the committee shall not per se constitute the representation of an adverse interest/’. (b) Section 1103(c) of title 11 of the United States Code is amended— (1) in paragraph (3), by— (A) striking out “recommendations” and inserting in lieu thereof “determinations”; and (B) inserting “or rejections” after “acceptances”; and (2) in paragraph (4), by striking out “, if a trustee or examiner, as the case may be, has not previously been appointed under this chapter in the case”. Sec. 501. Section 1105 of title 11 of the United States Code is amended by striking out “estate, and” and inserting in lieu thereof “estate and of the”. Sec. 502. Section 1106(b) of title 11 of the United States Code is amended by inserting “, except to the extent that the court orders otherwise, before “any other”. Sec. 503. Section 1107(a) of title 11 of the United States Code is amended by inserting “serving in a case” after “on a trustee”. Sec. 504. Section 1108 of title 11 of the United States Code is amended by inserting “, on request of a party in interest and after notice and a hearing, after “court”. Sec. 505. (a) Section 1112(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by striking out “is an involuntary case originally commenced under this chapter” and inserting in lieu thereof “originally was commenced as an involuntary case under this chapter”; and (2) in paragraph (3), by striking but “on other than” and inserting in lieu thereof “other than on”. (b) Section 1112(b) of title 11 of the United States Code is amended— (1) in paragraph (5), by inserting “a request made for” before “additional”; and (2) in paragraph (8), by striking out “and” and inserting in lieu thereof “or”. Sec. 506. (a) Section 1121(c)(3) of title 11 of the United States Code is amended by striking out “the claims or interests of which are” and inserting in lieu thereof “of claims or interests that is”. (b) Section 1121(d) of title 11 of the United States Code is amended by inserting “made within the respective periods specified in subsection (c) of this section” after “interest”. Sec. 507. (a) Section 1123(a) of title 11 of the United States Code is amended— (1) by striking out “A” and inserting in lieu thereof “Notwithstanding any otherwise applicable nonbankruptcy law, a”; (2) in paragraph (1), by— (A) inserting a comma after “classes of claims”; and (B) by striking out “507(a)(6) of this title” and inserting in lieu thereof “507(a)(7) of this title,”; (3) in paragraph (3), by striking out “shall”; (4) in paragraph (5), by striking out “execution” and inserting in lieu thereof “implementation”, and (5) in paragraph (5)(G), by inserting “of’ after “waiving”. (b) Section 1123(b)(2) of title 11 of the United States Code is amended by— (1) striking out “or rejection” and inserting in lieu thereof “, rejection, or assignment”; and (2) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”. Sec. 508. Section 1124 of title 11 of the United States Code is amended— (1) by amending paragraph ()(A) to read as follows: “(A) cures any such default that occurred before or after the commencement of the case under this title, other than a default of a kind specified in section 365(b)(2) of this title;”; Ante, p. 361. and (2) in paragraph (3)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 509. (a) Section 1125(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “, but adequate information need not include such information about any other possible or proposed plan” after “plan”; (2) in paragraph (2)(B), by inserting “the” after “with”; and (3) in paragraph (2)(C), by inserting “or’ after “holders”. (b) Section 1125(d) of title 11 of the United States Code is amended by— (1) inserting “required under subsection (b) of this section” after “statement” the first place it appears; and (2) inserting or otherwise seek review of,” after “appeal from”. (c) Section 1125(e) of title 11 of the United States Code is amended by— (1) inserting “acceptance or rejection of a plan” after “solicits”; and (2) inserting “solicitation of acceptance or rejection of a plan or” after “governing”. Sec. 510. (a) Section 1126(b)(2) of title 11 of the United States Code is amended by striking out “1125(a)(1)” and inserting in lieu thereof “1125(a)”. (b) Section 1126(d) of title 11 of the United States Code is amended by inserting a comma after “such interests” the first place it appears. (c) Section 1126(f) of title 11 of the United States Code is amended by— (1) striking out “is deemed” and inserting in lieu thereof “, and each holder of a claim or interest of such class, are conclusively presumed”; (2) striking out “solicititation” and inserting in lieu thereof “solicitation”; and (3) striking out “interest” and inserting in lieu thereof “interests” (d) Section 1126(g) of title 11 of the United States Code is amended by striking out “any payment or compensation” and inserting in lieu thereof “receive or retain any property”. Sec. 511. (a) Section 1127(a) of title 11 of the United States Code is amended by— (1) inserting “of a plan” after “After the proponent”; and (2) inserting “of such plan” after “modification”. (b) Section 1127(b) of title 11 of the United States Code is amended by striking out “the court, after notice and a hearing, confirms such plan, as modified, under section 1129 of this title, and circumstances warrant such modification” and inserting in lieu thereof “circumstances warrant such modification and the court, after notice and a hearing, confirms such plan as modified, under section 1129 of this title”. Sec. 512. (a) Section 1129(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “chapter.” and inserting in lieu thereof “title.”; (2) in paragraph (2), by striking out “chapter.” and inserting in lieu thereof “title.”; (3) by amending paragraph (4) to read as follows: “(4) Any payment made or to be made by the proponent, by the debtor, or by a person issuing securities or acquiring property under the plan, for services or for costs and expenses in or in connection with the case, or in connection with the plan and incident to the case, has been approved by, or is subject to the approval of, the court as reasonable;”; (4) in paragraph (5)(A)(ii), by striking out the period and inserting in lieu thereof “; and”; (5) in paragraph (5)(B), by striking out “The” and inserting in lieu thereof “the”; (6) in paragraph (6), by inserting “governmental” after “Any”; (7) in paragraph (7), by— (A) inserting “of each impaired class of claims or interests” in lieu of “each class”; and (B) striking out “creditor’s” in subparagraph (B) and inserting in lieu thereof “holder’s”; (8) in paragraph (8), by inserting “of claims or interests” after “each class”; and (9) by amending paragraph (10) to read as follows: “(10) If a class of claims is impaired under the plan, at least one class of claims that is impaired under the plan has accepted the plan, determined without including any acceptance of the plan by any insider.”. (b) Section 1129(b) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by striking out “lien” each place it appears and inserting in lieu thereof “liens”; (2) in paragraph (2)(B)(ii), by inserting “under the plan” after “retain”, and (3) in paragraph (2)(C)(i), by— (A) striking out “claim” and inserting in lieu thereof “interest”; and (B) striking out “and the value” and inserting in lieu thereof “or the value”. (c) Section 1129(d) of title 11 of the United States Code is amended by— (1) inserting “the application of” after “avoidance of” the second place it appears; and (2) adding at the end thereof the following new sentence: “In any hearing under this subsection, the governmental unit has the burden of proof on the issue of avoidance.”. Sec. 513. (a) Section 1141(a) of title 11 of the United States Code is amended by striking out “any creditor or equity security holder of, or general partner in,” and inserting in lieu thereof “any creditor, equity security holder, or general partner in”. (b) Section 1141(c) of title 11 of the United States Code is amended to read as follows: “(c) Except as provided in subsections (d)(2) and (d)(3) of this section and except as otherwise provided in the plan or in the order confirming the plan, after confirmation of a plan, the property dealt with by the plan is free and clear of all claims and interests of creditors, equity security holders, and of general partners in the debtor.”. Sec. 514. (a) The heading for section 1142 of title 11 of the United States Code is amended to read as follows: “§ 1142. Implementation of plan”. (b) The item relating to section 1142 in the table of sections for chapter 11 of title 11 of the United States Code is amended by striking out “Execution” and inserting in lieu thereof “Implementation”. (c) Section 1142(a) of title 11 of the United States Code is amended by striking out the comma after “plan” the second place it appears. (d) Section 1142(b) of title 11 of the United States Code is amended by inserting “a” after “by”. Sec. 515. Section 1144 of title 11 of the United States Code is amended by inserting “if and only” after “revoke such order”. Sec. 516. (a) Section 1145(a) of title 11 of the United States Code is amended— (1) in paragraph (3)(B)(i), by inserting “or 15(d)” after “13” and by inserting “or 78o(d)” after “78m”; (2) by amending paragraph (3)(B)(ii) to read as follows: “(ii) in compliance with the disclosure and reporting provision of such applicable section; and”; and (3) in paragraph (4), by striking out “stockholder” each place it appears and inserting in lieu thereof “stockbroker”. (b) Section 1145(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “and except with respect to ordinary trading transactions of an entity that is not an issuer” after “subsection”; (2) in paragraph (1)(C), by striking out “for” and inserting in lieu thereof “from”; (3) in paragraph (2)(a)(1), by striking out “combination” and inserting in lieu thereof “or combining”; and (4) in paragraph (2)(A)(ii), by striking out “among” and inserting in lieu thereof “from or to”. (c) Section 1145(d) of title 11 of the United States Code is amended by striking out “commercial”. Sec. 517. (a) Section 1146(c) of title 11 of the United States Code is amended by striking out “State or local”. (b) Section 1146(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 518. Section 1166 of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 519. Section 1168(b) of title 11 of the United States Code is amended by inserting a comma after “approval”. Sec. 520. Section 1169(c) of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 521. (a) Section 1170(a) of title 11 of the United States Code is amended by inserting “of all or a portion” after “the abandonment”. (b) Section 1170(c) of title 11 of the United States Code is amended by inserting a comma after “abandonment”. (c) Section U70(d)(2) of title 11 of the United States Code is amended by— (1) striking out “the abandonment of a railroad line” and inserting in lieu thereof “such abandonment”; and (2) striking out “termination” each place it appears and inserting in lieu thereof “suspension”. Sec. 522. Section 1171(b) of title 11 of the United States Code is amended by striking out “such” and inserting in lieu thereof “the same”. Sec. 523. Section 1173(a)(4) of title 11 of the United States Code is amended by striking out “compatible” and inserting in lieu thereof “consistent”. Sec. 524. Section 1301(c)(3) of title 11 of the United States Code is amended by inserting “continuation of’ after “by”. Sec. 525. (a) Section 1302(b) of title 11 of the United States Code as Ante, p. 356. amended by section 314 is amended by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively and by inserting after paragraph (2) the following new paragraph: “(3) dispose of, under regulations issued by the Director of the Administrative Office of the United States Courts, moneys received or to be received in a case under chapter XIII of the Bankruptcy Act; and”. (b) Section 1302(e) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “fix” and inserting in lieu thereof “set for such individual”; (2) in paragraph (1)(A), by striking out “for such individual”; and (3) in paragraph (2)(A), by— (A) striking out “of” and inserting in lieu thereof “received by”; and (B) striking out “upon all payments” and inserting in lieu thereof “of all such payments made”. Sec. 526. Section 1304(b) of title 11 of the United States Code is amended by striking out the comma after “of the debtor”. Sec. 527. (a) Section 1307(b) of title 11 of the United States Code is amended by inserting a comma after “time”. (b) Section 1307(c) of title 11 of the United States Code as amended by section 315 is amended— Ante, p. 356. (1) in paragraph (5), as redesignated by inserting “a request made for” before “additional”; (2) in paragraph (7), as redesignated by striking out “and” after the semicolon and inserting in lieu thereof “or”; and (3) in paragraph (8), as redesignated by inserting “other than completion of payments under the plan” after ‘In the plan”. Sec. 528. (a) Section 1322(a)(2) of title 11 of the United States Code is amended by inserting a comma after “payments”. (b) Section 1322(b) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “, or leave unaffected the rights of holders of any class of claims” before the semicolon; (2) in paragraph (4), by inserting “other” after “claim or any”; (3) in paragraph (7), by— (A) inserting “subject to section 365 of this title,” before “provide”; (B) striking out “or rejection” and inserting in lieu thereof rejection, or assignment”; and (C) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”; and (4) in paragraph (8), by striking out “any”. Sec. 529. Section 1324 of title 11 of the United States Code is amended by striking out “the” the second place it appears. Sec. 530. Section 1325(a)(1) of title 11 of the United States Code is amended by inserting “the” before “other”. Sec. 531. Section 1326(b)(2) of title 11 of the United States Code as amended by section 318 is amended by inserting “of this title” after Ante, p. 357. “1302(d)”. Sec. 532. Section 1328(e) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “by the debtor” after “obtained”; and (2) in paragraph (2), by striking out “knowledge of such fraud came to the requesting party” and inserting in lieu thereof “the requesting party did not know of such fraud until”. Sec. 533. Section 1329(a) of title 11 of the United States Code is amended— (1) by inserting “of the plan” after “confirmation”; (2) by striking out “a plan” and inserting in lieu thereof “such plan”; and (3) in paragraph (3), by striking out the comma. Sec. 534. Section 151302(a) of title 11 of the United States Code is amended by inserting “, or shall appoint a disinterested person to serve,” after “The United States trustee shall serve”. Subtitle J— Collective Bargaining Agreements Sec. 541. (a) Title 11 of the United States Code is amended by adding after section 1112 the following new section: “§ 1113. Rejection of collective bargaining agreements “(a) The debtor in possession, or the trustee if one has been appointed under the provisions of this chapter, other than a trustee 11 USC 1161. 45 USC 151. in a case covered by subchapter IV of this chapter and by title I of the Railway Labor Act, may assume or reject a collective bargaining agreement only in accordance with the provisions of this section. “(b) (1) Subsequent to filing a petition and prior to filing an application seeking rejection of a collective bargaining agreement, the debtor in possession or trustee (hereinafter in this section ‘trustee’ shall include a debtor in possession), shall— “(A) make a proposal to the authorized representative of the employees covered by such agreement, based on the most complete and reliable information available at the time of such proposal, which provides for those necessary modifications in the employees benefits and protections that are necessary to permit the reorganization of the debtor and assures that all creditors, the debtor and all of the affected parties are treated fairly and equitably; and “(B) provide, subject to subsection (d)(3), the representative of the employees with such relevant information as is necessary to evaluate the proposal. “(2) During the period beginning on the date of the making of a proposal provided for in paragraph (1) and ending on the date of the hearing provided for in subsection (d)(1), the trustee shall meet, at reasonable times, with the authorized representative to confer in good faith in attempting to reach mutually satisfactory modifications of such agreement. “(c) The court shall approve an application for rejection of a collective bargaining agreement only if the court finds that— “(1) the trustee has, prior to the hearing, made a proposal that fulfills the requirements of subsection (b)(1); “(2) the authorized representative of the employees has refused to accept such proposal without good cause; and “(3) the balance of the equities clearly favors rejection of such agreement. “(d) (1) Upon the filing of an application for rejection the court shall schedule a hearing to be held not later than fourteen days after the date of the filing of such application. All interested parties may appear and be heard at such hearing. Adequate notice shall be provided to such parties at least ten days before the date of such nearing. The court may extend the time for the commencement of such hearing for a period not exceeding seven days where the circumstances of the case, and the interests of justice require such extension, or for additional periods of time to which the trustee and representative agree. “(2) The court shall rule on such application for rejection within thirty days after the date of the commencement of the hearing. In the interests of justice, the court may extend such time for ruling for such additional period as the trustee and the employees’ representative may agree to. If the court does not rule on such application within thirty days after the date of the commencement of the hearing, or within such additional time as the trustee and the employees’ representative may agree to, the trustee may terminate or alter any provisions of the collective bargaining agreement pending the ruling of the court on such application. “(3) The court may enter such protective orders, consistent with Confidentiality. the need of the authorized representative of the employee to evaluate the trustee’s proposal and the application for rejection, as may be necessary to prevent disclosure of information provided to such representative where such disclosure could compromise the position of the debtor with respect to its competitors in the industry in which it is engaged. “(e) If during a period when the collective bargaining agreement continues in effect, and if essential to the continuation of the debtor’s business, or in order to avoid irreparable damage to the estate, the court, after notice and a hearing, may authorize the trustee to implement interim changes in the terms, conditions, wages, benefits, or work rules provided by a collective bargaining agreement. Any hearing under this paragraph shall be scheduled in accordance with the needs of the trustee. The implementation of such interim changes shall not render the application for rejection moot. “(f) No provision of this title shall be construed to permit a trustee to unilaterally terminate or alter any provisions of a collective bargaining agreement prior to compliance with the provisions of this section.”. (b) The table of sections for chapter 11 of title 11, United States Code, is amended by inserting after the item relating to section 1112 the following new item: “1113. Rejection of collective bargaining agreements.”. (c) The amendments made by this section shall become effective Effective date. 11 USC 1113 note. upon the date of enactment of this Act; provided that this section shall not apply to cases filed under title 11 of the United States Code which were commenced prior to the date of enactment of this section. Subtitle K— Miscellaneous Sec. 551. If any provision of this title or any amendment made by Provisions held invalid. 11 USC 101 note. this title, or the application thereof to any person or circumstance is held invalid, the provisions of every other part, and their application shall not be affected thereby. Sec. 552. Notwithstanding the provisions of section 8331(22) of title 5, United States Code, or any other provision of law, for purposes of section 8339(n) of title 5, United States Code, any individual appointed under section 34 of the Bankruptcy Act who served as a United States bankruptcy judge for Ante, p. 343. the district of Oregon or for the Central district of California until March 31, 1984, shall receive an annuity computed with respect to his service as a referee in bankruptcy and as a bankruptcy judge, and his military service (not exceeding five years) creditable under section 8332 of title 5, United States Code, by multiplying 2¼ per centum of his average annual pay by the years of that service. Sec. 553. (a) Except as otherwise provided in this section the amendments made by this title shall become effective to cases filed 90 days after the date of enactment of this Act. (b) The amendments made by section 426(b) shall become effective upon the date of enactment of this Act. (c) The amendments made by subtitle J, shall become effective as provided in section 541(c).Pub. L. 98–353 § 401 · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(43)
Pub. L. 98–353, § 401, redesignated former par. (43), originally par. (41), as (44)
Redesignated · 11 U.S.C. § 101(43)
Pub. L. 98–353, § 401, added another par. (43) which was redesignated (47)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 98–353, § 401, redesignated former par. (43), originally par. (41), as (44), and added another par. (43) which was redesignated (47).Enacted provision · exact public law section
Sec. 401. Title 11, United States Code, section 101 is hereby amended by— (1) redesignating paragraph (43), as redesignated by section Ante, p. 364. Real property. 391, as paragraph (44); and (2) adding the following paragraph after paragraph (42), as redesignated in section 391: “(43) ‘timeshare plan’ means and shall include that interest purchased in any arrangement, plan, scheme, or similar device, but not including exchange programs, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, right to use agreement, or by any other means, whereby a purchaser, in exchange for consideration, receives a right to use accommodations, facilities, or recreational sites, whether improved or unimproved, for a specific period of time less than a full year during any given year, but not necessarily for consecutive years, and which extends for a period of more than three years. A ‘timeshare interest’ is that interest purchased in a timeshare plan which grants the purchaser the right to use and occupy accommodations, facilities, or recreational sites, whether improved or unimproved, pursuant to a timeshare plan.”.Pub. L. 98–353 § 421(j)(6) · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(44)
Pub. L. 98–353, § 421(j)(6), added par. (44). Former par. (44) originally was par. (41) and was redesignated successively as (43), again as (44), and again as (48)
Source evidence
Code amendment note
Par. (44). Pub. L. 98–353, § 421(j)(6), added par. (44). Former par. (44) originally was par. (41) and was redesignated successively as (43), again as (44), and again as (48).Enacted provision · exact public law section
(6) by inserting after paragraph (43) the following: “(44) ‘State’ includes the District of Columbia and Puerto Rico, except for the purpose of defining who may be a debtor under chapter 9 of this title;”; and 11 USC 901 el seq.Pub. L. 98–353 title III · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(45); 11 U.S.C. § 101(46)
Pub. L. 98–353, §§ 391(1), 421(j)(1), redesignated successively former pars. (39) and (40) as (41) and (42), and again as (45) and (46), respectively
Source evidence
Code amendment note
Pars. (45), (46). Pub. L. 98–353, §§ 391(1), 421(j)(1), redesignated successively former pars. (39) and (40) as (41) and (42), and again as (45) and (46), respectively.Enacted provision · exact public law
TITLE III— AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE Subtitle A— Consumer Credit Amendments Sec. 301. Section 109 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Notwithstanding any other provision of this section, no individual may be a debtor under this title who has been a debtor in a case pending under this title at any time in the preceding 180 days if— “(1) the case was dismissed by the court for willful failure of the debtor to abide by orders of the court, or to appear before the court in proper prosecution of the case; or “(2) the debtor requested and obtained the voluntary dismissal of the case following the filing of a request for relief from the automatic stay provided by section 362 of this title.”. Sec. 302. Section 342 of title 11, United States Code, is amended— (1) by inserting “(a)” before “There shall be given”, and (2) by adding at the end thereof the following new subsection: “(b) Prior to the commencement of a case under this title by an individual whose debts are primarily consumer debts, the clerk shall give written notice to such individual that indicates each chapter of this title under which such individual may proceed.”. Sec. 303. Section 349(a) of title 11, United States Code, is amended by inserting before the period at the end thereof nor does the dismissal of a case under this title prejudice the debtor with regard to the filing of a subsequent petition under this title, except as Supra. provided in section 109(f) of this title”. Sec. 304. Section 362 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(h) An individual injured by any willful violation of a stay provided by this section shall recover actual damages, including costs and attorneys’ fees, and, in appropriate circumstances, may recover punitive damages.”. Sec. 305. Section 521 of title 11, United States Code, is amended— (1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, (2) in paragraph (1) by inserting “a schedule of current income and current expenditures,” after “liabilities,”, and (3) by inserting after paragraph (1) the following new paragraph: “(2) if an individual debtor’s schedule of assets and liabilities includes consumer debts which are secured by property of the estate— “(A) within thirty days after the date of the filing of a petition under chapter 7 of this title or on or before the date of the meeting of creditors, whichever is earlier, or within such additional time as the court, for cause, within such period fixes, the debtor shall file with the clerk a statement of his intention with respect to the retention or surrender of such property and, if applicable, specifying that such property is claimed as exempt, that the debtor intends to redeem such property, or that the debtor intends to reaffirm debts secured by such property; “(B) within forty-five days after the filing of a notice of intent under this section, or within such additional time as the court, for cause, within such forty-five day period fixes, the debtor shall perform his intention with respect to such property, as specified by subparagraph (A) of this paragraph; and “(C) nothing in subparagraphs (A) and (B) of this paragraph shall alter the debtor’s or the trustee’s rights with regard to such property under this title;”. Sec. 306. (a) Section 522(b) of title 11, United States Code, is amended by striking out “Notwithstanding” and all that follows through “either—” and inserting in lieu thereof the following: “Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (1) or, in the alternative, paragraph (2) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Bankruptcy Rules, one 11 USC app. debtor may not elect to exempt property listed in paragraph (1) and the other debtor elect to exempt property listed in paragraph (2) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (1), where such election is permitted under the law of the jurisdiction where the case is filed. Such property is—”. (b) Section 522(d)(3) of title 11, United States Code, is amended by inserting “or $4,000 in aggregate value” after “item”. (c) Section 522(d)(5) of title 11, United States Code, is amended to read as follows: “(5) The debtor’s aggregate interest in any property, not to exceed in value $400 plus up to $3,750 of any unused amount of the exemption provided under paragraph (1) of this subsection”. (d) Section 522(m) of title 11, United States Code, is amended to read as follows: “(m) Subject to the limitation in subsection (b), this section shall apply separately with respect to each debtor in a joint case.”. Sec. 307. (a) Section 523(a)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “or” at the end thereof, (2) in subparagraph (B) by inserting “or” at the end thereof, and (3) by adding at the end thereof the following new subparagraph: “(C) for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $500 for ‘luxury goods or services’ incurred by an individual debtor on or within forty days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within twenty days before the order for relief under this title, are presumed to be nondischargeable; ‘luxury goods or services’ do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.);”. (b) Section 523(d) of title 11, United States Code, is amended to read as follows: “(d) If a creditor requests a determination of dischargeability of a consumer debt under subsection (a)(2) of this section, and such debt is discharged, the court shall grant judgment in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding if the court finds that the position of the creditor was not substantially justified, except that the court shall not award such costs and fees if special circumstances would make the award unjust.”. Sec. 308. (a) Section 524(a)(2) of title 11, United States Code, is amended by striking out “or from property of the debtor,”. (b) Section 524(c) of title 11, United States Code, is amended— (1) by striking out paragraph (2), (2) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively, and (3) by inserting after paragraph (1) the following new paragraphs: “(2) such agreement contains a clear and conspicuous statement which advises the debtor that the agreement may be rescinded at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of rescission to the holder of such claim; “(3) such agreement has been filed with the court and, if applicable, accompanied by a declaration or an affidavit of the attorney that represented the debtor during the course of negotiating an agreement under this subsection, which states that such agreement— “(A) represents a fully informed and voluntary agreement by the debtor; and “(B) does not impose an undue hardship on the debtor or a dependent of the debtor; “(4) the debtor has not rescinded such agreement at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of recission to the holder of such claim;” and (4) by amending paragraph (6), as so redesignated, to read as follows: “(6) (A) in a case concerning an individual who was not represented by an attorney during the course of negotiating an agreement under this subsection, the court approves such agreement as— “(i) not imposing an undue hardship on the debtor or a dependent of the debtor; and “(ii) in the best interest of the debtor. “(B) Subparagraph (A) shall not apply to the extent that such debt is a consumer debt secured by real property.”. (c) Section 524(d)(2) of title 11, United States Code, is amended by striking out “subsection (c)(4)” and inserting in lieu thereof “subsection (c)(6)”. (e) Section 524 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Nothing contained in subsection (c) or (d) of this section prevents a debtor from voluntarily repaying any debt.”. Sec. 309. Section 525 of title 11, United States Code, is amended— (1) by inserting “(a)” before “Except”, (2) by inserting “the” before “Perishable”, and (3) by adding at the end thereof the following new subsection: Employment and unemployment. Discrimination, prohibition. 11 USC note prec. 101. “(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt— “(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act; “(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or “(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.”. Sec. 310. Section 547(c) of title 11, United States Code, is amended— (1) in paragraph (5) by striking out “or” at the end thereof, (2) in paragraph (6) by striking out the period at the end thereof and inserting in lieu thereof “; or”, and (3) by adding at the end thereof the following new paragraph: “(7) if, in a case filed by an individual debtor whose debts are primarily consumer debts, the aggregate value of all property that constitutes or is affected by such transfer is less than $600.”. Sec. 311. (a) Section 704 of title 11, United States Code, is amended— (1) by redesignating paragraphs (3), (4), (5), (6), (7), and (8) as paragraphs (4), (5), (6), (7), (8), and (9), respectively, and (2) by inserting after paragraph (2) the following new paragraph: “(3) ensure that the debtor shall perform his intention as specified in section 521(2)(B) of this title;”. Ante, p. 352. (b) (1) Section 1106(a)(1) of title 11, United States Code, is amended by striking out “704(4), 704(6), 704(7), and 704(8)” and inserting in lieu thereof “704(5), 704(7), 704(8), and 704(9)”. (2) Section 1304(c) of title 11, United States Code, is amended by striking out “section 704(7)” and inserting in lieu thereof “section 704(8)”. (3) Section 15103(f) of title 11, United States Code, is amended by striking out “704(8),” and inserting in lieu thereof “704(9),”. (4) Section 151301(b)(1) of title 11, United States Code, is amended 11 USC 151302. by striking out “and 704(8)” and inserting in lieu thereof “, 704(7), and 704(9)”. Sec. 312. Section 707 of title 11, United States Code, is amended— (1) by inserting “(a)” before “The court may” and (2) by adding at the end thereof the following new subsection: “(b) After notice and a hearing, the court, on its own motion and not at the request or suggestion of any party in interest, may dismiss a case filed by an individual debtor under this chapter whose debts are primarily consumer debts if it finds that the granting of relief would be a substantial abuse of the provisions of this chapter. There shall be a presumption in favor of granting the relief requested by the debtor.”. Sec. 313. Section 1301 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(d) Twenty days after the filing of a request under subsection (c)(2) of this section for relief from the stay provided by subsection (a) of this section, such stay is terminated with respect to the party in interest making such request, unless the debtor or any individual that is liable on such debt with the debtor files and serves upon such party in interest a written objection to the taking of the proposed action.”. Sec. 314. Section 1302(b) of title 11, United States Code, is amended— (1) by amending paragraph (1) to read as follows: “(1) perform the duties specified in sections 704(2), 704(3), 704(4), 704(5), 704(6), 704(7), and 704(9) of this title;”; (2) in paragraph (2) by striking out “and” at the end thereof, (3) in paragraph (3) by striking out the period and inserting in lieu thereof “; and”, and (4) by adding at the end thereof the following new paragraph: “(4) ensure that the debtor commences making timely payments under section 1326 of this title.”. Sec. 315. Section 1307(c) of title 11, United States Code, is amended— (1) by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), respectively, and (2) by inserting after paragraph (3) the following new paragraph: “(4) failure to commence making timely payments under section 1326 of this title;”. Sec. 316. Section 1322(b)(1) of title 11, United States Code, is amended to read as follows: “(1) designate a class or classes of unsecured claims, as provided in section 1122 of this title, but may not discriminate unfairly against any class so designated; however, such plan may treat claims for a consumer debt of the debtor if an individual is liable on such consumer debt with the debtor differently than other unsecured claims;”. Sec. 317. Section 1325 of title 11, United States Code, is amended— (1) in subsection (a) by striking out “The” and inserting in lieu thereof “Except as provided in subsection (b), the”, (2) by redesignating subsection (b) as subsection (c), and (3) by inserting after subsection (a) the following new subsection: “(b) (1) If the trustee or the holder of an allowed unsecured claim objects to the confirmation of the plan, then the court may not approve the plan unless, as of the effective date of the plan— “(A) the value of the property to be distributed under the plan on account of such claim is not less than the amount of such claim; or “(B) the plan provides that all of the debtor’s projected disposable income to be received in the three-year period beginning on the date that the first payment is due under the plan will be applied to make payments under the plan. “(2) For purposes of this subsection, disposable income’ means income which is received by the debtor and which is not reasonably necessary to be expended— “(A) for the maintenance or support of the debtor or a dependent of the debtor; or “(B) if the debtor is engaged in business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business.”. Sec. 318. (a) Section 1326 of title 11, United States Code, is amended— (1) by redesignating subsections (a) and (b) as subsections (h) and (c), respectively, and (2) by inserting before such subsections the following new subsection: “(a) (1) Unless the court orders otherwise, the debtor shall commence making the payments proposed by a plan within 30 days after the plan is filed. “(2) A payment made under this subsection shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan. If a plan is not confirmed, the trustee shall return any such payments to the debtor, after deducting any unpaid claim allowed under section 503(b) of this title.”. (b) Section 15103(f) of title 11, United States Code, is amended by striking out “1326(a),” and inserting in lieu thereof “1326(b),”. Sec. 319. Section 1329(a) of title 11, United States Code, is amended by striking out “At” and all that follows through “modified to—”, and inserting in lieu thereof the following: “At any time after confirmation but before the completion of payments under a plan, the plan may be modified, upon request of the debtor, the trustee, or the holder of an allowed unsecured claim, to—”. Sec. 320. The Supreme Court shall prescribe general rules implementing Supreme Court of U.S. 28 USC 2075 note. Ante, p. 355. the practice and procedure to be followed under section 707(b) of title 11, United States Code. Section 2075 of title 28, United States Code, shall apply with respect to the general rules prescribed under this section. Sec. 321. Rule 2002 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision: “(n) In a voluntary case commenced under the Code by an individual debtor whose debts are primarily consumer debts, the clerk, or some other person as the court may direct, shall give the trustee and all creditors notice by mail of the order for relief not more than 20 days after the entry of such order.”. Sec. 322. Official Bankruptcy Form No. 1, referred to in Rule 1002 of the Bankruptcy Rules, is amended— 11 USC app. (1) by inserting after paragraph (5) the following: “(6) [If petitioner is an individual whose debts are primarily consumer debts.] Petitioner is aware that [he or she] may proceed under chapter 7 or 13 of title 11, United States Code, 11 USC 701 et seq.. 1301 et seq. understands the relief available under each such chapter, and chooses to proceed under chapter 7 of such title. “(7) [If petitioner is an individual whose debts are primarily consumer debts and such petitioner is represented by an attorney.] A declaration or an affidavit in the form of Exhibit ‘B’ is attached to and made a part of this petition.”, and (2) by inserting after Exhibit “A” at the end thereof the following new exhibit: “Exhibit ‘B’ “[If petitioner is an individual whose debts are primarily consumer debts, this Exhibit ‘B’ shall be completed and attached to the petition pursuant to paragraph (7) thereof.] Sec. 323. Section 408(c) of the Act of November 6, 1978 (Public Law 95–598; 92 Stat. 2687(c)), as amended by the Act of November 28, 1983 (Public Law 98–166; 97 Stat. 1071), is amended by striking out “September 30, 1984” and inserting in lieu thereof “September 30, 1986”. Sec. 324. Section 1103(b) of title 11, United States Code, is amended by striking out “A person” and inserting in lieu thereof “An attorney or accountant” Subtitle B— Amendments Relating to Grain Storage Facility Bankruptcy Sec. 350. Section 507(a) of title 11, United States Code, is amended— (1) by striking out “(5) Fifth” and inserting in lieu thereof “(6) Sixth” (2) by striking out “(6) Sixth” and inserting in lieu thereof “(7) Seventh”; and (3) by adding after paragraph (4) the following: “(5) Fifth, allowed unsecured claims of persons— “(A) engaged in the production or raising of grain, as Post, p. 359. defined in section 557(b)(1) of this title, against a debtor who owns or operates a grain storage facility, as defined in section 557(b)(2) of this title, for grain or the proceeds of grain, or “(B) engaged as a United States fisherman against a debtor who has acquired fish or fish produce from a fisherman through a safe or conversion, and who is engaged in operating a fish produce storage or processing facility— but only to the extent of $2,000 for each such individual.”. Sec. 351. Section 546 of title 11, United States Code, is amended— (1) in the first sentence of subsection (c) thereof, by striking out “The” and inserting in lieu thereof “Except as provided in subsection (d) of this section, the”; and (2) by redesignating subsection (d) as subsection (e); and (3) by inserting after subsection (c) the following: In the case of a seller who is a producer of grain sold to a grain storage facility, owned or operated by the debtor, in the ordinary course of such seller’s business (as such terms are defined Post, p. 359. in section 557 of this title) or in the case of a United States fisherman who has caught fish sold to a fish processing facility owned or operated by the debtor in the ordinary course of such fisherman’s business, the rights and powers of the trustee under sections 544(a), 545, 547, and 549 of this title are subject to any statutory or common law right of such producer or fisherman to reclaim such grain or fish if the debtor has received such grain or fish while insolvent, but— “(1) such producer or fisherman may not reclaim any grain or Claims. fish unless such producer or fisherman demands, in writing, reclamation of such grain or fish before ten days after receipt thereof by the debtor; and “(2) the court may deny reclamation to such a producer or fisherman with a right of reclamation that has made such a demand only if the court secures such claim by a lien.”. Sec. 352. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 557. Expedited determination of interests in, and abandonment or other disposition of grain assets “(a) This section applies only in a case concerning a debtor that owns or operates a grain storage facility and only with respect to grain and the proceeds of grain. This section does not affect the application of any other section of this title to property other than grain and proceeds of grain. “(b) In this section— “(1) ‘grain’ means wheat, corn, flaxseed, grain sorghum, barley, oats, rye, soybeans, other dry edible beans, or rice; “(2) ‘grain storage facility’ means a site or physical structure regularly used to store grain for producers, or to store grain acquired from prodùcers for resale; and “(3) ‘producer’ means an entity which engages in the growing of grain. “(c) (1) Notwithstanding sections 362, 363, 365, and 554 of this title, on the court’s own motion the court may, and on the request of the trustee or an entity that claims an interest in grain or the proceeds of grain the court shall, expedite the procedures for the determination of interests in and the disposition of grain and the proceeds of grain, by shortening to the greatest extent feasible such time periods as are otherwise applicable for such procedures and by establishing, by order, a timetable having a duration of not to exceed 120 days for the completion of the applicable procedure specified in subsection (d) of this section. Such time periods and such timetable may be modified by the court, for cause, in accordance with subsection (f) of this section. “(2) The court shall determine the extent to which such time periods shall be shortened, based upon— “(A) any need of an entity claiming an interest in such grain or the proceeds of grain for a prompt determination of such interest; “(B) any need of such entity for a prompt disposition of such grain; “(C) the market for such grain; “(D) the conditions under which such grain is stored; “(E) the costs of continued storage or disposition of such grain; “(F) the orderly administration of the estate; “(G) the appropriate opportunity for an entity to assert an interest in such grain; and “(H) such other considerations as are relevant to the need to expedite such procedures in the case. “(d) The procedures that may be expedited under subsection (c) of this section include— “(1) the filing of and response to— “(A) a claim of ownership; “(B) a proof of claim; “(C) a request for abandonment; “(D) a request for relief from the stay of action against property under section 362(a) of this title; “(E) a request for determination of secured status; “(F) a request for determination of whether such grain or the proceeds of grain— “(i) is property of the estate; “(ii) must be turned over to the estate; or “(iii) may be used, sold, or leased; and “(G) any other request for determination of an interest in such grain or the proceeds of grain; “(2) the disposition of such grain or the proceeds of grain, before or after determination of interests in such grain or the proceeds of grain, by way of— “(A) sale of such grain; “(B) abandonment; “(C) distribution; or “(D) such other method as is equitable in the case; “(3) subject to sections 701, 702, 703, 1104, and 1302 of this title, the appointment of a trustee or examiner and the retention and compensation of any professional person required to assist with respect to matters relevant to the determination of interests in or disposition of such grain or the proceeds of grain; and “(4) the determination of any dispute concerning a matter specified in paragraph (1), (2), or (3) of this subsection. “(e) (1) Any governmental unit that has regulatory jurisdiction over the operation or liquidation of the debtor or the debtor’s business shall be given notice of any request made or order entered under subsection (c) of this section. “(2) Any such governmental unit may raise, and may appear and be heard on, any issue relating to grain or the proceeds of grain in a case in which a request is made, or an order is entered, under subsection (c) of this section. “(3) The trustee shall consult with such governmental unit before taking any action relating to the disposition of grain in the possession, custody, or control of the debtor or the estate. “(f) The court may extend the period for final disposition of grain or the proceeds of grain under this section beyond 120 days if the court finds that— “(1) the interests of justice so require in light of the complexity of the case; and “(2) the interests of those claimants entitled to distribution of grain or the proceeds of grain will not be materially injured by such additional delay. “(g) Unless an order establishing an expedited procedure under subsection (c) of this section, or determining any interest in or approving any disposition of grain or the proceeds of grain, is stayed pending appeal— “(1) the reversal or modification of such order on appeal does not affect the validity of any procedure, determination, or disposition that occurs before such reversal or modification, whether or not any entity knew of the pendency of the appeal; and “(2) neither the court nor the trustee may delay, due to the appeal of such order, any proceeding in the case in which such order is issued. “(h) (1) The trustee may recover from grain and the proceeds of grain the reasonable and necessary costs and expenses allowable under section 503(b) of this title attributable to preserving or disposing of grain or the proceeds of grain, but may not recover from such grain or the proceeds of grain any other costs or expenses. “(2) Notwithstanding section 326(a) of this title, the dollar amounts of money specified in such section include the value, as of the date of disposition, of any grain that the trustee distributes in kind. “(i) In all cases where the quantity of a specific type of grain held by a debtor operating a grain storage facility exceeds ten thousand bushels, such grain shall be sold by the trustee and the assets thereof distributed in accordance with the provisions of this section.”. (b) The table of sections of chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: ‘557 Expedited determination of interests in and disposition of grain.”. Sec. 353. Section 901(a) of title 11, United States Code, is amended by inserting “557,” after “553,”. Sec. 354. Rule 3001 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision “(g) To the extent not inconsistent with the United States Warehouse Act or applicable State law, a warehouse receipt, scale ticket, or similar document of the type routinely issued as evidence of title by a grain storage facility, as defined in section 557 of title 11, shall constitute prima facie evidence of the validity and amount of a claim of ownership of a quantity of grain ”. Subtitle C— Leasehold Management Amendments Sec. 361. This subtitle may be cited as the “Leasehold Management Bankruptcy Amendments Act of 1983”. Sec. 362. (a) Section 365 of title 11, United States Code, is amended by amending subsections (a), (b), (c), and (d) to read as follows: “(a) Except as provided in sections 765 and 766 of this title and in subsections (b), (c), and (d) of this section, the trustee, subject to the court’s approval, may assume or reject any executory contract or unexpired lease of the debtor. “(b) (1) If there has been a default in an executory contract or unexpired lease of the debtor, the trustee may not assume such contract or lease unless, at the time of assumption of such contract or lease, the trustee— “(A) cures, or provides adequate assurance that the trustee will promptly cure, such default; “(B) compensates, or provides adequate assurance that the trustee will promptly compensate, a party other than the debtor to such contract or lease, for any actual pecuniary loss to such party resulting from such default; and “(C) provides adequate assurance of future performance under such contract or lease. “(2) Paragraph (1) of this subsection does not apply to a default that is a breach of a provision relating to— “(A) the insolvency or financial condition of the debtor at any time before the closing of the case; “(B) the commencement of a case under this title; or “(C) the appointment of or taking possession by a trustee in a case under this title or a custodian before such commencement. “(3) For the purposes of paragraph (1) of this subsection and paragraph (2)(B) of subsection (t), adequate assurance of future performance of a lease of real property in a shopping center includes adequate assurance— “(A) of the source of rent and other consideration due under such lease, and in the case of an assignment, that the financial condition and operating performance of the proposed assignee and its guarantors, if any, shall be similar to the financial condition and operating performance of the debtor and its guarantors, if any, as of the time the debtor became the lessee under the lease; “(B) that any percentage rent due under such lease will not decline substantially; “(C) that assumption or assignment of such lease is subject to all the provisions thereof, including (but not limited to) provisions such as a radius, location, use, or exclusivity provision, and will not breach any such provision contained in any other lease, financing agreement, or master agreement relating to such shopping center; and “(D) that assumption or assignment of such lease will not disrupt any tenant mix or balance in such shopping center. “(4) Notwithstanding any other provision of this section, if there has been a default in an unexpired lease of the debtor, other than a default of a kind specified in paragraph (2) of this subsection, the trustee may not require a lessor to provide services or supplies incidental to such lease before assumption of such lease unless the lessor is compensated under the terms of such lease for any services and supplies provided under such lease before assumption of such lease. “(c) The trustee may not assume or assign any executory contract or unexpired lease of the debtor, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties, if— “(1) (A) applicable law excuses a party, other than the debtor, to such contract or lease from accepting performance from or rendering performance to an entity other than the debtor or the debtor in possession or an assignee of such contract or lease, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties; and “(B) such party does not consent to such assumption or assignment; or “(2) such contract is a contract to make a loan, or extend other debt financing or financial accommodations, to or for the benefit of the debtor, or to issue a security of the debtor; or “(3) such lease of nonresidential real property has been terminated under applicable nonbankruptcy law prior to the order for relief. “(d) (1) In a case under chapter 7 of this title, if the trustee does not assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor within 60 days after the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such contract or lease is deemed rejected. “(2) In a case under chapter 9, 11, or 13 of this title, the trustee 11 USC 901 et seq., 1101 et seq., 1301 et seq. may assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor at any time before the confirmation of a plan but the court, on the request of any party to such contract or lease, may order the trustee to determine within a specified period of time whether to assume or reject such contract or lease. “(3) The trustee shall timely perform all the obligations of the debtor, except those specified in section 365(b)(2), arising from and Ante, p. 361. after the order for relief under any unexpired lease of nonresidential real property, until such lease is assumed or rejected, notwithstanding section 503(b)(1) of this title. The court may extend, for cause, the time for performance of any such obligation that arises within 60 days after the date of the order for relief, but the time for performance shall not be extended beyond such 60-day period. This subsection shall not be deemed to affect the trustee’s obligations under the provisions of subsection (b) or (f) of this section. Acceptance of any such performance does not constitute waiver or relinquishment of the lessor’s rights under such lease or under this title. “(4) Notwithstanding paragraphs (1) and (2), in a case under any chapter of this title, if the trustee does not assume or reject an unexpired lease of nonresidential real property under which the debtor is the lessee within 60 days after the date of the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such lease is deemed rejected, and the trustee shall immediately surrender such nonresidential real property to the lessor.”. (b) Section 365 is further amended by adding at the end thereof the following new subsection: “(l) If an unexpired lease under which the debtor is the lessee is assigned pursuant to this section, the lessor of the property may require a deposit or other security for the performance of the debtor’s obligations under the lease substantially the same as would have been required by the landlord upon the initial leasing to a similar tenant. “(m) For purposes of this section 365 and sections 541(b)(2) and Real property. Infra. 362(b)(9), leases of real property shall include any rental agreement to use real property.”. Sec. 363. (a) Section 541(b) of title 11, United States Code, is amended to read as follows: “(b) Property of the estate does not include— “(1) any power that the debtor may exercise solely for the benefit of an entity other than the debtor; or “(2) any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease before the commencement of the case under this title, and ceases to include any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease during the case.”. (b) Section 362(b) of title 11 of the United States Code is amended by— (1) striking out “or” at the end of paragraph (7), (2) replacing the period after paragraph (8) with “; or”, and (3) adding the following after paragraph (8): “(9) under subsection (a) of this section, of any act by a lessor to the debtor under a lease of nonresidential real property that has terminated by the expiration of the stated term of the lease before the commencement of or during a case under this title to obtain possession of such property.”. Subtitle D— Amendments to Title 11, Section 523 Relating to the Discharge of Debts Incurred by Persons Driving While Intoxicated Sec. 371. Section 523(a) of title 11, United States Code, is amended by— (1) striking out “or” at the end of paragraph (8); and (2) by adding the following new paragraph after such paragraph: “(9) to any entity, to the extent that such debt arises from a judgment or consent decree entered in a court of record against the debtor wherein liability was incurred by such debtor as a result of the debtor’s operation of a motor vehicle while legally intoxicated under the laws or regulations of any jurisdiction within the United States or its territories wherein such motor vehicle was operated and within which such liability was incurred; or”. Subtitle E— Referees Salary and Expense Fund Sec. 381. This subtitle may be cited as the “Referees Salary and Expense Fund Act of 1984”. Sec. 382. Section 403(e) of the Act of November 6, 1978 (92 Stat. 2683; Public Law 95–598), is amended to read as follows: “(e) Notwithstanding subsection (a) of this section— “(1) a fee may not be charged under section 40c(2)(a) of the Bankruptcy Act in a case pending under such Act after September 30, 1979, to the extent that such fee exceeds $200,000; “(2) a fee may not be charged under section 40c(2)(b) of the Bankruptcy Act in a case in which the plan is confirmed after September 30, 1978, or in which the final determination as to the amount of such fee is made after September 30, 1979, notwithstanding an earlier confirmation date, to the extent that such fee exceeds $100,000; “(3) after September 30, 1979, all moneys collected for payment into the referees’ salary and expense fund in cases filed 11 USC note prec. 101. under the Bankruptcy Act shall be collected and paid into the general fund of the Treasury; and “(4) any balance in the referees’ salary and expense fund in the Treasury on October 1, 1979, shall be transferred to the general fund of the Treasury and the referees’ salary and expense fund account shall be closed.”. Subtitle F— Amendments Regarding Repurchase Agreements Sec. 391. Section 101 of title 11, United States Code, is amended— (1) by redesignating paragraphs (35), (36), (37), (38), (39), (40), and (41), as paragraphs (37), (38), (39), (40), (41), (42), and (43), respectively, and (2) by inserting after paragraph (34) the following new paragraphs: “(35) ‘repo participant’ means an entity that, on any day during the period beginning 90 days before the date of the filing of the petition, has an outstanding repurchase agreement with the debtor; “(36) ‘repurchase agreement’ (which definition also applies to Securities. a reverse repurchase agreement) means an agreement, including related terms, which provides for the transfer of certificates of deposit, eligible bankers’ acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, or securities with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, or securities as described above, at a date certain not later than one year after such transfers or on demand, against the transfer of funds;”. Sec. 392. Section 362(b) of title 11, United States Code, is Ante, p. 363. amended— (a) by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively, and (b) by inserting after paragraph (6) the following new paragraph: “(7) under subsection (a) of this section, of the setoff by a repo participant, of any mutual debt and claim under or in connection with repurchase agreements that constitutes the setoff of a claim against the debtor for a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, arising out of repurchase agreements against cash, securities, or other property held by or due from such repo participant to margin, guarantee, secure or settle repurchase agreements;”. Sec. 393. Section 546 of title 11, United States Code, is amended by Ante, p. 358. inserting after subsection (e), as redesignated by section 251, the following: Notwithstanding sections 544, 545, 547, 548(a)(2), and 548(b) of this title, the trustee may not avoid a transfer that is a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, made by or to a repo participant, in connection with a repurchase agreement and that is made before the commencement of the case, except under section 548(a)(1) of this title.”. Sec. 394. Section 548(d)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “and” at the end thereof; (2) in subparagraph (B) by striking out the period at the end thereof and inserting in lieu thereof “; and”; and by inserting after paragraph (B) the following new subparagraph: “(C) a repo participant that receives a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, in connection with a repurchase agreement, takes for value to the extent of such payment.”. Sec. 395. Section 553(b)(1) of title 11, United States Code, is amended by inserting “, 362(b)(7),” after “362(b)(6)”. Sec. 396. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 559. Contractual right to liquidate a repurchase agreement “The exercise of a contractual right of a repo participant to cause the liquidation of a repurchase agreement because of a condition of the kind specified in section 365(e)(1) of this title shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title, unless, where the debtor is a stockbroker or securities clearing agency, such order is authorized under the provisions of the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) or any statute administered by the Securities and Exchange Commission. In the event that a repo participant liquidates one or more repurchase agreements with a debtor and under the terms of one or more such agreements has agreed to deliver assets subject to repurchase agreements to the debtor, any excess of the market prices received on liquidation of such assets (or if any such assets are not disposed of on the date of liquidation of such repurchase agreements, at the prices available at the time of liquidation of such repurchase agreements from a generally recognized source or the most recent closing bid quotation from such a source) over the sum of the stated repurchase prices and all expenses in connection with the liquidation of such repurchase agreements shall be deemed property of the estate, subject to the available rights of setoff. As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw, applicable to each party to the repurchase agreement, of a national securities exchange, a national securities association, or a securities clearing agency, and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal business practice.”. (b) The analysis of sections for chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: “559. Contractual right to liquidate a repurchase agreement.”. Subtitle G— Amendments to Title 11, Section 365 of the United States Code to Provide Adequate Protection for Timeshare Consumers Sec. 401. Title 11, United States Code, section 101 is hereby amended by— (1) redesignating paragraph (43), as redesignated by section Ante, p. 364. Real property. 391, as paragraph (44); and (2) adding the following paragraph after paragraph (42), as redesignated in section 391: “(43) ‘timeshare plan’ means and shall include that interest purchased in any arrangement, plan, scheme, or similar device, but not including exchange programs, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, right to use agreement, or by any other means, whereby a purchaser, in exchange for consideration, receives a right to use accommodations, facilities, or recreational sites, whether improved or unimproved, for a specific period of time less than a full year during any given year, but not necessarily for consecutive years, and which extends for a period of more than three years. A ‘timeshare interest’ is that interest purchased in a timeshare plan which grants the purchaser the right to use and occupy accommodations, facilities, or recreational sites, whether improved or unimproved, pursuant to a timeshare plan.”. Sec. 402. Section 365(h)(1) of title 11, United States Code, is Real property. amended to read as follows: “(h) (1) If the trustee rejects an unexpired lease of real property of the debtor under which the debtor is the lessor, or a timeshare interest under a timeshare plan under which the debtor is the timeshare interest seller, the lessee or timeshare interest purchaser under such lease or timeshare plan may treat such lease or time-share plan as terminated by such rejection, where the disaffirmance by the trustee amounts to such a breach as would entitle the lessee or timeshare interest purchaser to treat such lease as terminated by virtue of its own terms, applicable nonbankruptcy law, or other agreements the lessee or timeshare interest purchaser has made with other parties; or, in the alternative, the lessee or timeshare interest purchaser may remain in possession of the leasehold or timeshare interest under any lease or timeshare plan the term of which has commenced for the balance of such term and for any renewal or extension of such term that is enforceable by such lessee or timeshare interest purchaser under applicable nonbankruptcy law.”. Sec. 403. Section 365(h)(2) of title 11, United States Code, is Real property. amended to read as follows: “(2) If such lessee or timeshare interest purchaser remains in possession as provided in paragraph (1) of this subsection, such lessee or timeshare interest purchaser may offset against the rent reserved under such lease or moneys due for such timeshare interest for the balance of the term after the date of the rejection of such lease or timeshare interest, and any such renewal or extension thereof, any damages occurring after such date caused by the non-performance of any obligation of the debtor under such lease or timeshare plan after such date, but such lessee or timeshare interest purchaser does not have any rights against the estate on account of any damages arising after such date from such rejection, other than such offset.”. Sec. 404. Section 365(i)(1) of title 11, United States Code, is Real property. amended to read as follows: “(i) (1) If the trustee rejects an executory contract of the debtor for the sale of real property or for the sale of a timeshare interest under a timeshare plan, under which the purchaser is in possession, such purchaser may treat such contract as terminated, or, in the alternative, may remain in possession of such real property or timeshare interest.”. Subtitle H— Miscellaneous Amendments to Title 11 Sec. 421. (a) Section 101(2)(D) of title 11 of the United States Code is amended by striking out “or all” after “business”. (b) Section 101(8)(B) of title 11 of the United States Code is amended by striking out the colon at the end thereof and inserting in lieu thereof a semicolon. (c) Section 101(9)(B) of title 11 of the United States Code is amended by inserting “348(d),” after “section”. (d) Section 101(14) of title 11 of the United States Code is amended by inserting “and” after “trust,”. (e) Section 101(24) of title 11 of the United States Code is amended by striking out “stock broker” and inserting in lieu thereof “stockbroker” (f) Section 101(26)(B)(ii) of title 11 of the United States Code is amended by— (1) striking out “separate” each place it appears and inserting in lieu thereof “nonpartnership”; and (2) striking out “(A)(ii) and inserting in lieu thereof “(A)”, (g) Section 101(30) of title 11 of the United States Code is amended to read as follows: (30) “person” includes individual, partnership, and corporation, but does not include governmental unit, Provided, however, That any governmental unit that acquires an asset from a person as a result of operation of a loan guarantee agreement, or as receiver or liquidating agent of a person, will be considered a person for purposes of section 1102 of this title. (h) Section 101(38)(B)(vi) of title 11 of the United States Code, as Ante, p. 364. redesignated by section 391 of this Act, is amended by— (1) striking out “certificate specified in clause (xii) of subparagraph (A)” and inserting in lieu thereof “certificate of a kind specified in subparagraph (A)(xii)”; and (2) striking out “the subject of such a registration statement” and inserting in lieu thereof “required to be the subject of a registration statement”. (i) Section 101(44) of title 11 of the United States Code, as so redesignated, is amended by striking out the period and inserting in lieu thereof “and foreclosure of the debtor’s equity of redemption; and”. (j) Section 101 of title 11 of the United States Code is amended— (1) by redesignating paragraphs (41) through (44), as previously redesignated, as paragraphs (45) through (48); (2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively; (3) by redesignating paragraphs (19) and (20) as paragraphs (20) and (21), respectively; (4) by inserting after paragraph (18) the following: “(19) ‘financial institution’ means a person that is a commercial or savings bank, industrial savings bank, savings and loan association, or trust company and, when any such person is acting as agent or custodian for a customer in connection with a securities contract, as defined in section Post, p. 382. 741(7) of this title, such customer;”; (5) by inserting after paragraph (21) as redesignated herein the following: “(22) ‘forward contract’ means a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity, or product or byproduct thereof, with a maturity date more than two days after the date the contract is entered into; “(23) ‘forward contract merchant’ means a person whose business consists in whole or in part of entering into forward contracts as or with merchants in commodities;”; (6) by inserting after paragraph (43) the following: “(44) ‘State’ includes the District of Columbia and Puerto Rico, except for the purpose of defining who may be a debtor under chapter 9 of this title;”; and 11 USC 901 el seq. (7) by inserting after paragraph (48) the following: “(49) ‘United States’, when used in a geographical sense, includes all locations where the judicial jurisdiction of the United States extends, including territories and possessions of the United States;”. Sec. 422. Section 102 of title 11 of the United States Code is amended by striking out “continued” and inserting in lieu thereof “contained” in paragraph (8). Sec. 423. Section 103(c) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stockbroker”. Sec. 424. (a) Subsections (a)(1), (b)(1), and (c)(1) of section 108 of title 11 of the United States Code are each amended by striking out “and” each place it appears and inserting in lieu thereof “or”. (b) Subsections (a), (b), and (c) of section 108 of title 11 of the United States Code are each amended by inserting “nonbankruptcy” after “applicable” and after “entered in a” each place such terms appear. Sec. 425. (a) Section 109 of title 11 of the United States Code, is amended by striking out “in the United States,” the first place it appears. (b) Section 109(c)(5)(D) of title 11 of the United States Code of this Act is amended by striking out “preference” and inserting in lieu thereof “transfer that is avoidable under section 547 of this title”. (c) Section 109(d) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stock-broker”. Sec. 426. (a) Section 303(b) of title 11 of the United States Code is amended by inserting “against a person” after “involuntary case”. (b) Section 303 of title 11 of the United States Code, is amended— (1) in subsection (b)(1) by inserting “or the subject on a bona fide dispute,” after “liability”; and (2) in subsection (h)(1) by inserting “unless such debts that are the subject of a bona fide dispute” after “due”. Sec. 427. Section 303(j)(2) of title 11 of the United States Code is amended by striking out “debtors” and inserting in lieu thereof “debtor”. Sec. 428. Section 321(b) of title 11 of the United States Code is amended by striking out “a case” and inserting in lieu thereof “the case”. Sec. 429. Section 322(b)(1) of title 11 of the United States Code is amended by inserting “required to be” after “bond”. Sec. 430. (a) Section 326(a) of title 11 of the United States Code is amended by striking out all the language beginning with “three percent” through “$50,000” the second place the latter appears and inserting in lieu thereof “and three percent on any amount in excess of $3,000”. (b) Section 326(d) of title 11 of the United States Code is amended to read as follows: “(d) The court may deny allowance of compensation for services or reimbursement of expenses of the trustee if the trustee failed to make diligent inquiry into facts that would permit denial of allowance under section 328(c) of this title or, with knowledge of such facts, employed a professional person under section 327 of this title.”. (c) Section 327(c) of title 11 of the United States Code is amended to read as follows: “(c) In a case under chapter 7 or 11 of this title, a person is not disqualified for employment under this section solely because of such person’s employment by or representation of a creditor, unless there is objection by another creditor, in which case the court shall disapprove such employment if there is an actual conflict of interest.”. Sec. 431. Section 328(a) of title 11 of the United States Code is amended by striking out “unanticipatable” and inserting in lieu thereof “not capable of being anticipated”. Sec. 432. (a) Section 329(a) of title 11 of the United States Code is amended by striking out “and” the first place it appears and inserting in lieu thereof “or”. (b) Section 329(b)(1) of title 11 of the United States Code is amended by striking out “trustee” and inserting in lieu thereof “estate” Sec. 433. Section 330(a) of title 11 of the United States Code is amended— (1) by striking out “to any parties in interest and to the United States trustee”; and (2) in paragraph (1), by striking out “time, the nature, the extent, and the value of such services” and inserting in lieu thereof “nature, the extent, and the value of such services, the time spent on such services”. Sec. 434. (a) Section 330(b) of title 11 of the United States Code is amended by striking out “$20” and inserting in lieu thereof “$45”. (b) Section 330 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(c) Unless the court orders otherwise, in a case under chapter 13 11 USC 1301 et seq. of this title the compensation paid to the trustee serving in the case shall not be less than $5 per month from any distribution under the plan during the administration of the plan.”. Sec. 435. Section 342 of title 11 of the United States Code as Ante, p. 352. amended by section 302 is further amended by amending subsection (a) to read as follows: “(a) There shall be given such notice as is appropriate, including notice to any holder of a community claim, of an order for relief in a case under this title.”. Sec. 436. Section 343 of title 11 of the United States Code is amended by striking out “examiner” the last place it appears and inserting in lieu thereof “examine”. Sec. 437. Section 345 of title 11 of the United States Code is amended by adding at the end thereof a new subsection (c) as follows: “(c) An entity with which such moneys are deposited or invested is authorized to deposit or invest such moneys as may be required under this section”. Sec. 438. Section 346(c)(2) of title 11 of the United States Code is amended by striking out “operation” and inserting in lieu thereof “corporation”. Sec. 439. Section 350(b) of title 11 of the United States Code is amended by striking out “a” and inserting in lieu thereof “A”. Sec. 440. Section 361(1) of title 11 of the United States Code is amended by inserting “a cash payment or” after “make ”. Sec. 441. (a) Section 362(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “action or” after “other”; and (2) in paragraph (3), by inserting “or to exercise control over property of the estate” after “estate” the second place it appears. (b) Section 362(b) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting “or to the extent that such act is accomplished within the period provided under section 547(e)(2)(A) of this title” after “title”; (2) in paragraph (6), by— (A) inserting “or due from” after “held by”; and (B) striking out “or secure commodity contracts” and inserting in lieu thereof “secure, or settle commodity contracts”, and by inserting “financial institution,” after “stockbroker” each time it appears. (3) in paragraph (8) as redesignated by section 392, by— Ante, p. 365. (A) striking out “said” and inserting in lieu thereof “the”; and (B) striking out “or” the last place it appears; (4) in paragraph (9) as redesignated by section 392, by striking out the period and inserting in lieu thereof a semicolon; and (5) by adding after paragraph (9) the following new paragraph: “(10) under subsection (a) of this section, of the presentment of a negotiable instrument and the giving of notice of and protesting dishonor of such an instrument.”. (c) Section 362(c)(2)(B) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. (d) Section 362(d)(2) of title 11 of the United States Code is amended by inserting “under subsection (a) of this section” after “property” the first place it appears. (e) Section 362(e) of title 11 of the United States Code is amended— (1) in the first sentence by inserting “the conclusion of” after “pending”; and (2) by striking out the last sentence and inserting in lieu thereof the following: “The court shall order such stay continued in effect pending the conclusion of the final hearing under subsection (d) of this section if there is a reasonable likelihood that the party opposing relief from such stay will prevail at the conclusion of such final hearing. If the nearing under this subsection is a preliminary hearing, then such final hearing shall be commenced not later than thirty days after the conclusion of such preliminary hearing.”. (f) Section 362(f) of title 11 of the United States Code is amended by— (1) striking out “The” and inserting in lieu thereof “Upon request of a party in interest, the”; and (2) inserting “with or” after “court,”. Sec. 442. (a) Section 363(a) of title 11 of the United States Code is amended by— (1) inserting “whenever acquired” after “equivalents”; and (2) inserting “and includes the proceeds, products, offspring, rents, or profits of property subject to a security interest as provided in section 552(b) of this title, whether existing before or after the commencement of a case under this title” after “interest”. (b) Section 363(b) of title 11 of the United States Code is amended by— (1) striking out “(b)” and inserting in lieu thereof “(b)(1)”; and (2) adding at the end thereof the following new paragraph: “(2) If notification is required under subsection (a) of section 7 A of the Clayton Act (15 U.S.C. 18a) in the case of a transaction under this subsection, then— “(A) notwithstanding subsection (a) of such section, such notification shall be given by the trustee; and “(B) notwithstanding subsection (b) of such section, the required waiting period shall end on the tenth day after the date of the receipt of such notification, unless the court, after notice and hearing, orders otherwise.”. (c) Section 363(e) of title 11 of the United States Code is amended by— (1) inserting “, with or without a hearing,” after “court”; and (2) striking out the last sentence. (d) Section 363(f)(3) of title 11 of the United States Code is amended by striking out “such interest” the second place it appears and inserting in lieu thereof “all liens on such property”. (e) Section 363(h) of title 11 of the United States Code is amended by striking out “immediately before” and inserting in lieu thereof “at the time of”. (f) Section 363(i) of title 11 of the United States Code is amended by striking out “compenation” and inserting in lieu thereof “compensation”. (g) Section 363(k) of title 11 of the United States Code is amended by striking out “if the holder” and inserting in lieu thereof “unless the court for cause orders otherwise the holder of such claim may bid at such sale, and, if the holder”. (h) Section 363(1) of title 11 of the United States Code is amended by— (1) striking out “The trustee” and inserting in lieu thereof “Subject to the provisions of section 365, the trustee”; (2) striking out “conditions” and inserting in lieu thereof “condition”; (3) striking out “a taking” and inserting in lieu thereof “or the taking”; and (4) striking out “interests” and inserting in lieu thereof “interest”. (i) Section 363(n) of title 11 of the United States Code is amended by— (1) striking out “void” and inserting in lieu thereof “avoid”; (2) striking out “voiding” and inserting in lieu thereof “avoiding”; and (3) amending the last sentence to read as follows: “In addition to any recovery under the preceding sentence, the court may grant judgment for punitive damages in favor of the estate and against any such party that entered into such an agreement in willful disregard of this subsection.”. (j) Section 363 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(o) In any hearing under this section— “(1) the trustee has the burden of proof on the issue of adequate protection; and “(2) the entity asserting an interest in property has the burden of proof on the issue of the validity, priority, or extent of such interest.”. Sec. 443. Section 366(a) of title 11 of the United States Code is amended by inserting “of the commencement of a case under this title or” after “basis”. Sec. 444. Section 501(d) of title 11 of the United States Code is amended by inserting “502(e)(2),” before “502(f)”. Sec. 445. (a) Section 502(a) of title 11 of the United States Code is amended by inserting “general” before “partner”. (b) Section 502(b) of title 11 of the United States Code is amended— (1) by inserting “(e)(2),” after “subsections”; (2) by inserting “in lawful currency of the United States” after “claim” the second place it appears; (3) in paragraph (1), by striking out “, and unenforceable against” and inserting in lieu thereof “and”; (4) by striking out paragraph (3) and redesignating paragraphs (4), (5), (6), (7), (8), and (9) as paragraphs (3), (4), (5), (6), (7), and (8), respectively; (5) in paragraph (3), as redesignated by paragraph (5), by inserting “the” after “exceeds”; (6) in paragraph (5), as redesignated by paragraph (5), by— (A) striking out “the claim” and inserting in lieu thereof “such claim”, and (B) striking out the comma after “petition”; and (7) in paragraph (7), as redesignated by paragraph (5), by— (A) inserting “the claim of an employee” before “for damages”; (B) striking out “and” in subparagraph (A)(i) and inserting in lieu thereof “or”; (C) striking out “the” the first place it appears in subparagraph (B) and inserting in lieu thereof “any”; and (D) inserting a comma after “such contract” in subparagraph (B). (c) Section 502(c) of title 11 of the United States Code is amended— (1) in paragraph (1) by— (A) inserting “the” before “fixing”; and (B) striking out “closing” and inserting in lieu thereof “administration”; and (2) in paragraph (2), by— (A) inserting “right to payment arising from a” after “any”; and (B) striking out “if such breach gives rise to a right to payment”. (d) Section 502(e)(1) of title 11, United States Code, is amended— (1) by striking out “and (b)” and inserting in lieu thereof “, (b), and (c)”; and (2) by striking out the commas before and after “or has secured”; (3) in subparagraph (B), by inserting “or disallowance” after “allowance”; and (4) in subparagraph (C), by— (A) striking out “requests subrogation” and inserting in lieu thereof “asserts a right of subrogation to the rights of such creditor”; and (B) striking out “to the rights of such creditor”. (e) Section 502(h) of title 11 of the United States Code is amended by striking out “522(i)” and inserting in lieu thereof “522”. (f) Section 502(j) of title 11 of the United States Code is amended to read as follows: “(j) A claim that has been allowed or disallowed may be reconsidered for cause. A reconsidered claim may be allowed or disallowed according to the equities of the case. Reconsideration of a claim under this subsection does not affect the validity of any payment or transfer from the estate made to a holder of an allowed claim on account of such allowed claim that is not reconsidered, but if a reconsidered claim is allowed and is of the same class as such holder’s claim, such holder may not receive any additional payment or transfer from the estate on account of such holder’s allowed claim until the holder of such reconsidered and allowed claim receives payment on account of such claim proportionate in value to that already received by such other holder. This subsection does not alter or modify the trustee’s right to recover from a creditor any excess payment or transfer made to such creditor.”. Sec. 446. Section 503(b) of title 11 of the United States Code is amended— (1) by striking out the comma after “be allowed”; (2) in paragraph (1)(C), by striking out the comma after “credit”; (3) in paragraph (2), by inserting “(a)” after “330”; (4) in paragraph (3), by inserting a comma after “paragraph (4) of this subsection”; (5) in paragraph (3)(C), by striking out the comma after “case”; (6) in paragraph (5), by striking out “and” after the semicolon; and (7) in paragraph (6), by striking out the period and inserting in lieu thereof “; and”. Sec. 447. Section 505(a) of title 11 of the United States Code is amended in paragraph (2)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 448. (a) Section 506(b) of title 11 of the United States Code is amended by inserting “for” after “provided”. (b) Paragraphs (1) and (2) of section 506(d) of title 11 of the United States Code are amended to read as follows: “(1) such claim was disallowed only under section 502(b)(5) or 502(e) of this title; or “(2) such claim is not an allowed secured claim due only to the failure of any entity to file a proof of such claim under section 501 of this title.”. Sec. 449. (a) Section 507(a) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting a comma after “severance”: (2) in paragraph (4), by striking out “employee benefit plans” and inserting in lieu thereof “an employee benefit plan”; (3) in paragraph (4)(B)(i), by inserting “each” after “covered by”; and (4) in paragraph (7) as redesignated by section 350 by inserting “only” after “units,”. (b) Section 507(c) of title 11 of the United States Code is amended by striking out “shall be treated the same” and inserting in lieu thereof “has the same priority”. Sec. 450. (a) Section 509(a) of title 11 of the United States Code is amended by— (1) striking out “subsections (b) and” and inserting in lieu thereof “subsection (b) or”; and (2) inserting “against the debtor” after “a creditor”. (b) Section 509(b)(1) of title 11 of the United States Code is amended by striking out “of a” and inserting in lieu thereof “of such”. (c) Section 509(c) of title 11 of the United States Code is amended by striking out “section 509 of this title” and inserting in lieu thereof “this section”. Sec. 451. Section 510(b) of title 11 of the United States Code is Claims. amended to read as follows: “(b) For the purpose of distribution under this title, a claim arising from rescission of a purchase or sale of a security of the debtor or of an affiliate of the debtor, for damages arising from the purchase or sale of such a security, or for reimbursement or contribution allowed under section 502 on account of such a claim, shall be subordinated to all claims or interests that are senior to or equal the claim or interest represented by such security, except that if such security is common stock, such claim has the same priority as common stock.”. Sec. 452. Section 521(3) of title 11 of the United States Code, as redesignated in section 305, is amended by inserting “, whether or Ante, p. 352. not immunity is granted under section 344 of this title” after “estate” the second place it appears. Sec. 453. (a) Section 522(a)(2) of title 11 of the United States Code is amended by inserting “or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate” after “petition”. (b) Section 522(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the case is dismissed, property exempted under this section is not liable during or after the case for any debt of the debtor that arose, or that is determined under section 502 of this title as if such debt had arisen, before the commencement of the case, except— “(1) a debt of a kind specified in section 523(a)(1) or 523(a)(5) of this title; or “(2) a debt secured by a lien that is— “(A) (i) not avoided under subsection (f) or (g) of this section or under section 544, 545, 547, 548, 549, or 724(a) of this title; and “(ii) not void under section 506(d) of this title; or Ante, p. 374. “(B) a tax lien, notice of which is properly filed.”. (c) Section 522(e) of title 11 of the United States Code is amended by striking out “exemptions” and inserting in lieu thereof “an exemption”. Sec. 454. (a) Section 523(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by— (A) striking out “obtaining” each place it appears; and (B) striking out “refinance of credit,” and inserting in lieu thereof “refinancing of credit, to the extent obtained”; and (2) by striking out “of higher education” in paragraph (8). (b) Section 523(a)(5) of title 11, United States Code, is amended by— (1) amending the first paragraph thereof by inserting the words “or other order of a court of record” after the words “divorce decree,”; and (2) inserting “, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State” after “Social Security Act”. (c) Section 523(c) of title 11 of the United States Code is amended by inserting “of a kind” after “debt” the first time it appears. Sec. 455. Section 524(a) of title 11 of the United States Code is amended by striking out “any act” each place it appears and inserting in lieu thereof “an act”. Sec. 456. (a) Section 541(a) of title 11 of the United States Code is amended— (1) by striking out “under” the second time it appears; (2) by inserting “and by whomever held” after “located”; (3) in paragraph (3), by inserting “329(b), 363(n),” after “section”; (4) in paragraph (5), by striking out “An” and inserting in lieu thereof “Any”; and (5) in paragraph (6), by striking out “and” and inserting in lieu thereof “or”. (b) Section 541(c) of title 11 of the United States Code is amended— (1) by inserting “in an agreement, transfer instrument, or applicable nonbankruptcy law” after “provision”; and (2) in paragraph (1)(B), by— (A) striking out “the taking” and inserting in lieu thereof “taking”; and (B) inserting “before such commencement” after “custodian”. (c) Section 541(d) of title 11 of the United States Code is amended by inserting “(1) or (2)” after “(a)”. (d) Section 541(e) of title 11 of the United States Code is repealed. Sec. 457. Section 542(e) of title 11 of the United States Code is amended by inserting “to turn over or” before “disclose”. Sec. 458. (a) Section 543(a) of title 11 of the United States Code is amended by inserting “, product, offspring, rents, or profits” after “proceeds”. (b) Section 543(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by— (A) inserting “held by or” after “debtor”; and (B) inserting “, product, offspring, rents, or profits” after “proceeds”; and (2) in paragraph (2), by inserting “, product, offspring, rents, or profits” after “proceeds”. (c) Section 543(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “or proceeds, product, off-spring, rents, or profits of such property” after “property”; and (2) in paragraph (3), by inserting “that has been” before “approved”. (d) Section 543(d) of title 11 of the United States Code is amended to read as follows: “(d) After notice and hearing, the bankruptcy court— “(1) may excuse compliance with subsection (a), (b), or (c) of this section, if the interests of creditors and, if the debtor is not insolvent, of equity security holders would be better served by permitting a custodian to continue in possession, custody, or control of such property, and “(2) shall excuse compliance with subsections (a) and (b)(1) of this section if the custodian is an assignee for the benefit of the debtor’s creditors that was appointed or took possession more than 120 days before the date of the filing of the petition, unless compliance with such subsections is necessary to prevent fraud or injustice.”. Sec. 459. Section 544(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “such” after “obtained”; (2) in paragraph (2), by striking out “; and” and inserting in lieu thereof “, or”; and (3) in paragraph (3), by— (A) inserting “, other than fixtures,” after “property”; and (B) inserting “and has perfected such transfer” after “purchaser” the second place it appears. Sec. 460. Section 545 of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by striking out “is” the first time it appears; (2) in paragraph (1)(C), by striking out “apponted” and inserting in lieu thereof appointed or authorized to take”; and (3) in paragraph (2), by striking out “on the date of of the filing the petition” each place it appears and inserting in lieu thereof “at the time of the commencement of the case”. Sec. 461. (a) Section 546(a) of title 11 of the United States Code is amended in paragraph (1) by striking out “and” and inserting in lieu thereof “or”. (b) Section 546(b) of title 11 of the United States Code is amended by striking out “the trustee under section 544, 545, or” and inserting in lieu thereof “a trustee under sections 544, 545, and”. (c) Section 546(c) of title 11 of the United States Code is amended— (1) by striking out “the trustee” and inserting in lieu thereof “a trustee”; (2) by striking out “right” the first place it appears; (3) by inserting “of goods that has sold goods to the debtor” after “seller” the first place it appears; (4) by striking out “of goods to the debtor” after “business,”; and (5) in paragraph (2), by— (A) inserting “the” after “if’; and (B) striking out “an administrative expense” and inserting in lieu thereof “a claim of a kind specified in section 503(b) of this title” (d) Section 546(e) of title 11 of the United States Code, as redesignated by section 351, is amended by inserting “financial institution” after “stockbroker”. Sec. 462. (a) Section 547(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “including proceeds of such property,” after “law,”; and (2) in paragraph (4), by— (A) striking out “, without penalty”; and (B) inserting “without penalty” after “payable”. (b) Section 547(b) of title 11 of the United States Code is amended— (1) by striking out “of property of the debtor” and inserting in lieu thereof “of an interest of the debtor in property”; and (2) in paragraph (4) by amending subparagraph (B) to read as follows: “(B) between ninety days and one year before the date of the Tiling of the petition, if such creditor at the time of such transfer was an insider;”. (c) Section 547 of title 11 of the United States Code is amended in subsection (c)(2) thereof by striking out subparagraph (B) of such subsection, and by redesignating subparagraphs (C) and (D) thereof as subparagraphs (B) and (C), respectively. (d) Section 547(c) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by inserting “by the debtor” after “incurred”; (2) in paragraph (3), by striking out “of” the first place it appears and inserting in lieu thereof “that creates”; (3) in paragraph (3)(B), by— (A) inserting “on or after “perfected”; and (B) striking out “such security interest attaches” and inserting in lieu thereof “the debtor receives possession of such property”; (4) in paragraph (5), by— (A) striking out “of” the first place it appears and inserting in lieu thereof “that creates”; and (B) striking out “all security interest” and inserting in lieu thereof “all security interests”; and (5) in paragraph (5)(A)(ii), by striking out “and” and inserting in lieu thereof “or”. (e) Section 547(d) of title 11 of the United States Code is amended by— (1) striking out “A” and inserting in lieu thereof “The”; (2) inserting “an interest in” after “transfer of’: (3) inserting “to or for the benefit of a surety” after “transferred”; and (4) inserting “such” after “reimbursement of’. (f) Section 547(e) of title 11 of the United States Code is amended in paragraph (2)(C)(i), by striking out “and” and inserting in lieu thereof “or”. (g) Section 547 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(g) For the purposes of this section, the trustee has the burden of proving the avoidability of a transfer under subsection (b) of this section, and the creditor or party in interest against whom recovery or avoidance is sought has the burden of proving the nonavoidability of a transfer under subsection (c) of this section.”. Sec. 463. (a) Section 548(a) of title 11 of the United States Code is amended— (1) by striking out “if the debtor” and inserting in lieu thereof “if the debtor voluntarily or involuntarily”; (2) in paragraph (1), by striking out “occurred” and inserting in lieu thereof “was made”; and (3) in paragraph (2)(B)(ii), by inserting “or a transaction” after “engaged in business”. (b) Section 548(c) of title 11 of the United States Code is amended by— (1) inserting “or may retain” after “lien on”; and (2) striking out “, may retain any lien transferred,”. (c) (1) Section 548(d)(1) of title 11 of the United States Code is amended by— (A) striking out “becomes so far” and inserting in lieu thereof “is so”; (B) striking out “such transfer could have been” and inserting in lieu thereof “applicable law permits such transfer to be”; and (C) striking out “occurs” and inserting in lieu thereof “is made”. (2) Section 548(d)(2)(B) of title 11 is amended by inserting “financial institution,” after “stockbroker”. Sec. 464. (a) Section 549(a) of title 11 of the United States Code is amended— (1) by striking out “(b) and (c)” and inserting in lieu thereof “(b) or (c)”; and (2) in paragraph (2)(A), by inserting “only” after “authorized”. (3) striking out “that occurs” and inserting in lieu thereof “made”; (4) striking out “is valid against the trustee to the extent of’ and inserting in lieu thereof “to the extent”; and (5) inserting “is” before “given”. (c) Section 549(c) of title 11 of the United States Code is amended Real property. to read as follows: “(c) The trustee may not avoid under subsection (a) of this section a transfer of real property to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value unless a copy or notice of the petition was filed, where a transfer of such real property may be recorded to perfect such transfer, before such transfer is so perfected that a bona fide purchaser of such property, against whom applicable law permits such transfer to be perfected, could not acquire an interest that is superior to the interest of such good faith purchaser. A good faith purchaser without knowledge of the commencement of the case and for less than present fair equivalent value has a lien on the property transferred to the extent of any present value given, unless a copy or notice of the petition was so filed before such transfer was so perfected”. (d) Section 549(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 465. (a) Section 550(a) of title 11 of the United States Code is amended by striking out “549, or 724(a) of this title” and inserting in lieu thereof “549, 553(b), or 724(a) of this title”. (b) Section 550(d) of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by inserting “or accruing to” after “by”; (2) in paragraph (1)(B), by striking out “value” and inserting in lieu thereof “the value of such property”; (3) in paragraph (2), by striking out subparagraphs (D) and (E) and inserting in lieu thereof the following: “(D) payment of any debt secured by a lien on such property that is superior or equal to the rights of the trustee; and”, and (4) in paragraph (2), by redesignating subparagraph (F) as subparagraph (E). (c) Section 550(e)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 466. Section 552(b) of title 11 of the United States Code is amended by— (1) inserting “522,” after “506(c),”; (2) striking out “a secured party enter” and inserting in lieu thereof “an entity entered”; and (3) striking out “except to the extent” and inserting in lieu thereof “except to any extent”. Sec. 467. Section 553(b)(1) of title 11 of the United States Code is amended by striking out “or 365(h)(1)” and inserting in lieu thereof “, 365(h)(2), or 365(i)(2)”. Sec. 468. (a) Subsections (a) and (b) of section 554 of title 11 of the United States Code are each amended by inserting “and benefit” after “value”. (b) Section 554(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the court orders otherwise, any property scheduled under section 521(a)(1) of this title not otherwise administered at the time of the closing of a case is abandoned to the debtor and administered for purposes of section 350 of this title.”. (c) Section 554(d) of title 11 of the United States Code is amended by striking out “section (a) or (b) of”. Sec. 469. Section 555 of title 11 of the United States Code is amended by inserting “, financial institution,” after “stockbroker”. Sec. 470. (a) Chapter 5 of title 11 of the United States Code as amended by section 352 is amended by adding at the end thereof the following new section: “§ 558. Defenses of the estate “The estate shall have the benefit of any defense available to the debtor as against any entity other than the estate, including statutes of limitation, statutes of frauds, usury, and other personal defenses. A waiver of any such defense by the debtor after the commencement of the case does not bind the estate.”. (b) The table of sections for chapter 5 of title 11 of the United States Code is amended by adding at the end thereof the following new item: “558. Defenses of the estate.”. Sec. 471. The table of sections for chapter 7 of title 11 of the United States Code is amended by striking out “Succesor” in the item relating to section 703 and inserting in lieu thereof “Succcssor” Sec. 472. (a) Section 702(b) of title 11 of the United States Code is amended by inserting “held” after “meeting of creditors”. (b) Section 702(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “of a kind” after “claims”; and (2) in paragraph (2), by inserting “a” after “for”. (c) Section 702(d) of title 11 of the United States Code is amended by striking out “subsection (c) of”. Sec. 473. Section 703(b) of title 11 of the United States Code is amended by striking out “specified in section 701(a) of this title. Sections 701(b) and 701(c) of this title apply to such interim trustee” and inserting in lieu thereof “and subject to the provisions of section 701 of this title”. Sec. 474. Section 704 of title 11 of the United States Code as amended by section 311 is amended in paragraph (1), by striking out Ante, p. 355. “up”. Sec. 475. Paragraphs (1) and (2) of section 707 of title 11 of the United States Code are each amended by striking out “and” and inserting in lieu thereof “or”. Sec. 476. (a) Section 723(a) of title 11 of the United States Code is amended by striking out all after “claims” and inserting in lie thereof “which are allowed in a case under this chapter concerning a partnership and with respect to which a general partner of the partnership is personally liable, the trustee shall have a claim against such general partner for the full amount of the deficiency”. (b) Section 723(c) of title 11 of the United States Code is amended by— (1) striking out “such case” each place it appears and inserting in lieu thereof “such partner’s case”; (2) striking out “be property” and inserting in lieu thereof “by property”; and (3) striking out “the kind” and inserting in lieu thereof “a kind”. Sec. 477. (a) Section 724(b) of title 11 of the United States Code is amended— (1) by striking out “taxes” and inserting in lieu thereof “a tax”; (2) in paragraph (2), by— (A) striking out “claims” and inserting in lieu thereof “any holder of a claim of a kind”; (B) striking out “sections” and inserting in lieu thereof “section”; and (C) striking out “and” and inserting in lieu thereof “or”; and (3) in paragraph (3), by inserting “tax” after “allowed”. (b) Section 724(c) of title 11 of the United States Code is amended by— (1) striking out “creditor” and inserting in lieu thereof “holder of a claim”; and (2) striking out “creditors” each place it appears and inserting in lieu thereof “holders”. (c) Section 724(d) of title 11 of the United States Code is amended by— (1) striking out “whose priority” and inserting in lieu thereof “the priority of which”; and (2) inserting ‘ if such lien were” after “the same as”. Sec. 478. Section 725 of title 11 of the United States Cede is amended by inserting “of property of the estate” after “distribution”. Sec. 479. (a) Section 726(b) of title 11 of the United States Code is amended by— (1) striking out “a particular paragraph” and inserting in lieu thereof “each such particular paragraph”; and (2) striking out “administrative expenses” each place it appears and inserting in lieu thereof “a claim allowed under section 503(b) of this title”; and (3) striking out “have” and inserting in lieu thereof “has”. (b) Section 726(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “Administrative expenses” and inserting in lieu thereof “Claims allowed under section 503 of this title”; and (2) in paragraph (2), by striking out “Claims other than for administrative expenses” and inserting in lieu thereof “Allowed claims, other than claims allowed under section 503 of this title,”. Sec. 480. (a) Section 727(a) of title 11 of the United States Code is amended— (1) in paragraph (6)(C), by striking out “property” and inserting in lieu thereof “properly”; (2) in paragraph (7), by inserting “, under this title or under the Bankruptcy Act,” after “another case”; and (3) in paragraph (8), by inserting a comma after “371”. (b) Section 727(c)(1) of title 11 of the United States Code is amended by inserting “the granting of a” after “to”. (c) Section 727(e)(2)(A) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 481. (a) Section 728(c) of title 11 of the United States Code is amended by striking out the comma after “taxable income”. (b) Section 728(d)(2) of title 11 of the United States Code is amended by inserting “otherwise” after “is”, and by striking out “otherwise” after “partner”. Sec. 482. Section 741 of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by— (A) striking out “the debtor” the first time it appears and inserting in lieu thereof “a person”; (B) striking out “holds” and inserting in lieu thereof “has”; (C) striking out “the debtor” the second and third time it appears and inserting in lieu thereof “such person”; and (D) striking out “business as a stockbroker” and inserting in lieu thereof “such person”s business as a stockbroker,”, (2) in paragraph (2)(B), by— (A) striking out “holds” and inserting in lieu thereof “has”; (B) striking out “the debtor” the first place it appears and inserting in lieu thereof “a person”; and (C) by striking out “the debtor” and inserting in lieu thereof “such person” in clause (ii); (3) in paragraph (4)(A)(i), by striking out “and that is” and inserting in lieu thereof “from and that is the lawful”; (4) in paragraph (6)(A)(i), by— (A) inserting a comma after “petition”; and (B) inserting “any” after “except”; and (5) in paragraph (7), by amending such paragraph to read as follows: “(7) ‘securities contract’ means contract for the purchase, sale, or loan of a security, including an option for the purchase or sale of a security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any option entered into on a national securities exchange relating to foreign currencies, or the guarantee of any settlement of cash or securities by or to a securities clearing agency;”; and (6) in paragraph (8) by inserting “a final settlement payment,” after “settlement payment on account,”. Sec. 483. Section 745(a) of title 11 of the United States Code is amended by inserting “the debtor for” after “by”. Sec. 484. (a) Section 752(a) of title 11 of the United States Code is amended by— (1) striking out “customers allowed” and in lieu thereof “customers’ allowed”; (2) inserting “of the kind” after “except claims”; and (3) inserting “such” before “customer property”. (b) Section 752(b)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 485. Section 761 of title 11 of the United States Code is amended in paragraph (10), by striking out “and that is” in subparagraph (A)(viii) and inserting in lieu thereof “from and that is the lawful”. Sec. 486. Section 763(a) of title 11 of the United States Code is amended by— (1) inserting “the debtor for” after “by”; and (2) striking out “deemed to be” and inserting in lieu thereof “treated as”. Sec. 487. Section 764(a) of title 11 of the United States Code is amended by inserting “by the debtor” after “any transfer”. Sec. 488. Section 765(a) of title 11 of the United States Code is amended by striking out “notice under”, and inserting in lieu thereof “notice required by”. Sec. 489. Section 766(j)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 490. Section 901(a) of title 11 of the United States Code is amended by inserting a comma after “1111(b)”. Sec. 491. Section 902(2) of title 11 of the United States Code is amended by striking out “title, legal or equitable, to real property against which has been levied a special assessment or special tax” and by inserting in lieu thereof “legal or equitable title to real property against which a special assessment or special tax has been levied”. Sec. 492. Section 903(2) of title 11 of the United States Code is amended by striking out “to” the first place it appears. Sec. 493. Chapter 9 of title 11 of the United States Code is 11 USC prec 921.. amended by striking out “SUBCHAPER II” and inserting in lieu thereof “SUBCHAPTER II”. Sec. 494. (a) Section 921(c) of title 11 of the United States Code is amended by— (1) striking out “an” and inserting in lieu thereof “any”; and (2) striking out the comma after “petition” the second place it appears, and after “faith”. (b) Section 921 of title 11 of the United States Code is amended by redesignating subsections (e) and (f) as subsections (d) and (e), respectively. (c) Section 921(a) is amended by striking out “109(c)” and inserting in lieu thereof “109(d)”. (d) Section 921(d) of title 11 of the United States Code, as so redesignated, is amended by striking out “subsection (d)” and inserting in lieu thereof “subsection (c)”. Sec. 495. Section 922(a)(1) of title 11 of the United States Code is amended by— (1) inserting “a” before “judicial”; and (2) inserting “action or” before “proceeding”. Sec. 496. Section 927(b) of title 11 of the United States Code is amended by inserting “of a plan under this chapter” after “confirmation”. Sec. 497. Section 943(b) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “to be taken”; and (2) by amending paragraph (5) to read as follows: “(5) except to the extent that the holder of a particular claim has agreed to a different treatment of such claim, the plan provides that on the effective date of the plan each holder of a claim of a kind specified in section 507(a)(1) of this title will receive on account of such claim cash equal to the allowed amount of such claim; and”. Sec. 498. Section 945(a) of title 11 of the United States Code is amended by striking out “execution” and inserting in lieu thereof “implementation”. Sec. 499. Section 1102(b)(1) of title 11 of the United States Code is amended by striking out “order for relief’ and inserting in lieu thereof “commencement of the case”. Sec. 500. (a) Section 1103(b) is amended by— (1) inserting “having an adverse interest” after “entity”; and (2) adding at the end thereof the following: “Representation of one or more creditors of the same class as represented by the committee shall not per se constitute the representation of an adverse interest/’. (b) Section 1103(c) of title 11 of the United States Code is amended— (1) in paragraph (3), by— (A) striking out “recommendations” and inserting in lieu thereof “determinations”; and (B) inserting “or rejections” after “acceptances”; and (2) in paragraph (4), by striking out “, if a trustee or examiner, as the case may be, has not previously been appointed under this chapter in the case”. Sec. 501. Section 1105 of title 11 of the United States Code is amended by striking out “estate, and” and inserting in lieu thereof “estate and of the”. Sec. 502. Section 1106(b) of title 11 of the United States Code is amended by inserting “, except to the extent that the court orders otherwise, before “any other”. Sec. 503. Section 1107(a) of title 11 of the United States Code is amended by inserting “serving in a case” after “on a trustee”. Sec. 504. Section 1108 of title 11 of the United States Code is amended by inserting “, on request of a party in interest and after notice and a hearing, after “court”. Sec. 505. (a) Section 1112(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by striking out “is an involuntary case originally commenced under this chapter” and inserting in lieu thereof “originally was commenced as an involuntary case under this chapter”; and (2) in paragraph (3), by striking but “on other than” and inserting in lieu thereof “other than on”. (b) Section 1112(b) of title 11 of the United States Code is amended— (1) in paragraph (5), by inserting “a request made for” before “additional”; and (2) in paragraph (8), by striking out “and” and inserting in lieu thereof “or”. Sec. 506. (a) Section 1121(c)(3) of title 11 of the United States Code is amended by striking out “the claims or interests of which are” and inserting in lieu thereof “of claims or interests that is”. (b) Section 1121(d) of title 11 of the United States Code is amended by inserting “made within the respective periods specified in subsection (c) of this section” after “interest”. Sec. 507. (a) Section 1123(a) of title 11 of the United States Code is amended— (1) by striking out “A” and inserting in lieu thereof “Notwithstanding any otherwise applicable nonbankruptcy law, a”; (2) in paragraph (1), by— (A) inserting a comma after “classes of claims”; and (B) by striking out “507(a)(6) of this title” and inserting in lieu thereof “507(a)(7) of this title,”; (3) in paragraph (3), by striking out “shall”; (4) in paragraph (5), by striking out “execution” and inserting in lieu thereof “implementation”, and (5) in paragraph (5)(G), by inserting “of’ after “waiving”. (b) Section 1123(b)(2) of title 11 of the United States Code is amended by— (1) striking out “or rejection” and inserting in lieu thereof “, rejection, or assignment”; and (2) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”. Sec. 508. Section 1124 of title 11 of the United States Code is amended— (1) by amending paragraph ()(A) to read as follows: “(A) cures any such default that occurred before or after the commencement of the case under this title, other than a default of a kind specified in section 365(b)(2) of this title;”; Ante, p. 361. and (2) in paragraph (3)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 509. (a) Section 1125(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “, but adequate information need not include such information about any other possible or proposed plan” after “plan”; (2) in paragraph (2)(B), by inserting “the” after “with”; and (3) in paragraph (2)(C), by inserting “or’ after “holders”. (b) Section 1125(d) of title 11 of the United States Code is amended by— (1) inserting “required under subsection (b) of this section” after “statement” the first place it appears; and (2) inserting or otherwise seek review of,” after “appeal from”. (c) Section 1125(e) of title 11 of the United States Code is amended by— (1) inserting “acceptance or rejection of a plan” after “solicits”; and (2) inserting “solicitation of acceptance or rejection of a plan or” after “governing”. Sec. 510. (a) Section 1126(b)(2) of title 11 of the United States Code is amended by striking out “1125(a)(1)” and inserting in lieu thereof “1125(a)”. (b) Section 1126(d) of title 11 of the United States Code is amended by inserting a comma after “such interests” the first place it appears. (c) Section 1126(f) of title 11 of the United States Code is amended by— (1) striking out “is deemed” and inserting in lieu thereof “, and each holder of a claim or interest of such class, are conclusively presumed”; (2) striking out “solicititation” and inserting in lieu thereof “solicitation”; and (3) striking out “interest” and inserting in lieu thereof “interests” (d) Section 1126(g) of title 11 of the United States Code is amended by striking out “any payment or compensation” and inserting in lieu thereof “receive or retain any property”. Sec. 511. (a) Section 1127(a) of title 11 of the United States Code is amended by— (1) inserting “of a plan” after “After the proponent”; and (2) inserting “of such plan” after “modification”. (b) Section 1127(b) of title 11 of the United States Code is amended by striking out “the court, after notice and a hearing, confirms such plan, as modified, under section 1129 of this title, and circumstances warrant such modification” and inserting in lieu thereof “circumstances warrant such modification and the court, after notice and a hearing, confirms such plan as modified, under section 1129 of this title”. Sec. 512. (a) Section 1129(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “chapter.” and inserting in lieu thereof “title.”; (2) in paragraph (2), by striking out “chapter.” and inserting in lieu thereof “title.”; (3) by amending paragraph (4) to read as follows: “(4) Any payment made or to be made by the proponent, by the debtor, or by a person issuing securities or acquiring property under the plan, for services or for costs and expenses in or in connection with the case, or in connection with the plan and incident to the case, has been approved by, or is subject to the approval of, the court as reasonable;”; (4) in paragraph (5)(A)(ii), by striking out the period and inserting in lieu thereof “; and”; (5) in paragraph (5)(B), by striking out “The” and inserting in lieu thereof “the”; (6) in paragraph (6), by inserting “governmental” after “Any”; (7) in paragraph (7), by— (A) inserting “of each impaired class of claims or interests” in lieu of “each class”; and (B) striking out “creditor’s” in subparagraph (B) and inserting in lieu thereof “holder’s”; (8) in paragraph (8), by inserting “of claims or interests” after “each class”; and (9) by amending paragraph (10) to read as follows: “(10) If a class of claims is impaired under the plan, at least one class of claims that is impaired under the plan has accepted the plan, determined without including any acceptance of the plan by any insider.”. (b) Section 1129(b) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by striking out “lien” each place it appears and inserting in lieu thereof “liens”; (2) in paragraph (2)(B)(ii), by inserting “under the plan” after “retain”, and (3) in paragraph (2)(C)(i), by— (A) striking out “claim” and inserting in lieu thereof “interest”; and (B) striking out “and the value” and inserting in lieu thereof “or the value”. (c) Section 1129(d) of title 11 of the United States Code is amended by— (1) inserting “the application of” after “avoidance of” the second place it appears; and (2) adding at the end thereof the following new sentence: “In any hearing under this subsection, the governmental unit has the burden of proof on the issue of avoidance.”. Sec. 513. (a) Section 1141(a) of title 11 of the United States Code is amended by striking out “any creditor or equity security holder of, or general partner in,” and inserting in lieu thereof “any creditor, equity security holder, or general partner in”. (b) Section 1141(c) of title 11 of the United States Code is amended to read as follows: “(c) Except as provided in subsections (d)(2) and (d)(3) of this section and except as otherwise provided in the plan or in the order confirming the plan, after confirmation of a plan, the property dealt with by the plan is free and clear of all claims and interests of creditors, equity security holders, and of general partners in the debtor.”. Sec. 514. (a) The heading for section 1142 of title 11 of the United States Code is amended to read as follows: “§ 1142. Implementation of plan”. (b) The item relating to section 1142 in the table of sections for chapter 11 of title 11 of the United States Code is amended by striking out “Execution” and inserting in lieu thereof “Implementation”. (c) Section 1142(a) of title 11 of the United States Code is amended by striking out the comma after “plan” the second place it appears. (d) Section 1142(b) of title 11 of the United States Code is amended by inserting “a” after “by”. Sec. 515. Section 1144 of title 11 of the United States Code is amended by inserting “if and only” after “revoke such order”. Sec. 516. (a) Section 1145(a) of title 11 of the United States Code is amended— (1) in paragraph (3)(B)(i), by inserting “or 15(d)” after “13” and by inserting “or 78o(d)” after “78m”; (2) by amending paragraph (3)(B)(ii) to read as follows: “(ii) in compliance with the disclosure and reporting provision of such applicable section; and”; and (3) in paragraph (4), by striking out “stockholder” each place it appears and inserting in lieu thereof “stockbroker”. (b) Section 1145(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “and except with respect to ordinary trading transactions of an entity that is not an issuer” after “subsection”; (2) in paragraph (1)(C), by striking out “for” and inserting in lieu thereof “from”; (3) in paragraph (2)(a)(1), by striking out “combination” and inserting in lieu thereof “or combining”; and (4) in paragraph (2)(A)(ii), by striking out “among” and inserting in lieu thereof “from or to”. (c) Section 1145(d) of title 11 of the United States Code is amended by striking out “commercial”. Sec. 517. (a) Section 1146(c) of title 11 of the United States Code is amended by striking out “State or local”. (b) Section 1146(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 518. Section 1166 of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 519. Section 1168(b) of title 11 of the United States Code is amended by inserting a comma after “approval”. Sec. 520. Section 1169(c) of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 521. (a) Section 1170(a) of title 11 of the United States Code is amended by inserting “of all or a portion” after “the abandonment”. (b) Section 1170(c) of title 11 of the United States Code is amended by inserting a comma after “abandonment”. (c) Section U70(d)(2) of title 11 of the United States Code is amended by— (1) striking out “the abandonment of a railroad line” and inserting in lieu thereof “such abandonment”; and (2) striking out “termination” each place it appears and inserting in lieu thereof “suspension”. Sec. 522. Section 1171(b) of title 11 of the United States Code is amended by striking out “such” and inserting in lieu thereof “the same”. Sec. 523. Section 1173(a)(4) of title 11 of the United States Code is amended by striking out “compatible” and inserting in lieu thereof “consistent”. Sec. 524. Section 1301(c)(3) of title 11 of the United States Code is amended by inserting “continuation of’ after “by”. Sec. 525. (a) Section 1302(b) of title 11 of the United States Code as Ante, p. 356. amended by section 314 is amended by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively and by inserting after paragraph (2) the following new paragraph: “(3) dispose of, under regulations issued by the Director of the Administrative Office of the United States Courts, moneys received or to be received in a case under chapter XIII of the Bankruptcy Act; and”. (b) Section 1302(e) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “fix” and inserting in lieu thereof “set for such individual”; (2) in paragraph (1)(A), by striking out “for such individual”; and (3) in paragraph (2)(A), by— (A) striking out “of” and inserting in lieu thereof “received by”; and (B) striking out “upon all payments” and inserting in lieu thereof “of all such payments made”. Sec. 526. Section 1304(b) of title 11 of the United States Code is amended by striking out the comma after “of the debtor”. Sec. 527. (a) Section 1307(b) of title 11 of the United States Code is amended by inserting a comma after “time”. (b) Section 1307(c) of title 11 of the United States Code as amended by section 315 is amended— Ante, p. 356. (1) in paragraph (5), as redesignated by inserting “a request made for” before “additional”; (2) in paragraph (7), as redesignated by striking out “and” after the semicolon and inserting in lieu thereof “or”; and (3) in paragraph (8), as redesignated by inserting “other than completion of payments under the plan” after ‘In the plan”. Sec. 528. (a) Section 1322(a)(2) of title 11 of the United States Code is amended by inserting a comma after “payments”. (b) Section 1322(b) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “, or leave unaffected the rights of holders of any class of claims” before the semicolon; (2) in paragraph (4), by inserting “other” after “claim or any”; (3) in paragraph (7), by— (A) inserting “subject to section 365 of this title,” before “provide”; (B) striking out “or rejection” and inserting in lieu thereof rejection, or assignment”; and (C) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”; and (4) in paragraph (8), by striking out “any”. Sec. 529. Section 1324 of title 11 of the United States Code is amended by striking out “the” the second place it appears. Sec. 530. Section 1325(a)(1) of title 11 of the United States Code is amended by inserting “the” before “other”. Sec. 531. Section 1326(b)(2) of title 11 of the United States Code as amended by section 318 is amended by inserting “of this title” after Ante, p. 357. “1302(d)”. Sec. 532. Section 1328(e) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “by the debtor” after “obtained”; and (2) in paragraph (2), by striking out “knowledge of such fraud came to the requesting party” and inserting in lieu thereof “the requesting party did not know of such fraud until”. Sec. 533. Section 1329(a) of title 11 of the United States Code is amended— (1) by inserting “of the plan” after “confirmation”; (2) by striking out “a plan” and inserting in lieu thereof “such plan”; and (3) in paragraph (3), by striking out the comma. Sec. 534. Section 151302(a) of title 11 of the United States Code is amended by inserting “, or shall appoint a disinterested person to serve,” after “The United States trustee shall serve”. Subtitle J— Collective Bargaining Agreements Sec. 541. (a) Title 11 of the United States Code is amended by adding after section 1112 the following new section: “§ 1113. Rejection of collective bargaining agreements “(a) The debtor in possession, or the trustee if one has been appointed under the provisions of this chapter, other than a trustee 11 USC 1161. 45 USC 151. in a case covered by subchapter IV of this chapter and by title I of the Railway Labor Act, may assume or reject a collective bargaining agreement only in accordance with the provisions of this section. “(b) (1) Subsequent to filing a petition and prior to filing an application seeking rejection of a collective bargaining agreement, the debtor in possession or trustee (hereinafter in this section ‘trustee’ shall include a debtor in possession), shall— “(A) make a proposal to the authorized representative of the employees covered by such agreement, based on the most complete and reliable information available at the time of such proposal, which provides for those necessary modifications in the employees benefits and protections that are necessary to permit the reorganization of the debtor and assures that all creditors, the debtor and all of the affected parties are treated fairly and equitably; and “(B) provide, subject to subsection (d)(3), the representative of the employees with such relevant information as is necessary to evaluate the proposal. “(2) During the period beginning on the date of the making of a proposal provided for in paragraph (1) and ending on the date of the hearing provided for in subsection (d)(1), the trustee shall meet, at reasonable times, with the authorized representative to confer in good faith in attempting to reach mutually satisfactory modifications of such agreement. “(c) The court shall approve an application for rejection of a collective bargaining agreement only if the court finds that— “(1) the trustee has, prior to the hearing, made a proposal that fulfills the requirements of subsection (b)(1); “(2) the authorized representative of the employees has refused to accept such proposal without good cause; and “(3) the balance of the equities clearly favors rejection of such agreement. “(d) (1) Upon the filing of an application for rejection the court shall schedule a hearing to be held not later than fourteen days after the date of the filing of such application. All interested parties may appear and be heard at such hearing. Adequate notice shall be provided to such parties at least ten days before the date of such nearing. The court may extend the time for the commencement of such hearing for a period not exceeding seven days where the circumstances of the case, and the interests of justice require such extension, or for additional periods of time to which the trustee and representative agree. “(2) The court shall rule on such application for rejection within thirty days after the date of the commencement of the hearing. In the interests of justice, the court may extend such time for ruling for such additional period as the trustee and the employees’ representative may agree to. If the court does not rule on such application within thirty days after the date of the commencement of the hearing, or within such additional time as the trustee and the employees’ representative may agree to, the trustee may terminate or alter any provisions of the collective bargaining agreement pending the ruling of the court on such application. “(3) The court may enter such protective orders, consistent with Confidentiality. the need of the authorized representative of the employee to evaluate the trustee’s proposal and the application for rejection, as may be necessary to prevent disclosure of information provided to such representative where such disclosure could compromise the position of the debtor with respect to its competitors in the industry in which it is engaged. “(e) If during a period when the collective bargaining agreement continues in effect, and if essential to the continuation of the debtor’s business, or in order to avoid irreparable damage to the estate, the court, after notice and a hearing, may authorize the trustee to implement interim changes in the terms, conditions, wages, benefits, or work rules provided by a collective bargaining agreement. Any hearing under this paragraph shall be scheduled in accordance with the needs of the trustee. The implementation of such interim changes shall not render the application for rejection moot. “(f) No provision of this title shall be construed to permit a trustee to unilaterally terminate or alter any provisions of a collective bargaining agreement prior to compliance with the provisions of this section.”. (b) The table of sections for chapter 11 of title 11, United States Code, is amended by inserting after the item relating to section 1112 the following new item: “1113. Rejection of collective bargaining agreements.”. (c) The amendments made by this section shall become effective Effective date. 11 USC 1113 note. upon the date of enactment of this Act; provided that this section shall not apply to cases filed under title 11 of the United States Code which were commenced prior to the date of enactment of this section. Subtitle K— Miscellaneous Sec. 551. If any provision of this title or any amendment made by Provisions held invalid. 11 USC 101 note. this title, or the application thereof to any person or circumstance is held invalid, the provisions of every other part, and their application shall not be affected thereby. Sec. 552. Notwithstanding the provisions of section 8331(22) of title 5, United States Code, or any other provision of law, for purposes of section 8339(n) of title 5, United States Code, any individual appointed under section 34 of the Bankruptcy Act who served as a United States bankruptcy judge for Ante, p. 343. the district of Oregon or for the Central district of California until March 31, 1984, shall receive an annuity computed with respect to his service as a referee in bankruptcy and as a bankruptcy judge, and his military service (not exceeding five years) creditable under section 8332 of title 5, United States Code, by multiplying 2¼ per centum of his average annual pay by the years of that service. Sec. 553. (a) Except as otherwise provided in this section the amendments made by this title shall become effective to cases filed 90 days after the date of enactment of this Act. (b) The amendments made by section 426(b) shall become effective upon the date of enactment of this Act. (c) The amendments made by subtitle J, shall become effective as provided in section 541(c).Pub. L. 98–353 title III · 98 Stat. 333
Added · 11 U.S.C. § 101(47)
Pub. L. 98–353, §§ 401(2), 421(j)(1), added par. (43)
Redesignated · 11 U.S.C. § 101(47)
Pub. L. 98–353, §§ 401(2), 421(j)(1), redesignated such par. (43) as (47)
Source evidence
Code amendment note
Par. (47). Pub. L. 98–353, §§ 401(2), 421(j)(1), added par. (43) and redesignated such par. (43) as (47).Enacted provision · exact public law
