S.Amdt. 108

1. Adds SEC. 234. LIMITING CLAIMS ARISING FROM VIOLATIONS OF STATE LAW on page 132, between lines 5 and 6

   Adds a sectionPrinted page

   Inserted: SEC. 234. LIMITING CLAIMS ARISING FROM VIOLATIONS OF STATE LAW.

   Inserted: Section 502(b) of title 11, United States Code, is amended--

   Inserted: (1) in paragraph (8), by striking "or" at the end;

   Inserted: (2) in paragraph (9), by striking the period at the end and inserting "; or"; and

   Inserted: (3) by adding at the end the following:

   Inserted: "(10) such claim is for a secured debt that would otherwise be enforceable against the debtor, and, in connection with such secured debt, a party other than the debtor violated any applicable State law that related to--

   Inserted: "(A) interest, fees, or other charges imposed in connection with such agreement, including--

   Inserted: "(i) fees paid to third parties, such as yield spread premiums and other payments made to mortgage brokers, whether by the debtor, the debtor, or a third party; and

   Inserted: "(ii) charges for premiums for insurance, debt cancellation, and debt suspension products, whether such product was voluntary or involuntary and whether the beneficiary of such product is the debtor, the creditor, or a third party;

   Inserted: "(B) consideration of the ability of the debtor to repay such secured debt;

   Inserted: "(C) fees imposed if the debtor repays all or part of such secured debt before it is due;

   Inserted: "(D) amortization of such secured debt, including without limitation negative amortization and balloon payments;

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   Inserted: "(E) refinancing of debt;

   Inserted: "(F) counseling of the borrower prior to consummation of the transaction from which the secured debt arose; or

   Inserted: "(G) any other matter that the court determines to be relevant to the fair disposition of the claim, with due consideration of the intent of the applicable State law.".

   Original wording

   On page 132, between lines 5 and 6, insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed