The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“AMENDMENTS SUBMITTED--SEPTEMBER 17, 1998” mentioning the Federal Reserve System was published in the Senate section on pages S10596-S10603 on Sept. 18, 1998.
The publication is reproduced in full below:
AMENDMENTS SUBMITTED--SEPTEMBER 17, 1998
______
CONSUMER BANKRUPTCY REFORM ACT OF 1998
______
GRASSLEY (AND DURBIN) AMENDMENT NO. 3595
Mr. GRASSLEY (for himself and Mr. Durbin) proposed an amendment to amendment No. 3559 proposed by Mr. Grassley to the bill (S. 1301) to amend title 11, United States Code, to provide for consumer bankruptcy protection, and for other purposes; as follows:
(1) In section 102(a)(5) strike ``a party in interest'' and insert ``only the judge, United States trustee, bankruptcy administrator or panel trustee'';
(2) In section 102(a)95) strike ``not''.
Strike 317 and replace with:
``Not later than 180 days after the date of enactment of this Act, the Federal Trade Commission shall promulgate regulations defining ``household goods'' under Section 522(c)(3) in a manner suitable and appropriate for cases under Title 11 of the United States Code. If new regulations are not effective within 180 days of enactment of this Act, then ``household goods'' under Section 522(c)(3) shall have the meaning given that term in section 444.1(i) of Title 16, of the Code of Federal Regulations, except that the term shall also include any tangible personal property reasonably necessary for the maintenance or support of a dependent child.''
At the end of Title III, insert:
11 U.S.C. 507(a) to add a new section 507(a)(10) to read:
``Tenth, allowed claims for death or personal injury resulting from the operation of a motor vehicle or vessel if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug or another substance.''
Strike existing 315 and add the following:
SEC. 315. NONDISCHARGEABLE DEBTS.
Section 523(a) of title 11, United States Code, is amended by inserting after paragraph (14) the following:
``(14A) incurred to pay a debt that is nondischargeable by reason of section 727, 1141, 1228 (a) or (b), or 1328(b), or any other provision of this subsection, where the debtor incurred the debt to pay such a nondischargeable debt with the intent to discharge in bankruptcy the newly-created debt.''
At the appropriate place in Title II, insert the following:
SEC. ____. ENHANCED DISCLOSURE FOR CREDIT EXTENSIONS SECURED
BY DWELLING.
(a) Open-End Credit Extensions.--
(1) Credit applications.--Section 127A(a)(13) of the Truth in Lending Act (15 U.S.C. 1637a(a)(13)) is amended--
(A) by striking ``consultation of tax advisor.--A statement that the'' and inserting the following: ``tax deductibility.--A statement that--
``(A) the''; and
(B) by striking the period at the end and inserting the following: ``; and
``(B) in any case in which the extension of credit exceeds the fair market value of the dwelling, the interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes.''.
(2) Credit advertisements.--Section 147(b) of the Truth in Lending Act (15 U.S.C. 1665b(b)) is amended--
(A) by striking ``If any'' and inserting the following:
``(1) In general.--If any''; and
(B) by adding at the end the following:
``(2) Credit in excess of fair market value.--Each advertisement described in subsection (a) that relates to an extension of credit that may exceed the fair market value of the dwelling shall include a clear and conspicuous statement that--
``(A) the interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes; and
``(B) the consumer may want to consult a tax advisor for further information regarding the deductibility of interest and charges.''.
(b) Non-Open End Credit Extensions.--
(1) Credit applications.--Section 128 of the Truth in Lending Act (15 U.S.C. 1638) is amended--
(A) in subsection (a), by adding at the end the following:
``(15) In the case of a consumer credit transaction that is secured by the principal dwelling of the consumer, in which the extension of credit may exceed the fair market value of the dwelling, a clear and conspicuous statement that--
``(A) the interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes; and
``(B) the consumer should consult a tax advisor for further information regarding the deductibility of interest and charges.''; and
(B) in subsection (b), by adding at the end the following:
``(3) In the case of a credit transaction described in paragraph (15) of subsection (a), disclosures required by that paragraph shall be made to the consumer at the time of application for such extension of credit.''.
(2) Credit advertisements.--Section 144 of the Truth in Lending Act (15 U.S.C. 1664) is amended by adding at the end the following:
``(e) Each advertisement to which this section applies that relates to a consumer credit transaction that is secured by the principal dwelling of a consumer in which the extension of credit may exceed the fair market value of the dwelling shall clearly and conspicuously state that--
``(1) the interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes; and
``(2) the consumer may want to consult a tax advisor for further information regarding the deductibility of interest and charges.''.
This section shall become effective one year after the date of enactment.
At the appropriate place in Title II, insert the following:
SEC. ____. DUAL-USE DEBIT CARD.
(a) Consumer Liability.--
(1) In general.--Section 909 of the Electronic Fund Transfer Act (15 U.S.C. 1693g) is amended--
(A) by redesignating subsections (b) through (e) as subsections (d) through (g), respectively;
(B) in subsection (a)--
(i) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately;
(ii) by inserting ``Cards Necessitating Unique Identifier.--
``(1) In general.--'' after ``(a)'';
(iii) by striking ``other means of access can be identified as the person authorized to use it, such as by signature, photograph,'' and inserting ``other means of access can be identified as the person authorized to use it by a unique identifier, such as a photograph, retina scan,''; and
(iv) by striking ``Notwithstanding the foregoing,'' and inserting the following:
``(2) Notification.--Notwithstanding paragraph (1),''; and
(C) by inserting before subsection (d), as so designated by this section, the following new subsections:
``(b) Cards Not Necessitating Unique Identifier.--A consumer shall be liable for an unauthorized electronic fund transfer only if--
``(1) the liability is not in excess of $50;
``(2) the unauthorized electronic fund transfer is initiated by the use of a card that has been properly issued to a consumer other than the person making the unauthorized transfer as a means of access to the account of that consumer for the purpose of initiating an electronic fund transfer;
``(3) the unauthorized electronic fund transfer occurs before the card issuer has been notified that an unauthorized use of the card has occurred or may occur as the result of loss, theft, or otherwise; and
``(4) such unauthorized electronic fund transfer did not require the use of a code or other unique identifier (other than a signature), such as a photograph, fingerprint, or retina scan.
``(c) Notice of Liability and Responsibility To Report Loss of Card, Code, or Other Means of Access.--No consumer shall be liable under this title for any unauthorized electronic fund transfer unless the consumer has received in a timely manner the notice required under section 905(a)(1), and any subsequent notice required under section 905(b) with regard to any change in the information which is the subject of the notice required under section 905(a)(1).''.
(2) Conforming amendment.--Section 905(a)(1) of the Electronic Fund Transfer Act (15 U.S.C. 1693c(a)(1)) is amended to read as follows:
``(1) the liability of the consumer for any unauthorized electronic fund transfer and the requirement for promptly reporting any loss, theft, or unauthorized use of a card, code, or other means of access in order to limit the liability of the consumer for any such unauthorized transfer;''.
(b) Validation Requirement for Dual-Use Debit Cards.--
(1) In general.--Section 911 of the Electronic Fund Transfer Act (15 U.S.C. 1693i) is amended--
(A) by redesignating subsection (c) as subsection (d); and
(B) by inserting after subsection (b) the following new subsection:
``(c) Validation Requirement.--No person may issue a card described in subsection (a), the use of which to initiate an electronic fund transfer does not require the use of a code or other unique identifier other than a signature (such as a fingerprint or retina scan), unless--
``(1) the requirements of paragraphs (1) through (4) of subsection (b) are met; and
``(2) the issuer has provided to the consumer a clear and conspicuous disclosure that use of the card may not require the use of such code or other unique identifier.''.
