[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4479 Introduced in Senate (IS)]
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116th CONGRESS
2d Session
S. 4479
To amend title 11, United States Code, to change the treatment of
certain rental obligations during bankruptcy.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 6, 2020
Mr. Tillis introduced the following bill; which was read twice and
referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend title 11, United States Code, to change the treatment of
certain rental obligations during bankruptcy.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. BANKRUPTCY AMENDMENTS.
(a) Executory Contracts and Unexpired Leases.--
(1) In general.--Section 365(d) of title 11, United States
Code, is amended--
(A) in paragraph (3)--
(i) by inserting ``(A)'' after ``(3)'';
(ii) by inserting ``, except as provided in
subparagraph (B)'' after ``such 60-day
period''; and
(iii) by adding at the end the following:
``(B) In a case under subchapter V of chapter 11, the time for
performance of an obligation described in subparagraph (A) arising
under any unexpired lease of nonresidential real property may be
extended by the court if the debtor is experiencing or has experienced
a material financial hardship due, directly or indirectly, to the
coronavirus disease 2019 (COVID-19) pandemic until the earlier of--
``(i) the date that is 60 days after the date of the order
for relief, which may be extended by the court for an
additional period of 60 days if the court determines that the
debtor is continuing to experience a material financial
hardship due, directly or indirectly, to the coronavirus
disease 2019 (COVID-19) pandemic; or
``(ii) the date on which the lease is assumed or rejected
under this section.
``(C) An obligation described in subparagraph (A) for which an
extension is granted under subparagraph (B) shall be treated as an
administrative expense described in section 507(a)(2) in accordance
with section 1191(e).''; and
(B) in paragraph (4), by striking ``120'' each
place it appears and inserting ``210''.
(2) Sunset.--
(A) In general.--Effective on the date that is 2
years after the date of enactment of this Act, section
365(d) of title 11, United States Code, is amended--
(i) in paragraph (3)--
(I) by striking ``(A)'' after
``(3)'';
(II) by striking ``, except as
provided in subparagraph (B)'' after
``such 60-day period''; and
(III) by striking subparagraphs (B)
and (C); and
(ii) in paragraph (4), by striking ``210''
each place it appears and inserting ``120''.
(B) Subchapter v cases filed before sunset.--
Notwithstanding the amendments made by subparagraph
(A), the amendments made by paragraph (1) shall apply
in any case commenced under subchapter V of chapter 11
of title 11, United States Code, before the date that
is 2 years after the date of enactment of this Act.
(b) Preferences.--
(1) In general.--Section 547 of title 11, United States
Code, is amended--
(A) in subsection (b), in the matter preceding
paragraph (1), by striking ``and (i)'' and inserting
``, (i), and (j)''; and
(B) by adding at the end the following:
``(j)(1) In this subsection:
``(A) The term `covered payment of rental arrearages' means
a payment of arrearages that--
``(i) is made in connection with an agreement or
arrangement--
``(I) between the debtor and a lessor to
defer or postpone the payment of rent and other
periodic charges under a lease of
nonresidential real property; and
``(II) made or entered into on or after
March 13, 2020;
``(ii) does not exceed the amount of rental and
other periodic charges agreed to under the lease of
nonresidential real property described in clause (i)(I)
before March 13, 2020; and
``(iii) does not include fees, penalties, or
interest in an amount greater than the amount of fees,
penalties, or interest--
``(I) scheduled to be paid under the lease
of nonresidential real property described in
clause (i)(I); or
``(II) that the debtor would owe if the
debtor had made every payment due under the
lease of nonresidential real property described
in clause (i)(I) on time and in full before
March 13, 2020.
``(B) The term `covered payment of supplier arrearages'
means a payment of arrearages that--
``(i) is made in connection with an agreement or
arrangement--
``(I) between the debtor and a supplier of
goods or services to defer or postpone the
payment of amounts due under an executory
contract for goods or services; and
``(II) made or entered into on or after
March 13, 2020;
``(ii) does not exceed the amount due under the
executory contract described in clause (i)(I) before
March 13, 2020; and
``(iii) does not include fees, penalties, or
interest in an amount greater than the amount of fees,
penalties, or interest--
``(I) scheduled to be paid under the
executory contract described in clause (i)(I);
or
``(II) that the debtor would owe if the
debtor had made every payment due under the
executory contract described in clause (i)(I)
on time and in full before March 13, 2020.
``(2) The trustee may not avoid a transfer under this section for--
``(A) a covered payment of rental arrearages; or
``(B) a covered payment of supplier arrearages.''.
(2) Sunset.--
(A) In general.--Effective on the date that is 2
years after the date of enactment of this Act, section
547 of title 11, United States Code, is amended--
(i) in subsection (b), in the matter
preceding paragraph (1), by striking ``, (i),
and (j)'' and inserting ``and (i)''; and
(ii) by striking subsection (j).
(B) Cases filed before sunset.--Notwithstanding the
amendments made by subparagraph (A), the amendments
made by paragraph (1) shall apply in any case commenced
under title 11, United States Code, before the date
that is 2 years after the date of enactment of this
Act.
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