< Back to H.R. 5116 (103rd Congress, 1993–1994)

Text of the Bankruptcy Reform Act of 1994

This bill was enacted after being signed by the President on October 22, 1994. The text of the bill below is as of Sep 28, 1994 (Introduced).

This is not the latest text of this bill.

Source: GPO

HR 5116 IH

103d CONGRESS

2d Session

H. R. 5116

To amend title 11 of the United States Code.

IN THE HOUSE OF REPRESENTATIVES

September 28, 1994

Mr. BROOKS (for himself, Mr. FISH, and Mr. SYNAR) introduced the following bill; which was referred to the Committee on the Judiciary


A BILL

To amend title 11 of the United States Code.

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

SECTION 1. SHORT TITLE.

    (a) SHORT TITLE- This Act may be cited as the ‘Bankruptcy Reform Act of 1994’.

    (b) TABLE OF CONTENTS- The table of contents is as follows:

      Sec. 1. Short title.

TITLE I--IMPROVED BANKRUPTCY ADMINISTRATION

      Sec. 101. Expedited hearing on automatic stay.

      Sec. 102. Jurisdiction to review interlocutory orders increasing certain time periods for filing plan.

      Sec. 103. Expedited procedure for reaffirmation of debts.

      Sec. 104. Powers of bankruptcy courts.

      Sec. 105. Participation by bankruptcy administrator at meetings of creditors and equity security holders.

      Sec. 106. Definition relating to eligibility to serve on chapter 11 committees.

      Sec. 107. Increased incentive compensation for trustees.

      Sec. 108. Dollar adjustments.

      Sec. 109. Premerger notification.

      Sec. 110. Allowance of creditor committee expenses.

      Sec. 111. Supplemental injunctions; settlement of claims and demands for payment.

      Sec. 112. Authority of bankruptcy judges to conduct jury trials in civil proceedings.

      Sec. 113. Sovereign immunity.

TITLE II--COMMERCIAL BANKRUPTCY ISSUES

      Sec. 201. Aircraft equipment and vessels; rolling stock equipment.

      Sec. 202. Limitation on liability of non-insider transferee for avoided transfer.

      Sec. 203. Perfection of purchase-money security interest.

      Sec. 204. Continued perfection.

      Sec. 205. Rejection of unexpired leases of real property or timeshare interests.

      Sec. 206. Contents of plan.

      Sec. 207. Priority for independent sales representatives.

      Sec. 208. Exclusion from the estate of interests in liquid and gaseous hydrocarbons transferred by the debtor pursuant to production payment agreements.

      Sec. 209. Seller’s right to reclaim goods.

      Sec. 210. Investment of money of the estate.

      Sec. 211. Election of trustee under chapter 11.

      Sec. 212. Rights of partnership trustee against general partners.

      Sec. 213. Exclusion from the estate of certain accounts and chattel paper.

      Sec. 214. Timely filing of claims, interests, and adminstrative expense requests.

      Sec. 215. Protection of security interest in post-petition rents.

      Sec. 216. Amendment to definition of swap agreement.

TITLE III--CONSUMER BANKRUPTCY ISSUES

      Sec. 301. Period for curing default relating to principal residence.

      Sec. 302. Nondischargeability of fine under chapter 13.

      Sec. 303. Impairment of exemptions.

      Sec. 304. Protection of child support and alimony.

      Sec. 305. Preservation of home mortgage liens.

      Sec. 306. Interest on interest.

      Sec. 307. Exception to discharge.

      Sec. 308. Payments.

TITLE IV--GOVERNMENTAL BANKRUPTCY ISSUES

      Sec. 401. Exception from automatic stay for post-petition property taxes.

      Sec. 402. Municipal bankruptcy.

TITLE V--TECHNICAL CORRECTIONS

      Sec. 501. Amendments to bankruptcy definitions, necessitated by enactment of Public Law 101-647.

      Sec. 502. Title 28 of the United States Code.

TITLE VI--SEVERABILITY; EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

      Sec. 601. Severability.

      Sec. 602. Effective date; application of amendments.

TITLE I--IMPROVED BANKRUPTCY ADMINISTRATION

SEC. 101. EXPEDITED HEARING ON AUTOMATIC STAY.

    The last sentence of section 362(e) of title 11, United States Code, is amended--

      (1) by striking ‘commenced’ and inserting ‘concluded’, and

      (2) by inserting before the period at the end the following:

    ‘, unless the 30-day period is extended with the consent of the parties in interest or for a specific time which the court finds is required by compelling circumstances’.

SEC. 102. JURISDICTION TO REVIEW INTERLOCUTORY ORDERS INCREASING CERTAIN TIME PERIODS FOR FILING PLAN.

    Section 158 of title 28, United States Code, is amended--

      (1) in subsection (a) by striking ‘from’ the first place it appears and all that follows through ‘decrees,’, and inserting the following:

      ‘(1) from final judgments, orders, and decrees;

      ‘(2) from interlocutory orders and decrees issued under section 1121(d) of title 11 increasing the time periods referred to in section 1121 of such title; and

      ‘(3) with leave of the court, from other interlocutory orders and decrees;’.

SEC. 103. EXPEDITED PROCEDURE FOR REAFFIRMATION OF DEBTS.

    (a) REAFFIRMATION- Section 524(c) of title 11, United States Code, is amended--

      (1) in paragraph (2)--

        (A) by inserting ‘(A)’ after ‘(2)’,

        (B) by adding ‘and’ at the end, and

        (C) by inserting after subparagraph (A), as so designated, the following:

        ‘(B) such agreement contains a clear and conspicuous statement which advises the debtor that such agreement is not required under this title, under nonbankruptcy law, or under any agreement not in accordance with the provisions of this subsection;’, and

      (2) in paragraph (3)--

        (A) in the matter preceding subparagraph (A) by striking ‘such agreement’ the last place it appears,

        (B) in subparagraph (A)--

          (i) by inserting ‘such agreement’ after ‘(A)’, and

          (ii) by striking ‘and’ at the end,

        (C) in subparagraph (B)--

          (i) by inserting ‘such agreement’ after ‘(B)’, and

          (ii) by adding ‘and’ at the end, and

      (3) by adding at the end the following:

        ‘(C) the attorney fully advised the debtor of the legal effect and consequences of--

          ‘(i) an agreement of the kind specified in this subsection; and

          ‘(ii) any default under such an agreement;’.

    (b) EFFECT OF DISCHARGE- The third sentence of section 524(d) of title 11, United States Code, is amended in the matter preceding paragraph (1) by inserting ‘and was not represented by an attorney during the course of negotiating such agreement’ after ‘this section’.

SEC. 104. POWERS OF BANKRUPTCY COURTS.

    (a) STATUS CONFERENCES- Section 105 of title 11, United States Code, is amended by adding at the end the following:

    ‘(d) The court, on its own motion or on the motion of any party in interest, may--

      ‘(1) hold a status conference regarding any case or proceeding under this title after notice to the parties in interest; and

      ‘(2) unless inconsistent with another provision of this title or with applicable Bankruptcy Rules, issue an order at any such conference prescribing such limitations and conditions as the court deems appropriate to ensure that the case is handled expeditiously and economically, including an order that--

        ‘(A) sets the date by which the debtor must accept or reject an executory contract or unexpired lease; or

        ‘(B) in a case under chapter 11 of this title--

          ‘(i) sets a date by which the debtor, or trustee if one has been appointed, shall file a disclosure statement and plan;

          ‘(ii) sets a date by which the debtor, or trustee if one has been appointed, shall solicit acceptances of a plan;

          ‘(iii) sets the date by which a party in interest other than a debtor may file a plan;

          ‘(iv) fixes the notice to be provided regarding the hearing on approval of the disclosure statement; or

          ‘(v) provides that the hearing on approval of the disclosure statement may be combined with the hearing on confirmation of the plan.’.

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

      (1) by redesignating subsection (d) as subsection (e), and

      (2) in the second sentence of subsection (c)(2)--

        (A) by inserting ‘(other than a decision not to abstain in a proceeding described in subsection (c)(2))’ after ‘subsection’, and

        (B) by striking ‘Any’ and inserting the following:

    ‘(d) Any’.

    (c) ESTABLISHMENT, OPERATION, AND TERMINATION OF BANKRUPTCY APPELLATE PANEL SERVICE- Section 158(b) of title 28, United States Code, is amended--

      (1) by striking paragraphs (3) and (4),

      (2) by redesignating paragraph (2) as paragraph (4),

      (3) by striking paragraph (1) and inserting the following:

    ‘(1) The judicial council of a circuit shall establish a bankruptcy appellate panel service composed of bankruptcy judges of the districts in the circuit who are appointed by the judicial council in accordance with paragraph (3), to hear and determine, with the consent of all the parties, appeals under subsection (a) unless the judicial council finds that--

      ‘(A) there are insufficient judicial resources available in the circuit; or

      ‘(B) establishment of such service would result in undue delay or increased cost to parties in cases under title 11.

    Not later than 90 days after making the finding, the judicial council shall submit to the Judicial Conference a report containing the factual basis of such finding.

    ‘(2)(A) A judicial council may reconsider, at any time, the finding described in paragraph (1).

    ‘(B) On the request of a majority of the district judges in a circuit for which a bankruptcy appellate panel service is established under paragraph (1), made after the expiration of the 1-year period beginning on the date such service is established, the judicial council of the circuit shall determine whether a circumstance specified in subparagraph (A) or (B) of such paragraphs exists.

