The text of the bill below is as of Jul 10, 1984 (Passed Congress).
You are reading a bill enacted 14,317 days ago. In the intervening time subsequent legislation may have amended or repealed the provisions below.
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 333
Public Law 98- 353
98th Congress
An Act
To amend title 28 of the United States Code regarding jurisdiction of bankruptcy July 10, 1984
proceedings, to establish new Federal judicial positions, to amend title 11 of the
United States Code, and for other purposes. [H.R. 5174]
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may Bankruptcy
be cited as the "Bankruptcy Amendments and Federal Judgeship Amendments
and Federal
Act of 1984". Judgeship Act of
1984.
TITLE I—BANKRUPTCY JURISDICTION AND PROCEDURE 28 u s e 151 note.
SEC. 101. (a) Section 1334 of title 28, United States Code, is
amended to read as follows:
"§ 1334. Bankruptcy cases and proceedings
"(a) Except as provided in subsection (b) of this section, the district
courts shall have original and exclusive jurisdiction of all cases
under title 11. 11 u s e 101 et
seq.
"(b) Notwithstanding any Act of Congress that confers exclusive
jurisdiction on a court or courts other than the district courts, the
district courts shall have original but not exclusive jurisdiction of all
civil proceedings arising under title 11, or arising in or related to
cases under title 11.
"(c)(1) Nothing in this section prevents a district court in the
interest of justice, or in the interest of comity with State courts or
respect for State law, from abstaining from hearing a particular
proceeding arising under title 11 or arising in or related to a case
under title 11.
"(2) Upon timely motion of a party in a proceeding based upon a
State law claim or State law cause of action, related to a case under
title 11 but not arising under title 11 or arising in a case under title
11, with respect to which an action could not have been commenced
in a court of the United States absent jurisdiction under this section,
the district court shall abstain from hearing such proceeding if an
action is commenced, and can be timely adjudicated, in a State
forum of appropriate jurisdiction. Any decision to abstain made
under this subsection is not reviewable by appeal or otherwise. This
subsection shall not be construed to limit the applicability of the
stay provided for by section 362 of title 11, United States Code, as
such section applies to an action affecting the property of the estate
in bankruptcy.
"(d) The district court in which a case under title 11 is commenced Gifts and
or is pending shall have exclusive jurisdiction of all of the property, property.
wherever located, of the debtor as of the commencement of such
case, and of the estate.".
(b) The table of sections for chapter 85 of title 28, United States
Code, is amended by amending the item relating to section 1334 to
read as follows:
"1334. Bankruptcy cases and proceedings.".
98 STAT. 334 PUBLIC LAW 98-353—JULY 10, 1984
SEC. 102. (a) Chapter 87 of title 28, United States Code, is amended
by adding at the end thereof the following new sections:
28 use 1408 Ǥ 1408. Venue of cases under title 11
Post, p. 335. "Except as provided in section 1410 of this title, a case under title
11 use 101 et II jj^oy ^g commenced in the district court for the district—
*^^ "(1) in which the domicile, residence, principal place of busi-
ness in the United States, or principal assets in the United
States, of the person or entity that is the subject of such case
have been located for the one hundred and eighty days immedi-
ately preceding such commencement, or for a longer portion of
such one-hundred-and-eighty-day period than the domicile, resi-
dence, or principal place of business, in the United States, or
principal assets in the United States, of such person were
located in any other district; or
"(2) in which there is pending a case under title 11 concerning
such person's affiliate, general partner, or partnership.
28 use 1409. "§ 1409. Venue of proceedings arising under title 11 or arising in or
related to cases under title 11
"(a) Except as otherwise provided in subsections (b) and (d), a
11 use 101 et proceeding arising under title 11 or arising in or related to a case
®^9- under title 11 may be commenced in the district court in which such
case is pending.
"(b) Except as provided in subsection (d) of this section, a trustee
in a case under title 11 may commence a proceeding arising in or
related to such case to recover a money judgment of or property
worth less than $1,000 or a consumer debt of less than $5,000 only in
the district court for the district in which the defendant resides.
"(c) Except as provided in subsection (b) of this section, a trustee
in a case under title 11 may commence a proceeding arising in or
related to such case as statutory successor to the debtor or creditors
11 use 541, 544. under section 541 or 5440b) of title 11 in the district court for the
district where the State or Federal court sits in which, under
applicable nonbankruptcy venue provisions, the debtor or creditors,
as the case may be, may have commenced an action on which
such proceeding is based if the case under title 11 had not been
commenced.
"(d) A trustee may commence a proceeding arising under title 11
or arising in or related to a case under title 11 based on a claim
arising after the commencement of such case from the operation of
the business of the debtor only in the district court for the district
where a State or Federal court sits in which, under applicable
nonbankruptcy venue provisions, an action on such claim may have
been brought.
"(e) A proceeding arising under title 11 or arising in or related to a
case under title 11, based on a claim arising after the commence-
ment of such case from the operation of the business of the debtor,
may be commenced against the representative of the estate in such
case in the district court for the district where the State or Federal
court sits in which the party commencing such proceeding may,
under applicable nonbankruptcy venue provisions, have brought an
action on such claim, or in the district court in which such case is
pending.
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 335
**§ 1410. Venue of cases ancillary to foreign proceedings 28 use i4io.
"(a) A case under section 304 of title 11 to enjoin the commence- n use 304.
ment or continuation of an action or proceeding in a State or
Feder^ court, or the enforcement of a judgment, may be com-
menced only in the district court for the district where the State or
Federal court sits in which is pending the action or proceeding
against which the injunction is sought.
"Ot>) A case under section 304 of title 11 to enjoin the enforcement
of a lien against a property, or to require the turnover of property of
an estate, may be commenced only in the district court for the
district in which such property is found.
"(c) A case under section 304 of title 11, other than a case specified
in subsection (a) or Ot)) of this section, may be commenced only in the
district court for the district in which is located the principal place
of business in the United States, or the principal assets in the iGlOWHi
United States, of the estate that is the subject of such case.
"§ 1411. Jury trials 28 u s e 1411.
"(a) Except as provided in subsection Ot)) of this section, this
chapter and title 11 do not affect any right to trial by jury that an 11 u s e 101 et
individual has under applicable nonbankruptcy law with regard to a seq.
personal injury or wrongful death tort claim.
"Q)) The district court may order the issues arising under section
303 of title 11 to be tried without a jury. 11 u s e 303.
"§ 1412. Change of venue 28 u s e 1412.
"A district court may transfer a case or proceeding under title 11 11 u s e 101 et
to a district court for another district, in the interest of justice or for seq.
the convenience of the parties.".
Ob) The table of sections of chapter 87 of title 28, United States
Code, is amended by adding at the end thereof the following new
items:
"1408. Venueof cases under title 11.
"1409. Venue of proceedings arising under title 11 or arising in or related to cases ,.,:; .j,„,j r.,
under title 11.
"1410. Venue of cases ancillary to foreign proceedings.
"1411. Jury trials.
"1412. Change of venue.".
SEC. 103. (a) Chapter 89 of title 28, United States Code, is amended
by inserting at the end thereof the following new section:
"§ 1452. Removal of claims related to bankruptcy cases 28 use 1452.
"(a) A party may remove any claim or cause of action in a civil
action other than a proceeding before the United States Tax Court
or a civil action by a governmental unit to enforce such governmen-
tal unit's police or regulatory power, to the district court for the
district where such civil action is pending, if such district court has
jurisdiction of such claim or cause of action under section 1334 of
t h i s title. Ante, p. 333.
"Ot)) The court to which such claim or cause of action is removed
may remand such claim or cause of action on any equitable ground.
An order entered under this subsection remanding a claim or cause
of action, or a decision to not remand, is not reviewable by appeal or
otherwise.".
Ot>) The table of sections of chapter 89 of title 28, United States
Code, is amended by adding at the end thereof the following new
item:
98 STAT. 336 PUBLIC LAW 98-353—JULY 10, 1984
"1452. Removal of claims related to bankruptcy cases.".
SEC. 104. (a) Title 28 of the United States Code is amended by
inserting after chapter 5 the following new chapter:
"CHAPTER 6—BANKRUPTCY JUDGES
"Sec.
"151. Designation of bankruptcy courts.
"152. Appointment of bankruptcy judges.
"153. Salaries; character of service.
"154. Division of business; chief judge.
"155. Temporary transfer of bankruptcy judges.
"156. Staff; expenses.
"157. Procedures.
"158. Appeals.