(2) Technical and conforming amendment.--Section 911(d) of the Electronic Fund Transfer Act (15 U.S.C. 1993i(d)) (as redesignated by subsection (a)(1) of this section) is amended by striking ``For the purpose of subsection (b)'' and inserting ``For purposes of subsections (b) and (c)''.
On page 6, line 23 insert ``or United States Trustee'' after ``trustee''.
At the end of Title III:
``If requested by the United States trustee or a trustee serving in the case, the debtor provide a document that establishes the identity of the debtor, including a driver's license, passport, or other document that contains a photograph of the debtor and such other personal identifying information relating to the debtor that establishes the identity of the debtor.''.
At the appropriate place in title VII, insert the following:
SEC. 7____. ROLLING STOCK EQUIPMENT.
(a) In General.--Section 1168 of title 11, United States Code, is amended to read as follows:
``Sec. 1168. Rolling stock equipment.
``(a)(1) The right of a secured party with a security interest in or of a lessor or conditional vendor of equipment described in paragraph (2) to take possession of such equipment in compliance with an equipment security agreement, lease, or conditional sale contract, and to enforce any of its other rights or remedies under such security agreement, lease, or conditional sale contract, to sell, lease, or otherwise retain or dispose of such equipment, is not limited or otherwise affected by any other provision of this title or by any power of the court, except that that right to take possession and enforce those other rights and remedies shall be subject to section 362, if--
``(A) before the date that is 60 days after the date of commencement of a case under this chapter, the trustee, subject to the court's approval, agrees to perform all obligations of the debtor under such security agreement, lease, or conditional sale contract; and
``(B) any default, other than a default of a kind described in section 365(b)(2), under such security agreement, lease, or conditional sale contract--
``(i) that occurs before the date of commencement of the case and is an event of default therewith is cured before the expiration of such 60-day period;
``(ii) that occurs or becomes an event of default after the date of commencement of the case and before the expiration of such 60-day period is cured before the later of--
``(I) the date that is 30 days after the date of the default or event of the default; or
``(II) the expiration of such 60-day period; and
``(iii) that occurs on or after the expiration of such 60-day period is cured in accordance with the terms of such security agreement, lease, or conditional sale contract, if cure is permitted under that agreement, lease, or conditional sale contract.
``(2) The equipment described in this paragraph--
``(A) is rolling stock equipment or accessories used on rolling stock equipment, including superstructures or racks, that is subject to a security interest granted by, leased to, or conditionally sold to a debtor; and
``(B) includes all records and documents relating to such equipment that are required, under the terms of the security agreement, lease, or conditional sale contract, that is to be surrendered or returned by the debtor in connection with the surrender or return of such equipment.
``(3) Paragraph (1) applies to a secured party, lessor, or conditional vendor acting in its own behalf or acting as trustee or otherwise in behalf of another party.
``(b) The trustee and the secured party, lessor, or conditional vendor whose right to take possession is protected under subsection (a) may agree, subject to the court's approval, to extend the 60-day period specified in subsection (a)(1).
``(c)(1) In any case under this chapter, the trustee shall immediately surrender and return to a secured party, lessor, or conditional vendor, described in subsection (a)(1), equipment described in subsection (a)(2), if at any time after the date of commencement of the case under this chapter such secured party, lessor, or conditional vendor is entitled pursuant to subsection (a)(1) to take possession of such equipment and makes a written demand for such possession of the trustee.
``(2) At such time as the trustee is required under paragraph (1) to surrender and return equipment described in subsection (a)(2), any lease of such equipment, and any security agreement or conditional sale contract relating to such equipment, if such security agreement or conditional sale contract is an executory contract, shall be deemed rejected.
``(d) With respect to equipment first placed in service on or prior to October 22, 1994, for purposes of this section--
``(1) the term `lease' includes any written agreement with respect to which the lessor and the debtor, as lessee, have expressed in the agreement or in a substantially contemporaneous writing that the agreement is to be treated as a lease for Federal income tax purposes; and
``(2) the term `security interest' means a purchase-money equipment security interest.
``(e) With respect to equipment first placed in service after October 22, 1994, for purposes of this section, the term `rolling stock equipment' includes rolling stock equipment that is substantially rebuilt and accessories used on such equipment.''.
(b) Aircraft Equipment and Vessels.--Section 1110 of title 11, United States Code, is amended to read as follows:
``Sec. 1110. Aircraft equipment and vessels
``(a)(1) Except as provided in paragraph (2) and subject to subsection (b), the right of a secured party with a security interest in equipment described in paragraph (3), or of a lessor or conditional vendor of such equipment, to take possession of such equipment in compliance with a security agreement, lease, or conditional sale contract, and to enforce any of its other rights or remedies, under such security agreement, lease, or conditional sale contract, to sell, lease, or otherwise retain or dispose of such equipment, is not limited or otherwise affected by any other provision of this title or by any power of the court.
``(2) The right to take possession and to enforce the other rights and remedies described in paragraph (1) shall be subject to section 362 if--
``(A) before the date that is 60 days after the date of the order for relief under this chapter, the trustee, subject to the approval of the court, agrees to perform all obligations of the debtor under such security agreement, lease, or conditional sale contract; and
``(B) any default, other than a default of a kind specified in section 365(b)(2), under such security agreement, lease, or conditional sale contract--
``(i) that occurs before the date of the order is cured before the expiration of such 60-day period;
``(ii) that occurs after the date of the order and before the expiration of such 60-day period is cured before the later of--
``(I) the date that is 30 days after the date of the default; or
``(II) the expiration of such 60-day period; and
``(iii) that occurs on or after the expiration of such 60-day period is cured in compliance with the terms of such security agreement, lease, or conditional sale contract, if a cure is permitted under that agreement, lease, or contract.
``(3) The equipment described in this paragraph--
``(A) is--
``(i) an aircraft, aircraft engine, propeller, appliance, or spare part (as defined in section 40102 of title 49) that is subject to a security interest granted by, leased to, or conditionally sold to a debtor that, at the time such transaction is entered into, holds an air carrier operating certificate issued pursuant to chapter 447 of title 49 for aircraft capable of carrying 10 or more individuals or 6,000 pounds or more of cargo; or
``(ii) a documented vessel (as defined in section 30101(1) of title 46) that is subject to a security interest granted by, leased to, or conditionally sold to a debtor that is a water carrier that, at the time such transaction is entered into, holds a certificate of public convenience and necessity or permit issued by the Department of Transportation; and
``(B) includes all records and documents relating to such equipment that are required, under the terms of the security agreement, lease, or conditional sale contract, to be surrendered or returned by the debtor in connection with the surrender or return of such equipment.
``(4) Paragraph (1) applies to a secured party, lessor, or conditional vendor acting in its own behalf or acting as trustee or otherwise in behalf of another party.
``(b) The trustee and the secured party, lessor, or conditional vendor whose right to take possession is protected under subsection (a) may agree, subject to the approval of the court, to extend the 60-day period specified in subsection (a)(1).
``(c)(1) In any case under this chapter, the trustee shall immediately surrender and return to a secured party, lessor, or conditional vendor, described in subsection (a)(1), equipment described in subsection (a)(3), if at any time after the date of the order for relief under this chapter such secured party, lessor, or conditional vendor is entitled pursuant to subsection (a)(1) to take possession of such equipment and makes a written demand for such possession to the trustee.
``(2) At such time as the trustee is required under paragraph (1) to surrender and return equipment described in subsection (a)(3), any lease of such equipment, and any security agreement or conditional sale contract relating to such equipment, if such security agreement or conditional sale contract is an executory contract, shall be deemed rejected.
