S.Amdt. 4095

SA 4095. Mr. NELSON of Florida submitted an amendment intended to be
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the
financial stability of the United States by improving accountability
and transparency in the financial system, to end ``too big to fail'',
to protect the American taxpayer by ending bailouts, to protect
consumers from abusive financial services practices, and for other
purposes; which was ordered to lie on the table; as follows:

On page 209, line 9, insert before the period the
following: ``, that is cleared by or subject to the rules of
a clearing organization (as defined in paragraph (9)(D))''.
On page 296, between lines 15 and 16, insert the following:
(d) Repeal of Safe Harbor Treatment in the Bankruptcy
Code.--Title 11, United States Code, is amended--
(1) in section 103(a), by striking ``chapter'' and all that
follows through ``apply'' and inserting ``chapter, sections
307, 362(n), 557, and 562 apply'':
(2) in section 362--
(A) in subsection (b)--
(i) by striking paragraphs (6), (7), (17), and (27);
(ii) by redesignating paragraphs (8) through (16) as
paragraphs (5) through (13), respectively;
(iii) by redesignating paragraphs (18) through (26) as
paragraphs (14) through (22), respectively;
(iv) by redesignating paragraph (28) as paragraph (23); and
(v) in the undesignated matter at the end, by striking
``(12) and (13)'' and inserting ``(9) and (10)''; and
(B) by striking subsection (o);
(3) in section 546--
(A) in subsection (e)--
(i) by striking ``101 or'';
(ii) by striking ``101, 741,'' and inserting ``741''; and
(iii) by inserting ``and except in a case under chapter 11
or 15,'' before ``the trustee'';
(B) in subsection (f), by inserting ``and except in a case
under chapter 11 or chapter 15,'' before ``the trustee'';
(C) by striking subsections (g) and (j); and
(D) by redesignating subsections (h) and (i) as subsections
(g) and (h), respectively;
(4) in section 548(d)(2)--
(A) by striking subparagraphs (C) through (E);
(B) in subparagraph (A), by adding ``and'' at the end; and
(C) in subparagraph (B), by striking the semicolon at the
end and inserting a period;
(5) in section 553--
(A) in subsection (a), by striking ``(except for a setoff
of a kind described in section 362(b)(6), 362(b)(7),
362(b)(17), 362(b)(27), 555, 556, 559, 560, or 561)'' each
place that term appears; and
(B) in subsection (b), by striking ``Except with respect to
a setoff of a kind described in section 362(b)(6), 362(b)(7),
362(b)(17), 362(b)(27), 555, 556, 559, 560, or 561, if a''
and inserting ``If a'';
(6) by striking sections 555, 556, 559, 560, and 561 and
inserting ``[Repealed].'';
(7) in the table of sections for subchapter III of chapter
5, by striking the items relating to sections 555, 556, 559,
560, and 561;
(8) in section 901--
(A) by striking ``555, 556,''; and
(B) by striking ``559, 560, 561,'';
(9) in section 1519, by striking subsection (f); and
(10) in section 1521, by striking subsection (f).
At the end of title II, add the following:

SEC. __. BANKRUPTCY CODE AMENDMENTS.

(a) Definition.--Section 101 of title 11, United States
Code, is amended by inserting after paragraph (43) the
following:
``(43A) The term `qualified financial contract' means any
securities contract, commodity contract, forward contract,
repurchase agreement, or swap agreement, that is cleared by
or subject to the rules of a clearing organization (as
defined in section 201(c)(9)(D) of the Restoring American
Financial Stability Act of 2010.''.
(b) Limitation on Stay of Exercise of Certain Contractual
Rights.--Section 541 of title 11, United States Code, is
amended by adding at the end the following:
``(g) Notwithstanding any other provision of this title, if
the trustee does not assume or reject a qualified financial
contract of the debtor within 3 days after the order for
relief, the exercise of any contractual right of any
counterparty to such qualified financial contract to cause
the liquidation, termination, or acceleration of one or more
qualified financial contracts because of a condition of the
kind specified in section 365(e)(1), or to offset or net out
any termination values or payment amounts arising under or in
connection with the termination, liquidation, or acceleration
of one or more qualified financial contracts 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 proceeding under this title.
During such 3-day period the trustee shall make a good faith
effort to meet all margin, collateral, and settlement
obligations of the debtor that arise under qualified
financial contracts, other than any such obligation that is
not enforceable against the trustee.''.
(c) Limitation on Avoidance of Transfer.--Section 546(j) of
title 11, United States Code, is amended to read as follows:
``(j) Notwithstanding any Federal or State law relating to
the avoidance of preferential or fraudulent transfers, the
trustee may not avoid any transfer of money or other property
in connection with any qualified financial contract of the
debtor, unless the transferee had actual intent to hinder,
delay, or defraud the debtor, the creditors of the debtor, or
the trustee.''.
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