    ‘(C) On its own motion, after the expiration of the 3-year period beginning on the date an bankruptcy appellate panel service is established under paragraph (1), the judicial council of the circuit may determine whether a circumstance specified in subparagraph (A) or (B) of such paragraphs exists.

    ‘(D) If the judicial council finds that either of such circumstances exists, the judicial council may provide for the completion of the appeals then pending before such service and the orderly termination of such service.

    ‘(3) Bankruptcy judges appointed under paragraph (1) shall be appointed and may be reappointed under such paragraph.’, and

      (4) by inserting after paragraph (4), as so redesignated, the following:

    ‘(5) An appeal to be heard under this subsection shall be heard by a panel of 3 members of the bankruptcy appellate panel service, except that a member of such service may not hear an appeal originating in the district for which such member is appointed or designated under section 152 of this title.

    ‘(6) Appeals may not be heard under this subsection by a panel of the bankruptcy appellate panel service unless the district judges for the district in which the appeals occur, by majority vote, have authorized such service to hear and determine appeals originating in such district.’.

    (d) APPEALS TO BE HEARD BY BANKRUPTCY APPELLATE PANEL SERVICE- Section 158 of title 28, United States Code, is amended--

      (1) in subsection (c) by striking ‘(c)’ and inserting ‘(2)’, and

      (2) by inserting after subsection (b) the following:

    ‘(c)(1) Subject to subsection (b), each appeal under subsection (a) shall be heard by a 3-judge panel of the bankruptcy appellate panel service established under subsection (b)(1) unless--

      ‘(A) the appellant elects at the time of filing the appeal; or

      ‘(B) any other party elects, not later than 30 days after service of notice of the appeal;

    to have such appeal heard by the district court.’.

    (e) RULES OF PROCEDURE AND EVIDENCE; METHOD OF PRESCRIBING- Section 2073 of title 28, United States Code, is amended--

      (1) in subsection (a)(2) by striking ‘section 2072’ and inserting ‘sections 2072 and 2075’, and

      (2) in subsections (d) and (e) by inserting ‘or 2075’ after ‘2072’ each place it appears.

    (f) EFFECTIVE DATE OF BANKRUPTCY RULES- Section 2075 of title 28, United States Code, is amended by striking ‘ninety days’ and inserting ‘180 days’.

SEC. 105. PARTICIPATION BY BANKRUPTCY ADMINISTRATOR AT MEETINGS OF CREDITORS AND EQUITY SECURITY HOLDERS.

    (a) PRESIDING OFFICER- A bankruptcy administrator appointed under section 302(d)(3)(I) of the Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note; Public Law 99-554; 100 Stat. 3123), as amended by section 317(a) of the Federal Courts Study Committee Implementation Act of 1990 (Public Law 101-650; 104 Stat. 5115), or the bankruptcy administrator’s designee may preside at the meeting of creditors convened under section 341(a) of title 11, United States Code. The bankruptcy administrator or the bankruptcy administrator’s designee may preside at any meeting of equity security holders convened under section 341(b) of title 11, United States Code.

    (b) EXAMINATION OF THE DEBTOR- The bankruptcy administrator or the bankruptcy administrator’s designee may examine the debtor at the meeting of creditors and may administer the oath required under section 343 of title 11, United States Code.

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;’.

SEC. 107. INCREASED INCENTIVE COMPENSATION FOR TRUSTEES.

    Section 326(a) of title 11, United States Code, is amended by striking ‘fifteen’ and all that follows through ‘$3,000’ the last place it appears, and inserting the following:

    ‘25 percent on the first $5,000 or less, 10 percent on any amount in excess of $5,000 but not in excess of $50,000, 5 percent on any amount in excess of $50,000 but not in excess of $1,000,000, and reasonable compensation not to exceed 3 percent of such moneys in excess of $1,000,000’.

SEC. 108. DOLLAR ADJUSTMENTS.

    (a) WHO MAY BE A DEBTOR UNDER CHAPTER 13- Section 109(e) of title 11, United States Code, is amended--

      (1) by striking ‘$100,000’ each place it appears and inserting ‘$250,000’, and

      (2) by striking ‘$350,000’ each place it appears and inserting ‘$750,000’.

    (b) INVOLUNTARY CASES- Section 303(b) of title 11, United States Code, is amended--

      (1) in paragraph (1) by striking ‘$5,000’ and inserting ‘$10,000’, and

      (2) in paragraph (2) by striking ‘$5,000’ and inserting ‘$10,000’.

    (c) PRIORITIES- Section 507(a) of title 11, United States Code, is amended--

      (1) in paragraph (3)(B) by striking ‘$2,000’ and inserting ‘$4,000’,

      (2) in paragraph (4)(B)(i) by striking ‘$2,000’ and inserting ‘$4,000’,

      (3) in paragraph (5) by striking ‘$2,000’ and inserting ‘$4,000’, and

      (4) in paragraph (6) by striking ‘$900’ and inserting ‘$1,800’.

    (d) EXEMPTIONS- Section 522(d) of title 11, United States Code, is amended--

      (1) in paragraph (1) by striking ‘$7,500’ and inserting ‘$15,000’,

      (2) in paragraph (2) by striking ‘$1,200’ and inserting ‘$2,400’,

      (3) in paragraph (3)--

        (A) by striking ‘$200’ and inserting ‘$400’, and

        (B) by striking ‘$4,000’ and inserting ‘$8,000’,

      (4) in paragraph (4) by striking ‘$500’ and inserting ‘$1,000’,

      (5) in paragraph (5)--

        (A) by striking ‘$400’ and inserting ‘$800’, and

        (B) by striking ‘$3,750’ and inserting ‘$7,500’,

      (6) in paragraph (6) by striking ‘$750’ and inserting ‘$1,500’,

      (7) in paragraph (8) by striking ‘$4,000’ and inserting ‘$8,000’, and

      (8) in paragraph (11)(D) by striking ‘$7,500’ and inserting ‘$15,000’.

    (e) FUTURE ADJUSTMENTS- Section 104 of title 11, United States Code, is amended--

      (1) by inserting ‘(a)’ before ‘The’, and

      (2) by adding at the end the following:

    ‘(h)(1) On April 1, 1998, and at each 3-year interval ending on April 1 thereafter, each dollar amount in effect under sections 109(e), 303(b), 507(a), 522(d), and 523(a)(2)(C) immediately before such April 1 shall be adjusted--

      ‘(A) to reflect the change in the Consumer Price Index for All Urban Consumers, published by the Department of Labor, for the most recent 3-year period ending immediately before January 1 preceding such April 1, and

      ‘(B) to round to the nearest $25 the dollar amount that represents such change.

    ‘(2) Not later than March 1, 1998, and at each 3-year interval ending on March 1 thereafter, the Judicial Conference of the United States shall publish in the Federal Register the dollar amounts that will become effective on such April 1 under sections 109(e), 303(b), 507(a), and 522(d) of this title.

    ‘(3) Adjustments made in accordance with paragraph (1) shall not apply with respect to cases commenced before the date of such adjustments.’.

SEC. 109. PREMERGER NOTIFICATION.

    Subparagraphs (A) and (B) of section 363(b) of title 11, United States Code, are amended to read as follows:

        ‘(A) notwithstanding subsection (a) of such section, the notification required by such subsection to be given by the debtor shall be given by the trustee; and

        ‘(B) notwithstanding subsection (b) of such section, each waiting period applicable under such subsection shall end on the 10th day after the date of the receipt required by subsection (b)(1)(A) of such section unless such waiting period is extended--

          ‘(i) pursuant to subsection (g)(2) of such section or, in the case of a tender offer, pursuant to subsection (e)(2) of such section; or

          ‘(ii) by the court after notice and a hearing.’.

SEC. 110. ALLOWANCE OF CREDITOR COMMITTEE EXPENSES.

    Section 503(b)(3) of title 11, United States Code, is amended--

      (1) in subparagraph (D) by striking ‘or’ at the end,

      (2) in subparagraph (E) by inserting ‘or’ at the end, and

      (3) by adding at the end the following:

        ‘(F) a member of a committee appointed under section 1102 of this title, if such expenses are incurred in the performance of the duties of such committee;’.

SEC. 111. SUPPLEMENTAL INJUNCTIONS; SETTLEMENT OF CLAIMS AND DEMANDS FOR PAYMENT.

    (a) SUPPLEMENTAL INJUNCTIONS- Section 524 of title 11, United States Code, is amended by adding at the end the following:

    ‘(g)(1)(A) After notice and hearing, a court that enters an order confirming a plan of reorganization under chapter 11 may issue an injunction to supplement the injunctive effect of a discharge under this section.

    ‘(B) An injunction may be issued under subparagraph (A) to enjoin persons and governmental units from taking legal action for the purpose of directly or indirectly collecting, recovering, or receiving payment or recovery of, on, or with respect to any claim or demand that, under a plan of reorganization, is to be paid in whole or in part by a trust described in paragraph (2)(B)(i), except such legal actions as are expressly allowed by the injunction, the confirmation order, or the plan of reorganization.

    ‘(2)(A) If the requirements of subparagraph (B) are met at any time, then, after entry of an injunction under paragraph (1), any proceeding that involves the validity, application, construction, or modification of the injunction or of this subsection with respect to the injunction may be commenced only in the district court in which the injunction was entered, and such court shall have exclusive jurisdiction over any such proceeding without regard to the amount in controversy.