``(d) With respect to equipment first placed in service on or before October 22, 1994, for purposes of this section--
``(1) the term `lease' includes any written agreement with respect to which the lessor and the debtor, as lessee, have expressed in the agreement or in a substantially contemporaneous writing that the agreement is to be treated as a lease for Federal income tax purposes; and
``(2) the term `security interest' means a purchase-money equipment security interest.''.
At the appropriate place in title VII, insert the following:
SEC. 7____. CURBING ABUSIVE FILINGS.
(a) In General.--Section 362(d) of title 11, United States Code, is amended--
(1) in paragraph (2), by striking ``or'' at the end;
(2) in paragraph (3), by striking the period at the end and inserting ``; or''; and
(3) by adding at the end the following:
``(4) with respect to a stay of an act against real property under subsection (a), by a creditor whose claim is secured by an interest in such real estate, if the court finds that the filing of the bankruptcy petition was part of a scheme to delay, hinder, and defraud creditors that involved either--
``(A) transfer of all or part ownership of, or other interest in, the real property without the consent of the secured creditor or court approval; or
``(B) multiple bankruptcy filings affecting the real property.
If recorded in compliance with applicable State laws governing notices of interests or liens in real property, an order entered pursuant to this subsection shall be binding in any other case under this title purporting to affect the real property filed not later than 2 years after that recording, except that a debtor in a subsequent case may move for relief from such order based upon changed circumstances or for good cause shown, after notice and a hearing.''.
(b) Automatic Stay.--Section 362(b) of title 11, United States Code, as amended by section 709, is amended--
(1) in paragraph (24), by striking ``or'' at the end;
(2) in paragraph (25) by striking the period at the end and inserting ``; or''; and
(3) by adding at the end the following:
``(26) under subsection (a) of this section, of any act to enforce any lien against or security interest in real property following the entry of an order under section 362(d)(4) as to that property in any prior bankruptcy case for a period of 2 years after entry of such an order. The debtor in a subsequent case, however, may move the court for relief from such order based upon changed circumstances or for other good cause shown, after notice and a hearing; or
``(27) under subsection (a) of this section, of any act to enforce any lien against or security interest in real property--
``(A) if the debtor is ineligible under section 109(g) to be a debtor in a bankruptcy case; or
``(B) if the bankruptcy case was filed in violation of a bankruptcy court order in a prior bankruptcy case prohibiting the debtor from being a debtor in another bankruptcy case.''.
At the appropriate place in title VII, insert the following:
SEC. 7____. STUDY OF OPERATION OF TITLE 11 OF THE UNITED
STATES CODE WITH RESPECT TO SMALL BUSINESSES.
Not later than 2 years after the date of the enactment of this Act, the Administrator of the Small Business Administration, in consultation with the Attorney General, the Director of the Administrative Office of United States Trustees, and the Director of the Administrative Office of the United States Courts, shall--
(1) conduct a study to determine--
(A) the internal and external factors that cause small businesses, especially sole proprietorships, to become debtors in cases under title 11 of the United States Code and that cause certain small businesses to successfully complete cases under chapter 11 of such title; and
(B) how Federal laws relating to bankruptcy may be made more effective and efficient in assisting small businesses to remain viable; and
(2) submit to the President pro tempore of the Senate and the Speaker of the House of Representatives a report summarizing that study.
After section 104(b)(3) add a new section 104(b)(4) reading:
``The dollar amount in section 101(18) shall be adjusted at the same times and in the same manner as the dollar amounts in paragraph (1) of this subsection, beginning with the adjustment to be made on April 1, 2001.''
In section 101(19)(A) strike: ``more than 50 percent of such individual's or such individual and spouse's gross income for the taxable year preceding the taxable year in which the case concerning such individual or such individual and spouse was filed'' and replace it with:
``Such individual has had or such individual and spouse have had more than 50 percent of her/his/their income from such farming operation in at least one of the three calendar years preceding the year in which the case concerning such individual or such individual or spouse was filed.''
After section 1225(b)(2) add a new section 1225(b)(3) reading:
If the plan provides for specific amounts of property to be distributed on account of allowed unsecured claims as required by paragraph (1)(b) of this subsection, those amounts equal or exceed the debtor's projected disposable income for that period, and the plan meets the requirements for confirmation other than those of this subsection, the plan shall be confirmed.
After section 1229(c) add a new section 1229(d) reading:
(1) A modification of the plan under this section may not increase the amount of payments that were due prior to the date of the order modifying the plan;
(2) A modification of the plan under this section to increase payments based on an increase in the debtor's disposable income may not require payments to unsecured creditors in any particular month greater than the debtor's disposable income for that month unless the debtor proposes such a modification;
(3) A modification of the plan in the last year of the plan shall not require payments that would leave the debtor with insufficient funds to carry on the farming operation after the plan is completed unless the debtor proposes such a modification.
At the end of the III, insert:
SEC. 2____. PROTECTION OF RETIREMENT SAVINGS IN BANKRUPTCY.
(a) In General.--Section 522 of title 11, United States Code, is amended--
(1) in subsection (b)--
(A) in paragraph (2)--
(i) by striking ``(2)(A) any property'' and inserting:
``(3) Property listed in this paragraph is--
``(A) any property'';
(ii) in subparagraph (A), by striking ``and'' at the end;
(iii) in subparagraph (B), by striking the period at the end and inserting ``; and''; and
(iv) by adding at the end the following:
``(C) retirement funds to the extent that those funds are in a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986.'';
(B) by striking paragraph (1) and inserting:
``(2) Property listed in this paragraph is property that is specified under subsection (d) of this section, unless the State law that is applicable to the debtor under paragraph
(3)(A) of this subsection specifically does not so authorize.'';
(C) in the matter preceding paragraph (2)--
(i) by striking ``(b)'' and inserting ``(b)(1)'';
(ii) by striking ``paragraph (2)'' both places it appears and inserting ``paragraph (3)'';
(iii) by striking ``paragraph (1)'' each place it appears and inserting ``paragraph (2)''; and
(iv) by striking ``Such property is--''; and
(D) by adding at the end of the subsection the following:
``(4) For purposes of paragraph (3)(C), the following shall apply:
``(A) If the retirement funds are in a retirement fund that has received or is eligible to receive a favorable determination pursuant to section 7805 of the Internal Revenue Code of 1986, and that determination is in effect as of the date of the commencement of the case under section 301, 302, or 303, those funds shall be presumed to be exempt from the estate.
``(B) If the retirement funds are in a retirement fund that is not eligible to receive a favorable determination pursuant to such section 7805, those funds shall be presumed to be exempt from the estate if--
``(i) no prior determination to the contrary has been made by a court or the Internal Revenue Service; and
``(ii)(I) the retirement fund is in substantial compliance with the applicable requirements of the Internal Revenue Code of 1986; or
``(II) the retirement fund fails to be in substantial compliance with such applicable requirements, the debtor is not materially responsible for that failure.
``(C) A direct transfer of retirement funds from 1 fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986, pursuant to section 401(a)(31) of the Internal Revenue Code of 1986, or otherwise, shall not cease to qualify for exemption under paragraph (3)(C) by reason of that direct transfer.
``(D)(i) Any distribution that qualifies as an eligible rollover distribution within the meaning of section 402(c) of the Internal Revenue Code of 1986 or that is described in clause (ii) shall not cease to qualify for exemption under paragraph (3)(C) by reason of that distribution.
``(ii) A distribution described in this clause is an amount that--
``(I) has been distributed from a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986; and
``(II) to the extent allowed by law, is deposited in such a fund or account not later than 60 days after the distribution of that amount.''; and
(2) in subsection (d)--
(A) in the matter preceding paragraph (1), by striking
``subsection (b)(1)'' and inserting ``subsection (b)(2)''; and
(B) by adding at the end the following:
``(12) Retirement funds to the extent that those funds are in a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986.''.