28 use 151. "§ 151. Designation of bankruptcy courts
"In each judicial district, the bankruptcy judges in regular active
service shall constitute a unit of the district court to be known as
the bankruptcy court for that district. Each bankruptcy judge, as a
judicial officer of the district court, may exercise the authority
conferred under this chapter with respect to any action, suit, or
proceeding and may preside alone and hold a regular or special
session of the court, except as otherwise provided by law or by rule
or order of the district court.
28 use 152. "§ 152. Appointment of bankruptcy judges
"(a)(1) The United States court of appeals for the circuit shall
appoint bankruptcy judges for the judicial districts established in
paragraph (2) in such numbers as are established in such paragraph.
Such appointments shall be made after considering the recommen-
dations of the Judicial Conference submitted pursuant to subsection
(b). Each bankruptcy judge shall be appointed for a term of fourteen
years, subject to the provisions of subsection (e). Bankruptcy judges
shall serve as judicial officers of the United States district court
use prec. title 1. established under Article III of the Constitution.
"(2) The bankruptcy judges appointed pursuant to this section
shall be appointed for the several judicial districts as follows:
"Districts
Alabama: Judges
Northern 5
Middle 2
Southern 2
Alaska 1
Arizona 4
Arkansas:
Eastern and Western 2
California:
Northern 7
Eastern 4
Central 12
Southern 3
Colorado 4
Connecticut 2
Delaware 1
District of Columbia 1
Florida:
Northern 1
Middle 2
Southern 3
Georgia:
Northern 4
Middle 2
Southern 1
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 337
Hawaii 1
Idaho 1
Illinois:
Northern 8
Central 2
Southern 1
Indiana:
Northern 2
Southern 4
Iowa:
Northern 1
Southern 1
Kansas 3
Kentucky:
Eastern 1
Western 2
Louisiana:
Eastern 2
Middle 1
Western 2
Maine 2
Maryland 2
Massachusetts 4
Michigan:
Eastern 4
Western 2
Minnesota 4
Mississippi:
Northern 1
Southern 2
Missouri:
Eastern 3
Western 3 -i
Montana 1
Nebraska 1
Nevada 2
New Hampshire 1
New Jersey 5
New Mexico 2
New York:
Northern 2
Southern 7
Eastern 6
Western 3
North Carolina:
Eastern 2
Middle 2
Western 1
North Dakota 1
Ohio:
Northern 8
Southern 7
Oklahoma:
Northern 1
Eastern 1
Western 2
Oregon 4
Pennsylvania:
Eastern 3
Middle 2
Western 3
Puerto Rico 2
Rhode Island 1
South Carolina 1
South Dakota 1
Tennessee: "^ Jr:.-: c:::,
Eastern 2
Middle 2
Western 2
31-194 0 - 86 - 13 : QL. 3 P a r t 1
98 STAT. 338 PUBLIC LAW 98-353—JULY 10, 1984
Texas:
Northern 4
Eastern 1
Southern 3
Western 2
Utah 2
Vermont 1
Virginia:
Eastern 3
Western 3
Washington;
Eastern 1
Western 4
West Virginia:
Northern 1
Southern 1
Wisconsin:
Eastern 3
Western 2
Wyoming 1.".
"(3) Whenever a majority of the judges of any court of appeals
cannot agree upon the appointment of a bankruptcy judge, the chief
judge of such court shall make such appointment.
"(4) The judges of the district courts for the territories shall serve
as the bankruptcy judges for such courts. The United States court of
appeals for the circuit within which such a territorial district court
is located may appoint bankruptcy judges under this chapter for
such district if authorized to do so by the Congress of the United
States under this section.
Judicial "(b)(1) The Judicial Conference of the United States shall, from
thTu s"'^^ ^^^^ to time, and after considering the recommendations submitted
by the Director of the Administrative Office of the United States
Courts after such Director has consulted with the judicial council of
the circuit involved, determine the official duty stations of bank-
ruptcy judges and places of holding court.
"(2) The Judicial Conference shall, from time to time, submit
recommendations to the Congress regarding the number of bank-
ruptcy judges needed and the districts in which such judges are
needed.
"(c) Each bankruptcy judge may hold court at such places within
the judicial district, in addition to the official duty station of such
judge, as the business of the court may require.
"(d) With the approval of the Judicial Conference and of each of
the judicial councils involved, a bankruptcy judge may be designated
to serve in any district adjacent to or near the district for which
such bankruptcy judge was appointed.
"(e) A bankruptcy judge may be removed during the term for
which such bankruptcy judge is appointed, only for incompetence,
misconduct, neglect of duty, or physical or mental disability and
only by the judicial council of the circuit in which the judge's official
duty station is located. Removal may not occur unless a majority of
all of the judges of such council concur in the order of removal.
Before any order of removal may be entered, a full specification of
charges shall be furnished to such bankruptcy judge who shall be
accorded an opportunity to be heard on such charges.
28 use 158. *•§ 153. Salaries; character of service
"(a) Each bankruptcy judge shall serve on a full-time basis and
shall receive as full compensation for his services a salary at an
annual rate determined under section 225 of the Federal Salary Act
of 1967 (2 U.S.C. 351-361) as adjusted by section 461 of this title, to
db
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT, 339
be paid at such times £is the Judicial Conference of the United States
determines.
"(b) A bankruptcy judge may not engage in the practice of law and
may not engage in any other practice, business, occupation, or
emplojonent inconsistent with the expeditious, proper, and impar-
tial performance of such bankruptcy judge's duties as a judicial
officer. The Conference may promulgate appropriate rules and regu- ., ,„
lations to implement this subsection.
"(c) Each individual appointed under this chapter shall take the
oath or affirmation prescribed by section 453 of this title before
performing the duties of the office of bankruptcy judge.
"§ 154. Division of businesses; chief judge 28 USC 154.
"(a) Each bankruptcy court for a district having more than one
bankruptcy judge shall by majority vote promulgate rules for the
division of business among the bankruptcy judges to the extent that
the division of business is not otherwise provided for by the rules of r|^^ ,^ ^^.^.q
the district court. - ..
"(b) In each district court having more than one bankruptcy judge
the district court shall designate one judge to serve as chief judge of
such bankruptcy court. Whenever a majority of the judges of such
district court cannot agree upon the designation as chief judge, the
chief judge of such district court shall make such designation. The
chief judge of the bankruptcy court shall ensure that the rules of the
bankruptcy court and of the district court are observed and
that the business of the bankruptcy court is handled effectively and
expeditiously.
"§ 155. Temporary transfer of bankruptcy judges 28 USC 155.
"(a) A bankruptcy judge may be transferred to serve temporarily
as a bankruptcy judge in any judicial district other than the judicial
district for which such bankruptcy judge was appointed upon the
approval of the judicial council of each of the circuits involved.
"(b) A bankruptcy judge who has retired may, upon consent, be
recalled to serve as a bankruptcy judge in any judicial district by the
judicial council of the circuit within which such district is located.
Upon recall, a bankruptcy judge may receive a salary for such
service in accordance with regulations promulgated by the Judicial
C!onference of the United States, subject to the restrictions on the
payment of an annuity in subchapter III of chapter 83 of title 5. 5 USC 8331.
"§ 156. Staff; expenses 28 USC 156.
"(a) Each bankruptcy judge may appoint a secretary, a law clerk,
and such additional assistants as the Director of the Administrative
Office of the United States Courts determines to be necessary.
"(b) Upon certification to the judicial council of the circuit
involved and to the Director of the Administrative Office of the
United States Courts that the number of cases and proceedings
pending within the jurisdiction under section 1334 of this title Ante, p. 333.
within a judicial district so warrants, the bankruptcy judges for such
district may appoint an individual to serve as clerk of such bank-
ruptcy court. The clerk may appoint, with the approval of such
bankruptcy judges, and in such number as may be approved by the
Director, necessary deputies, and may remove such deputies
with the approval of such bankruptcy judges.
"(c) Any court may utilize facilities or services, either on or off the
court's premises, which pertain to the provision of notices, dockets,
98 STAT. 340 PUBLIC LAW 98-353—JULY 10, 1984
calendars, and other administrative information to parties in cases
filed under the provisions of title 11, United States Code, where the
costs of such facilities or services are paid for out of the assets of the
estate and are not charged to the United States. The utilization of
such facilities or services shall be subject to such conditions and
limitations as the pertinent circuit council may prescribe.