    ‘(B) The requirements of this subparagraph are that--

      ‘(i) the injunction is to be implemented in connection with a trust that, pursuant to the plan of reorganization--

        ‘(I) is to assume the liabilities of a debtor which at the time of entry of the order for relief has been named as a defendant in personal injury, wrongful death, or property-damage actions seeking recovery for damages allegedly caused by the presence of, or exposure to, asbestos or asbestos-containing products;

        ‘(II) is to be funded in whole or in part by the securities of 1 or more debtors involved in the plan of reorganization and by the obligation of such debtor or debtors to make future payments, including dividends;

        ‘(III) is to own, or by the exercise of rights granted under the plan could own, a majority of the voting shares of--

          ‘(aa) each such debtor;

          ‘(bb) the parent corporation of each such debtor; or

          ‘(cc) a subsidiary of each such debtor that is also a debtor; and

        ‘(IV) is to use its assets or income to pay claims and demands; and

      ‘(ii) the court, at any time pursuant to its authority under the plan, over the trust, or otherwise, determines that--

        ‘(I) the debtor may be subject to substantial future demands for payment arising out of the same or similar conduct or events that gave rise to the claims that are addressed by the injunction;

        ‘(II) the actual amounts, numbers, and timing of such future demands cannot be determined;

        ‘(III) pursuit of such demands outside the procedures prescribed by the plan may threaten the plan’s purpose to deal equitably with claims and future demands;

        ‘(IV) as part of the process of seeking approval of the plan of reorganization--

          ‘(aa) the terms of the injunction proposed to be issued under paragraph (1)(A), including any provisions barring actions against third parties pursuant to paragraph (4)(A), shall be set out in the plan of reorganization and in any disclosure statement supporting the plan; and

          ‘(bb) a separate class or classes of the claimants whose claims are to be addressed by a trust described in clause (i) is established and votes, by at least 75 percent of those voting, in favor of the plan; and

        ‘(V) pursuant to court orders or otherwise, the trust will operate through mechanisms such as structured, periodic or supplemental payments, pro rata distributions, matrices, or periodic review of estimates of the numbers and values of present claims and future demands or other comparable alternates, that provide reasonable assurance that the trust will value, and be in a financial position to pay, present claims and future demands that involve similar claims in substantially the same manner, except that with respect to a trust in existence on the date of the enactment of the Bankruptcy Amendments of 1994 that is subject to a court order staying it from settling or paying further claims--

          ‘(aa) the requirements of this subclause shall apply as of the date such stay is lifted or otherwise dissolved; and

          ‘(bb) such a trust that meets the requirements of the subclause as of the date such stay is lifted or dissolved, shall be treated for all legal purposes as being in compliance with this subsection from the date of the enactment of such Act.

    ‘(3)(A) If the requirements of paragraph (2)(B) are met and the order approving the plan of reorganization was issued or affirmed by the district court that has jurisdiction over the reorganization proceedings, then after the time for appeal of the order that issues or affirms the plan of reorganization--

      ‘(i) the injunction shall be valid and enforceable and may not be revoked or modified by any court except through appeal in accordance with paragraph (6);

      ‘(ii) no entity that pursuant to the plan of reorganization or thereafter becomes a direct or indirect transferee of, or successor to any assets of, a debtor or trust that is the subject of the injunction shall be liable with respect to any claim or demand made against it by reason of its becoming such a transferee or successor; and

      ‘(iii) no entity that pursuant to the plan of reorganization or thereafter makes a loan to such a debtor or trust or to such a successor or transferee shall, by reason of making the loan, be liable with respect to any claim or demand made against it, nor shall any pledge of assets made in connection with such a loan be upset or impaired for that reason;

    ‘(B) Subparagraph (A) shall not be construed to--

      ‘(i) imply that an entity described in subparagraph (A) (ii) or (iii) would, if this paragraph were not applicable, have liability by reason of any of the acts described in subparagraph (A);

      ‘(ii) relieve any such entity of the duty to comply with, or of liability under, any Federal or State law regarding the making of a fraudulent conveyance in a transaction described in subparagraph (A) (ii) or (iii); or

      ‘(iii) relieve a debtor of the debtor’s obligation to comply with the terms of the plan of reorganization or affect the power of the court to exercise its authority under sections 1141 and 1142 to compel the debtor to do so.

    ‘(4)(A)(i) Subject to subparagraph (B), an injunction under paragraph (1) shall be valid and enforceable against all persons and governmental units that it addresses.

    ‘(ii) Notwithstanding the provisions of section 524(e), such an injunction may bar any action directed against a third party who is identifiable from the terms of the injunction (by name or as part of an identifiable group) and is alleged to be directly or indirectly liable for the conduct of, claims against, or demands on the debtor by reason of--

      ‘(I) the party’s ownership of a financial interest in the debtor, a past or present affiliate of the debtor, or a predecessor in interest of the debtor;

      ‘(II) the party’s involvement in the management of the debtor or a predecessor in interest of the debtor, or service as an officer, director or employee of the debtor or a related party;

      ‘(III) the party’s provision of insurance to the debtor or a related party; or

      ‘(IV) the party’s involvement in a transaction affecting the corporate structure or financial condition of the debtor or a related party, including, but not limited to--

        ‘(aa) involvement in providing financing (debt or equity), or advice to a person or entity involved in such a transaction; or

        ‘(bb) acquiring or selling a financial interest in an entity as part of such a transaction.

    ‘(iii) As used in subparagraph (A), the term ‘related party’ means--

      ‘(I) a past or present affiliate of the debtor;

      ‘(II) a predecessor in interest of the debtor; or

      ‘(III) any person or entity that owned a financial interest in--

        ‘(aa) the debtor;

        ‘(bb) a past or present affiliate of the debtor; or

        ‘(cc) a predecessor interest in the debtor.

    ‘(B) With respect to a demand (including a demand directed against a third party described in subparagraph (a)(ii)) that is made subsequent to the confirmation of a plan against any person or entity that is the subject of an injunction issued under paragraph (1), the injunction shall be valid and enforceable if, as part of the proceedings leading to its issuance, the court appointed a legal representative for the purpose of protecting the rights of persons that might subsequently assert such a demand.

    ‘(5) In this subsection, the term ‘demand’ means a demand for payment, present or future, that--

      ‘(A) was not a claim during the proceedings leading to the confirmation of a plan of reorganization;

      ‘(B) arises out of the same or similar conduct or events that gave rise to the claims addressed by the injunction issued under paragraph (1); and

      ‘(C) pursuant to the plan, is to be paid by a trust described in paragraph (2)(B)(i).

    ‘(6) Paragraph (3)(A)(i) does not bar an action taken by or at the direction of an appellate court on appeal of an injunction issued under paragraph (1) or of the order of confirmation that relates to the injunction.

    ‘(7) This subsection applies to any injunction of the nature described in paragraph (1)(B) in effect, and any trust of the nature described in paragraph (2)(B) in existence, on or after the date of enactment of this subsection.

    ‘(8) This subsection does not affect the operation of section 1144 or the power of the district court to refer a proceeding under section 157 of title 28 or any reference of a proceeding made prior to the date of enactment of this subsection.

    ‘(9) Nothing in subsection (g) shall affect the court’s authority to issue an injunction (including an injunction that requires claims and demands to be presented for payment solely to a trust or any other type of court approved settlement vehicle) which is entered pursuant to an order approving a plan of reorganization.’.

    (b) SETTLEMENT OF CLAIMS AND DEMANDS FOR PAYMENT- Section 105 of title 11, United States Code, is amended by adding at the end the following:

    ‘(d) A court may issue an injunction that requires claims and demands to be presented for payment solely to a trust or other vehicle that is established for the purpose of settling such claims and demands and is approved by the court and entered into pursuant to an order approving a plan of reorganization.’.

SEC. 112. AUTHORITY OF BANKRUPTCY JUDGES TO CONDUCT JURY TRIALS IN CIVIL PROCEEDINGS.

    Section 157(c) of title 28, United States Code, is amended by adding at the end the following:

    ‘(3) If the right to a jury trial applies in a proceeding that may be heard under paragraph (1) or (2) of this subsection by a bankruptcy judge, the bankruptcy judge may conduct the jury trial, and may if specially designated to exercise such jurisdiction by the district and with the consent of all the parties.’.

SEC. 113. SOVEREIGN IMMUNITY.

    Section 106 of title 11, United States Code, is amended to read as follows:

‘Sec. 106. Waiver of sovereign immunity

    ‘(a) Notwithstanding an assertion of sovereign immunity, except as provided in subsection (d)--

      ‘(1) all provisions of this title shall apply to governmental units;

      ‘(2) the court may hear and determine any issue arising with respect to the application of such provisions to governmental units; and

      ‘(3) the court may issue and enforce any order, process, or judgment against a governmental unit, including an order or judgment awarding a money recovery, to the same extent as against any other entity.

    ‘(b) A governmental unit is deemed to have waived sovereign immunity with respect to a claim against such governmental unit that is property of the estate and that arose out of the same transaction or occurrence out of which the claim of such governmental unit arose.

    ‘(c) Notwithstanding any assertion of sovereign immunity by a governmental unit, there shall be offset against a claim or interest of a governmental unit any claim against such governmental unit that is property of the estate.