(b) Automatic Stay.--Section 362(b) of title 11, United States Code, is amended--
(1) in paragraph (17), by striking ``or'' at the end;
(2) in paragraph (18), by striking the period and inserting
``; or'';
(3) by inserting after paragraph (18) the following:
``(19) under subsection (a), of withholding of income from a debtor's wages and collection of amounts withheld, pursuant to the debtor's agreement authorizing that withholding and collection for the benefit of a pension, profit-sharing, stock bonus, or other plan established under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986 that is sponsored by the employer of the debtor, or an affiliate, successor, or predecessor of such employer--
``(A) to the extent that the amounts withheld and collected are used solely for payments relating to a loan from a plan that satisfies the requirements of section 408(b)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)(1)); or
``(B) in the case of a loan from a thrift savings plan described in subchapter III of title 5, that satisfies the requirements of section 8433(g) of that title.''; and
(4) by adding at the end of the flush material following paragraph (19) the following: ``Paragraph (19) does not apply to any amount owed to a plan referred to in that paragraph that is incurred under a loan made during the 1-year period preceding the filing of a petition. Nothing in paragraph (19) may be construed to provide that any loan made under a governmental plan under section 414(d) of the Internal Revenue Code of 1986 constitutes a claim or a debt under this title.''.
(c) Exceptions To Discharge.--Section 523(a) of title 11, United States Code, as amended by section 202, is amended--
(1) by striking ``or'' at the end of paragraph (17);
(2) by striking the period at the end of paragraph (18) and inserting ``; or''; and
(3) by adding at the end the following:
``(19) owed to a pension, profit-sharing, stock bonus, or other plan established under section 401, 403, 408, 408A, 414, 457, or 501(c) of the Internal Revenue Code of 1986, pursuant to--
``(A) a loan permitted under section 408(b)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)(1)); or
``(B) a loan from the thrift savings plan described in subchapter III of title 5, that satisfies the requirements of section 8433(g) of that title.
Paragraph (19) does not apply to any amount owed to a plan referred to in that paragraph that is incurred under a loan made during the 1-year period preceding the filing of a petition. Nothing in paragraph (19) may be construed to provide that any loan made under a governmental plan under section 414(d) of the Internal Revenue Code of 1986 constitutes a claim or a debt under this title.''.
(d) Plan Contents.--Section 1322 of title 11, United States Code, is amended by adding at the end the following:
``(f) A plan may not materially alter the terms of a loan described in section 362(b)(19).''.
(e) Plan Confirmation.--Section 1325 of title 11, United States Code, is amended--
(1) in subsection (b)(2), in the matter preceding subparagraph (A), by striking ``debtor and'' and inserting
``debtor (not including income that is withheld from the debtor's wages for the purposes described in section 362(b)(19)) and''; and
(2) in subsection (c), by striking ``income to'' and inserting ``income (except income that is withheld after confirmation of a plan from a debtor's wages for the purposes described in section 362(b)(19)) to''.
On page 48, line 15, insert ``as amended by section 207(a)'' after ``Code,''.
On page 48, line 17, strike ``(b)(2)(A)'' and insert
``(b)(3)(A)''.
On page 48, line 22, strike ``subsection (b)(2)(A)'' and insert ``subsection (b)(3)(A)''.
On page 62, line 20, insert ``, as amended by section 207(b),'' after ``362(b) of title 11, United States Code''.
On page 62, line 22, strike ``(17)'' and insert ``(18)''.
On page 62, line 24, strike ``(18)'' and insert ``(19)''.
On page 63, line 1, strike ``by adding at the end the following:'' and insert ``by inserting after paragraph (19) the following:''.
On page 63, line 2, strike ``(19)'' and insert ``(20)''.
On page 63, line 6, strike ``(20)'' and insert ``(21)''.
On page 80, strike lines 4 through 6, and insert the following:ment;'';
(D) in paragraph (20), by striking ``or'' at the end;
(E) in paragraph (21), by striking the period and inserting
``; or'';
On page 80, line 7, strike ``(E)'' and insert ``(F)''.
On page 80, line 9, strike ``(19)'' and insert (22)''.
On page 80, line 21, strike ``(19)'' and insert (22)''.
On page 131, line 3, strike ``section 326'' and insert
``sections 326 and 401''.
On page 50, line 7-8 strike ``chief judge'' and insert
``United States Trustee or Bankruptcy Administrator''.
On page 50, line 10, after ``not'' insert ``reasonably''.
On page 50, line 14, strike ``chief judge'' and insert
``United States Trustee or Bankruptcy Administrator''.
On page 50, line 16, strike ``180 days'' and insert ``one year''.
On page 50, line 17-18, strike ``180 days'' and insert
``one year''.
In Section 312, in amended section 707(c)(3), strike ``20'' and replace with ``50''.
At the appropriate place in title IV, insert the following:
SEC. 4 . FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS.
Section 523(a)(16) of title 11, United States Code, is amended--
(1) by striking ``dwelling'' the first place it appears;
(2) by striking ``ownership or'' and inserting
``ownership,'';
(3) by striking ``housing'' the first place it appears; and
(4) by striking ``but only'' and all that follows through
``such period,'', and inserting ``or a lot in a homeowners association, for as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest in such unit, such corporation, or such lot,''.
At the appropriate place, insert the following new section:
SEC. . ENHANCED DISCLOSURES UNDER AN OPEN END CREDIT PLAN.
(a) Amendments to the Truth in Lending Act.--
(1) Enhanced disclosure of repayment terms.--
(A) In general.--Section 127(b) of the Truth in Lending Act
(15 U.S.C. 1637(b)) is amended by adding at the end the following:
``(11)(A) Repayment information that would apply to the outstanding balance of the consumer under the credit plan in a clear and conspicuous manner, including--
``(i) the required minimum monthly payment on that balance, represented as both a dollar figure and as a percentage of that balance,
``(ii) the number of months (rounded to the nearest month) that it would take to pay the entire amount of that balance, if the consumer pays only the required minimum monthly payments and if no further advances are made;
``(iii) the total cost to the consumer, including interest and principal payments, of paying that balance in full, if the consumer pays only the required minimum monthly payments and if no further advances are made.
(B) Publication of model forms.--Not later than 180 days after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall publish model disclosure forms in accordance with section 195 of the Truth in Lending Act for the purpose of compliance with section 127(b)(II) of the Truth in Lending Act, as added by this paragraph.
(2) Enhanced disclosures in connection with solicitations.--
(A) In general.--Section 127(c)(I)(B) of the Truth in Lending Act (15 U.S.C. 1637(c)(1)(B)) is amended by adding at the end the following:
``(iv) Credit worksheet.--An easily understandable worksheet designed to aid consumers in determining their ability to assume more debt, including consideration of the personal expenses of the consumer and a simple formula for the consumer to determine whether the assumption of additional debt is advisable.
``(v) Basis of preapproval.--In any case in which the application or solicitation states that the consumer has been preapproved for an account under an open end consumer credit plan, the following statement clearly and conspicuously:
``Your pre-approval for this credit card does not mean that we have reviewed your individual financial circumstances. You should review your own budget before accepting this offer of credit.''.
``(vi) Availability of credit reports.--That the consumer is entitled to a copy of his or her credit report, in accordance with the Fair Credit Reporting Act.''.
(B) Publication of model form.--Not later than 180 days after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall publish worksheet forms in accordance with section 195 on the Truth in Lending Act for the purpose of compliance with section 127(c)(1)(B)(iv) of the Truth in Lending Act, as added by this paragraph. This section shall be effective no later than January 1, 2001.
Strike section 307 and insert:
SEC. 307. AUDIT PROCEDURES.