28 use 157. "§ 157. Procedures
"(a) Each district court may provide that any or all cases under
11 use 101 et title 11 and any or all proceedings arising under title 11 or arising in
*^9- or related to a case under title 11 shall be referred to the
bankruptcy judges for the district.
"(b)(1) Bankruptcy judges may hear and determine all cases under
title 11 and all core proceedings arising under title 11, or arising in a
case under title 11, referred under subsection (a) of this section, and
may enter appropriate orders and judgments, subject to review
Post, p. 341. under section 158 of this title.
"(2) Core proceedings include, but are not limited to—
"(A) matters concerning the administration of the estate;
"(B) allowance or disallowance of claims against the estate or
exemptions from property of the estate, and estimation of
claims or interest for the purposes of confirming a plan under
11 use 1101 et chapter 11 or 13 of title 11 but not the liquidation or estimation
seq., 1301 et seq. Qf contingent or unliquidated personal injury tort or wrongful
death claims against the estate for purposes of distribution in a
case under title 11;
"(C) counterclaims by the estate against persons filing claims
'• ** against the estate;
"(D) orders in respect to obtaining credit;
"(E) orders to turn over property of the estate;
"(F) proceedings to determine, avoid, or recover preferences;
"(G) motions to terminate, annul or modify the automatic
stay;
"(H) proceedings to determine, avoid, or recover fraudulent
conveyances;
"(I) determinations as to the dischargeability of particular
debts;
"(J) objections to discharges;
"(K) determinations of the validity, extent, or priority of liens;
• "(L) confirmations of plans;
"(M) orders approving the use or lease of property, including
the use of cash collateral;
"(N) orders approving the sale of property other than prop-
erty resulting from claims brought by the estate against persons
who have not filed claims against the estate; and
"(O) other proceedings affecting the liquidation of the assets
^ of the estate or the adjustment of the debtor-creditor or the
equity security holder relationship, except personal injury tort
or wrongful death claims.
"(3) The bankruptcy judge shall determine, on the judge's own
motion or on timely motion of a party, whether a proceeding is a
core proceeding under this subsection or is a proceeding that is
otherwise related to a case under title 11. A determination that a
proceeding is not a core proceeding shall not be made solely on the
basis that its resolution may be affected by State law.
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 341
"(4) Non-core proceedings under section 157(bX2XB) of title 28,
United States Code, shall not be subject to the mandatoiy abstention Ante, p. 340.
provisions of section 1334(cX2). ^"*^' P ^^^
"(5) The district court shall order that personal injury tort and
wrongful death claims shall be tried in the district court in which
the bankruptcy case is pending, or in the district court in the district
in which the claim arose, as determined by the district court in
which the bankruptcy case is pending.
"(cXl) A bankruptcy judge may hear a proceeding that is not a
core proceeding but that is otherwise related to a case under title 11. n use loi et
In such proceeding, the bankruptcy judge shall submit proposed ^^9-
findings of fact and conclusions of law to the district court, and any
final order or judgment shall be entered by the district judge after
considering the bankruptcy judge's proposed findings and conclu-
sions and after reviewing de novo those matters to which any party
has timely and specifically objected.
"(2) Notwithstanding the provisions of paragraph (1) of this sub-
section, the district court, with the consent of all the parties to the
proceeding, may refer a proceeding related to a case under title 11 to
a bankruptcy judge to hear and determine and to enter appropriate
orders and judgments, subject to review under section 158 of this
title. Infra.
"(d) The district court may withdraw, in whole or in part, any case
or proceeding referred under this section, on its own motion or on
timely motion of any party, for cause shown. The district court shall,
on timely motion of a party, so withdraw a proceeding if the court
determines that resolution of the proceeding requires consideration
of both title 11 and other laws of the United States regulating
organizations or activities affecting interstate commerce.
"§ 158. Appeals 28 use 158.
"(a) The district courts of the United States shall have jurisdiction
to hear appeals from final judgments, orders, and decrees, and, with
leave of the court, from interlocutory orders and decrees, of bank-
ruptcy judges entered in cases and proceedings referred to the
bankruptcy judges under section 157 of this title. An appeal under Ante, p. 340.
this subsection shall be taken only to the district court for the
judicial district in which the bankruptcy judge is serving.
"(bXD The judicial council of a circuit may establish a bankruptcy
appellate panel, comprised of bankruptcy judges from districts
within the circuit, to hear and determine, upon the consent of all
the parties, appeals under subsection (a) of this section. ^^'
"(2) No appeal may be referred to a panel under this subsection
unless the district judges for the district, by majority vote, authorize
such referral of appeals originating within the district.
"(3) A panel established under this section shall consist of three
bankruptcy judges, provided a bankruptcy judge may not hear an
appeal originating within a district for which the judge is appointed
or designated under section 152 of this title. Ante, p. 336.
"(c) An appeal under subsections (a) and (b) of this section shall be
taken in the same manner as appeals in civil proceedings generally
are taken to the courts of appeals from the district courts and in the
time provided by Rule 8002 of the Bankruptcy Rules. ii use app.
"(d) The courts of appeals shall have jurisdiction of appeals from
all final decisions, judgments, orders, and decrees entered under
subsections (a) and (b) of this section.".
98 STAT. 342 PUBLIC LAW 98-353—JULY 10, 1984
(b) The table of chapters of part I of title 28, United States Code, is
amended by inserting after the item relating to chapter 5, the
following new item:
"6. Bankruptcy judges 151.".
28 use 153 note. SEC. 105. (a) The salary of a bankruptcy judge in effect on June 27,
1984, shall remain in effect until changed as a result of a determina-
tion or adjustment made pursuant to section 153(a) of title 28,
Ante, p. 338. United States Code, as added by this Act.
28 use 152 note. SEC. 106. (a) Notwithstanding section 152 of title 28, United States
Ante, p. 336. Code, as added by this Act, the term of office of a bankruptcy judge
who is serving on the date of enactment of this Act is extended to
and expires four years after the date such bankruptcy judge was last
appointed to such office or on October 1, 1986, whichever is later.
(b)(1) Notwithstanding section 153(a) of title 28, United States
Code, as added by this Act, and notwithstanding subsection (a) of
this section, a bankruptcy judge serving on a part-time basis on the
date of enactment of this Act may continue to serve on such basis
for a period not to exceed two years from the date of enactment of
this Act.
(2) Notwithstanding the provisions of section 1530t)) of title 28,
United States Code, a bankruptcy judge serving on a part-time basis
may engage in the practice of law but may not engage in any other
practice, business, occupation, or employment inconsistent with the
expeditious, proper, and impartial performance of such bankruptcy
judge's duties as a judicial officer. The Judicial Conference of the
United States may promulgate appropriate rules and regulations to
implement this paragraph.
SEC. 107. Section 372(c)(6)(B)(vii) of title 28, United States Code, is
amended by striking out "section 153" and inserting in lieu thereof
"section 152".
SEC. 108. (a) Section 634(a) of title 28, United States Code, is
amended by striking out "the rates now or hereafter provided for
full-time or part-time referees in bankruptcy, respectively, referred
to in section 40a of the Bankruptcy Act (11 U.S.C. 68(a)), as
amended," and inserting in lieu thereof "rates determined under
section 225 of the Federal Salary Act of 1967 (2 U.S.C. 351-361) as
adjusted by section 461 of this title".
28 use 634 note. (b) The maximum rates for salary of full-time and part-time
United States magistrates in effect on June 27,1984, shall remain in
effect until changed as a result of a determination made under
Supra. section 634(a) of title 28, United States Code, as amended by this
Act.
SEC. 109. Section 957 of title 28, United States Code, is amended by
strikinET out "district'.
SEC. 110. Section 1360 of title 28, United States Code, is
amended—
(1) by striking out "or Territories";
- q V '^ (2) by striking out "or Territory" each place it appears; and
(3) by striking out "within the Territory" and inserting in lieu
thereof "within the State".
SEC. 111. (a) Section 1930 of title 28, United States Code, is
amended by striking out "clerk of the bankruptcy court" each place
it appears and inserting in lieu thereof "clerk of the court".
(b) The heading for section 1930 of title 28, United States Code, is
amended to read as follows:
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 343
"§ 1930. Bankruptcy fees.".
(c) The table of sections for chapter 125 of title 28, United States ^^%\k
Code, is amended by striking out "Bankruptcy courts" and inserting
in lieu thereof "Bankruptcy fees".
SEC. 112. Subsections (f), (j), (k), (1), and (m) of section 8339,
subsections (bXD and (d) of section 8341, and section 8344(a)(A) of
title 5, United States Code, are each amended by striking out "and
(o)" and inserting in lieu thereof "and (n)".