TITLE III— AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE Subtitle A— Consumer Credit Amendments Sec. 301. Section 109 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Notwithstanding any other provision of this section, no individual may be a debtor under this title who has been a debtor in a case pending under this title at any time in the preceding 180 days if— “(1) the case was dismissed by the court for willful failure of the debtor to abide by orders of the court, or to appear before the court in proper prosecution of the case; or “(2) the debtor requested and obtained the voluntary dismissal of the case following the filing of a request for relief from the automatic stay provided by section 362 of this title.”. Sec. 302. Section 342 of title 11, United States Code, is amended— (1) by inserting “(a)” before “There shall be given”, and (2) by adding at the end thereof the following new subsection: “(b) Prior to the commencement of a case under this title by an individual whose debts are primarily consumer debts, the clerk shall give written notice to such individual that indicates each chapter of this title under which such individual may proceed.”. Sec. 303. Section 349(a) of title 11, United States Code, is amended by inserting before the period at the end thereof nor does the dismissal of a case under this title prejudice the debtor with regard to the filing of a subsequent petition under this title, except as Supra. provided in section 109(f) of this title”. Sec. 304. Section 362 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(h) An individual injured by any willful violation of a stay provided by this section shall recover actual damages, including costs and attorneys’ fees, and, in appropriate circumstances, may recover punitive damages.”. Sec. 305. Section 521 of title 11, United States Code, is amended— (1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, (2) in paragraph (1) by inserting “a schedule of current income and current expenditures,” after “liabilities,”, and (3) by inserting after paragraph (1) the following new paragraph: “(2) if an individual debtor’s schedule of assets and liabilities includes consumer debts which are secured by property of the estate— “(A) within thirty days after the date of the filing of a petition under chapter 7 of this title or on or before the date of the meeting of creditors, whichever is earlier, or within such additional time as the court, for cause, within such period fixes, the debtor shall file with the clerk a statement of his intention with respect to the retention or surrender of such property and, if applicable, specifying that such property is claimed as exempt, that the debtor intends to redeem such property, or that the debtor intends to reaffirm debts secured by such property; “(B) within forty-five days after the filing of a notice of intent under this section, or within such additional time as the court, for cause, within such forty-five day period fixes, the debtor shall perform his intention with respect to such property, as specified by subparagraph (A) of this paragraph; and “(C) nothing in subparagraphs (A) and (B) of this paragraph shall alter the debtor’s or the trustee’s rights with regard to such property under this title;”. Sec. 306. (a) Section 522(b) of title 11, United States Code, is amended by striking out “Notwithstanding” and all that follows through “either—” and inserting in lieu thereof the following: “Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (1) or, in the alternative, paragraph (2) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Bankruptcy Rules, one 11 USC app. debtor may not elect to exempt property listed in paragraph (1) and the other debtor elect to exempt property listed in paragraph (2) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (1), where such election is permitted under the law of the jurisdiction where the case is filed. Such property is—”. (b) Section 522(d)(3) of title 11, United States Code, is amended by inserting “or $4,000 in aggregate value” after “item”. (c) Section 522(d)(5) of title 11, United States Code, is amended to read as follows: “(5) The debtor’s aggregate interest in any property, not to exceed in value $400 plus up to $3,750 of any unused amount of the exemption provided under paragraph (1) of this subsection”. (d) Section 522(m) of title 11, United States Code, is amended to read as follows: “(m) Subject to the limitation in subsection (b), this section shall apply separately with respect to each debtor in a joint case.”. Sec. 307. (a) Section 523(a)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “or” at the end thereof, (2) in subparagraph (B) by inserting “or” at the end thereof, and (3) by adding at the end thereof the following new subparagraph: “(C) for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $500 for ‘luxury goods or services’ incurred by an individual debtor on or within forty days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within twenty days before the order for relief under this title, are presumed to be nondischargeable; ‘luxury goods or services’ do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.);”. (b) Section 523(d) of title 11, United States Code, is amended to read as follows: “(d) If a creditor requests a determination of dischargeability of a consumer debt under subsection (a)(2) of this section, and such debt is discharged, the court shall grant judgment in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding if the court finds that the position of the creditor was not substantially justified, except that the court shall not award such costs and fees if special circumstances would make the award unjust.”. Sec. 308. (a) Section 524(a)(2) of title 11, United States Code, is amended by striking out “or from property of the debtor,”. (b) Section 524(c) of title 11, United States Code, is amended— (1) by striking out paragraph (2), (2) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively, and (3) by inserting after paragraph (1) the following new paragraphs: “(2) such agreement contains a clear and conspicuous statement which advises the debtor that the agreement may be rescinded at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of rescission to the holder of such claim; “(3) such agreement has been filed with the court and, if applicable, accompanied by a declaration or an affidavit of the attorney that represented the debtor during the course of negotiating an agreement under this subsection, which states that such agreement— “(A) represents a fully informed and voluntary agreement by the debtor; and “(B) does not impose an undue hardship on the debtor or a dependent of the debtor; “(4) the debtor has not rescinded such agreement at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of recission to the holder of such claim;” and (4) by amending paragraph (6), as so redesignated, to read as follows: “(6) (A) in a case concerning an individual who was not represented by an attorney during the course of negotiating an agreement under this subsection, the court approves such agreement as— “(i) not imposing an undue hardship on the debtor or a dependent of the debtor; and “(ii) in the best interest of the debtor. “(B) Subparagraph (A) shall not apply to the extent that such debt is a consumer debt secured by real property.”. (c) Section 524(d)(2) of title 11, United States Code, is amended by striking out “subsection (c)(4)” and inserting in lieu thereof “subsection (c)(6)”. (e) Section 524 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Nothing contained in subsection (c) or (d) of this section prevents a debtor from voluntarily repaying any debt.”. Sec. 309. Section 525 of title 11, United States Code, is amended— (1) by inserting “(a)” before “Except”, (2) by inserting “the” before “Perishable”, and (3) by adding at the end thereof the following new subsection: Employment and unemployment. Discrimination, prohibition. 11 USC note prec. 101. “(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt— “(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act; “(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or “(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.”. Sec. 310. Section 547(c) of title 11, United States Code, is amended— (1) in paragraph (5) by striking out “or” at the end thereof, (2) in paragraph (6) by striking out the period at the end thereof and inserting in lieu thereof “; or”, and (3) by adding at the end thereof the following new paragraph: “(7) if, in a case filed by an individual debtor whose debts are primarily consumer debts, the aggregate value of all property that constitutes or is affected by such transfer is less than $600.”. Sec. 311. (a) Section 704 of title 11, United States Code, is amended— (1) by redesignating paragraphs (3), (4), (5), (6), (7), and (8) as paragraphs (4), (5), (6), (7), (8), and (9), respectively, and (2) by inserting after paragraph (2) the following new paragraph: “(3) ensure that the debtor shall perform his intention as specified in section 521(2)(B) of this title;”. Ante, p. 352. (b) (1) Section 1106(a)(1) of title 11, United States Code, is amended by striking out “704(4), 704(6), 704(7), and 704(8)” and inserting in lieu thereof “704(5), 704(7), 704(8), and 704(9)”. (2) Section 1304(c) of title 11, United States Code, is amended by striking out “section 704(7)” and inserting in lieu thereof “section 704(8)”. (3) Section 15103(f) of title 11, United States Code, is amended by striking out “704(8),” and inserting in lieu thereof “704(9),”. (4) Section 151301(b)(1) of title 11, United States Code, is amended 11 USC 151302. by striking out “and 704(8)” and inserting in lieu thereof “, 704(7), and 704(9)”. Sec. 312. Section 707 of title 11, United States Code, is amended— (1) by inserting “(a)” before “The court may” and (2) by adding at the end thereof the following new subsection: “(b) After notice and a hearing, the court, on its own motion and not at the request or suggestion of any party in interest, may dismiss a case filed by an individual debtor under this chapter whose debts are primarily consumer debts if it finds that the granting of relief would be a substantial abuse of the provisions of this chapter. There shall be a presumption in favor of granting the relief requested by the debtor.”. Sec. 313. Section 1301 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(d) Twenty days after the filing of a request under subsection (c)(2) of this section for relief from the stay provided by subsection (a) of this section, such stay is terminated with respect to the party in interest making such request, unless the debtor or any individual that is liable on such debt with the debtor files and serves upon such party in interest a written objection to the taking of the proposed action.”. Sec. 314. Section 1302(b) of title 11, United States Code, is amended— (1) by amending paragraph (1) to read as follows: “(1) perform the duties specified in sections 704(2), 704(3), 704(4), 704(5), 704(6), 704(7), and 704(9) of this title;”; (2) in paragraph (2) by striking out “and” at the end thereof, (3) in paragraph (3) by striking out the period and inserting in lieu thereof “; and”, and (4) by adding at the end thereof the following new paragraph: “(4) ensure that the debtor commences making timely payments under section 1326 of this title.”. Sec. 315. Section 1307(c) of title 11, United States Code, is amended— (1) by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), respectively, and (2) by inserting after paragraph (3) the following new paragraph: “(4) failure to commence making timely payments under section 1326 of this title;”. Sec. 316. Section 1322(b)(1) of title 11, United States Code, is amended to read as follows: “(1) designate a class or classes of unsecured claims, as provided in section 1122 of this title, but may not discriminate unfairly against any class so designated; however, such plan may treat claims for a consumer debt of the debtor if an individual is liable on such consumer debt with the debtor differently than other unsecured claims;”. Sec. 317. Section 1325 of title 11, United States Code, is amended— (1) in subsection (a) by striking out “The” and inserting in lieu thereof “Except as provided in subsection (b), the”, (2) by redesignating subsection (b) as subsection (c), and (3) by inserting after subsection (a) the following new subsection: “(b) (1) If the trustee or the holder of an allowed unsecured claim objects to the confirmation of the plan, then the court may not approve the plan unless, as of the effective date of the plan— “(A) the value of the property to be distributed under the plan on account of such claim is not less than the amount of such claim; or “(B) the plan provides that all of the debtor’s projected disposable income to be received in the three-year period beginning on the date that the first payment is due under the plan will be applied to make payments under the plan. “(2) For purposes of this subsection, disposable income’ means income which is received by the debtor and which is not reasonably necessary to be expended— “(A) for the maintenance or support of the debtor or a dependent of the debtor; or “(B) if the debtor is engaged in business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business.”. Sec. 318. (a) Section 1326 of title 11, United States Code, is amended— (1) by redesignating subsections (a) and (b) as subsections (h) and (c), respectively, and (2) by inserting before such subsections the following new subsection: “(a) (1) Unless the court orders otherwise, the debtor shall commence making the payments proposed by a plan within 30 days after the plan is filed. “(2) A payment made under this subsection shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan. If a plan is not confirmed, the trustee shall return any such payments to the debtor, after deducting any unpaid claim allowed under section 503(b) of this title.”. (b) Section 15103(f) of title 11, United States Code, is amended by striking out “1326(a),” and inserting in lieu thereof “1326(b),”. Sec. 319. Section 1329(a) of title 11, United States Code, is amended by striking out “At” and all that follows through “modified to—”, and inserting in lieu thereof the following: “At any time after confirmation but before the completion of payments under a plan, the plan may be modified, upon request of the debtor, the trustee, or the holder of an allowed unsecured claim, to—”. Sec. 320. The Supreme Court shall prescribe general rules implementing Supreme Court of U.S. 28 USC 2075 note. Ante, p. 355. the practice and procedure to be followed under section 707(b) of title 11, United States Code. Section 2075 of title 28, United States Code, shall apply with respect to the general rules prescribed under this section. Sec. 321. Rule 2002 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision: “(n) In a voluntary case commenced under the Code by an individual debtor whose debts are primarily consumer debts, the clerk, or some other person as the court may direct, shall give the trustee and all creditors notice by mail of the order for relief not more than 20 days after the entry of such order.”. Sec. 322. Official Bankruptcy Form No. 1, referred to in Rule 1002 of the Bankruptcy Rules, is amended— 11 USC app. (1) by inserting after paragraph (5) the following: “(6) [If petitioner is an individual whose debts are primarily consumer debts.] Petitioner is aware that [he or she] may proceed under chapter 7 or 13 of title 11, United States Code, 11 USC 701 et seq.. 1301 et seq. understands the relief available under each such chapter, and chooses to proceed under chapter 7 of such title. “(7) [If petitioner is an individual whose debts are primarily consumer debts and such petitioner is represented by an attorney.] A declaration or an affidavit in the form of Exhibit ‘B’ is attached to and made a part of this petition.”, and (2) by inserting after Exhibit “A” at the end thereof the following new exhibit: “Exhibit ‘B’ “[If petitioner is an individual whose debts are primarily consumer debts, this Exhibit ‘B’ shall be completed and attached to the petition pursuant to paragraph (7) thereof.] Sec. 323. Section 408(c) of the Act of November 6, 1978 (Public Law 95–598; 92 Stat. 2687(c)), as amended by the Act of November 28, 1983 (Public Law 98–166; 97 Stat. 1071), is amended by striking out “September 30, 1984” and inserting in lieu thereof “September 30, 1986”. Sec. 324. Section 1103(b) of title 11, United States Code, is amended by striking out “A person” and inserting in lieu thereof “An attorney or accountant” Subtitle B— Amendments Relating to Grain Storage Facility Bankruptcy Sec. 350. Section 507(a) of title 11, United States Code, is amended— (1) by striking out “(5) Fifth” and inserting in lieu thereof “(6) Sixth” (2) by striking out “(6) Sixth” and inserting in lieu thereof “(7) Seventh”; and (3) by adding after paragraph (4) the following: “(5) Fifth, allowed unsecured claims of persons— “(A) engaged in the production or raising of grain, as Post, p. 359. defined in section 557(b)(1) of this title, against a debtor who owns or operates a grain storage facility, as defined in section 557(b)(2) of this title, for grain or the proceeds of grain, or “(B) engaged as a United States fisherman against a debtor who has acquired fish or fish produce from a fisherman through a safe or conversion, and who is engaged in operating a fish produce storage or processing facility— but only to the extent of $2,000 for each such individual.”. Sec. 351. Section 546 of title 11, United States Code, is amended— (1) in the first sentence of subsection (c) thereof, by striking out “The” and inserting in lieu thereof “Except as provided in subsection (d) of this section, the”; and (2) by redesignating subsection (d) as subsection (e); and (3) by inserting after subsection (c) the following: In the case of a seller who is a producer of grain sold to a grain storage facility, owned or operated by the debtor, in the ordinary course of such seller’s business (as such terms are defined Post, p. 359. in section 557 of this title) or in the case of a United States fisherman who has caught fish sold to a fish processing facility owned or operated by the debtor in the ordinary course of such fisherman’s business, the rights and powers of the trustee under sections 544(a), 545, 547, and 549 of this title are subject to any statutory or common law right of such producer or fisherman to reclaim such grain or fish if the debtor has received such grain or fish while insolvent, but— “(1) such producer or fisherman may not reclaim any grain or Claims. fish unless such producer or fisherman demands, in writing, reclamation of such grain or fish before ten days after receipt thereof by the debtor; and “(2) the court may deny reclamation to such a producer or fisherman with a right of reclamation that has made such a demand only if the court secures such claim by a lien.”. Sec. 352. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 557. Expedited determination of interests in, and abandonment or other disposition of grain assets “(a) This section applies only in a case concerning a debtor that owns or operates a grain storage facility and only with respect to grain and the proceeds of grain. This section does not affect the application of any other section of this title to property other than grain and proceeds of grain. “(b) In this section— “(1) ‘grain’ means wheat, corn, flaxseed, grain sorghum, barley, oats, rye, soybeans, other dry edible beans, or rice; “(2) ‘grain storage facility’ means a site or physical structure regularly used to store grain for producers, or to store grain acquired from prodùcers for resale; and “(3) ‘producer’ means an entity which engages in the growing of grain. “(c) (1) Notwithstanding sections 362, 363, 365, and 554 of this title, on the court’s own motion the court may, and on the request of the trustee or an entity that claims an interest in grain or the proceeds of grain the court shall, expedite the procedures for the determination of interests in and the disposition of grain and the proceeds of grain, by shortening to the greatest extent feasible such time periods as are otherwise applicable for such procedures and by establishing, by order, a timetable having a duration of not to exceed 120 days for the completion of the applicable procedure specified in subsection (d) of this section. Such time periods and such timetable may be modified by the court, for cause, in accordance with subsection (f) of this section. “(2) The court shall determine the extent to which such time periods shall be shortened, based upon— “(A) any need of an entity claiming an interest in such grain or the proceeds of grain for a prompt determination of such interest; “(B) any need of such entity for a prompt disposition of such grain; “(C) the market for such grain; “(D) the conditions under which such grain is stored; “(E) the costs of continued storage or disposition of such grain; “(F) the orderly administration of the estate; “(G) the appropriate opportunity for an entity to assert an interest in such grain; and “(H) such other considerations as are relevant to the need to expedite such procedures in the case. “(d) The procedures that may be expedited under subsection (c) of this section include— “(1) the filing of and response to— “(A) a claim of ownership; “(B) a proof of claim; “(C) a request for abandonment; “(D) a request for relief from the stay of action against property under section 362(a) of this title; “(E) a request for determination of secured status; “(F) a request for determination of whether such grain or the proceeds of grain— “(i) is property of the estate; “(ii) must be turned over to the estate; or “(iii) may be used, sold, or leased; and “(G) any other request for determination of an interest in such grain or the proceeds of grain; “(2) the disposition of such grain or the proceeds of grain, before or after determination of interests in such grain or the proceeds of grain, by way of— “(A) sale of such grain; “(B) abandonment; “(C) distribution; or “(D) such other method as is equitable in the case; “(3) subject to sections 701, 702, 703, 1104, and 1302 of this title, the appointment of a trustee or examiner and the retention and compensation of any professional person required to assist with respect to matters relevant to the determination of interests in or disposition of such grain or the proceeds of grain; and “(4) the determination of any dispute concerning a matter specified in paragraph (1), (2), or (3) of this subsection. “(e) (1) Any governmental unit that has regulatory jurisdiction over the operation or liquidation of the debtor or the debtor’s business shall be given notice of any request made or order entered under subsection (c) of this section. “(2) Any such governmental unit may raise, and may appear and be heard on, any issue relating to grain or the proceeds of grain in a case in which a request is made, or an order is entered, under subsection (c) of this section. “(3) The trustee shall consult with such governmental unit before taking any action relating to the disposition of grain in the possession, custody, or control of the debtor or the estate. “(f) The court may extend the period for final disposition of grain or the proceeds of grain under this section beyond 120 days if the court finds that— “(1) the interests of justice so require in light of the complexity of the case; and “(2) the interests of those claimants entitled to distribution of grain or the proceeds of grain will not be materially injured by such additional delay. “(g) Unless an order establishing an expedited procedure under subsection (c) of this section, or determining any interest in or approving any disposition of grain or the proceeds of grain, is stayed pending appeal— “(1) the reversal or modification of such order on appeal does not affect the validity of any procedure, determination, or disposition that occurs before such reversal or modification, whether or not any entity knew of the pendency of the appeal; and “(2) neither the court nor the trustee may delay, due to the appeal of such order, any proceeding in the case in which such order is issued. “(h) (1) The trustee may recover from grain and the proceeds of grain the reasonable and necessary costs and expenses allowable under section 503(b) of this title attributable to preserving or disposing of grain or the proceeds of grain, but may not recover from such grain or the proceeds of grain any other costs or expenses. “(2) Notwithstanding section 326(a) of this title, the dollar amounts of money specified in such section include the value, as of the date of disposition, of any grain that the trustee distributes in kind. “(i) In all cases where the quantity of a specific type of grain held by a debtor operating a grain storage facility exceeds ten thousand bushels, such grain shall be sold by the trustee and the assets thereof distributed in accordance with the provisions of this section.”. (b) The table of sections of chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: ‘557 Expedited determination of interests in and disposition of grain.”. Sec. 353. Section 901(a) of title 11, United States Code, is amended by inserting “557,” after “553,”. Sec. 354. Rule 3001 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision “(g) To the extent not inconsistent with the United States Warehouse Act or applicable State law, a warehouse receipt, scale ticket, or similar document of the type routinely issued as evidence of title by a grain storage facility, as defined in section 557 of title 11, shall constitute prima facie evidence of the validity and amount of a claim of ownership of a quantity of grain ”. Subtitle C— Leasehold Management Amendments Sec. 361. This subtitle may be cited as the “Leasehold Management Bankruptcy Amendments Act of 1983”. Sec. 362. (a) Section 365 of title 11, United States Code, is amended by amending subsections (a), (b), (c), and (d) to read as follows: “(a) Except as provided in sections 765 and 766 of this title and in subsections (b), (c), and (d) of this section, the trustee, subject to the court’s approval, may assume or reject any executory contract or unexpired lease of the debtor. “(b) (1) If there has been a default in an executory contract or unexpired lease of the debtor, the trustee may not assume such contract or lease unless, at the time of assumption of such contract or lease, the trustee— “(A) cures, or provides adequate assurance that the trustee will promptly cure, such default; “(B) compensates, or provides adequate assurance that the trustee will promptly compensate, a party other than the debtor to such contract or lease, for any actual pecuniary loss to such party resulting from such default; and “(C) provides adequate assurance of future performance under such contract or lease. “(2) Paragraph (1) of this subsection does not apply to a default that is a breach of a provision relating to— “(A) the insolvency or financial condition of the debtor at any time before the closing of the case; “(B) the commencement of a case under this title; or “(C) the appointment of or taking possession by a trustee in a case under this title or a custodian before such commencement. “(3) For the purposes of paragraph (1) of this subsection and paragraph (2)(B) of subsection (t), adequate assurance of future performance of a lease of real property in a shopping center includes adequate assurance— “(A) of the source of rent and other consideration due under such lease, and in the case of an assignment, that the financial condition and operating performance of the proposed assignee and its guarantors, if any, shall be similar to the financial condition and operating performance of the debtor and its guarantors, if any, as of the time the debtor became the lessee under the lease; “(B) that any percentage rent due under such lease will not decline substantially; “(C) that assumption or assignment of such lease is subject to all the provisions thereof, including (but not limited to) provisions such as a radius, location, use, or exclusivity provision, and will not breach any such provision contained in any other lease, financing agreement, or master agreement relating to such shopping center; and “(D) that assumption or assignment of such lease will not disrupt any tenant mix or balance in such shopping center. “(4) Notwithstanding any other provision of this section, if there has been a default in an unexpired lease of the debtor, other than a default of a kind specified in paragraph (2) of this subsection, the trustee may not require a lessor to provide services or supplies incidental to such lease before assumption of such lease unless the lessor is compensated under the terms of such lease for any services and supplies provided under such lease before assumption of such lease. “(c) The trustee may not assume or assign any executory contract or unexpired lease of the debtor, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties, if— “(1) (A) applicable law excuses a party, other than the debtor, to such contract or lease from accepting performance from or rendering performance to an entity other than the debtor or the debtor in possession or an assignee of such contract or lease, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties; and “(B) such party does not consent to such assumption or assignment; or “(2) such contract is a contract to make a loan, or extend other debt financing or financial accommodations, to or for the benefit of the debtor, or to issue a security of the debtor; or “(3) such lease of nonresidential real property has been terminated under applicable nonbankruptcy law prior to the order for relief. “(d) (1) In a case under chapter 7 of this title, if the trustee does not assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor within 60 days after the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such contract or lease is deemed rejected. “(2) In a case under chapter 9, 11, or 13 of this title, the trustee 11 USC 901 et seq., 1101 et seq., 1301 et seq. may assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor at any time before the confirmation of a plan but the court, on the request of any party to such contract or lease, may order the trustee to determine within a specified period of time whether to assume or reject such contract or lease. “(3) The trustee shall timely perform all the obligations of the debtor, except those specified in section 365(b)(2), arising from and Ante, p. 361. after the order for relief under any unexpired lease of nonresidential real property, until such lease is assumed or rejected, notwithstanding section 503(b)(1) of this title. The court may extend, for cause, the time for performance of any such obligation that arises within 60 days after the date of the order for relief, but the time for performance shall not be extended beyond such 60-day period. This subsection shall not be deemed to affect the trustee’s obligations under the provisions of subsection (b) or (f) of this section. Acceptance of any such performance does not constitute waiver or relinquishment of the lessor’s rights under such lease or under this title. “(4) Notwithstanding paragraphs (1) and (2), in a case under any chapter of this title, if the trustee does not assume or reject an unexpired lease of nonresidential real property under which the debtor is the lessee within 60 days after the date of the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such lease is deemed rejected, and the trustee shall immediately surrender such nonresidential real property to the lessor.”. (b) Section 365 is further amended by adding at the end thereof the following new subsection: “(l) If an unexpired lease under which the debtor is the lessee is assigned pursuant to this section, the lessor of the property may require a deposit or other security for the performance of the debtor’s obligations under the lease substantially the same as would have been required by the landlord upon the initial leasing to a similar tenant. “(m) For purposes of this section 365 and sections 541(b)(2) and Real property. Infra. 362(b)(9), leases of real property shall include any rental agreement to use real property.”. Sec. 363. (a) Section 541(b) of title 11, United States Code, is amended to read as follows: “(b) Property of the estate does not include— “(1) any power that the debtor may exercise solely for the benefit of an entity other than the debtor; or “(2) any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease before the commencement of the case under this title, and ceases to include any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease during the case.”. (b) Section 362(b) of title 11 of the United States Code is amended by— (1) striking out “or” at the end of paragraph (7), (2) replacing the period after paragraph (8) with “; or”, and (3) adding the following after paragraph (8): “(9) under subsection (a) of this section, of any act by a lessor to the debtor under a lease of nonresidential real property that has terminated by the expiration of the stated term of the lease before the commencement of or during a case under this title to obtain possession of such property.”. Subtitle D— Amendments to Title 11, Section 523 Relating to the Discharge of Debts Incurred by Persons Driving While Intoxicated Sec. 371. Section 523(a) of title 11, United States Code, is amended by— (1) striking out “or” at the end of paragraph (8); and (2) by adding the following new paragraph after such paragraph: “(9) to any entity, to the extent that such debt arises from a judgment or consent decree entered in a court of record against the debtor wherein liability was incurred by such debtor as a result of the debtor’s operation of a motor vehicle while legally intoxicated under the laws or regulations of any jurisdiction within the United States or its territories wherein such motor vehicle was operated and within which such liability was incurred; or”. Subtitle E— Referees Salary and Expense Fund Sec. 381. This subtitle may be cited as the “Referees Salary and Expense Fund Act of 1984”. Sec. 382. Section 403(e) of the Act of November 6, 1978 (92 Stat. 2683; Public Law 95–598), is amended to read as follows: “(e) Notwithstanding subsection (a) of this section— “(1) a fee may not be charged under section 40c(2)(a) of the Bankruptcy Act in a case pending under such Act after September 30, 1979, to the extent that such fee exceeds $200,000; “(2) a fee may not be charged under section 40c(2)(b) of the Bankruptcy Act in a case in which the plan is confirmed after September 30, 1978, or in which the final determination as to the amount of such fee is made after September 30, 1979, notwithstanding an earlier confirmation date, to the extent that such fee exceeds $100,000; “(3) after September 30, 1979, all moneys collected for payment into the referees’ salary and expense fund in cases filed 11 USC note prec. 101. under the Bankruptcy Act shall be collected and paid into the general fund of the Treasury; and “(4) any balance in the referees’ salary and expense fund in the Treasury on October 1, 1979, shall be transferred to the general fund of the Treasury and the referees’ salary and expense fund account shall be closed.”. Subtitle F— Amendments Regarding Repurchase Agreements Sec. 391. Section 101 of title 11, United States Code, is amended— (1) by redesignating paragraphs (35), (36), (37), (38), (39), (40), and (41), as paragraphs (37), (38), (39), (40), (41), (42), and (43), respectively, and (2) by inserting after paragraph (34) the following new paragraphs: “(35) ‘repo participant’ means an entity that, on any day during the period beginning 90 days before the date of the filing of the petition, has an outstanding repurchase agreement with the debtor; “(36) ‘repurchase agreement’ (which definition also applies to Securities. a reverse repurchase agreement) means an agreement, including related terms, which provides for the transfer of certificates of deposit, eligible bankers’ acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, or securities with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, or securities as described above, at a date certain not later than one year after such transfers or on demand, against the transfer of funds;”. Sec. 392. Section 362(b) of title 11, United States Code, is Ante, p. 363. amended— (a) by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively, and (b) by inserting after paragraph (6) the following new paragraph: “(7) under subsection (a) of this section, of the setoff by a repo participant, of any mutual debt and claim under or in connection with repurchase agreements that constitutes the setoff of a claim against the debtor for a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, arising out of repurchase agreements against cash, securities, or other property held by or due from such repo participant to margin, guarantee, secure or settle repurchase agreements;”. Sec. 393. Section 546 of title 11, United States Code, is amended by Ante, p. 358. inserting after subsection (e), as redesignated by section 251, the following: Notwithstanding sections 544, 545, 547, 548(a)(2), and 548(b) of this title, the trustee may not avoid a transfer that is a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, made by or to a repo participant, in connection with a repurchase agreement and that is made before the commencement of the case, except under section 548(a)(1) of this title.”. Sec. 394. Section 548(d)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “and” at the end thereof; (2) in subparagraph (B) by striking out the period at the end thereof and inserting in lieu thereof “; and”; and by inserting after paragraph (B) the following new subparagraph: “(C) a repo participant that receives a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, in connection with a repurchase agreement, takes for value to the extent of such payment.”. Sec. 395. Section 553(b)(1) of title 11, United States Code, is amended by inserting “, 362(b)(7),” after “362(b)(6)”. Sec. 396. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 559. Contractual right to liquidate a repurchase agreement “The exercise of a contractual right of a repo participant to cause the liquidation of a repurchase agreement because of a condition of the kind specified in section 365(e)(1) of this title shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title, unless, where the debtor is a stockbroker or securities clearing agency, such order is authorized under the provisions of the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) or any statute administered by the Securities and Exchange Commission. In the event that a repo participant liquidates one or more repurchase agreements with a debtor and under the terms of one or more such agreements has agreed to deliver assets subject to repurchase agreements to the debtor, any excess of the market prices received on liquidation of such assets (or if any such assets are not disposed of on the date of liquidation of such repurchase agreements, at the prices available at the time of liquidation of such repurchase agreements from a generally recognized source or the most recent closing bid quotation from such a source) over the sum of the stated repurchase prices and all expenses in connection with the liquidation of such repurchase agreements shall be deemed property of the estate, subject to the available rights of setoff. As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw, applicable to each party to the repurchase agreement, of a national securities exchange, a national securities association, or a securities clearing agency, and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal business practice.”. (b) The analysis of sections for chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: “559. Contractual right to liquidate a repurchase agreement.”. Subtitle G— Amendments to Title 11, Section 365 of the United States Code to Provide Adequate Protection for Timeshare Consumers Sec. 401. Title 11, United States Code, section 101 is hereby amended by— (1) redesignating paragraph (43), as redesignated by section Ante, p. 364. Real property. 391, as paragraph (44); and (2) adding the following paragraph after paragraph (42), as redesignated in section 391: “(43) ‘timeshare plan’ means and shall include that interest purchased in any arrangement, plan, scheme, or similar device, but not including exchange programs, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, right to use agreement, or by any other means, whereby a purchaser, in exchange for consideration, receives a right to use accommodations, facilities, or recreational sites, whether improved or unimproved, for a specific period of time less than a full year during any given year, but not necessarily for consecutive years, and which extends for a period of more than three years. A ‘timeshare interest’ is that interest purchased in a timeshare plan which grants the purchaser the right to use and occupy accommodations, facilities, or recreational sites, whether improved or unimproved, pursuant to a timeshare plan.”. Sec. 402. Section 365(h)(1) of title 11, United States Code, is Real property. amended to read as follows: “(h) (1) If the trustee rejects an unexpired lease of real property of the debtor under which the debtor is the lessor, or a timeshare interest under a timeshare plan under which the debtor is the timeshare interest seller, the lessee or timeshare interest purchaser under such lease or timeshare plan may treat such lease or time-share plan as terminated by such rejection, where the disaffirmance by the trustee amounts to such a breach as would entitle the lessee or timeshare interest purchaser to treat such lease as terminated by virtue of its own terms, applicable nonbankruptcy law, or other agreements the lessee or timeshare interest purchaser has made with other parties; or, in the alternative, the lessee or timeshare interest purchaser may remain in possession of the leasehold or timeshare interest under any lease or timeshare plan the term of which has commenced for the balance of such term and for any renewal or extension of such term that is enforceable by such lessee or timeshare interest purchaser under applicable nonbankruptcy law.”. Sec. 403. Section 365(h)(2) of title 11, United States Code, is Real property. amended to read as follows: “(2) If such lessee or timeshare interest purchaser remains in possession as provided in paragraph (1) of this subsection, such lessee or timeshare interest purchaser may offset against the rent reserved under such lease or moneys due for such timeshare interest for the balance of the term after the date of the rejection of such lease or timeshare interest, and any such renewal or extension thereof, any damages occurring after such date caused by the non-performance of any obligation of the debtor under such lease or timeshare plan after such date, but such lessee or timeshare interest purchaser does not have any rights against the estate on account of any damages arising after such date from such rejection, other than such offset.”. Sec. 404. Section 365(i)(1) of title 11, United States Code, is Real property. amended to read as follows: “(i) (1) If the trustee rejects an executory contract of the debtor for the sale of real property or for the sale of a timeshare interest under a timeshare plan, under which the purchaser is in possession, such purchaser may treat such contract as terminated, or, in the alternative, may remain in possession of such real property or timeshare interest.”. Subtitle H— Miscellaneous Amendments to Title 11 Sec. 421. (a) Section 101(2)(D) of title 11 of the United States Code is amended by striking out “or all” after “business”. (b) Section 101(8)(B) of title 11 of the United States Code is amended by striking out the colon at the end thereof and inserting in lieu thereof a semicolon. (c) Section 101(9)(B) of title 11 of the United States Code is amended by inserting “348(d),” after “section”. (d) Section 101(14) of title 11 of the United States Code is amended by inserting “and” after “trust,”. (e) Section 101(24) of title 11 of the United States Code is amended by striking out “stock broker” and inserting in lieu thereof “stockbroker” (f) Section 101(26)(B)(ii) of title 11 of the United States Code is amended by— (1) striking out “separate” each place it appears and inserting in lieu thereof “nonpartnership”; and (2) striking out “(A)(ii) and inserting in lieu thereof “(A)”, (g) Section 101(30) of title 11 of the United States Code is amended to read as follows: (30) “person” includes individual, partnership, and corporation, but does not include governmental unit, Provided, however, That any governmental unit that acquires an asset from a person as a result of operation of a loan guarantee agreement, or as receiver or liquidating agent of a person, will be considered a person for purposes of section 1102 of this title. (h) Section 101(38)(B)(vi) of title 11 of the United States Code, as Ante, p. 364. redesignated by section 391 of this Act, is amended by— (1) striking out “certificate specified in clause (xii) of subparagraph (A)” and inserting in lieu thereof “certificate of a kind specified in subparagraph (A)(xii)”; and (2) striking out “the subject of such a registration statement” and inserting in lieu thereof “required to be the subject of a registration statement”. (i) Section 101(44) of title 11 of the United States Code, as so redesignated, is amended by striking out the period and inserting in lieu thereof “and foreclosure of the debtor’s equity of redemption; and”. (j) Section 101 of title 11 of the United States Code is amended— (1) by redesignating paragraphs (41) through (44), as previously redesignated, as paragraphs (45) through (48); (2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively; (3) by redesignating paragraphs (19) and (20) as paragraphs (20) and (21), respectively; (4) by inserting after paragraph (18) the following: “(19) ‘financial institution’ means a person that is a commercial or savings bank, industrial savings bank, savings and loan association, or trust company and, when any such person is acting as agent or custodian for a customer in connection with a securities contract, as defined in section Post, p. 382. 741(7) of this title, such customer;”; (5) by inserting after paragraph (21) as redesignated herein the following: “(22) ‘forward contract’ means a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity, or product or byproduct thereof, with a maturity date more than two days after the date the contract is entered into; “(23) ‘forward contract merchant’ means a person whose business consists in whole or in part of entering into forward contracts as or with merchants in commodities;”; (6) by inserting after paragraph (43) the following: “(44) ‘State’ includes the District of Columbia and Puerto Rico, except for the purpose of defining who may be a debtor under chapter 9 of this title;”; and 11 USC 901 el seq. (7) by inserting after paragraph (48) the following: “(49) ‘United States’, when used in a geographical sense, includes all locations where the judicial jurisdiction of the United States extends, including territories and possessions of the United States;”. Sec. 422. Section 102 of title 11 of the United States Code is amended by striking out “continued” and inserting in lieu thereof “contained” in paragraph (8). Sec. 423. Section 103(c) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stockbroker”. Sec. 424. (a) Subsections (a)(1), (b)(1), and (c)(1) of section 108 of title 11 of the United States Code are each amended by striking out “and” each place it appears and inserting in lieu thereof “or”. (b) Subsections (a), (b), and (c) of section 108 of title 11 of the United States Code are each amended by inserting “nonbankruptcy” after “applicable” and after “entered in a” each place such terms appear. Sec. 425. (a) Section 109 of title 11 of the United States Code, is amended by striking out “in the United States,” the first place it appears. (b) Section 109(c)(5)(D) of title 11 of the United States Code of this Act is amended by striking out “preference” and inserting in lieu thereof “transfer that is avoidable under section 547 of this title”. (c) Section 109(d) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stock-broker”. Sec. 426. (a) Section 303(b) of title 11 of the United States Code is amended by inserting “against a person” after “involuntary case”. (b) Section 303 of title 11 of the United States Code, is amended— (1) in subsection (b)(1) by inserting “or the subject on a bona fide dispute,” after “liability”; and (2) in subsection (h)(1) by inserting “unless such debts that are the subject of a bona fide dispute” after “due”. Sec. 427. Section 303(j)(2) of title 11 of the United States Code is amended by striking out “debtors” and inserting in lieu thereof “debtor”. Sec. 428. Section 321(b) of title 11 of the United States Code is amended by striking out “a case” and inserting in lieu thereof “the case”. Sec. 429. Section 322(b)(1) of title 11 of the United States Code is amended by inserting “required to be” after “bond”. Sec. 430. (a) Section 326(a) of title 11 of the United States Code is amended by striking out all the language beginning with “three percent” through “$50,000” the second place the latter appears and inserting in lieu thereof “and three percent on any amount in excess of $3,000”. (b) Section 326(d) of title 11 of the United States Code is amended to read as follows: “(d) The court may deny allowance of compensation for services or reimbursement of expenses of the trustee if the trustee failed to make diligent inquiry into facts that would permit denial of allowance under section 328(c) of this title or, with knowledge of such facts, employed a professional person under section 327 of this title.”. (c) Section 327(c) of title 11 of the United States Code is amended to read as follows: “(c) In a case under chapter 7 or 11 of this title, a person is not disqualified for employment under this section solely because of such person’s employment by or representation of a creditor, unless there is objection by another creditor, in which case the court shall disapprove such employment if there is an actual conflict of interest.”. Sec. 431. Section 328(a) of title 11 of the United States Code is amended by striking out “unanticipatable” and inserting in lieu thereof “not capable of being anticipated”. Sec. 432. (a) Section 329(a) of title 11 of the United States Code is amended by striking out “and” the first place it appears and inserting in lieu thereof “or”. (b) Section 329(b)(1) of title 11 of the United States Code is amended by striking out “trustee” and inserting in lieu thereof “estate” Sec. 433. Section 330(a) of title 11 of the United States Code is amended— (1) by striking out “to any parties in interest and to the United States trustee”; and (2) in paragraph (1), by striking out “time, the nature, the extent, and the value of such services” and inserting in lieu thereof “nature, the extent, and the value of such services, the time spent on such services”. Sec. 434. (a) Section 330(b) of title 11 of the United States Code is amended by striking out “$20” and inserting in lieu thereof “$45”. (b) Section 330 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(c) Unless the court orders otherwise, in a case under chapter 13 11 USC 1301 et seq. of this title the compensation paid to the trustee serving in the case shall not be less than $5 per month from any distribution under the plan during the administration of the plan.”. Sec. 435. Section 342 of title 11 of the United States Code as Ante, p. 352. amended by section 302 is further amended by amending subsection (a) to read as follows: “(a) There shall be given such notice as is appropriate, including notice to any holder of a community claim, of an order for relief in a case under this title.”. Sec. 436. Section 343 of title 11 of the United States Code is amended by striking out “examiner” the last place it appears and inserting in lieu thereof “examine”. Sec. 437. Section 345 of title 11 of the United States Code is amended by adding at the end thereof a new subsection (c) as follows: “(c) An entity with which such moneys are deposited or invested is authorized to deposit or invest such moneys as may be required under this section”. Sec. 438. Section 346(c)(2) of title 11 of the United States Code is amended by striking out “operation” and inserting in lieu thereof “corporation”. Sec. 439. Section 350(b) of title 11 of the United States Code is amended by striking out “a” and inserting in lieu thereof “A”. Sec. 440. Section 361(1) of title 11 of the United States Code is amended by inserting “a cash payment or” after “make ”. Sec. 441. (a) Section 362(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “action or” after “other”; and (2) in paragraph (3), by inserting “or to exercise control over property of the estate” after “estate” the second place it appears. (b) Section 362(b) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting “or to the extent that such act is accomplished within the period provided under section 547(e)(2)(A) of this title” after “title”; (2) in paragraph (6), by— (A) inserting “or due from” after “held by”; and (B) striking out “or secure commodity contracts” and inserting in lieu thereof “secure, or settle commodity contracts”, and by inserting “financial institution,” after “stockbroker” each time it appears. (3) in paragraph (8) as redesignated by section 392, by— Ante, p. 365. (A) striking out “said” and inserting in lieu thereof “the”; and (B) striking out “or” the last place it appears; (4) in paragraph (9) as redesignated by section 392, by striking out the period and inserting in lieu thereof a semicolon; and (5) by adding after paragraph (9) the following new paragraph: “(10) under subsection (a) of this section, of the presentment of a negotiable instrument and the giving of notice of and protesting dishonor of such an instrument.”. (c) Section 362(c)(2)(B) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. (d) Section 362(d)(2) of title 11 of the United States Code is amended by inserting “under subsection (a) of this section” after “property” the first place it appears. (e) Section 362(e) of title 11 of the United States Code is amended— (1) in the first sentence by inserting “the conclusion of” after “pending”; and (2) by striking out the last sentence and inserting in lieu thereof the following: “The court shall order such stay continued in effect pending the conclusion of the final hearing under subsection (d) of this section if there is a reasonable likelihood that the party opposing relief from such stay will prevail at the conclusion of such final hearing. If the nearing under this subsection is a preliminary hearing, then such final hearing shall be commenced not later than thirty days after the conclusion of such preliminary hearing.”. (f) Section 362(f) of title 11 of the United States Code is amended by— (1) striking out “The” and inserting in lieu thereof “Upon request of a party in interest, the”; and (2) inserting “with or” after “court,”. Sec. 442. (a) Section 363(a) of title 11 of the United States Code is amended by— (1) inserting “whenever acquired” after “equivalents”; and (2) inserting “and includes the proceeds, products, offspring, rents, or profits of property subject to a security interest as provided in section 552(b) of this title, whether existing before or after the commencement of a case under this title” after “interest”. (b) Section 363(b) of title 11 of the United States Code is amended by— (1) striking out “(b)” and inserting in lieu thereof “(b)(1)”; and (2) adding at the end thereof the following new paragraph: “(2) If notification is required under subsection (a) of section 7 A of the Clayton Act (15 U.S.C. 18a) in the case of a transaction under this subsection, then— “(A) notwithstanding subsection (a) of such section, such notification shall be given by the trustee; and “(B) notwithstanding subsection (b) of such section, the required waiting period shall end on the tenth day after the date of the receipt of such notification, unless the court, after notice and hearing, orders otherwise.”. (c) Section 363(e) of title 11 of the United States Code is amended by— (1) inserting “, with or without a hearing,” after “court”; and (2) striking out the last sentence. (d) Section 363(f)(3) of title 11 of the United States Code is amended by striking out “such interest” the second place it appears and inserting in lieu thereof “all liens on such property”. (e) Section 363(h) of title 11 of the United States Code is amended by striking out “immediately before” and inserting in lieu thereof “at the time of”. (f) Section 363(i) of title 11 of the United States Code is amended by striking out “compenation” and inserting in lieu thereof “compensation”. (g) Section 363(k) of title 11 of the United States Code is amended by striking out “if the holder” and inserting in lieu thereof “unless the court for cause orders otherwise the holder of such claim may bid at such sale, and, if the holder”. (h) Section 363(1) of title 11 of the United States Code is amended by— (1) striking out “The trustee” and inserting in lieu thereof “Subject to the provisions of section 365, the trustee”; (2) striking out “conditions” and inserting in lieu thereof “condition”; (3) striking out “a taking” and inserting in lieu thereof “or the taking”; and (4) striking out “interests” and inserting in lieu thereof “interest”. (i) Section 363(n) of title 11 of the United States Code is amended by— (1) striking out “void” and inserting in lieu thereof “avoid”; (2) striking out “voiding” and inserting in lieu thereof “avoiding”; and (3) amending the last sentence to read as follows: “In addition to any recovery under the preceding sentence, the court may grant judgment for punitive damages in favor of the estate and against any such party that entered into such an agreement in willful disregard of this subsection.”. (j) Section 363 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(o) In any hearing under this section— “(1) the trustee has the burden of proof on the issue of adequate protection; and “(2) the entity asserting an interest in property has the burden of proof on the issue of the validity, priority, or extent of such interest.”. Sec. 443. Section 366(a) of title 11 of the United States Code is amended by inserting “of the commencement of a case under this title or” after “basis”. Sec. 444. Section 501(d) of title 11 of the United States Code is amended by inserting “502(e)(2),” before “502(f)”. Sec. 445. (a) Section 502(a) of title 11 of the United States Code is amended by inserting “general” before “partner”. (b) Section 502(b) of title 11 of the United States Code is amended— (1) by inserting “(e)(2),” after “subsections”; (2) by inserting “in lawful currency of the United States” after “claim” the second place it appears; (3) in paragraph (1), by striking out “, and unenforceable against” and inserting in lieu thereof “and”; (4) by striking out paragraph (3) and redesignating paragraphs (4), (5), (6), (7), (8), and (9) as paragraphs (3), (4), (5), (6), (7), and (8), respectively; (5) in paragraph (3), as redesignated by paragraph (5), by inserting “the” after “exceeds”; (6) in paragraph (5), as redesignated by paragraph (5), by— (A) striking out “the claim” and inserting in lieu thereof “such claim”, and (B) striking out the comma after “petition”; and (7) in paragraph (7), as redesignated by paragraph (5), by— (A) inserting “the claim of an employee” before “for damages”; (B) striking out “and” in subparagraph (A)(i) and inserting in lieu thereof “or”; (C) striking out “the” the first place it appears in subparagraph (B) and inserting in lieu thereof “any”; and (D) inserting a comma after “such contract” in subparagraph (B). (c) Section 502(c) of title 11 of the United States Code is amended— (1) in paragraph (1) by— (A) inserting “the” before “fixing”; and (B) striking out “closing” and inserting in lieu thereof “administration”; and (2) in paragraph (2), by— (A) inserting “right to payment arising from a” after “any”; and (B) striking out “if such breach gives rise to a right to payment”. (d) Section 502(e)(1) of title 11, United States Code, is amended— (1) by striking out “and (b)” and inserting in lieu thereof “, (b), and (c)”; and (2) by striking out the commas before and after “or has secured”; (3) in subparagraph (B), by inserting “or disallowance” after “allowance”; and (4) in subparagraph (C), by— (A) striking out “requests subrogation” and inserting in lieu thereof “asserts a right of subrogation to the rights of such creditor”; and (B) striking out “to the rights of such creditor”. (e) Section 502(h) of title 11 of the United States Code is amended by striking out “522(i)” and inserting in lieu thereof “522”. (f) Section 502(j) of title 11 of the United States Code is amended to read as follows: “(j) A claim that has been allowed or disallowed may be reconsidered for cause. A reconsidered claim may be allowed or disallowed according to the equities of the case. Reconsideration of a claim under this subsection does not affect the validity of any payment or transfer from the estate made to a holder of an allowed claim on account of such allowed claim that is not reconsidered, but if a reconsidered claim is allowed and is of the same class as such holder’s claim, such holder may not receive any additional payment or transfer from the estate on account of such holder’s allowed claim until the holder of such reconsidered and allowed claim receives payment on account of such claim proportionate in value to that already received by such other holder. This subsection does not alter or modify the trustee’s right to recover from a creditor any excess payment or transfer made to such creditor.”. Sec. 446. Section 503(b) of title 11 of the United States Code is amended— (1) by striking out the comma after “be allowed”; (2) in paragraph (1)(C), by striking out the comma after “credit”; (3) in paragraph (2), by inserting “(a)” after “330”; (4) in paragraph (3), by inserting a comma after “paragraph (4) of this subsection”; (5) in paragraph (3)(C), by striking out the comma after “case”; (6) in paragraph (5), by striking out “and” after the semicolon; and (7) in paragraph (6), by striking out the period and inserting in lieu thereof “; and”. Sec. 447. Section 505(a) of title 11 of the United States Code is amended in paragraph (2)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 448. (a) Section 506(b) of title 11 of the United States Code is amended by inserting “for” after “provided”. (b) Paragraphs (1) and (2) of section 506(d) of title 11 of the United States Code are amended to read as follows: “(1) such claim was disallowed only under section 502(b)(5) or 502(e) of this title; or “(2) such claim is not an allowed secured claim due only to the failure of any entity to file a proof of such claim under section 501 of this title.”. Sec. 449. (a) Section 507(a) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting a comma after “severance”: (2) in paragraph (4), by striking out “employee benefit plans” and inserting in lieu thereof “an employee benefit plan”; (3) in paragraph (4)(B)(i), by inserting “each” after “covered by”; and (4) in paragraph (7) as redesignated by section 350 by inserting “only” after “units,”. (b) Section 507(c) of title 11 of the United States Code is amended by striking out “shall be treated the same” and inserting in lieu thereof “has the same priority”. Sec. 450. (a) Section 509(a) of title 11 of the United States Code is amended by— (1) striking out “subsections (b) and” and inserting in lieu thereof “subsection (b) or”; and (2) inserting “against the debtor” after “a creditor”. (b) Section 509(b)(1) of title 11 of the United States Code is amended by striking out “of a” and inserting in lieu thereof “of such”. (c) Section 509(c) of title 11 of the United States Code is amended by striking out “section 509 of this title” and inserting in lieu thereof “this section”. Sec. 451. Section 510(b) of title 11 of the United States Code is Claims. amended to read as follows: “(b) For the purpose of distribution under this title, a claim arising from rescission of a purchase or sale of a security of the debtor or of an affiliate of the debtor, for damages arising from the purchase or sale of such a security, or for reimbursement or contribution allowed under section 502 on account of such a claim, shall be subordinated to all claims or interests that are senior to or equal the claim or interest represented by such security, except that if such security is common stock, such claim has the same priority as common stock.”. Sec. 452. Section 521(3) of title 11 of the United States Code, as redesignated in section 305, is amended by inserting “, whether or Ante, p. 352. not immunity is granted under section 344 of this title” after “estate” the second place it appears. Sec. 453. (a) Section 522(a)(2) of title 11 of the United States Code is amended by inserting “or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate” after “petition”. (b) Section 522(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the case is dismissed, property exempted under this section is not liable during or after the case for any debt of the debtor that arose, or that is determined under section 502 of this title as if such debt had arisen, before the commencement of the case, except— “(1) a debt of a kind specified in section 523(a)(1) or 523(a)(5) of this title; or “(2) a debt secured by a lien that is— “(A) (i) not avoided under subsection (f) or (g) of this section or under section 544, 545, 547, 548, 549, or 724(a) of this title; and “(ii) not void under section 506(d) of this title; or Ante, p. 374. “(B) a tax lien, notice of which is properly filed.”. (c) Section 522(e) of title 11 of the United States Code is amended by striking out “exemptions” and inserting in lieu thereof “an exemption”. Sec. 454. (a) Section 523(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by— (A) striking out “obtaining” each place it appears; and (B) striking out “refinance of credit,” and inserting in lieu thereof “refinancing of credit, to the extent obtained”; and (2) by striking out “of higher education” in paragraph (8). (b) Section 523(a)(5) of title 11, United States Code, is amended by— (1) amending the first paragraph thereof by inserting the words “or other order of a court of record” after the words “divorce decree,”; and (2) inserting “, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State” after “Social Security Act”. (c) Section 523(c) of title 11 of the United States Code is amended by inserting “of a kind” after “debt” the first time it appears. Sec. 455. Section 524(a) of title 11 of the United States Code is amended by striking out “any act” each place it appears and inserting in lieu thereof “an act”. Sec. 456. (a) Section 541(a) of title 11 of the United States Code is amended— (1) by striking out “under” the second time it appears; (2) by inserting “and by whomever held” after “located”; (3) in paragraph (3), by inserting “329(b), 363(n),” after “section”; (4) in paragraph (5), by striking out “An” and inserting in lieu thereof “Any”; and (5) in paragraph (6), by striking out “and” and inserting in lieu thereof “or”. (b) Section 541(c) of title 11 of the United States Code is amended— (1) by inserting “in an agreement, transfer instrument, or applicable nonbankruptcy law” after “provision”; and (2) in paragraph (1)(B), by— (A) striking out “the taking” and inserting in lieu thereof “taking”; and (B) inserting “before such commencement” after “custodian”. (c) Section 541(d) of title 11 of the United States Code is amended by inserting “(1) or (2)” after “(a)”. (d) Section 541(e) of title 11 of the United States Code is repealed. Sec. 457. Section 542(e) of title 11 of the United States Code is amended by inserting “to turn over or” before “disclose”. Sec. 458. (a) Section 543(a) of title 11 of the United States Code is amended by inserting “, product, offspring, rents, or profits” after “proceeds”. (b) Section 543(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by— (A) inserting “held by or” after “debtor”; and (B) inserting “, product, offspring, rents, or profits” after “proceeds”; and (2) in paragraph (2), by inserting “, product, offspring, rents, or profits” after “proceeds”. (c) Section 543(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “or proceeds, product, off-spring, rents, or profits of such property” after “property”; and (2) in paragraph (3), by inserting “that has been” before “approved”. (d) Section 543(d) of title 11 of the United States Code is amended to read as follows: “(d) After notice and hearing, the bankruptcy court— “(1) may excuse compliance with subsection (a), (b), or (c) of this section, if the interests of creditors and, if the debtor is not insolvent, of equity security holders would be better served by permitting a custodian to continue in possession, custody, or control of such property, and “(2) shall excuse compliance with subsections (a) and (b)(1) of this section if the custodian is an assignee for the benefit of the debtor’s creditors that was appointed or took possession more than 120 days before the date of the filing of the petition, unless compliance with such subsections is necessary to prevent fraud or injustice.”. Sec. 459. Section 544(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “such” after “obtained”; (2) in paragraph (2), by striking out “; and” and inserting in lieu thereof “, or”; and (3) in paragraph (3), by— (A) inserting “, other than fixtures,” after “property”; and (B) inserting “and has perfected such transfer” after “purchaser” the second place it appears. Sec. 460. Section 545 of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by striking out “is” the first time it appears; (2) in paragraph (1)(C), by striking out “apponted” and inserting in lieu thereof appointed or authorized to take”; and (3) in paragraph (2), by striking out “on the date of of the filing the petition” each place it appears and inserting in lieu thereof “at the time of the commencement of the case”. Sec. 461. (a) Section 546(a) of title 11 of the United States Code is amended in paragraph (1) by striking out “and” and inserting in lieu thereof “or”. (b) Section 546(b) of title 11 of the United States Code is amended by striking out “the trustee under section 544, 545, or” and inserting in lieu thereof “a trustee under sections 544, 545, and”. (c) Section 546(c) of title 11 of the United States Code is amended— (1) by striking out “the trustee” and inserting in lieu thereof “a trustee”; (2) by striking out “right” the first place it appears; (3) by inserting “of goods that has sold goods to the debtor” after “seller” the first place it appears; (4) by striking out “of goods to the debtor” after “business,”; and (5) in paragraph (2), by— (A) inserting “the” after “if’; and (B) striking out “an administrative expense” and inserting in lieu thereof “a claim of a kind specified in section 503(b) of this title” (d) Section 546(e) of title 11 of the United States Code, as redesignated by section 351, is amended by inserting “financial institution” after “stockbroker”. Sec. 462. (a) Section 547(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “including proceeds of such property,” after “law,”; and (2) in paragraph (4), by— (A) striking out “, without penalty”; and (B) inserting “without penalty” after “payable”. (b) Section 547(b) of title 11 of the United States Code is amended— (1) by striking out “of property of the debtor” and inserting in lieu thereof “of an interest of the debtor in property”; and (2) in paragraph (4) by amending subparagraph (B) to read as follows: “(B) between ninety days and one year before the date of the Tiling of the petition, if such creditor at the time of such transfer was an insider;”. (c) Section 547 of title 11 of the United States Code is amended in subsection (c)(2) thereof by striking out subparagraph (B) of such subsection, and by redesignating subparagraphs (C) and (D) thereof as subparagraphs (B) and (C), respectively. (d) Section 547(c) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by inserting “by the debtor” after “incurred”; (2) in paragraph (3), by striking out “of” the first place it appears and inserting in lieu thereof “that creates”; (3) in paragraph (3)(B), by— (A) inserting “on or after “perfected”; and (B) striking out “such security interest attaches” and inserting in lieu thereof “the debtor receives possession of such property”; (4) in paragraph (5), by— (A) striking out “of” the first place it appears and inserting in lieu thereof “that creates”; and (B) striking out “all security interest” and inserting in lieu thereof “all security interests”; and (5) in paragraph (5)(A)(ii), by striking out “and” and inserting in lieu thereof “or”. (e) Section 547(d) of title 11 of the United States Code is amended by— (1) striking out “A” and inserting in lieu thereof “The”; (2) inserting “an interest in” after “transfer of’: (3) inserting “to or for the benefit of a surety” after “transferred”; and (4) inserting “such” after “reimbursement of’. (f) Section 547(e) of title 11 of the United States Code is amended in paragraph (2)(C)(i), by striking out “and” and inserting in lieu thereof “or”. (g) Section 547 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(g) For the purposes of this section, the trustee has the burden of proving the avoidability of a transfer under subsection (b) of this section, and the creditor or party in interest against whom recovery or avoidance is sought has the burden of proving the nonavoidability of a transfer under subsection (c) of this section.”. Sec. 463. (a) Section 548(a) of title 11 of the United States Code is amended— (1) by striking out “if the debtor” and inserting in lieu thereof “if the debtor voluntarily or involuntarily”; (2) in paragraph (1), by striking out “occurred” and inserting in lieu thereof “was made”; and (3) in paragraph (2)(B)(ii), by inserting “or a transaction” after “engaged in business”. (b) Section 548(c) of title 11 of the United States Code is amended by— (1) inserting “or may retain” after “lien on”; and (2) striking out “, may retain any lien transferred,”. (c) (1) Section 548(d)(1) of title 11 of the United States Code is amended by— (A) striking out “becomes so far” and inserting in lieu thereof “is so”; (B) striking out “such transfer could have been” and inserting in lieu thereof “applicable law permits such transfer to be”; and (C) striking out “occurs” and inserting in lieu thereof “is made”. (2) Section 548(d)(2)(B) of title 11 is amended by inserting “financial institution,” after “stockbroker”. Sec. 464. (a) Section 549(a) of title 11 of the United States Code is amended— (1) by striking out “(b) and (c)” and inserting in lieu thereof “(b) or (c)”; and (2) in paragraph (2)(A), by inserting “only” after “authorized”. (3) striking out “that occurs” and inserting in lieu thereof “made”; (4) striking out “is valid against the trustee to the extent of’ and inserting in lieu thereof “to the extent”; and (5) inserting “is” before “given”. (c) Section 549(c) of title 11 of the United States Code is amended Real property. to read as follows: “(c) The trustee may not avoid under subsection (a) of this section a transfer of real property to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value unless a copy or notice of the petition was filed, where a transfer of such real property may be recorded to perfect such transfer, before such transfer is so perfected that a bona fide purchaser of such property, against whom applicable law permits such transfer to be perfected, could not acquire an interest that is superior to the interest of such good faith purchaser. A good faith purchaser without knowledge of the commencement of the case and for less than present fair equivalent value has a lien on the property transferred to the extent of any present value given, unless a copy or notice of the petition was so filed before such transfer was so perfected”. (d) Section 549(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 465. (a) Section 550(a) of title 11 of the United States Code is amended by striking out “549, or 724(a) of this title” and inserting in lieu thereof “549, 553(b), or 724(a) of this title”. (b) Section 550(d) of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by inserting “or accruing to” after “by”; (2) in paragraph (1)(B), by striking out “value” and inserting in lieu thereof “the value of such property”; (3) in paragraph (2), by striking out subparagraphs (D) and (E) and inserting in lieu thereof the following: “(D) payment of any debt secured by a lien on such property that is superior or equal to the rights of the trustee; and”, and (4) in paragraph (2), by redesignating subparagraph (F) as subparagraph (E). (c) Section 550(e)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 466. Section 552(b) of title 11 of the United States Code is amended by— (1) inserting “522,” after “506(c),”; (2) striking out “a secured party enter” and inserting in lieu thereof “an entity entered”; and (3) striking out “except to the extent” and inserting in lieu thereof “except to any extent”. Sec. 467. Section 553(b)(1) of title 11 of the United States Code is amended by striking out “or 365(h)(1)” and inserting in lieu thereof “, 365(h)(2), or 365(i)(2)”. Sec. 468. (a) Subsections (a) and (b) of section 554 of title 11 of the United States Code are each amended by inserting “and benefit” after “value”. (b) Section 554(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the court orders otherwise, any property scheduled under section 521(a)(1) of this title not otherwise administered at the time of the closing of a case is abandoned to the debtor and administered for purposes of section 350 of this title.”. (c) Section 554(d) of title 11 of the United States Code is amended by striking out “section (a) or (b) of”. Sec. 469. Section 555 of title 11 of the United States Code is amended by inserting “, financial institution,” after “stockbroker”. Sec. 470. (a) Chapter 5 of title 11 of the United States Code as amended by section 352 is amended by adding at the end thereof the following new section: “§ 558. Defenses of the estate “The estate shall have the benefit of any defense available to the debtor as against any entity other than the estate, including statutes of limitation, statutes of frauds, usury, and other personal defenses. A waiver of any such defense by the debtor after the commencement of the case does not bind the estate.”. (b) The table of sections for chapter 5 of title 11 of the United States Code is amended by adding at the end thereof the following new item: “558. Defenses of the estate.”