H.R.2947 - Financial Institution Bankruptcy Act of 2016114th Congress (2015-2016)
|Sponsor:||Rep. Trott, David A. [R-MI-11] (Introduced 07/07/2015)|
|Committees:||House - Judiciary | Senate - Judiciary|
|Committee Reports:||H. Rept. 114-477|
|Latest Action:||Senate - 04/13/2016 Received in the Senate and Read twice and referred to the Committee on the Judiciary. (All Actions)|
This bill has the status Passed House
Here are the steps for Status of Legislation:
- Passed House
Summary: H.R.2947 — 114th Congress (2015-2016)All Information (Except Text)
Passed House amended (04/12/2016)
(This measure has not been amended since it was reported to the House on March 23, 2016. The summary of that version is repeated here.)
Financial Institution Bankruptcy Act of 2016
(Sec. 2) This bill amends federal bankruptcy law with respect to a "covered financial corporation" incorporated or organized under any federal or state law (other than a stockbroker, a commodity broker, or a domestic or foreign insurance company or financial institution meeting certain criteria) that is: (1) a bank holding company; or (2) a corporation that exists for the primary purpose of owning, controlling, and financing its subsidiaries, has total consolidated assets of $50 billion or greater, and whose annual gross revenues or consolidated assets meet specified tests.
(Sec. 3) The bill adds "Subchapter V - Liquidation, Reorganization, or Recapitalization of a Covered Financial Corporation," setting forth requirements and prohibitions regarding: (1) commencement of a case concerning a covered financial corporation; (2) a special trustee and bridge company; (3) special transfer of the property of the estate in bankruptcy; (4) treatment of qualified financial contracts and affiliate contracts; (5) licenses, permits, and registrations; (6) exemption from securities laws; and (7) inapplicability of certain avoiding powers.
A debtor holding company may transfer the assets (including executory contracts and unexpired leases) of a covered financial corporation, including the equity in all of its operating subsidiaries, to a newly-formed bridge company over a single weekend, during which a 48-hour stay of debt-collection proceedings (except payment and delivery obligations) shall apply.
The bill permits conversion to chapter 7 (Liquidation) of a case under subchapter V if certain conditions are met.
The Bankruptcy Court may not order an assets transfer unless it determines by a preponderance of the evidence that a transfer is necessary to prevent serious adverse effects on financial stability in the United States.
(Sec. 4) The judicial code is amended to require the Chief Justice of the United States to designate at least 10 bankruptcy judges to be available to hear a Subchapter V case in bankruptcy. Bankruptcy judges may request to be considered for such designation.