    ‘(d) Except as provided in subsections (b) and (c), a governmental unit may assert sovereign immunity with respect to a claim of the estate against such governmental unit only if such claim--

      ‘(1) is not a tax claim or related to a tax claim subject to determination under section 505; and

      ‘(2)(A) is a claim of the debtor against such governmental unit that arose before the commencement of the case and became property of the estate only under paragraph (1) or (2) of section 541(a); or

      ‘(B) arises under nonbankruptcy law after the commencement of the case from the operation of the business of the debtor.’.

TITLE II--COMMERCIAL BANKRUPTCY ISSUES

SEC. 201. AIRCRAFT EQUIPMENT AND VESSELS; ROLLING STOCK EQUIPMENT.

    (a) AMENDMENT OF SECTION 1110- Section 1110 of title 11, United States Code, is amended to read as follows:

‘Sec. 1110. Aircraft equipment and vessels

    ‘(a)(1) The right of a secured party with a security interest in equipment described in paragraph (2) or of a lessor or conditional vendor of such equipment to take possession of such equipment in compliance with a security agreement, lease, or conditional sale contract is not affected by section 362 or 363 or by any power of the court to enjoin the taking of possession unless--

      ‘(A) before the date that is 60 days after the date of the order for relief under this chapter, the trustee, subject to the court’s approval, agrees to perform all obligations of the debtor that become due on or after the date of the order under such security agreement, lease, or conditional sale contract; and

      ‘(B) any default, other than a default of a kind specified in section 365(b)(2), under such security agreement, lease, or conditional sale contract--

        ‘(i) that occurs before the date of the order is cured before the expiration of such 60-day period; and

        ‘(ii) that occurs after the date of the order is cured before the later of--

          ‘(I) the date that is 30 days after the date of the default; or

          ‘(II) the expiration of such 60-day period.

    ‘(2) Equipment is described in this paragraph if it is--

      ‘(A) an aircraft, aircraft engine, propeller, appliance, or spare part (as defined in section 40102 of title 49) that is subject to a security interest granted by, leased to, or conditionally sold to a debtor that is a citizen of the United States (as defined in 40102 of title 49) holding an air carrier operating certificate issued by the Secretary of Transportation pursuant to chapter 447 of title 49 for aircraft capable of carrying 10 or more individuals; or

      ‘(B) a documented vessel (as defined in section 30101(1) of title 46) that is subject to a security interest granted by, leased to, or conditionally sold to a debtor that is a water carrier that holds a certificate of public convenience and necessity or permit issued by the Interstate Commerce Commission.

    ‘(3) Paragraph (1) applies to a secured party, lessor, or conditional vendor acting in its own behalf or acting as trustee or otherwise in behalf of another party.

    ‘(b) The trustee and the secured party, lessor, or conditional vendor whose right to take possession is protected under subsection (a) may agree, subject to the court’s approval, to extend the 60-day period specified in subsection (a)(1).

    ‘(c) With respect to equipment first placed in service on or prior to the date of enactment of this subsection, for purposes of this section--

      ‘(1) the term ‘lease’ includes any written agreement with respect to which the lessor and the debtor, as lessee, have expressed in the agreement or in a substantially contemporaneous writing that the agreement is to be treated as a lease for Federal income tax purposes; and

      ‘(2) the term ‘security interest’ means a purchase-money equipment security interest.’.

    (b) AMENDMENT OF SECTION 1168- Section 1168 of title 11, United States Code, is amended to read as follows:

‘Sec. 1168. Rolling stock equipment

    ‘(a)(1) The right of a secured party with a security interest in or of a lessor or conditional vendor of equipment described in paragraph (2) to take possession of such equipment in compliance with an equipment security agreement, lease, or conditional sale contract is not affected by section 362 or 363 or by any power of the court to enjoin the taking of possession, unless--

      ‘(A) before the date that is 60 days after the date of commencement of a case under this chapter, the trustee, subject to the court’s approval, agrees to perform all obligations of the debtor that become due on or after the date of commencement of the case under such security agreement, lease, or conditional sale contract; and

      ‘(B) any default, other than a default of a kind described in section 365(b)(2), under such security agreement, lease, or conditional sale contract--

        ‘(i) that occurs before the date of commencement of the case and is an event of default therewith is cured before the expiration of such 60-day period; and

        ‘(ii) that occurs or becomes an event of default after the date of commencement of the case is cured before the later of--

          ‘(I) the date that is 30 days after the date of the default or event of default; or

          ‘(II) the expiration of such 60-day period.

    ‘(2) Equipment is described in this paragraph if it is rolling stock equipment or accessories used on such equipment, including superstructures and racks, that is subject to a security interest granted by, leased to, or conditionally sold to the debtor.

    ‘(3) Paragraph (1) applies to a secured party, lessor, or conditional vendor acting in its own behalf or acting as trustee or otherwise in behalf of another party.

    ‘(b) The trustee and the secured party, lessor, or conditional vendor whose right to take possession is protected under subsection (a) may agree, subject to the court’s approval, to extend the 60-day period specified in subsection (a)(1).

    ‘(c) With respect to equipment first placed in service on or prior to the date of enactment of this subsection, for purposes of this section--

      ‘(1) the term ‘lease’ includes any written agreement with respect to which the lessor and the debtor, as lessee, have expressed in the agreement or in a substantially contemporaneous writing that the agreement is to be treated as a lease for Federal income tax purposes; and

      ‘(2) the term ‘security interest’ means a purchase-money equipment security interest.

    ‘(d) With respect to equipment first placed in service after the date of enactment of this subsection, for purposes of this section, the term ‘rolling stock equipment’ includes rolling stock equipment that is substantially rebuilt and accessories used on such equipment.’.

SEC. 202. LIMITATION ON LIABILITY OF NON-INSIDER TRANSFEREE FOR AVOIDED TRANSFER.

    Section 550 of title 11, United States Code, is amended--

      (1) by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively, and

      (2) by inserting after subsection (b) the following:

    ‘(c) If a transfer made between ninety days and one year before the filing of the petition--

      ‘(1) is avoided under section 547(b) of this title; and

      ‘(2) was made for the benefit of a creditor that at the time of such transfer was an insider;

    the trustee may not recover under subsection (a) from a transferee that is not an insider.’.

SEC. 203. PERFECTION OF PURCHASE-MONEY SECURITY INTEREST.

    Section 547(c)(3)(B) of title 11, United States Code, is amended by striking ‘10’ and inserting ‘20’.

SEC. 204. CONTINUED PERFECTION.

    (a) AUTOMATIC STAY- Section 362(b)(3) of title 11, United States Code, is amended by inserting ‘, or to maintain or continue the perfection of,’ after ‘to perfect’.

    (b) LIMITATIONS ON AVOIDING POWERS- Section 546(b) of title 11, United States Code, is amended to read as follows:

    ‘(b)(1) The rights and powers of a trustee under sections 544, 545, and 549 of this title are subject to any generally applicable law that--

      ‘(A) permits perfection of an interest in property to be effective against an entity that acquires rights in such property before the date of perfection; or

      ‘(B) provides for the maintenance or continuation of perfection of an interest in property to be effective against an entity that acquires rights in such property before the date on which action is taken to effect such maintenance or continuation.

    ‘(2) If--

      ‘(A) a law described in paragraph (1) requires seizure of such property or commencement of an action to accomplish such perfection, or maintenance or continuation of perfection of an interest in property; and

      ‘(B) such property has not been seized or an action has not been commenced before the date of the filing of the petition;

    such interest in such property shall be perfected, or perfection of such interest shall be maintained or continued, by notice within the time fixed by such law for such seizure or such commencement.’.

SEC. 205. REJECTION OF UNEXPIRED LEASES OF REAL PROPERTY OR TIMESHARE INTERESTS.

    (a) AMENDMENT TO SECTION 365- Section 365(h) of title 11, United States Code, is amended to read as follows:

    ‘(h)(1)(A) If the trustee rejects an unexpired lease of real property under which the debtor is the lessor and--

      ‘(i) if the rejection by the trustee amounts to such a breach as would entitle the lessee to treat such lease as terminated by virtue of its terms, applicable nonbankruptcy law, or any agreement made by the lessee, then the lessee under such lease may treat such lease as terminated by the rejection; or

      ‘(ii) if the term of such lease has commenced, the lessee may retain its rights under such lease (including rights such as those relating to the amount and timing of payment of rent and other amounts payable by the lessee and any right of use, possession, quiet enjoyment, subletting, assignment, or hypothecation) that are in or appurtenant to the real property for the balance of the term of such lease and for any renewal or extension of such rights are enforceable under applicable nonbankruptcy law.

    ‘(B) If the lessee retains its rights under subparagraph (A)(ii), the lessee may offset against the rent reserved under such lease for the balance of the term after the date of the rejection of such lease and for the term of any renewal or extension of such lease, the value of any damage caused by the nonperformance after the date of such rejection, of any obligation of the debtor under such lease, but the lessee shall not have any other right against the estate or the debtor on account of any damage occurring after such date caused by such nonperformance.

    ‘(C) The rejection of a lease of real property in a shopping center with respect to which the lessee elects to retain its rights under subparagraph (A)(ii) does not affect the enforceability under applicable nonbankruptcy law of any provision in the lease pertaining to radius, location, use, exclusivity, or tenant mix or balance.

    ‘(D) In this paragraph, ‘lessee’ includes any successor, assign, or mortgagee permitted under the terms of such lease.

    ‘(2)(A) If the trustee rejects a timeshare interest under a timeshare plan under which the debtor is the timeshare interest seller and--

      ‘(i) if the rejection amounts to such a breach as would entitle the timeshare interest purchaser to treat the timeshare plan as terminated under its terms, applicable nonbankruptcy law, or any agreement made by timeshare interest purchaser, the timeshare interest purchaser under the timeshare plan may treat the timeshare plan as terminated by such rejection; or

      ‘(ii) if the term of such timeshare interest has commenced, then the timeshare interest purchaser may retain its rights in such timeshare interest for the balance of such term and for any term of renewal or extension of such timeshare interest to the extent that such rights are enforceable under applicable nonbankruptcy law.

    ‘(B) If the timeshare interest purchaser retains its rights under subparagraph (A), such timeshare interest purchaser may offset against the moneys due for such timeshare interest for the balance of the term after the date of the rejection of such timeshare interest, and the term of any renewal or extension of such timeshare interest, the value of any damage caused by the nonperformance after the date of such rejection, of any obligation of the debtor under such timeshare plan, but the timeshare interest purchaser shall not have any right against the estate or the debtor on account of any damage occurring after such date caused by such nonperformance.’.

    (b) TECHNICAL AMENDMENT- Section 553(b)(1) of title 11, United States Code, is amended by striking ‘365(h)(2)’ and inserting ‘365(h)’.

SEC. 206. CONTENTS OF PLAN.

    Section 1123(b) of title 11, United States Code, is amended--

      (1) in paragraph (4) by striking ‘and’ at the end,

      (2) by redesignating paragraph (5) as paragraph (6), and

      (3) by inserting after paragraph (4) the following:

      ‘(5) in a case in which the debtor is a small business, modify the rights of holders of secured claims, except that--

        ‘(A) the rights of a holder of a claim secured only by a security interest in real property that is the debtor’s principal residence may not be modified; and

        ‘(B) notwithstanding section 506(a), the rights of the holder of the most senior security interest in real property that is the debtor’s principal residence may not be modified to reduce the secured claim to a value that is less than the value of the allowed claim; and’.

SEC. 207. PRIORITY FOR INDEPENDENT SALES REPRESENTATIVES.

    Section 507(a)(3) of title 11, United States Code, is amended to read as follows:

      ‘(3) Third, allowed unsecured claims, but only to the extent of $2,000 for each individual or corporation, as the case may be, earned within 90 days before the date of the filing of the petition or the date of the cessation of the debtor’s business, whichever occurs first, for--

        ‘(A) wages, salaries, or commissions, including vacation, severance, and sick leave pay earned by an individual; or

        ‘(B) sales commissions earned by an individual or by a corporation with only 1 employee, acting as an independent contractor in the sale of goods or services for the debtor in the ordinary course of the debtor’s business if, and only if, during the 12 months preceding that date, at least 75 percent of the amount that the individual or corporation earned by acting as an independent contractor in the sale of goods or services was earned from the debtor;’.

SEC. 208. EXCLUSION FROM THE ESTATE OF INTERESTS IN LIQUID AND GASEOUS HYDROCARBONS TRANSFERRED BY THE DEBTOR PURSUANT TO PRODUCTION PAYMENT AGREEMENTS.

    (a) DEFINITION- Section 101 of title 11, United States Code, is amended--

      (1) by inserting after paragraph (42) the following:

      ‘(42A) ‘production payment’ means a payment (in cash or in kind)--

        ‘(A) contingent on the production of a liquid or gaseous hydrocarbon from particular real property; and

        ‘(B) attributable to part of a specified volume, or part of a specified value, of the liquid or gaseous hydrocarbon produced from such property, and determined without regard to production costs.’.

    (b) PROPERTY OF THE ESTATE- Section 541(b)(4) of title 11, United States Code, is amended--

      (1) in subparagraph (A) by striking ‘(A)’ and inserting ‘(A)(i)’,

      (2) in subparagraph (B)--

        (A) by striking ‘(B)’ and inserting ‘(ii),’

        (B) by striking ‘such interest’ and inserting ‘the interest referred to in clause (i)’, and

        (C) by striking the period at the end and inserting ‘; or’, and

      (3) by adding at the end the following:

        ‘(B)(i) the debtor has transferred or has agreed to transfer such interest pursuant to a written agreement to make production payments to a person who does not participate in the production of the liquid or gaseous hydrocarbon with respect to which such payments are made; and

        ‘(ii) but for the operation of this paragraph, the estate could include the interest referred to in clause (i) only by virtue of section 365 of this title.’.

SEC. 209. SELLER’S RIGHT TO RECLAIM GOODS.

    Section 546(c)(1) of title 11, United States Code, is amended by striking ‘ten’ and inserting ‘20’.

SEC. 210. INVESTMENT OF MONEY OF THE ESTATE.

    Section 345(b) of title 11, United States Code, is amended--

      (1) in paragraph (2) by striking the period at the end and inserting a semicolon, and

      (2) by adding ‘unless the court for cause orders otherwise.’ at the end of such subsection.

SEC. 211. ELECTION OF TRUSTEE UNDER CHAPTER 11.

    (a) ELECTION AUTHORIZED- Section 1104 of title 11 of the United States Code is amended--

      (1) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively, and

      (2) by inserting after subsection (a) the following:

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

    (b) CONFORMING AMENDMENT- Section 1106(b) of title 11, United States Code, is amended by striking ‘1104(c)’ and inserting ‘1104(d)’.

SEC. 212. RIGHTS OF PARTNERSHIP TRUSTEE AGAINST GENERAL PARTNERS.

    Section 723(a) of title 11, United States Code, is amended by striking ‘for the full amount of the deficiency’ and inserting ‘to the extent that under applicable nonbankruptcy law such general partner is personally liable for the debts of the partnership’.

SEC. 213. EXCLUSION FROM THE ESTATE OF CERTAIN ACCOUNTS AND CHATTEL PAPER.

    Section 541(b) of title 11, United States Code, is amended--

      (1) in subsection (b)--

        (A) in paragraph (3) by striking ‘or’ at the end,

        (B) in paragraph (4) by striking the period at the end and inserting ‘; or’, and

        (C) by adding at the end the following:

      ‘(5) any interest of the debtor in any account or chattel paper to the extent that--

        ‘(A) such interest was actually sold under applicable nonbankruptcy law by the debtor before the date of commencement of the case, but without taking into consideration whether the purchaser filed a financing statement before such date; and

        ‘(B) but for the operation, the estate could include such interest only by virtue of section 542 of this title.’, and

      (2) by adding at the end the following:

    ‘(e) For purposes of this section--

      ‘(1) ‘account’ means any right to payment for goods sold or leased or for services rendered that is not evidence by an instrument or chattel paper, whether or not it has been earned by performance, and includes all right to payment earned or unearned under a charter or other contract involving the use or hire of a vessel and all rights incident to such charter or such contract; and

      ‘(2) ‘chattel paper’ means--

        ‘(A) a writing or writings that evidence both a monetary obligation and a security interest in or lease of specific goods (excluding a charter or other contract involving the use or hire of a vessel); or

        ‘(B) if a transaction described in subparagraph (A) is evidenced both by such a security agreement or a lease and by an instrument or a series of instruments, the group of these writings taken together.’.

SEC. 214. TIMELY FILING OF CLAIMS, INTERESTS, AND ADMINSTRATIVE EXPENSE REQUESTS.

    (a) OBJECTION TO CLAIMS FILED UNTIMELY- Section 502(b) of title 11, United States Code, is amended--

      (1) in paragraph (7) by striking ‘or’ at the end,

      (2) in paragraph (8) by striking the period at the end and inserting ‘; or’, and

      (3) by adding at the end the following:

      ‘(9) such claim is not timely filed, except to the extent tardily filing permitted under paragraph (2) or (3) of section 726(a).’.

    (b) FILING OF REQUEST FOR ADMINISTRATIVE EXPENSES- Section 503(a) of title 11, United States Code, is amended--

      (1) by inserting ‘timely’ after ‘may’, and

      (2) by inserting ‘, or may tardily file such request if permitted by the court for cause’ before the period at the end.

SEC. 215. PROTECTION OF SECURITY INTEREST IN POST-PETITION RENTS.

    Section 552(b) of title 11, United States Code, is amended--

      (1) by inserting ‘(1)’ after ‘(b)’,

      (2) by striking ‘rents,’ each place it appears, and

      (3) by adding at the end the following:

    ‘(2) Except as provided in sections 363, 506(c), 522, 544, 545, 547, and 548 of this title, if the debtor and an entity entered into a security agreement before the commencement of the case and if the security interest created by such security agreement extends to property of the debtor acquired before the commencement of the case and to rents of such property, then such security interest extends to such rents acquired by the estate after the commencement of the case to the extent provided in such security agreement, except to any extent that the court, after notice and a hearing and based on the equities of the case, orders otherwise.’.

SEC. 216. AMENDMENT TO DEFINITION OF SWAP AGREEMENT.

    Section 101(55)(A) of title 11, United States Code, is amended by inserting ‘spot foreign exchange agreement,’ after ‘forward foreign exchange agreement’.