SEC. 113. Section 402(b) of the Act of November 6, 1978 (Public 11 u s e note
Law 95-598; 92 Stat. 2682), is amended by striking out "shall take prec. 101.
effect on June 28, 1984" and inserting in lieu thereof "shall not be
effective''.
SEC. 114. Sections 404,405(a), 405(b), 405(c), 406,407, and 409 of the 28 u s e notes
Act of November 6, 1978 (Public Law 95-598; 92 Stat. 2683), are prec. 151, notes
prec. 1471.
repealed.
SEC. 115. (a) On the date of the enactment of this Act the appropri- 28 u s e 1334
ate district court of the United States shall have jurisdiction of— note. A
(1) cases, and matters and proceedings in cases, under the
Bankruptcy Act that are pending immediately before such date 11 u s e note
in the bankruptcy courts continued by section 404(a) of the Act prec. 101.
of November 6, 1978 (Public Law 95-598; 92 Stat. 2687), and 28 u s e note
(2) cases under title 11 of the United States Code, and proceed- prec. 151.
ings arising under title 11 of the United States Code or arising
in or related to cases under title 11 of the United States Code,
that are pending immediately before such date in the bank-
ruptcy courts continued by section 404(a) of the Act of Novem-
ber 6,1978 (Public Law 95-598; 92 Stat. 2687).
(b) On the date of the enactment of this Act, there shall be
transferred to the appropriate district court of the United States
appeals from final judgments, orders, and decrees of the bankruptcy
courts pending immediately before such date in the bankruptcy
appellate panels appointed under section 405(c) of the Act of Novem-
ber 6,1978 (Public Law 95-598; 92 Stat. 2685). 28 u s e note
prec. 1471.
SEC. 116. (a) Section 8331(22) of title 5, United States Code, is
amended—
(1) by striking out "adding this paragraph" and inserting in
lieu thereof "of November 6, 1978 (Public Law 95-598; 92 Stat.
2549)";
(2) by striking out subparagraph (A) and inserting in lieu
thereof the following new subparagraph:
"(A) who is serving as a United States bankruptcy judge
on the date of enactment of the Bankruptcy Amendments
and Federal Judgeship Act of 1984, and continues to serve Ante, p. 333.
as a bankruptcy judge after such date until either the date
on which a successor for such judge is appointed, or Octo-
ber 1, 1986, whichever date is earlier;";
(3) in subparagraph (B)—
(A) by striking out "transition period" and inserting in
lieu thereof "period beginning on October 1, 1979, and
ending on the date of enactment of the Bankruptcy Amend-
ments and Federal Judgeship Act of 1984";
(B) by striking out the period at the end thereof and
inserting in lieu thereof "; or", and
.010-• Lr. I ')BiSm
(4) by adding at the end thereof the following new subpara-
graph:
98 STAT. 344 PUBLIC LAW 98-353—JULY 10, 1984
"(C) who is appointed as a bankruptcy judge under sec-
Ante, p. 336. tion 152 of title 28.".
(b)(1) The first sentence of section 8334(a)(1) of title 5, United
States Code, is amended by inserting "and a bankruptcy judge"
before the period.
(2) The matter relating to bankruptcy judges in the table set out in
section 8334(c) of title 5, United States Code, is amended—
(A) by striking out the following item:
"7 After January 1,1970.".
and
(B) by inserting in lieu of the item stricken by subparagraph
(A) the following new items:
"7 January 1, 1970, to December 31, 1983.
"8 After December 31,1983.".
97 Stat. 701. (c) Section 8336 of title 5, United States Code, is amended—
(1) by redesignating subsection (k) as subsection (1), and
Retirement. (2) by inserting after subsection (j) the following new
subsection:
"(k) A bankruptcy judge who is separated from service, except by
removal, after becoming sixty-two years of age and completing ten
years of service as a bankruptcy judge is entitled to an annuity.".
(d) Section 8339 of title 5, United States Code, is amended by—
(1) inserting "or (n)" after "(c)" in subsection (g)(2);
(2) striking out "or (c)" each place it appears in subsection (g)
and inserting in lieu thereof "(c), or (n)"; and
(3) striking out "March 31,1979, and before June 27,1984," in
subsection (n) and inserting in lieu thereof "as a referee in
bankruptcy and".
Effective date. (e) The amendments made by this section shall take effect on the
5 u s e 8331 note. date of enactment and shall apply to bankruptcy judges who retire
on or after such date.
Retirement. SEC. 117. The adjustments in the retirement provisions made by
5 u s e 8331 note. this Act shall not be construed to be a "new government retirement
system" for purposes of the Federal Employees Retirement Contri-
97 Stat. 1105. bution Temporary Adjustment Act of 1983 (Public Law 98-168).
5 u s e 5948 note. SEC. 118. Section 105 of title 11, United States Code, is amended—
(1) by deleting the word "bankruptcy" wherever it appears
therein; and
(2) by adding at the. end thereof the following new subsection:
"(c) The ability of any district judge or other officer or employee of
a district court to exercise any of the authority or responsibilities
conferred upon the court under this title shall be determined by
reference to the provisions relating to such judge, officer, or em-
28 u s e 1 et seq. ployee set forth in title 28. This subsection shall not be interpreted
to exclude bankruptcy judges and other officers or employees
Ante, p. 336. appointed pursuant to chapter 6 of title 28 from its operation.".
Provisions held SEC. 119. If any provision of this Act or the application thereof to
invalid. any person or circumstance is held invalid, the remainder of this
28 u s e 151 note.
Act, or the application of that provision to persons or circumstances
other than those as to which it is held invalid, is not affected
thereby.
28 u s e 152 note. SEC. 120. (aXD Whenever a court of appeals is authorized to fill a
vacancy that occurs on a bankruptcy court of the United States,
such court of appeals shall appoint to fill that vacancy a person
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 345
whose character, experience, ability, and impartiality qualify such
person to serve in the Federal judiciary.
(2) It is the sense of the Congress that the courts of appeals should
consider for appointment under section 152 of title 28, United States
Code, to the first vacancy which arises after the date of the enact- Ante, p. 336.
ment of this Act in the office of each bankruptcy judge, the bank-
ruptcy judge who holds such office immediately before such vacancy
arises, if such bankruptcy judge requests to be considered for such
appointment.
Ob) The judicial council of the circuit involved shall assist the court
of appeals by evaluating potential nominees and by recommending
to such court for consideration for appointment to each vacancy on
the bankruptcy court persons who are qualified to be bankruptcy
judges under regulations prescribed by the Judicial Conference of
the United States. In the case of the first vacancy which arises after
the date of the enactment of this Act in the office of each bank-
ruptcy judge, such potential nominees shall include the bankruptcy "^ '•'*
judge who holds such office immediately before such vacancy arises,
if such bankruptcy judge requests to be considered for such appoint-
ment and the judicial council determines that such judge is qualified
under subsection (c) of this section to continue to serve. Such • 4^ >'»^^v
potential nominees shall receive consideration equal to that given
all other potential nominees for such position.
(c) Before transmitting to the court of appeals the names of the
persons the judicial council for the circuit deems best qualified to fill '^.
any existing vacancy, the judicial council shall have determined
that—
(1) public notice of such vacancy has been given and an effort ^ *'
has been made, in the case of each such vacancy, to identify '*''**
qualified candidates, without regard to race, color, sex, religion,
or national origin,
(2) such persons are members in good standing of at least one
State bar, or the District of Columbia bar, and members in good •"' ^*'' " m^
standing of every other bar of which they are members,
(3) such persons possess, and have a reputation for, integrity
and good character,
(4) such persons are of sound physical and mental health,
(5) such persons possess and have demonstrated commitment
to equal justice under law,
(6) such persons possess and have demonstrated outstanding
legal ability and competence, as evidenced by substantial legal
experience, ability to deal with complex legal problems, apti-
tude for legal scholarship and writing, and familiarity with
courts and court processes, and
(7) such persons demeanor, character, and personality indi-
cate that they would exhibit judicial temperament if appointed
to the position of United States bankruptcy judge.
SEC. 121. (a) Section 402 of the Act entitled "An Act to establish a n use note
uniform Law on the Subject of Bankruptcies" (Public Law 95-598) is P^^ec lOi
amended in subsections (b) and (e) by striking out "June 28, 1984"
each place it appears and inserting in lieu thereof "the date of , .>js
enactment of the Bankruptcy Amendments and Federal Judgeship
Act of 1984".