. Sec. 471. The table of sections for chapter 7 of title 11 of the United States Code is amended by striking out “Succesor” in the item relating to section 703 and inserting in lieu thereof “Succcssor” Sec. 472. (a) Section 702(b) of title 11 of the United States Code is amended by inserting “held” after “meeting of creditors”. (b) Section 702(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “of a kind” after “claims”; and (2) in paragraph (2), by inserting “a” after “for”. (c) Section 702(d) of title 11 of the United States Code is amended by striking out “subsection (c) of”. Sec. 473. Section 703(b) of title 11 of the United States Code is amended by striking out “specified in section 701(a) of this title. Sections 701(b) and 701(c) of this title apply to such interim trustee” and inserting in lieu thereof “and subject to the provisions of section 701 of this title”. Sec. 474. Section 704 of title 11 of the United States Code as amended by section 311 is amended in paragraph (1), by striking out Ante, p. 355. “up”. Sec. 475. Paragraphs (1) and (2) of section 707 of title 11 of the United States Code are each amended by striking out “and” and inserting in lieu thereof “or”. Sec. 476. (a) Section 723(a) of title 11 of the United States Code is amended by striking out all after “claims” and inserting in lie thereof “which are allowed in a case under this chapter concerning a partnership and with respect to which a general partner of the partnership is personally liable, the trustee shall have a claim against such general partner for the full amount of the deficiency”. (b) Section 723(c) of title 11 of the United States Code is amended by— (1) striking out “such case” each place it appears and inserting in lieu thereof “such partner’s case”; (2) striking out “be property” and inserting in lieu thereof “by property”; and (3) striking out “the kind” and inserting in lieu thereof “a kind”. Sec. 477. (a) Section 724(b) of title 11 of the United States Code is amended— (1) by striking out “taxes” and inserting in lieu thereof “a tax”; (2) in paragraph (2), by— (A) striking out “claims” and inserting in lieu thereof “any holder of a claim of a kind”; (B) striking out “sections” and inserting in lieu thereof “section”; and (C) striking out “and” and inserting in lieu thereof “or”; and (3) in paragraph (3), by inserting “tax” after “allowed”. (b) Section 724(c) of title 11 of the United States Code is amended by— (1) striking out “creditor” and inserting in lieu thereof “holder of a claim”; and (2) striking out “creditors” each place it appears and inserting in lieu thereof “holders”. (c) Section 724(d) of title 11 of the United States Code is amended by— (1) striking out “whose priority” and inserting in lieu thereof “the priority of which”; and (2) inserting ‘ if such lien were” after “the same as”. Sec. 478. Section 725 of title 11 of the United States Cede is amended by inserting “of property of the estate” after “distribution”. Sec. 479. (a) Section 726(b) of title 11 of the United States Code is amended by— (1) striking out “a particular paragraph” and inserting in lieu thereof “each such particular paragraph”; and (2) striking out “administrative expenses” each place it appears and inserting in lieu thereof “a claim allowed under section 503(b) of this title”; and (3) striking out “have” and inserting in lieu thereof “has”. (b) Section 726(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “Administrative expenses” and inserting in lieu thereof “Claims allowed under section 503 of this title”; and (2) in paragraph (2), by striking out “Claims other than for administrative expenses” and inserting in lieu thereof “Allowed claims, other than claims allowed under section 503 of this title,”. Sec. 480. (a) Section 727(a) of title 11 of the United States Code is amended— (1) in paragraph (6)(C), by striking out “property” and inserting in lieu thereof “properly”; (2) in paragraph (7), by inserting “, under this title or under the Bankruptcy Act,” after “another case”; and (3) in paragraph (8), by inserting a comma after “371”. (b) Section 727(c)(1) of title 11 of the United States Code is amended by inserting “the granting of a” after “to”. (c) Section 727(e)(2)(A) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 481. (a) Section 728(c) of title 11 of the United States Code is amended by striking out the comma after “taxable income”. (b) Section 728(d)(2) of title 11 of the United States Code is amended by inserting “otherwise” after “is”, and by striking out “otherwise” after “partner”. Sec. 482. Section 741 of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by— (A) striking out “the debtor” the first time it appears and inserting in lieu thereof “a person”; (B) striking out “holds” and inserting in lieu thereof “has”; (C) striking out “the debtor” the second and third time it appears and inserting in lieu thereof “such person”; and (D) striking out “business as a stockbroker” and inserting in lieu thereof “such person”s business as a stockbroker,”, (2) in paragraph (2)(B), by— (A) striking out “holds” and inserting in lieu thereof “has”; (B) striking out “the debtor” the first place it appears and inserting in lieu thereof “a person”; and (C) by striking out “the debtor” and inserting in lieu thereof “such person” in clause (ii); (3) in paragraph (4)(A)(i), by striking out “and that is” and inserting in lieu thereof “from and that is the lawful”; (4) in paragraph (6)(A)(i), by— (A) inserting a comma after “petition”; and (B) inserting “any” after “except”; and (5) in paragraph (7), by amending such paragraph to read as follows: “(7) ‘securities contract’ means contract for the purchase, sale, or loan of a security, including an option for the purchase or sale of a security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any option entered into on a national securities exchange relating to foreign currencies, or the guarantee of any settlement of cash or securities by or to a securities clearing agency;”; and (6) in paragraph (8) by inserting “a final settlement payment,” after “settlement payment on account,”. Sec. 483. Section 745(a) of title 11 of the United States Code is amended by inserting “the debtor for” after “by”. Sec. 484. (a) Section 752(a) of title 11 of the United States Code is amended by— (1) striking out “customers allowed” and in lieu thereof “customers’ allowed”; (2) inserting “of the kind” after “except claims”; and (3) inserting “such” before “customer property”. (b) Section 752(b)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 485. Section 761 of title 11 of the United States Code is amended in paragraph (10), by striking out “and that is” in subparagraph (A)(viii) and inserting in lieu thereof “from and that is the lawful”. Sec. 486. Section 763(a) of title 11 of the United States Code is amended by— (1) inserting “the debtor for” after “by”; and (2) striking out “deemed to be” and inserting in lieu thereof “treated as”. Sec. 487. Section 764(a) of title 11 of the United States Code is amended by inserting “by the debtor” after “any transfer”. Sec. 488. Section 765(a) of title 11 of the United States Code is amended by striking out “notice under”, and inserting in lieu thereof “notice required by”. Sec. 489. Section 766(j)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 490. Section 901(a) of title 11 of the United States Code is amended by inserting a comma after “1111(b)”. Sec. 491. Section 902(2) of title 11 of the United States Code is amended by striking out “title, legal or equitable, to real property against which has been levied a special assessment or special tax” and by inserting in lieu thereof “legal or equitable title to real property against which a special assessment or special tax has been levied”. Sec. 492. Section 903(2) of title 11 of the United States Code is amended by striking out “to” the first place it appears. Sec. 493. Chapter 9 of title 11 of the United States Code is 11 USC prec 921.. amended by striking out “SUBCHAPER II” and inserting in lieu thereof “SUBCHAPTER II”. Sec. 494. (a) Section 921(c) of title 11 of the United States Code is amended by— (1) striking out “an” and inserting in lieu thereof “any”; and (2) striking out the comma after “petition” the second place it appears, and after “faith”. (b) Section 921 of title 11 of the United States Code is amended by redesignating subsections (e) and (f) as subsections (d) and (e), respectively. (c) Section 921(a) is amended by striking out “109(c)” and inserting in lieu thereof “109(d)”. (d) Section 921(d) of title 11 of the United States Code, as so redesignated, is amended by striking out “subsection (d)” and inserting in lieu thereof “subsection (c)”. Sec. 495. Section 922(a)(1) of title 11 of the United States Code is amended by— (1) inserting “a” before “judicial”; and (2) inserting “action or” before “proceeding”. Sec. 496. Section 927(b) of title 11 of the United States Code is amended by inserting “of a plan under this chapter” after “confirmation”. Sec. 497. Section 943(b) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “to be taken”; and (2) by amending paragraph (5) to read as follows: “(5) except to the extent that the holder of a particular claim has agreed to a different treatment of such claim, the plan provides that on the effective date of the plan each holder of a claim of a kind specified in section 507(a)(1) of this title will receive on account of such claim cash equal to the allowed amount of such claim; and”. Sec. 498. Section 945(a) of title 11 of the United States Code is amended by striking out “execution” and inserting in lieu thereof “implementation”. Sec. 499. Section 1102(b)(1) of title 11 of the United States Code is amended by striking out “order for relief’ and inserting in lieu thereof “commencement of the case”. Sec. 500. (a) Section 1103(b) is amended by— (1) inserting “having an adverse interest” after “entity”; and (2) adding at the end thereof the following: “Representation of one or more creditors of the same class as represented by the committee shall not per se constitute the representation of an adverse interest/’. (b) Section 1103(c) of title 11 of the United States Code is amended— (1) in paragraph (3), by— (A) striking out “recommendations” and inserting in lieu thereof “determinations”; and (B) inserting “or rejections” after “acceptances”; and (2) in paragraph (4), by striking out “, if a trustee or examiner, as the case may be, has not previously been appointed under this chapter in the case”. Sec. 501. Section 1105 of title 11 of the United States Code is amended by striking out “estate, and” and inserting in lieu thereof “estate and of the”. Sec. 502. Section 1106(b) of title 11 of the United States Code is amended by inserting “, except to the extent that the court orders otherwise, before “any other”. Sec. 503. Section 1107(a) of title 11 of the United States Code is amended by inserting “serving in a case” after “on a trustee”. Sec. 504. Section 1108 of title 11 of the United States Code is amended by inserting “, on request of a party in interest and after notice and a hearing, after “court”. Sec. 505. (a) Section 1112(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by striking out “is an involuntary case originally commenced under this chapter” and inserting in lieu thereof “originally was commenced as an involuntary case under this chapter”; and (2) in paragraph (3), by striking but “on other than” and inserting in lieu thereof “other than on”. (b) Section 1112(b) of title 11 of the United States Code is amended— (1) in paragraph (5), by inserting “a request made for” before “additional”; and (2) in paragraph (8), by striking out “and” and inserting in lieu thereof “or”. Sec. 506. (a) Section 1121(c)(3) of title 11 of the United States Code is amended by striking out “the claims or interests of which are” and inserting in lieu thereof “of claims or interests that is”. (b) Section 1121(d) of title 11 of the United States Code is amended by inserting “made within the respective periods specified in subsection (c) of this section” after “interest”. Sec. 507. (a) Section 1123(a) of title 11 of the United States Code is amended— (1) by striking out “A” and inserting in lieu thereof “Notwithstanding any otherwise applicable nonbankruptcy law, a”; (2) in paragraph (1), by— (A) inserting a comma after “classes of claims”; and (B) by striking out “507(a)(6) of this title” and inserting in lieu thereof “507(a)(7) of this title,”; (3) in paragraph (3), by striking out “shall”; (4) in paragraph (5), by striking out “execution” and inserting in lieu thereof “implementation”, and (5) in paragraph (5)(G), by inserting “of’ after “waiving”. (b) Section 1123(b)(2) of title 11 of the United States Code is amended by— (1) striking out “or rejection” and inserting in lieu thereof “, rejection, or assignment”; and (2) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”. Sec. 508. Section 1124 of title 11 of the United States Code is amended— (1) by amending paragraph ()(A) to read as follows: “(A) cures any such default that occurred before or after the commencement of the case under this title, other than a default of a kind specified in section 365(b)(2) of this title;”; Ante, p. 361. and (2) in paragraph (3)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 509. (a) Section 1125(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “, but adequate information need not include such information about any other possible or proposed plan” after “plan”; (2) in paragraph (2)(B), by inserting “the” after “with”; and (3) in paragraph (2)(C), by inserting “or’ after “holders”. (b) Section 1125(d) of title 11 of the United States Code is amended by— (1) inserting “required under subsection (b) of this section” after “statement” the first place it appears; and (2) inserting or otherwise seek review of,” after “appeal from”. (c) Section 1125(e) of title 11 of the United States Code is amended by— (1) inserting “acceptance or rejection of a plan” after “solicits”; and (2) inserting “solicitation of acceptance or rejection of a plan or” after “governing”. Sec. 510. (a) Section 1126(b)(2) of title 11 of the United States Code is amended by striking out “1125(a)(1)” and inserting in lieu thereof “1125(a)”. (b) Section 1126(d) of title 11 of the United States Code is amended by inserting a comma after “such interests” the first place it appears. (c) Section 1126(f) of title 11 of the United States Code is amended by— (1) striking out “is deemed” and inserting in lieu thereof “, and each holder of a claim or interest of such class, are conclusively presumed”; (2) striking out “solicititation” and inserting in lieu thereof “solicitation”; and (3) striking out “interest” and inserting in lieu thereof “interests” (d) Section 1126(g) of title 11 of the United States Code is amended by striking out “any payment or compensation” and inserting in lieu thereof “receive or retain any property”. Sec. 511. (a) Section 1127(a) of title 11 of the United States Code is amended by— (1) inserting “of a plan” after “After the proponent”; and (2) inserting “of such plan” after “modification”. (b) Section 1127(b) of title 11 of the United States Code is amended by striking out “the court, after notice and a hearing, confirms such plan, as modified, under section 1129 of this title, and circumstances warrant such modification” and inserting in lieu thereof “circumstances warrant such modification and the court, after notice and a hearing, confirms such plan as modified, under section 1129 of this title”. Sec. 512. (a) Section 1129(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “chapter.” and inserting in lieu thereof “title.”; (2) in paragraph (2), by striking out “chapter.” and inserting in lieu thereof “title.”; (3) by amending paragraph (4) to read as follows: “(4) Any payment made or to be made by the proponent, by the debtor, or by a person issuing securities or acquiring property under the plan, for services or for costs and expenses in or in connection with the case, or in connection with the plan and incident to the case, has been approved by, or is subject to the approval of, the court as reasonable;”; (4) in paragraph (5)(A)(ii), by striking out the period and inserting in lieu thereof “; and”; (5) in paragraph (5)(B), by striking out “The” and inserting in lieu thereof “the”; (6) in paragraph (6), by inserting “governmental” after “Any”; (7) in paragraph (7), by— (A) inserting “of each impaired class of claims or interests” in lieu of “each class”; and (B) striking out “creditor’s” in subparagraph (B) and inserting in lieu thereof “holder’s”; (8) in paragraph (8), by inserting “of claims or interests” after “each class”; and (9) by amending paragraph (10) to read as follows: “(10) If a class of claims is impaired under the plan, at least one class of claims that is impaired under the plan has accepted the plan, determined without including any acceptance of the plan by any insider.”. (b) Section 1129(b) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by striking out “lien” each place it appears and inserting in lieu thereof “liens”; (2) in paragraph (2)(B)(ii), by inserting “under the plan” after “retain”, and (3) in paragraph (2)(C)(i), by— (A) striking out “claim” and inserting in lieu thereof “interest”; and (B) striking out “and the value” and inserting in lieu thereof “or the value”. (c) Section 1129(d) of title 11 of the United States Code is amended by— (1) inserting “the application of” after “avoidance of” the second place it appears; and (2) adding at the end thereof the following new sentence: “In any hearing under this subsection, the governmental unit has the burden of proof on the issue of avoidance.”. Sec. 513. (a) Section 1141(a) of title 11 of the United States Code is amended by striking out “any creditor or equity security holder of, or general partner in,” and inserting in lieu thereof “any creditor, equity security holder, or general partner in”. (b) Section 1141(c) of title 11 of the United States Code is amended to read as follows: “(c) Except as provided in subsections (d)(2) and (d)(3) of this section and except as otherwise provided in the plan or in the order confirming the plan, after confirmation of a plan, the property dealt with by the plan is free and clear of all claims and interests of creditors, equity security holders, and of general partners in the debtor.”. Sec. 514. (a) The heading for section 1142 of title 11 of the United States Code is amended to read as follows: “§ 1142. Implementation of plan”. (b) The item relating to section 1142 in the table of sections for chapter 11 of title 11 of the United States Code is amended by striking out “Execution” and inserting in lieu thereof “Implementation”. (c) Section 1142(a) of title 11 of the United States Code is amended by striking out the comma after “plan” the second place it appears. (d) Section 1142(b) of title 11 of the United States Code is amended by inserting “a” after “by”. Sec. 515. Section 1144 of title 11 of the United States Code is amended by inserting “if and only” after “revoke such order”. Sec. 516. (a) Section 1145(a) of title 11 of the United States Code is amended— (1) in paragraph (3)(B)(i), by inserting “or 15(d)” after “13” and by inserting “or 78o(d)” after “78m”; (2) by amending paragraph (3)(B)(ii) to read as follows: “(ii) in compliance with the disclosure and reporting provision of such applicable section; and”; and (3) in paragraph (4), by striking out “stockholder” each place it appears and inserting in lieu thereof “stockbroker”. (b) Section 1145(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “and except with respect to ordinary trading transactions of an entity that is not an issuer” after “subsection”; (2) in paragraph (1)(C), by striking out “for” and inserting in lieu thereof “from”; (3) in paragraph (2)(a)(1), by striking out “combination” and inserting in lieu thereof “or combining”; and (4) in paragraph (2)(A)(ii), by striking out “among” and inserting in lieu thereof “from or to”. (c) Section 1145(d) of title 11 of the United States Code is amended by striking out “commercial”. Sec. 517. (a) Section 1146(c) of title 11 of the United States Code is amended by striking out “State or local”. (b) Section 1146(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 518. Section 1166 of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 519. Section 1168(b) of title 11 of the United States Code is amended by inserting a comma after “approval”. Sec. 520. Section 1169(c) of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 521. (a) Section 1170(a) of title 11 of the United States Code is amended by inserting “of all or a portion” after “the abandonment”. (b) Section 1170(c) of title 11 of the United States Code is amended by inserting a comma after “abandonment”. (c) Section U70(d)(2) of title 11 of the United States Code is amended by— (1) striking out “the abandonment of a railroad line” and inserting in lieu thereof “such abandonment”; and (2) striking out “termination” each place it appears and inserting in lieu thereof “suspension”. Sec. 522. Section 1171(b) of title 11 of the United States Code is amended by striking out “such” and inserting in lieu thereof “the same”. Sec. 523. Section 1173(a)(4) of title 11 of the United States Code is amended by striking out “compatible” and inserting in lieu thereof “consistent”. Sec. 524. Section 1301(c)(3) of title 11 of the United States Code is amended by inserting “continuation of’ after “by”. Sec. 525. (a) Section 1302(b) of title 11 of the United States Code as Ante, p. 356. amended by section 314 is amended by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively and by inserting after paragraph (2) the following new paragraph: “(3) dispose of, under regulations issued by the Director of the Administrative Office of the United States Courts, moneys received or to be received in a case under chapter XIII of the Bankruptcy Act; and”. (b) Section 1302(e) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “fix” and inserting in lieu thereof “set for such individual”; (2) in paragraph (1)(A), by striking out “for such individual”; and (3) in paragraph (2)(A), by— (A) striking out “of” and inserting in lieu thereof “received by”; and (B) striking out “upon all payments” and inserting in lieu thereof “of all such payments made”. Sec. 526. Section 1304(b) of title 11 of the United States Code is amended by striking out the comma after “of the debtor”. Sec. 527. (a) Section 1307(b) of title 11 of the United States Code is amended by inserting a comma after “time”. (b) Section 1307(c) of title 11 of the United States Code as amended by section 315 is amended— Ante, p. 356. (1) in paragraph (5), as redesignated by inserting “a request made for” before “additional”; (2) in paragraph (7), as redesignated by striking out “and” after the semicolon and inserting in lieu thereof “or”; and (3) in paragraph (8), as redesignated by inserting “other than completion of payments under the plan” after ‘In the plan”. Sec. 528. (a) Section 1322(a)(2) of title 11 of the United States Code is amended by inserting a comma after “payments”. (b) Section 1322(b) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “, or leave unaffected the rights of holders of any class of claims” before the semicolon; (2) in paragraph (4), by inserting “other” after “claim or any”; (3) in paragraph (7), by— (A) inserting “subject to section 365 of this title,” before “provide”; (B) striking out “or rejection” and inserting in lieu thereof rejection, or assignment”; and (C) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”; and (4) in paragraph (8), by striking out “any”. Sec. 529. Section 1324 of title 11 of the United States Code is amended by striking out “the” the second place it appears. Sec. 530. Section 1325(a)(1) of title 11 of the United States Code is amended by inserting “the” before “other”. Sec. 531. Section 1326(b)(2) of title 11 of the United States Code as amended by section 318 is amended by inserting “of this title” after Ante, p. 357. “1302(d)”. Sec. 532. Section 1328(e) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “by the debtor” after “obtained”; and (2) in paragraph (2), by striking out “knowledge of such fraud came to the requesting party” and inserting in lieu thereof “the requesting party did not know of such fraud until”. Sec. 533. Section 1329(a) of title 11 of the United States Code is amended— (1) by inserting “of the plan” after “confirmation”; (2) by striking out “a plan” and inserting in lieu thereof “such plan”; and (3) in paragraph (3), by striking out the comma. Sec. 534. Section 151302(a) of title 11 of the United States Code is amended by inserting “, or shall appoint a disinterested person to serve,” after “The United States trustee shall serve”. Subtitle J— Collective Bargaining Agreements Sec. 541. (a) Title 11 of the United States Code is amended by adding after section 1112 the following new section: “§ 1113. Rejection of collective bargaining agreements “(a) The debtor in possession, or the trustee if one has been appointed under the provisions of this chapter, other than a trustee 11 USC 1161. 45 USC 151. in a case covered by subchapter IV of this chapter and by title I of the Railway Labor Act, may assume or reject a collective bargaining agreement only in accordance with the provisions of this section. “(b) (1) Subsequent to filing a petition and prior to filing an application seeking rejection of a collective bargaining agreement, the debtor in possession or trustee (hereinafter in this section ‘trustee’ shall include a debtor in possession), shall— “(A) make a proposal to the authorized representative of the employees covered by such agreement, based on the most complete and reliable information available at the time of such proposal, which provides for those necessary modifications in the employees benefits and protections that are necessary to permit the reorganization of the debtor and assures that all creditors, the debtor and all of the affected parties are treated fairly and equitably; and “(B) provide, subject to subsection (d)(3), the representative of the employees with such relevant information as is necessary to evaluate the proposal. “(2) During the period beginning on the date of the making of a proposal provided for in paragraph (1) and ending on the date of the hearing provided for in subsection (d)(1), the trustee shall meet, at reasonable times, with the authorized representative to confer in good faith in attempting to reach mutually satisfactory modifications of such agreement. “(c) The court shall approve an application for rejection of a collective bargaining agreement only if the court finds that— “(1) the trustee has, prior to the hearing, made a proposal that fulfills the requirements of subsection (b)(1); “(2) the authorized representative of the employees has refused to accept such proposal without good cause; and “(3) the balance of the equities clearly favors rejection of such agreement. “(d) (1) Upon the filing of an application for rejection the court shall schedule a hearing to be held not later than fourteen days after the date of the filing of such application. All interested parties may appear and be heard at such hearing. Adequate notice shall be provided to such parties at least ten days before the date of such nearing. The court may extend the time for the commencement of such hearing for a period not exceeding seven days where the circumstances of the case, and the interests of justice require such extension, or for additional periods of time to which the trustee and representative agree. “(2) The court shall rule on such application for rejection within thirty days after the date of the commencement of the hearing. In the interests of justice, the court may extend such time for ruling for such additional period as the trustee and the employees’ representative may agree to. If the court does not rule on such application within thirty days after the date of the commencement of the hearing, or within such additional time as the trustee and the employees’ representative may agree to, the trustee may terminate or alter any provisions of the collective bargaining agreement pending the ruling of the court on such application. “(3) The court may enter such protective orders, consistent with Confidentiality. the need of the authorized representative of the employee to evaluate the trustee’s proposal and the application for rejection, as may be necessary to prevent disclosure of information provided to such representative where such disclosure could compromise the position of the debtor with respect to its competitors in the industry in which it is engaged. “(e) If during a period when the collective bargaining agreement continues in effect, and if essential to the continuation of the debtor’s business, or in order to avoid irreparable damage to the estate, the court, after notice and a hearing, may authorize the trustee to implement interim changes in the terms, conditions, wages, benefits, or work rules provided by a collective bargaining agreement. Any hearing under this paragraph shall be scheduled in accordance with the needs of the trustee. The implementation of such interim changes shall not render the application for rejection moot. “(f) No provision of this title shall be construed to permit a trustee to unilaterally terminate or alter any provisions of a collective bargaining agreement prior to compliance with the provisions of this section.”. (b) The table of sections for chapter 11 of title 11, United States Code, is amended by inserting after the item relating to section 1112 the following new item: “1113. Rejection of collective bargaining agreements.”. (c) The amendments made by this section shall become effective Effective date. 11 USC 1113 note. upon the date of enactment of this Act; provided that this section shall not apply to cases filed under title 11 of the United States Code which were commenced prior to the date of enactment of this section. Subtitle K— Miscellaneous Sec. 551. If any provision of this title or any amendment made by Provisions held invalid. 11 USC 101 note. this title, or the application thereof to any person or circumstance is held invalid, the provisions of every other part, and their application shall not be affected thereby. Sec. 552. Notwithstanding the provisions of section 8331(22) of title 5, United States Code, or any other provision of law, for purposes of section 8339(n) of title 5, United States Code, any individual appointed under section 34 of the Bankruptcy Act who served as a United States bankruptcy judge for Ante, p. 343. the district of Oregon or for the Central district of California until March 31, 1984, shall receive an annuity computed with respect to his service as a referee in bankruptcy and as a bankruptcy judge, and his military service (not exceeding five years) creditable under section 8332 of title 5, United States Code, by multiplying 2¼ per centum of his average annual pay by the years of that service. Sec. 553. (a) Except as otherwise provided in this section the amendments made by this title shall become effective to cases filed 90 days after the date of enactment of this Act. (b) The amendments made by section 426(b) shall become effective upon the date of enactment of this Act. (c) The amendments made by subtitle J, shall become effective as provided in section 541(c).Pub. L. 98–353 title III · 98 Stat. 333
Redesignated · 11 U.S.C. § 101(48)
Pub. L. 98–353, §§ 391(1), 401(1), 421(i), (j)(1), redesignated successively former par. (41) as (43), again as (44), and again as (48)
Substituted · 11 U.S.C. § 101(48)
Pub. L. 98–353, §§ 391(1), 401(1), 421(i), (j)(1), substituted “and foreclosure of the debtor’s equity of redemption; and” for the period at the end
Source evidence
Code amendment note
Par. (48). Pub. L. 98–353, §§ 391(1), 401(1), 421(i), (j)(1), redesignated successively former par. (41) as (43), again as (44), and again as (48), and substituted “and foreclosure of the debtor’s equity of redemption; and” for the period at the end.Enacted provision · exact public law
TITLE III— AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE Subtitle A— Consumer Credit Amendments Sec. 301. Section 109 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Notwithstanding any other provision of this section, no individual may be a debtor under this title who has been a debtor in a case pending under this title at any time in the preceding 180 days if— “(1) the case was dismissed by the court for willful failure of the debtor to abide by orders of the court, or to appear before the court in proper prosecution of the case; or “(2) the debtor requested and obtained the voluntary dismissal of the case following the filing of a request for relief from the automatic stay provided by section 362 of this title.”. Sec. 302. Section 342 of title 11, United States Code, is amended— (1) by inserting “(a)” before “There shall be given”, and (2) by adding at the end thereof the following new subsection: “(b) Prior to the commencement of a case under this title by an individual whose debts are primarily consumer debts, the clerk shall give written notice to such individual that indicates each chapter of this title under which such individual may proceed.”. Sec. 303. Section 349(a) of title 11, United States Code, is amended by inserting before the period at the end thereof nor does the dismissal of a case under this title prejudice the debtor with regard to the filing of a subsequent petition under this title, except as Supra. provided in section 109(f) of this title”. Sec. 304. Section 362 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(h) An individual injured by any willful violation of a stay provided by this section shall recover actual damages, including costs and attorneys’ fees, and, in appropriate circumstances, may recover punitive damages.”. Sec. 305. Section 521 of title 11, United States Code, is amended— (1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, (2) in paragraph (1) by inserting “a schedule of current income and current expenditures,” after “liabilities,”, and (3) by inserting after paragraph (1) the following new paragraph: “(2) if an individual debtor’s schedule of assets and liabilities includes consumer debts which are secured by property of the estate— “(A) within thirty days after the date of the filing of a petition under chapter 7 of this title or on or before the date of the meeting of creditors, whichever is earlier, or within such additional time as the court, for cause, within such period fixes, the debtor shall file with the clerk a statement of his intention with respect to the retention or surrender of such property and, if applicable, specifying that such property is claimed as exempt, that the debtor intends to redeem such property, or that the debtor intends to reaffirm debts secured by such property; “(B) within forty-five days after the filing of a notice of intent under this section, or within such additional time as the court, for cause, within such forty-five day period fixes, the debtor shall perform his intention with respect to such property, as specified by subparagraph (A) of this paragraph; and “(C) nothing in subparagraphs (A) and (B) of this paragraph shall alter the debtor’s or the trustee’s rights with regard to such property under this title;”. Sec. 306. (a) Section 522(b) of title 11, United States Code, is amended by striking out “Notwithstanding” and all that follows through “either—” and inserting in lieu thereof the following: “Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (1) or, in the alternative, paragraph (2) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Bankruptcy Rules, one 11 USC app. debtor may not elect to exempt property listed in paragraph (1) and the other debtor elect to exempt property listed in paragraph (2) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (1), where such election is permitted under the law of the jurisdiction where the case is filed. Such property is—”. (b) Section 522(d)(3) of title 11, United States Code, is amended by inserting “or $4,000 in aggregate value” after “item”. (c) Section 522(d)(5) of title 11, United States Code, is amended to read as follows: “(5) The debtor’s aggregate interest in any property, not to exceed in value $400 plus up to $3,750 of any unused amount of the exemption provided under paragraph (1) of this subsection”. (d) Section 522(m) of title 11, United States Code, is amended to read as follows: “(m) Subject to the limitation in subsection (b), this section shall apply separately with respect to each debtor in a joint case.”. Sec. 307. (a) Section 523(a)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “or” at the end thereof, (2) in subparagraph (B) by inserting “or” at the end thereof, and (3) by adding at the end thereof the following new subparagraph: “(C) for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $500 for ‘luxury goods or services’ incurred by an individual debtor on or within forty days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within twenty days before the order for relief under this title, are presumed to be nondischargeable; ‘luxury goods or services’ do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.);”. (b) Section 523(d) of title 11, United States Code, is amended to read as follows: “(d) If a creditor requests a determination of dischargeability of a consumer debt under subsection (a)(2) of this section, and such debt is discharged, the court shall grant judgment in favor of the debtor for the costs of, and a reasonable attorney’s fee for, the proceeding if the court finds that the position of the creditor was not substantially justified, except that the court shall not award such costs and fees if special circumstances would make the award unjust.”. Sec. 308. (a) Section 524(a)(2) of title 11, United States Code, is amended by striking out “or from property of the debtor,”. (b) Section 524(c) of title 11, United States Code, is amended— (1) by striking out paragraph (2), (2) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively, and (3) by inserting after paragraph (1) the following new paragraphs: “(2) such agreement contains a clear and conspicuous statement which advises the debtor that the agreement may be rescinded at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of rescission to the holder of such claim; “(3) such agreement has been filed with the court and, if applicable, accompanied by a declaration or an affidavit of the attorney that represented the debtor during the course of negotiating an agreement under this subsection, which states that such agreement— “(A) represents a fully informed and voluntary agreement by the debtor; and “(B) does not impose an undue hardship on the debtor or a dependent of the debtor; “(4) the debtor has not rescinded such agreement at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of recission to the holder of such claim;” and (4) by amending paragraph (6), as so redesignated, to read as follows: “(6) (A) in a case concerning an individual who was not represented by an attorney during the course of negotiating an agreement under this subsection, the court approves such agreement as— “(i) not imposing an undue hardship on the debtor or a dependent of the debtor; and “(ii) in the best interest of the debtor. “(B) Subparagraph (A) shall not apply to the extent that such debt is a consumer debt secured by real property.”. (c) Section 524(d)(2) of title 11, United States Code, is amended by striking out “subsection (c)(4)” and inserting in lieu thereof “subsection (c)(6)”. (e) Section 524 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(f) Nothing contained in subsection (c) or (d) of this section prevents a debtor from voluntarily repaying any debt.”. Sec. 309. Section 525 of title 11, United States Code, is amended— (1) by inserting “(a)” before “Except”, (2) by inserting “the” before “Perishable”, and (3) by adding at the end thereof the following new subsection: Employment and unemployment. Discrimination, prohibition. 11 USC note prec. 101. “(b) No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt— “(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act; “(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or “(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.”. Sec. 310. Section 547(c) of title 11, United States Code, is amended— (1) in paragraph (5) by striking out “or” at the end thereof, (2) in paragraph (6) by striking out the period at the end thereof and inserting in lieu thereof “; or”, and (3) by adding at the end thereof the following new paragraph: “(7) if, in a case filed by an individual debtor whose debts are primarily consumer debts, the aggregate value of all property that constitutes or is affected by such transfer is less than $600.”. Sec. 311. (a) Section 704 of title 11, United States Code, is amended— (1) by redesignating paragraphs (3), (4), (5), (6), (7), and (8) as paragraphs (4), (5), (6), (7), (8), and (9), respectively, and (2) by inserting after paragraph (2) the following new paragraph: “(3) ensure that the debtor shall perform his intention as specified in section 521(2)(B) of this title;”. Ante, p. 352. (b) (1) Section 1106(a)(1) of title 11, United States Code, is amended by striking out “704(4), 704(6), 704(7), and 704(8)” and inserting in lieu thereof “704(5), 704(7), 704(8), and 704(9)”. (2) Section 1304(c) of title 11, United States Code, is amended by striking out “section 704(7)” and inserting in lieu thereof “section 704(8)”. (3) Section 15103(f) of title 11, United States Code, is amended by striking out “704(8),” and inserting in lieu thereof “704(9),”. (4) Section 151301(b)(1) of title 11, United States Code, is amended 11 USC 151302. by striking out “and 704(8)” and inserting in lieu thereof “, 704(7), and 704(9)”. Sec. 312. Section 707 of title 11, United States Code, is amended— (1) by inserting “(a)” before “The court may” and (2) by adding at the end thereof the following new subsection: “(b) After notice and a hearing, the court, on its own motion and not at the request or suggestion of any party in interest, may dismiss a case filed by an individual debtor under this chapter whose debts are primarily consumer debts if it finds that the granting of relief would be a substantial abuse of the provisions of this chapter. There shall be a presumption in favor of granting the relief requested by the debtor.”. Sec. 313. Section 1301 of title 11, United States Code, is amended by adding at the end thereof the following new subsection: “(d) Twenty days after the filing of a request under subsection (c)(2) of this section for relief from the stay provided by subsection (a) of this section, such stay is terminated with respect to the party in interest making such request, unless the debtor or any individual that is liable on such debt with the debtor files and serves upon such party in interest a written objection to the taking of the proposed action.”. Sec. 314. Section 1302(b) of title 11, United States Code, is amended— (1) by amending paragraph (1) to read as follows: “(1) perform the duties specified in sections 704(2), 704(3), 704(4), 704(5), 704(6), 704(7), and 704(9) of this title;”; (2) in paragraph (2) by striking out “and” at the end thereof, (3) in paragraph (3) by striking out the period and inserting in lieu thereof “; and”, and (4) by adding at the end thereof the following new paragraph: “(4) ensure that the debtor commences making timely payments under section 1326 of this title.”. Sec. 315. Section 1307(c) of title 11, United States Code, is amended— (1) by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), respectively, and (2) by inserting after paragraph (3) the following new paragraph: “(4) failure to commence making timely payments under section 1326 of this title;”. Sec. 316. Section 1322(b)(1) of title 11, United States Code, is amended to read as follows: “(1) designate a class or classes of unsecured claims, as provided in section 1122 of this title, but may not discriminate unfairly against any class so designated; however, such plan may treat claims for a consumer debt of the debtor if an individual is liable on such consumer debt with the debtor differently than other unsecured claims;”. Sec. 317. Section 1325 of title 11, United States Code, is amended— (1) in subsection (a) by striking out “The” and inserting in lieu thereof “Except as provided in subsection (b), the”, (2) by redesignating subsection (b) as subsection (c), and (3) by inserting after subsection (a) the following new subsection: “(b) (1) If the trustee or the holder of an allowed unsecured claim objects to the confirmation of the plan, then the court may not approve the plan unless, as of the effective date of the plan— “(A) the value of the property to be distributed under the plan on account of such claim is not less than the amount of such claim; or “(B) the plan provides that all of the debtor’s projected disposable income to be received in the three-year period beginning on the date that the first payment is due under the plan will be applied to make payments under the plan. “(2) For purposes of this subsection, disposable income’ means income which is received by the debtor and which is not reasonably necessary to be expended— “(A) for the maintenance or support of the debtor or a dependent of the debtor; or “(B) if the debtor is engaged in business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business.”. Sec. 318. (a) Section 1326 of title 11, United States Code, is amended— (1) by redesignating subsections (a) and (b) as subsections (h) and (c), respectively, and (2) by inserting before such subsections the following new subsection: “(a) (1) Unless the court orders otherwise, the debtor shall commence making the payments proposed by a plan within 30 days after the plan is filed. “(2) A payment made under this subsection shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan. If a plan is not confirmed, the trustee shall return any such payments to the debtor, after deducting any unpaid claim allowed under section 503(b) of this title.”. (b) Section 15103(f) of title 11, United States Code, is amended by striking out “1326(a),” and inserting in lieu thereof “1326(b),”. Sec. 319. Section 1329(a) of title 11, United States Code, is amended by striking out “At” and all that follows through “modified to—”, and inserting in lieu thereof the following: “At any time after confirmation but before the completion of payments under a plan, the plan may be modified, upon request of the debtor, the trustee, or the holder of an allowed unsecured claim, to—”. Sec. 320. The Supreme Court shall prescribe general rules implementing Supreme Court of U.S. 28 USC 2075 note. Ante, p. 355. the practice and procedure to be followed under section 707(b) of title 11, United States Code. Section 2075 of title 28, United States Code, shall apply with respect to the general rules prescribed under this section. Sec. 321. Rule 2002 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision: “(n) In a voluntary case commenced under the Code by an individual debtor whose debts are primarily consumer debts, the clerk, or some other person as the court may direct, shall give the trustee and all creditors notice by mail of the order for relief not more than 20 days after the entry of such order.”. Sec. 322. Official Bankruptcy Form No. 1, referred to in Rule 1002 of the Bankruptcy Rules, is amended— 11 USC app. (1) by inserting after paragraph (5) the following: “(6) [If petitioner is an individual whose debts are primarily consumer debts.] Petitioner is aware that [he or she] may proceed under chapter 7 or 13 of title 11, United States Code, 11 USC 701 et seq.. 1301 et seq. understands the relief available under each such chapter, and chooses to proceed under chapter 7 of such title. “(7) [If petitioner is an individual whose debts are primarily consumer debts and such petitioner is represented by an attorney.] A declaration or an affidavit in the form of Exhibit ‘B’ is attached to and made a part of this petition.”, and (2) by inserting after Exhibit “A” at the end thereof the following new exhibit: “Exhibit ‘B’ “[If petitioner is an individual whose debts are primarily consumer debts, this Exhibit ‘B’ shall be completed and attached to the petition pursuant to paragraph (7) thereof.] Sec. 323. Section 408(c) of the Act of November 6, 1978 (Public Law 95–598; 92 Stat. 2687(c)), as amended by the Act of November 28, 1983 (Public Law 98–166; 97 Stat. 1071), is amended by striking out “September 30, 1984” and inserting in lieu thereof “September 30, 1986”. Sec. 324. Section 1103(b) of title 11, United States Code, is amended by striking out “A person” and inserting in lieu thereof “An attorney or accountant” Subtitle B— Amendments Relating to Grain Storage Facility Bankruptcy Sec. 350. Section 507(a) of title 11, United States Code, is amended— (1) by striking out “(5) Fifth” and inserting in lieu thereof “(6) Sixth” (2) by striking out “(6) Sixth” and inserting in lieu thereof “(7) Seventh”; and (3) by adding after paragraph (4) the following: “(5) Fifth, allowed unsecured claims of persons— “(A) engaged in the production or raising of grain, as Post, p. 359. defined in section 557(b)(1) of this title, against a debtor who owns or operates a grain storage facility, as defined in section 557(b)(2) of this title, for grain or the proceeds of grain, or “(B) engaged as a United States fisherman against a debtor who has acquired fish or fish produce from a fisherman through a safe or conversion, and who is engaged in operating a fish produce storage or processing facility— but only to the extent of $2,000 for each such individual.”. Sec. 351. Section 546 of title 11, United States Code, is amended— (1) in the first sentence of subsection (c) thereof, by striking out “The” and inserting in lieu thereof “Except as provided in subsection (d) of this section, the”; and (2) by redesignating subsection (d) as subsection (e); and (3) by inserting after subsection (c) the following: In the case of a seller who is a producer of grain sold to a grain storage facility, owned or operated by the debtor, in the ordinary course of such seller’s business (as such terms are defined Post, p. 359. in section 557 of this title) or in the case of a United States fisherman who has caught fish sold to a fish processing facility owned or operated by the debtor in the ordinary course of such fisherman’s business, the rights and powers of the trustee under sections 544(a), 545, 547, and 549 of this title are subject to any statutory or common law right of such producer or fisherman to reclaim such grain or fish if the debtor has received such grain or fish while insolvent, but— “(1) such producer or fisherman may not reclaim any grain or Claims. fish unless such producer or fisherman demands, in writing, reclamation of such grain or fish before ten days after receipt thereof by the debtor; and “(2) the court may deny reclamation to such a producer or fisherman with a right of reclamation that has made such a demand only if the court secures such claim by a lien.”. Sec. 352. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 557. Expedited determination of interests in, and abandonment or other disposition of grain assets “(a) This section applies only in a case concerning a debtor that owns or operates a grain storage facility and only with respect to grain and the proceeds of grain. This section does not affect the application of any other section of this title to property other than grain and proceeds of grain. “(b) In this section— “(1) ‘grain’ means wheat, corn, flaxseed, grain sorghum, barley, oats, rye, soybeans, other dry edible beans, or rice; “(2) ‘grain storage facility’ means a site or physical structure regularly used to store grain for producers, or to store grain acquired from prodùcers for resale; and “(3) ‘producer’ means an entity which engages in the growing of grain. “(c) (1) Notwithstanding sections 362, 363, 365, and 554 of this title, on the court’s own motion the court may, and on the request of the trustee or an entity that claims an interest in grain or the proceeds of grain the court shall, expedite the procedures for the determination of interests in and the disposition of grain and the proceeds of grain, by shortening to the greatest extent feasible such time periods as are otherwise applicable for such procedures and by establishing, by order, a timetable having a duration of not to exceed 120 days for the completion of the applicable procedure specified in subsection (d) of this section. Such time periods and such timetable may be modified by the court, for cause, in accordance with subsection (f) of this section. “(2) The court shall determine the extent to which such time periods shall be shortened, based upon— “(A) any need of an entity claiming an interest in such grain or the proceeds of grain for a prompt determination of such interest; “(B) any need of such entity for a prompt disposition of such grain; “(C) the market for such grain; “(D) the conditions under which such grain is stored; “(E) the costs of continued storage or disposition of such grain; “(F) the orderly administration of the estate; “(G) the appropriate opportunity for an entity to assert an interest in such grain; and “(H) such other considerations as are relevant to the need to expedite such procedures in the case. “(d) The procedures that may be expedited under subsection (c) of this section include— “(1) the filing of and response to— “(A) a claim of ownership; “(B) a proof of claim; “(C) a request for abandonment; “(D) a request for relief from the stay of action against property under section 362(a) of this title; “(E) a request for determination of secured status; “(F) a request for determination of whether such grain or the proceeds of grain— “(i) is property of the estate; “(ii) must be turned over to the estate; or “(iii) may be used, sold, or leased; and “(G) any other request for determination of an interest in such grain or the proceeds of grain; “(2) the disposition of such grain or the proceeds of grain, before or after determination of interests in such grain or the proceeds of grain, by way of— “(A) sale of such grain; “(B) abandonment; “(C) distribution; or “(D) such other method as is equitable in the case; “(3) subject to sections 701, 702, 703, 1104, and 1302 of this title, the appointment of a trustee or examiner and the retention and compensation of any professional person required to assist with respect to matters relevant to the determination of interests in or disposition of such grain or the proceeds of grain; and “(4) the determination of any dispute concerning a matter specified in paragraph (1), (2), or (3) of this subsection. “(e) (1) Any governmental unit that has regulatory jurisdiction over the operation or liquidation of the debtor or the debtor’s business shall be given notice of any request made or order entered under subsection (c) of this section. “(2) Any such governmental unit may raise, and may appear and be heard on, any issue relating to grain or the proceeds of grain in a case in which a request is made, or an order is entered, under subsection (c) of this section. “(3) The trustee shall consult with such governmental unit before taking any action relating to the disposition of grain in the possession, custody, or control of the debtor or the estate. “(f) The court may extend the period for final disposition of grain or the proceeds of grain under this section beyond 120 days if the court finds that— “(1) the interests of justice so require in light of the complexity of the case; and “(2) the interests of those claimants entitled to distribution of grain or the proceeds of grain will not be materially injured by such additional delay. “(g) Unless an order establishing an expedited procedure under subsection (c) of this section, or determining any interest in or approving any disposition of grain or the proceeds of grain, is stayed pending appeal— “(1) the reversal or modification of such order on appeal does not affect the validity of any procedure, determination, or disposition that occurs before such reversal or modification, whether or not any entity knew of the pendency of the appeal; and “(2) neither the court nor the trustee may delay, due to the appeal of such order, any proceeding in the case in which such order is issued. “(h) (1) The trustee may recover from grain and the proceeds of grain the reasonable and necessary costs and expenses allowable under section 503(b) of this title attributable to preserving or disposing of grain or the proceeds of grain, but may not recover from such grain or the proceeds of grain any other costs or expenses. “(2) Notwithstanding section 326(a) of this title, the dollar amounts of money specified in such section include the value, as of the date of disposition, of any grain that the trustee distributes in kind. “(i) In all cases where the quantity of a specific type of grain held by a debtor operating a grain storage facility exceeds ten thousand bushels, such grain shall be sold by the trustee and the assets thereof distributed in accordance with the provisions of this section.”. (b) The table of sections of chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: ‘557 Expedited determination of interests in and disposition of grain.”. Sec. 353. Section 901(a) of title 11, United States Code, is amended by inserting “557,” after “553,”. Sec. 354. Rule 3001 of the Bankruptcy Rules is amended by adding 11 USC app. at the end thereof the following new subdivision “(g) To the extent not inconsistent with the United States Warehouse Act or applicable State law, a warehouse receipt, scale ticket, or similar document of the type routinely issued as evidence of title by a grain storage facility, as defined in section 557 of title 11, shall constitute prima facie evidence of the validity and amount of a claim of ownership of a quantity of grain ”. Subtitle C— Leasehold Management Amendments Sec. 361. This subtitle may be cited as the “Leasehold Management Bankruptcy Amendments Act of 1983”. Sec. 362. (a) Section 365 of title 11, United States Code, is amended by amending subsections (a), (b), (c), and (d) to read as follows: “(a) Except as provided in sections 765 and 766 of this title and in subsections (b), (c), and (d) of this section, the trustee, subject to the court’s approval, may assume or reject any executory contract or unexpired lease of the debtor. “(b) (1) If there has been a default in an executory contract or unexpired lease of the debtor, the trustee may not assume such contract or lease unless, at the time of assumption of such contract or lease, the trustee— “(A) cures, or provides adequate assurance that the trustee will promptly cure, such default; “(B) compensates, or provides adequate assurance that the trustee will promptly compensate, a party other than the debtor to such contract or lease, for any actual pecuniary loss to such party resulting from such default; and “(C) provides adequate assurance of future performance under such contract or lease. “(2) Paragraph (1) of this subsection does not apply to a default that is a breach of a provision relating to— “(A) the insolvency or financial condition of the debtor at any time before the closing of the case; “(B) the commencement of a case under this title; or “(C) the appointment of or taking possession by a trustee in a case under this title or a custodian before such commencement. “(3) For the purposes of paragraph (1) of this subsection and paragraph (2)(B) of subsection (t), adequate assurance of future performance of a lease of real property in a shopping center includes adequate assurance— “(A) of the source of rent and other consideration due under such lease, and in the case of an assignment, that the financial condition and operating performance of the proposed assignee and its guarantors, if any, shall be similar to the financial condition and operating performance of the debtor and its guarantors, if any, as of the time the debtor became the lessee under the lease; “(B) that any percentage rent due under such lease will not decline substantially; “(C) that assumption or assignment of such lease is subject to all the provisions thereof, including (but not limited to) provisions such as a radius, location, use, or exclusivity provision, and will not breach any such provision contained in any other lease, financing agreement, or master agreement relating to such shopping center; and “(D) that assumption or assignment of such lease will not disrupt any tenant mix or balance in such shopping center. “(4) Notwithstanding any other provision of this section, if there has been a default in an unexpired lease of the debtor, other than a default of a kind specified in paragraph (2) of this subsection, the trustee may not require a lessor to provide services or supplies incidental to such lease before assumption of such lease unless the lessor is compensated under the terms of such lease for any services and supplies provided under such lease before assumption of such lease. “(c) The trustee may not assume or assign any executory contract or unexpired lease of the debtor, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties, if— “(1) (A) applicable law excuses a party, other than the debtor, to such contract or lease from accepting performance from or rendering performance to an entity other than the debtor or the debtor in possession or an assignee of such contract or lease, whether or not such contract or lease prohibits or restricts assignment of rights or delegation of duties; and “(B) such party does not consent to such assumption or assignment; or “(2) such contract is a contract to make a loan, or extend other debt financing or financial accommodations, to or for the benefit of the debtor, or to issue a security of the debtor; or “(3) such lease of nonresidential real property has been terminated under applicable nonbankruptcy law prior to the order for relief. “(d) (1) In a case under chapter 7 of this title, if the trustee does not assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor within 60 days after the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such contract or lease is deemed rejected. “(2) In a case under chapter 9, 11, or 13 of this title, the trustee 11 USC 901 et seq., 1101 et seq., 1301 et seq. may assume or reject an executory contract or unexpired lease of residential real property or of personal property of the debtor at any time before the confirmation of a plan but the court, on the request of any party to such contract or lease, may order the trustee to determine within a specified period of time whether to assume or reject such contract or lease. “(3) The trustee shall timely perform all the obligations of the debtor, except those specified in section 365(b)(2), arising from and Ante, p. 361. after the order for relief under any unexpired lease of nonresidential real property, until such lease is assumed or rejected, notwithstanding section 503(b)(1) of this title. The court may extend, for cause, the time for performance of any such obligation that arises within 60 days after the date of the order for relief, but the time for performance shall not be extended beyond such 60-day period. This subsection shall not be deemed to affect the trustee’s obligations under the provisions of subsection (b) or (f) of this section. Acceptance of any such performance does not constitute waiver or relinquishment of the lessor’s rights under such lease or under this title. “(4) Notwithstanding paragraphs (1) and (2), in a case under any chapter of this title, if the trustee does not assume or reject an unexpired lease of nonresidential real property under which the debtor is the lessee within 60 days after the date of the order for relief, or within such additional time as the court, for cause, within such 60-day period, fixes, then such lease is deemed rejected, and the trustee shall immediately surrender such nonresidential real property to the lessor.”. (b) Section 365 is further amended by adding at the end thereof the following new subsection: “(l) If an unexpired lease under which the debtor is the lessee is assigned pursuant to this section, the lessor of the property may require a deposit or other security for the performance of the debtor’s obligations under the lease substantially the same as would have been required by the landlord upon the initial leasing to a similar tenant. “(m) For purposes of this section 365 and sections 541(b)(2) and Real property. Infra. 362(b)(9), leases of real property shall include any rental agreement to use real property.”. Sec. 363. (a) Section 541(b) of title 11, United States Code, is amended to read as follows: “(b) Property of the estate does not include— “(1) any power that the debtor may exercise solely for the benefit of an entity other than the debtor; or “(2) any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease before the commencement of the case under this title, and ceases to include any interest of the debtor as a lessee under a lease of nonresidential real property that has terminated at the expiration of the stated term of such lease during the case.”. (b) Section 362(b) of title 11 of the United States Code is amended by— (1) striking out “or” at the end of paragraph (7), (2) replacing the period after paragraph (8) with “; or”, and (3) adding the following after paragraph (8): “(9) under subsection (a) of this section, of any act by a lessor to the debtor under a lease of nonresidential real property that has terminated by the expiration of the stated term of the lease before the commencement of or during a case under this title to obtain possession of such property.”. Subtitle D— Amendments to Title 11, Section 523 Relating to the Discharge of Debts Incurred by Persons Driving While Intoxicated Sec. 371. Section 523(a) of title 11, United States Code, is amended by— (1) striking out “or” at the end of paragraph (8); and (2) by adding the following new paragraph after such paragraph: “(9) to any entity, to the extent that such debt arises from a judgment or consent decree entered in a court of record against the debtor wherein liability was incurred by such debtor as a result of the debtor’s operation of a motor vehicle while legally intoxicated under the laws or regulations of any jurisdiction within the United States or its territories wherein such motor vehicle was operated and within which such liability was incurred; or”. Subtitle E— Referees Salary and Expense Fund Sec. 381. This subtitle may be cited as the “Referees Salary and Expense Fund Act of 1984”. Sec. 382. Section 403(e) of the Act of November 6, 1978 (92 Stat. 2683; Public Law 95–598), is amended to read as follows: “(e) Notwithstanding subsection (a) of this section— “(1) a fee may not be charged under section 40c(2)(a) of the Bankruptcy Act in a case pending under such Act after September 30, 1979, to the extent that such fee exceeds $200,000; “(2) a fee may not be charged under section 40c(2)(b) of the Bankruptcy Act in a case in which the plan is confirmed after September 30, 1978, or in which the final determination as to the amount of such fee is made after September 30, 1979, notwithstanding an earlier confirmation date, to the extent that such fee exceeds $100,000; “(3) after September 30, 1979, all moneys collected for payment into the referees’ salary and expense fund in cases filed 11 USC note prec. 101. under the Bankruptcy Act shall be collected and paid into the general fund of the Treasury; and “(4) any balance in the referees’ salary and expense fund in the Treasury on October 1, 1979, shall be transferred to the general fund of the Treasury and the referees’ salary and expense fund account shall be closed.”. Subtitle F— Amendments Regarding Repurchase Agreements Sec. 391. Section 101 of title 11, United States Code, is amended— (1) by redesignating paragraphs (35), (36), (37), (38), (39), (40), and (41), as paragraphs (37), (38), (39), (40), (41), (42), and (43), respectively, and (2) by inserting after paragraph (34) the following new paragraphs: “(35) ‘repo participant’ means an entity that, on any day during the period beginning 90 days before the date of the filing of the petition, has an outstanding repurchase agreement with the debtor; “(36) ‘repurchase agreement’ (which definition also applies to Securities. a reverse repurchase agreement) means an agreement, including related terms, which provides for the transfer of certificates of deposit, eligible bankers’ acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, or securities with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, or securities as described above, at a date certain not later than one year after such transfers or on demand, against the transfer of funds;”. Sec. 392. Section 362(b) of title 11, United States Code, is Ante, p. 363. amended— (a) by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively, and (b) by inserting after paragraph (6) the following new paragraph: “(7) under subsection (a) of this section, of the setoff by a repo participant, of any mutual debt and claim under or in connection with repurchase agreements that constitutes the setoff of a claim against the debtor for a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, arising out of repurchase agreements against cash, securities, or other property held by or due from such repo participant to margin, guarantee, secure or settle repurchase agreements;”. Sec. 393. Section 546 of title 11, United States Code, is amended by Ante, p. 358. inserting after subsection (e), as redesignated by section 251, the following: Notwithstanding sections 544, 545, 547, 548(a)(2), and 548(b) of this title, the trustee may not avoid a transfer that is a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, made by or to a repo participant, in connection with a repurchase agreement and that is made before the commencement of the case, except under section 548(a)(1) of this title.”. Sec. 394. Section 548(d)(2) of title 11, United States Code, is amended— (1) in subparagraph (A) by striking out “and” at the end thereof; (2) in subparagraph (B) by striking out the period at the end thereof and inserting in lieu thereof “; and”; and by inserting after paragraph (B) the following new subparagraph: “(C) a repo participant that receives a margin payment, as defined in section 741(5) or 761(15) of this title, or settlement payment, as defined in section 741(8) of this title, in connection with a repurchase agreement, takes for value to the extent of such payment.”. Sec. 395. Section 553(b)(1) of title 11, United States Code, is amended by inserting “, 362(b)(7),” after “362(b)(6)”. Sec. 396. (a) Chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new section: “§ 559. Contractual right to liquidate a repurchase agreement “The exercise of a contractual right of a repo participant to cause the liquidation of a repurchase agreement because of a condition of the kind specified in section 365(e)(1) of this title shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title, unless, where the debtor is a stockbroker or securities clearing agency, such order is authorized under the provisions of the Securities Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.) or any statute administered by the Securities and Exchange Commission. In the event that a repo participant liquidates one or more repurchase agreements with a debtor and under the terms of one or more such agreements has agreed to deliver assets subject to repurchase agreements to the debtor, any excess of the market prices received on liquidation of such assets (or if any such assets are not disposed of on the date of liquidation of such repurchase agreements, at the prices available at the time of liquidation of such repurchase agreements from a generally recognized source or the most recent closing bid quotation from such a source) over the sum of the stated repurchase prices and all expenses in connection with the liquidation of such repurchase agreements shall be deemed property of the estate, subject to the available rights of setoff. As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw, applicable to each party to the repurchase agreement, of a national securities exchange, a national securities association, or a securities clearing agency, and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal business practice.”