(a) Amendments.--Section 586 of title 28, United States Code, is amended--
(1) in subsection (a), as amended by section 301 of this Act, by striking paragraph (6) and inserting the following:
``(6) make such reports as the Attorney General directs, including the results of audits performed under subsection
(f); and''; and
(2) by adding at the end the following: ``(f)(1)(A) The Attorney General shall establish procedures to determine the accuracy and completeness of petitions, schedules, and other information which the debtor is required to provide under sections 521 and 1322 of title 11, and, if applicable, section 111 of title 11, in individual cases filed under chapter 7 or 13 of such title.
Those procedures shall--
``(i) establish a method of selecting appropriate qualified persons to contract to perform those audits;
``(ii) establish a method of randomly selecting cases to be audited, except that not less than 1 out of every 500 cases in each Federal judicial district shall be selected for audit;
``(iii) require audits for schedules of income and expenses which reflect greater than average variances from the statistical norm of the district in which the schedules were filed; and
``(iv) establish procedures for--
providing, not less frequently than annually, public information concerning the aggregate results of such audits including the percentage of cases, by district, in which a material misstatement of income or expenditures is reported.
``(2) The United States trustee for each district is authorized to contract with auditors to perform audits in cases designated by the United States trustee according to the procedures established under paragraph (1).
(A) The report of each audit conducted under this subsection shall be filed with the court and transmitted to the United States trustee. Each report shall clearly and conspicuously specify any material misstatement of income or expenditures or of assets identified by the person performing the audit. In any case where a material misstatement of income or expenditures or of assets has been reported, the clerk of the bankruptcy court shall give notice of the misstatement to the creditors in the case.
``(B) If a material misstatement of income or expenditures or of assets is reported the United States trustee shall--
``(i) report the material misstatement, if appropriate, to the United States Attorney pursuant to section 3057 of title 18, United States Code;
``(ii) if advisable, take appropriate action, including but not limited to commencing an adversary proceeding to revoke the debtor's discharge pursuant to section 727(d) of title 11, United States Code.
(b) Amendments.--Section 521 of title 11, United States Code is amended in subsections (3) and (4) by adding ``or an auditor appointed pursuant to section 586 of title 28, United States Code'' after ``serving in the case.''
(c) Amendments.--Section 727(d) of title II, United States Code is amended--
(1) By deleting ``or'' at the end of paragraph (2);
(2) By substituting ``; or'' for the period at the end of paragraph (3); and
(3) Adding the following at the end of paragraph (3)--
``(4) the debtor has failed to explain satisfactorily--
``(A) a material misstatement in an audit performed pursuant to section 586(f) of title 28, United States Code; or
``(B) a failure to make available for inspection all necessary accounts, papers, documents, financial records, files and all other papers, things, or property belonging to the debtor that are requested for an audit conducted pursuant to section 586(f) of title 28, United States Code.
(d) Effective Date.--The amendments made by this section shall take effect 18 months after the date of enactment of this Act.
In section 102, in the new section 707(j)(2)(A), strike
``20'' and replace with ``30''.
At the appropriate place in title II, insert the following:
SEC. 2 . VIOLATIONS OF THE AUTOMATIC STAY
(a) Sec. 362(a) is amended by adding after subsection (8) the following:
``(9) any communication threatening a debtor, at any time after the commitment and before the granting of a discharge in a case under this title, an intention to file a motion to determine the dischargeability of a debt, or to file a motion under 11 U.S.C. Section 707(b) to dismiss or convert a case, or to repossess collateral from the debtor to which the stay applies.''
At the appropriate place in title II, insert the following:
SEC. 2 . DISCOURAGING ABUSIVE REAFFIRMATION PRACTICES.
Sec. 524 of title 11, United States Code, is amended--
(1) in subsection (c)(2)(B) by adding at the end the following:
``(C) such agreement contains a clear and conspicuous statement which advises the debtor what portion of the debt to be reaffirmed is attributable to principal, interest, late fees, creditor's attorneys fees, expenses or other costs relating to the collection of the debt.''
(2) in subsection (c)(6)(B), by inserting after ``real property'' the following: ``or is a debt described in subsection (c)(7).''
(7) in a case concerning an individual, if the consideration for such agreement is based in whole or in part on an unsecured consumer debt, or is based in whole or in part upon a debt for an item of personalty the value of which at point of purchase was $250 or less, and in which the creditor asserts a purchase money security interest, the court approves such agreement as--
(i) in the best interest of the debtor in light of the debtor's income and expenses;
(ii) not imposing an undue hardship on the debtor's future ability of the debtor to pay for the needs of children and other dependents (including court ordered support);
(iii) not requiring the debtor to pay the creditor's attorney's fees, expenses or other costs relating to the collection of the debt;
(iv) not entered into to protect property that is necessary for the care and maintenance of children or other dependents that would have nominal value on repossession;
(v) not entered into after coercive threats or actions by the creditor in the creditor's course of dealings with the debtor.
(3) in subsection (d)(2) by adding after ``subsections
(c)(6)'' ``and (c)(7)'', and after ``of this section,'' by striking ``if the consideration for such agreement is based in whole or in part on a consumer debt that is not secured by real property of the debtor'' and adding at the end: ``as applicable;''
At the appropriate place insert the following:
SEC. . ENHANCED DISCLOSURES UNDER AN OPEN END CREDIT PLAN.
(a) Amendments to the Truth in Lending Act.--
(1) Enhanced Disclosure of Repayment Terms.--
(A) In general.--Section 127(b) of the Truth in Lending Act
(15 U.S.C. 1637(b)) is amended by adding at the end the following:
``(11)(A) In a clear and conspicuous manner, repayment information that would apply to the outstanding balance of the consumer under the credit plan, including--
``(i) the required minimum monthly payment on that balance, represented as both a dollar figure and a percentage of that balance;
``(ii) the number of months (rounded to the nearest month) that it would take to pay the entire amount of that current balance if the consumer pays only the required minimum monthly payments and if no further advances are made; and
``(iii) the total cost to the consumer, including interest and principal payments, of paying that balance in full if the consumer pays only the required minimum monthly payments and if no further advances are made.
``(B) In making the disclosures under subparagraph (A) the creditor shall apply the annual interest rate that applies to that balance with respect to the current billing cycle for that consumer in effect on the date on which the disclosure is made.
(B) Publication of model forms.--Not later than 180 days after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall publish model disclosure forms in accordance with Section 195 of the Truth in Lending Act for the purpose of compliance with section 127(b)(11) of the Truth in Lending Act, as added by this paragraph.
(C) Civil liability.--Section 130(a) of the Truth in Lending Act (15 U.S.C. 1640(a)) is amended, in the undesignated paragraph following paragraph (4), by striking the second sentence and inserting the following: ``In connection with the disclosures referred to in subsections
(a) and (b) of section 1637 of this title, a creditor shall have a liability determined under paragraph (2) only for failing to comply with the requirements of section 1635, 1637(a), or of paragraphs (4), (5), (6), (7), (8), (9), (10), or (11) of section 1637(b) or for failing to comply with disclosure requirements under State law for any term or item that the Board has determined to be substantially the same in meaning under section 1610(a)(2) as any of the terms or items referred to in section 1637(a), paragraph (4), (5), (6), (7),
(8), (9), (10), or (11) of section 1637(b) of this title.''
(2) Disclosures in connection with solicitations.--
(A) In general.--Section 127(c)(1)(B) of the Truth in Lending Act (15 U.S.C. 1637(c)(1)(B) is amended by adding the following:
``(iv) Credit worksheet.--An easily understandable credit worksheet designed to aid consumers in determining their ability to assume more debt, including consideration of the personal expenses of the consumer and a simple formula for the consumer to determine whether the assumption of additional debt is advisable.