(b) Section 404 of such Act is amended in subsections (a) and (b) by 28 use note
striking out "June 27, 1984" each place it appears and inserting in P^®'^- ^^^
lieu thereof "the day before the date of enactment of the Bank-
ruptcy Amendments and Federal Judgeship Act of 1984".
98 STAT. 346 PUBLIC LAW 98-353—JULY 10, 1984
28 u s e note (c) Section 406 of such Act is amended by striking out "June 27,
prec. 151. 1984" each place it appears and inserting in lieu thereof "the day
before the date of enactment of the Bankruptcy Amendments and
Federal Judgeship Act of 1984".
28 u s e note (d) Section 409 of such Act is amended by—
prec. 1471.
(1) striking out "June 28, 1984" each place it appears and
inserting in lieu thereof "the day before the date of enactment
of the Bankruptcy Amendments and Federal Judgeship Act of
1984"; and
(2) striking out "June 27, 1984" each place it appears and
inserting in lieu thereof "the day before the date of enactment
of the Bankruptcy Amendments and Federal Judgeship Act of
1984".
28 u s e note (e) The term of office of any bankruptcy judge who was serving on
prec. 151. June 27,1984, is extended to and shall expire at the end of the day of
enactment of this Act.
Ante, p. 268. (f) Section 8339(n) of title 5, United States Code, is amended by
striking out "June 28, 1984" and inserting in lieu thereof "the date
of enactment of the Bankruptcy Amendments and Federal Judge-
ship Act of 1984".
Ante, p. 268. (g) Section 8331(22) of title 5, United States Code, is amended by
striking out "June 27, 1984" and inserting in lieu thereof "the day
before the date of enactment of the Bankruptcy Amendments and
Federal Judgeship Act of 1984".
Effective date. SEC. 122. (a) Except as otherwise provided in this section, this title
28 u s e 151 note. and the amendments made by this title shall take effect on the date
of the enactment of this Act.
Ante, p. 333. (b) Section 1334(c)(2) of title 28, United States Code, and section
Ante, p. 335. 1411(a) of title 28, United States Code, as added by this Act, shall not
apply with respect to cases under title 11 of the United States Code
that are pending on the date of enactment of this Act, or to
proceedings arising in or related to such cases.
Effective date. (c) Sections 108(b), 113, and 121(e) shall take effect on June 27,
1984.
TITLE II—JUDGESHIPS
President of U.S. SEC. 201. (a)(1) Subject to the provisions of paragraph (2), the
28 u s e 44 note. President shall appoint, by and with the advice and consent of the
Senate, two additional circuit judges for the first circuit court
of appeals, two additional circuit judges for the second circuit court
of appeals, two additional circuit judges for the third circuit court of
appeals, one additional circuit judge for the fourth circuit court of
appeals, two additional circuit judges for the fifth circuit court of
appeals, four additional circuit judges for the sixth circuit court of
appeals, two additional circuit judges for the seventh circuit court of
appeals, one additional circuit judge for the eighth circuit court of
appeals, five additional circuit judges for the ninth circuit court of
appeals, two additional circuit judges for the tenth circuit court of
appeals, and one additional circuit judge for the District of Columbia
circuit court of appeals.
President of U.S. (2) The President shall appoint, by and with the advice and
consent of the Senate, no more than 11 of such judges prior to
January 21,1985.
28 u s e 44. (b) In order that the table contained in section 44(a) of title 28,
United States Code, will, with respect to each judicial circuit, reflect
the changes in the total number of permanent circuit judgeships
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 347
authorized as a result of subsection (a) of this section, such table is
amended to read as follows:
"Circuits Number of Judges
District of Columbia 12
First 6
Second 13
Third 12
Fourth 11
Fifth 16
Sixth 15
Seventh 11
Eighth 10
Ninth 28
Tenth 10
Eleveirth. 12
Federal 12.".
SEC. 202. (a) Subject to the provisions of subsection (c), the Presi- President of U.S.
dent shall appoint, by and with the advice and consent of the 28 u s e 133 note.
Senate, one additional district judge for the southern district of
Alabama, one additional district judge for the district of Alaska, five
additional district judges for the central district of California, one
additional district judge for the district of Colorado, one additional
district judge for the district of Connecticut, one additional district
judge for the district of Delaware, three additional district judges for
the southern district of Florida, one additional district judge for the
middle district of Georgia, one additional district judge for the
district of Hawaii, four additional district judges for the northern
district of Illinois, one additional district judge for the southern
district of Illinois, one additional district judge for the western
district of Kentucky, one additional district judge for the western
district of Louisiana, one additional district judge for the district of
Maryland, one additional district judge for the district of Massachu-
setts, two additional district judges for the eastern district of Michi-
gan, one additional district judge for the district of Minnesota, one
additional district judge for the northern district of Mississippi, two
additional district judges for the southern district of
Mississippi, one additional district judge for the eastern district of
Missouri, one additional district judge for the district of Montana,
one additional district judge for the district of Nevada, three addi-
tional district judges for the district of New Jersey, one additional
district judge for the northern district of New York, two additional
district judges for the eastern district of New York, one additional
district judge for the southern district of Ohio, one additional dis-
trict judge for the western district of Oklahoma, one additional
district judge for the district of Rhode Island, one additional district
judge for the eastern district of Tennessee, one additional district
judge for the western district of Tennessee, one additional dis-
trict judge for the northern district of Texas, two additional
district judges for the eastern district of Texas, one additional
district judge for the western district of Texas, one additional dis-
trict judge for the district of Utah, one additional district judge for
the eastern district of Virginia, one additional district judge for the
eastern district of Washington, one additional district judge for the
western district of Washington, and one additional district judge for
the district of Wyoming.
(b) Subject to the provisions of subsection (c) the President shall President of U.S.
appoint, by and with the advice and consent of the Senate, one 28 u s e 133 note.
additional district judge for the western district of Arkansas, one
additional district judge for the northern district of Illinois,
98 STAT. 348 PUBLIC LAW 98-353—JULY 10, 1984
one additional district judge for the northern district of Indiana, one
additional district judge for the district of Massachusetts, one addi-
tional district judge for the western district of New York, one
additional district judge for the eastern district of North Carolina,
one additional district judge for the northern district of Ohio, and
one additional district judge for the western district of Washington.
The first vacancy in each of the offices of district judge authorized
by this subsection, occurring five years or more after the effective
date of this Act, shall not be filled.
President of U.S. (c) For the judgeships created in subsections (a) and (b), the
28 use 133 note. President shall appoint, by and with the advice and consent of
the Senate, no more than twenty-nine of such judges prior to
January 21, 1985.
28 use 133 note. (d) The existing district judgeship for the district of Minnesota and
the existing district judgeship for the northern district of Ohio,
heretofore authorized by section 2 of the Act of October 20, 1978
28 use 133 note. (Public Law 95-486, 92 Stat. 1631), shall, as of the effective date of
this Act, be authorized under section 133 of title 28, United States
Code, and the incumbents of those offices shall henceforth hold their
offices under section 133, as amended by this Act.
28 use 133. (e) In order that the table contained in section 133 of title 28,
United States Code, will, with respect to each judicial district,
reflect the changes in the total number of permanent district judge-
ships authorized as a result of subsections (a) and (c) of this section,
such table is amended to read as follows:
"Districts
Alabama: Judges
Northern 7
Middle 3
Southern 3
Alaska 3
Arizona 8
Arkansas:
Eastern 3
Western 1
Eastern and Western 2
California:
Northern 12
Eastern 6
Central 22
Southern 7
Colorado. 7
Connecticut 6
Delaware 4
District of Columbia 15
Florida:
Northern 3
Middle 9
Southern 15
Georgia:
Northern 11
Middle 3
Southern 3
Hawaii 3
Idaho 2
Illinois:
Northern 20
Central 3
Southern 3
Indiana:
Northern 4
Southern 5
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 349
Iowa:
Northern 1
Southern 2
Northern and Southern 1
Kansas 5
Kentucky:
Eastern 4
Western 4
Eastern and Western 1
Louisiana:
Eastern 13
Middle 2
Western 6
Maine 2
Maryland 10
Massachusetts 11
Michigan:
Eastern 15
Western 4
Minnesota 7
Mississippi:
Northern 3
Southern 5
Missouri:
Eastern 5
Western 5
Eastern and Western 2
Montana 3
Nebraska 3
Nevada 4
New Hampshire 2
New Jersey 14
New Mexico 4
New York:
Northern 4
Southern 27
Eastern „ 12
Western 3
North Carolina:
Eastern 3
Middle 3
Western 3
North Dakota 2
Ohio:
Northern 10
Southern 7
Oklahoma:
Northern 2
Eastern 1
Western 4
Northern, Eastern, and Western 2 , ' D.fw i
Oregon 5
Pennsylvania:
Eastern 19
Middle 5
Western 10
Puerto Rico 7
Rhode Island 3
South Carolina 8 , , • v .„ T ,.i,»
South Dakota 3 " "' ' "*
Tennessee:
Eastern 4
Middle 3
Western 4 -^, ..jj .i
Texas:
Northern 10
Eastern 6
Southern 13
Western 7
Utah 4
Vermont 2
98 STAT. 350 PUBLIC LAW 98-353—JULY 10, 1984
Virginia:
Eastern 9
Western 4
Washington:
Eastern 3
Western 6
West Virginia:
Northern 2
Southern 4
Wisconsin:
Eastern 4
Western 2
Wyoming 2.".