. (b) The analysis of sections for chapter 5 of title 11, United States Code, is amended by adding at the end thereof the following new item: “559. Contractual right to liquidate a repurchase agreement.”. Subtitle G— Amendments to Title 11, Section 365 of the United States Code to Provide Adequate Protection for Timeshare Consumers Sec. 401. Title 11, United States Code, section 101 is hereby amended by— (1) redesignating paragraph (43), as redesignated by section Ante, p. 364. Real property. 391, as paragraph (44); and (2) adding the following paragraph after paragraph (42), as redesignated in section 391: “(43) ‘timeshare plan’ means and shall include that interest purchased in any arrangement, plan, scheme, or similar device, but not including exchange programs, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, right to use agreement, or by any other means, whereby a purchaser, in exchange for consideration, receives a right to use accommodations, facilities, or recreational sites, whether improved or unimproved, for a specific period of time less than a full year during any given year, but not necessarily for consecutive years, and which extends for a period of more than three years. A ‘timeshare interest’ is that interest purchased in a timeshare plan which grants the purchaser the right to use and occupy accommodations, facilities, or recreational sites, whether improved or unimproved, pursuant to a timeshare plan.”. Sec. 402. Section 365(h)(1) of title 11, United States Code, is Real property. amended to read as follows: “(h) (1) If the trustee rejects an unexpired lease of real property of the debtor under which the debtor is the lessor, or a timeshare interest under a timeshare plan under which the debtor is the timeshare interest seller, the lessee or timeshare interest purchaser under such lease or timeshare plan may treat such lease or time-share plan as terminated by such rejection, where the disaffirmance by the trustee amounts to such a breach as would entitle the lessee or timeshare interest purchaser to treat such lease as terminated by virtue of its own terms, applicable nonbankruptcy law, or other agreements the lessee or timeshare interest purchaser has made with other parties; or, in the alternative, the lessee or timeshare interest purchaser may remain in possession of the leasehold or timeshare interest under any lease or timeshare plan the term of which has commenced for the balance of such term and for any renewal or extension of such term that is enforceable by such lessee or timeshare interest purchaser under applicable nonbankruptcy law.”. Sec. 403. Section 365(h)(2) of title 11, United States Code, is Real property. amended to read as follows: “(2) If such lessee or timeshare interest purchaser remains in possession as provided in paragraph (1) of this subsection, such lessee or timeshare interest purchaser may offset against the rent reserved under such lease or moneys due for such timeshare interest for the balance of the term after the date of the rejection of such lease or timeshare interest, and any such renewal or extension thereof, any damages occurring after such date caused by the non-performance of any obligation of the debtor under such lease or timeshare plan after such date, but such lessee or timeshare interest purchaser does not have any rights against the estate on account of any damages arising after such date from such rejection, other than such offset.”. Sec. 404. Section 365(i)(1) of title 11, United States Code, is Real property. amended to read as follows: “(i) (1) If the trustee rejects an executory contract of the debtor for the sale of real property or for the sale of a timeshare interest under a timeshare plan, under which the purchaser is in possession, such purchaser may treat such contract as terminated, or, in the alternative, may remain in possession of such real property or timeshare interest.”. Subtitle H— Miscellaneous Amendments to Title 11 Sec. 421. (a) Section 101(2)(D) of title 11 of the United States Code is amended by striking out “or all” after “business”. (b) Section 101(8)(B) of title 11 of the United States Code is amended by striking out the colon at the end thereof and inserting in lieu thereof a semicolon. (c) Section 101(9)(B) of title 11 of the United States Code is amended by inserting “348(d),” after “section”. (d) Section 101(14) of title 11 of the United States Code is amended by inserting “and” after “trust,”. (e) Section 101(24) of title 11 of the United States Code is amended by striking out “stock broker” and inserting in lieu thereof “stockbroker” (f) Section 101(26)(B)(ii) of title 11 of the United States Code is amended by— (1) striking out “separate” each place it appears and inserting in lieu thereof “nonpartnership”; and (2) striking out “(A)(ii) and inserting in lieu thereof “(A)”, (g) Section 101(30) of title 11 of the United States Code is amended to read as follows: (30) “person” includes individual, partnership, and corporation, but does not include governmental unit, Provided, however, That any governmental unit that acquires an asset from a person as a result of operation of a loan guarantee agreement, or as receiver or liquidating agent of a person, will be considered a person for purposes of section 1102 of this title. (h) Section 101(38)(B)(vi) of title 11 of the United States Code, as Ante, p. 364. redesignated by section 391 of this Act, is amended by— (1) striking out “certificate specified in clause (xii) of subparagraph (A)” and inserting in lieu thereof “certificate of a kind specified in subparagraph (A)(xii)”; and (2) striking out “the subject of such a registration statement” and inserting in lieu thereof “required to be the subject of a registration statement”. (i) Section 101(44) of title 11 of the United States Code, as so redesignated, is amended by striking out the period and inserting in lieu thereof “and foreclosure of the debtor’s equity of redemption; and”. (j) Section 101 of title 11 of the United States Code is amended— (1) by redesignating paragraphs (41) through (44), as previously redesignated, as paragraphs (45) through (48); (2) by redesignating paragraphs (21) through (40) as paragraphs (24) through (43), respectively; (3) by redesignating paragraphs (19) and (20) as paragraphs (20) and (21), respectively; (4) by inserting after paragraph (18) the following: “(19) ‘financial institution’ means a person that is a commercial or savings bank, industrial savings bank, savings and loan association, or trust company and, when any such person is acting as agent or custodian for a customer in connection with a securities contract, as defined in section Post, p. 382. 741(7) of this title, such customer;”; (5) by inserting after paragraph (21) as redesignated herein the following: “(22) ‘forward contract’ means a contract (other than a commodity contract) for the purchase, sale, or transfer of a commodity, or product or byproduct thereof, with a maturity date more than two days after the date the contract is entered into; “(23) ‘forward contract merchant’ means a person whose business consists in whole or in part of entering into forward contracts as or with merchants in commodities;”; (6) by inserting after paragraph (43) the following: “(44) ‘State’ includes the District of Columbia and Puerto Rico, except for the purpose of defining who may be a debtor under chapter 9 of this title;”; and 11 USC 901 el seq. (7) by inserting after paragraph (48) the following: “(49) ‘United States’, when used in a geographical sense, includes all locations where the judicial jurisdiction of the United States extends, including territories and possessions of the United States;”. Sec. 422. Section 102 of title 11 of the United States Code is amended by striking out “continued” and inserting in lieu thereof “contained” in paragraph (8). Sec. 423. Section 103(c) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stockbroker”. Sec. 424. (a) Subsections (a)(1), (b)(1), and (c)(1) of section 108 of title 11 of the United States Code are each amended by striking out “and” each place it appears and inserting in lieu thereof “or”. (b) Subsections (a), (b), and (c) of section 108 of title 11 of the United States Code are each amended by inserting “nonbankruptcy” after “applicable” and after “entered in a” each place such terms appear. Sec. 425. (a) Section 109 of title 11 of the United States Code, is amended by striking out “in the United States,” the first place it appears. (b) Section 109(c)(5)(D) of title 11 of the United States Code of this Act is amended by striking out “preference” and inserting in lieu thereof “transfer that is avoidable under section 547 of this title”. (c) Section 109(d) of title 11 of the United States Code is amended by striking out “stockholder” and inserting in lieu thereof “stock-broker”. Sec. 426. (a) Section 303(b) of title 11 of the United States Code is amended by inserting “against a person” after “involuntary case”. (b) Section 303 of title 11 of the United States Code, is amended— (1) in subsection (b)(1) by inserting “or the subject on a bona fide dispute,” after “liability”; and (2) in subsection (h)(1) by inserting “unless such debts that are the subject of a bona fide dispute” after “due”. Sec. 427. Section 303(j)(2) of title 11 of the United States Code is amended by striking out “debtors” and inserting in lieu thereof “debtor”. Sec. 428. Section 321(b) of title 11 of the United States Code is amended by striking out “a case” and inserting in lieu thereof “the case”. Sec. 429. Section 322(b)(1) of title 11 of the United States Code is amended by inserting “required to be” after “bond”. Sec. 430. (a) Section 326(a) of title 11 of the United States Code is amended by striking out all the language beginning with “three percent” through “$50,000” the second place the latter appears and inserting in lieu thereof “and three percent on any amount in excess of $3,000”. (b) Section 326(d) of title 11 of the United States Code is amended to read as follows: “(d) The court may deny allowance of compensation for services or reimbursement of expenses of the trustee if the trustee failed to make diligent inquiry into facts that would permit denial of allowance under section 328(c) of this title or, with knowledge of such facts, employed a professional person under section 327 of this title.”. (c) Section 327(c) of title 11 of the United States Code is amended to read as follows: “(c) In a case under chapter 7 or 11 of this title, a person is not disqualified for employment under this section solely because of such person’s employment by or representation of a creditor, unless there is objection by another creditor, in which case the court shall disapprove such employment if there is an actual conflict of interest.”. Sec. 431. Section 328(a) of title 11 of the United States Code is amended by striking out “unanticipatable” and inserting in lieu thereof “not capable of being anticipated”. Sec. 432. (a) Section 329(a) of title 11 of the United States Code is amended by striking out “and” the first place it appears and inserting in lieu thereof “or”. (b) Section 329(b)(1) of title 11 of the United States Code is amended by striking out “trustee” and inserting in lieu thereof “estate” Sec. 433. Section 330(a) of title 11 of the United States Code is amended— (1) by striking out “to any parties in interest and to the United States trustee”; and (2) in paragraph (1), by striking out “time, the nature, the extent, and the value of such services” and inserting in lieu thereof “nature, the extent, and the value of such services, the time spent on such services”. Sec. 434. (a) Section 330(b) of title 11 of the United States Code is amended by striking out “$20” and inserting in lieu thereof “$45”. (b) Section 330 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(c) Unless the court orders otherwise, in a case under chapter 13 11 USC 1301 et seq. of this title the compensation paid to the trustee serving in the case shall not be less than $5 per month from any distribution under the plan during the administration of the plan.”. Sec. 435. Section 342 of title 11 of the United States Code as Ante, p. 352. amended by section 302 is further amended by amending subsection (a) to read as follows: “(a) There shall be given such notice as is appropriate, including notice to any holder of a community claim, of an order for relief in a case under this title.”. Sec. 436. Section 343 of title 11 of the United States Code is amended by striking out “examiner” the last place it appears and inserting in lieu thereof “examine”. Sec. 437. Section 345 of title 11 of the United States Code is amended by adding at the end thereof a new subsection (c) as follows: “(c) An entity with which such moneys are deposited or invested is authorized to deposit or invest such moneys as may be required under this section”. Sec. 438. Section 346(c)(2) of title 11 of the United States Code is amended by striking out “operation” and inserting in lieu thereof “corporation”. Sec. 439. Section 350(b) of title 11 of the United States Code is amended by striking out “a” and inserting in lieu thereof “A”. Sec. 440. Section 361(1) of title 11 of the United States Code is amended by inserting “a cash payment or” after “make ”. Sec. 441. (a) Section 362(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “action or” after “other”; and (2) in paragraph (3), by inserting “or to exercise control over property of the estate” after “estate” the second place it appears. (b) Section 362(b) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting “or to the extent that such act is accomplished within the period provided under section 547(e)(2)(A) of this title” after “title”; (2) in paragraph (6), by— (A) inserting “or due from” after “held by”; and (B) striking out “or secure commodity contracts” and inserting in lieu thereof “secure, or settle commodity contracts”, and by inserting “financial institution,” after “stockbroker” each time it appears. (3) in paragraph (8) as redesignated by section 392, by— Ante, p. 365. (A) striking out “said” and inserting in lieu thereof “the”; and (B) striking out “or” the last place it appears; (4) in paragraph (9) as redesignated by section 392, by striking out the period and inserting in lieu thereof a semicolon; and (5) by adding after paragraph (9) the following new paragraph: “(10) under subsection (a) of this section, of the presentment of a negotiable instrument and the giving of notice of and protesting dishonor of such an instrument.”. (c) Section 362(c)(2)(B) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. (d) Section 362(d)(2) of title 11 of the United States Code is amended by inserting “under subsection (a) of this section” after “property” the first place it appears. (e) Section 362(e) of title 11 of the United States Code is amended— (1) in the first sentence by inserting “the conclusion of” after “pending”; and (2) by striking out the last sentence and inserting in lieu thereof the following: “The court shall order such stay continued in effect pending the conclusion of the final hearing under subsection (d) of this section if there is a reasonable likelihood that the party opposing relief from such stay will prevail at the conclusion of such final hearing. If the nearing under this subsection is a preliminary hearing, then such final hearing shall be commenced not later than thirty days after the conclusion of such preliminary hearing.”. (f) Section 362(f) of title 11 of the United States Code is amended by— (1) striking out “The” and inserting in lieu thereof “Upon request of a party in interest, the”; and (2) inserting “with or” after “court,”. Sec. 442. (a) Section 363(a) of title 11 of the United States Code is amended by— (1) inserting “whenever acquired” after “equivalents”; and (2) inserting “and includes the proceeds, products, offspring, rents, or profits of property subject to a security interest as provided in section 552(b) of this title, whether existing before or after the commencement of a case under this title” after “interest”. (b) Section 363(b) of title 11 of the United States Code is amended by— (1) striking out “(b)” and inserting in lieu thereof “(b)(1)”; and (2) adding at the end thereof the following new paragraph: “(2) If notification is required under subsection (a) of section 7 A of the Clayton Act (15 U.S.C. 18a) in the case of a transaction under this subsection, then— “(A) notwithstanding subsection (a) of such section, such notification shall be given by the trustee; and “(B) notwithstanding subsection (b) of such section, the required waiting period shall end on the tenth day after the date of the receipt of such notification, unless the court, after notice and hearing, orders otherwise.”. (c) Section 363(e) of title 11 of the United States Code is amended by— (1) inserting “, with or without a hearing,” after “court”; and (2) striking out the last sentence. (d) Section 363(f)(3) of title 11 of the United States Code is amended by striking out “such interest” the second place it appears and inserting in lieu thereof “all liens on such property”. (e) Section 363(h) of title 11 of the United States Code is amended by striking out “immediately before” and inserting in lieu thereof “at the time of”. (f) Section 363(i) of title 11 of the United States Code is amended by striking out “compenation” and inserting in lieu thereof “compensation”. (g) Section 363(k) of title 11 of the United States Code is amended by striking out “if the holder” and inserting in lieu thereof “unless the court for cause orders otherwise the holder of such claim may bid at such sale, and, if the holder”. (h) Section 363(1) of title 11 of the United States Code is amended by— (1) striking out “The trustee” and inserting in lieu thereof “Subject to the provisions of section 365, the trustee”; (2) striking out “conditions” and inserting in lieu thereof “condition”; (3) striking out “a taking” and inserting in lieu thereof “or the taking”; and (4) striking out “interests” and inserting in lieu thereof “interest”. (i) Section 363(n) of title 11 of the United States Code is amended by— (1) striking out “void” and inserting in lieu thereof “avoid”; (2) striking out “voiding” and inserting in lieu thereof “avoiding”; and (3) amending the last sentence to read as follows: “In addition to any recovery under the preceding sentence, the court may grant judgment for punitive damages in favor of the estate and against any such party that entered into such an agreement in willful disregard of this subsection.”. (j) Section 363 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(o) In any hearing under this section— “(1) the trustee has the burden of proof on the issue of adequate protection; and “(2) the entity asserting an interest in property has the burden of proof on the issue of the validity, priority, or extent of such interest.”. Sec. 443. Section 366(a) of title 11 of the United States Code is amended by inserting “of the commencement of a case under this title or” after “basis”. Sec. 444. Section 501(d) of title 11 of the United States Code is amended by inserting “502(e)(2),” before “502(f)”. Sec. 445. (a) Section 502(a) of title 11 of the United States Code is amended by inserting “general” before “partner”. (b) Section 502(b) of title 11 of the United States Code is amended— (1) by inserting “(e)(2),” after “subsections”; (2) by inserting “in lawful currency of the United States” after “claim” the second place it appears; (3) in paragraph (1), by striking out “, and unenforceable against” and inserting in lieu thereof “and”; (4) by striking out paragraph (3) and redesignating paragraphs (4), (5), (6), (7), (8), and (9) as paragraphs (3), (4), (5), (6), (7), and (8), respectively; (5) in paragraph (3), as redesignated by paragraph (5), by inserting “the” after “exceeds”; (6) in paragraph (5), as redesignated by paragraph (5), by— (A) striking out “the claim” and inserting in lieu thereof “such claim”, and (B) striking out the comma after “petition”; and (7) in paragraph (7), as redesignated by paragraph (5), by— (A) inserting “the claim of an employee” before “for damages”; (B) striking out “and” in subparagraph (A)(i) and inserting in lieu thereof “or”; (C) striking out “the” the first place it appears in subparagraph (B) and inserting in lieu thereof “any”; and (D) inserting a comma after “such contract” in subparagraph (B). (c) Section 502(c) of title 11 of the United States Code is amended— (1) in paragraph (1) by— (A) inserting “the” before “fixing”; and (B) striking out “closing” and inserting in lieu thereof “administration”; and (2) in paragraph (2), by— (A) inserting “right to payment arising from a” after “any”; and (B) striking out “if such breach gives rise to a right to payment”. (d) Section 502(e)(1) of title 11, United States Code, is amended— (1) by striking out “and (b)” and inserting in lieu thereof “, (b), and (c)”; and (2) by striking out the commas before and after “or has secured”; (3) in subparagraph (B), by inserting “or disallowance” after “allowance”; and (4) in subparagraph (C), by— (A) striking out “requests subrogation” and inserting in lieu thereof “asserts a right of subrogation to the rights of such creditor”; and (B) striking out “to the rights of such creditor”. (e) Section 502(h) of title 11 of the United States Code is amended by striking out “522(i)” and inserting in lieu thereof “522”. (f) Section 502(j) of title 11 of the United States Code is amended to read as follows: “(j) A claim that has been allowed or disallowed may be reconsidered for cause. A reconsidered claim may be allowed or disallowed according to the equities of the case. Reconsideration of a claim under this subsection does not affect the validity of any payment or transfer from the estate made to a holder of an allowed claim on account of such allowed claim that is not reconsidered, but if a reconsidered claim is allowed and is of the same class as such holder’s claim, such holder may not receive any additional payment or transfer from the estate on account of such holder’s allowed claim until the holder of such reconsidered and allowed claim receives payment on account of such claim proportionate in value to that already received by such other holder. This subsection does not alter or modify the trustee’s right to recover from a creditor any excess payment or transfer made to such creditor.”. Sec. 446. Section 503(b) of title 11 of the United States Code is amended— (1) by striking out the comma after “be allowed”; (2) in paragraph (1)(C), by striking out the comma after “credit”; (3) in paragraph (2), by inserting “(a)” after “330”; (4) in paragraph (3), by inserting a comma after “paragraph (4) of this subsection”; (5) in paragraph (3)(C), by striking out the comma after “case”; (6) in paragraph (5), by striking out “and” after the semicolon; and (7) in paragraph (6), by striking out the period and inserting in lieu thereof “; and”. Sec. 447. Section 505(a) of title 11 of the United States Code is amended in paragraph (2)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 448. (a) Section 506(b) of title 11 of the United States Code is amended by inserting “for” after “provided”. (b) Paragraphs (1) and (2) of section 506(d) of title 11 of the United States Code are amended to read as follows: “(1) such claim was disallowed only under section 502(b)(5) or 502(e) of this title; or “(2) such claim is not an allowed secured claim due only to the failure of any entity to file a proof of such claim under section 501 of this title.”. Sec. 449. (a) Section 507(a) of title 11 of the United States Code is amended— (1) in paragraph (3), by inserting a comma after “severance”: (2) in paragraph (4), by striking out “employee benefit plans” and inserting in lieu thereof “an employee benefit plan”; (3) in paragraph (4)(B)(i), by inserting “each” after “covered by”; and (4) in paragraph (7) as redesignated by section 350 by inserting “only” after “units,”. (b) Section 507(c) of title 11 of the United States Code is amended by striking out “shall be treated the same” and inserting in lieu thereof “has the same priority”. Sec. 450. (a) Section 509(a) of title 11 of the United States Code is amended by— (1) striking out “subsections (b) and” and inserting in lieu thereof “subsection (b) or”; and (2) inserting “against the debtor” after “a creditor”. (b) Section 509(b)(1) of title 11 of the United States Code is amended by striking out “of a” and inserting in lieu thereof “of such”. (c) Section 509(c) of title 11 of the United States Code is amended by striking out “section 509 of this title” and inserting in lieu thereof “this section”. Sec. 451. Section 510(b) of title 11 of the United States Code is Claims. amended to read as follows: “(b) For the purpose of distribution under this title, a claim arising from rescission of a purchase or sale of a security of the debtor or of an affiliate of the debtor, for damages arising from the purchase or sale of such a security, or for reimbursement or contribution allowed under section 502 on account of such a claim, shall be subordinated to all claims or interests that are senior to or equal the claim or interest represented by such security, except that if such security is common stock, such claim has the same priority as common stock.”. Sec. 452. Section 521(3) of title 11 of the United States Code, as redesignated in section 305, is amended by inserting “, whether or Ante, p. 352. not immunity is granted under section 344 of this title” after “estate” the second place it appears. Sec. 453. (a) Section 522(a)(2) of title 11 of the United States Code is amended by inserting “or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate” after “petition”. (b) Section 522(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the case is dismissed, property exempted under this section is not liable during or after the case for any debt of the debtor that arose, or that is determined under section 502 of this title as if such debt had arisen, before the commencement of the case, except— “(1) a debt of a kind specified in section 523(a)(1) or 523(a)(5) of this title; or “(2) a debt secured by a lien that is— “(A) (i) not avoided under subsection (f) or (g) of this section or under section 544, 545, 547, 548, 549, or 724(a) of this title; and “(ii) not void under section 506(d) of this title; or Ante, p. 374. “(B) a tax lien, notice of which is properly filed.”. (c) Section 522(e) of title 11 of the United States Code is amended by striking out “exemptions” and inserting in lieu thereof “an exemption”. Sec. 454. (a) Section 523(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by— (A) striking out “obtaining” each place it appears; and (B) striking out “refinance of credit,” and inserting in lieu thereof “refinancing of credit, to the extent obtained”; and (2) by striking out “of higher education” in paragraph (8). (b) Section 523(a)(5) of title 11, United States Code, is amended by— (1) amending the first paragraph thereof by inserting the words “or other order of a court of record” after the words “divorce decree,”; and (2) inserting “, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State” after “Social Security Act”. (c) Section 523(c) of title 11 of the United States Code is amended by inserting “of a kind” after “debt” the first time it appears. Sec. 455. Section 524(a) of title 11 of the United States Code is amended by striking out “any act” each place it appears and inserting in lieu thereof “an act”. Sec. 456. (a) Section 541(a) of title 11 of the United States Code is amended— (1) by striking out “under” the second time it appears; (2) by inserting “and by whomever held” after “located”; (3) in paragraph (3), by inserting “329(b), 363(n),” after “section”; (4) in paragraph (5), by striking out “An” and inserting in lieu thereof “Any”; and (5) in paragraph (6), by striking out “and” and inserting in lieu thereof “or”. (b) Section 541(c) of title 11 of the United States Code is amended— (1) by inserting “in an agreement, transfer instrument, or applicable nonbankruptcy law” after “provision”; and (2) in paragraph (1)(B), by— (A) striking out “the taking” and inserting in lieu thereof “taking”; and (B) inserting “before such commencement” after “custodian”. (c) Section 541(d) of title 11 of the United States Code is amended by inserting “(1) or (2)” after “(a)”. (d) Section 541(e) of title 11 of the United States Code is repealed. Sec. 457. Section 542(e) of title 11 of the United States Code is amended by inserting “to turn over or” before “disclose”. Sec. 458. (a) Section 543(a) of title 11 of the United States Code is amended by inserting “, product, offspring, rents, or profits” after “proceeds”. (b) Section 543(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by— (A) inserting “held by or” after “debtor”; and (B) inserting “, product, offspring, rents, or profits” after “proceeds”; and (2) in paragraph (2), by inserting “, product, offspring, rents, or profits” after “proceeds”. (c) Section 543(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “or proceeds, product, off-spring, rents, or profits of such property” after “property”; and (2) in paragraph (3), by inserting “that has been” before “approved”. (d) Section 543(d) of title 11 of the United States Code is amended to read as follows: “(d) After notice and hearing, the bankruptcy court— “(1) may excuse compliance with subsection (a), (b), or (c) of this section, if the interests of creditors and, if the debtor is not insolvent, of equity security holders would be better served by permitting a custodian to continue in possession, custody, or control of such property, and “(2) shall excuse compliance with subsections (a) and (b)(1) of this section if the custodian is an assignee for the benefit of the debtor’s creditors that was appointed or took possession more than 120 days before the date of the filing of the petition, unless compliance with such subsections is necessary to prevent fraud or injustice.”. Sec. 459. Section 544(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “such” after “obtained”; (2) in paragraph (2), by striking out “; and” and inserting in lieu thereof “, or”; and (3) in paragraph (3), by— (A) inserting “, other than fixtures,” after “property”; and (B) inserting “and has perfected such transfer” after “purchaser” the second place it appears. Sec. 460. Section 545 of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by striking out “is” the first time it appears; (2) in paragraph (1)(C), by striking out “apponted” and inserting in lieu thereof appointed or authorized to take”; and (3) in paragraph (2), by striking out “on the date of of the filing the petition” each place it appears and inserting in lieu thereof “at the time of the commencement of the case”. Sec. 461. (a) Section 546(a) of title 11 of the United States Code is amended in paragraph (1) by striking out “and” and inserting in lieu thereof “or”. (b) Section 546(b) of title 11 of the United States Code is amended by striking out “the trustee under section 544, 545, or” and inserting in lieu thereof “a trustee under sections 544, 545, and”. (c) Section 546(c) of title 11 of the United States Code is amended— (1) by striking out “the trustee” and inserting in lieu thereof “a trustee”; (2) by striking out “right” the first place it appears; (3) by inserting “of goods that has sold goods to the debtor” after “seller” the first place it appears; (4) by striking out “of goods to the debtor” after “business,”; and (5) in paragraph (2), by— (A) inserting “the” after “if’; and (B) striking out “an administrative expense” and inserting in lieu thereof “a claim of a kind specified in section 503(b) of this title” (d) Section 546(e) of title 11 of the United States Code, as redesignated by section 351, is amended by inserting “financial institution” after “stockbroker”. Sec. 462. (a) Section 547(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “including proceeds of such property,” after “law,”; and (2) in paragraph (4), by— (A) striking out “, without penalty”; and (B) inserting “without penalty” after “payable”. (b) Section 547(b) of title 11 of the United States Code is amended— (1) by striking out “of property of the debtor” and inserting in lieu thereof “of an interest of the debtor in property”; and (2) in paragraph (4) by amending subparagraph (B) to read as follows: “(B) between ninety days and one year before the date of the Tiling of the petition, if such creditor at the time of such transfer was an insider;”. (c) Section 547 of title 11 of the United States Code is amended in subsection (c)(2) thereof by striking out subparagraph (B) of such subsection, and by redesignating subparagraphs (C) and (D) thereof as subparagraphs (B) and (C), respectively. (d) Section 547(c) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by inserting “by the debtor” after “incurred”; (2) in paragraph (3), by striking out “of” the first place it appears and inserting in lieu thereof “that creates”; (3) in paragraph (3)(B), by— (A) inserting “on or after “perfected”; and (B) striking out “such security interest attaches” and inserting in lieu thereof “the debtor receives possession of such property”; (4) in paragraph (5), by— (A) striking out “of” the first place it appears and inserting in lieu thereof “that creates”; and (B) striking out “all security interest” and inserting in lieu thereof “all security interests”; and (5) in paragraph (5)(A)(ii), by striking out “and” and inserting in lieu thereof “or”. (e) Section 547(d) of title 11 of the United States Code is amended by— (1) striking out “A” and inserting in lieu thereof “The”; (2) inserting “an interest in” after “transfer of’: (3) inserting “to or for the benefit of a surety” after “transferred”; and (4) inserting “such” after “reimbursement of’. (f) Section 547(e) of title 11 of the United States Code is amended in paragraph (2)(C)(i), by striking out “and” and inserting in lieu thereof “or”. (g) Section 547 of title 11 of the United States Code is amended by adding at the end thereof the following new subsection: “(g) For the purposes of this section, the trustee has the burden of proving the avoidability of a transfer under subsection (b) of this section, and the creditor or party in interest against whom recovery or avoidance is sought has the burden of proving the nonavoidability of a transfer under subsection (c) of this section.”. Sec. 463. (a) Section 548(a) of title 11 of the United States Code is amended— (1) by striking out “if the debtor” and inserting in lieu thereof “if the debtor voluntarily or involuntarily”; (2) in paragraph (1), by striking out “occurred” and inserting in lieu thereof “was made”; and (3) in paragraph (2)(B)(ii), by inserting “or a transaction” after “engaged in business”. (b) Section 548(c) of title 11 of the United States Code is amended by— (1) inserting “or may retain” after “lien on”; and (2) striking out “, may retain any lien transferred,”. (c) (1) Section 548(d)(1) of title 11 of the United States Code is amended by— (A) striking out “becomes so far” and inserting in lieu thereof “is so”; (B) striking out “such transfer could have been” and inserting in lieu thereof “applicable law permits such transfer to be”; and (C) striking out “occurs” and inserting in lieu thereof “is made”. (2) Section 548(d)(2)(B) of title 11 is amended by inserting “financial institution,” after “stockbroker”. Sec. 464. (a) Section 549(a) of title 11 of the United States Code is amended— (1) by striking out “(b) and (c)” and inserting in lieu thereof “(b) or (c)”; and (2) in paragraph (2)(A), by inserting “only” after “authorized”. (3) striking out “that occurs” and inserting in lieu thereof “made”; (4) striking out “is valid against the trustee to the extent of’ and inserting in lieu thereof “to the extent”; and (5) inserting “is” before “given”. (c) Section 549(c) of title 11 of the United States Code is amended Real property. to read as follows: “(c) The trustee may not avoid under subsection (a) of this section a transfer of real property to a good faith purchaser without knowledge of the commencement of the case and for present fair equivalent value unless a copy or notice of the petition was filed, where a transfer of such real property may be recorded to perfect such transfer, before such transfer is so perfected that a bona fide purchaser of such property, against whom applicable law permits such transfer to be perfected, could not acquire an interest that is superior to the interest of such good faith purchaser. A good faith purchaser without knowledge of the commencement of the case and for less than present fair equivalent value has a lien on the property transferred to the extent of any present value given, unless a copy or notice of the petition was so filed before such transfer was so perfected”. (d) Section 549(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 465. (a) Section 550(a) of title 11 of the United States Code is amended by striking out “549, or 724(a) of this title” and inserting in lieu thereof “549, 553(b), or 724(a) of this title”. (b) Section 550(d) of title 11 of the United States Code is amended— (1) in paragraph (1)(A), by inserting “or accruing to” after “by”; (2) in paragraph (1)(B), by striking out “value” and inserting in lieu thereof “the value of such property”; (3) in paragraph (2), by striking out subparagraphs (D) and (E) and inserting in lieu thereof the following: “(D) payment of any debt secured by a lien on such property that is superior or equal to the rights of the trustee; and”, and (4) in paragraph (2), by redesignating subparagraph (F) as subparagraph (E). (c) Section 550(e)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 466. Section 552(b) of title 11 of the United States Code is amended by— (1) inserting “522,” after “506(c),”; (2) striking out “a secured party enter” and inserting in lieu thereof “an entity entered”; and (3) striking out “except to the extent” and inserting in lieu thereof “except to any extent”. Sec. 467. Section 553(b)(1) of title 11 of the United States Code is amended by striking out “or 365(h)(1)” and inserting in lieu thereof “, 365(h)(2), or 365(i)(2)”. Sec. 468. (a) Subsections (a) and (b) of section 554 of title 11 of the United States Code are each amended by inserting “and benefit” after “value”. (b) Section 554(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the court orders otherwise, any property scheduled under section 521(a)(1) of this title not otherwise administered at the time of the closing of a case is abandoned to the debtor and administered for purposes of section 350 of this title.”. (c) Section 554(d) of title 11 of the United States Code is amended by striking out “section (a) or (b) of”. Sec. 469. Section 555 of title 11 of the United States Code is amended by inserting “, financial institution,” after “stockbroker”. Sec. 470. (a) Chapter 5 of title 11 of the United States Code as amended by section 352 is amended by adding at the end thereof the following new section: “§ 558. Defenses of the estate “The estate shall have the benefit of any defense available to the debtor as against any entity other than the estate, including statutes of limitation, statutes of frauds, usury, and other personal defenses. A waiver of any such defense by the debtor after the commencement of the case does not bind the estate.”. (b) The table of sections for chapter 5 of title 11 of the United States Code is amended by adding at the end thereof the following new item: “558. Defenses of the estate.”. Sec. 471. The table of sections for chapter 7 of title 11 of the United States Code is amended by striking out “Succesor” in the item relating to section 703 and inserting in lieu thereof “Succcssor” Sec. 472. (a) Section 702(b) of title 11 of the United States Code is amended by inserting “held” after “meeting of creditors”. (b) Section 702(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “of a kind” after “claims”; and (2) in paragraph (2), by inserting “a” after “for”. (c) Section 702(d) of title 11 of the United States Code is amended by striking out “subsection (c) of”. Sec. 473. Section 703(b) of title 11 of the United States Code is amended by striking out “specified in section 701(a) of this title. Sections 701(b) and 701(c) of this title apply to such interim trustee” and inserting in lieu thereof “and subject to the provisions of section 701 of this title”. Sec. 474. Section 704 of title 11 of the United States Code as amended by section 311 is amended in paragraph (1), by striking out Ante, p. 355. “up”. Sec. 475. Paragraphs (1) and (2) of section 707 of title 11 of the United States Code are each amended by striking out “and” and inserting in lieu thereof “or”. Sec. 476. (a) Section 723(a) of title 11 of the United States Code is amended by striking out all after “claims” and inserting in lie thereof “which are allowed in a case under this chapter concerning a partnership and with respect to which a general partner of the partnership is personally liable, the trustee shall have a claim against such general partner for the full amount of the deficiency”. (b) Section 723(c) of title 11 of the United States Code is amended by— (1) striking out “such case” each place it appears and inserting in lieu thereof “such partner’s case”; (2) striking out “be property” and inserting in lieu thereof “by property”; and (3) striking out “the kind” and inserting in lieu thereof “a kind”. Sec. 477. (a) Section 724(b) of title 11 of the United States Code is amended— (1) by striking out “taxes” and inserting in lieu thereof “a tax”; (2) in paragraph (2), by— (A) striking out “claims” and inserting in lieu thereof “any holder of a claim of a kind”; (B) striking out “sections” and inserting in lieu thereof “section”; and (C) striking out “and” and inserting in lieu thereof “or”; and (3) in paragraph (3), by inserting “tax” after “allowed”. (b) Section 724(c) of title 11 of the United States Code is amended by— (1) striking out “creditor” and inserting in lieu thereof “holder of a claim”; and (2) striking out “creditors” each place it appears and inserting in lieu thereof “holders”. (c) Section 724(d) of title 11 of the United States Code is amended by— (1) striking out “whose priority” and inserting in lieu thereof “the priority of which”; and (2) inserting ‘ if such lien were” after “the same as”. Sec. 478. Section 725 of title 11 of the United States Cede is amended by inserting “of property of the estate” after “distribution”. Sec. 479. (a) Section 726(b) of title 11 of the United States Code is amended by— (1) striking out “a particular paragraph” and inserting in lieu thereof “each such particular paragraph”; and (2) striking out “administrative expenses” each place it appears and inserting in lieu thereof “a claim allowed under section 503(b) of this title”; and (3) striking out “have” and inserting in lieu thereof “has”. (b) Section 726(c) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “Administrative expenses” and inserting in lieu thereof “Claims allowed under section 503 of this title”; and (2) in paragraph (2), by striking out “Claims other than for administrative expenses” and inserting in lieu thereof “Allowed claims, other than claims allowed under section 503 of this title,”. Sec. 480. (a) Section 727(a) of title 11 of the United States Code is amended— (1) in paragraph (6)(C), by striking out “property” and inserting in lieu thereof “properly”; (2) in paragraph (7), by inserting “, under this title or under the Bankruptcy Act,” after “another case”; and (3) in paragraph (8), by inserting a comma after “371”. (b) Section 727(c)(1) of title 11 of the United States Code is amended by inserting “the granting of a” after “to”. (c) Section 727(e)(2)(A) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 481. (a) Section 728(c) of title 11 of the United States Code is amended by striking out the comma after “taxable income”. (b) Section 728(d)(2) of title 11 of the United States Code is amended by inserting “otherwise” after “is”, and by striking out “otherwise” after “partner”. Sec. 482. Section 741 of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by— (A) striking out “the debtor” the first time it appears and inserting in lieu thereof “a person”; (B) striking out “holds” and inserting in lieu thereof “has”; (C) striking out “the debtor” the second and third time it appears and inserting in lieu thereof “such person”; and (D) striking out “business as a stockbroker” and inserting in lieu thereof “such person”s business as a stockbroker,”, (2) in paragraph (2)(B), by— (A) striking out “holds” and inserting in lieu thereof “has”; (B) striking out “the debtor” the first place it appears and inserting in lieu thereof “a person”; and (C) by striking out “the debtor” and inserting in lieu thereof “such person” in clause (ii); (3) in paragraph (4)(A)(i), by striking out “and that is” and inserting in lieu thereof “from and that is the lawful”; (4) in paragraph (6)(A)(i), by— (A) inserting a comma after “petition”; and (B) inserting “any” after “except”; and (5) in paragraph (7), by amending such paragraph to read as follows: “(7) ‘securities contract’ means contract for the purchase, sale, or loan of a security, including an option for the purchase or sale of a security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any option entered into on a national securities exchange relating to foreign currencies, or the guarantee of any settlement of cash or securities by or to a securities clearing agency;”; and (6) in paragraph (8) by inserting “a final settlement payment,” after “settlement payment on account,”. Sec. 483. Section 745(a) of title 11 of the United States Code is amended by inserting “the debtor for” after “by”. Sec. 484. (a) Section 752(a) of title 11 of the United States Code is amended by— (1) striking out “customers allowed” and in lieu thereof “customers’ allowed”; (2) inserting “of the kind” after “except claims”; and (3) inserting “such” before “customer property”. (b) Section 752(b)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 485. Section 761 of title 11 of the United States Code is amended in paragraph (10), by striking out “and that is” in subparagraph (A)(viii) and inserting in lieu thereof “from and that is the lawful”. Sec. 486. Section 763(a) of title 11 of the United States Code is amended by— (1) inserting “the debtor for” after “by”; and (2) striking out “deemed to be” and inserting in lieu thereof “treated as”. Sec. 487. Section 764(a) of title 11 of the United States Code is amended by inserting “by the debtor” after “any transfer”. Sec. 488. Section 765(a) of title 11 of the United States Code is amended by striking out “notice under”, and inserting in lieu thereof “notice required by”. Sec. 489. Section 766(j)(2) of title 11 of the United States Code is amended by striking out “726(a)” and inserting in lieu thereof “726”. Sec. 490. Section 901(a) of title 11 of the United States Code is amended by inserting a comma after “1111(b)”. Sec. 491. Section 902(2) of title 11 of the United States Code is amended by striking out “title, legal or equitable, to real property against which has been levied a special assessment or special tax” and by inserting in lieu thereof “legal or equitable title to real property against which a special assessment or special tax has been levied”. Sec. 492. Section 903(2) of title 11 of the United States Code is amended by striking out “to” the first place it appears. Sec. 493. Chapter 9 of title 11 of the United States Code is 11 USC prec 921.. amended by striking out “SUBCHAPER II” and inserting in lieu thereof “SUBCHAPTER II”. Sec. 494. (a) Section 921(c) of title 11 of the United States Code is amended by— (1) striking out “an” and inserting in lieu thereof “any”; and (2) striking out the comma after “petition” the second place it appears, and after “faith”. (b) Section 921 of title 11 of the United States Code is amended by redesignating subsections (e) and (f) as subsections (d) and (e), respectively. (c) Section 921(a) is amended by striking out “109(c)” and inserting in lieu thereof “109(d)”. (d) Section 921(d) of title 11 of the United States Code, as so redesignated, is amended by striking out “subsection (d)” and inserting in lieu thereof “subsection (c)”. Sec. 495. Section 922(a)(1) of title 11 of the United States Code is amended by— (1) inserting “a” before “judicial”; and (2) inserting “action or” before “proceeding”. Sec. 496. Section 927(b) of title 11 of the United States Code is amended by inserting “of a plan under this chapter” after “confirmation”. Sec. 497. Section 943(b) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “to be taken”; and (2) by amending paragraph (5) to read as follows: “(5) except to the extent that the holder of a particular claim has agreed to a different treatment of such claim, the plan provides that on the effective date of the plan each holder of a claim of a kind specified in section 507(a)(1) of this title will receive on account of such claim cash equal to the allowed amount of such claim; and”. Sec. 498. Section 945(a) of title 11 of the United States Code is amended by striking out “execution” and inserting in lieu thereof “implementation”. Sec. 499. Section 1102(b)(1) of title 11 of the United States Code is amended by striking out “order for relief’ and inserting in lieu thereof “commencement of the case”. Sec. 500. (a) Section 1103(b) is amended by— (1) inserting “having an adverse interest” after “entity”; and (2) adding at the end thereof the following: “Representation of one or more creditors of the same class as represented by the committee shall not per se constitute the representation of an adverse interest/’. (b) Section 1103(c) of title 11 of the United States Code is amended— (1) in paragraph (3), by— (A) striking out “recommendations” and inserting in lieu thereof “determinations”; and (B) inserting “or rejections” after “acceptances”; and (2) in paragraph (4), by striking out “, if a trustee or examiner, as the case may be, has not previously been appointed under this chapter in the case”. Sec. 501. Section 1105 of title 11 of the United States Code is amended by striking out “estate, and” and inserting in lieu thereof “estate and of the”. Sec. 502. Section 1106(b) of title 11 of the United States Code is amended by inserting “, except to the extent that the court orders otherwise, before “any other”. Sec. 503. Section 1107(a) of title 11 of the United States Code is amended by inserting “serving in a case” after “on a trustee”. Sec. 504. Section 1108 of title 11 of the United States Code is amended by inserting “, on request of a party in interest and after notice and a hearing, after “court”. Sec. 505. (a) Section 1112(a) of title 11 of the United States Code is amended— (1) in paragraph (2), by striking out “is an involuntary case originally commenced under this chapter” and inserting in lieu thereof “originally was commenced as an involuntary case under this chapter”; and (2) in paragraph (3), by striking but “on other than” and inserting in lieu thereof “other than on”. (b) Section 1112(b) of title 11 of the United States Code is amended— (1) in paragraph (5), by inserting “a request made for” before “additional”; and (2) in paragraph (8), by striking out “and” and inserting in lieu thereof “or”. Sec. 506. (a) Section 1121(c)(3) of title 11 of the United States Code is amended by striking out “the claims or interests of which are” and inserting in lieu thereof “of claims or interests that is”. (b) Section 1121(d) of title 11 of the United States Code is amended by inserting “made within the respective periods specified in subsection (c) of this section” after “interest”. Sec. 507. (a) Section 1123(a) of title 11 of the United States Code is amended— (1) by striking out “A” and inserting in lieu thereof “Notwithstanding any otherwise applicable nonbankruptcy law, a”; (2) in paragraph (1), by— (A) inserting a comma after “classes of claims”; and (B) by striking out “507(a)(6) of this title” and inserting in lieu thereof “507(a)(7) of this title,”; (3) in paragraph (3), by striking out “shall”; (4) in paragraph (5), by striking out “execution” and inserting in lieu thereof “implementation”, and (5) in paragraph (5)(G), by inserting “of’ after “waiving”. (b) Section 1123(b)(2) of title 11 of the United States Code is amended by— (1) striking out “or rejection” and inserting in lieu thereof “, rejection, or assignment”; and (2) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”. Sec. 508. Section 1124 of title 11 of the United States Code is amended— (1) by amending paragraph ()(A) to read as follows: “(A) cures any such default that occurred before or after the commencement of the case under this title, other than a default of a kind specified in section 365(b)(2) of this title;”; Ante, p. 361. and (2) in paragraph (3)(B)(i), by striking out “and” and inserting in lieu thereof “or”. Sec. 509. (a) Section 1125(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “, but adequate information need not include such information about any other possible or proposed plan” after “plan”; (2) in paragraph (2)(B), by inserting “the” after “with”; and (3) in paragraph (2)(C), by inserting “or’ after “holders”. (b) Section 1125(d) of title 11 of the United States Code is amended by— (1) inserting “required under subsection (b) of this section” after “statement” the first place it appears; and (2) inserting or otherwise seek review of,” after “appeal from”. (c) Section 1125(e) of title 11 of the United States Code is amended by— (1) inserting “acceptance or rejection of a plan” after “solicits”; and (2) inserting “solicitation of acceptance or rejection of a plan or” after “governing”. Sec. 510. (a) Section 1126(b)(2) of title 11 of the United States Code is amended by striking out “1125(a)(1)” and inserting in lieu thereof “1125(a)”. (b) Section 1126(d) of title 11 of the United States Code is amended by inserting a comma after “such interests” the first place it appears. (c) Section 1126(f) of title 11 of the United States Code is amended by— (1) striking out “is deemed” and inserting in lieu thereof “, and each holder of a claim or interest of such class, are conclusively presumed”; (2) striking out “solicititation” and inserting in lieu thereof “solicitation”; and (3) striking out “interest” and inserting in lieu thereof “interests” (d) Section 1126(g) of title 11 of the United States Code is amended by striking out “any payment or compensation” and inserting in lieu thereof “receive or retain any property”. Sec. 511. (a) Section 1127(a) of title 11 of the United States Code is amended by— (1) inserting “of a plan” after “After the proponent”; and (2) inserting “of such plan” after “modification”. (b) Section 1127(b) of title 11 of the United States Code is amended by striking out “the court, after notice and a hearing, confirms such plan, as modified, under section 1129 of this title, and circumstances warrant such modification” and inserting in lieu thereof “circumstances warrant such modification and the court, after notice and a hearing, confirms such plan as modified, under section 1129 of this title”. Sec. 512. (a) Section 1129(a) of title 11 of the United States Code is amended— (1) in paragraph (1), by striking out “chapter.” and inserting in lieu thereof “title.”; (2) in paragraph (2), by striking out “chapter.” and inserting in lieu thereof “title.”; (3) by amending paragraph (4) to read as follows: “(4) Any payment made or to be made by the proponent, by the debtor, or by a person issuing securities or acquiring property under the plan, for services or for costs and expenses in or in connection with the case, or in connection with the plan and incident to the case, has been approved by, or is subject to the approval of, the court as reasonable;”; (4) in paragraph (5)(A)(ii), by striking out the period and inserting in lieu thereof “; and”; (5) in paragraph (5)(B), by striking out “The” and inserting in lieu thereof “the”; (6) in paragraph (6), by inserting “governmental” after “Any”; (7) in paragraph (7), by— (A) inserting “of each impaired class of claims or interests” in lieu of “each class”; and (B) striking out “creditor’s” in subparagraph (B) and inserting in lieu thereof “holder’s”; (8) in paragraph (8), by inserting “of claims or interests” after “each class”; and (9) by amending paragraph (10) to read as follows: “(10) If a class of claims is impaired under the plan, at least one class of claims that is impaired under the plan has accepted the plan, determined without including any acceptance of the plan by any insider.”. (b) Section 1129(b) of title 11 of the United States Code is amended— (1) in paragraph (2)(A), by striking out “lien” each place it appears and inserting in lieu thereof “liens”; (2) in paragraph (2)(B)(ii), by inserting “under the plan” after “retain”, and (3) in paragraph (2)(C)(i), by— (A) striking out “claim” and inserting in lieu thereof “interest”; and (B) striking out “and the value” and inserting in lieu thereof “or the value”. (c) Section 1129(d) of title 11 of the United States Code is amended by— (1) inserting “the application of” after “avoidance of” the second place it appears; and (2) adding at the end thereof the following new sentence: “In any hearing under this subsection, the governmental unit has the burden of proof on the issue of avoidance.”. Sec. 513. (a) Section 1141(a) of title 11 of the United States Code is amended by striking out “any creditor or equity security holder of, or general partner in,” and inserting in lieu thereof “any creditor, equity security holder, or general partner in”. (b) Section 1141(c) of title 11 of the United States Code is amended to read as follows: “(c) Except as provided in subsections (d)(2) and (d)(3) of this section and except as otherwise provided in the plan or in the order confirming the plan, after confirmation of a plan, the property dealt with by the plan is free and clear of all claims and interests of creditors, equity security holders, and of general partners in the debtor.”. Sec. 514. (a) The heading for section 1142 of title 11 of the United States Code is amended to read as follows: “§ 1142. Implementation of plan”. (b) The item relating to section 1142 in the table of sections for chapter 11 of title 11 of the United States Code is amended by striking out “Execution” and inserting in lieu thereof “Implementation”. (c) Section 1142(a) of title 11 of the United States Code is amended by striking out the comma after “plan” the second place it appears. (d) Section 1142(b) of title 11 of the United States Code is amended by inserting “a” after “by”. Sec. 515. Section 1144 of title 11 of the United States Code is amended by inserting “if and only” after “revoke such order”. Sec. 516. (a) Section 1145(a) of title 11 of the United States Code is amended— (1) in paragraph (3)(B)(i), by inserting “or 15(d)” after “13” and by inserting “or 78o(d)” after “78m”; (2) by amending paragraph (3)(B)(ii) to read as follows: “(ii) in compliance with the disclosure and reporting provision of such applicable section; and”; and (3) in paragraph (4), by striking out “stockholder” each place it appears and inserting in lieu thereof “stockbroker”. (b) Section 1145(b) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “and except with respect to ordinary trading transactions of an entity that is not an issuer” after “subsection”; (2) in paragraph (1)(C), by striking out “for” and inserting in lieu thereof “from”; (3) in paragraph (2)(a)(1), by striking out “combination” and inserting in lieu thereof “or combining”; and (4) in paragraph (2)(A)(ii), by striking out “among” and inserting in lieu thereof “from or to”. (c) Section 1145(d) of title 11 of the United States Code is amended by striking out “commercial”. Sec. 517. (a) Section 1146(c) of title 11 of the United States Code is amended by striking out “State or local”. (b) Section 1146(d)(1) of title 11 of the United States Code is amended by striking out “and” and inserting in lieu thereof “or”. Sec. 518. Section 1166 of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 519. Section 1168(b) of title 11 of the United States Code is amended by inserting a comma after “approval”. Sec. 520. Section 1169(c) of title 11 of the United States Code is amended by striking out “the Interstate Commerce Act (49 U.S.C. 1 et seq.)” and inserting in lieu thereof “subtitle IV of title 49”. Sec. 521. (a) Section 1170(a) of title 11 of the United States Code is amended by inserting “of all or a portion” after “the abandonment”. (b) Section 1170(c) of title 11 of the United States Code is amended by inserting a comma after “abandonment”. (c) Section U70(d)(2) of title 11 of the United States Code is amended by— (1) striking out “the abandonment of a railroad line” and inserting in lieu thereof “such abandonment”; and (2) striking out “termination” each place it appears and inserting in lieu thereof “suspension”. Sec. 522. Section 1171(b) of title 11 of the United States Code is amended by striking out “such” and inserting in lieu thereof “the same”. Sec. 523. Section 1173(a)(4) of title 11 of the United States Code is amended by striking out “compatible” and inserting in lieu thereof “consistent”. Sec. 524. Section 1301(c)(3) of title 11 of the United States Code is amended by inserting “continuation of’ after “by”. Sec. 525. (a) Section 1302(b) of title 11 of the United States Code as Ante, p. 356. amended by section 314 is amended by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively and by inserting after paragraph (2) the following new paragraph: “(3) dispose of, under regulations issued by the Director of the Administrative Office of the United States Courts, moneys received or to be received in a case under chapter XIII of the Bankruptcy Act; and”. (b) Section 1302(e) of title 11 of the United States Code is amended— (1) in paragraph (4), by striking out “fix” and inserting in lieu thereof “set for such individual”; (2) in paragraph (1)(A), by striking out “for such individual”; and (3) in paragraph (2)(A), by— (A) striking out “of” and inserting in lieu thereof “received by”; and (B) striking out “upon all payments” and inserting in lieu thereof “of all such payments made”. Sec. 526. Section 1304(b) of title 11 of the United States Code is amended by striking out the comma after “of the debtor”. Sec. 527. (a) Section 1307(b) of title 11 of the United States Code is amended by inserting a comma after “time”. (b) Section 1307(c) of title 11 of the United States Code as amended by section 315 is amended— Ante, p. 356. (1) in paragraph (5), as redesignated by inserting “a request made for” before “additional”; (2) in paragraph (7), as redesignated by striking out “and” after the semicolon and inserting in lieu thereof “or”; and (3) in paragraph (8), as redesignated by inserting “other than completion of payments under the plan” after ‘In the plan”. Sec. 528. (a) Section 1322(a)(2) of title 11 of the United States Code is amended by inserting a comma after “payments”. (b) Section 1322(b) of title 11 of the United States Code is amended— (1) in paragraph (2), by inserting “, or leave unaffected the rights of holders of any class of claims” before the semicolon; (2) in paragraph (4), by inserting “other” after “claim or any”; (3) in paragraph (7), by— (A) inserting “subject to section 365 of this title,” before “provide”; (B) striking out “or rejection” and inserting in lieu thereof rejection, or assignment”; and (C) striking out “under section 365 of this title” and inserting in lieu thereof “under such section”; and (4) in paragraph (8), by striking out “any”. Sec. 529. Section 1324 of title 11 of the United States Code is amended by striking out “the” the second place it appears. Sec. 530. Section 1325(a)(1) of title 11 of the United States Code is amended by inserting “the” before “other”. Sec. 531. Section 1326(b)(2) of title 11 of the United States Code as amended by section 318 is amended by inserting “of this title” after Ante, p. 357. “1302(d)”. Sec. 532. Section 1328(e) of title 11 of the United States Code is amended— (1) in paragraph (1), by inserting “by the debtor” after “obtained”; and (2) in paragraph (2), by striking out “knowledge of such fraud came to the requesting party” and inserting in lieu thereof “the requesting party did not know of such fraud until”. Sec. 533. Section 1329(a) of title 11 of the United States Code is amended— (1) by inserting “of the plan” after “confirmation”; (2) by striking out “a plan” and inserting in lieu thereof “such plan”; and (3) in paragraph (3), by striking out the comma. Sec. 534. Section 151302(a) of title 11 of the United States Code is amended by inserting “, or shall appoint a disinterested person to serve,” after “The United States trustee shall serve”. Subtitle J— Collective Bargaining Agreements Sec. 541. (a) Title 11 of the United States Code is amended by adding after section 1112 the following new section: “§ 1113. Rejection of collective bargaining agreements “(a) The debtor in possession, or the trustee if one has been appointed under the provisions of this chapter, other than a trustee 11 USC 1161. 45 USC 151. in a case covered by subchapter IV of this chapter and by title I of the Railway Labor Act, may assume or reject a collective bargaining agreement only in accordance with the provisions of this section. “(b) (1) Subsequent to filing a petition and prior to filing an application seeking rejection of a collective bargaining agreement, the debtor in possession or trustee (hereinafter in this section ‘trustee’ shall include a debtor in possession), shall— “(A) make a proposal to the authorized representative of the employees covered by such agreement, based on the most complete and reliable information available at the time of such proposal, which provides for those necessary modifications in the employees benefits and protections that are necessary to permit the reorganization of the debtor and assures that all creditors, the debtor and all of the affected parties are treated fairly and equitably; and “(B) provide, subject to subsection (d)(3), the representative of the employees with such relevant information as is necessary to evaluate the proposal. “(2) During the period beginning on the date of the making of a proposal provided for in paragraph (1) and ending on the date of the hearing provided for in subsection (d)(1), the trustee shall meet, at reasonable times, with the authorized representative to confer in good faith in attempting to reach mutually satisfactory modifications of such agreement. “(c) The court shall approve an application for rejection of a collective bargaining agreement only if the court finds that— “(1) the trustee has, prior to the hearing, made a proposal that fulfills the requirements of subsection (b)(1); “(2) the authorized representative of the employees has refused to accept such proposal without good cause; and “(3) the balance of the equities clearly favors rejection of such agreement. “(d) (1) Upon the filing of an application for rejection the court shall schedule a hearing to be held not later than fourteen days after the date of the filing of such application. All interested parties may appear and be heard at such hearing. Adequate notice shall be provided to such parties at least ten days before the date of such nearing. The court may extend the time for the commencement of such hearing for a period not exceeding seven days where the circumstances of the case, and the interests of justice require such extension, or for additional periods of time to which the trustee and representative agree. “(2) The court shall rule on such application for rejection within thirty days after the date of the commencement of the hearing. In the interests of justice, the court may extend such time for ruling for such additional period as the trustee and the employees’ representative may agree to. If the court does not rule on such application within thirty days after the date of the commencement of the hearing, or within such additional time as the trustee and the employees’ representative may agree to, the trustee may terminate or alter any provisions of the collective bargaining agreement pending the ruling of the court on such application. “(3) The court may enter such protective orders, consistent with Confidentiality. the need of the authorized representative of the employee to evaluate the trustee’s proposal and the application for rejection, as may be necessary to prevent disclosure of information provided to such representative where such disclosure could compromise the position of the debtor with respect to its competitors in the industry in which it is engaged. “(e) If during a period when the collective bargaining agreement continues in effect, and if essential to the continuation of the debtor’s business, or in order to avoid irreparable damage to the estate, the court, after notice and a hearing, may authorize the trustee to implement interim changes in the terms, conditions, wages, benefits, or work rules provided by a collective bargaining agreement. Any hearing under this paragraph shall be scheduled in accordance with the needs of the trustee. The implementation of such interim changes shall not render the application for rejection moot. “(f) No provision of this title shall be construed to permit a trustee to unilaterally terminate or alter any provisions of a collective bargaining agreement prior to compliance with the provisions of this section.”. (b) The table of sections for chapter 11 of title 11, United States Code, is amended by inserting after the item relating to section 1112 the following new item: “1113. Rejection of collective bargaining agreements.”. (c) The amendments made by this section shall become effective Effective date. 11 USC 1113 note. upon the date of enactment of this Act; provided that this section shall not apply to cases filed under title 11 of the United States Code which were commenced prior to the date of enactment of this section. Subtitle K— Miscellaneous Sec. 551. If any provision of this title or any amendment made by Provisions held invalid. 11 USC 101 note. this title, or the application thereof to any person or circumstance is held invalid, the provisions of every other part, and their application shall not be affected thereby. Sec. 552. Notwithstanding the provisions of section 8331(22) of title 5, United States Code, or any other provision of law, for purposes of section 8339(n) of title 5, United States Code, any individual appointed under section 34 of the Bankruptcy Act who served as a United States bankruptcy judge for Ante, p. 343. the district of Oregon or for the Central district of California until March 31, 1984, shall receive an annuity computed with respect to his service as a referee in bankruptcy and as a bankruptcy judge, and his military service (not exceeding five years) creditable under section 8332 of title 5, United States Code, by multiplying 2¼ per centum of his average annual pay by the years of that service. Sec. 553. (a) Except as otherwise provided in this section the amendments made by this title shall become effective to cases filed 90 days after the date of enactment of this Act. (b) The amendments made by section 426(b) shall become effective upon the date of enactment of this Act. (c) The amendments made by subtitle J, shall become effective as provided in section 541(c).Pub. L. 98–353 § 421(j)(7) · 98 Stat. 333
Added · 11 U.S.C. § 101(49)
Pub. L. 98–353, § 421(j)(7), added par. (49)
Source evidence
Code amendment note
Par. (49). Pub. L. 98–353, § 421(j)(7), added par. (49).Enacted provision · exact public law section