(v) Basis of preapproval.--In any case in which the application or solicitation states that the consumer has been preapproved for an account under an open end consumer credit plan, the following statement clearly and conspicuously:
``Your pre-approval for this credit card does not mean that we have reviewed your individual financial circumstances. You should review your own budget before accepting this offer of credit.''
(vi) Availability of credit report.--That the consumer is entitled to a copy of his or her credit report, in accordance with the Fair Credit Reporting Act.''
(B) Publication of model forms.--Not later than 180 days after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall publish model disclosure forms in accordance with Section 195 of the Truth in Lending Act for the purpose of compliance with section 127(c)(1)(B) of the Truth in Lending Act, as amended by this paragraph.
(b) Effective Date.--The provisions of this section shall become effective on January 1, 2001.
Insert at an appropriate place:
Amend 11 U.S.C. Section 1325(6)(a), insert, after
``received by the debtor,'' ``(other than child support payments, foster care payments, or disability payments for a dependent child made in accordance with applicable non-bankruptcy law and which is reasonably necessary (to be expended)''.
Insert at an appropriate place:
11 U.S.C. 507(a) to add a new section 507(a)(10) to read:
``Tenth, allowed claims for injuries resulting from the operation of a motor vehicle or vessel if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug or another substance.''
In 523(a)(9), insert ``or vessel'' after ``vehicle''.
Strike sections 323 through 329 and insert the following:
SEC. 323. DEFINITION OF DOMESTIC SUPPORT OBLIGATION.
Section 101 of title 11, United States Code, as amended by section 321(g) of this Act, is amended--
(1) by striking paragraph (12A); and
(2) by inserting after paragraph (14) the following:
``(14A) `domestic support obligation' means a debt (that accrues before or after the entry of an order for relief under this title) that is--
``(A) owed to or recoverable by--
``(i) a spouse, former spouse, or child of the debtor or that child's legal guardian; or
``(ii) a governmental unit;
``(B) in the nature of alimony, maintenance, or support
(including assistance provided by a govermental unit) of such spouse, former spouse, or child, without regard to whether such debt is expressly so designated;
``(C) established or subject to establishment before or after entry of an order for relief under this title, by reason of applicable provisions of--
``(i) a separation agreement, divorce decree, or property settlement agreement;
``(ii) an order of a court of record; or
``(iii) a determination made in accordance with applicable nonbankruptcy law by a governmental unit; and
``(D) not assigned to a nongovernmental entity, unless that obligation is assigned voluntarily by the spouse, former spouse, child, or parent solely for the purpose of collecting the debt.''.
SEC. 324. PRIORITIES FOR CLAIMS FOR DOMESTIC SUPPORT
OBLIGATIONS.
Section 507(a) of title 11, United States Code, is amended--
(1) by striking paragraph (7);
(2) by redesignating paragraphs (1) through (6) as paragraphs (2) through (7), respectively;
(3) in paragraph (2), as redesignated, by striking
``First'' and inserting ``Second'';
(4) in paragraph (3), as redesignated, by striking
``Second'' and inserting ``Third'';
(5) in paragraph (4), as redesignated, by striking
``Third'' and inserting ``Fourth'';
(6) in paragraph (5), as redesignated, by striking
``Fourth'' and inserting ``Fifth'';
(7) in paragraph (6), as redesignated, by striking
``Fifth'' and inserting ``Sixth'';
(8) in paragraph (7), as redesignated, by striking
``Sixth'' and inserting ``Seventh''; and
(9) by inserting before paragraph (2), as redesignated, the following:
``(1) First, allowed claims for domestic support obligations to be paid in the following order on the condition that funds received under this paragraph by a governmental unit in a case under this title be applied:
``(A) Claims that, as of the date of entry of the order for relief, are owed directly to a spouse, former spouse, or child of the debtor, or the parent of such child, without regard to whether the claim is filed by the spouse, former spouse, child, or parent, or is filed by a governmental unit on behalf of that person.
``(B) Claims that, as of the date of entry of the order for relief, are assigned by a spouse, former spouse, child of the debtor, or the parent of that child to a governmental unit or are owed directly to a governmental unit under applicable nonbankruptcy law.''.
SEC. 325. REQUIREMENTS TO OBTAIN CONFIRMATION AND DISCHARGE
IN CASES INVOLVING DOMESTIC SUPPORT
OBLIGATIONS.
Title 11, United States Code, is amended--
(1) in section 1129(a), by adding at the end the following:
``(14) If the debtor is required by a judicial or administrative order or statute to pay a domestic support obligation, the debtor has paid all amounts payable under such order or statute for such obligation that become payable after the date on which the petition is filed.'';
(2) in section 1325(a)--
(A) in paragraph (5), by striking ``and'' at the end;
(B) in paragraph (6), by striking the period at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(7) if the debtor is required by a judicial or administrative order or statute to pay a domestic support obligation, the debtor has paid all amounts payable under such order for such obligation that become payable after the date on which the petition is filed.''; and
(3) in section 1328(a), as amended by section 314 of this Act, in the matter preceding paragraph (1), by inserting ``, and with respect to a debtor who is required by a judicial or administrative order to pay a domestic support obligation, certifies that all amounts payable under such order or statute that are due on or before the date of the certification (including amounts due before or after the petition was filed) have been paid'' after ``completion by the debtor of all payments under the plan''.
SEC. 326. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC SUPPORT
OBLIGATION PROCEEDINGS.
Section 362(b) of title 11, United States Code, is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) under subsection (a)--
``(A) of the commencement or continuation of an action or proceeding for--
``(i) the establishment of paternity as a part of an effort to collect domestic support obligations; or
``(ii) the establishment or modification of an order for domestic support obligations; or
``(B) the collection of a domestic support obligation from property that is not property of the estate;'';
(2) in paragraph (17), by striking ``or'' at the end;
(3) in paragraph (18), by striking the period at the end and inserting a semicolon; and
(4) by adding at the end the following:
``(19) under subsection (a) with respect to the withholding of income pursuant to an order as specified in section 466(b) of the Social Security Act (42 U.S.C. 666(b)); or
``(20) under subsection (a) with respect to--
``(A) the withholding, suspension, or restriction of drivers' licenses, professional and occupational licenses, and recreational licenses pursuant to State law, as specified in section 466(a)(16) of the Social Security Act (42 U.S.C. 666(a)(16)) or with respect to the reporting of overdue support owed by an absent parent to any consumer reporting agency as specified in section 466(a)(7) of the Social Security Act (42 U.S.C. 666(a)(7));
``(B) the interception of tax refunds, as specified in sections 464 and 466(a)(3) of the Social Security Act (42 U.S.C. 664 and 666(a)(3)); or
``(C) the enforcement of medical obligations as specified under title IV of the Social Security Act (42 U.S.C. 601 et seq.).''.
SEC. 327. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY,
MAINTENANCE, AND SUPPORT.
(a) In General.--Section 523 of title 11, United States Code, as amended by section 202 of this Act, is amended--
(1) in subsection (a), by striking paragraph (5) and inserting the following:
``(5) for a domestic support obligation;'';
(2) in subsection (c), by striking ``(6), or (15)'' and inserting ``or (6)''; and
(3) in paragraph (15), by striking ``governmental unit'' and all through the end of the paragraph and inserting a semicolon.
SEC. 328. CONTINUED LIABILITY OF PROPERTY.
Section 522 of title 11, United States Code, is amended--
(1) in subsection (c), by striking paragraph (1) and inserting the following:
``(1) a debt of a kind specified in paragraph (1) or (5) of section 523(a) (in which case, notwithstanding any provision of applicable bankruptcy law to the contrary, such property shall be liable for a debt of a kind specified in section 523(a)(5);''; and
(2) in subsection (f)(1)(A), by striking the dash and all that follows through the end of the subparagraph and inserting ``of a kind that is specified in section 523(a)(5); or''.