SEC. 203. (a) Section 131 of title 28, United States Code, is amended
in the second paragraph thereof by inserting "Jackson," after
"Lander,".
(b) Section 98(a) of title 28, United States Code, is amended by
inserting ", and Houma" after "New Orleans".
SEC. 204. (a) Section 371 of title 28, United States Code, is amended
to read as follows:
"§ 371. Retirement on salary; retirement in senior status
"(a) Any justice or judge of the United States appointed to hold
office during good behavior may retire from the office after attain-
ing the age and meeting the service requirements, whether continu-
ous or otherwise, of subsection (c) and shall, during the remainder of
his lifetime, receive an annuity equal to the salary he was receiving
at the time he retired.
"Ob) Any justice or judge of the United States appointed to hold
office during good behavior may retain the office but retire from
regular active service after attaining the age and meeting the
service requirements, whether continuous or otherwise, of subsec-
tion (c) of this section and shall, during the remainder of his
lifetime, continue to receive the salary of the office.
"(c) The age and service requirements for retirement under this
section are as follows:
"Attained age: Years of service:
65 15
66 14
67 13
68 12
69 11
70 10
President of U.S. "(d) The President shall appoint, by and with the advice and
consent of the Senate, a successor to a justice or judge who retires
under this section.".
Ot)) The item relating to section 371 in the table of sections of
chapter 17 of title 28 is amended to read as follows:
"371. Retirement on salary; retirement in senior status.".
28 u s e 371 note. (c) The amendments made by this section shall apply with respect
to any justice or judge of the United States appointed to hold office
during good behavior who retires on or after the date of enactment
of this Act.
Retirement. SEC. 205. Section 8701(a) of title 5, United States Code, is amended
by redesignating paragraphs (5) through (8) as paragraphs (6)
through (9), respectively, and by adding a new paragraph (5) as
follows:
"(5) a justice or judge of the United States appointed to hold
office during good behavior (i) who is in regular active judicial
service, or (ii) who is retired from regular active service under
Supra. section 3710)) or 372(a) of title 28, United States Code, or (iii)
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 351
who has resigned the judicial office under section 371(a) of title
28 with the continued right during the remainder of his Ante, p. 350.
lifetime to receive the salary of the office at the time of his
resicmation*' •
SEC. 206. Section 8714a(c) of title 5, United States Code, is Insurance.
amended by adding a new paragraph (3) as follows:
"(3) Notwithstanding paragraph (c)(1) of this section, a justice or
judge of the United States as defined by section 8701(a)(5) of this
title who resigns his office without meeting the requirements of Ante, p. 350.
section 371(a) of title 28, United States Code, for continuation of the Ante, p. 350.
judicial salary shall have the right to convert regular optional life
insurance coverage issued under this section during his judicial
service to an individual policy of life insurance under the same
conditions approved by the Office governing conversion of basic life
insurance coverage for employees eligible as provided in section
8706(a) of this title.".
SEC. 207. Section 8714b(c) of title 5, United States Code, is Insurance.
amended by adding to paragraph (1) at the end thereof the follow-
ing: "A justice or judge of the United States as defined by section
8701(a)(5) of this title who resigns his office without meeting the Ante, p. 350.
requirements of section 371(a) of title 28, United States Code, for Ante, p. 350.
continuation of the judicial salary shall have the right to convert
additional optional life insurance coverage issued under this section
during his judicial service to an individual policy of life insurance
under the same conditions approved by the Office governing con-
version of basic life insurance coverage for employees eligible as
provided in section 8706(a) of this title. .
SEC. 208. (a) Section 8706 of title 5, United States Code, is amended .iTi?4i.i/c;,
by adding at the end thereof the following new subsection:
"(f) Under regulations prescribed by the Office, each policy pur-
chase under this chapter shall provide that an insured Federal judge
may make an irrevocable assignment of the judge's incidents of
ownership in the policy.".
(b) The heading for section 8706 of title 5, United States Code, and
the item relating to section 8706 in the analysis for chapter 87 of
such title are each amended by inserting "; assignment of owner-
ship" after "insurance".
SEC. 209. (a) Except as provided in subsection (h), the amendments 5 u s e 8706 note.
made by this Act to section 8706 of title 5, United States Code, shall
apply to policies purchased by judges after the date of enactment of
this Act.
(b) If a company which issued a policy which is in effect on the
date of the enactment of this Act agrees, the amendments made by
this Act shall apply to such policy.
SEC. 210. Section 634(c) of title 28, United States Code, is amended
by striking out "subsection III" and inserting in lieu thereof "sub-
chapter III".
SEC. 211. It is the sense of the Congress that the President, in Discrimination,
selecting individuals for nomination to the Federal judgeships cre- prohibition.
28 u s e 44 note.
ated by this Act, shall give due consideration to qualified individuals
without regard to race, color, sex, religion, or national origin.
98 STAT. 352 PUBLIC LAW 98-353—JULY 10, 1984
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 indi-
vidual 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 dismis-
sal 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
11 use 701 et petition under chapter 7 of this title or on or before the date
s«9- 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 reaf-
firm 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
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 353
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 para-
graph; and
"(C) nothing in subparagraphs (A) and (B) of this para-
graph 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 li 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 sub-
paragraph:
"(C) for purposes of subparagraph (A) of this paragraph,
consumer debts owed to a single creditor and aggregating
i' 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 con-
sumer credit under an open end credit plan is to be defined
98 STAT. 354 PUBLIC LAW 98-353—JULY 10, 1984
for purposes of this subparagraph as it is defined in the
Consumer Credit Protection Act (15 U.S.C. 1601 et seq.);".
Ot)) 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 para-
graphs:
"(2) such agreement contains a clear and conspicuous state-
ment 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 nego-
tiating an agreement under this subsection, which states that
such agreement—
"(A) represents a fully informed and voluntary agree-
ment 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 repre-
sented by an attorney during the course of negotiating an
agreement under this subsection, the court approves such agree-
ment 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.
Real property. "(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 "subsec-
tion (c)(6)".
(d) 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",
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 355
(2) by inserting "the" before "Perishable", and
(3) by adding at the end thereof the following new subsection: Employment
"(b) No private employer may terminate the employment of, or and
unemployment.
discriminate with respect to employment against, an individual who Discrimination,
is or has been a debtor under this title, a debtor or bankrupt under prohibition.
the Bankruptcy Act, or an individual associated with such debtor or 11 u s e note
bankrupt, solely because such debtor or bankrupt— prec. 101.
"(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:
y-j<: "(7) jf^ jjj 3 f.g^Q fiigj^ jjy gjj ffldivldual 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 para-
graph:
"(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 C!ode, 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 15130lOt))(l) of title 11, United States Code, is amended 11 u s e 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)
98 STAT. 356 PUBLIC LAW 98-353—JULY 10, 1984
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 pay-
ments 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 para-
graphs (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;".
Claims. 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 pro-
vided 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 subsec-
tion:
"(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 dispos-
able 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 depend-
ent 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.".
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 357
SEC. 318. (a) Section 1326 of title 11, United States Code, is
amended—
(1) by redesignating subsections (a) and (b) as subsections (b)
and (c), respectively, and
(2) by inserting before such subsections the following new
subsection:
"(a)(1) Unless the court orders otherwise, the debtor shall com-
mence 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 "13260)),".
SEC. 319. Section 1329(a) of title 11, United States Code, is
amended by striking out "At" and all that follows through "modi-
fled 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 imple- Supreme Court
menting the practice and procedure to be followed under section ooVflr
28 u s e 2075
707(b) of title 11, United States Code. Section 2075 of title 28, United note.'
