S.Amdt. 59

1. Adds SEC. ------. CERTAIN OBLIGATIONS UNDER THE COMMUNICATIONS ACT OF 1934 wherever appropriate

   Adds a section

   Inserted: SEC. ------. CERTAIN OBLIGATIONS UNDER THE COMMUNICATIONS ACT OF 1934.

   Inserted: (a) In General.--Subchapter III of chapter 5 of title 11, United States Code, is amended by adding at the end the following:

   Inserted: "Sec. 561. Application with Communications Act of 1934

   Inserted: "(a) In General.--The bankruptcy laws may not be applied--

   Inserted: "(1) to avoid, to discharge, to stay, or to set-off any pre-petition or post-petition debt obligation to the United States arising from an auction under section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j));

   Inserted: "(2) to stay the payment obligations of the debtor to the United States if those obligations were a condition of the grant or retention of a license under that Act;

   Inserted: "(3) to prevent the automatic cancellation of a license under that Act pursuant to Commission rules for failure to comply with any monetary or nonmonetary condition for holding a license issued by the Commission, including the automatic cancellation of a license for failure to pay a monetary obligation of the debtor to the United States, whether or not dischargeable in a bankruptcy case, when due under an installment plan arising from an auction under section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)), except that, upon cancellation of such license, the United States shall have an allowed unsecured claim for any outstanding debt to the United States with respect to such canceled license, and that such unsecured debt may be recovered by the United States under its rights as a creditor under this title or other applicable law;

   Inserted: "(4) to avoid, to discharge, or to set-off the pre-petition or post-petition payment obligation of a telecommunications carrier to contribute to the universal service fund, North American Numbering Plan, or other similar telecommunications funding mechanism established by Federal law; or

   Inserted: "(5) to avoid, to discharge, or to set-off the payment obligation of an entity subject to a pre-petition forfeiture or post-petition order or notice of apparent liability entered by the Commission pursuant to regulations of the Commission.

   Inserted: "(b) Debtor To have No Interest in Proceeds of Auction.--A debtor in a proceeding under the bankruptcy laws shall have no right or interest in any portion of the proceeds from a subsequent auction of any license reclaimed by the Commission for failure to pay a monetary obligation of the debtor to the United States in connection with the grant or retention of a license under the Communications Act of 1934 (47 U.S.C. 151 et seq.).

   Inserted: "(c) Security Interests.--Notwithstanding any other provision of law, including State Uniform Commercial Codes, the Commission may--

   Inserted: "(1) establish rules and procedures governing security interests in licenses issued by the Commission, or the proceeds of the sale of such licenses; and

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   Inserted: "(2) establish an office within the Commission for the recording and perfection of such security interests without regard to otherwise applicable State law.

   Inserted: "(d) Definitions.--In this section:

   Inserted: "(1) Bankruptcy laws.--The term 'bankruptcy laws' means this title and any otherwise applicable Federal or State law regarding insolvencies or receiverships, including any Federal law enacted or amended after the date of enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 not expressly in derogation of this section.

   Inserted: "(2) Commission.--The term 'Commission' means the Federal Communications Commission.".

   Inserted: (b) Clerical Amendment.--The table of sections for chapter 5 of title 11, United States Code, is amended by inserting after the item relating to section 560 the following:

   Inserted: "561. Application with Communications Act of 1934".

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to bankruptcy cases filed after the date of enactment of this Act.

   The amendment doesn't say where this goes; the clerk decides.

   Original wording

   At the appropriate place, insert the following:

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As printed