SEC. 329. PROTECTION OF DOMESTIC SUPPORT CLAIMS AGAINST
PREFERENTIAL TRANSFER MOTIONS.
Section 547(c)(7) of title 11, United States Code, is amended to read as follows:
``(7) to the extent such transfer was a bona fide payment of a debt for a domestic support obligation; or''.
SEC. 709. AUTOMATIC STAY.
Section 362(b) of title 11, United States Code, as amended by section 326 of this Act, is amended--
(1) in paragraph (21), by striking ``or'' at the end;
(2) in paragraph (22), by striking the period at the end and inserting a semicolon; and
(3) by inserting after paragraph (22) the following:
``(23) under subsection (a) of this section of any transfer that is not avoidable under section 544 and that is not avoidable under section 549;
``(24) under subsection (a)(3) of this section, of the continuation of any eviction, unlawful detainer action, or similar proceeding by a lessor against a debtor involving residential real property in which the debtor resides as a tenant under a rental agreement and the debtor has not paid rent to the lessor pursuant to the terms of the lease agreement or applicable state law after the commencement and during the course of the case; or
``(25) under subsection (a)(3) of this section, of the commencement or continuation of any eviction, unlawful detainer action, or similar proceeding by a lessor against a debtor involving residential real property in which the debtor resides as a tenant under a rental agreement that has terminated pursuant to the lease agreement or applicable State law.''.
(26) under subsection (a)(3) of this section, of any eviction, unlawful detainer action, or similiar proceeding, if the debtor has previously filed within the last year and failed to pay post-petition rent during the course of that case.
(27) under subsection (a)(3) of this section, of eviction actions based on endangerment to property or person or the use of illegal drugs.
At the appropriate place in title VII, insert the following:
SEC. 7____. TRANSFERS MADE BY NONPROFIT CHARITABLE
CORPORATIONS.
(a) Sale of Property of Estate.--Section 363(d) of title 11, United States Code, is amended--
(1) by striking ``only'' and all that follows through the end of the subsection and inserting ``only--
``(1) in accordance with applicable nonbankruptcy law that governs the transfer of property by a corporation or trust that is not a moneyed, business, or commercial corporation or trust; and
``(2) to the extent not inconsistent with any relief granted under subsection (c), (d), (e), or (f) of section 362''.
(b) Confirmation of Plan for Reorganization.--Section 1129(a) of title 11, United States Code, is amended by adding at the end the following:
``(14) All transfers of property of the plan shall be made in accordance with any applicable provisions of nonbankruptcy law that govern the transfer of property by a corporation or trust that is not a moneyed, business, or commercial corporation or trust.''.
(c) Transfer of Property.--Section 541 of title 11, United States Code, is amended by adding at the end the following:
``(e) Notwithstanding any other provision of this title, property that is held by a debtor that is a corporation described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code may be transferred to an entity that is not such a corporation, but only under the same conditions as would apply if the debtor had not filed a case under this title.''.
(d) Applicability.--The amendments made by this section shall apply to a case pending under title 11, United States Code, on the date of enactment of this Act, except that the court shall not confirm a plan under Chapter 11 of this title without considering whether this section would substantially affect the rights of a party in interest who first acquired rights with respect to the debtor after the date of the petition. The parties who may appear and be heard in a proceeding under this section include the attorney general of the state in which the debtor is incorporated, was formed, or does business.
______
REED AMENDMENT NO. 3596
Mr. REED proposed an amendment to amendment No. 3559 proposed by Mr. Grassley to the bill (S. 1301) to amend title 11, United States Code, to provide for consumer bankruptcy protection, and for other purposes; as follows:
At the appropriate place in title IV, insert the following:
SEC. 4____. PROHIBITION ON CERTAIN ACTIONS FOR FAILURE TO
INCUR FINANCE CHARGES.
Section 106 of the Truth in Lending Act (15 U.S.C. 1605) is amended by adding at the end the following:
``(g) Prohibition on Certain Actions for Failure To Incur Finance Charges.--A creditor may not, solely because a consumer has not incurred finance charges in connection with an extension of credit--
``(1) refuse to renew or continue to offer the extension of credit to that consumer; or
``(2) charge a fee to that consumer in lieu of a finance charge.''.
______
D'AMATO (AND OTHERS) AMENDMENT NO. 3597
Mr. D'AMATO (for himself, Mr. Chafee, Mr. Dodd, Mr. Bryan, Ms. Moseley-Braun, and Mrs. Boxer) proposed an amendment to amendment No. 3559 proposed by Mr. Grassley to the bill, S. 1301, supra; as follows:
At the appropriate place, insert the following new section:
SEC. ____. PROHIBITION OF CERTAIN ATM FEES.
(a) Definition.--Section 903 of the Electronic Fund Transfer Act (15 U.S.C. 1693a) is amended--
(1) in paragraph (10), by striking ``and'' at the end;
(2) in paragraph (11), by striking the period at the end and inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(12) the term `electronic terminal surcharge' means a transaction fee assessed by a financial institution that is the owner or operator of the electronic terminal; and
``(13) the term `electronic banking network' means a communications system linking financial institutions through electronic terminals.''.
(b) Certain Fees Prohibited.--Section 905 of the Electronic Fund Transfer Act (12 U.S.C. 1693c) is amended by adding at the end the following new subsection:
``(d) Limitation on Fees.--With respect to a transaction conducted at an electronic terminal, an electronic terminal surcharge may not be assessed against a consumer if the transaction--
``(1) does not relate to or affect an account held by the consumer with the financial institution that is the owner or operator of the electronic terminal; and
``(2) is conducted through a national or regional electronic banking network.''.
______
DODD AMENDMENT NO. 3598
Mr. DODD proposed an amendment to amendment No. 3559 proposed by Mr. Grassley to the bill, S. 1301, supra; as follows:
At the appropriate place, insert the following new section:
SEC. ____. EXTENSIONS OF CREDIT TO UNDERAGE CONSUMERS.
(a) In General.--Section 127(c) of the Truth in Lending Act
(15 U.S.C. 1637(c)) is amended--
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following:
``(5) Applications from underage consumers.--
``(A) Prohibition on issuance.--No credit card may be issued to, or open end credit plan established on behalf of, a consumer who has not reached the age of 21 unless the consumer has submitted a written application to the card issuer that meets the requirements of subparagraph (B).
``(B) Application requirements.--An application to open a credit card account by an individual who has not reached the age of 21 as of the date of submission of the application shall require--
``(i) the signature of the parent or guardian of the consumer indicating joint liability for debts incurred by the consumer in connection with the account before the consumer has reached the age of 21; or
``(ii) submission by the consumer of financial information indicating an independent means of repaying any obligation arising from the proposed extension of credit in connection with the account.''.
(b) Regulatory Authority.--The Board of Governors of the Federal Reserve System may issue such rules or publish such model forms as it considers necessary to carry out section 127(c)(5) of the Truth in Lending Act, as amended by this section.
______
KOHL AMENDMENT NO. 3599
Mr. KOHL proposed an amendment to amendment No. 3559 proposed by Mr. Grassley to the bill, S. 3559, supra; as follows:
At the appropriate place, insert the following new section:
SEC. ____. SENSE OF THE SENATE REGARDING THE HOMESTEAD
EXEMPTION.
(a) Findings.--The Senate finds that--
(1) one of the most flagrant abuses of the bankruptcy system involves misuse of the homestead exemption, which allows a debtor to exempt his or her home, up to a certain value, as established by State law, from being sold off to satisfy debts;
(2) while the vast majority of States responsibly cap the exemption at not more than $40,000, 5 States exempt homes regardless of their value;
(3) in the few States with unlimited homestead exemptions, debtors can shield their assets in luxury homes while legitimate creditors get little or nothing;
(4) beneficiaries of the homestead exemption include convicted insider traders and savings and loan criminals, while shortchanged creditors include children, spouses, governments, and banks; and
(5) the homestead exemption should be capped at $100,000 to prevent such high-profile abuses.