States Code, shall apply with respect to the general rules prescribed Ante, p. 355.
under this section.
SEC. 321. Rule 2002 of the Bankruptcy Rules is amended by adding il USC app.
at the end thereof the following new subdivision:
"(n) In a voluntary case commenced under the Code by an individ-
ual 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— il 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, n USC 701 et
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 attor-
ney.] 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 con-
sumer debts, this Exhibit 'B' shall be completed and attached to the
petition pursuant to paragraph (7) thereof.]
98 STAT. 358 PUBLIC LAW 98-353—JULY 10, 1984
ai , " [ C A P T I O N AS IN FORM N O . 1 ]
"FOR COURT USE ONLY
"Date Petition Filed
"Case Number
"Bankruptcy Judge
"I, , the attorney for the petitioner
named in the foregoing petition, declare that I have informed the
petitioner that [he or she] may proceed under chapter 7 or 13 of title
11, United States Code, and have explained the relief available
under each such chapter.
"Executed on
"Signature
Attorney for Petitioner".
28 use note SEC. 323. Section 408(c) of the Act of November 6,1978 (Public Law
prec. 581 95-598; 92 Stat. 2687(c)), as amended by the Act of November 28,1983
92 btat. 2b8b. (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 Heu thereof "(7)
Seventh"; and
Fish and fishing. (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 5570t>)(l) 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 fisher-
^ man through a sale 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:
"(d) 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
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 359
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 ii use 557.
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, com, 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 prodOicers 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 determina-
tion 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.
98 STAT. 360 PUBLIC LAW 98-353—JULY 10, 1984
"(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
:•: 'Xll • • 4^#r*J "(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 reten-
tion 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 posses-
sion, 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 complex-
ity 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,
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 361
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 dispos-
ing 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 u s e app.
at the end thereof the following new subdivision.
"(g) To the extent not inconsistent with the United States Ware-
house Act or applicable State law, a warehouse receipt, scale ticket, 7 u s e 241.
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 Ante, p. 359.
constitute prima facie evidence of the validity and amount of a
claim of ownership of a quantity of grain".
Subtitle C—Leasehold Management Amendments Leasehold
Management
SEC. 361. This subtitle may be cited as the "Leasehold Manage- Bankruptcy
Amendments
ment Bankruptcy Amendments Act of 1983". Act of 1983.
SEC. 362. (a) Section 365 of title 11, United States Code, is amended 11 u s e 365 note.
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.
98 STAT. 362 PUBLIC LAW 98-353—JULY 10, 1984
"(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 (f), 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) provi-
sions 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 assign-
ment; 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 termi-
nated under applicable nonbankruptcy law prior to the order
for relief.
11 use 701 et "(d)(1) In a case under chapter 7 of this title, if the trustee does not
*^9- assume or reject an executory contract or unexpired lease of residen-
tial real property or of personal property of the debtor within 60
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 363
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 ll USC 901 et
may assume or reject an executory contract or unexpired lease of seq., llQl et seq.,
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 nonresiden-
tial real property, until such lease is assumed or rejected, notwith-
standing 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. Accept-
ance of any such performance does not constitute waiver or relin-
quishment 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 prop-
erty to the lessor.". ; ;<
(b) Section 365 is further amended by adding at the end thereof ic i '»iq
the following new subsection:
"(1) 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(bX2) and Real property.
362(b)(9), leases of real property shall include any rental agreement infra-
to use real property.".
SEC. 363. (a) Section 541(b) of title 11, United States Code, is
amended to read as follows: ^ n; J,J.U H
"(b) Property of the estate does not include— s f >?sq
"(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 expira-
tion 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 362flb) of title 11 of the United States Code is amended
by-
w (1) striking out "or" at the end of paragraph (7),
(2) replacing the period after paragraph (8) with "; or", and
98 STAT. 364 PUBLIC LAW 98-353—JULY 10, 19^4
(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-
CD 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 w£is 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".
Referees Salary Subtitle E—Referees Salary and Expense Fund
and Expense
Fimd Act of gg(, 381 This subtitle may be cited as the "Referees Salary and
11 use note Expense Fund Act of 1984".
prec. 101. SEC. 382. Section 403(e) of the Act of November 6, 1978 (92 Stat.
11 use note 2683; Public Law 95-598), is amended to read as follows:
prec. 101. "(e) Notwithstemding 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 Septem-
ber 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 pay-
ment into the referees' salary and expense fund in cases filed
11 use note under the Bankruptcy Act shall be collected and paid into the
prec. 101. 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 C!ode, 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:
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 365
"(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, includ-
ing 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 securi-
ties with a simultaneous agreement by such transferee to trans-
fer 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 36203) 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 para-
graph:
"(7) under subsection (a) of this section, of the setoff by a repo
participant, of any mutual debt and claim under or in connec-
tion 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:
"(f) Notwithstanding sections 544, 545, 547, 548(a)(2), and 548a>) 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 agree-
ment 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 5530b)(l) of title 11, United States Code, is
amended by inserting ", 36203)(7)," after "3620b)(6)".
98 STAT. 366 PUBLIC LAW 98-353—JULY 10, 1984
SEC. 396. (a) Chapter 5 of title 11, United States Code, is amended
by adding at the end thereof the following new section:
Securities. "§ 559. Contractual right to liquidate a repurchase agreement
11 u s e 559.
"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 proceed-
ing under this title, unless, where the debtor is a stockbroker or
securities clearing agency, such order is authorized under the provi-
sions 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 liqui-
dates 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 liqui-
dation 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. 391, as paragraph (44); and
Real property. (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 agree-
ment, 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
8i for consecutive years, and which extends for a period of more
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 367
than three years. A 'timeshare interest' is that interest pur-
chased in a timeshare plan which grants the purchaser the
right to use and occupy accommodations, facilities, or recre-
ational sites, whether improved or unimproved, pursuant to a
timeshare plan.".
SEC. 402. Section 365(hXl) 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)(l) of title 11, United States Code, is Real property.
amended to read as follows:
"(i)(l) 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 alterna-
tive, may remain in possession of such real property or timeshare "''"^ ::' 'txA,
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(9XB) of title 11 of the United States Code is
amended by inserting "348(d)," after "section".
98 STAT. 368 PUBLIC LAW 98-353—JULY 10, 1984
(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 ioi(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 corpora-
tion, 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 consid-
ered 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 subpara-
graph (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".
Ante, p. 364. (i) Section 101(44) of title 11 of the United States Code, as so
Infra. 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 previ-
ously redesignated, as paragraphs (45) through (48);
(2) by redesignating paragraphs (21) through (40) as para-
graphs (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, sav-
ings 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 sec-
Post, p. 382. tion 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 matur-
ity 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 for-
ward contracts as or with merchants in commodities;";
(6) by inserting after paragraph (43) the following:
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 369
"(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 ii USC 901 et .
(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 (aXD, (bXD, and (cXD 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".
Ot>) Subsections (a), (b), and (c) of section 108 of title 11 of the
United States Code are each amended by inserting "nonbank-
ruptcy" 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(cX5XD) 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(jX2) 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(bXl) 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 allow-
ance under section 328(c) of this title or, with knowledge of such
31-194 0 - 86 - 14 : QL 3 Part 1
98 STAT. 370 PUBLIC LAW 98-353—JULY 10, 1984
facts, employed a professional person under section 327 of this
title.".
Employment (c) Section 327(c) of title 11 of the United States Code is amended
an<i , to read as follows:
'^T^ic^'^M "^^^ ^" ^ ^^^ ^^^^^ chapter 7 or 11 of this title, a person is not
seq 1101 et sea 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 use 1301 et of this title the compensation paid to the trustee serving in the case
*^9- 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 3500)) 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".
I r.mH. € Jp : til - y 8 . - - 0 ^16.1-
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 371
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), bv 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 con-
I tracts", 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
I 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 o f after
"pending"; and
• (2) by striking out the last sentence and inserting in lieu
thereof the following: "The court shall order such stay contin-
'- ued 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 hearing under this
* subsection is a preliminary hearing, then such final hearing
shall be commenced not later than thirty days after the conclu-
sion 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,".
Ssc. 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
98 STAT. 372 PUBLIC LAW 98-353—JULY 10, 1984
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 7A 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 noti-
fication 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(j) of title 11 of the United States Code is amended
by striking out "compenation" and inserting in lieu thereof "com-
pensation".