(7) by inserting after paragraph (48) the following: “(49) ‘United States’, when used in a geographical sense, includes all locations where the judicial jurisdiction of the United States extends, including territories and possessions of the United States;”.Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 201(1) · 100 Stat. 3088
Substituted · 11 U.S.C. § 101(14)
Pub. L. 99–554, § 201(1), substituted “governmental unit, and United States trustee” for “and governmental unit”
Source evidence
Code amendment note
Par. (14). Pub. L. 99–554, § 201(1), substituted “governmental unit, and United States trustee” for “and governmental unit”.Enacted provision · exact public law section
(1) in paragraph (14) by striking out “and governmental unit” and inserting in lieu thereof “governmental unit, and United States trustee” before the semicolon at the end thereof, andBankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 251(2) · 100 Stat. 3088
Added · 11 U.S.C. § 101(17); 11 U.S.C. § 101(18)
Pub. L. 99–554, § 251(2), (3), added pars. (17) and (18)
Redesignated · 11 U.S.C. § 101(17); 11 U.S.C. § 101(18)
Pub. L. 99–554, § 251(2), (3), redesignated former pars. (17) and (18) as (19) and (20), respectively
Source evidence
Code amendment note
Pars. (17), (18). Pub. L. 99–554, § 251(2), (3), added pars. (17) and (18) and redesignated former pars. (17) and (18) as (19) and (20), respectively.Enacted provision · exact public law section
(2) by redesignating paragraphs (17) through (49) as paragraphs (19) through (51), respectively, andBankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 251(1) · 100 Stat. 3088
Redesignated · 11 U.S.C. § 101(19)
Pub. L. 99–554, § 251(1), (2), redesignated former par. (17) as (19)
Redesignated · 11 U.S.C. § 101(19)
Pub. L. 99–554, § 251(1), (2), inserted “(except when such term appears in the term ‘family farmer’)”. Former par. (19) redesignated (21)
Source evidence
Code amendment note
Par. (19). Pub. L. 99–554, § 251(1), (2), redesignated former par. (17) as (19) and inserted “(except when such term appears in the term ‘family farmer’)”. Former par. (19) redesignated (21).Enacted provision · exact public law section
(1) in paragraph (17) by inserting “(except when such term appears in the term ‘family farmer’)” after “means”,Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 251(2) · 100 Stat. 3088
Redesignated · 11 U.S.C. § 101(20)(25)
Pub. L. 99–554, § 251(2), redesignated former pars. (18) to (23) as (20) to (25), respectively. Former pars. (24) and (25) redesignated (26) and (27), respectively
Source evidence
Code amendment note
Pars. (20) to (25). Pub. L. 99–554, § 251(2), redesignated former pars. (18) to (23) as (20) to (25), respectively. Former pars. (24) and (25) redesignated (26) and (27), respectively.Enacted provision · exact public law section
(2) by redesignating paragraphs (17) through (49) as paragraphs (19) through (51), respectively, andBankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 201(2) · 100 Stat. 3088
Inserted · 11 U.S.C. § 101(26)
Pub. L. 99–554, § 201(2), inserted “(but not a United States trustee while serving as a trustee in a case under this title)”
Source evidence
Code amendment note
Par. (26). Pub. L. 99–554, § 201(2), inserted “(but not a United States trustee while serving as a trustee in a case under this title)”.Enacted provision · exact public law section
(2) in paragraph (24) by inserting “(but not a United States trustee while serving as a trustee in a case under this title)” after “United States” the second place it appears.Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 251(2) · 100 Stat. 3088
Redesignated · 11 U.S.C. § 101(26)
Pub. L. 99–554, § 251(2), redesignated former par. (24) as (26). Former par. (26) redesignated (28)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 99–554, § 251(2), redesignated former par. (24) as (26). Former par. (26) redesignated (28).Enacted provision · exact public law section
(2) by redesignating paragraphs (17) through (49) as paragraphs (19) through (51), respectively, andBankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 251(2) · 100 Stat. 3088
Redesignated · 11 U.S.C. § 101(27)(42)
Pub. L. 99–554, § 251(2), redesignated former pars. (25) to (40) as (27) to (42), respectively. Former pars. (41) and (42) redesignated (43) and (44), respectively
Source evidence
Code amendment note
Pars. (27) to (42). Pub. L. 99–554, § 251(2), redesignated former pars. (25) to (40) as (27) to (42), respectively. Former pars. (41) and (42) redesignated (43) and (44), respectively.Enacted provision · exact public law section
(2) by redesignating paragraphs (17) through (49) as paragraphs (19) through (51), respectively, andBankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 251(2) · 100 Stat. 3088
Redesignated · 11 U.S.C. § 101(43)
Pub. L. 99–554, § 251(2), redesignated former par. (41) as (43). Former par. (43) redesignated (45)
Source evidence
Code amendment note
Par. (43). Pub. L. 99–554, § 251(2), redesignated former par. (41) as (43). Former par. (43) redesignated (45).Enacted provision · exact public law section
(2) by redesignating paragraphs (17) through (49) as paragraphs (19) through (51), respectively, andBankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 283(a)(1) · 100 Stat. 3088
Substituted · 11 U.S.C. § 101(43)(A)(xv)
Pub. L. 99–554, § 283(a)(1), substituted “security” for “secuity”
Source evidence
Code amendment note
Par. (43)(A)(xv). Pub. L. 99–554, § 283(a)(1), substituted “security” for “secuity”.Enacted provision · exact public law section
(1) Section 101(43)(A)(xv) of title 11, United States Code, as amended by section 251, is amended by striking out “secuity” and inserting in lieu thereof “security”.Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 251(2) · 100 Stat. 3088
Redesignated · 11 U.S.C. § 101(44)(50)
Pub. L. 99–554, § 251(2), redesignated former pars. (42) to (48) as (44) to (50), respectively. Former par. (49) redesignated (51)
Source evidence
Code amendment note
Pars. (44) to (50). Pub. L. 99–554, § 251(2), redesignated former pars. (42) to (48) as (44) to (50), respectively. Former par. (49) redesignated (51).Enacted provision · exact public law section
(2) by redesignating paragraphs (17) through (49) as paragraphs (19) through (51), respectively, andBankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 283(a)(2) · 100 Stat. 3088
Substituted · 11 U.S.C. § 101(51)
Pub. L. 99–554, § 283(a)(2), substituted a period for the semicolon at the end thereof
Source evidence
Code amendment note
Par. (51). Pub. L. 99–554, § 283(a)(2), substituted a period for the semicolon at the end thereof.Enacted provision · exact public law section
(2) Section 101(51) of title 11, United States Code, as amended by section 251, is amended by striking out the semicolon at the end thereof and inserting in lieu thereof a period.Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 251(2) · 100 Stat. 3088
Redesignated · 11 U.S.C. § 101(51)
Pub. L. 99–554, § 251(2), redesignated former par. (49) as (51)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 99–554, § 251(2), redesignated former par. (49) as (51).Enacted provision · exact public law section
(2) by redesignating paragraphs (17) through (49) as paragraphs (19) through (51), respectively, andPub. L. 100–506 § 1(a) · 102 Stat. 2538
Added · 11 U.S.C. § 101(52); 11 U.S.C. § 101(53)
Pub. L. 100–506 added pars. (52) and (53)
Source evidence
Code amendment note
Pars. (52), (53). Pub. L. 100–506 added pars. (52) and (53).Enacted provision · exact public law section
(a) Definition.— Section 101 of title 11, United States Code, is amended— (1) in paragraph (50) by striking “and” at the end, and (2) in paragraph (51) by striking the period at the end and inserting in lieu thereof a semicolon, and (3) by adding at the end the following: “(52) ‘intellectual property’ means— “(A) trade secret; “(B) invention, process, design, or plant protected under title 35; “(C) patent application; “(D) plant variety, “(E) work of authorship protected under title 17; or “(F) mask work protected under chapter 9 of title 17; to the extent protected by applicable nonbankruptcy law; and “(53) ‘mask work’ has the meaning given it in section 901(a)(2) of title 17.”.Pub. L. 100–597 § 1 · 102 Stat. 3028
Inserted · 11 U.S.C. § 101(31)
Pub. L. 100–597 inserted “and a municipality” after “partnership” in subpar. (A)
Added · 11 U.S.C. § 101(31)
Pub. L. 100–597 added subpar. (C)
Source evidence
Code amendment note
Par. (31). Pub. L. 100–597 inserted “and a municipality” after “partnership” in subpar. (A) and added subpar. (C).Enacted provision · exact public law section
SECTION 1. DEFINITION OF MUNICIPALITY. Section 101(31) of title 11, United States Code, is amended— (1) in subparagraph (A)— (A) by inserting “and a municipality” after partnership”; and (B) in clause (ii) by striking “and” at the end; (2) in subparagraph (B)(ii) by adding “and” at the end; and (3) by adding at the end the following: “(C) with reference to a municipality, financial condition such that the municipality is— “(i) generally not paying its debts as they become due unless such debts are the subject of a bona fide dispute; or “(ii) unable to pay its debts as they become due;”.Pub. L. 101–311 § 201(1) · 104 Stat. 267
Inserted · 11 U.S.C. § 101(24)
Pub. L. 101–311, § 201(1), inserted “as defined in section 761(8) of this title, or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade,” after “transfer of commodity,” and “, including, but not limited to, a repurchase transaction, reverse repurchase transaction, consignment, lease, swap, hedge transaction, deposit, loan, option, allocated transaction, unallocated transaction, or any combination thereof or option thereon” after “entered into”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 201(1), inserted “as defined in section 761(8) of this title, or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade,” after “transfer of commodity,” and “, including, but not limited to, a repurchase transaction, reverse repurchase transaction, consignment, lease, swap, hedge transaction, deposit, loan, option, allocated transaction, unallocated transaction, or any combination thereof or option thereon” after “entered into”.Enacted provision · exact public law section
(1) in paragraph (24)— (A) by inserting “as defined in section 761(8) of this title, or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade,” after “transfer of a commodity,”, and (B) by inserting “,including, but not limited to, a repurchase transaction, reverse repurchase transaction, consignment, lease, swap, hedge transaction, deposit, loan, option, allocated transaction, unallocated transaction, or any combination thereof or option thereon” after “entered into”;Pub. L. 101–311 § 201(2) · 104 Stat. 267
Substituted · 11 U.S.C. § 101(25)
Pub. L. 101–311, § 201(2), substituted “a commodity, as defined in section 761(8) of this title, or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade” for “commodities”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 201(2), substituted “a commodity, as defined in section 761(8) of this title, or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade” for “commodities”.Enacted provision · exact public law section
(2) in paragraph (25) by striking out “commodities” and inserting “a commodity, as defined in section 761(8) of this title, or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade”;Pub. L. 101–311 § 201(4) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(34)
Pub. L. 101–311, § 201(4), added par. (34). Former par. (34) redesignated (36)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 201(4), added par. (34). Former par. (34) redesignated (36).Enacted provision · exact public law section
(4) by inserting after paragraph (33) the following: “(34) ‘margin payment’ means, for purposes of the forward contract provisions of this title, payment or deposit of cash, a security or other property, that is commonly known in the forward contract trade as original margin, initial margin, maintenance margin, or variation margin, including mark-to-market payments, or variation payments; and “(35) ‘settlement payment’ means, for purposes of the forward contract provisions of this title, a preliminary settlement payment, a partial settlement payment, an interim settlement payment, a settlement payment on account, a final settlement payment, a net settlement payment, or any other similar payment commonly used in the forward contract trade;”.Pub. L. 101–311 § 201(4) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(35)
Pub. L. 101–311, § 201(4), added par. (35). Former par. (35) redesignated (37)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 201(4), added par. (35). Former par. (35) redesignated (37).Enacted provision · exact public law section
(4) by inserting after paragraph (33) the following: “(34) ‘margin payment’ means, for purposes of the forward contract provisions of this title, payment or deposit of cash, a security or other property, that is commonly known in the forward contract trade as original margin, initial margin, maintenance margin, or variation margin, including mark-to-market payments, or variation payments; and “(35) ‘settlement payment’ means, for purposes of the forward contract provisions of this title, a preliminary settlement payment, a partial settlement payment, an interim settlement payment, a settlement payment on account, a final settlement payment, a net settlement payment, or any other similar payment commonly used in the forward contract trade;”.Pub. L. 101–311 § 201(3) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(36)
Pub. L. 101–311, § 201(3), redesignated par. (34) as (36). Former par. (36) redesignated (38)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 201(3), redesignated par. (34) as (36). Former par. (36) redesignated (38).Enacted provision · exact public law section
(3) by redesignating paragraphs (34) through (55), as paragraphs (36) through (57), respectively; andPub. L. 101–311 § 201(3) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(37)(48)
Pub. L. 101–311, § 201(3), redesignated pars. (35) to (46) as (37) to (48), respectively. Former pars. (47) and (48) redesignated (49) and (50), respectively
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 201(3), redesignated pars. (35) to (46) as (37) to (48), respectively. Former pars. (47) and (48) redesignated (49) and (50), respectively.Enacted provision · exact public law section
(3) by redesignating paragraphs (34) through (55), as paragraphs (36) through (57), respectively; andPub. L. 101–311 § 201(3) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(49); 11 U.S.C. § 101(50)
Pub. L. 101–311, § 201(3), redesignated pars. (47) and (48) as (49) and (50), respectively. Former pars. (49) and (50) redesignated (51) and (52), respectively
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 201(3), redesignated pars. (47) and (48) as (49) and (50), respectively. Former pars. (49) and (50) redesignated (51) and (52), respectively.Enacted provision · exact public law section
(3) by redesignating paragraphs (34) through (55), as paragraphs (36) through (57), respectively; andPub. L. 101–311 § 101(2) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(49); 11 U.S.C. § 101(50)
Pub. L. 101–311, § 101(2), added pars. (49) and (50). Former pars. (49) and (50) redesignated (51) and (52), respectively
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 101(2), added pars. (49) and (50). Former pars. (49) and (50) redesignated (51) and (52), respectively.Enacted provision · exact public law section
(2) inserting after paragraph (48) the following: “(49) ‘swap agreement’ means— “(A) an agreement (including terms and conditions incorporated by reference therein) which is a rate swap agreement, basis swap, forward rate agreement, commodity swap, interest rate option, forward foreign exchange agreement, rate cap agreement, rate floor agreement, rate collar agreement, currency swap agreement, cross-currency rate swap agreement, currency option, any other similar agreement (including any option to enter into any of the foregoing); “(B) any combination of the foregoing; or “(C) a master agreement for any of the foregoing together with all supplements; “(50) ‘swap participant’ means an entity that, at any time before the filing of the petition, has an outstanding swap agreement with the debtor;”.Pub. L. 101–311 § 201(3) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(51)
Pub. L. 101–311, § 201(3), redesignated par. (49) as (51). Former par. (51) redesignated (53)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 201(3), redesignated par. (49) as (51). Former par. (51) redesignated (53).Enacted provision · exact public law section
(3) by redesignating paragraphs (34) through (55), as paragraphs (36) through (57), respectively; andPub. L. 101–311 § 101(1) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(51)
Pub. L. 101–311, § 101(1), redesignated par. (49) as (51). Former par. (51) redesignated (53)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 101(1), redesignated par. (49) as (51). Former par. (51) redesignated (53).Enacted provision · exact public law section
(1) redesignating paragraphs (49), (50), (51), (52), and (53) as paragraphs (51), (52), (53), (54), and (55), respectively; andPub. L. 101–311 § 201(3) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(52)
Pub. L. 101–311, § 201(3), redesignated par. (50) as (52). Former par. (52) redesignated (54) defining “transfer”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 201(3), redesignated par. (50) as (52). Former par. (52) redesignated (54) defining “transfer”.Enacted provision · exact public law section
(3) by redesignating paragraphs (34) through (55), as paragraphs (36) through (57), respectively; andPub. L. 101–311 § 101(1) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(52)
Pub. L. 101–311, § 101(1), redesignated par. (50) as (52). Former par. (52) redesignated (54)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 101(1), redesignated par. (50) as (52). Former par. (52) redesignated (54).Enacted provision · exact public law section
(1) redesignating paragraphs (49), (50), (51), (52), and (53) as paragraphs (51), (52), (53), (54), and (55), respectively; andPub. L. 101–311 § 201(3) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(53)
Pub. L. 101–311, § 201(3), redesignated par. (51) as (53). Former par. (53) redesignated (55) defining “United States”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 201(3), redesignated par. (51) as (53). Former par. (53) redesignated (55) defining “United States”.Enacted provision · exact public law section
(3) by redesignating paragraphs (34) through (55), as paragraphs (36) through (57), respectively; andPub. L. 101–311 § 101(1) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(53)
Pub. L. 101–311, § 101(1), redesignated par. (51) as (53). Former par. (53) redesignated (55)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 101(1), redesignated par. (51) as (53). Former par. (53) redesignated (55).Enacted provision · exact public law section
(1) redesignating paragraphs (49), (50), (51), (52), and (53) as paragraphs (51), (52), (53), (54), and (55), respectively; andPub. L. 101–311 § 201(3) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(54)
Pub. L. 101–311, § 201(3), redesignated par. (52) as (54) defining “transfer”. Former par. (54) redesignated (56) defining “intellectual property”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 201(3), redesignated par. (52) as (54) defining “transfer”. Former par. (54) redesignated (56) defining “intellectual property”.Enacted provision · exact public law section
(3) by redesignating paragraphs (34) through (55), as paragraphs (36) through (57), respectively; andPub. L. 101–311 § 101(1) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(54)
Pub. L. 101–311, § 101(1), redesignated par. (52) as (54)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 101(1), redesignated par. (52) as (54).Enacted provision · exact public law section
(1) redesignating paragraphs (49), (50), (51), (52), and (53) as paragraphs (51), (52), (53), (54), and (55), respectively; andPub. L. 101–311 § 201(3) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(55)
Pub. L. 101–311, § 201(3), redesignated par. (53) as (55) defining “United States”. Former par. (55) redesignated (57) defining “mask work”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 201(3), redesignated par. (53) as (55) defining “United States”. Former par. (55) redesignated (57) defining “mask work”.Enacted provision · exact public law section
(3) by redesignating paragraphs (34) through (55), as paragraphs (36) through (57), respectively; andPub. L. 101–311 § 101(1) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(55)
Pub. L. 101–311, § 101(1), redesignated par. (53) as (55)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 101(1), redesignated par. (53) as (55).Enacted provision · exact public law section
(1) redesignating paragraphs (49), (50), (51), (52), and (53) as paragraphs (51), (52), (53), (54), and (55), respectively; andPub. L. 101–311 § 201(3) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(56)
Pub. L. 101–311, § 201(3), redesignated par. (54) as (56) defining “intellectual property”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 201(3), redesignated par. (54) as (56) defining “intellectual property”.Enacted provision · exact public law section
(3) by redesignating paragraphs (34) through (55), as paragraphs (36) through (57), respectively; andPub. L. 101–311 § 201(3) · 104 Stat. 267
Redesignated · 11 U.S.C. § 101(57)
Pub. L. 101–311, § 201(3), redesignated par. (55) as (57) defining “mask work”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 101–311, § 201(3), redesignated par. (55) as (57) defining “mask work”.Enacted provision · exact public law section
(3) by redesignating paragraphs (34) through (55), as paragraphs (36) through (57), respectively; andComprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(4) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(3)
Pub. L. 101–647, § 2522(e)(4), added par. (3). Former par. (3) redesignated (4)
Source evidence
Code amendment note
Par. (3). Pub. L. 101–647, § 2522(e)(4), added par. (3). Former par. (3) redesignated (4).Enacted provision · exact public law section
(4) by inserting after paragraph (2) the following: (3) ‘Federal depository institutions regulatory agency’ means— “(A) with respect to an insured depository institution (as defined in section 3(c)(2) of the Federal Deposit Insurance Act) for which no conservator or receiver has been appointed, the appropriate Federal banking agency (as defined in section 3(q) of such Act); “(B) with respect to an insured credit union (including an insured credit union for which the National Credit Union Administration has been appointed conservator or liquidating agent), the National Credit Union Administration; “(C) with respect to any insured depository institution for which the Resolution Trust Corporation has been appointed conservator or receiver, the Resolution Trust Corporation; and “(D) with respect to any insured depository institution for which the Federal Deposit Insurance Corporation has been appointed conservator or receiver, the Federal Deposit Insurance Corporation;”.Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(3) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(4)(23)
Pub. L. 101–647, § 2522(e)(3), redesignated pars. (3) to (22) as (4) to (23), respectively. Former par. (23) redesignated (24)
Source evidence
Code amendment note
Pars. (4) to (23). Pub. L. 101–647, § 2522(e)(3), redesignated pars. (3) to (22) as (4) to (23), respectively. Former par. (23) redesignated (24).Enacted provision · exact public law section
(3) by redesignating paragraphs (3) through (31) as paragraphs (4) through (32), respectively; andComprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(3) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(24)
Pub. L. 101–647, § 2522(e)(3), redesignated par. (23) as (24). Former par. (24) redesignated (25)
Source evidence
Code amendment note
Par. (24). Pub. L. 101–647, § 2522(e)(3), redesignated par. (23) as (24). Former par. (24) redesignated (25).Enacted provision · exact public law section
(3) by redesignating paragraphs (3) through (31) as paragraphs (4) through (32), respectively; andComprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(3) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(25)
Pub. L. 101–647, § 2522(e)(3), redesignated par. (24) as (25). Former par. (25) redesignated (26)
Source evidence
Code amendment note
Par. (25). Pub. L. 101–647, § 2522(e)(3), redesignated par. (24) as (25). Former par. (25) redesignated (26).Enacted provision · exact public law section
(3) by redesignating paragraphs (3) through (31) as paragraphs (4) through (32), respectively; andComprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(3) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(26)(32)
Pub. L. 101–647, § 2522(e)(3), redesignated pars. (25) to (31) as (26) to (32), respectively. Former par. (32) redesignated (36)
Source evidence
Code amendment note
Pars. (26) to (32). Pub. L. 101–647, § 2522(e)(3), redesignated pars. (25) to (31) as (26) to (32), respectively. Former par. (32) redesignated (36).Enacted provision · exact public law section
(3) by redesignating paragraphs (3) through (31) as paragraphs (4) through (32), respectively; andComprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(2) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(33)
Pub. L. 101–647, § 2522(e)(2), added par. (33). Former par. (33) redesignated (37)
Source evidence
Code amendment note
Par. (33). Pub. L. 101–647, § 2522(e)(2), added par. (33). Former par. (33) redesignated (37).Enacted provision · exact public law section
(2) by inserting before paragraph (36), as so redesignated, the following: “(33) ‘institution-affiliated party’— “(A) with respect to an insured depository institution (as defined in section 3(c)(2) of the Federal Deposit Insurance Act), has the meaning given it in section 3(u) of the Federal Deposit Insurance Act (12 U.S.C. 1813(u)); and “(B) with respect to an insured credit union, has the meaning given it in section 206(r) of the Federal Credit Union Act (12 U.S.C. 1786(r)); “(34) ‘insured credit union’ has the meaning given it in section 101(7) of the Federal Credit Union Act (12 U.S.C. 1752(7)); “(35) ‘insured depository institution’— “(A) has the meaning given it in section 3(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)(2)); and “(B) includes an insured credit union (except in the case of paragraphs (3) and (33)(A) of this subsection);”;Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(2) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(34)
Pub. L. 101–647, § 2522(e)(2), added par. (34). Former par. (34) redesignated (38)
Source evidence
Code amendment note
Par. (34). Pub. L. 101–647, § 2522(e)(2), added par. (34). Former par. (34) redesignated (38).Enacted provision · exact public law section
(2) by inserting before paragraph (36), as so redesignated, the following: “(33) ‘institution-affiliated party’— “(A) with respect to an insured depository institution (as defined in section 3(c)(2) of the Federal Deposit Insurance Act), has the meaning given it in section 3(u) of the Federal Deposit Insurance Act (12 U.S.C. 1813(u)); and “(B) with respect to an insured credit union, has the meaning given it in section 206(r) of the Federal Credit Union Act (12 U.S.C. 1786(r)); “(34) ‘insured credit union’ has the meaning given it in section 101(7) of the Federal Credit Union Act (12 U.S.C. 1752(7)); “(35) ‘insured depository institution’— “(A) has the meaning given it in section 3(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)(2)); and “(B) includes an insured credit union (except in the case of paragraphs (3) and (33)(A) of this subsection);”;Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(2) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(35)
Pub. L. 101–647, § 2522(e)(2), added par. (35). Former par. (35) redesignated (39)
Source evidence
Code amendment note
Par. (35). Pub. L. 101–647, § 2522(e)(2), added par. (35). Former par. (35) redesignated (39).Enacted provision · exact public law section
(2) by inserting before paragraph (36), as so redesignated, the following: “(33) ‘institution-affiliated party’— “(A) with respect to an insured depository institution (as defined in section 3(c)(2) of the Federal Deposit Insurance Act), has the meaning given it in section 3(u) of the Federal Deposit Insurance Act (12 U.S.C. 1813(u)); and “(B) with respect to an insured credit union, has the meaning given it in section 206(r) of the Federal Credit Union Act (12 U.S.C. 1786(r)); “(34) ‘insured credit union’ has the meaning given it in section 101(7) of the Federal Credit Union Act (12 U.S.C. 1752(7)); “(35) ‘insured depository institution’— “(A) has the meaning given it in section 3(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)(2)); and “(B) includes an insured credit union (except in the case of paragraphs (3) and (33)(A) of this subsection);”;Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(1) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(36)
Pub. L. 101–647, § 2522(e)(1), redesignated par. (32) as (36). Former par. (36) redesignated (40)
Source evidence
Code amendment note
Par. (36). Pub. L. 101–647, § 2522(e)(1), redesignated par. (32) as (36). Former par. (36) redesignated (40).Enacted provision · exact public law section
(1) by redesignating paragraphs (32) through (53) as paragraphs (36) through (57), respectively;Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(1) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(37)(48)
Pub. L. 101–647, § 2522(e)(1), redesignated pars. (33) to (44) as (37) to (48), respectively. Former pars. (45) to (48) redesignated (49) to (52), respectively
Source evidence
Code amendment note
Pars. (37) to (48). Pub. L. 101–647, § 2522(e)(1), redesignated pars. (33) to (44) as (37) to (48), respectively. Former pars. (45) to (48) redesignated (49) to (52), respectively.Enacted provision · exact public law section
(1) by redesignating paragraphs (32) through (53) as paragraphs (36) through (57), respectively;Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(1) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(49); 11 U.S.C. § 101(50)
Pub. L. 101–647, § 2522(e)(1), redesignated pars. (45) and (46) as (49) and (50), respectively. Former pars. (49) and (50) redesignated (53) and (54) defining “stockbroker”, respectively
Source evidence
Code amendment note
Pars. (49), (50). Pub. L. 101–647, § 2522(e)(1), redesignated pars. (45) and (46) as (49) and (50), respectively. Former pars. (49) and (50) redesignated (53) and (54) defining “stockbroker”, respectively.Enacted provision · exact public law section
(1) by redesignating paragraphs (32) through (53) as paragraphs (36) through (57), respectively;Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(1) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(51)
Pub. L. 101–647, § 2522(e)(1), redesignated par. (47) as (51). Former par. (51) redesignated (55) defining “swap agreement”
Source evidence
Code amendment note
Par. (51). Pub. L. 101–647, § 2522(e)(1), redesignated par. (47) as (51). Former par. (51) redesignated (55) defining “swap agreement”.Enacted provision · exact public law section
(1) by redesignating paragraphs (32) through (53) as paragraphs (36) through (57), respectively;Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(1) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(52)
Pub. L. 101–647, § 2522(e)(1), redesignated par. (48) as (52). Former par. (52) redesignated (56) defining “swap participant”
Source evidence
Code amendment note
Par. (52). Pub. L. 101–647, § 2522(e)(1), redesignated par. (48) as (52). Former par. (52) redesignated (56) defining “swap participant”.Enacted provision · exact public law section
(1) by redesignating paragraphs (32) through (53) as paragraphs (36) through (57), respectively;Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(1) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(53)
Pub. L. 101–647, § 2522(e)(1), redesignated par. (49) as (53). Former par. (53) redesignated (57) defining “timeshare plan”
Source evidence
Code amendment note
Par. (53). Pub. L. 101–647, § 2522(e)(1), redesignated par. (49) as (53). Former par. (53) redesignated (57) defining “timeshare plan”.Enacted provision · exact public law section
(1) by redesignating paragraphs (32) through (53) as paragraphs (36) through (57), respectively;Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(1) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(54)
Pub. L. 101–647, § 2522(e)(1), redesignated par. (50) as (54) defining “stockbroker”
Source evidence
Code amendment note
Par. (54). Pub. L. 101–647, § 2522(e)(1), redesignated par. (50) as (54) defining “stockbroker”.Enacted provision · exact public law section
(1) by redesignating paragraphs (32) through (53) as paragraphs (36) through (57), respectively;Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(1) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(55)
Pub. L. 101–647, § 2522(e)(1), redesignated par. (51) as (55) defining “swap agreement”
Source evidence
Code amendment note
Par. (55). Pub. L. 101–647, § 2522(e)(1), redesignated par. (51) as (55) defining “swap agreement”.Enacted provision · exact public law section
(1) by redesignating paragraphs (32) through (53) as paragraphs (36) through (57), respectively;Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(1) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(56)
Pub. L. 101–647, § 2522(e)(1), redesignated par. (52) as (56) defining “swap participant”
Source evidence
Code amendment note
Par. (56). Pub. L. 101–647, § 2522(e)(1), redesignated par. (52) as (56) defining “swap participant”.Enacted provision · exact public law section
(1) by redesignating paragraphs (32) through (53) as paragraphs (36) through (57), respectively;Comprehensive Thrift and Bank Fraud Prosecution and Taxpayer Recovery Act of 1990
Pub. L. 101–647 § 2522(e)(1) · 104 Stat. 4789
Redesignated · 11 U.S.C. § 101(57)
Pub. L. 101–647, § 2522(e)(1), redesignated par. (53) as (57) defining “timeshare plan”
Source evidence
Code amendment note
Par. (57). Pub. L. 101–647, § 2522(e)(1), redesignated par. (53) as (57) defining “timeshare plan”.Enacted provision · exact public law section
(1) by redesignating paragraphs (32) through (53) as paragraphs (36) through (57), respectively;Energy Policy Act of 1992
Pub. L. 102–486 title XXX § 3017(a) · 106 Stat. 2776
Added · 11 U.S.C. § 101(21A)
Pub. L. 102–486 added par. (21A)
Source evidence
Code amendment note
Par. (21A). Pub. L. 102–486 added par. (21A).Enacted provision · exact public law section
(a) Definition.— Section 101 of title 11, United States Code, is amended by inserting after paragraph (21) the following: “(21A) ‘farmout agreement’ means a written agreement in which— “(A) the owner of a right to drill, produce, or operate liquid or gaseous hydrocarbons on property agrees or has agreed to transfer or assign all or a part of such right to another entity; and “(B) such other entity (either directly or through its agents or its assigns), as consideration, agrees to perform drilling, reworking, recompleting, testing, or similar or related operations, to develop or produce liquid or gaseous hydrocarbons on the property;”.Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(a)(1) · 108 Stat. 4106
Redesignated · 11 U.S.C. § 101(3)
Pub. L. 103–394, § 501(a)(1), redesignated par. (3) as (21B)
Inserted · 11 U.S.C. § 101(3)
Pub. L. 103–394, § 501(a)(1), inserted it after par. (21A)
Source evidence
Code amendment note
Par. (3). Pub. L. 103–394, § 501(a)(1), redesignated par. (3) as (21B) and inserted it after par. (21A).Enacted provision · exact public law section
(1) by redesignating paragraph (3) as paragraph (21B) and transferring such paragraph so as to insert it after paragraph (21A),Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(b)(1)(A) · 108 Stat. 4106
Substituted · 11 U.S.C. § 101(6)
Pub. L. 103–394, § 501(b)(1)(A), substituted “section 761” for “section 761(9)” after “customer, as defined in”
Source evidence
Code amendment note
Par. (6). Pub. L. 103–394, § 501(b)(1)(A), substituted “section 761” for “section 761(9)” after “customer, as defined in”.Enacted provision · exact public law section
(A) in paragraph (6) by striking “section 761(9)” and inserting “section 761”,Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 304(a) · 108 Stat. 4106
Added · 11 U.S.C. § 101(12A)
Pub. L. 103–394, § 304(a), added par. (12A)
Source evidence
Code amendment note
Par. (12A). Pub. L. 103–394, § 304(a), added par. (12A).Enacted provision · exact public law section
(a) Definition.— Section 101 of title 11, United States Code, is amended by inserting after paragraph (12) the following: “(12A) ‘debt for child support’ means a debt of a kind specified in section 523(a)(5) of this title for maintenance or support of a child of the debtor,”.Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(a)(1) · 108 Stat. 4106
Redesignated · 11 U.S.C. § 101(21B)
Pub. L. 103–394, § 501(a)(1), redesignated par. (3) as (21B)
Source evidence
Code amendment note
Par. (21B). Pub. L. 103–394, § 501(a)(1), redesignated par. (3) as (21B).Enacted provision · exact public law section
(1) by redesignating paragraph (3) as paragraph (21B) and transferring such paragraph so as to insert it after paragraph (21A),Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(b)(1)(B) · 108 Stat. 4106
Substituted · 11 U.S.C. § 101(22)
Pub. L. 103–394, § 501(b)(1)(B), substituted “section 741” for “section 741(7)”
Source evidence
Code amendment note
Par. (22). Pub. L. 103–394, § 501(b)(1)(B), substituted “section 741” for “section 741(7)”.Enacted provision · exact public law section
(B) in paragraph (22) by striking “section 741(7)” and inserting “section 741”,Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(d)(1)(A)(i) · 108 Stat. 4106
Struck · 11 U.S.C. § 101(33)(A)
Pub. L. 103–394, § 501(d)(1)(A)(i), struck out “(12 U.S.C. 1813(u))” after “section 3(u) of the Federal Deposit Insurance Act”
Source evidence
Code amendment note
Par. (33)(A). Pub. L. 103–394, § 501(d)(1)(A)(i), struck out “(12 U.S.C. 1813(u))” after “section 3(u) of the Federal Deposit Insurance Act”.Enacted provision · exact public law section
(i) in subparagraph (A) by striking “(12 U.S.C. 1813(u))”, andBankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(d)(1)(A)(ii) · 108 Stat. 4106
Struck · 11 U.S.C. § 101(33)(B)
Pub. L. 103–394, § 501(d)(1)(A)(ii), struck out “(12 U.S.C. 1786(r))” after “Act”
Source evidence
Code amendment note
Par. (33)(B). Pub. L. 103–394, § 501(d)(1)(A)(ii), struck out “(12 U.S.C. 1786(r))” after “Act”.Enacted provision · exact public law section
(ii) in subparagraph (B) by striking “(12 U.S.C. 1786(r))”,Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(d)(1)(B) · 108 Stat. 4106
Struck · 11 U.S.C. § 101(34)
Pub. L. 103–394, § 501(d)(1)(B), struck out “(12 U.S.C. 1752(7))” after “Act”
Source evidence
Code amendment note
Par. (34). Pub. L. 103–394, § 501(d)(1)(B), struck out “(12 U.S.C. 1752(7))” after “Act”.Enacted provision · exact public law section
(B) in paragraph (34) by striking “(12 U.S.C. 1752(7))”,Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(b)(1)(C) · 108 Stat. 4106
Struck · 11 U.S.C. § 101(35)
Pub. L. 103–394, § 501(b)(1)(C), (d)(1)(C), struck out “(12 U.S.C. 1813(c)(2))” after “Act” in subpar. (A)
Substituted · 11 U.S.C. § 101(35)
Pub. L. 103–394, § 501(b)(1)(C), (d)(1)(C), substituted “paragraphs (21B)” for “paragraphs (3)” in subpar. (B)
Source evidence
Code amendment note
Par. (35). Pub. L. 103–394, § 501(b)(1)(C), (d)(1)(C), struck out “(12 U.S.C. 1813(c)(2))” after “Act” in subpar. (A) and substituted “paragraphs (21B)” for “paragraphs (3)” in subpar. (B).Enacted provision · exact public law section
(C) in paragraph (35)(B) by striking “paragraphs (3)” and inserting “paragraphs (21B)”,Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(a)(4) · 108 Stat. 4106
Redesignated · 11 U.S.C. § 101(35A)
Pub. L. 103–394, § 501(a)(4), redesignated par. (56) defining “intellectual property” as (35A)
Inserted · 11 U.S.C. § 101(35A)
Pub. L. 103–394, § 501(a)(4), inserted it after par. (35)
Source evidence
Code amendment note
Par. (35A). Pub. L. 103–394, § 501(a)(4), redesignated par. (56) defining “intellectual property” as (35A) and inserted it after par. (35).Enacted provision · exact public law section
(4) by redesignating paragraph (56) as in effect immediately before the enactment of Public Law 101–647, as paragraph (35A) and transferring such paragraph so as to insert it after paragraph (35), andBankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(a)(5) · 108 Stat. 4106
Redesignated · 11 U.S.C. § 101(39)
Pub. L. 103–394, § 501(a)(5), redesignated par. (57) defining “mask work” as (39)
Redesignated · 11 U.S.C. § 101(39)
Pub. L. 103–394, § 501(a)(5), inserted it after par. (38). Former par. (39) redesignated (51A)
Source evidence
Code amendment note
Par. (39). Pub. L. 103–394, § 501(a)(5), redesignated par. (57) defining “mask work” as (39) and inserted it after par. (38). Former par. (39) redesignated (51A).Enacted provision · exact public law section
(5) by redesignating paragraph (57), as in effect immediately before the enactment of Public Law 101–647, as paragraph (39) and transferring such paragraph so as to insert it after paragraph (38).Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 106 · 108 Stat. 4106
Amended · 11 U.S.C. § 101(41)
Pub. L. 103–394, § 106, amended par. (41) generally. Prior to amendment, par. (41) read as follows: “ ‘person’ includes individual, partnership, and corporation, but does not include governmental unit, Provided, however, That any governmental unit that acquires an asset from a person as a result of operation of a loan guarantee agreement, or as receiver or liquidating agent of a person, will be considered a person for purposes of section 1102 of this title.”
Source evidence
Code amendment note
Par. (41). Pub. L. 103–394, § 106, amended par. (41) generally. Prior to amendment, par. (41) read as follows: “ ‘person’ includes individual, partnership, and corporation, but does not include governmental unit, Provided, however, That any governmental unit that acquires an asset from a person as a result of operation of a loan guarantee agreement, or as receiver or liquidating agent of a person, will be considered a person for purposes of section 1102 of this title.”Enacted provision · exact public law section
SEC. 106. DEFINITION RELATING TO ELIGIBILITY TO SERVE ON CHAPTER 11 COMMITTEES. Section 101(41) of title 11, United States Code, is amended to read as follows: “(41) ‘person’ includes individual, partnership, and corporation, but does not include governmental unit, except that a governmental unit that— “(A) acquires an asset from a person— “(i) as a result of the operation of a loan guarantee agreement; or “(ii) as receiver or liquidating agent of a person; “(B) is a guarantor of a pension benefit payable by or on behalf of the debtor or an affiliate of the debtor; or “(C) is the legal or beneficial owner of an asset of— “(i) an employee pension benefit plan that is a governmental plan, as defined in section 414(d) of the Internal Revenue Code of 1986; or “(ii) an eligible deferred compensation plan, as defined in section 457(b) of the Internal Revenue Code of 1986; shall be considered, for purposes of section 1102 of this title, to be a person with respect to such asset or such benefit;”.Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 208(a)(1) · 108 Stat. 4106
Added · 11 U.S.C. § 101(42A)
Pub. L. 103–394, § 208(a)(1), added par. (42A)
Source evidence
Code amendment note
Par. (42A). Pub. L. 103–394, § 208(a)(1), added par. (42A).Enacted provision · exact public law section
(1) by inserting after paragraph (42) the following: “(42A) ‘production payment’ means a term overriding royalty satisfiable in cash or in kind— “(A) contingent on the production of a liquid or gaseous hydrocarbon from particular real property; and “(B) from a specified volume, or a specified value, from the liquid or gaseous hydrocarbon produced from such property, and determined without regard to production costs;”, andBankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(d)(1)(D) · 108 Stat. 4106
Struck · 11 U.S.C. § 101(48)
Pub. L. 103–394, § 501(d)(1)(D), struck out “(15 U.S.C. 78q–1)” after “Act of 1934” and “(15 U.S.C. 78c(12))” after “such Act”
Source evidence
Code amendment note
Par. (48). Pub. L. 103–394, § 501(d)(1)(D), struck out “(15 U.S.C. 78q–1)” after “Act of 1934” and “(15 U.S.C. 78c(12))” after “such Act”.Enacted provision · exact public law section
(D) in paragraph (48)— (i) by striking “(15 U.S.C. 78q–1)”, and (ii) by striking “(15 U.S.C. 78c(12))”,Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(d)(1)(E)(i) · 108 Stat. 4106
Struck · 11 U.S.C. § 101(49)(A)(xii)
Pub. L. 103–394, § 501(d)(1)(E)(i), struck out “(15 U.S.C. 77a et seq.)” after “Act of 1933” and “(15 U.S.C. 77c(b))” after “such Act”
Source evidence
Code amendment note
Par. (49)(A)(xii). Pub. L. 103–394, § 501(d)(1)(E)(i), struck out “(15 U.S.C. 77a et seq.)” after “Act of 1933” and “(15 U.S.C. 77c(b))” after “such Act”.Enacted provision · exact public law section
(i) in subparagraph (A)(xii)— (I) by striking “(15 U.S.C. 77a et seq.)”, and (II) by striking “(15 U.S.C. 77c(b))”, andBankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(b)(1)(D) · 108 Stat. 4106
Substituted · 11 U.S.C. § 101(49)(B)
Pub. L. 103–394, § 501(b)(1)(D), (d)(1)(E)(ii), substituted “section 761” for “section 761(13)” in cl. (ii)
Struck · 11 U.S.C. § 101(49)(B)
Pub. L. 103–394, § 501(b)(1)(D), (d)(1)(E)(ii), struck out “(15 U.S.C. 77c(b))” after “Act of 1933” in cl. (vi)
Source evidence
Code amendment note
Par. (49)(B). Pub. L. 103–394, § 501(b)(1)(D), (d)(1)(E)(ii), substituted “section 761” for “section 761(13)” in cl. (ii) and struck out “(15 U.S.C. 77c(b))” after “Act of 1933” in cl. (vi).Enacted provision · exact public law section
(D) in paragraph (49)(B)(ii) by striking “section 761(13)” and inserting “section 761”, andBankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(a)(2) · 108 Stat. 4106
Redesignated · 11 U.S.C. § 101(51A)
Pub. L. 103–394, § 501(a)(2), redesignated par. (39) as (51A)
Inserted · 11 U.S.C. § 101(51A)
Pub. L. 103–394, § 501(a)(2), inserted it after par. (51)
Source evidence
Code amendment note
Par. (51A). Pub. L. 103–394, § 501(a)(2), redesignated par. (39) as (51A) and inserted it after par. (51).Enacted provision · exact public law section
(2) by redesignating paragraph (39) as paragraph (51A) and transferring such paragraph so as to insert it after paragraph (51),Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 218(a) · 108 Stat. 4106
Added · 11 U.S.C. § 101(51B)
Pub. L. 103–394, § 218(a), added par. (51B)
Source evidence
Code amendment note
Par. (51B). Pub. L. 103–394, § 218(a), added par. (51B).Enacted provision · exact public law section
(a) Definition.— Section 101 of title 11, United States Code, is amended by inserting after paragraph (51) the following: “(51B) ‘single asset real estate’ means real property constituting a single property or project, other than residential real property with fewer than 4 residential units, which generates substantially all of the gross income of a debtor and on which no substantial business is being conducted by a debtor other than the business of operating the real property and activities incidental thereto having aggregate noncontingent, liquidated secured debts in an amount no more than $4,000,000;”.Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 217(a) · 108 Stat. 4106
Added · 11 U.S.C. § 101(51C)
Pub. L. 103–394, § 217(a), added par. (51C)
Source evidence
Code amendment note
Par. (51C). Pub. L. 103–394, § 217(a), added par. (51C).Enacted provision · exact public law section
(a) Definition.— Section 101 of title 11, United States Code, is amended by inserting after paragraph (51) the following: “(51C) ‘small business’ means a person engaged in commercial or business activities (but does not include a person whose primary activity is the business of owning or operating real property and activities incidental thereto) whose aggregate noncontingent liquidated secured and unsecured debts as of the date of the petition do not exceed $2,000,000;”.Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(a)(3) · 108 Stat. 4106
Redesignated · 11 U.S.C. § 101(53A)
Pub. L. 103–394, § 501(a)(3), (b)(1)(E), redesignated par. (54) defining “stockbroker” as (53A)
Substituted · 11 U.S.C. § 101(53A)
Pub. L. 103–394, § 501(a)(3), (b)(1)(E), substituted “section 741” for “section 741(2)” in subpar. (A)
Source evidence
Code amendment note
Par. (53A). Pub. L. 103–394, § 501(a)(3), (b)(1)(E), redesignated par. (54) defining “stockbroker” as (53A) and substituted “section 741” for “section 741(2)” in subpar. (A).Enacted provision · exact public law section
(3) by redesignating paragraphs (54) through (57), as so redesignated by section 2522(e) of Public Law 101–647, as paragraphs (53A) through (53D), respectively,Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(a)(3) · 108 Stat. 4106
Redesignated · 11 U.S.C. § 101(53B)
Pub. L. 103–394, § 501(a)(3), redesignated par. (55) defining “swap agreement” as (53B)
Source evidence
Code amendment note
Par. (53B). Pub. L. 103–394, § 501(a)(3), redesignated par. (55) defining “swap agreement” as (53B).Enacted provision · exact public law section
(3) by redesignating paragraphs (54) through (57), as so redesignated by section 2522(e) of Public Law 101–647, as paragraphs (53A) through (53D), respectively,Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(a)(3) · 108 Stat. 4106
Redesignated · 11 U.S.C. § 101(53C)
Pub. L. 103–394, § 501(a)(3), redesignated par. (56) defining “swap participant” as (53C)
Source evidence
Code amendment note
Par. (53C). Pub. L. 103–394, § 501(a)(3), redesignated par. (56) defining “swap participant” as (53C).Enacted provision · exact public law section
(3) by redesignating paragraphs (54) through (57), as so redesignated by section 2522(e) of Public Law 101–647, as paragraphs (53A) through (53D), respectively,Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(a)(3) · 108 Stat. 4106
Redesignated · 11 U.S.C. § 101(53D)
Pub. L. 103–394, § 501(a)(3), (d)(1)(F), redesignated par. (57) defining “timeshare plan” as (53D)
Substituted · 11 U.S.C. § 101(53D)
Pub. L. 103–394, § 501(a)(3), (d)(1)(F), substituted semicolon for period at end
Source evidence
Code amendment note
Par. (53D). Pub. L. 103–394, § 501(a)(3), (d)(1)(F), redesignated par. (57) defining “timeshare plan” as (53D) and substituted semicolon for period at end.Enacted provision · exact public law section
(3) by redesignating paragraphs (54) through (57), as so redesignated by section 2522(e) of Public Law 101–647, as paragraphs (53A) through (53D), respectively,Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(a)(3) · 108 Stat. 4106
Redesignated · 11 U.S.C. § 101(54)
Pub. L. 103–394, § 501(a)(3), redesignated par. (54) defining “stockbroker” as (53A)
Source evidence
Code amendment note
Par. (54). Pub. L. 103–394, § 501(a)(3), redesignated par. (54) defining “stockbroker” as (53A).Enacted provision · exact public law section
(3) by redesignating paragraphs (54) through (57), as so redesignated by section 2522(e) of Public Law 101–647, as paragraphs (53A) through (53D), respectively,Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(a)(3) · 108 Stat. 4106
Redesignated · 11 U.S.C. § 101(55)
Pub. L. 103–394, § 501(a)(3), redesignated par. (55) defining “swap agreement” as (53B)
Source evidence
Code amendment note
Par. (55). Pub. L. 103–394, § 501(a)(3), redesignated par. (55) defining “swap agreement” as (53B).Enacted provision · exact public law section
(3) by redesignating paragraphs (54) through (57), as so redesignated by section 2522(e) of Public Law 101–647, as paragraphs (53A) through (53D), respectively,Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 215 · 108 Stat. 4106
Inserted · 11 U.S.C. § 101(55)
Pub. L. 103–394, § 215, inserted “spot foreign exchange agreement,” after “forward foreign exchange agreement,”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 103–394, § 215, inserted “spot foreign exchange agreement,” after “forward foreign exchange agreement,”.Enacted provision · exact public law section
SEC. 215. AMENDMENT TO DEFINITION OF SWAP AGREEMENT. Subparagraph (A) of the first paragraph (55) of section 101 of title 11, United States Code, is amended by inserting “spot foreign exchange agreement,” after “forward foreign exchange agreement,”.Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(a)(3) · 108 Stat. 4106
Redesignated · 11 U.S.C. § 101(56)
Pub. L. 103–394, § 501(a)(3), redesignated par. (56) defining “swap participant” as (53C)
Source evidence
Code amendment note
Par. (56). Pub. L. 103–394, § 501(a)(3), redesignated par. (56) defining “swap participant” as (53C).Enacted provision · exact public law section
(3) by redesignating paragraphs (54) through (57), as so redesignated by section 2522(e) of Public Law 101–647, as paragraphs (53A) through (53D), respectively,Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(a)(4) · 108 Stat. 4106
Redesignated · 11 U.S.C. § 101(56)
Pub. L. 103–394, § 501(a)(4), redesignated par. (56) defining “intellectual property” as (35A)
Inserted · 11 U.S.C. § 101(56)
Pub. L. 103–394, § 501(a)(4), inserted it after par. (35)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 103–394, § 501(a)(4), redesignated par. (56) defining “intellectual property” as (35A) and inserted it after par. (35).Enacted provision · exact public law section
(4) by redesignating paragraph (56) as in effect immediately before the enactment of Public Law 101–647, as paragraph (35A) and transferring such paragraph so as to insert it after paragraph (35), andBankruptcy Reform Act of 1994
Pub. L. 103–394 § 208(a)(2) · 108 Stat. 4106
Added · 11 U.S.C. § 101(56A)
Pub. L. 103–394, § 208(a)(2), added par. (56A)
Inserted · 11 U.S.C. § 101(56A)
Pub. L. 103–394, § 208(a)(2), inserted it after par. defining “swap participant”
Source evidence
Code amendment note
Par. (56A). Pub. L. 103–394, § 208(a)(2), added par. (56A) and inserted it after par. defining “swap participant”.Enacted provision · exact public law section
(2) by inserting after the first paragraph (56) the following: “(56A) ‘term overriding royalty’ means an interest in liquid or gaseous hydrocarbons in place or to be produced from particular real property that entitles the owner thereof to a share of production, or the value thereof, for a term limited by time, quantity, or value realized;”.Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(a)(3) · 108 Stat. 4106
Redesignated · 11 U.S.C. § 101(57)
Pub. L. 103–394, § 501(a)(3), redesignated par. (57) defining “timeshare plan” as (53D)
Source evidence
Code amendment note
Par. (57). Pub. L. 103–394, § 501(a)(3), redesignated par. (57) defining “timeshare plan” as (53D).Enacted provision · exact public law section
(3) by redesignating paragraphs (54) through (57), as so redesignated by section 2522(e) of Public Law 101–647, as paragraphs (53A) through (53D), respectively,Bankruptcy Reform Act of 1994
Pub. L. 103–394 § 501(a)(5) · 108 Stat. 4106
Redesignated · 11 U.S.C. § 101(57)
Pub. L. 103–394, § 501(a)(5), redesignated par. (57) defining “mask work” as (39)
Inserted · 11 U.S.C. § 101(57)
Pub. L. 103–394, § 501(a)(5), inserted it after par. (38)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 103–394, § 501(a)(5), redesignated par. (57) defining “mask work” as (39) and inserted it after par. (38).Enacted provision · exact public law section
(5) by redesignating paragraph (57), as in effect immediately before the enactment of Public Law 101–647, as paragraph (39) and transferring such paragraph so as to insert it after paragraph (38).Consolidated Appropriations Act, 2001
Pub. L. 106–554 § 1(a)(5)(tI)(s112)(c)(3) · 114 Stat. 2763
Amended · 11 U.S.C. § 101(22)
Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(3)], amended par. (22) generally. Prior to amendment par. (22) read as follows: “ ‘financial institution’ means a person that is a commercial or savings bank, industrial savings bank, savings and loan association, or trust company and, when any such person is acting as agent or custodian for a customer in connection with a securities contract, as defined in section 741 of this title, such customer;”
Source evidence
Code amendment note
Par. (22). Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(3)], amended par. (22) generally. Prior to amendment par. (22) read as follows: “ ‘financial institution’ means a person that is a commercial or savings bank, industrial savings bank, savings and loan association, or trust company and, when any such person is acting as agent or custodian for a customer in connection with a securities contract, as defined in section 741 of this title, such customer;”.Enacted provision · exact public law section
(5) H.R. 5660, as introduced on December 14, 2000.Consolidated Appropriations Act, 2001
Pub. L. 106–554 § 1(a)(5)(tI)(s112)(c)(4) · 114 Stat. 2763
Added · 11 U.S.C. § 101(54A)
Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(4)], added par. (54A)
Source evidence
Code amendment note
Par. (54A). Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(4)], added par. (54A).Enacted provision · exact public law section
(5) H.R. 5660, as introduced on December 14, 2000.Pub. L. 109–8 § 1201(1) · 119 Stat. 23
Substituted · 11 U.S.C. § 101
Pub. L. 109–8, § 1201(1), substituted “In this title the following definitions shall apply:” for “In this title—” in introductory provisions
Source evidence
Code amendment note
Pub. L. 109–8, § 1201(1), substituted “In this title the following definitions shall apply:” for “In this title—” in introductory provisions.Enacted provision · exact public law section
(1) by striking “In this title—” and inserting “In this title the following definitions shall apply:”;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(1); 11 U.S.C. § 101(2)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(1); 11 U.S.C. § 101(2)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (1), (2). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(3)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(3)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (3). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 226(a)(1) · 119 Stat. 23
Added · 11 U.S.C. § 101(3)
Pub. L. 109–8, § 226(a)(1), added par. (3)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 226(a)(1), added par. (3).Enacted provision · exact public law section
(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;” ;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(4)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(4)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (4). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(4A)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(4A)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (4A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 226(a)(2) · 119 Stat. 23
Added · 11 U.S.C. § 101(4A)
Pub. L. 109–8, § 226(a)(2), added par. (4A)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 226(a)(2), added par. (4A).Enacted provision · exact public law section
(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 case or proceeding on behalf of another or providing legal representation with respect to a case or proceeding under this title;” ; andPub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(5)(7)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(5)(7)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (5) to (7). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(7A); 11 U.S.C. § 101(7B)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(7A); 11 U.S.C. § 101(7B)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (7A), (7B). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1007(a)(1) · 119 Stat. 23
Added · 11 U.S.C. § 101(7A); 11 U.S.C. § 101(7B)
Pub. L. 109–8, § 1007(a)(1), added pars. (7A) and (7B)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 1007(a)(1), added pars. (7A) and (7B).Enacted provision · exact public law section
(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;” ; andPub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(8)(10)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(8)(10)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (8) to (10). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(10A)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(10A)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (10A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 102(b) · 119 Stat. 23
Added · 11 U.S.C. § 101(10A)
Pub. L. 109–8, § 102(b), added par. (10A)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 102(b), added par. (10A).Enacted provision · exact public law section
(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 6-month 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;” .Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(11); 11 U.S.C. § 101(12)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(11); 11 U.S.C. § 101(12)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (11), (12). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(8) · 119 Stat. 23
Substituted · 11 U.S.C. § 101(12A)
Pub. L. 109–8, § 1201(8), which directed the substitution of a period for a semicolon at end, could not be executed because par. (12A) ended in a period after amendment by Pub. L. 109–8, § 226(a)(3). See below
Source evidence
Code amendment note
Par. (12A). Pub. L. 109–8, § 1201(8), which directed the substitution of a period for a semicolon at end, could not be executed because par. (12A) ended in a period after amendment by Pub. L. 109–8, § 226(a)(3). See below.Enacted provision · exact public law section
(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.Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(12A)
Pub. L. 109–8, § 1201(2), inserted “The term” after par. designation
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 1201(2), inserted “The term” after par. designation.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 title I § 102(b) · 119 Stat. 23
Added · 11 U.S.C. § 101(12A)
Pub. L. 109–8, §§ 211(1), 226(a)(3), added par. (12A)
Struck · 11 U.S.C. § 101(12A)
Pub. L. 109–8, §§ 211(1), 226(a)(3), struck out former par. (12A) which read as follows: “ ‘debt for child support’ means a debt of a kind specified in section 523(a)(5) of this title for maintenance or support of a child of the debtor;”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, §§ 211(1), 226(a)(3), added par. (12A) and struck out former par. (12A) which read as follows: “ ‘debt for child support’ means a debt of a kind specified in section 523(a)(5) of this title for maintenance or support of a child of the debtor;”.Enacted provision · exact public law section
(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 6-month 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;” .Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(13)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(13)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (13). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(13A)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(13A)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (13A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 306(c)(1) · 119 Stat. 23
Added · 11 U.S.C. § 101(13A)
Pub. L. 109–8, § 306(c)(1), added par. (13A)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 306(c)(1), added par. (13A).Enacted provision · exact public law section
(1) by inserting after paragraph (13) the following: “(13A) ‘debtor’s principal residence’— “(A) means a residential structure, including incidental property, without regard to whether that structure is attached to real property; and “(B) includes an individual condominium or cooperative unit, a mobile or manufactured home, or trailer;” ; andPub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(14)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(14)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (14). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 414 · 119 Stat. 23
Amended · 11 U.S.C. § 101(14)
Pub. L. 109–8, § 414, amended par. (14) generally. Prior to amendment, par. (14) consisted of subpars. (A) to (E) defining “disinterested person”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 414, amended par. (14) generally. Prior to amendment, par. (14) consisted of subpars. (A) to (E) defining “disinterested person”.Enacted provision · exact public law section
SEC. 414. DEFINITION OF DISINTERESTED PERSON. Section 101(14) of title 11, United States Code, is amended to read as follows: “(14) ‘disinterested person’ means a person that— “(A) is not a creditor, an equity security holder, or an insider; “(B) is not and was not, within 2 years before the date of the filing of the petition, a director, officer, or employee of the debtor; and “(C) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, or for any other reason;” .Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(14A)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(14A)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (14A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 211(2) · 119 Stat. 23
Added · 11 U.S.C. § 101(14A)
Pub. L. 109–8, § 211(2), added par. (14A)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 211(2), added par. (14A).Enacted provision · exact public law section
(2) by inserting after paragraph (14) the following: “(14A) ‘domestic support obligation’ means a debt that accrues before, on, 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, on, 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;” .Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(15)(17)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(15)(17)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (15) to (17). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(18)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(18)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (18). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1005 · 119 Stat. 23
Substituted · 11 U.S.C. § 101(18)(A)
Pub. L. 109–8, § 1005, substituted “for—
Source evidence
Code amendment note
Par. (18)(A). Pub. L. 109–8, § 1005, substituted “for—“(i) the taxable year preceding; or “(ii) each of the 2d and 3d taxable years preceding; the taxable year” for “for the taxable year preceding the taxable year”.
Enacted provision · exact public law section
SEC. 1005. 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” .Pub. L. 109–8 § 1004(1) · 119 Stat. 23
Substituted · 11 U.S.C. § 101(18)(A)
Pub. L. 109–8, § 1004(1), substituted “$3,237,000” for “$1,500,000”
Substituted · 11 U.S.C. § 101(18)(A)
Pub. L. 109–8, § 1004(1), substituted “not less than 50 percent” for “not less than 80 percent”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 1004(1), substituted “$3,237,000” for “$1,500,000” and “not less than 50 percent” for “not less than 80 percent”.Enacted provision · exact public law section
(1) in subparagraph (A)— (A) by striking “$1,500,000” and inserting “$3,237,000”; and (B) by striking “80” and inserting “50”; andPub. L. 109–8 § 1004(2) · 119 Stat. 23
Substituted · 11 U.S.C. § 101(18)(B)(ii)
Pub. L. 109–8, § 1004(2), substituted “$3,237,000” for “$1,500,000”
Substituted · 11 U.S.C. § 101(18)(B)(ii)
Pub. L. 109–8, § 1004(2), substituted “50 percent” for “80 percent”
Source evidence
Code amendment note
Par. (18)(B)(ii). Pub. L. 109–8, § 1004(2), substituted “$3,237,000” for “$1,500,000” and “50 percent” for “80 percent”.Enacted provision · exact public law section
(2) in subparagraph (B)(ii)— (A) by striking “$1,500,000” and inserting “$3,237,000”; and (B) by striking “80” and inserting “50”.Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(19)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(19)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (19). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(19A); 11 U.S.C. § 101(19B)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(19A); 11 U.S.C. § 101(19B)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (19A), (19B). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1007(a)(2) · 119 Stat. 23
Added · 11 U.S.C. § 101(19A); 11 U.S.C. § 101(19B)
Pub. L. 109–8, § 1007(a)(2), added pars. (19A) and (19B)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 1007(a)(2), added pars. (19A) and (19B).Enacted provision · exact public law section
(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;” .Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(20)(21B)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(20)(21B)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (20) to (21B). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(22)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(22)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (22). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 907(b)(1) · 119 Stat. 23
Added · 11 U.S.C. § 101(22)
Pub. L. 109–8, § 907(b)(1), added par. (22)
Struck · 11 U.S.C. § 101(22)
Pub. L. 109–8, § 907(b)(1), struck out former par. (22) which consisted of introductory provisions and subpars. (A) and (B) defining “financial institution”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 907(b)(1), added par. (22) and struck out former par. (22) which consisted of introductory provisions and subpars. (A) and (B) defining “financial institution”.Enacted provision · exact public law section
(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, federally-insured credit union, or receiver, liquidating agent, or conservator for such entity and, when any such Federal reserve bank, receiver, liquidating agent, 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;” ;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(22A)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(22A)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (22A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 907(b)(2) · 119 Stat. 23
Added · 11 U.S.C. § 101(22A)
Pub. L. 109–8, § 907(b)(2), added par. (22A)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 907(b)(2), added par. (22A).Enacted provision · exact public law section
(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);” ; andPub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(23); 11 U.S.C. § 101(24)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(23); 11 U.S.C. § 101(24)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (23), (24). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 802(b) · 119 Stat. 23
Added · 11 U.S.C. § 101(23); 11 U.S.C. § 101(24)
Pub. L. 109–8, § 802(b), added pars. (23) and (24)
Struck · 11 U.S.C. § 101(23); 11 U.S.C. § 101(24)
Pub. L. 109–8, § 802(b), struck out former pars. (23) and (24) which read as follows:
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 802(b), added pars. (23) and (24) and struck out former pars. (23) and (24) which read as follows:“(23) ‘foreign proceeding’ means proceeding, whether judicial or administrative and whether or not under bankruptcy law, in a foreign country in which the debtor’s domicile, residence, principal place of business, or principal assets were located at the commencement of such proceeding, for the purpose of liquidating an estate, adjusting debts by composition, extension, or discharge, or effecting a reorganization; “(24) ‘foreign representative’ means duly selected trustee, administrator, or other representative of an estate in a foreign proceeding;”.