TITLE III--CONSUMER BANKRUPTCY ISSUES

SEC. 301. PERIOD FOR CURING DEFAULT RELATING TO PRINCIPAL RESIDENCE.

    Section 1322 of title 11, United States Code, is amended--

      (1) by redesignating subsection (c) as subsection (d), and

      (2) by inserting after subsection (b) the following:

    ‘(c) Notwithstanding subsection (b)(2) and applicable nonbankruptcy law--

      ‘(1) a default with respect to, or that gave rise to, a lien on the debtor’s principal residence may be cured under paragraph (3) or (5) of subsection (b) until such residence is sold under such lien and in accordance with applicable nonbankruptcy law; and

      ‘(2) in a case in which the last payment on the original payment schedule for a claim secured only by a security interest in real property that is the debtor’s principal residence is due before the date on which the final payment under the plan is due, the plan may provide for the payment of the claim as modified pursuant to 1325(a)(5).’.

SEC. 302. NONDISCHARGEABILITY OF FINE UNDER CHAPTER 13.

    Section 1328(a)(3) of title 11, United States Code, is amended by inserting ‘, or a fine (other than a fine imposed under subchapter C of chapter 227 of title 18 of the United States Code) to the extent such fine exceeds $500, ’ after ‘restitution’.

SEC. 303. IMPAIRMENT OF EXEMPTIONS.

    Section 522(f) of title 11, United States Code, is amended--

      (1) by inserting ‘(1)’ before ‘Notwithstanding’,

      (2) by redesignating paragraph (1) as subparagraph (A),

      (3) by redesignating paragraph (2) as subparagraph (B) and subparagraphs (A), (B), and (C) of that paragraph as clauses (i), (ii), and (iii), and

      (4) by adding at the end the following:

      ‘(2)(A) For the purposes of this subsection, a lien shall be considered to impair an exemption to the extent that the sum of--

        ‘(i) the lien,

        ‘(ii) all other liens on the property that are equal or greater in seniority to the lien; and

        ‘(iii) the amount of the exemption that the debtor could claim if there were no liens on the property,

      exceeds the value that the debtor’s interest in the property would have in the absence of any liens.

      ‘(B) In the case of a property subject to more than 1 lien, a lien that has been avoided shall not be considered in making the calculation under subparagraph (A) with respect to other liens.’.

SEC. 304. PROTECTION OF CHILD SUPPORT AND ALIMONY.

    (a) RELIEF FROM AUTOMATIC STAY- Section 362(b)(2) of title 11, United States Code, is amended to read as follows:

      ‘(2) under subsection (a) of this section--

        ‘(A) of the commencement or continuation of an action or proceeding for--

          ‘(i) the establishment of paternity; or

          ‘(ii) the establishment or modification of an order for alimony, maintenance, or support; or

        ‘(B) of the collection of alimony, maintenance, or support from property that is not property of the estate;’.

    (b) PRIORITY OF CLAIMS- Section 507(a) of title 11, United States Code, is amended--

      (1) in paragraph (8) by striking ‘(8) Eighth’ and inserting ‘(9) Ninth’,

      (2) in paragraph (7) by striking ‘(7) Seventh’ and inserting ‘(8) Eighth’, and

      (3) by inserting after paragraph (6) the following:

      ‘(7) Seventh, allowed claims for debts to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record, determination made in accordance with State or territorial law by a governmental unit, or property settlement agreement, but not to the extent that such debt--

        ‘(A) is assigned to another entity, voluntarily, by operation of law, or otherwise; or

        ‘(B) includes a liability designated as alimony, maintenance, or support, unless such liability is actually in the nature of alimony, maintenance or support.’.

    (c) PROTECTION OF LIENS- Section 522(f)(1) of title 11, United States Code, is amended by inserting after ‘lien’ the following:

      ‘, other than a judicial lien that secures a debt--

        ‘(A) to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record, determination made in accordance with State or territorial law by a governmental unit, or property settlement agreement; and

        ‘(B) to the extent that such debt--

          ‘(i) is not assigned to another entity, voluntarily, by operation of law, or otherwise; and

          ‘(ii) includes a liability designated as alimony, maintenance, or support, unless such liability is actually in the nature of alimony, maintenance or support.’.

    (d) EXCEPTION TO DISCHARGE- Section 523 of Title 11, United States Code, is amended--

      (1) in subsection (a)--

        (A) in paragraph (11) by striking ‘or’ at the end,

        (B) in paragraph (12) by inserting ‘or’ after the semicolon at the end, and

        (C) by adding at the end the following:

      ‘(13) assumed or incurred by the debtor in the course of a divorce or separation or in connection with a separation agreement, divorce decree or other order of a court of record, a determination made in accordance with State or territorial law by a governmental unit, or property settlement agreement, unless--

        ‘(A) the debtor does not have the ability to pay such debt from income or property of the debtor not reasonably necessary to be expended for the maintenance or support of the debtor or a dependent of the debtor and, if the debtor is engaged in a business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business; or

        ‘(B) discharging such debt would result in a benefit to the debtor that outweighs the detrimental consequences to a spouse, former spouse, or child of the debtor.’, and

      (2) in subsection (c)(1) by striking ‘or (6)’ each place it appears and inserting ‘(6), or (13)’.

    (e) PROTECTION AGAINST TRUSTEE AVOIDANCE- Section 547(c) of title 11, United States Code, is amended--

      (1) in paragraph (6) by striking ‘or’ at the end,

      (2) by redesignating paragraph (7) as paragraph (8), and

      (3) by inserting after paragraph (6) the following:

      ‘(7) to the extent such transfer was a bona fide payment of a debt to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record, determination made in accordance with State or territorial law by a governmental unit, or property settlement agreement, but not to the extent that such debt--

        ‘(A) is assigned to another entity, voluntarily, by operation of law, or otherwise; or

        ‘(B) includes a liability designated as alimony, maintenance, or support, unless such liability is actually in the nature of alimony, maintenance or support.’.

    (f) APPEARANCE BEFORE COURT- Child support creditors or their representatives shall be permitted to appear and intervene without charge, and without meeting any special local court rule requirement for attorney appearances, in any bankruptcy proceeding in any bankruptcy court or district court of the United States if such representatives file a form in such court that contains information detailing the child support debt, its status, and other characteristics.

    (g) CONFORMING AMENDMENTS--Title 11 of the United States Code is amended--

      (1) in section 502(i) by striking ‘507(a)(7)’ and inserting ‘507(a)(8)’,

      (2) in section 503(b)(1)(B)(i) by striking ‘507(a)(7)’ and inserting ‘507(a)(8)’,

      (3) in section 523(a)(1)(A) by striking ‘507(a)(7)’ and inserting ‘507(a)(8)’,

      (4) in section 724(b)(2) by striking ‘or 507(a)(6)’ and inserting ‘507(a)(6), or 507(a)(7)’,

      (5) in section 726(b) by striking ‘or (7)’ and inserting ‘, (7), or (8)’,

      (6) in section 1123(a)(1) by striking ‘507(a)(7)’ and inserting ‘507(a)(8)’,

      (7) in section 1129(a)(9)--

        (i) in subparagraph (B) by striking ‘or 507(a)(6)’ and inserting ‘, 507(a)(6), or 507(a)(7)’, and

        (ii) in subparagraph (C) by striking ‘507(a)(7)’ and inserting ‘507(a)(8)’.

SEC. 305. PRESERVATION OF HOME MORTGAGE LIENS.

    Section 1322(b)(2) of title 11, United States Code, is amended--

      (1) by striking ‘, other than a claim secured only by a security interest in real property that is the debtor’s principal residence,’, and

      (2) by striking the semicolon at the end and inserting the following:

      ‘, except that--

        ‘(A) the rights of a holder of a claim secured only by a security interest in real property that is the debtor’s principal residence may not be modified; and

        ‘(B) notwithstanding section 506(a), the rights of the holder of the most senior security interest in real property that is the debtor’s principal residence may not be modified to reduce the secured claim to a value that is less than the value of the allowed claim;’.

SEC. 306. INTEREST ON INTEREST.

    (a) CHAPTER 11- Section 1123 of title 11, United States Code, is amended by adding at the end the following:

    ‘(d) Notwithstanding subsection (a) of this section and sections 506(b), 1129(a)(7), and 1129(b) of this title, if it is proposed in a plan to cure a default, the amount necessary to cure the default, shall be determined in accordance with the underlying agreement and applicable nonbankruptcy law.’.

    (b) CHAPTER 12- Section 1222 of title 11, United States Code, is amended by adding at the end the following:

    ‘(d) Notwithstanding subsection (b)(2) of this section and sections 506(b) and 1225(a)(5) of this title, if it is proposed in a plan to cure a default, the amount necessary to cure the default, shall be determined in accordance with the underlying agreement and applicable nonbankruptcy law.’.

    (c) CHAPTER 13- Section 1322 of title 11, United States Code, is amended by adding at the end the following:

    ‘(f) Notwithstanding subsection (b)(2) of this section and sections 506(b) and 1325(a)(5) of this title, if it is proposed in a plan to cure a default, the amount necessary to cure the default, shall be determined in accordance with the underlying agreement and applicable nonbankruptcy law.’.

SEC. 307. EXCEPTION TO DISCHARGE.

    Section 523(a)(2) of title 11, United States Code, is amended--

      (1) by striking ‘$500’ and inserting ‘$1,000’,

      (2) by striking ‘forty’ and inserting ‘60’, and

      (3) by striking ‘twenty’ and inserting ‘60’.

SEC. 308. PAYMENTS.

    Section 1326(a)(2) of title 11, United States Code, is amended in the second sentence by striking the period and inserting ‘as soon as practicable.’.

TITLE IV--GOVERNMENTAL BANKRUPTCY ISSUES

SEC. 401. EXCEPTION FROM AUTOMATIC STAY FOR POST-PETITION PROPERTY TAXES.

    Section 362(b) of title 11, United States Code, is amended by inserting after paragraph (16) the following:

      ‘(18) under subsection (a) of this section, of the creation or perfection of a statutory lien for an ad valorem property tax imposed by the District of Columbia, or a political subdivision of a State, if such tax comes due after the filing of the petition.’.

SEC. 402. MUNICIPAL BANKRUPTCY.

    Section 109(c)(2) of title 11, United States Code, is amended by striking ‘generally authorized’ and inserting ‘specifically authorized, in its capacity as a municipality or by name,’.

TITLE V--TECHNICAL CORRECTIONS

SEC. 501. AMENDMENTS TO BANKRUPTCY DEFINITIONS, NECESSITATED BY ENACTMENT OF PUBLIC LAW 101-647.

    (a) ALPHABETIZING AND REDESIGNATING DEFINITIONS- Section 101 of title 11 of the United States Code, as amended by section 208, is amended--

      (1) by redesignating paragraph (3) as paragraph (21),

      (2) by redesignating paragraph (4) and subsequent paragraphs through paragraph (21) as paragraphs (3) through (20), respectively,

      (3) by transferring paragraph (21), as so redesignated by paragraph (1), so as to insert such paragraph after paragraph (20),

      (4) by redesignating paragraphs (54) through (57), as in effect immediately before the enactment of Public Law 101-647, as paragraphs (61), (62), (36), and (40), respectively,

      (5) in paragraph (61), as so redesignated by paragraph (4), by inserting ‘and’ after the semicolon at the end,

      (6) in paragraph (62), as so redesignated by paragraph (4), by striking the semicolon at the end and inserting a period,

      (7) in paragraph (36), as so redesignated by paragraph (4), by striking ‘and’ at the end,

      (8) in paragraph (40), as so redesignated by paragraph (4), by striking the period at the end and inserting a semicolon,

      (9) by redesignating paragraphs (52) through (57), as so redesignated by section 2522(e) of Public Law 101-647, as paragraphs (55) through (60), respectively,

      (10) by transferring paragraph (39) so as to insert such paragraph before paragraph (55), as so redesignated by paragraph (9) of this subsection,

      (11) by redesignating paragraph (39) as paragraph (54),

      (12) by redesignating successively numbered paragraphs (40) through (51) as paragraphs (41) through (53), respectively,

      (13) by transferring paragraph (40), as so redesignated by paragraph (4) of this subsection, so as to insert such paragraph before paragraph (41), as so redesignated by paragraph (12) this subsection,

      (14) by redesignating paragraph (36) and subsequent paragraphs through paragraph (38) as paragraphs (37) through (39), respectively, and

      (15) by transferring paragraph (36), as so redesignated by paragraph (4) of this subsection, so as to insert such paragraph after paragraph (35).

    (b) CONFORMING AND RELATED AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE, BASED ON REDESIGNATED DEFINITIONS- (1) Section 101 of title 11 of the United States Code is amended--

      (A) in paragraph (5), as so redesignated by subsection (a), by striking ‘section 761(9)’ and inserting ‘section 761’,

      (B) in paragraph (22) by striking ‘section 741(7)’ and inserting ‘section 741’,

      (C) in paragraph (35)(B) by striking ‘paragraphs (3)’ and inserting ‘paragraphs (21)’,

      (D) in paragraph (50)(B)(ii), as so redesignated by subsection (a), by striking ‘section 761(13)’ and inserting ‘section 761’, and

      (E) in paragraph (56)(A), as so redesignated by subsection (a), by striking ‘section 741(2)’ and inserting ‘section 741’.

    (2) Section 362(b) of title 11, United States Code, is amended--

      (A) in paragraph (6)--

        (i) by striking ‘section 761(4)’ and inserting ‘section 761’,

        (ii) by striking ‘section 741(7)’ and inserting ‘section 741’,

        (iii) by striking ‘section 101(34), 741(5), or 761(15)’ and inserting ‘section 101, 741, or 761’, and

        (iv) by striking ‘section 101(35) or 741(8)’ and inserting ‘section 101 or 741’, and

      (B) in paragraph (7)--

        (i) by striking ‘section 741(5) or 761(15)’ and inserting ‘section 741 or 761’, and

        (ii) by striking ‘section 741(8)’ and inserting ‘section 741’.

    (3) Section 507(a)(5) of title 11, United States Code, is amended--

      (A) by striking ‘section 557(b)(1)’ and inserting ‘section 557(b)’, and

      (B) by striking ‘section 557(b)(2)’ and inserting ‘section 557(b)’.

    (4) Section 546 of title 11, United States Code, is amended--

      (A) in subsection (e)--

        (i) by striking ‘section 101(34), 741(5), or 761(15)’ and inserting ‘section 101, 741, or 761’, and

        (ii) by striking ‘section 101(35) or 741(8)’ and inserting ‘section 101 or 741’, and

      (B) in subsection (f)--

        (i) by striking ‘section 741(5) or 761(15)’ and inserting ‘section 741 or 761’, and

        (ii) by striking ‘section 741(8)’ and inserting ‘section 741’.

    (5) Section 548(d)(2) of title 11, United States Code, is amended--

      (A) in subparagraph (B)--

        (i) by striking ‘section 101(34), 741(5) or 761(15)’ and inserting ‘section 101, 741, or 761’, and

        (ii) by striking ‘section 101(35) or 741(8)’ and inserting ‘section 101 or 741’, and

      (B) in subparagraph (C)--

        (i) by striking ‘section 741(5) or 761(15)’ and inserting ‘section 741 or 761’, and

        (ii) by striking ‘section 741(8)’ and inserting ‘section 741’.

    (6) Section 555 of title 11, United States Code, is amended by striking ‘section 741(7)’ and inserting ‘section 741 of this title’.

    (7) Section 556 of title 11, United States Code, is amended by striking ‘section 761(4)’ and inserting ‘section 761 of this title’.

    (c) CONFORMING AMENDMENTS TO OTHER LAWS BASED ON REDESIGNATED DEFINITIONS- (1) Section 207(c)(8)(D) of the Federal Credit Union Act (12 U.S.C. 1787(c)(8)(D)) is amended--

      (A) in clause (ii)(I) by striking ‘section 741(7)’ and inserting ‘section 741’,

      (B) in clause (iii) by striking ‘section 101(24)’ and inserting ‘section 101’,

      (C) in clause (iv)(I) by striking ‘section 101(41)’ and inserting ‘section 101’, and

      (D) in clause (v) by striking ‘section 101(50)’ and inserting ‘section 101’.

    (2) Section 11(e)(8)(D) of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)) is amended--

      (A) in clause (ii)(I) by striking ‘section 741(7)’ and inserting ‘section 741’,

      (B) in clause (iii) by striking ‘section 761(4)’ and inserting ‘section 761’,

      (C) in clause (iv) by striking ‘section 101(24)’ and inserting ‘section 101’,

      (D) in clause (v)(I) by striking ‘section 101(41)’ and inserting ‘section 101’, and

      (E) in clause (viii) by striking ‘section 101(50)’ and inserting ‘section 101’.

    (d) OTHER TECHNICAL AMENDMENTS- Title 11 of the United States Code is amended--

      (1) in section 101--

        (A) in paragraph (33)--

          (i) in subparagraph (A) by striking ‘(12 U.S.C. 1813(u))’, and

          (ii) in subparagraph (B) by striking ‘(12 U.S.C. 1786(r))’,

        (B) in paragraph (34) by striking ‘(12 U.S.C. 1752(7))’,

        (C) in paragraph (35)(A) by striking ‘(12 U.S.C. 1813(c)(2))’,

        (D) in paragraph (50), as so redesignated by subsection (a)--

          (i) by striking ‘(15 U.S.C. 78q-1)’, and

          (ii) by striking ‘(15 U.S.C. 78c(12))’,

        (E) in paragraph (51), as so redesignated by subsection (a)--

          (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))’, and

          (ii) in subparagraph (B)(vi) by striking ‘(15 U.S.C. 77c(b))’, and

        (F) in paragraph (59), as so redesignated by subsection (a), by striking the period at the end and inserting a semicolon,

      (2) in section 109(b)(2) by striking ‘(12 U.S.C. 1813(h))’,

      (3) in section 322(a) by striking ‘1302, or 1202’ and inserting ‘1202, or 1302’,

      (4) in section 346--

        (A) in subsection (a) by striking ‘Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.)’ and inserting ‘Internal Revenue Code of 1986’, and

        (B) in subsection (g)(1)(C) by striking ‘Internal Revenue Code of 1954 (26 U.S.C. 371)’ and inserting ‘Internal Revenue Code of 1986’,

      (5) in section 348--

        (A) in subsection (b) by striking ‘1301(a), 1305(a), 1201(a), 1221, and 1228(a)’ and inserting ‘1201(a), 1221, 1228(a), 1301(a), and 1305(a)’, and