(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 "avoid-
ing"; 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—
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 373
"(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 para-
graphs (4), (5), (6), (7), (8), and (9) as paragraphs (3), (4), (5), (6), (7),
8 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 insert-
1 ing in lieu thereof "or";
(C) striking out "the" the first place it appears in sub-
paragraph (B) and inserting in lieu thereof "any"; and
(D) inserting a comma after "such contract" in subpara-
graph (B).
is (c) Section 502(c) of title 11 of the United States Code is amended—
(1) in paragraph (1) by—
fc (A) inserting "the" before "fixing"; and
(B) striking out "closing" and inserting in lieu thereof
"^ "administration"; and • s^*' fi ^ r -
(2) in paragraph (2), by—
»» (A) inserting "right to payment arising from a" after
f* "any"; and
(B) striking out "if such breach gives rise to a right to
* payment",
(d) Section 502(eXl) of title 11, United States Code, is amended—
(1) by striking out "and Ob)" and inserting in lieu thereof ", Ot>),
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—
98 STAT. 374 PUBLIC LAW 98-353—JULY 10, 1984
(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".
Claims. (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 reconsid-
ered 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:
Ante, p. 373. "(1) such claim was disallowed only under section 5O20t>X5) 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 (4KBXi), by inserting "each" after "covered
by"; and
(4) in paragraph (7) as redesignated by section 350 by insert-
ing "only" after "units,".
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 375
(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 contri-
bution 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
98 STAT. 376 PUBLIC LAW 98-353—JULY 10, 1984
(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 subdivi-
sion 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".
PUBLIC LAW 98-353—JULY 10, 1984 . 98 STAT. 377
(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 insert-
ing in lieu thereof "appointed or authorized to take"; and
(3) in paragraph (2), by striking out "on the date of the filing
of 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 insert-
ing 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 redesig-
nated by section 351, is amended by inserting "financial institution"
3.fxGr stockbroker
SEC. 462. (a) Section 547(a) of title 11 of the United States Code is
amended—
98 STAT. 378 PUBLIC LAW 98-353—JULY 10, 1984
(1) in paragraph (2), by inserting "including proceeds of such
property," after "law,"; and
(2) in paragraph (4), by—
(A) striking o u t " , 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 filing 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
sulDsection (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 (2XA), by inserting "by the debtor" after
"incurred";
(2) in paragraph (3), by striking out " o f 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 o f the first place it appears and insert-
ing in lieu thereof "that creates ; and
(B) striking out "all security interest" and inserting in
lieu thereof "all security interests"; and
(5) in paragraph (SXAXii), 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 o f :
(3) inserting "to or for the benefit of a surety after "trans-
ferred"; and
(4) inserting "such" after "reimbursement o f .
(f) Section 547(e) of title 11 of the United States Code is amended
in paragraph (2)(CXi), 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";
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 379
(2) in paragraph (1), by striking out "occurred" and inserting
in lieu thereof "was made"; and
(3) in paragraph (2)(BXii), by inserting "or a transaction" after
"engaged in business".
(b) Section 548(c) of title 11 of the United States Code is amended
by-
CD inserting "or may retain" after "lien on"; and
(2) striking out ", may retain any lien transferred,".
(cXD Section 548(dXl) 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(dX2XB) of title 11 is amended by inserting "finan-
cial 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 o f
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 knowl-
edge of the commencement of the case and for present fair equiva-
lent value unless a copy or notice of the petition was filed, where a B- :? t i;
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(dXl) 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 (IXA), by inserting "or accruing to" after
"by";
(2) in paragraph (IXB), 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:
98 STAT. 380 PUBLIC LAW 98-353—JULY 10, 1984
"(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 5530b)(l) 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 Ot>) 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 Ob) 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:
11 use 558. "§ 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 stat-
utes 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
"Successor'.
SEC. 472. (a) Section 7020)) 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.
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 381
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 insert-
ing 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 Code 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
98 STAT. 382 PUBLIC LAW 98-353—JULY 10, 1984
(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), bv 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 (6XC), by striking out "property" and insert-
ing 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(cXl) of title 11 of the United States Code is
amended by inserting "the granting of a" after "to".
(c) Section 727(eX2XA) 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(dX2) 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 (2XA), 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 (2XB), 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 (4XA)(i), by striking out "and that is" and
inserting in lieu thereof "from and that is the lawful";
(4) in paragraph (6XAXi), 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
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 383
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 pay-
ment," 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 "cus-
tomers' 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 subpara-
graph (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 n use prec.
amended by striking out "SUBCHAPER 11" and inserting in lieu 921.
thereof "SUBCHAPTER 11".
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.
98 STAT. 384 PUBLIC LAW 98-353—JULY 10, 1984
(c) Section 921(a) is amended by striking out "109(c)" and inserting
in lieu thereof "109(d)".
Ante, p. 383. (d) Scction 921(d) of title 11 of the United States Code, as so
redesignated, is amended by striking out "subsection (d)" and insert-
ing in iieti thereof "subsection (c)".
SEC. 495. Section 922(aXl) 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 "confir-
mation".
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
(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 11060?) 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—
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 385
(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 (8), 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 subsec-
tion (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 "Notwith-
standing 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 (5XG), 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 (2)(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(bX2) 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 "of 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
98 STAT. 386 PUBLIC LAW 98-353—JULY 10, 1984
(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 "solic-
its"; 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 conclu-
sively 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 i s '
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 "circum-
stances 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 prop-
erty 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)vii), 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—
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 387
!> ii; (A) inserting "of each impaired class of claims or inter-
ests" in lieu of "each class"; and
(B) striking out "creditor's" in subparagraph (B) and
r inserting in lieu thereof "holder's";
(8) in paragraph (8), by inserting "of claims or interests" after
9 "each class"; and
(9) by amending paragraph (10) to read as follows:
f "(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
I 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), b y -
1^^, (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 o f after "avoidance o f the
C 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". * q ^irtf
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—
98 STAT. 388 PUBLIC LAW 98-353—JULY 10, 1984
(1) in paragraph (3XB)(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)(i), by striking out "combination" and
inserting in lieu thereof "or combining"; and
(4) in paragraph (2)(A)(ii), by striking out "among" and insert-
ing 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".
Ob) Section 1170(c) of title 11 of the United States Code is amended
by inserting a comma after "abandonment".
(c) Section 1170(dX2) of title 11 of the United States Code is
gunended 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 11710)) 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(cX3) of title 11 of the United States Code is
amended by inserting "continuation o f 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
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 389
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), bv—
V. (A) striking out ' o f and inserting in lieu thereof
"received by"; and
(B) striking out "upon all payments" and inserting in lieu
thereof "of all such payments made". unmij ii
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(aXl) 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";
98 STAT. 390 PUBLIC LAW 98-353—JULY 10, 1984
(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:
11 u s e 1113. "§ 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 use 1161. in a case covered by subchapter IV of this chapter and by title I of
45 use 151. 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 com-
plete 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 modifica-
tions 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
hearing. 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.
PUBLIC LAW 98-353—JULY 10, 1984 98 STAT. 391
"(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' representa-
tive 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 pend-
ing 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 evalu-
ate 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
upon the date of enactment of this Act; provided that this section date.
shall not apply to cases filed under title 11 of the United States Code 11 u s e 1113
note.
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
this title, or the application thereof to any person or circumstance is invalid.
held invalid, the provisions of every other part, and their application 11 u s e 101 note.
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 Ante, p. 343.
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 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
98 STAT. 392 PUBLIC LAW 98-353—JULY 10, 1984
title 5, United States Code, by multiplying 2y2 per centum of his
average annual pay by the years of that service.
Effective SEC. 553. (a) Except as otherwise provided in this section the
?f miri ini amendments made by this title shall become effective to cases filed
11 ubL lui note, g^ ^^^^ ^^^^^ ^^^ ^^^^ ^^ enactment of this Act.
(b) The amendments made by section 4260t)) shall become effective
upon the date of enactment of this Act.
Ante, p. 390. (c) The amendments made by subtitle J, shall become effective as
provided in section 541(c).
Approved July 10, 1984.
3J" -P,
LEGISLATIVE HISTORY—H.R. 5174:
HOUSE REPORT No. 98-882 (Comm. of Conference).
CONGRESSIONAL RECORD, Vol. 130 (1984):
Mar. 21, considered and passed House.
May 21-24, June 4, 5, 19, considered and passed Senate, amended.
June 29, House and Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 20, No. 28 (1984):
July 10, Presidential statement.