Enacted provision · exact public law section
(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;” .Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(25)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(25)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (25). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 907(a)(1)(A) · 119 Stat. 23
Substituted · 11 U.S.C. § 101(25)
Pub. L. 109–8, § 907(a)(1)(A), substituted “means—” for “means”
Amended · 11 U.S.C. § 101(25)
Pub. L. 109–8, § 907(a)(1)(A), designated subsequent provisions as subpar. (A)
Substituted · 11 U.S.C. § 101(25)
Pub. L. 109–8, § 907(a)(1)(A), substituted “, or any other similar agreement” for “, or any combination thereof or option thereon”
Added · 11 U.S.C. § 101(25)
Pub. L. 109–8, § 907(a)(1)(A), added subpars. (B) to (E)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 907(a)(1)(A), substituted “means—” for “means”, designated subsequent provisions as subpar. (A), substituted “, or any other similar agreement” for “, or any combination thereof or option thereon”, and added subpars. (B) to (E).Enacted provision · exact public law section
(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;” ;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(26)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(26)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (26). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 907(b)(3) · 119 Stat. 23
Added · 11 U.S.C. § 101(26)
Pub. L. 109–8, § 907(b)(3), added par. (26)
Struck · 11 U.S.C. § 101(26)
Pub. L. 109–8, § 907(b)(3), struck out former par. (26) which read as follows: “ ‘forward contract merchant’ means a person whose business consists in whole or in part of entering into forward contracts as or with merchants in a commodity, as defined in section 761(8) of this title, or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade;”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 907(b)(3), added par. (26) and struck out former par. (26) which read as follows: “ ‘forward contract merchant’ means a person whose business consists in whole or in part of entering into forward contracts as or with merchants in a commodity, as defined in section 761(8) of this title, or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade;”.Enacted provision · exact public law section
(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;” .Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(27)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(27)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (27). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(27A)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(27A)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (27A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1101(a)(2) · 119 Stat. 23
Redesignated · 11 U.S.C. § 101(27A)
Pub. L. 109–8, § 1101(a)(2), added par. (27A). Former par. (27A) redesignated (27B)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 1101(a)(2), added par. (27A). Former par. (27A) redesignated (27B).Enacted provision · exact public law section
(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;” .Pub. L. 109–8 § 306(c)(2) · 119 Stat. 23
Added · 11 U.S.C. § 101(27A)
Pub. L. 109–8, § 306(c)(2), added par. (27A)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 306(c)(2), added par. (27A).Enacted provision · exact public law section
(2) by inserting after paragraph (27), the following: “(27A) ‘incidental property’ means, with respect to a debtor’s principal residence— “(A) property commonly conveyed with a principal residence in the area where the real property is located; “(B) all easements, rights, appurtenances, fixtures, rents, royalties, mineral rights, oil or gas rights or profits, water rights, escrow funds, or insurance proceeds; and “(C) all replacements or additions;” .Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(27B)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(27B)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (27B). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1101(a)(1) · 119 Stat. 23
Redesignated · 11 U.S.C. § 101(27B)
Pub. L. 109–8, § 1101(a)(1), redesignated par. (27A) as (27B)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 1101(a)(1), redesignated par. (27A) as (27B).Enacted provision · exact public law section
(1) by redesignating paragraph (27A) as paragraph (27B); andPub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(28)(34)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(28)(34)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (28) to (34). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(35)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(35)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (35). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(3) · 119 Stat. 23
Substituted · 11 U.S.C. § 101(35)(B)
Pub. L. 109–8, § 1201(3), substituted “paragraphs (23) and (35)” for “paragraphs (21B) and (33)(A)”
Source evidence
Code amendment note
Par. (35)(B). Pub. L. 109–8, § 1201(3), substituted “paragraphs (23) and (35)” for “paragraphs (21B) and (33)(A)”.Enacted provision · exact public law section
(3) in paragraph (35)(B), by striking “paragraphs (21B) and (33)(A)” and inserting “paragraphs (23) and (35)”;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(35A)
Pub. L. 109–8, § 1201(2), (4), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(35A)
Pub. L. 109–8, § 1201(2), (4), substituted a period for “; and” at end
Source evidence
Code amendment note
Par. (35A). Pub. L. 109–8, § 1201(2), (4), inserted “The term” after par. designation and substituted a period for “; and” at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(36); 11 U.S.C. § 101(37)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(36); 11 U.S.C. § 101(37)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (36), (37). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(38)
Pub. L. 109–8, § 1201(2), (4), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(38)
Pub. L. 109–8, § 1201(2), (4), substituted a period for “; and” at end
Source evidence
Code amendment note
Par. (38). Pub. L. 109–8, § 1201(2), (4), inserted “The term” after par. designation and substituted a period for “; and” at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(38A); 11 U.S.C. § 101(38B)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(38A); 11 U.S.C. § 101(38B)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (38A), (38B). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 907(c) · 119 Stat. 23
Added · 11 U.S.C. § 101(38A); 11 U.S.C. § 101(38B)
Pub. L. 109–8, § 907(c), added pars. (38A) and (38B)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 907(c), added pars. (38A) and (38B).Enacted provision · exact public law section
(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;” .Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(39)
Pub. L. 109–8, § 1201(2), inserted “The term” after par. designation
Source evidence
Code amendment note
Par. (39). Pub. L. 109–8, § 1201(2), inserted “The term” after par. designation.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(39A)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(39A)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (39A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 102(k) · 119 Stat. 23
Added · 11 U.S.C. § 101(39A)
Pub. L. 109–8, § 102(k), added par. (39A)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 102(k), added par. (39A).Enacted provision · exact public law section
(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;” .Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(40)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(40)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (40). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(40A); 11 U.S.C. § 101(40B)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(40A); 11 U.S.C. § 101(40B)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (40A), (40B). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1101(b) · 119 Stat. 23
Added · 11 U.S.C. § 101(40A); 11 U.S.C. § 101(40B)
Pub. L. 109–8, § 1101(b), added pars. (40A) and (40B)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 1101(b), added pars. (40A) and (40B).Enacted provision · exact public law section
(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;” .Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(41)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(41)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (41). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(41A)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(41A)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (41A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 231(b) · 119 Stat. 23
Added · 11 U.S.C. § 101(41A)
Pub. L. 109–8, § 231(b), added par. (41A)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 231(b), added par. (41A).Enacted provision · exact public law section
(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;” .Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(42)(45)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(42)(45)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (42) to (45). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(46)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(46)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (46). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 907(a)(1)(B) · 119 Stat. 23
Substituted · 11 U.S.C. § 101(46)
Pub. L. 109–8, § 907(a)(1)(B), substituted “at any time before” for “on any day during the period beginning 90 days before the date of”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 907(a)(1)(B), substituted “at any time before” for “on any day during the period beginning 90 days before the date of”.Enacted provision · exact public law section
(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”;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(47)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(47)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (47). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 907(a)(1)(C) · 119 Stat. 23
Amended · 11 U.S.C. § 101(47)
Pub. L. 109–8, § 907(a)(1)(C), amended par. (47) generally. Prior to amendment, par. (47) read as follows: “ ‘repurchase agreement’ (which definition also applies to a reverse repurchase agreement) means an agreement, including related terms, which provides for the transfer of certificates of deposit, eligible bankers’ acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, or securities with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, or securities as described above, at a date certain not later than one year after such transfers or on demand, against the transfer of funds;”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 907(a)(1)(C), amended par. (47) generally. Prior to amendment, par. (47) read as follows: “ ‘repurchase agreement’ (which definition also applies to a reverse repurchase agreement) means an agreement, including related terms, which provides for the transfer of certificates of deposit, eligible bankers’ acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, or securities with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, or securities as described above, at a date certain not later than one year after such transfers or on demand, against the transfer of funds;”.Enacted provision · exact public law section
(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;” ;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(48)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(48)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (48). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 907(a)(1)(D) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(48)
Pub. L. 109–8, § 907(a)(1)(D), inserted “, or exempt from such registration under such section pursuant to an order of the Securities and Exchange Commission,” after “1934”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 907(a)(1)(D), inserted “, or exempt from such registration under such section pursuant to an order of the Securities and Exchange Commission,” after “1934”.Enacted provision · exact public law section
(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”; andPub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(48A)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(48A)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (48A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 401(a) · 119 Stat. 23
Added · 11 U.S.C. § 101(48A)
Pub. L. 109–8, § 401(a), added par. (48A)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 401(a), added par. (48A).Enacted provision · exact public law section
(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;” .Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(49)(51A)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(49)(51A)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (49) to (51A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(51B)
Pub. L. 109–8, § 1201(2), (5), (8), inserted “The term” after par. designation and “who is not a family farmer” after “income of a debtor”
Substituted · 11 U.S.C. § 101(51B)
Pub. L. 109–8, § 1201(2), (5), (8), substituted a period for “thereto having aggregate noncontingent, liquidated secured debts in an amount no more than $4,000,000;”
Source evidence
Code amendment note
Par. (51B). Pub. L. 109–8, § 1201(2), (5), (8), inserted “The term” after par. designation and “who is not a family farmer” after “income of a debtor” and substituted a period for “thereto having aggregate noncontingent, liquidated secured debts in an amount no more than $4,000,000;”.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(51C); 11 U.S.C. § 101(51D)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(51C); 11 U.S.C. § 101(51D)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (51C), (51D). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 432(a) · 119 Stat. 23
Added · 11 U.S.C. § 101(51C); 11 U.S.C. § 101(51D)
Pub. L. 109–8, § 432(a), added pars. (51C) and (51D)
Struck · 11 U.S.C. § 101(51C); 11 U.S.C. § 101(51D)
Pub. L. 109–8, § 432(a), struck out former par. (51C) which read as follows: “ ‘small business’ means a person engaged in commercial or business activities (but does not include a person whose primary activity is the business of owning or operating real property and activities incidental thereto) whose aggregate noncontingent liquidated secured and unsecured debts as of the date of the petition do not exceed $2,000,000;”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 432(a), added pars. (51C) and (51D) and struck out former par. (51C) which read as follows: “ ‘small business’ means a person engaged in commercial or business activities (but does not include a person whose primary activity is the business of owning or operating real property and activities incidental thereto) whose aggregate noncontingent liquidated secured and unsecured debts as of the date of the petition do not exceed $2,000,000;”.Enacted provision · exact public law section
(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);” .Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(52)(53A)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(52)(53A)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Pars. (52) to (53A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(53B)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(53B)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (53B). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 907(a)(1)(E) · 119 Stat. 23
Amended · 11 U.S.C. § 101(53B)
Pub. L. 109–8, § 907(a)(1)(E), amended par. (53B) generally. Prior to amendment, par. (53B) consisted of introductory provisions and subpars. (A) to (C) defining “swap agreement”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 907(a)(1)(E), amended par. (53B) generally. Prior to amendment, par. (53B) consisted of introductory provisions and subpars. (A) to (C) defining “swap agreement”.Enacted provision · exact public law section
(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) Applicability. 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;” ;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(53C)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(53C)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (53C). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(53D)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(53D)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (53D). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(8) · 119 Stat. 23
Substituted · 11 U.S.C. § 101(54)
Pub. L. 109–8, § 1201(8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (54). Pub. L. 109–8, § 1201(8), substituted a period for semicolon at end.Enacted provision · exact public law section
(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.Pub. L. 109–8 § 1201(6) · 119 Stat. 23
Added · 11 U.S.C. § 101(54)
Pub. L. 109–8, § 1201(6), added par. (54)
Struck · 11 U.S.C. § 101(54)
Pub. L. 109–8, § 1201(6), struck out former par. (54) which read as follows: “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 debtor’s equity of redemption;”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 1201(6), added par. (54) and struck out former par. (54) which read as follows: “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 debtor’s equity of redemption;”.Enacted provision · exact public law section
(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;” ;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(54)
Pub. L. 109–8, § 1201(2), inserted “The term” after par. designation
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 1201(2), inserted “The term” after par. designation.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(8) · 119 Stat. 23
Substituted · 11 U.S.C. § 101(54A)
Pub. L. 109–8, § 1201(8), which directed the substitution of a period for semicolon at end, could not be executed because par. (54A) ended in a period after amendment by Pub. L. 109–8, § 1201(4). See below
Source evidence
Code amendment note
Par. (54A). Pub. L. 109–8, § 1201(8), which directed the substitution of a period for semicolon at end, could not be executed because par. (54A) ended in a period after amendment by Pub. L. 109–8, § 1201(4). See below.Enacted provision · exact public law section
(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.Pub. L. 109–8 § 1201(4) · 119 Stat. 23
Substituted · 11 U.S.C. § 101(54A)
Pub. L. 109–8, § 1201(4), (7), substituted “The term” for “the term”, realigned left margin
Substituted · 11 U.S.C. § 101(54A)
Pub. L. 109–8, § 1201(4), (7), substituted a period for “; and” at end
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 1201(4), (7), substituted “The term” for “the term”, realigned left margin, and substituted a period for “; and” at end.Enacted provision · exact public law section
(4) in each of paragraphs (35A), (38), and (54A), by striking “; and” at the end and inserting a period;Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(55)
Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation
Substituted · 11 U.S.C. § 101(55)
Pub. L. 109–8, § 1201(2), (8), substituted a period for semicolon at end
Source evidence
Code amendment note
Par. (55). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Pub. L. 109–8 § 1201(8) · 119 Stat. 23
Substituted · 11 U.S.C. § 101(56A)
Pub. L. 109–8, § 1201(8), which directed the substitution of a period for semicolon “in each of paragraphs (40) through (55)” at end, was executed to par. (56A), to reflect the probable intent of Congress, because par. (56A) follows par. (53C) in text
Source evidence
Code amendment note
Par. (56A). Pub. L. 109–8, § 1201(8), which directed the substitution of a period for semicolon “in each of paragraphs (40) through (55)” at end, was executed to par. (56A), to reflect the probable intent of Congress, because par. (56A) follows par. (53C) in text.Enacted provision · exact public law section
(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.Pub. L. 109–8 § 1201(2) · 119 Stat. 23
Inserted · 11 U.S.C. § 101(56A)
Pub. L. 109–8, § 1201(2), inserted “The term” after par. designation
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–8, § 1201(2), inserted “The term” after par. designation.Enacted provision · exact public law section
(2) in each paragraph (other than paragraph (54A)), by inserting “The term” after the paragraph designation;Financial Netting Improvements Act of 2006
Pub. L. 109–390 § 5(a)(1)(A) · 120 Stat. 2692
Struck and inserted · 11 U.S.C. § 101(22)(A)
Pub. L. 109–390, § 5(a)(1)(A), struck out “(domestic or foreign)” after “an entity” and inserted “(whether or not a ‘customer’, as defined in section 741)” after “custodian for a customer”
Source evidence
Code amendment note
Par. (22)(A). Pub. L. 109–390, § 5(a)(1)(A), struck out “(domestic or foreign)” after “an entity” and inserted “(whether or not a ‘customer’, as defined in section 741)” after “custodian for a customer”.Enacted provision · exact public law section
(A) in paragraph (22)(A)— (i) by striking “(domestic or foreign)” after “an entity”; and (ii) by inserting “(whether or not a ‘customer’, as defined in section 741)” after “custodian for a customer”;Financial Netting Improvements Act of 2006
Pub. L. 109–390 § 5(a)(1)(B) · 120 Stat. 2692
Inserted · 11 U.S.C. § 101(22A)(A)
Pub. L. 109–390, § 5(a)(1)(B), inserted “(aggregated across counterparties)” after “principal amount outstanding”
Substituted · 11 U.S.C. § 101(22A)(A)
Pub. L. 109–390, § 5(a)(1)(B), substituted “at such time or on any day during the 15-month period preceding the date of the filing of the petition” for “on any day during the previous 15-month period” in two places
Source evidence
Code amendment note
Par. (22A)(A). Pub. L. 109–390, § 5(a)(1)(B), inserted “(aggregated across counterparties)” after “principal amount outstanding” and substituted “at such time or on any day during the 15-month period preceding the date of the filing of the petition” for “on any day during the previous 15-month period” in two places.Enacted provision · exact public law section
(B) in paragraph (22A)— (i) by striking “on any day during the previous 15-month period” each place it appears and inserting “at such time or on any day during the 15-month period preceding the date of the filing of the petition”; and (ii) by inserting “(aggregated across counterparties)” after “principal amount outstanding”;Financial Netting Improvements Act of 2006
Pub. L. 109–390 § 5(a)(1)(C) · 120 Stat. 2692
Inserted · 11 U.S.C. § 101(25)(A)
Pub. L. 109–390, § 5(a)(1)(C), inserted “, as defined in section 761” after “commodity contract”
Substituted · 11 U.S.C. § 101(25)(A)
Pub. L. 109–390, § 5(a)(1)(C), substituted “repurchase or reverse repurchase transaction (whether or not such repurchase or reverse repurchase transaction is a ‘repurchase agreement’, as defined in this section)” for “repurchase transaction, reverse repurchase transaction,”
Source evidence
Code amendment note
Par. (25)(A). Pub. L. 109–390, § 5(a)(1)(C), inserted “, as defined in section 761” after “commodity contract” and substituted “repurchase or reverse repurchase transaction (whether or not such repurchase or reverse repurchase transaction is a ‘repurchase agreement’, as defined in this section)” for “repurchase transaction, reverse repurchase transaction,”.Enacted provision · exact public law section
(C) in paragraph (25)(A)— (i) by inserting “, as defined in section 761” after “commodity contract”; and (ii) by striking “repurchase transaction, reverse repurchase transaction,” and inserting “repurchase or reverse repurchase transaction (whether or not such repurchase or reverse repurchase transaction is a ‘repurchase agreement’, as defined in this section)”;Financial Netting Improvements Act of 2006
Pub. L. 109–390 § 5(a)(1)(D)(i)(I) · 120 Stat. 2692
Substituted · 11 U.S.C. § 101(53B)(A)(i)(II)
Pub. L. 109–390, § 5(a)(1)(D)(i)(I), substituted “, precious metals, or other commodity” for “or precious metals”
Source evidence
Code amendment note
Par. (53B)(A)(i)(II). Pub. L. 109–390, § 5(a)(1)(D)(i)(I), substituted “, precious metals, or other commodity” for “or precious metals”.Enacted provision · exact public law section
(I) in subclause (II), by striking “or precious metals” and inserting “, precious metals, or other commodity”;Financial Netting Improvements Act of 2006
Pub. L. 109–390 § 5(a)(1)(D)(i)(III) · 120 Stat. 2692
Substituted · 11 U.S.C. § 101(53B)(A)(i)(VIII)
Pub. L. 109–390, § 5(a)(1)(D)(i)(III), substituted “option, future, or forward agreement” for “weather derivative, or weather option”
Source evidence
Code amendment note
Par. (53B)(A)(i)(VIII). Pub. L. 109–390, § 5(a)(1)(D)(i)(III), substituted “option, future, or forward agreement” for “weather derivative, or weather option”.Enacted provision · exact public law section
(III) in subclause (VIII), by striking “weather derivative, or weather option” and inserting “option, future, or forward agreement”; andFinancial Netting Improvements Act of 2006
Pub. L. 109–390 § 5(a)(1)(D)(i)(II) · 120 Stat. 2692
Added · 11 U.S.C. § 101(53B)(A)(i)(IX); 11 U.S.C. § 101(53B)(A)(i)(X)
Pub. L. 109–390, § 5(a)(1)(D)(i)(II), (IV), added subcls. (IX) and (X)
Source evidence
Code amendment note
Par. (53B)(A)(i)(IX), (X). Pub. L. 109–390, § 5(a)(1)(D)(i)(II), (IV), added subcls. (IX) and (X).Enacted provision · exact public law section
(II) in subclause (VII), by striking “or” at the end;Financial Netting Improvements Act of 2006
Pub. L. 109–390 § 5(a)(1)(D)(ii) · 120 Stat. 2692
Inserted · 11 U.S.C. § 101(53B)(A)(ii)
Pub. L. 109–390, § 5(a)(1)(D)(ii), inserted “or other derivatives” after “dealings in the swap” in subcl. (I)
Substituted · 11 U.S.C. § 101(53B)(A)(ii)
Pub. L. 109–390, § 5(a)(1)(D)(ii), substituted “future, option, or spot transaction” for “future, or option” in subcl. (II)
Source evidence
Code amendment note
Par. (53B)(A)(ii). Pub. L. 109–390, § 5(a)(1)(D)(ii), inserted “or other derivatives” after “dealings in the swap” in subcl. (I) and substituted “future, option, or spot transaction” for “future, or option” in subcl. (II).Enacted provision · exact public law section
(ii) in clause (ii)— (I) in subclause (I), by inserting “or other derivatives” after “dealings in the swap”; and (II) in subclause (II), by striking “future, or option” and inserting “future, option, or spot transaction”; andFinancial Netting Improvements Act of 2006
Pub. L. 109–390 § 5(a)(1)(E) · 120 Stat. 2692
Substituted · 11 U.S.C. § 101(53B)(B)
Pub. L. 109–390, § 5(a)(1)(E), substituted “the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act of 2000, the securities laws (as such term is defined in section 3(a)(47) of the Securities Exchange Act of 1934) and the Commodity Exchange Act” for “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”
Source evidence
Code amendment note
Par. (53B)(B). Pub. L. 109–390, § 5(a)(1)(E), substituted “the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act of 2000, the securities laws (as such term is defined in section 3(a)(47) of the Securities Exchange Act of 1934) and the Commodity Exchange Act” for “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”.Enacted provision · exact public law section
(E) in paragraph (53B)(B), by striking “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” and inserting “the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act of 2000, the securities laws (as such term is defined in section 3(a)(47) of the Securities Exchange Act of 1934) and the Commodity Exchange Act”;Bankruptcy Technical Corrections Act of 2010
Pub. L. 111–327 § 2(a)(1)(A)(i) · 124 Stat. 3557
Inserted · 11 U.S.C. § 101(13A)(A)
Pub. L. 111–327, § 2(a)(1)(A)(i), inserted “if used as the principal residence by the debtor” after “a residential structure”
Source evidence
Code amendment note
Par. (13A)(A). Pub. L. 111–327, § 2(a)(1)(A)(i), inserted “if used as the principal residence by the debtor” after “a residential structure”.Enacted provision · exact public law section
(i) in subparagraph (A) by inserting “if used as the principal residence by the debtor” after “structure” the 1st place it appears, andBankruptcy Technical Corrections Act of 2010
Pub. L. 111–327 § 2(a)(1)(A)(ii) · 124 Stat. 3557
Inserted · 11 U.S.C. § 101(13A)(B)
Pub. L. 111–327, § 2(a)(1)(A)(ii), inserted “if used as the principal residence by the debtor” before period at end
Source evidence
Code amendment note
Par. (13A)(B). Pub. L. 111–327, § 2(a)(1)(A)(ii), inserted “if used as the principal residence by the debtor” before period at end.Enacted provision · exact public law section
(ii) in subparagraph (B) by inserting “if used as the principal residence by the debtor” before the period at the end,Bankruptcy Technical Corrections Act of 2010
Pub. L. 111–327 § 2(a)(1)(B) · 124 Stat. 3557
Substituted · 11 U.S.C. § 101(35)(B)
Pub. L. 111–327, § 2(a)(1)(B), substituted “paragraphs (21B) and (33)(A)” for “paragraphs (23) and (35)”
Source evidence
Code amendment note
Par. (35)(B). Pub. L. 111–327, § 2(a)(1)(B), substituted “paragraphs (21B) and (33)(A)” for “paragraphs (23) and (35)”.Enacted provision · exact public law section
(B) in paragraph (35) by striking “(23) and (35)” and inserting “(21B) and (33)(A)”,Bankruptcy Technical Corrections Act of 2010
Pub. L. 111–327 § 2(a)(1)(C) · 124 Stat. 3557
Substituted · 11 U.S.C. § 101(40B)
Pub. L. 111–327, § 2(a)(1)(C), substituted “record relating to a patient, including a written document or a” for “written document relating to a patient or a”
Source evidence
Code amendment note
Par. (40B). Pub. L. 111–327, § 2(a)(1)(C), substituted “record relating to a patient, including a written document or a” for “written document relating to a patient or a”.Enacted provision · exact public law section
(C) in paragraph (40B) by striking “written document relating to a patient or a” and inserting “record relating to a patient, including a written document or a”,Bankruptcy Technical Corrections Act of 2010
Pub. L. 111–327 § 2(a)(1)(D) · 124 Stat. 3557
Substituted · 11 U.S.C. § 101(42)
Pub. L. 111–327, § 2(a)(1)(D), which directed substitution of “303 and 1504” for “303, and 304”, was executed by making the substitution for “303, or 304” to reflect the probable intent of Congress
Source evidence
Code amendment note
Par. (42). Pub. L. 111–327, § 2(a)(1)(D), which directed substitution of “303 and 1504” for “303, and 304”, was executed by making the substitution for “303, or 304” to reflect the probable intent of Congress.Enacted provision · exact public law section
(D) in paragraph (42) by striking “303, and 304” and inserting “303 and 1504”,Bankruptcy Technical Corrections Act of 2010
Pub. L. 111–327 § 2(a)(1)(E) · 124 Stat. 3557
Inserted · 11 U.S.C. § 101(51B)
Pub. L. 111–327, § 2(a)(1)(E), inserted “thereto” before period at end
Source evidence
Code amendment note
Par. (51B). Pub. L. 111–327, § 2(a)(1)(E), inserted “thereto” before period at end.Enacted provision · exact public law section
(E) in paragraph (51B) by inserting “thereto” before the period at the end, andBankruptcy Technical Corrections Act of 2010
Pub. L. 111–327 § 2(a)(1)(F) · 124 Stat. 3557
Inserted · 11 U.S.C. § 101(51D)(A)
Pub. L. 111–327, § 2(a)(1)(F), inserted “of the filing” after “as of the date”
Source evidence
Code amendment note
Par. (51D)(A). Pub. L. 111–327, § 2(a)(1)(F), inserted “of the filing” after “as of the date”.Enacted provision · exact public law section
(F) in paragraph (51D) by inserting “of the filing” after “date” the 1st place it appears,Honoring American Veterans in Extreme Need Act of 2019
Pub. L. 116–52 § 2 · 133 Stat. 1076
Added · 11 U.S.C. § 101(10A)(B)
Pub. L. 116–52 added subpar. (B)
Struck · 11 U.S.C. § 101(10A)(B)
Pub. L. 116–52 struck out former subpar. (B) which read as follows: “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.” See Codification note above
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 116–52 added subpar. (B) and struck out former subpar. (B) which read as follows: “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.” See Codification note above.Enacted provision · exact public law section
SEC. 2. DEFINITION OF CURRENT MONTHLY INCOME. Section 101(10A) of title 11, United States Code, is amended by striking subparagraph (B) and inserting the following: “(B) (i) 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); and “(ii) excludes— “(I) benefits received under the Social Security Act (42 U.S.C. 301 et seq.); “(II) payments to victims of war crimes or crimes against humanity on account of their status as victims of such crimes; “(III) payments to victims of international terrorism or domestic terrorism, as those terms are defined in section 2331 of title 18, on account of their status as victims of such terrorism; and “(IV) any monthly compensation, pension, pay, annuity, or allowance paid under title 10, 37, or 38 in connection with a disability, combat-related injury or disability, or death of a member of the uniformed services, except that any retired pay excluded under this subclause shall include retired pay paid under chapter 61 of title 10 only to the extent that such retired pay exceeds the amount of retired pay to which the debtor would otherwise be entitled if retired under any provision of title 10 other than chapter 61 of that title.” .Family Farmer Relief Act of 2019
Pub. L. 116–51 § 2 · 133 Stat. 1075
Substituted · 11 U.S.C. § 101(18)
Pub. L. 116–51 substituted “$10,000,000” for “$3,237,000” in two places
Source evidence
Code amendment note
Par. (18). Pub. L. 116–51 substituted “$10,000,000” for “$3,237,000” in two places.Enacted provision · exact public law section
SEC. 2. DEFINITION OF FAMILY FARMER. Section 101(18) of title 11, United States Code, is amended by striking “$3,237,000” each place that term appears and inserting “$10,000,000”.Small Business Reorganization Act of 2019
Pub. L. 116–54 § 4(a)(1)(A) · 133 Stat. 1079
Inserted · 11 U.S.C. § 101(51C)
Pub. L. 116–54, § 4(a)(1)(A), inserted “and has not elected that subchapter V of chapter 11 of this title shall apply” after “is a small business debtor”
Source evidence
Code amendment note
Par. (51C). Pub. L. 116–54, § 4(a)(1)(A), inserted “and has not elected that subchapter V of chapter 11 of this title shall apply” after “is a small business debtor”.Enacted provision · exact public law section
(A) in paragraph (51C), by inserting “and has not elected that subchapter V of chapter 11 of this title shall apply” after “is a small business debtor”; andSmall Business Reorganization Act of 2019
Pub. L. 116–54 § 4(a)(1)(B)(i) · 133 Stat. 1079
Substituted · 11 U.S.C. § 101(51D)(A)
Pub. L. 116–54, § 4(a)(1)(B)(i), substituted “single asset real estate” for “or operating real property or activities incidental thereto”
Substituted · 11 U.S.C. § 101(51D)(A)
Pub. L. 116–54, § 4(a)(1)(B)(i), substituted “not less than 50 percent of which arose from the commercial or business activities of the debtor; and” for “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”
Source evidence
Code amendment note
Par. (51D)(A). Pub. L. 116–54, § 4(a)(1)(B)(i), substituted “single asset real estate” for “or operating real property or activities incidental thereto” and “not less than 50 percent of which arose from the commercial or business activities of the debtor; and” for “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”.Enacted provision · exact public law section
(i) in subparagraph (A)— (I) by striking “or operating real property or activities incidental thereto” and inserting “single asset real estate”; and (II) by striking “for a case in which” and all that follows and inserting “not less than 50 percent of which arose from the commercial or business activities of the debtor; and”; andSmall Business Reorganization Act of 2019
Pub. L. 116–54 § 4(a)(1)(B)(ii) · 133 Stat. 1079
Substituted · 11 U.S.C. § 101(51D)(B)
Pub. L. 116–54, § 4(a)(1)(B)(ii), substituted “does not include—” for “does not include”
Inserted · 11 U.S.C. § 101(51D)(B)
Pub. L. 116–54, § 4(a)(1)(B)(ii), inserted cl. (i) designation before “any member”
Added · 11 U.S.C. § 101(51D)(B)
Pub. L. 116–54, § 4(a)(1)(B)(ii), added cls. (ii) and (iii)
Source evidence
Code amendment note
Par. (51D)(B). Pub. L. 116–54, § 4(a)(1)(B)(ii), substituted “does not include—” for “does not include”, inserted cl. (i) designation before “any member”, and added cls. (ii) and (iii).Enacted provision · exact public law section
(ii) in subparagraph (B)— (I) by striking the period at the end and inserting a semicolon; (II) by striking “does not include any member” and inserting the following: “does not include— “(i) any member” ; and (III) by adding at the end the following: “(ii) any debtor that is a corporation subject to the reporting requirements under section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)); or “(iii) any corporation that— “(I) is subject to the reporting requirements under section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)); and “(II) is an affiliate of a debtor.” ;National Defense Authorization Act for Fiscal Year 2020
Pub. L. 116–92 div. A title XVII § 1736 · 133 Stat. 1198
Added · 11 U.S.C. § 101(10A)(B)
Pub. L. 116–92 added subpar. (B) almost identical to that added by Pub. L. 116–52
Struck · 11 U.S.C. § 101(10A)(B)
Pub. L. 116–92 struck out former subpar. (B). See Codification note above
Source evidence
Code amendment note
Par. (10A)(B). Pub. L. 116–92 added subpar. (B) almost identical to that added by Pub. L. 116–52 and struck out former subpar. (B). See Codification note above.Enacted provision · exact public law section
SEC. 1736. EXEMPTION FROM CALCULATION OF MONTHLY INCOME, FOR PURPOSES OF BANKRUPTCY LAWS, OF CERTAIN PAYMENTS FROM THE DEPARTMENT OF VETERANS AFFAIRS AND THE DEPARTMENT OF DEFENSE. Section 101(10A) of title 11, United States Code, is amended by striking subparagraph (B) and inserting the following: “(B) (i) 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); and “(ii) excludes— “(I) benefits received under the Social Security Act (42 U.S.C. 301 et seq.); “(II) payments to victims of war crimes or crimes against humanity on account of their status as victims of such crimes; “(III) payments to victims of international terrorism or domestic terrorism, as those terms are defined in section 2331 of title 18, on account of their status as victims of such terrorism; and “(IV) any monthly compensation, pension, pay, annuity, or allowance paid under title 10, 37, or 38 in connection with a disability, combat-related injury or disability, or death of a member of the uniformed services, except that any retired pay excluded under this subclause shall include retired pay paid under chapter 61 of title 10 only to the extent that such retired pay exceeds the amount of retired pay to which the debtor would otherwise be entitled if retired under any provision of title 10 other than chapter 61 of that title.” .Coronavirus Aid, Relief, and Economic Security Act
Pub. L. 116–136 § 1113(b)(2)(A)(i) · 134 Stat. 281
Struck · 11 U.S.C. § 101(10A)(B)(ii)(V)
Pub. L. 116–136, § 1113(b)(2)(A)(i), struck out subcl. (V) which read as follows: “Payments made under Federal law relating to the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) with respect to the coronavirus disease 2019 (COVID–19).”
Source evidence
Code amendment note
Par. (10A)(B)(ii)(V). Pub. L. 116–136, § 1113(b)(2)(A)(i), struck out subcl. (V) which read as follows: “Payments made under Federal law relating to the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) with respect to the coronavirus disease 2019 (COVID–19).”Enacted provision · exact public law section
(i) Exclusion from current monthly income.— Section 101(10A)(B)(ii) of title 11, United States Code, is amended— (I) in subclause (III), by striking the semicolon at the end and inserting “; and”; (II) in subclause (IV), by striking “; and” and inserting a period; and (III) by striking subclause (V).Coronavirus Aid, Relief, and Economic Security Act
Pub. L. 116–136 § 1113(b)(1)(A) · 134 Stat. 281
Added · 11 U.S.C. § 101(10A)(B)(ii)(V)
Pub. L. 116–136, § 1113(b)(1)(A), added subcl. (V)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 116–136, § 1113(b)(1)(A), added subcl. (V).Enacted provision · exact public law section
(A) Exclusion from current monthly income.— Section 101(10A)(B)(ii) of title 11, United States Code, is amended— (i) in subclause (III), by striking “; and” and inserting a semicolon; (ii) in subclause (IV), by striking the period at the end and inserting “; and”; and (iii) by adding at the end the following: “(V) Payments made under Federal law relating to the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) with respect to the coronavirus disease 2019 (COVID–19).” .Coronavirus Aid, Relief, and Economic Security Act
Pub. L. 116–136 § 1113(a)(4)(A) · 134 Stat. 281
Amended · 11 U.S.C. § 101(51D)(B)(iii)
Pub. L. 116–136, § 1113(a)(4)(A), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “any corporation that—
Source evidence
Code amendment note
Par. (51D)(B)(iii). Pub. L. 116–136, § 1113(a)(4)(A), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “any corporation that—“(I) is subject to the reporting requirements under section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)); and “(II) is an affiliate of a debtor.”
Enacted provision · exact public law section
(A) Definition of small business debtor.— Section 101(51D)(B)(iii) of title 11, United States Code, is amended to read as follows: “(iii) any debtor that is an affiliate of an issuer (as defined in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c)).” .Bankruptcy Threshold Adjustment and Technical Corrections Act
Pub. L. 117–151 § 2(a)(1) · 136 Stat. 1298
Inserted · 11 U.S.C. § 101(51D)(B)(i)
Pub. L. 117–151, § 2(a)(1), inserted “under this title” after “affiliated debtors”
Source evidence
Code amendment note
Par. (51D)(B)(i). Pub. L. 117–151, § 2(a)(1), inserted “under this title” after “affiliated debtors”.Enacted provision · exact public law section
(1) in clause (i), by inserting “under this title” after “affiliated debtors”; andBankruptcy Threshold Adjustment and Technical Corrections Act
Pub. L. 117–151 § 2(a)(2) · 136 Stat. 1298
Substituted · 11 U.S.C. § 101(51D)(B)(iii)
Pub. L. 117–151, § 2(a)(2), substituted “a corporation described in clause (ii).” for “an issuer (as defined in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c)).”
Source evidence
Code amendment note
Par. (51D)(B)(iii). Pub. L. 117–151, § 2(a)(2), substituted “a corporation described in clause (ii).” for “an issuer (as defined in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c)).”Enacted provision · exact public law section
(2) in clause (iii), by striking “an issuer” and all that follows and inserting “a corporation described in clause (ii).”.Pub. L. 119–27 § 11(b) · 139 Stat. 457
Added · 11 U.S.C. § 101(40C)
Pub. L. 119–27 added par. (40C)
Unresolved: Pub. L. 119–27 was not found in the local Statutes at Large index.
Source evidence
Code amendment note
Par. (40C). Pub. L. 119–27 added par. (40C).Effective date note
Amendment by Pub. L. 119–27 effective on the earlier of the date that is 18 months after July 18, 2025, or the date that is 120 days after the date on which the primary Federal payment stablecoin regulators issue any final regulations implementing Pub. L. 119–27, see section 20 of Pub. L. 119–27, set out as an Effective Date note under section 5901 of Title 12, Banks and Banking.
321 of 338 references resolved to an enrolled provision · 16 partial · 1 unresolved
Notes
Amendment of Section
Pub. L. 119–27, §§ 11(b), 20, , 139 Stat. 457, 466, provided that, effective on the earlier of the date that is 18 months after , or the date that is 120 days after the date on which the primary Federal payment stablecoin regulators issue any final regulations implementing Pub. L. 119–27, this section is amended by adding after paragraph (40B) the following:
(40C) The terms “payment stablecoin” and “permitted payment stablecoin issuer” have the meanings given those terms in section 2 of the GENIUS Act.
See 2025 Amendment note below.
Historical and Revision Notes
legislative statements
Section 101(2) defines “affiliate.” The House amendment contains a provision that is a compromise between the definition in the House-passed version of H.R. 8200 and the Senate amendment in the nature of a substitute to H.R. 8200. Subparagraphs (A) and (B) are derived from the Senate amendment and subparagraph (D) is taken from the House bill, while subparagraph (C) represents a compromise, taking the House position with respect to a person whose business is operated under a lease or an operating agreement by the debtor and with respect to a person substantially all of whose property is operated under an operating agreement by the debtor and with respect to a person substantially all of whose property is operated under an operating agreement by the debtor and the Senate position on leased property. Thus, the definition of “affiliate” excludes persons substantially all of whose property is operated under a lease agreement by a debtor, such as a small company which owns equipment all of which is leased to a larger nonrelated company.
Section 101(4)(B) represents a modification of the House-passed bill to include the definition of “claim” a right to an equitable remedy for breach of performance if such breach gives rise to a right to payment. This is intended to cause the liquidation or estimation of contingent rights of payment for which there may be an alternative equitable remedy with the result that the equitable remedy will be susceptible to being discharged in bankruptcy. For example, in some States, a judgment for specific performance may be satisfied by an alternative right to payment, in the event performance is refused; in that event, the creditor entitled to specific performance would have a “claim” for purposes of a proceeding under title 11.
On the other hand, rights to an equitable remedy for a breach of performance with respect to which such breach does not give rise to a right to payment are not “claims” and would therefore not be susceptible to discharge in bankruptcy.
In a case under chapter 9 to title 11, “claim” does not include a right to payment under an industrial development bond issued by a municipality as a matter of convenience for a third party.
Municipalities are authorized, under section 103(c) of the Internal Revenue Code of 1954, as amended [title 26], to issue tax-exempt industrial development revenue bonds to provide for the financing of certain projects for privately owned companies. The bonds are sold on the basis of the credit of the company on whose behalf they are issued, and the principal, interest, and premium, if any, are payable solely from payments made by the company to the trustee under the bond indenture and do not constitute claims on the tax revenues or other funds of the issuing municipalities. The municipality merely acts as the vehicle to enable the bonds to be issued on a tax-exempt basis. Claims that arise by virtue of these bonds are not among the claims defined by this paragraph and amounts owed by private companies to the holders of industrial development revenue bonds are not to be included among the assets of the municipality that would be affected by the plan.
Section 101(6) defines “community claim” as provided by the Senate amendment in order to indicate that a community claim exists whether or not there is community property in the estate as of the commencement of the case.
Section 101(7) of the House amendment contains a definition of consumer debt identical to the definition in the House bill and Senate amendment. A consumer debt does not include a debt to any extent the debt is secured by real property.
Section 101(9) of the Senate amendment contained a definition of “court.” The House amendment deletes the provision as unnecessary in light of the pervasive jurisdiction of a bankruptcy court under all chapters of title 11 as indicated in title II of the House amendment to H.R. 8200.
Section 101(11) defines “debt” to mean liability on a claim, as was contained in the House-passed version of H.R. 8200. The Senate amendment contained language indicating that “debt” does not include a policy loan made by a life insurance company to the debtor. That language is deleted in the House amendment as unnecessary since a life insurance company clearly has no right to have a policy loan repaid by the debtor, although such company does have a right of offset with respect to such policy loan. Clearly, then, a “debt” does not include a policy loan made by a life insurance company. Inclusion of the language contained in the Senate amendment would have required elaboration of other legal relationships not arising by a liability on a claim. Further the language would have required clarification that interest on a policy loan made by a life insurance company is a debt, and that the insurance company does have right to payment to that interest.
Section 101(14) adopts the definition of “entity” contained in the Senate-passed version of H.R. 8200. Since the Senate amendment to H.R. 8200 deleted the U.S. trustee, a corresponding definitional change is made in chapter 15 of the House amendment for U.S. trustees under the pilot program. Adoption by the House amendment of a pilot program for U.S. trustees under chapter 15 requires insertion of “United States trustee” in many sections. Several provisions in chapter 15 of the House amendment that relate to the U.S. trustee were not contained in the Senate amendment in the nature of a substitute.
Section 101(17) defines “farmer,” as in the Senate amendment with an income limitation percentage of 80 percent instead of 75 percent.
Section 101(18) contains a new definition of “farming operation” derived from present law and the definition of “farmer” in the Senate amendment. This definition gives a broad construction to the term “farming operation”.
Section 101(20) contains a definition of “foreign representative”. It clarifies the House bill and Senate amendment by indicating that a foreign representative must be duly selected in a foreign proceeding.
Section 101(35) defines “security” as contained in the Senate amendment. H.R. 8200 as adopted by the House excluded certain commercial notes from the definition of “security”, and that exclusion is deleted.
Section 101(40) defines “transfer” as in the Senate amendment. The definition contained in H.R. 8200 as passed by the House included “setoff” in the definition of “transfer”. Inclusion of “setoff” is deleted. The effect is that a “setoff” is not subject to being set aside as a preferential “transfer” but will be subject to special rules.
senate report no. 95–989
Section 101 of title 11 contains 40 definitions:
Paragraph (1) defines “accountant” as an accountant authorized under applicable law to practice accounting. The term includes a professional accounting association, corporation, or partnership if applicable law authorizes such a unit to practice accounting.
Paragraph (2) defines “affiliate.” An affiliate is an entity with a close relationship to the debtor. It includes a 20 percent parent or subsidiary of the debtor, whether a corporate, partnership, individual, or estate parent.
The use of “directly or indirectly” in subparagraphs (A) and (B) is intended to cover situations in which there is an opportunity to control, and where the existence of that opportunity operates as indirect control.
“Affiliate” is defined primarily for use in the definition of insider, infra, and for use in the chapter 11 reorganization cases. The definition of “affiliate” does not include an entity acting in a fiduciary or agency capacity if the entity does not have the sole discretionary power to vote 20 percent of the voting securities but hold them solely as security and have not exercised the power to vote. This restriction applies to a corporate affiliate under subparagraph (B) of paragraph (2).
Subsections (C) and (D) of paragraph (2) define affiliate also as those persons and entities whose business or substantially all of whose property is operated under a lease or operating agreement by a debtor and whose business or property is more than 50 percent under the control of the debtor.
The definition of “attorney” in paragraph (3) is similar to the definition of accountant.
Paragraph (4) defines “claim.” The effect of the definition is a significant departure from present law. Under present law, “claim” is not defined in straight bankruptcy. Instead it is simply used, along with the concept of provability in section 63 of the Bankruptcy Act [section 103 of former title 11], to limit the kinds of obligations that are payable in a bankruptcy case. The term is defined in the debtor rehabilitation chapters of present law far more broadly. The definition in paragraph (4) adopts an even broader definition of claim than is found in the present debtor rehabilitation chapters. The definition is any right to payment, whether or not reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured. The definition also includes as a claim an equitable right to performance that does not give rise to a right to payment. By this broadest possible definition and by the use of the term throughout the title 11, especially in subchapter I of chapter 5, the bill contemplates that all legal obligations of the debtor, no matter how remote or contingent, will be able to be dealt with in the bankruptcy case. It permits the broadest possible relief in the bankruptcy court.
Paragraph (5) defines “commodity broker” by reference to various terms used and defined in subchapter IV of chapter 7, Commodity Broker Liquidation. The terms are described in connection with section 761, infra.
Paragraph (6) defines “community claim” for those eight States that have community property laws. The definition is keyed to the liability of the debtor’s property for a claim against either the debtor or the debtor’s spouse. If the debtor’s property is liable for a claim against either, that claim is a community claim.
Paragraph (7) defines “consumer debt”. The definition is adapted from the definition used in various consumer protection laws. It encompasses only a debt incurred by an individual primarily for a personal, family, or household purpose.
The definition of “corporation” in paragraph (8) is similar to the definition in current law, section 1(8) [section 1(8) of former title 11]. The term encompasses any association having the power or privilege that a private corporation, but not an individual or partnership, has; partnership associations organized under a law that makes only the capital subscribed responsible for the debts of the partnership; joint-stock company; unincorporated company or association; and business trust. “Unincorporated association” is intended specifically to include a labor union, as well as other bodies that come under that phrase as used under current law. The exclusion of limited partnerships is explicit, and not left to the case law.
Paragraph (9) defines “court” as the bankruptcy judge in the district in which the case is pending except in municipal adjustment and railroad reorganization cases, where “court” means the Federal district judge.
Paragraph (10) [enacted as (9)] defines “creditor” to include holders of prepetition claims against the debtor. However, it also encompasses certain holders of claims that are deemed to arise before the date of the filing of the petition, such as those injured by the rejection of an executory contract or unexpired lease, certain investment tax credit recapture claim holders, “involuntary gap” creditors, and certain holders of the right of setoff. The term also includes the holder of a prepetition community claim. A guarantor of or surety for a claim against the debtor is also a creditor, because he holds a contingent claim against the debtor that becomes fixed when he pays the creditor whose claim he has guaranteed or insured.
Paragraph (11) [enacted as (10)] defines “custodian.” There is no similar definition in current law. It is defined to facilitate drafting, and means a prepetition liquidator of the debtor’s property, such as an assignee for the benefit of creditors, a receiver of the debtor’s property, or administrator of the debtor’s property. The definition of custodian to include a receiver or trustee is descriptive, and not meant to be limited to court officers with those titles. The definition is intended to include other officers of the court if their functions are substantially similar to those of a receiver or trustee.
“Debt” is defined in paragraph (12) [enacted as (11)] as a liability on a claim. The terms “debt” and “claim” are coextensive: a creditor has a “claim” against the debtor; the debtor owes a “debt” to the creditor. This definition of “debt” and the definition of “claim” on which it is based, proposed 11 U.S.C. 101(4), does not include a transaction such as a policy loan on an insurance policy. Under that kind of transaction, the debtor is not liable to the insurance company for repayment; the amount owed is merely available to the company for setoff against any benefits that become payable under the policy. As such, the loan is not a claim (it is not a right to payment) that the company can assert against the estate; nor is the debtor’s obligation a debt (a liability on a claim) that will be discharged under proposed 11 U.S.C. 523 or 524.
Paragraph (13) [enacted as (12)] defines “debtor.” Debtor means person or municipality concerning which a case under title II has been commenced. This is a change in terminology from present law, which identifies the person by or against whom a petition is filed in a straight bankruptcy liquidation case as the “bankrupt”, and a person or municipality that is proceeding under a debtor rehabilitation chapter (chapters VIII through XIII of the Bankruptcy Act) [chapters 8 through 13 of former title 11] as a “debtor.” The term “debtor” is used for both kinds of cases in this bill, for ease of reference in chapters 1, 3, and 5 (which apply to straight bankruptcy and reorganization cases).
Paragraph (14) [enacted as (13)] defines “disinterested person.” The definition is adapted from section 158 of chapter X of current law [section 558 of former title 11], though it is expanded and modified in some respects. A person is a disinterested person if the person is not a creditor, equity security holder, or insider; is not and was not an investment banker of the debtor for any outstanding security of the debtor (the change from underwriter in current law to investment banker is to make the term more descriptive and to avoid conflict with the definition of underwriter in section 2(11) of the Securities Act of 1933 (15 U.S.C. 77b(11)); has not been an investment banker for a security of the debtor within 3 years before the date of the filing of the petition (the change from five years to three years here conforms the definition with the statute of limitations in the Securities Act of 1933) [15 U.S.C. 77m], or an attorney for such an investment banker; is not an insider of the debtor or of such an investment banker; and does not have an interest materially adverse to the estate.
“Entity” is defined, for convenience, in paragraph (15) [enacted as (14)], to include person, estate, trust, and governmental unit. It is the most inclusive of the various defined terms relating to bodies or units.
Paragraph (16) defines “equity security.” The term includes a share or stock in a corporation, a limited partner’s interest in a limited partnership, and a warrant or right to subscribe to an equity security. The term does not include a security, such as a convertible debenture, that is convertible into equity security, but has not been converted.
Paragraph (17) [enacted as (15)] defines “equity security holder” for convenience as the holder of an equity securing of the debtor.
Paragraph (18) [enacted as (17)] defines “farmer”. It encompasses only those persons for whom farming operations contribute 75 percent or more of their total income.
Paragraphs (19) and (20) define “foreign proceeding” and “foreign representative”. A foreign proceeding is a proceeding in another country in which the debtor has some substantial connection for the purpose of liquidating the estate of the debtor or the purpose of financial rehabilitation of the debtor. A foreign representative is the representative of the estate in a foreign proceeding, such as a trustee or administrator.
Paragraph (21) defines “governmental unit” in the broadest sense. The definition encompasses the United States, a State, Commonwealth, District, Territory, municipality, or foreign state, and a department, agency, or instrumentality of any of those entities. “Department, agency, or instrumentality” does not include an entity that owes its existence to State action, such as the granting of a charter or a license but that has no other connection with a State or local government or the Federal Government. The relationship must be an active one in which the department, agency, or instrumentality is actually carrying out some governmental function.
Paragraph (22) defines “indenture.” It is similar to the definition of indenture in the Trust Indenture Act of 1939 [15 U.S.C. 77ccc(7)]. An indenture is the instrument under which securities, either debt or equity, of the debtor are outstanding.
Paragraph (23) defines “indenture trustee” as the trustee under an indenture.
Paragraph (24) defines “individual with regular income.” The effect of this definition, and of its use in section 109(e), is to expand substantially the kinds of individuals that are eligible for relief under chapter 13, Adjustment of Debts of an Individual with Regular Income. Chapter XIII [chapter 13 of former title 11] is now available only for wage earners. The definition encompasses all individuals with incomes that are sufficiently stable and regular to enable them to make payments under a chapter 13 plan. Thus, individuals on welfare, social security, fixed pension incomes, or who live on investment incomes, will be able to work out repayment plans with their creditors rather than being forced into straight bankruptcy. Also, self-employed individuals will be eligible to use chapter 13 if they have regular incomes.
However, the definition excludes certain stockbrokers and commodity brokers, in order to prohibit them from proceeding under chapter 13 and avoiding the customer protection provisions of chapter 7.
“Insider”, defined in paragraph (25), is a new term. An insider is one who has a sufficiently close relationship with the debtor that his conduct is made subject to closer scrutiny than those dealing at arms length with the debtor. If the debtor is an individual, then a relative of the debtor, a partnership in which the debtor is a general partner, a general partner of the debtor, and a corporation controlled by the debtor are all insiders. If the debtor is a corporation, then a controlling person, a relative of a controlling person, a partnership in which the debtor is a general partner, and a general partner of the debtor are all insiders. If the debtor is a partnership, then a general partner of or in the debtor, a relative of a general partner in the debtor, and a person in control are all insiders. If the debtor is a municipality, then an elected official of the debtor is an insider. In addition, affiliates of the debtor and managing agents are insiders.
The definition of “insolvent” in paragraph (26) is adopted from section 1(19) of current law [section 1(19) of former title 11]. An entity is insolvent if its debts are greater than its assets, at a fair valuation, exclusive of property exempted or fraudulently transferred. It is the traditional bankruptcy balance sheet test of insolvency. For a partnership, the definition is modified to account for the liability of a general partner for the partnership’s debts. The difference in this definition from that in current law is in the exclusion of exempt property for all purposes in the definition of insolvent.
Paragraph (27) defines “judicial lien.” It is one of three kinds of liens defined in this section. A judicial lien is a lien obtained by judgment, levy, sequestration, or other legal or equitable process or proceeding.
Paragraph (28) defines “lien.” The definition is new and is very broad. A lien is defined as a charge against or interest in property to secure payment of a debt or performance of an obligation. It includes inchoate liens. In general, the concept of lien is divided into three kinds of liens: judicial liens, security interests, and statutory liens. Those three categories are mutually exclusive and are exhaustive except for certain common law liens.
Paragraph (29) defines “municipality.” The definition is adapted from the terms used in the chapter IX (municipal bankruptcy) [chapter 9 of former title 11] amendment to the Bankruptcy Act enacted in 1976 (Pub. L. 94–260). That amendment spoke in terms of “political subdivision or public agency or instrumentality of a State”. Bankruptcy Act Sec. 84 [section 404 of former title 11]. The term municipality is defined by those three terms for convenience. It does not include the District of Columbia or any territories of the United States.
“Person” is defined in paragraph (30). The definition is a change in wording, but not in substance, from the definition in section 1(23) of the Bankruptcy Act [section 1(23) of former title 11]. The definition is also similar to the one contained in 1 U.S.C. sec. 1, but is repeated here for convenience and ease of reference. Person includes individual partnership, and corporation. The exclusion of governmental units is made explicit in order to avoid any confusion that may arise if, for example, a municipality is incorporated and thus is legally a corporation as well as governmental unit. The definition does not include an estate or a trust, which are included only in the definition of “entity” in proposed 11 U.S.C. 101(14).
“Petition” is defined for convenience in paragraph (31). Petition is a petition under section 301, 302, 303, or 304 of the bankruptcy code—that is, a petition that commences a case under title 11.
Paragraph (32) defines purchaser as a transferee of a voluntary transfer, such as a sale or gift, and includes an immediate or mediate transferee of a purchaser.
The definition of “railroad” in paragraph (33) is derived from section 77 of the Bankruptcy Act [section 205 of former title 11]. A railroad is a common carrier by railroad engaged in the transportation of individuals or property, or an owner of trackage facilities leased by such a common carrier. The effect of the definition and the use of the term in section 109(d) is to eliminate the limitation now found in section 77 of the Bankruptcy Act that only railroads engaged in interstate commerce may proceed under the railroad reorganization provisions. The limitation may have been inserted because of a doubt that the commerce power could not reach intrastate railroads. Be that as it may, this bill is enacted under the bankruptcy power.
Paragraph (34) defines “relative” as an individual related by affinity or consanguinity within the third degree as determined by the common law, and includes individuals in a step or adoptive relationship. The definition is similar to current law, but adds the latter phrase. This definition should be applied as of the time when the transaction that it concerns took place. Thus, a former spouse is not a relative, but if, for example, for purposes of the preference section, proposed 11 U.S.C. 547(b)(4)(B), the transferee was a spouse of the debtor at the time of the transfer sought to be avoided, then the transferee would be relative and subject to the insider rules, even if the transferee was no longer married to the debtor at the time of the commencement of the case or at the time of the commencement of the preference recovery proceeding.
Paragraph (35) defines “security.” The definition is new and is modeled on the most recent draft of the American Law Institute’s proposed securities code, with some exceptions. The interest of a limited partner in a limited partnership is included in order to make sure that everything that is defined as an equity security is also a “security.” The definition, as with the definition of “entity”, “insider”, and “person”, is open-ended because the term is not susceptible of precise specification. Thus the courts will be able to use the characterization provided in this definition to treat with new kinds of documents on a flexible basis.
Paragraphs (36) and (37) defined “security agreement” and “security interest.” A security interest is one of the kinds of liens. It is a lien created by an agreement. Security agreement is defined as the agreement creating the security interest. Though these terms are similar to the same terms in the Uniform Commercial Code, article IX, they are broader. For example, the U.C.C. does not cover real property mortgages. Under this definition, such a mortgage is included, as are all other liens created by agreement, even though not covered by the U.C.C. All U.C.C. security interests and security agreements are, however, security interests and security agreements under this definition. Whether a consignment or a lease constitutes a security interest under the bankruptcy code will depend on whether it constitutes a security interest under applicable State or local law.
Paragraph (38) defines another kind of lien, “statutory lien.” The definition, derived from current law, states that a statutory lien is a lien arising solely by force of statute on specified circumstances or conditions and includes a lien of distress for rent (whether statutory, common law, or otherwise). The definition excludes judicial liens and security interests, whether or not they are provided for or are dependent on a statute, and whether or not they are made fully effective by statute. A statutory lien is only one that arises automatically, and is not based on an agreement to give a lien or on judicial action. Mechanics’, materialmen’s, and warehousemen’s liens are examples. Tax liens are also included in the definition of statutory lien.