        (B) in subsections (b), (c), (d), and (e) by striking ‘1307, or 1208’ each place it appears and inserting ‘1208, or 1307’,

      (6) in section 349(a) by striking ‘109(f)’ and inserting ‘109(g)’,

      (7) in section 362--

        (A) in subsection (a) by striking ‘(15 U.S.C. 78eee(a)(3))’, and

        (B) in subsection (b)--

          (i) by striking ‘(15 U.S.C. 78eee(a)(3))’,

          (ii) in paragraph (10) by striking ‘or’ at the end,

          (iii) in paragraph (12)--

            (I) by striking ‘the Ship Mortgage Act, 1920 (46 App. U.S.C. 911 et seq.)’ and inserting ‘section 31325 of title 46’,

            (II) by striking ‘(46 App. U.S.C. 911 et seq.)’, and

            (III) by striking ‘(46 App. U.S.C. 1117 and 1271 et seq., respectively)’,

          (iv) in paragraph (13)--

            (I) by striking ‘the Ship Mortgage Act, 1920 (46 App. U.S.C. 911 et seq.)’ each place it appears and inserting ‘section 31325 of title 46’,

            (II) by striking ‘(46 App. U.S.C. 1117 and 1271 et seq., respectively)’, and

            (III) by striking ‘or’ at the end,

          (v) in paragraph (15), as added by Public Law 101-508, by striking ‘or’ at the end,

          (vi) in paragraph (16), as added by Public Law 101-508--

            (I) by striking ‘(20 U.S.C. 1001 et seq.)’, and

            (II) by striking the period at the end and inserting a semicolon, and

          (vii) in paragraph (14), as added by Public Law 101-311--

            (I) by striking the period at the end and inserting ‘; or’,

            (II) by redesignating such paragraph as paragraph (17), and

            (III) by transferring such paragraph so as to insert such paragraph after paragraph (16),

      (8) in section 363--

        (A) in subsection (b)(2) by striking ‘(15 U.S.C. 18a)’, and

        (B) in subsection (c)(1) by striking ‘1304, 1203, or 1204’ and inserting ‘1203, 1204, or 1304’,

      (9) in section 364--

        (A) in subsection (a) by striking ‘1304, 1203, or 1204’ and inserting ‘1203, 1204, or 1304’, and

        (B) in subsection (f)--

          (i) by striking ‘(15 U.S.C. 77e)’, and

          (ii) by striking ‘(15 U.S.C. 77aaa et seq.)’,

      (10) in section 365--

        (A) in subsection (d)(6)(C) by striking ‘the Federal Aviation Act of 1958 (49 U.S.C. 1301)’ and inserting ‘section 40102 of title 49’,

        (B) in subparagraphs (A) and (B) of subsection (g)(2) by striking ‘1307, or 1208’ each place it appears and inserting ‘1208, or 1307’,

        (C) in subsection (n)(1)(B) by striking ‘to to’ and inserting ‘to’,

        (D) in subsection (o) by striking ‘the Federal’ the first place it appears and all that follows through ‘successors,’, and inserting ‘a Federal depository institutions regulatory agency (or predecessor to such agency)’, and

        (E) by striking subsection (p),

      (11) in section 507--

        (A) in subsection (a)(8) by striking ‘the Federal’ the first place it appears and all that follows through ‘successors,’, and inserting ‘a Federal depository institutions regulatory agency (or predecessor to such agency)’, and

        (B) in subsection (d) by striking ‘or (a)(6)’ and inserting ‘(a)(6), (a)(7), (a)(8), or (a)(9)’,

      (12) in section 522(d)(10)(E)(iii)--

        (A) by striking ‘408, or 409’ the first place it appears and inserting ‘or 408’, and

        (B) by striking ‘Internal Revenue Code of 1954 (26 U.S.C. 401(a), 403(a), 403(b), 408, or 409)’ and inserting ‘Internal Revenue Code of 1986’,

      (13) in section 523--

        (A) in subsection (a)--

          (i) by striking ‘1141,,’ and inserting ‘1141,’,

          (ii) in paragraph (2)(C) by striking ‘(15 U.S.C. 1601 et seq.)’, and

          (iii) in paragraph (12) by striking the semicolon at the end and inserting a period,

        (B) in subsection (b)--

          (i) by striking ‘(20 U.S.C. 1087-3)’, and

          (ii) by striking ‘(42 U.S.C. 294f)’, and

        (C) in subsection (e) by striking ‘depository institution or insured credit union’ and inserting ‘insured depository institution’,

      (14) in section 524--

        (A) in subsection (a)(3) by striking ‘or 1328(c)(1)’ and inserting ‘, 1228(a)(1), or 1328(a)(1)’,

        (B) in subsection (c)(4) by striking ‘recission’ and inserting ‘rescission’, and

        (C) in subsection (d)(1)(B)(ii) by adding ‘and’ at the end,

      (15) in section 525(a)--

        (A) by striking ‘(7 U.S.C. 499a-499s)’,

        (B) by striking ‘(7 U.S.C. 181-229)’, and

        (C) by striking ‘(57 Stat. 422; 7 U.S.C. 204)’,

      (16) in section 542(e) by striking ‘to to’ and inserting ‘to’,

      (17) in section 543(d)(1) by striking ‘section,’ and inserting ‘section’,

      (18) in section 546(a)(1) by striking ‘1302, or 1202’ and inserting ‘1202, or 1302’,

      (19) in section 549(b) inserting ‘the trustee may not avoid under subsection (a) of this section’ after ‘involuntary case,’,

      (20) in section 553--

        (A) in subsection (a)(1) by striking ‘other than under section 502(b)(3) of this title’, and

        (B) in subsection (b)(1) by striking ‘362(b)(14),,’ and inserting ‘362(b)(14),’,

      (21) in section 555 by striking ‘(15 U.S.C. 78aaa et seq.)’,

      (22) in section 559 by striking ‘(15 U.S.C. 78aaa et seq.)’,

      (23) in section 706(a) by striking ‘1307, or 1208’ and inserting ‘1208, or 1307’,

      (24) in section 724(d) by striking ‘Internal Revenue Code of 1954 (26 U.S.C. 6323)’ and inserting ‘Internal Revenue Code of 1986’,

      (25) in section 726(b)--

        (A) inserting a comma after ‘section 1112’, and

        (B) by inserting ‘1009,’ after ‘chapter under section’,

      (26) in section 741(4)(A)(iii) by striking ‘(15 U.S.C. 78a et seq.)’,

      (27) in section 742 by striking ‘(15 U.S.C. 78aaa et seq.)’,

      (28) in section 743 by striking ‘342(a)’ and inserting ‘342’,

      (29) in section 745(c) by striking ‘Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.)’ and inserting ‘Internal Revenue Code of 1986’,

      (30) in section 761--

        (A) in paragraph (1) by striking ‘(7 U.S.C. 1 et seq.)’,

        (B) in paragraph (5) by striking ‘(7 U.S.C. 6c(b))’, and

        (C) in paragraph (13) by striking ‘(7 U.S.C. 23)’,

      (31) in section 1104(c) inserting a comma after ‘interest’,

      (32) in section 1123(a)(1) inserting a comma after ‘title’ the last place it appears,

      (33) in section 1129--

        (A) in subsection (a)--

          (i) in paragraph (4) by striking the semicolon at the end and inserting a period, and

          (ii) in paragraph (12) inserting ‘of title 28’ after ‘section 1930’, and

        (B) in subsection (d) by striking ‘(15 U.S.C. 77e)’,

      (34) in section 1145--

        (A) in subsection (a)--

          (i) by striking ‘does’ and inserting ‘do’,

          (ii) by striking ‘(15 U.S.C. 77e)’, and

          (iii) in paragraph (3)(B)(i) by striking ‘(15 U.S.C. 78m or 78o(d))’,

        (B) in subsection (b)(1) by striking ‘(15 U.S.C. 77b(11))’, and

        (C) in subsection (d) by striking ‘(15 U.S.C. 77aaa et seq.)’,

      (35) in section 1166(2) by striking ‘(45 U.S.C. 791(b))’,

      (36) in section 1167--

        (A) by striking ‘(45 U.S.C. 151 et seq.)’, and

        (B) by striking ‘(45 U.S.C. 156)’,

      (37) in section 1226(b)(2)--

        (A) by striking ‘1202(d)’ and inserting ‘1202(c)’, and

        (B) by striking ‘1202(e)’ and inserting ‘1202(d)’,

      (38) in section 1302(b)(3) by striking ‘and’ at the end, and

      (39) in section 1328(a)--

        (A) in paragraph (2) by striking ‘(5) or (8)’ and inserting ‘(5), (8), or (9)’, and

        (B) by striking the last paragraph (3), and

      (40) in the table of chapters by striking the item relating to chapter 15.

SEC. 502. TITLE 28 OF THE UNITED STATES CODE.

    Section 586(a)(3) of title 28, United States Code, is amended in the matter preceding subparagraph (A) by inserting ‘12,’ after ‘11,’.

TITLE VI--SEVERABILITY; EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

SEC. 601. SEVERABILITY.

    If any provision of this Act 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.

SEC. 602. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) EFFECTIVE DATE- Except as provided in subsection (b), this Act 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(a) .

    (B) The amendment made by section 113 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 306 shall apply only to agreements entered into after the date of enactment of this Act.