(b) Sense of the Senate.--It is the sense of the Senate that--
(1) meaningful bankruptcy reform cannot be achieved without capping the homestead exemption; and
(2) bankruptcy reform legislation should include a cap of
$100,000 on the homestead exemption to the bankruptcy laws.
______
HATCH (AND OTHERS) AMENDMENT NO. 3600
Mr. HATCH (for himself, Mr. Graham, Mr. Durbin, and Mr. Grassley) proposed an amendment to amendment No. 3559 proposed by Mr. Grassley to the bill, S. 3559, supra; as follows:
On page 60, after line 22, insert the following:
SEC. 2____. PROTECTION OF RETIREMENT SAVINGS IN BANKRUPTCY.
(a) In General.--Section 522 of title 11, United States Code, is amended--
(1) in subsection (b)--
(A) in paragraph (2)--
(i) by striking ``(2)(A) any property'' and inserting:
``(3) Property listed in this paragraph is--
``(A) any property'';
(ii) in subparagraph (A), by striking ``and'' at the end;
(iii) in subparagraph (B), by striking the period at the end and inserting ``; and''; and
(iv) by adding at the end the following:
``(C) retirement funds to the extent that those funds are in a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986 and which has not been pledged or promised to any person in connection with any extension of credit.'';
(B) by striking paragraph (1) and inserting:
``(2) Property listed in this paragraph is property that is specified under subsection (d) of this section, unless the State law that is applicable to the debtor under paragraph
(3)(A) of this subsection specifically does not so authorize.'';
(C) in the matter preceding paragraph (2)--
(i) by striking ``(b)'' and inserting ``(b)(1)'';
(ii) by striking ``paragraph (2)'' both places it appears and inserting ``paragraph (3)'';
(iii) by striking ``paragraph (1)'' each place it appears and inserting ``paragraph (2)''; and
(iv) by striking ``Such property is--''; and
(D) by adding at the end of the subsection the following:
``(4) For purposes of paragraph (3)(C), the following shall apply:
``(A) If the retirement funds are in a retirement fund that has received a favorable determination pursuant to section 7805 of the Internal Revenue Code of 1986, and that determination is in effect as of the date of the commencement of the case under section 301, 302, or 303, those funds shall be presumed to be exempt from the estate.
``(B) If the retirement funds are in a retirement fund that has not received a favorable determination pursuant to such section 7805, those funds are to be exempt from the estate if the debtor demonstrates that--
``(i) no prior determination to the contrary has been made by a court or the Internal Revenue Service; and
``(ii)(I) the retirement fund is in substantial compliance with the applicable requirements of the Internal Revenue Code of 1986; or
``(II) the retirement fund fails to be in substantial compliance with such applicable requirements, the debtor is not materially responsible for that failure.
``(C) A direct transfer of retirement funds from 1 fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986, pursuant to section 401(a)(31) of the Internal Revenue Code of 1986, or otherwise, shall not cease to qualify for exemption under paragraph (3)(C) by reason of that direct transfer.
``(D)(i) Any distribution that qualifies as an eligible rollover distribution within the meaning of section 402(c) of the Internal Revenue Code of 1986 or that is described in clause (ii) shall not cease to qualify for exemption under paragraph (3)(C) by reason of that distribution.
``(ii) A distribution described in this clause is an amount that--
``(I) has been distributed from a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986; and
``(II) to the extent allowed by law, is deposited in such a fund or account not later than 60 days after the distribution of that amount.''; and
(2) in subsection (d)--
(A) in the matter preceding paragraph (1), by striking
``subsection (b)(1)'' and inserting ``subsection (b)(2)''; and
(B) by adding at the end the following:
``(12) Retirement funds to the extent that those funds are in a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986.''.
(b) Automatic Stay.--Section 362(b) of title 11, United States Code, is amended--
(1) in paragraph (17), by striking ``or'' at the end;
(2) in paragraph (18), by striking the period and inserting
``; or'';
(3) by inserting after paragraph (18) the following:
``(19) under subsection (a), of withholding of income from a debtor's wages and collection of amounts withheld, pursuant to the debtor's agreement authorizing that withholding and collection for the benefit of a pension, profit-sharing, stock bonus, or other plan established under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986 that is sponsored by the employer of the debtor, or an affiliate, successor, or predecessor of such employer--
``(A) to the extent that the amounts withheld and collected are used solely for payments relating to a loan from a plan that satisfies the requirements of section 408(b)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)(1)); or
``(B) in the case of a loan from a thrift savings plan described in subchapter III of title 5, that satisfies the requirements of section 8433(g) of that title.''; and
(4) by adding at the end of the flush material following paragraph (19) the following: ``Paragraph (19) does not apply to any amount owed to a plan referred to in that paragraph that is incurred under a loan made during the 1-year period preceding the filing of a petition. Nothing in paragraph (19) may be construed to provide that any loan made under a governmental plan under section 414(d) of the Internal Revenue Code of 1986 constitutes a claim or a debt under this title.''.
(c) Exceptions To Discharge.--Section 523(a) of title 11, United States Code, as amended by section 202, is amended--
(1) by striking ``or'' at the end of paragraph (17);
(2) by striking the period at the end of paragraph (18) and inserting ``; or''; and
(3) by adding at the end the following:
``(19) owed to a pension, profit-sharing, stock bonus, or other plan established under section 401, 403, 408, 408A, 414, 457, or 501(c) of the Internal Revenue Code of 1986, pursuant to--
``(A) a loan permitted under section 408(b)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)(1)); or
``(B) a loan from the thrift savings plan described in subchapter III of title 5, that satisfies the requirements of section 8433(g) of that title.
Paragraph (19) does not apply to any amount owed to a plan referred to in that paragraph that is incurred under a loan made during the 1-year period preceding the filing of a petition. Nothing in paragraph (19) may be construed to provide that any loan made under a governmental plan under section 414(d) of the Internal Revenue Code of 1986 constitutes a claim or a debt under this title.''.
(d) Plan Contents.--Section 1322 of title 11, United States Code, is amended by adding at the end the following:
``(f) A plan may not materially alter the terms of a loan described in section 362(b)(19).''.
On page 48, line 15, insert ``as amended by section 207(a)'' after ``Code,''.
On page 48, line 17, strike ``(b)(2)(A)'' and insert
``(b)(3)(A)''.
On page 48, line 22, strike ``subsection (b)(2)(A)'' and insert ``subsection (b)(3)(A)''.
On page 62, line 20, insert ``, as amended by section 207(b),'' after ``362(b) of title 11, United States Code''.
On page 62, line 22, strike ``(17)'' and insert ``(18)''.
On page 62, line 24, strike ``(18)'' and insert ``(19)''.
On page 63, line 1, strike ``by adding at the end the following:'' and insert ``by inserting after paragraph (19) the following:''.
On page 63, line 2, strike ``(19)'' and insert ``(20)''.
On page 63, line 6, strike ``(20)'' and insert ``(21)''.
On page 80, strike lines 4 through 6, and insert the following:ment;'';
(D) in paragraph (20), by striking ``or'' at the end;
(E) in paragraph (21), by striking the period and inserting
``; or'';
On page 80, line 7, strike ``(E)'' and insert ``(F)''.
On page 80, line 9, strike ``(19)'' and insert (22)''.
On page 80, line 21, strike ``(19)'' and insert (22)''.
On page 131, line 3, strike ``section 326'' and insert
``sections 326 and 401''.
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