“Stockbroker” is defined in paragraph (39) as a person engaged in the business of effecting transactions in securities for the account of others or with members of the general public from or for such person’s own account, if the person has a customer, as defined. Thus, the definition, derived from a combination of the definitions of “broker” and “dealer” in the Securities Exchange Act of 1934 [15 U.S.C. 78c], encompasses both brokers and dealers. The definition is used in section 109 and in subchapter III of chapter 7, Stockholder Liquidation. The term does not encompass an employee who acts for a principal that “effects” transaction or deals with the public, because such an employee will not have a “customer”.
Paragraph (40) defines “transfer.” It is derived and adapted, with stylistic changes, from section 1(30) of the Bankruptcy Act [section 1(30) of former title 11]. A transfer is a disposition of an interest in property. The definition of transfer is as broad as possible. Many of the potentially limiting words in current law are deleted, and the language is simplified. Under this definition, any transfer of an interest in property is a transfer, including a transfer of possession, custody, or control even if there is no transfer of title, because possession, custody, and control are interests in property. A deposit in a bank account or similar account is a transfer.
Editorial Notes
References in Text
The Social Security Act, referred to in par. (10A)(B)(ii)(I), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, which is classified generally to chapter 7 (§ 301 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.
The Internal Revenue Code of 1986, referred to in pars. (12A)(B) and (41)(C), is classified generally to Title 26, Internal Revenue Code.
Section 3 of the Federal Deposit Insurance Act, referred to in pars. (12A)(D), (21B)(A), (33)(A), (35)(A), and (54A), is classified to section 1813 of Title 12, Banks and Banking.
Sections 101 and 206(r) of the Federal Credit Union Act, referred to in pars. (12A)(D), (33)(B), and (34), are classified to sections 1752 and 1786(r), respectively, of Title 12, Banks and Banking.
The Investment Company Act of 1940, referred to in par. (22)(B), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, which is classified generally to subchapter I (§ 80a–1 et seq.) of chapter 2D of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 80a–51 of Title 15 and Tables.
Section 402 of the Federal Deposit Insurance Corporation Improvement Act of 1991, referred to in par. (22A)(B), is classified to section 4402 of Title 12, Banks and Banking.
The Securities Exchange Act of 1934, referred to in pars. (47)(A)(i), (48), (48A), and (53B)(B), is act June 6, 1934, ch. 404, 48 Stat. 881, which is classified principally to chapter 2B (§ 78a et seq.) of Title 15, Commerce and Trade. Sections 3, 6, 15A, and 17A of the Act are classified to sections 78c, 78f, 78o–3 and 78q–1, respectively, of Title 15. For complete classification of this Act to the Code, see section 78a of Title 15 and Tables.
The Securities Act of 1933, referred to in par. (49)(A)(xii), is act May 27, 1933, ch. 38, title I, 48 Stat. 74, which is classified generally to subchapter I (§ 77a et seq.) of chapter 2A of Title 15, Commerce and Trade. Section 3(b) of the Act is classified to section 77c(b) of Title 15. For complete classification of this Act to the Code, see section 77a of Title 15 and Tables.
The Gramm-Leach-Bliley Act, referred to in par. (53B)(B), is Pub. L. 106–102, , 113 Stat. 1338. For complete classification of this Act to the Code, see Short Title of 1999 Amendment note set out under section 1811 of Title 12, Banks and Banking, and Tables.
The Legal Certainty for Bank Products Act of 2000, referred to in par. (53B)(B), is title IV of H.R. 5660, as enacted by Pub. L. 106–554, § 1(a)(5), , 114 Stat. 2763, 2763A–457, which is classified to sections 27 to 27f of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title of 2000 Amendment note set out under section 1 of Title 7 and Tables.
The Commodity Exchange Act, referred to in par. (53B)(B), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables.
Codification
Pub. L. 116–52, effective , and Pub. L. 116–92, effective , made similar amendments, striking out subpar. (B) of par. (10A) and enacting almost identical subpars. (B). The text of par. (10A)(B) is based on the text enacted by Pub. L. 116–52.
Amendments1982–2025 · 15 rounds
2025
Par. (40C). Pub. L. 119–27 added par. (40C).
2022
Par. (51D)(B)(i). Pub. L. 117–151, § 2(a)(1), inserted “under this title” after “affiliated debtors”.
Par. (51D)(B)(iii). Pub. L. 117–151, § 2(a)(2), substituted “a corporation described in clause (ii).” for “an issuer (as defined in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c)).”
2020
Par. (10A)(B)(ii)(V). Pub. L. 116–136, § 1113(b)(2)(A)(i), struck out subcl. (V) which read as follows: “Payments made under Federal law relating to the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) with respect to the coronavirus disease 2019 (COVID–19).”
Pub. L. 116–136, § 1113(b)(1)(A), added subcl. (V).
Par. (51D)(B)(iii). Pub. L. 116–136, § 1113(a)(4)(A), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “any corporation that—
“(I) is subject to the reporting requirements under section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)); and
“(II) is an affiliate of a debtor.”
2019
Par. (10A)(B). Pub. L. 116–92 added subpar. (B) almost identical to that added by Pub. L. 116–52 and struck out former subpar. (B). See Codification note above.
Pub. L. 116–52 added subpar. (B) and struck out former subpar. (B) which read as follows: “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.” See Codification note above.
Par. (18). Pub. L. 116–51 substituted “$10,000,000” for “$3,237,000” in two places.
Par. (51C). Pub. L. 116–54, § 4(a)(1)(A), inserted “and has not elected that subchapter V of chapter 11 of this title shall apply” after “is a small business debtor”.
Par. (51D)(A). Pub. L. 116–54, § 4(a)(1)(B)(i), substituted “single asset real estate” for “or operating real property or activities incidental thereto” and “not less than 50 percent of which arose from the commercial or business activities of the debtor; and” for “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”.
Par. (51D)(B). Pub. L. 116–54, § 4(a)(1)(B)(ii), substituted “does not include—” for “does not include”, inserted cl. (i) designation before “any member”, and added cls. (ii) and (iii).
2010
Par. (13A)(A). Pub. L. 111–327, § 2(a)(1)(A)(i), inserted “if used as the principal residence by the debtor” after “a residential structure”.
Par. (13A)(B). Pub. L. 111–327, § 2(a)(1)(A)(ii), inserted “if used as the principal residence by the debtor” before period at end.
Par. (35)(B). Pub. L. 111–327, § 2(a)(1)(B), substituted “paragraphs (21B) and (33)(A)” for “paragraphs (23) and (35)”.
Par. (40B). Pub. L. 111–327, § 2(a)(1)(C), substituted “record relating to a patient, including a written document or a” for “written document relating to a patient or a”.
Par. (42). Pub. L. 111–327, § 2(a)(1)(D), which directed substitution of “303 and 1504” for “303, and 304”, was executed by making the substitution for “303, or 304” to reflect the probable intent of Congress.
Par. (51B). Pub. L. 111–327, § 2(a)(1)(E), inserted “thereto” before period at end.
Par. (51D)(A). Pub. L. 111–327, § 2(a)(1)(F), inserted “of the filing” after “as of the date”.
2006
Par. (22)(A). Pub. L. 109–390, § 5(a)(1)(A), struck out “(domestic or foreign)” after “an entity” and inserted “(whether or not a ‘customer’, as defined in section 741)” after “custodian for a customer”.
Par. (22A)(A). Pub. L. 109–390, § 5(a)(1)(B), inserted “(aggregated across counterparties)” after “principal amount outstanding” and substituted “at such time or on any day during the 15-month period preceding the date of the filing of the petition” for “on any day during the previous 15-month period” in two places.
Par. (25)(A). Pub. L. 109–390, § 5(a)(1)(C), inserted “, as defined in section 761” after “commodity contract” and substituted “repurchase or reverse repurchase transaction (whether or not such repurchase or reverse repurchase transaction is a ‘repurchase agreement’, as defined in this section)” for “repurchase transaction, reverse repurchase transaction,”.
Par. (53B)(A)(i)(II). Pub. L. 109–390, § 5(a)(1)(D)(i)(I), substituted “, precious metals, or other commodity” for “or precious metals”.
Par. (53B)(A)(i)(VIII). Pub. L. 109–390, § 5(a)(1)(D)(i)(III), substituted “option, future, or forward agreement” for “weather derivative, or weather option”.
Par. (53B)(A)(i)(IX), (X). Pub. L. 109–390, § 5(a)(1)(D)(i)(II), (IV), added subcls. (IX) and (X).
Par. (53B)(A)(ii). Pub. L. 109–390, § 5(a)(1)(D)(ii), inserted “or other derivatives” after “dealings in the swap” in subcl. (I) and substituted “future, option, or spot transaction” for “future, or option” in subcl. (II).
Par. (53B)(B). Pub. L. 109–390, § 5(a)(1)(E), substituted “the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act of 2000, the securities laws (as such term is defined in section 3(a)(47) of the Securities Exchange Act of 1934) and the Commodity Exchange Act” for “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”.
2005
Pub. L. 109–8, § 1201(1), substituted “In this title the following definitions shall apply:” for “In this title—” in introductory provisions.
Pars. (1), (2). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (3). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 226(a)(1), added par. (3).
Par. (4). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (4A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 226(a)(2), added par. (4A).
Pars. (5) to (7). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pars. (7A), (7B). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 1007(a)(1), added pars. (7A) and (7B).
Pars. (8) to (10). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (10A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 102(b), added par. (10A).
Pars. (11), (12). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (12A). Pub. L. 109–8, § 1201(8), which directed the substitution of a period for a semicolon at end, could not be executed because par. (12A) ended in a period after amendment by Pub. L. 109–8, § 226(a)(3). See below.
Pub. L. 109–8, § 1201(2), inserted “The term” after par. designation.
Pub. L. 109–8, §§ 211(1), 226(a)(3), added par. (12A) and struck out former par. (12A) which read as follows: “ ‘debt for child support’ means a debt of a kind specified in section 523(a)(5) of this title for maintenance or support of a child of the debtor;”.
Par. (13). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (13A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 306(c)(1), added par. (13A).
Par. (14). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 414, amended par. (14) generally. Prior to amendment, par. (14) consisted of subpars. (A) to (E) defining “disinterested person”.
Par. (14A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 211(2), added par. (14A).
Pars. (15) to (17). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (18). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (18)(A). Pub. L. 109–8, § 1005, substituted “for—
“(i) the taxable year preceding; or
“(ii) each of the 2d and 3d taxable years preceding;
the taxable year” for “for the taxable year preceding the taxable year”.
Pub. L. 109–8, § 1004(1), substituted “$3,237,000” for “$1,500,000” and “not less than 50 percent” for “not less than 80 percent”.
Par. (18)(B)(ii). Pub. L. 109–8, § 1004(2), substituted “$3,237,000” for “$1,500,000” and “50 percent” for “80 percent”.
Par. (19). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pars. (19A), (19B). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 1007(a)(2), added pars. (19A) and (19B).
Pars. (20) to (21B). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (22). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 907(b)(1), added par. (22) and struck out former par. (22) which consisted of introductory provisions and subpars. (A) and (B) defining “financial institution”.
Par. (22A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 907(b)(2), added par. (22A).
Pars. (23), (24). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 802(b), added pars. (23) and (24) and struck out former pars. (23) and (24) which read as follows:
“(23) ‘foreign proceeding’ means proceeding, whether judicial or administrative and whether or not under bankruptcy law, in a foreign country in which the debtor’s domicile, residence, principal place of business, or principal assets were located at the commencement of such proceeding, for the purpose of liquidating an estate, adjusting debts by composition, extension, or discharge, or effecting a reorganization;
“(24) ‘foreign representative’ means duly selected trustee, administrator, or other representative of an estate in a foreign proceeding;”.
Par. (25). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 907(a)(1)(A), substituted “means—” for “means”, designated subsequent provisions as subpar. (A), substituted “, or any other similar agreement” for “, or any combination thereof or option thereon”, and added subpars. (B) to (E).
Par. (26). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 907(b)(3), added par. (26) and struck out former par. (26) which read as follows: “ ‘forward contract merchant’ means a person whose business consists in whole or in part of entering into forward contracts as or with merchants in a commodity, as defined in section 761(8) of this title, or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade;”.
Par. (27). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (27A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 1101(a)(2), added par. (27A). Former par. (27A) redesignated (27B).
Pub. L. 109–8, § 306(c)(2), added par. (27A).
Par. (27B). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 1101(a)(1), redesignated par. (27A) as (27B).
Pars. (28) to (34). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (35). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (35)(B). Pub. L. 109–8, § 1201(3), substituted “paragraphs (23) and (35)” for “paragraphs (21B) and (33)(A)”.
Par. (35A). Pub. L. 109–8, § 1201(2), (4), inserted “The term” after par. designation and substituted a period for “; and” at end.
Pars. (36), (37). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (38). Pub. L. 109–8, § 1201(2), (4), inserted “The term” after par. designation and substituted a period for “; and” at end.
Pars. (38A), (38B). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 907(c), added pars. (38A) and (38B).
Par. (39). Pub. L. 109–8, § 1201(2), inserted “The term” after par. designation.
Par. (39A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 102(k), added par. (39A).
Par. (40). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pars. (40A), (40B). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 1101(b), added pars. (40A) and (40B).
Par. (41). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (41A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 231(b), added par. (41A).
Pars. (42) to (45). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (46). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 907(a)(1)(B), substituted “at any time before” for “on any day during the period beginning 90 days before the date of”.
Par. (47). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 907(a)(1)(C), amended par. (47) generally. Prior to amendment, par. (47) read as follows: “ ‘repurchase agreement’ (which definition also applies to a reverse repurchase agreement) means an agreement, including related terms, which provides for the transfer of certificates of deposit, eligible bankers’ acceptances, or securities that are direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or any agency of the United States against the transfer of funds by the transferee of such certificates of deposit, eligible bankers’ acceptances, or securities with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit, eligible bankers’ acceptances, or securities as described above, at a date certain not later than one year after such transfers or on demand, against the transfer of funds;”.
Par. (48). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 907(a)(1)(D), inserted “, or exempt from such registration under such section pursuant to an order of the Securities and Exchange Commission,” after “1934”.
Par. (48A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 401(a), added par. (48A).
Pars. (49) to (51A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (51B). Pub. L. 109–8, § 1201(2), (5), (8), inserted “The term” after par. designation and “who is not a family farmer” after “income of a debtor” and substituted a period for “thereto having aggregate noncontingent, liquidated secured debts in an amount no more than $4,000,000;”.
Pars. (51C), (51D). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 432(a), added pars. (51C) and (51D) and struck out former par. (51C) which read as follows: “ ‘small business’ means a person engaged in commercial or business activities (but does not include a person whose primary activity is the business of owning or operating real property and activities incidental thereto) whose aggregate noncontingent liquidated secured and unsecured debts as of the date of the petition do not exceed $2,000,000;”.
Pars. (52) to (53A). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (53B). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Pub. L. 109–8, § 907(a)(1)(E), amended par. (53B) generally. Prior to amendment, par. (53B) consisted of introductory provisions and subpars. (A) to (C) defining “swap agreement”.
Par. (53C). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (53D). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (54). Pub. L. 109–8, § 1201(8), substituted a period for semicolon at end.
Pub. L. 109–8, § 1201(6), added par. (54) and struck out former par. (54) which read as follows: “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 debtor’s equity of redemption;”.
Pub. L. 109–8, § 1201(2), inserted “The term” after par. designation.
Par. (54A). Pub. L. 109–8, § 1201(8), which directed the substitution of a period for semicolon at end, could not be executed because par. (54A) ended in a period after amendment by Pub. L. 109–8, § 1201(4). See below.
Pub. L. 109–8, § 1201(4), (7), substituted “The term” for “the term”, realigned left margin, and substituted a period for “; and” at end.
Par. (55). Pub. L. 109–8, § 1201(2), (8), inserted “The term” after par. designation and substituted a period for semicolon at end.
Par. (56A). Pub. L. 109–8, § 1201(8), which directed the substitution of a period for semicolon “in each of paragraphs (40) through (55)” at end, was executed to par. (56A), to reflect the probable intent of Congress, because par. (56A) follows par. (53C) in text.
Pub. L. 109–8, § 1201(2), inserted “The term” after par. designation.
2000
Par. (22). Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(3)], amended par. (22) generally. Prior to amendment par. (22) read as follows: “ ‘financial institution’ means a person that is a commercial or savings bank, industrial savings bank, savings and loan association, or trust company and, when any such person is acting as agent or custodian for a customer in connection with a securities contract, as defined in section 741 of this title, such customer;”.
Par. (54A). Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(4)], added par. (54A).
1994
Par. (3). Pub. L. 103–394, § 501(a)(1), redesignated par. (3) as (21B) and inserted it after par. (21A).
Par. (6). Pub. L. 103–394, § 501(b)(1)(A), substituted “section 761” for “section 761(9)” after “customer, as defined in”.
Par. (12A). Pub. L. 103–394, § 304(a), added par. (12A).
Par. (21B). Pub. L. 103–394, § 501(a)(1), redesignated par. (3) as (21B).
Par. (22). Pub. L. 103–394, § 501(b)(1)(B), substituted “section 741” for “section 741(7)”.
Par. (33)(A). Pub. L. 103–394, § 501(d)(1)(A)(i), struck out “(12 U.S.C. 1813(u))” after “section 3(u) of the Federal Deposit Insurance Act”.
Par. (33)(B). Pub. L. 103–394, § 501(d)(1)(A)(ii), struck out “(12 U.S.C. 1786(r))” after “Act”.
Par. (34). Pub. L. 103–394, § 501(d)(1)(B), struck out “(12 U.S.C. 1752(7))” after “Act”.
Par. (35). Pub. L. 103–394, § 501(b)(1)(C), (d)(1)(C), struck out “(12 U.S.C. 1813(c)(2))” after “Act” in subpar. (A) and substituted “paragraphs (21B)” for “paragraphs (3)” in subpar. (B).
Par. (35A). Pub. L. 103–394, § 501(a)(4), redesignated par. (56) defining “intellectual property” as (35A) and inserted it after par. (35).
Par. (39). Pub. L. 103–394, § 501(a)(5), redesignated par. (57) defining “mask work” as (39) and inserted it after par. (38). Former par. (39) redesignated (51A).
Par. (41). Pub. L. 103–394, § 106, amended par. (41) generally. Prior to amendment, par. (41) read as follows: “ ‘person’ includes individual, partnership, and corporation, but does not include governmental unit, Provided, however, That any governmental unit that acquires an asset from a person as a result of operation of a loan guarantee agreement, or as receiver or liquidating agent of a person, will be considered a person for purposes of section 1102 of this title.”
Par. (42A). Pub. L. 103–394, § 208(a)(1), added par. (42A).
Par. (48). Pub. L. 103–394, § 501(d)(1)(D), struck out “(15 U.S.C. 78q–1)” after “Act of 1934” and “(15 U.S.C. 78c(12))” after “such Act”.
Par. (49)(A)(xii). Pub. L. 103–394, § 501(d)(1)(E)(i), struck out “(15 U.S.C. 77a et seq.)” after “Act of 1933” and “(15 U.S.C. 77c(b))” after “such Act”.
Par. (49)(B). Pub. L. 103–394, § 501(b)(1)(D), (d)(1)(E)(ii), substituted “section 761” for “section 761(13)” in cl. (ii) and struck out “(15 U.S.C. 77c(b))” after “Act of 1933” in cl. (vi).
Par. (51A). Pub. L. 103–394, § 501(a)(2), redesignated par. (39) as (51A) and inserted it after par. (51).
Par. (51B). Pub. L. 103–394, § 218(a), added par. (51B).
Par. (51C). Pub. L. 103–394, § 217(a), added par. (51C).
Par. (53A). Pub. L. 103–394, § 501(a)(3), (b)(1)(E), redesignated par. (54) defining “stockbroker” as (53A) and substituted “section 741” for “section 741(2)” in subpar. (A).
Par. (53B). Pub. L. 103–394, § 501(a)(3), redesignated par. (55) defining “swap agreement” as (53B).
Par. (53C). Pub. L. 103–394, § 501(a)(3), redesignated par. (56) defining “swap participant” as (53C).
Par. (53D). Pub. L. 103–394, § 501(a)(3), (d)(1)(F), redesignated par. (57) defining “timeshare plan” as (53D) and substituted semicolon for period at end.
Par. (54). Pub. L. 103–394, § 501(a)(3), redesignated par. (54) defining “stockbroker” as (53A).
Par. (55). Pub. L. 103–394, § 501(a)(3), redesignated par. (55) defining “swap agreement” as (53B).
Pub. L. 103–394, § 215, inserted “spot foreign exchange agreement,” after “forward foreign exchange agreement,”.
Par. (56). Pub. L. 103–394, § 501(a)(3), redesignated par. (56) defining “swap participant” as (53C).
Pub. L. 103–394, § 501(a)(4), redesignated par. (56) defining “intellectual property” as (35A) and inserted it after par. (35).
Par. (56A). Pub. L. 103–394, § 208(a)(2), added par. (56A) and inserted it after par. defining “swap participant”.
Par. (57). Pub. L. 103–394, § 501(a)(3), redesignated par. (57) defining “timeshare plan” as (53D).
Pub. L. 103–394, § 501(a)(5), redesignated par. (57) defining “mask work” as (39) and inserted it after par. (38).
1992
Par. (21A). Pub. L. 102–486 added par. (21A).
1990
Par. (3). Pub. L. 101–647, § 2522(e)(4), added par. (3). Former par. (3) redesignated (4).
Pars. (4) to (23). Pub. L. 101–647, § 2522(e)(3), redesignated pars. (3) to (22) as (4) to (23), respectively. Former par. (23) redesignated (24).
Par. (24). Pub. L. 101–647, § 2522(e)(3), redesignated par. (23) as (24). Former par. (24) redesignated (25).
Pub. L. 101–311, § 201(1), inserted “as defined in section 761(8) of this title, or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade,” after “transfer of commodity,” and “, including, but not limited to, a repurchase transaction, reverse repurchase transaction, consignment, lease, swap, hedge transaction, deposit, loan, option, allocated transaction, unallocated transaction, or any combination thereof or option thereon” after “entered into”.
Par. (25). Pub. L. 101–647, § 2522(e)(3), redesignated par. (24) as (25). Former par. (25) redesignated (26).
Pub. L. 101–311, § 201(2), substituted “a commodity, as defined in section 761(8) of this title, or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade” for “commodities”.
Pars. (26) to (32). Pub. L. 101–647, § 2522(e)(3), redesignated pars. (25) to (31) as (26) to (32), respectively. Former par. (32) redesignated (36).
Par. (33). Pub. L. 101–647, § 2522(e)(2), added par. (33). Former par. (33) redesignated (37).
Par. (34). Pub. L. 101–647, § 2522(e)(2), added par. (34). Former par. (34) redesignated (38).
Pub. L. 101–311, § 201(4), added par. (34). Former par. (34) redesignated (36).
Par. (35). Pub. L. 101–647, § 2522(e)(2), added par. (35). Former par. (35) redesignated (39).
Pub. L. 101–311, § 201(4), added par. (35). Former par. (35) redesignated (37).
Par. (36). Pub. L. 101–647, § 2522(e)(1), redesignated par. (32) as (36). Former par. (36) redesignated (40).
Pub. L. 101–311, § 201(3), redesignated par. (34) as (36). Former par. (36) redesignated (38).
Pars. (37) to (48). Pub. L. 101–647, § 2522(e)(1), redesignated pars. (33) to (44) as (37) to (48), respectively. Former pars. (45) to (48) redesignated (49) to (52), respectively.
Pub. L. 101–311, § 201(3), redesignated pars. (35) to (46) as (37) to (48), respectively. Former pars. (47) and (48) redesignated (49) and (50), respectively.
Pars. (49), (50). Pub. L. 101–647, § 2522(e)(1), redesignated pars. (45) and (46) as (49) and (50), respectively. Former pars. (49) and (50) redesignated (53) and (54) defining “stockbroker”, respectively.
Pub. L. 101–311, § 201(3), redesignated pars. (47) and (48) as (49) and (50), respectively. Former pars. (49) and (50) redesignated (51) and (52), respectively.
Pub. L. 101–311, § 101(2), added pars. (49) and (50). Former pars. (49) and (50) redesignated (51) and (52), respectively.
Par. (51). Pub. L. 101–647, § 2522(e)(1), redesignated par. (47) as (51). Former par. (51) redesignated (55) defining “swap agreement”.
Pub. L. 101–311, § 201(3), redesignated par. (49) as (51). Former par. (51) redesignated (53).
Pub. L. 101–311, § 101(1), redesignated par. (49) as (51). Former par. (51) redesignated (53).
Par. (52). Pub. L. 101–647, § 2522(e)(1), redesignated par. (48) as (52). Former par. (52) redesignated (56) defining “swap participant”.
Pub. L. 101–311, § 201(3), redesignated par. (50) as (52). Former par. (52) redesignated (54) defining “transfer”.
Pub. L. 101–311, § 101(1), redesignated par. (50) as (52). Former par. (52) redesignated (54).
Par. (53). Pub. L. 101–647, § 2522(e)(1), redesignated par. (49) as (53). Former par. (53) redesignated (57) defining “timeshare plan”.
Pub. L. 101–311, § 201(3), redesignated par. (51) as (53). Former par. (53) redesignated (55) defining “United States”.
Pub. L. 101–311, § 101(1), redesignated par. (51) as (53). Former par. (53) redesignated (55).
Par. (54). Pub. L. 101–647, § 2522(e)(1), redesignated par. (50) as (54) defining “stockbroker”.
Pub. L. 101–311, § 201(3), redesignated par. (52) as (54) defining “transfer”. Former par. (54) redesignated (56) defining “intellectual property”.
Pub. L. 101–311, § 101(1), redesignated par. (52) as (54).
Par. (55). Pub. L. 101–647, § 2522(e)(1), redesignated par. (51) as (55) defining “swap agreement”.
Pub. L. 101–311, § 201(3), redesignated par. (53) as (55) defining “United States”. Former par. (55) redesignated (57) defining “mask work”.
Pub. L. 101–311, § 101(1), redesignated par. (53) as (55).
Par. (56). Pub. L. 101–647, § 2522(e)(1), redesignated par. (52) as (56) defining “swap participant”.
Pub. L. 101–311, § 201(3), redesignated par. (54) as (56) defining “intellectual property”.
Par. (57). Pub. L. 101–647, § 2522(e)(1), redesignated par. (53) as (57) defining “timeshare plan”.
Pub. L. 101–311, § 201(3), redesignated par. (55) as (57) defining “mask work”.
1988
Par. (31). Pub. L. 100–597 inserted “and a municipality” after “partnership” in subpar. (A) and added subpar. (C).
Pars. (52), (53). Pub. L. 100–506 added pars. (52) and (53).
1986
Par. (14). Pub. L. 99–554, § 201(1), substituted “governmental unit, and United States trustee” for “and governmental unit”.
Pars. (17), (18). Pub. L. 99–554, § 251(2), (3), added pars. (17) and (18) and redesignated former pars. (17) and (18) as (19) and (20), respectively.
Par. (19). Pub. L. 99–554, § 251(1), (2), redesignated former par. (17) as (19) and inserted “(except when such term appears in the term ‘family farmer’)”. Former par. (19) redesignated (21).
Pars. (20) to (25). Pub. L. 99–554, § 251(2), redesignated former pars. (18) to (23) as (20) to (25), respectively. Former pars. (24) and (25) redesignated (26) and (27), respectively.
Par. (26). Pub. L. 99–554, § 201(2), inserted “(but not a United States trustee while serving as a trustee in a case under this title)”.
Pub. L. 99–554, § 251(2), redesignated former par. (24) as (26). Former par. (26) redesignated (28).
Pars. (27) to (42). Pub. L. 99–554, § 251(2), redesignated former pars. (25) to (40) as (27) to (42), respectively. Former pars. (41) and (42) redesignated (43) and (44), respectively.
Par. (43). Pub. L. 99–554, § 251(2), redesignated former par. (41) as (43). Former par. (43) redesignated (45).
Par. (43)(A)(xv). Pub. L. 99–554, § 283(a)(1), substituted “security” for “secuity”.
Pars. (44) to (50). Pub. L. 99–554, § 251(2), redesignated former pars. (42) to (48) as (44) to (50), respectively. Former par. (49) redesignated (51).
Par. (51). Pub. L. 99–554, § 283(a)(2), substituted a period for the semicolon at the end thereof.
Pub. L. 99–554, § 251(2), redesignated former par. (49) as (51).
1984
Par. (2)(D). Pub. L. 98–353, § 421(a), struck out “or all” after “business”.
Par. (8)(B). Pub. L. 98–353, § 421(b), substituted a semicolon for the colon at end of subpar. (B).
Par. (9)(B). Pub. L. 98–353, § 421(c), inserted reference to section 348(d).
Par. (14). Pub. L. 98–353, § 421(d), inserted “and” after “trust,”.
Pars. (19) to (21). Pub. L. 98–353, § 421(j)(3), (4), added par. (19) and redesignated former pars. (19), (20), and (21) as (20), (21), and (24), respectively.
Pars. (22), (23). Pub. L. 98–353, § 421(j)(2), (5), added pars. (22) and (23) and redesignated former pars. (22) and (23) as (25) and (26), respectively.
Pars. (24) to (26). Pub. L. 98–353, § 421(j)(2), redesignated former pars. (21) to (23) as (24) to (26), respectively. Former pars. (24) to (26) redesignated (27) to (29), respectively.
Par. (27). Pub. L. 98–353, § 421(e), (j)(2), redesignated former par. (24) as (27) and substituted “stockbroker” for “stock broker”. Former par. (27) redesignated (30).
Par. (28). Pub. L. 98–353, § 421(j)(2), redesignated former par. (25) as (28). Former par. (28) redesignated (31).
Par. (29). Pub. L. 98–353, § 421(f), (j)(2), redesignated former par. (26) as (29) and, in subpar. (B)(ii), substituted “nonpartnership” and “(A)” for “separate” and “(A)(ii)”, respectively, wherever appearing. Former par. (29) redesignated (32).
Pars. (30) to (32). Pub. L. 98–353, § 421(j)(2), redesignated former pars. (27) to (29) as (30) to (32), respectively. Former pars. (30) to (32) redesignated (33) to (35), respectively.
Par. (33). Pub. L. 98–353, § 421(g), (j)(2), redesignated former par. (30) as (33) and amended definition of “person” generally, thereby inserting proviso relating to consideration of certain governmental units as persons for purposes of section 1102 of this title. Former par. (33) redesignated (36).
Par. (34). Pub. L. 98–353, § 421(j)(2), redesignated former par. (31) as (34). Former par. (34) redesignated (37).
Pars. (35), (36). Pub. L. 98–353, § 421(j)(2), redesignated former pars. (32) and (33) as (35) and (36), respectively. Former pars. (35) and (36), as added by Pub. L. 98–353, § 391(2), redesignated (38) and (39), respectively.
Pub. L. 98–353, § 391, added pars. (35) and (36), and redesignated former pars. (35) and (36) as (37) and (38) which were again redesignated as (40) and (41), respectively.
Par. (37). Pub. L. 98–353, § 421(j)(2), redesignated former par. (34) as (37). Former par. (37) redesignated successively as (39) and again as (42).
Par. (38). Pub. L. 98–353, §§ 391(2), 421(j)(2), added par. (35) and redesignated such par. (35) as (38). Former par. (38) redesignated successively as (40) and again as (43).
Par. (39). Pub. L. 98–353, §§ 391(2), 421(j)(2), added par. (36) and redesignated such par. (36) as (39). Former par. (39) redesignated successively as (41) and again as (45).
Par. (40). Pub. L. 98–353, §§ 391(1), 421(j)(2), redesignated successively former par. (35) as (37) and again as (40). Former par. (40) redesignated successively as (42) and again as (46).
Par. (41). Pub. L. 98–353, §§ 391(1), 401(1), 421(h), (j)(2), redesignated successively former par. (36) as (38) and again as (41), and, in subpar. (B)(vi), substituted “certificate of a kind specified in subparagraph (A)(xii)” for “certificate specified in clause (xii) of subparagraph (A)” and substituted “required to be the subject of a registration statement” for “the subject of such registration statement”. Former par. (41) redesignated successively as (43), again as (44), and again as (48).
Par. (42). Pub. L. 98–353, §§ 391(1), 421(j)(2), redesignated successively former par. (37) as (39) and again as (42).
Par. (43). Pub. L. 98–353, §§ 391(1), 421(j)(2), redesignated successively former par. (38) as (40) and again as (43).
Pub. L. 98–353, § 401, redesignated former par. (43), originally par. (41), as (44), and added another par. (43) which was redesignated (47).
Par. (44). Pub. L. 98–353, § 421(j)(6), added par. (44). Former par. (44) originally was par. (41) and was redesignated successively as (43), again as (44), and again as (48).
Pars. (45), (46). Pub. L. 98–353, §§ 391(1), 421(j)(1), redesignated successively former pars. (39) and (40) as (41) and (42), and again as (45) and (46), respectively.
Par. (47). Pub. L. 98–353, §§ 401(2), 421(j)(1), added par. (43) and redesignated such par. (43) as (47).
Par. (48). Pub. L. 98–353, §§ 391(1), 401(1), 421(i), (j)(1), redesignated successively former par. (41) as (43), again as (44), and again as (48), and substituted “and foreclosure of the debtor’s equity of redemption; and” for the period at the end.
Par. (49). Pub. L. 98–353, § 421(j)(7), added par. (49).
1982
Par. (35). Pub. L. 97–222, § 1(a)(2), added par. (35). Former par. (35) redesignated (36).
Par. (36). Pub. L. 97–222, § 1(a)(1), (b), (c), redesignated par. (35) as (36) and substituted “is required to be the subject of a registration statement” for “is the subject of a registration statement” in subpar. (A)(xii) and substituted “forward contract” for “forward commodity contract” in subpar. (B)(iii). Former par. (36) redesignated (37).
Pars. (37) to (39). Pub. L. 97–222, § 1(a)(1), redesignated pars. (36) to (38) as (37) to (39), respectively. Former par. (39) redesignated (40).
Pars. (40), (41). Pub. L. 97–222, § 1(a)(1), (d), redesignated former par. (39) as (40) and restructured its provisions by dividing the former introductory provisions into subpars. (A) and (B) and by redesignating former subpars. (A) and (B) as cls. (i) and (ii), respectively, of subpar. (B). Former par. (40) redesignated (41).
Statutory Notes and Related Subsidiaries
Effective Date of 2025 Amendment
Amendment by Pub. L. 119–27 effective on the earlier of the date that is 18 months after , or the date that is 120 days after the date on which the primary Federal payment stablecoin regulators issue any final regulations implementing Pub. L. 119–27, see section 20 of Pub. L. 119–27, set out as an Effective Date note under section 5901 of Title 12, Banks and Banking.
Effective Date of 2022 Amendment; Retroactive Application
Pub. L. 117–151, § 2(h)(2), , 136 Stat. 1299, provided that:
“The amendments made by subsections (a), (d), (e), and (f) [amending this section and sections 1182, 1183, and 1191 of this title, respectively] shall apply with respect to any case that—
“(A) is commenced under title 11, United States Code, on or after ; and
“(B) with respect to a case that was commenced on or after and before the date of enactment of this Act [], is pending on the date of enactment of this Act.”
Effective Date of 2020 Amendment
Pub. L. 116–136, div. A, title I, § 1113(b)(1)(D)(i), , 134 Stat. 312, provided that: “The amendments made by subparagraphs (A) and (B) [amending this section and section 1325 of this title] shall apply to any case commenced before, on, or after the date of enactment of this Act [].”
Pub. L. 116–136, div. A, title I, § 1113(b)(2)(B), , 134 Stat. 312, as amended by Pub. L. 117–5, § 2(a)(2), , 135 Stat. 249, provided that: “The amendments made by subparagraph (A) [amending this section and sections 1325 and 1329 of this title] shall take effect on the date that is 2 years after the date of enactment of this Act [].”
Effective Date of 2019 Amendment
Pub. L. 116–54, § 5, , 133 Stat. 1087, provided that: “This Act [see Short Title of 2019 Amendment note set out under this section] and the amendments made by this Act shall take effect 180 days after the date of enactment of this Act [].”
Effective Date of 2006 Amendment
Pub. L. 109–390, § 7, , 120 Stat. 2700, provided that: “The amendments made by this Act [see Short Title of 2006 Amendment note set out under this section] shall not apply to any cases commenced under title 11, United States Code, or appointments made under any Federal or State law, before the date of the enactment of this Act [].”
Effective Date of 2005 Amendment
Pub. L. 109–8, title XV, § 1501, , 119 Stat. 216, provided that:
“(a) Effective Date.—
Except as otherwise provided in this Act, this Act [see Tables for classification] 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 [amending sections 104, 522, 727, 1141, 1228, and 1328 of this title] shall apply with respect to cases commenced under title 11, United States Code, on or after the date of the enactment of this Act [].”
Effective Date of 1994 Amendment
Pub. L. 103–394, title VII, § 702, , 108 Stat. 4150, provided that:
“(a) Effective Date.—
Except as provided in subsection (b), this Act [see Tables for classification] shall take effect on the date of the enactment of this Act [].
“(b) Application of Amendments.—
(1) Except as provided in paragraph (2), the amendments made by this Act shall not apply with respect to cases commenced under title 11 of the United States Code before the date of the enactment of this Act.
“(2) (A) Paragraph (1) shall not apply with respect to the amendment made by section 111 [amending section 524 of this title].
“(B) The amendments made by sections 113 and 117 [amending sections 106 and 330 of this title] shall apply with respect to cases commenced under title 11 of the United States Code before, on, and after the date of the enactment of this Act.
“(C) Section 1110 of title 11, United States Code, as amended by section 201 of this Act, shall apply with respect to any lease, as defined in such section 1110(c) as so amended, entered into in connection with a settlement of any proceeding in any case pending under title 11 of the United States Code on the date of the enactment of this Act.
“(D) The amendments made by section 305 [amending sections 1123, 1222, and 1322 of this title] shall apply only to agreements entered into after the date of enactment of this Act.”
Effective Date of 1992 Amendment
Pub. L. 102–486, title XXX, § 3017(c), , 106 Stat. 3131, provided that:
“(1) Except as provided in paragraph (2), the amendments made by this section [amending this section and section 541 of this title] shall take effect on the date of the enactment of this Act [].
“(2) The amendments made by this section shall not apply with respect to cases commenced under title 11 of the United States Code before the date of the enactment of this Act.”
Effective Date of 1988 Amendment
Pub. L. 100–597, § 12, , 102 Stat. 3030, provided that:
“(a) Effective Date.—
Except as provided in subsection (b), this Act and the amendments made by this Act [enacting sections 927 to 929 of this title, amending this section and sections 109, 901, 902, 922, 926, and 943 of this title, and renumbering section 927 of this title as 930] shall take effect on the date of the enactment of this Act [].
“(b) Application of Amendments.—
The amendments made by this Act shall not apply with respect to cases commenced under title 11 of the United States Code before the date of the enactment of this Act [].”
Pub. L. 100–506, § 2, , 102 Stat. 2539, provided that:
“(a) Effective Date.—
Except as provided in subsection (b), this Act and the amendments made by this Act [amending this section and section 365 of this title] shall take effect on the date of the enactment of this Act [].
“(b) Application of Amendments.—
The amendments made by this Act shall not apply with respect to any case commenced under title 11 of the United States Code before the date of the enactment of this Act [].”
Effective Date of 1986 Amendment
Effective date and applicability of amendment by section 201 of Pub. L. 99–554 dependent upon the judicial district involved, see section 302(d), (e) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.
Amendment by section 251 of Pub. L. 99–554 effective 30 days after , but not applicable to cases commenced under this title before that date, see section 302(a), (c)(1) of Pub. L. 99–554.
Amendment by section 283 of Pub. L. 99–554 effective 30 days after , see section 302(a) of Pub. L. 99–554.
Effective Date of 1984 Amendment
Pub. L. 98–353, title III, § 552, formerly § 553, , 98 Stat. 392, as renumbered by Pub. L. 98–531, § 1(2), , 98 Stat. 2704, provided that:
“(a) Except as otherwise provided in this section the amendments made by this title [see Tables for classification] shall become effective to cases filed 90 days after the date of enactment of this Act [].
“(b) The amendments made by section 426(b) [amending section 303 of this title] shall become effective upon the date of enactment of this Act.
“(c) The amendments made by subtitle J [enacting section 1113 of this title], shall become effective as provided in section 541(c) [set out as an Effective Date note under section 1113 of this title].”
Short Title of 2023 Amendment
Pub. L. 118–24, § 1, , 137 Stat. 128, provided that: “This Act [amending provisions set out as a note under section 707 of this title] may be cited as the ‘National Guard and Reservists Debt Relief Extension Act of 2023’.”
Short Title of 2022 Amendment
Pub. L. 117–151, § 1, , 136 Stat. 1298, provided that: “This Act [amending this section, sections 104, 109, 1182, 1183, and 1191 of this title, and section 589a of Title 28, Judiciary and Judicial Procedure, and enacting provisions set out as notes under this section, sections 104 and 109 of this title, and section 589a of Title 28] may be cited as the ‘Bankruptcy Threshold Adjustment and Technical Corrections Act’.”
Short Title of 2021 Amendment
Pub. L. 117–5, § 1, , 135 Stat. 249, provided that: “This Act [amending section 1329 of this title and provisions set out as notes under this section and sections 1182 and 1329 of this title] may be cited as the ‘COVID–19 Bankruptcy Relief Extension Act of 2021’.”
Short Title of 2019 Amendment
Pub. L. 116–54, § 1, , 133 Stat. 1079, provided that: “This Act [enacting subchapter V of chapter 11 of this title, amending this section, sections 103, 322, 326, 347, 363, 364, 523, 524, 547, 557, 1102, and 1146 of this title, and sections 586, 589b, 1409, and 1930 of Title 28, Judiciary and Judicial Procedure, and enacting provisions set out as a note under this section] may be cited as the ‘Small Business Reorganization Act of 2019’.”
Pub. L. 116–53, § 1, , 133 Stat. 1078, provided that: “This Act [amending provisions set out as a note under section 707 of this title] may be cited as the ‘National Guard and Reservists Debt Relief Extension Act of 2019’.”
Pub. L. 116–52, § 1, , 133 Stat. 1076, provided that: “This Act [amending this section] may be cited as the ‘Honoring American Veterans in Extreme Need Act of 2019’ or the ‘HAVEN Act’.”
Pub. L. 116–51, § 1, , 133 Stat. 1075, provided that: “This Act [amending this section] may be cited as the ‘Family Farmer Relief Act of 2019’.”
Short Title of 2015 Amendment
Pub. L. 114–107, § 1, , 129 Stat. 2223, provided that: “This Act [amending provisions set out as a note under section 707 of this title] may be cited as the ‘National Guard and Reservist Debt Relief Extension Act of 2015’.”
Short Title of 2011 Amendment
Pub. L. 112–64, § 1, , 125 Stat. 766, provided that: “This Act [amending provisions set out as a note under section 707 of this title] may be cited as the ‘National Guard and Reservist Debt Relief Extension Act of 2011’.”
Short Title of 2010 Amendment
Pub. L. 111–327, § 1, , 124 Stat. 3557, provided that: “This Act [amending this section, sections 103, 105 to 107, 109 to 111, 303, 308, 348, 362, 363, 505, 507, 521 to 524, 526, 527, 541, 554, 704, 707, 723, 724, 726, 901, 1104, 1106, 1111, 1112, 1127, 1129, 1141, 1145, 1202, 1302, 1304, 1307, 1308, 1322, 1325, 1511, 1519, 1521, and 1529 of this title, section 157 of Title 18, Crimes and Criminal Procedure, sections 158, 159, and 586 of Title 28, Judiciary and Judicial Procedure, and provisions set out as a note under section 507 of this title] may be cited as the ‘Bankruptcy Technical Corrections Act of 2010’.”
Short Title of 2009 Amendment
Pub. L. 111–16, § 1, , 123 Stat. 1607, provided that: “This Act [amending sections 109, 322, 332, 342, 521, 704, 749, and 764 of this title, sections 983, 1514, 1963, 2252A, 2339B, 3060, 3432, 3509, and 3771 of Title 18, Crimes and Criminal Procedure, section 7 of the Classified Information Procedures Act set out in the Appendix to Title 18, section 853 of Title 21, Food and Drugs, and sections 636, 1453, and 2107 of Title 28, Judiciary and Judicial Procedure, and enacting provisions set out as a note under section 109 of this title] may be cited as the ‘Statutory Time-Periods Technical Amendments Act of 2009’.”
Short Title of 2008 Amendment
Pub. L. 110–438, § 1, , 122 Stat. 5000, provided that: “This Act [amending section 707 of this title and enacting provisions set out as a note under section 707 of this title] may be cited as the ‘National Guard and Reservists Debt Relief Act of 2008’.”
Short Title of 2006 Amendment
Pub. L. 109–439, § 1, , 120 Stat. 3285, provided that: “This Act [amending section 1325 of this title] may be cited as the ‘Religious Liberty and Charitable Donation Clarification Act of 2006’.”
Pub. L. 109–390, § 1, , 120 Stat. 2692, provided that: “This Act [amending this section, sections 362, 546, and 741 of this title, sections 1787, 1821, 4403, and 4404 of Title 12, Banks and Banking, and section 78eee of Title 15, Commerce and Trade, and enacting provisions set out as notes under this section] may be cited as the ‘Financial Netting Improvements Act of 2006’.”
Short Title of 2005 Amendment
Pub. L. 109–8, § 1(a), , 119 Stat. 23, provided that: “This Act [see Tables for classification] may be cited as the ‘Bankruptcy Abuse Prevention and Consumer Protection Act of 2005’.”
Pub. L. 109–8, title III, § 332(a), , 119 Stat. 103, provided that: “This section [amending section 303 of this title and section 157 of Title 18, Crimes and Criminal Procedure] may be cited as the ‘Involuntary Bankruptcy Improvement Act of 2005’.”
Short Title of 2004 Amendment
Pub. L. 108–369, § 1, , 118 Stat. 1749, provided that: “This Act [amending sections 1201 to 1208 and 1221 to 1231 of this title and enacting and amending provisions set out as notes under section 1201 of this title] may be cited as the ‘Family Farmer Bankruptcy Relief Act of 2004’.”
Short Title of 2003 Amendment
Pub. L. 108–73, § 1, , 117 Stat. 891, provided that: “This Act [amending sections 1201 to 1208 and 1221 to 1231 of this title and enacting and amending provisions set out as notes under section 1201 of this title] may be cited as the ‘Family Farmer Bankruptcy Relief Act of 2003’.”
Short Title of 2002 Amendment
Pub. L. 107–377, § 1, , 116 Stat. 3115, provided that: “This Act [amending sections 1201 to 1208 and 1221 to 1231 of this title, and enacting and amending provisions set out as notes under section 1201 of this title] may be cited as the ‘Protection of Family Farmers Act of 2002’.”
Short Title of 1998 Amendment
Pub. L. 105–183, § 1, , 112 Stat. 517, provided that: “This Act [amending sections 544, 546, 548, 707, and 1325 of this title and enacting provisions set out as notes under section 544 of this title] may be cited as the ‘Religious Liberty and Charitable Donation Protection Act of 1998’.”
Short Title of 1994 Amendment
Pub. L. 103–394, § 1(a), , 108 Stat. 4106, provided that: “This Act [see Tables for classification] may be cited as the ‘Bankruptcy Reform Act of 1994’.”
Short Title of 1990 Amendment
Pub. L. 101–581, § 1, , 104 Stat. 2865, and Pub. L. 101–647, title XXXI, § 3101, , 104 Stat. 4916, provided respectively that such Act and such title [amending sections 523 and 1328 of this title and enacting provisions set out as a note under section 523 of this title] may be cited as the “Criminal Victims Protection Act of 1990”.
Short Title of 1988 Amendment
Pub. L. 100–334, § 1, , 102 Stat. 610, provided that: “This Act [enacting section 1114 of this title, amending section 1129 of this title, enacting provisions set out as a note under section 1114 of this title, and amending and repealing provisions set out as notes under section 1106 of this title] may be cited as the ‘Retiree Benefits Bankruptcy Protection Act of 1988’.”
Short Title of 1984 Amendment
Pub. L. 98–353, title III, § 361, , 98 Stat. 361, provided that: “This subtitle [subtitle C (§§ 361–363) of title III of Pub. L. 98–353, amending sections 362, 365, and 541 of this title] may be cited as the ‘Leasehold Management Bankruptcy Amendments Act of 1983’.”
Savings Provision
Pub. L. 109–8, title IX, § 912, as added Pub. L. 109–390, § 5(d), , 120 Stat. 2698, provided that: “The meanings of terms used in this title [see Tables for classification] are applicable for the 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 similar terms under any other statute, regulation, or rule, including the Gramm-Leach-Bliley Act [Pub. L. 106–102, see Short Title of 1999 Amendment note set out under section 1811 of Title 12, Banks and Banking], the Legal Certainty for Bank Products Act of 2000 [7 U.S.C. 27 to 27f], the securities laws (as such term is defined in section 3(a)(47) of the Securities Exchange Act of 1934 [15 U.S.C. 78c(a)(47)]), and the Commodity Exchange Act [7 U.S.C. 1 et seq.].”
Separability
Pub. L. 103–394, title VII, § 701, , 108 Stat. 4150, provided that: “If any provision of this Act [see Tables for classification] or amendment made by this Act or the application of such provision or amendment to any person or circumstance is held to be unconstitutional, the remaining provisions of and amendments made by this Act and the application of such other provisions and amendments to any person or circumstance shall not be affected thereby.”
Pub. L. 98–353, title III, § 551, , 98 Stat. 391, provided that: “If any provision of this title [title III (§§ 301–553) of Pub. L. 98–353, see Tables for classification] or any amendment made by this title, or the application thereof to any person or circumstance is held invalid, the provisions of every other part, and their application shall not be affected thereby.”
Construction
Pub. L. 109–8, title X, § 1007(e), , 119 Stat. 188, provided that: “Nothing in this section [amending this section and sections 109, 1203, and 1206 of this title] shall change, affect, or amend the Fishery Conservation and Management Act of 1976 (16 U.S.C. 1801 et seq.).”
Pub. L. 109–8, title XI, § 1101(c), , 119 Stat. 189, provided that: “The amendments made by subsection (a) of this section [amending this section] shall not affect the interpretation of section 109(b) of title 11, United States Code.”
Nonlimitation of Information
Pub. L. 109–8, title I, § 102(e), , 119 Stat. 33, provided that: “Nothing in this title [see Tables for classification] 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.”
Judicial Education
Pub. L. 109–8, title XII, § 1226, , 119 Stat. 199, provided that: “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 [see Short Title of 2005 Amendment note above] 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.”
Court Rules and Judicial Documents
Adjustment of Dollar Amounts
The dollar amounts specified in this section were adjusted by notices of the Judicial Conference of the United States pursuant to section 104 of this title as follows:
By notice dated , 90 F.R. 8941, effective , in par. (3), dollar amount “226,850” was adjusted to “256,800”; in par. (18), dollar amount “11,097,350” was adjusted to “12,562,250” each time it appeared; in par. (19A), dollar amount “2,268,550” was adjusted to “2,568,000” each time it appeared; and, in par. (51D), dollar amount “3,024,725” was adjusted to “3,424,000” each time it appeared. See notice of the Judicial Conference of the United States set out as a note under section 104 of this title.
By notice dated , 87 F.R. 6625, effective , in par. (3), dollar amount “204,425” was adjusted to “226,850”; in par. (18), dollar amount “10,000,000” was adjusted to “11,097,350” each time it appeared; in par. (19A), dollar amount “2,044,225” was adjusted to “2,268,550” each time it appeared; and, in par. (51D), dollar amount “2,725,625” was adjusted to “3,024,725” each time it appeared.
By notice dated , 84 F.R. 3488, effective , in par. (3), dollar amount “192,450” was adjusted to “204,425”; in par. (18), dollar amount “4,153,150” was adjusted to “4,411,400” each time it appeared; in par. (19A), dollar amount “1,924,550” was adjusted to “2,044,225” each time it appeared; and, in par. (51D), dollar amount “2,566,050” was adjusted to “2,725,625” each time it appeared.
By notice dated , 81 F.R. 8748, effective , in par. (3), dollar amount “186,825” was adjusted to “192,450”; in par. (18), dollar amount “4,031,575” was adjusted to “4,153,150” each time it appeared; in par. (19A), dollar amount “1,868,200” was adjusted to “1,924,550” each time it appeared; and, in par. (51D), dollar amount “2,490,925” was adjusted to “2,566,050” each time it appeared.
By notice dated , 78 F.R. 12089, effective , in par. (3), dollar amount “175,750” was adjusted to “186,825”; in par. (18), dollar amount “3,792,650” was adjusted to “4,031,575” each time it appeared; in par. (19A), dollar amount “1,757,475” was adjusted to “1,868,200” each time it appeared; and, in par. (51D), dollar amount “2,343,300” was adjusted to “2,490,925” each time it appeared.
By notice dated , 75 F.R. 8747, effective , in par. (3), dollar amount “164,250” was adjusted to “175,750”; in par. (18)(A), (B)(ii), dollar amount “3,544,525” was adjusted to “3,792,650” each time it appeared; in par. (19A)(A)(i), (B)(ii)(II), dollar amount “1,642,500” was adjusted to “1,757,475” each time it appeared; and, in par. (51D)(A), (B), dollar amount “2,190,000” was adjusted to “2,343,300” each time it appeared.
By notice dated , 72 F.R. 7082, effective , in par. (3), dollar amount “150,000” was adjusted to “164,250”; in par. (18), dollar amount “3,237,000” was adjusted to “3,544,525” each time it appeared; in par. (19A), dollar amount “1,500,000” was adjusted to “1,642,500” each time it appeared; and, in par. (51D), dollar amount “2,000,000” was adjusted to “2,190,000” each time it appeared. In par. (18), Pub. L. 116–51 subsequently substituted “10,000,000” for “3,237,000” both places it appeared, see 2019 Amendment note above.
Credits
1978–2025 · 21 acts
- 1978Pub. L. 95–598, , 92 Stat. 2549
- 1982Pub. L. 97–222, § 1, , 96 Stat. 235
- 1984Pub. L. 98–353, title III, §§ 391, 401, 421, , 98 Stat. 364, 366, 367
- 1986Pub. L. 99–554, title II, §§ 201, 251, 283(a), , 100 Stat. 3097, 3104, 3116
- 1988Pub. L. 100–506, § 1(a), , 102 Stat. 2538
- 1988Pub. L. 100–597, § 1, , 102 Stat. 3028
- 1990Pub. L. 101–311, title I, § 101, title II, § 201, , 104 Stat. 267, 268
- 1990Pub. L. 101–647, title XXV, § 2522(e), , 104 Stat. 4867
- 1992Pub. L. 102–486, title XXX, § 3017(a), , 106 Stat. 3130
- 1994Pub. L. 103–394, title I, § 106, title II, §§ 208(a), 215, 217(a), 218(a), title III, § 304(a), title V, § 501(a), (b)(1), (d)(1), , 108 Stat. 4111, 4124, 4126–4128, 4132, 4141–4143
- 2000Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(3), (4)], , 114 Stat. 2763, 2763A–393, 2763A–394
- 2005Pub. L. 109–8, title I, § 102(b), (k), title II, §§ 211, 226(a), 231(b), title III, § 306(c), title IV, §§ 401(a), 414, 432(a), title VIII, § 802(b), title IX, § 907(a)(1), (b), (c), title X, §§ 1004, 1005, 1007(a), title XI, § 1101(a), (b), title XII, § 1201, , 119 Stat. 32, 35, 50, 66, 73, 80, 104, 107, 110, 145, 170, 175, 186, 187, 189, 192
- 2006Pub. L. 109–390, § 5(a)(1), , 120 Stat. 2695
- 2010Pub. L. 111–327, § 2(a)(1), , 124 Stat. 3557
- 2019Pub. L. 116–51, § 2, , 133 Stat. 1075
- 2019Pub. L. 116–52, § 2, , 133 Stat. 1076
- 2019Pub. L. 116–54, § 4(a)(1), , 133 Stat. 1085
- 2019Pub. L. 116–92, div. A, title XVII, § 1736, , 133 Stat. 1819
- 2020Pub. L. 116–136, div. A, title I, § 1113(a)(4)(A), (b)(1)(A), (2)(A)(i), , 134 Stat. 311, 312
- 2022Pub. L. 117–151, § 2(a), , 136 Stat. 1298
- 2025Pub. L. 119–27, § 11(b), , 139 Stat. 457.
Show as published
(Pub. L. 95–598, , 92 Stat. 2549; Pub. L. 97–222, § 1, , 96 Stat. 235; Pub. L. 98–353, title III, §§ 391, 401, 421, , 98 Stat. 364, 366, 367; Pub. L. 99–554, title II, §§ 201, 251, 283(a), , 100 Stat. 3097, 3104, 3116; Pub. L. 100–506, § 1(a), , 102 Stat. 2538; Pub. L. 100–597, § 1, , 102 Stat. 3028; Pub. L. 101–311, title I, § 101, title II, § 201, , 104 Stat. 267, 268; Pub. L. 101–647, title XXV, § 2522(e), , 104 Stat. 4867; Pub. L. 102–486, title XXX, § 3017(a), , 106 Stat. 3130; Pub. L. 103–394, title I, § 106, title II, §§ 208(a), 215, 217(a), 218(a), title III, § 304(a), title V, § 501(a), (b)(1), (d)(1), , 108 Stat. 4111, 4124, 4126–4128, 4132, 4141–4143; Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(3), (4)], , 114 Stat. 2763, 2763A–393, 2763A–394; Pub. L. 109–8, title I, § 102(b), (k), title II, §§ 211, 226(a), 231(b), title III, § 306(c), title IV, §§ 401(a), 414, 432(a), title VIII, § 802(b), title IX, § 907(a)(1), (b), (c), title X, §§ 1004, 1005, 1007(a), title XI, § 1101(a), (b), title XII, § 1201, , 119 Stat. 32, 35, 50, 66, 73, 80, 104, 107, 110, 145, 170, 175, 186, 187, 189, 192; Pub. L. 109–390, § 5(a)(1), , 120 Stat. 2695; Pub. L. 111–327, § 2(a)(1), , 124 Stat. 3557; Pub. L. 116–51, § 2, , 133 Stat. 1075; Pub. L. 116–52, § 2, , 133 Stat. 1076; Pub. L. 116–54, § 4(a)(1), , 133 Stat. 1085; Pub. L. 116–92, div. A, title XVII, § 1736, , 133 Stat. 1819; Pub. L. 116–136, div. A, title I, § 1113(a)(4)(A), (b)(1)(A), (2)(A)(i), , 134 Stat. 311, 312; Pub. L. 117–151, § 2(a), , 136 Stat. 1298; Pub. L. 119–27, § 11(b), , 139 Stat. 457.)