,,ii #aad? ,,congress #a/ ,session ,s4 #ahda ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #bb1 #bjae ,mr4 ,cornyn 7= himself & ,mr4 ,toomey7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ! ,judici>y ,a ,,bill ,to am5d title #aa1 ,unit$ ,/ates ,code1 to provide = ! liquidation1 reorganization1 or recapitalization ( a cov]$ f9ancial corporation1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,taxpay] ,protection & ,responsible ,resolution ,act4 #b4 ,g5]al provisions relat+ to cov]$ f9ancial corporations 7a7 ,def9ition ,section #aja ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ ! foll[+ aft] p>agraph 7#i73 7#i;,a7 ,! t]m cov]$ f9ancial corporation means any corporation incorporat$ or organiz$ "u any ,f$]al or ,/ate law1 o!r ?an a /ockbrok]1 a commodity brok]1 or an entity ( ! k9d specifi$ 9 p>agraph 7#b7 or 7#c7 ( section #aji7;b71 t is-- 7,a7 a bank hold+ company1 z def9$ 9 section #b7;a7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahda7;a772 or 7,b7 a corporation t exi/s = ! prim>y purpose ( own+1 controll+1 & f9anc+ subsidi>ies t are pr$om9antly engag$ 9 activities t ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em has det]m9$ are f9ancial 9 nature or incid5tal to su* f9ancial activity = purposes ( section #d7k7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahdc7k774 4 7b7 ,applicability ( *apt]s ,section #ajc ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subsection 7a7-- 7,a7 by /rik+ section #aafa & ins]t+ sections #aafa & #adja2 & 7,b7 by /rik+ or #ac & ins]t+ #ac1 or #ad2 7#b7 9 subsection 7g71 by ins]t+ subsection 7m7 & be=e section2 & 7#c7 by add+ at ! end ! foll[+3 7l7 ,*apt] #ad ( ?is title applies only 9 a case "u su* *apt]4 7m7 ,except z o!rwise provid$ 9 *apt] #ad ( ?is title1 *apt] #aa ( ?is title applies 9 a case "u *apt] #ad ( ?is title4 4 7c7 ,:o may be a debtor ,section #aji ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subsection 7d7-- 7,a7 by /rik+ &2 7,b7 by /rik+ or a & ins]t+ or2 & 7,c7 by ins]t+ 1 or a cov]$ f9ancial corporation aft] ,f$]al ,deposit ,insurance ,corporation ,improvem5t ,act ( #aiia2 & 7#b7 by add+ at ! end ! foll[+3 7i7 ,only a cov]$ f9ancial corporation may be a debtor 9 a case "u *apt] #ad4 4 7d7 ,di/ribution ( prop]ty ( ! e/ate ,section #gbf7;a77#a7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ 9 paym5t ( any unpaid fees1 co/s1 & exp5ses ( a special tru/ee appo9t$ "u section #adjf1 & !n aft] fir/14 7e7 ,confirmation ( plan ,section #aabi7;a7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7#ag7 ,9 a case "u *apt] #ad1 all payable fees1 co/s1 & exp5ses ( ! special tru/ee h be5 paid or ! plan provides = ! paym5t ( all su* fees1 co/s1 & exp5ses1 z ( ! effective date ( ! plan4 7#ah7 ,9 a case "u *apt] #ad1 confirmation ( ! plan is n likely to cause s]i\s adv]se effects on f9ancial /ability 9 ! ,unit$ ,/ates4 4 7f7 ,qualification ( tru/ee ,section #cbb7;b77#b7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by /rik+ ,! & ins]t+ ,9 cases "u *apt] #ad1 ! ,unit$ ,/ates tru/ee %all recomm5d to ! c\rt1 & 9 all o!r cases1 !4 #c4 ,liquidation1 reorganization1 or recapitalization ( a cov]$ f9ancial corporation 7a7 ,9 g5]al ,title #aa1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ be=e *apt] #ae ! foll[+3 #ad ,liquidation1 reorganization1 or recapitalization ( a cov]$ f9ancial corporation ,sec4 #adja4 ,inapplicability ( o!r sections4 #adjb4 ,def9itions = ?is *apt]4 #adjc4 ,comm5cem5t ( a case conc]n+ a cov]$ f9ancial corporation4 #adjd4 ,regulators4 #adje4 ,special transf] ( prop]ty ( ! e/ate4 #adjf4 ,special tru/ee4 #adjg4 ,automatic /ay2 assum$ debt4 #adjh4 ,treatm5t ( qualifi$ f9ancial contracts & affiliate contracts4 #adji4 ,lic5ses1 p]mits1 & regi/rations4#adaj4 ,conv]sion to *apt] #g4 #adaa4 ,exemption f securities laws4 #adab4 ,inapplicability ( c]ta9 avoid+ p[]s4 #adac4 ,consid]ation ( f9ancial /ability4 #adja4 ,inapplicability ( o!r sections ,sections #cjc & #cba7;c7 d n apply 9 a case "u ?is *apt]4 #adjb4 ,def9itions = ?is *apt] ,9 ?is *apt]1 ! foll[+ def9itions %all apply3 7#a7 ,! t]m ,bo>d means ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em4 7#b7 ,! t]m bridge company means a newly =m$ corporation to :i* prop]ty ( ! e/ate may be transf]r$ "u section #adje7;a7 & ! equity securities ( :i* may be transf]r$ to a special tru/ee "u section #adjf7;a74 7#c7 ,! t]m capital /ructure debt means all unsecur$ debt ( ! debtor = borr[$ money = :i* ! debtor is ! prim>y obligor1 o!r ?an a qualifi$ f9ancial contract & o!r ?an debt secur$ by a li5 on prop]ty ( ! e/ate t is to be transf]r$ to a bridge company pursuant to an ord] ( ! c\rt "u section #adje7;a74 7#d7 ,! t]m contractual "r means a contractual "r ( a k9d describ$ 9 section #eee1 #eef1 #eei1 #efj1 or #efa4 7#e7 ,! t]m qualifi$ f9ancial contract means any contract ( a k9d def9$ 9 p>agraph 7#be71 7#ch;,a71 7#dg71 or 7#ec;,b7 ( section #aja1 section #gda7g71 or p>agraph 7#d71 7#e71 7#aa71 or 7#ac7 ( section #gfa4 7#f7 ,! t]m special tru/ee means a tru/ee appo9t$ "u section #adjf7;a77#b77;,a74 7#g7 ,! t]m tru/ee means a p]son :o is-- 7,a7 appo9t$ or elect$ "u section #aajd2 & 7,b7 qualifi$ "u section #cbb to s]ve z tru/ee 9 ! case or1 9 ! abs5ce ( su* p]son1 ! debtor 9 possession4 #adjc4 ,comm5cem5t ( a case conc]n+ a cov]$ f9ancial corporation 7a7 ,9 g5]al ,a case "u ?is *apt] may be comm5c$ by ! fil+ ( a petition ) ! c\rt by an entity t may be a debtor "u section #cja if ! entity /ates to ! be/ ( its k1 "u p5alty ( p]jury1 9 ! petition t ! entity is a cov]$ f9ancial corporation4 7b7 ,ord] = relief ,! comm5cem5t ( a case "u subsection 7a7 con/itutes an ord] = relief "u ?is *apt]4 7c7 ,liability ,! memb]s ( ! bo>d ( directors 7or body p]=m+ simil> functions7 ( a cov]$ f9ancial corporation %all n be liable to %>ehold]s1 cr$itors or o!r p>ties 9 int]e/ =-- 7#a7 a good fai? fil+ ( a case "u ?is *apt]2 or 7#b7 = any reasonable action tak51 be=e or aft] ! date on :i* a case is comm5c$ "u ?is *apt]1 9 good fai? 9 contemplation ( or 9 connection ) su* a fil+ or a transf] "u section #adje or section #adjf4 7d7 ,notice to c\rt ,c\nsel to ! entity t may be a debtor %all provide1 to ! greate/ ext5t practicable1 suffici5t confid5tial notice to ! ,director ( ! ,adm9i/rative ,(fice ( ! ,unit$ ,/ates ,c\rts & ! *ief judge ( ! c\rt ( appeals embrac+ ! di/rict 9 :i* ! case is p5d+ reg>d+ ! pot5tial comm5cem5t ( a case "u ?is *apt] )\t disclos+ ! id5tity ( ! pot5tial debtor to all[ ! ,director & *ief judge to designate & ensure ! ready availability ( #a ( ! bankruptcy judges designat$ "u section #bih7;b77#a7 ( title #bh to be available to preside ov] ! case4 #adjd4 ,regulators ,! ,bo>d1 ! ,securities & ,ex*ange ,commission1 ! ,comptroll] ( ! ,curr5cy1 & ! ,f$]al ,deposit ,insurance ,corporation may raise & may appe> & be he>d on any issue 9 any case or proce$+ "u ?is *apt]4 #adje4 ,special transf] ( prop]ty ( ! e/ate 7a7 ,9 g5]al 7#a7 ,transf] ,on reque/ ( ! tru/ee1 & aft] notice & he>+ n less ?an #bd h\rs aft] ! ord] = relief1 ! c\rt may ord] a transf] "u ?is section ( prop]ty ( ! e/ate1 & ! assignm5t ( debt1 executory contracts1 unexpir$ leases1 qualifi$ f9ancial contracts1 & agreem5ts ( ! debtor1 to a bridge company4 ,except z provid$ "u ?is section1 ! provisions ( sections #cfc & #cfe %all apply to a transf] & assignm5t "u ?is section4 7#b7 ,prop]ty ( e/ate ,^u ! entry ( an ord] approv+ a transf] "u ?is section1 any prop]ty transf]r$1 & any debt1 executory contract1 unexpir$ leases1 qualifi$ f9ancial contract1 or agreem5t assign$ "u su* ord] %all no long] be prop]ty ( ! e/ate4 7b7 ,notice ,unless ! c\rt ord]s o!rwise1 notice ( a reque/ = an ord] "u subsection 7a7 %all consi/ ( electronic or telephonic notice ( n less ?an #bd h\rs to-- 7#a7 ! hold]s ( ! #bj l>ge/ secur$ claims aga9/ ! debtor2 7#b7 ! hold]s ( ! #bj l>ge/ unsecur$ claims aga9/ ! debtor2 7#c7 c\nt]p>ties to any debt1 executory contract1 unexpir$ lease1 qualifi$ f9ancial contract1 or agreem5t reque/$ to be transf]r$ "u ?is section2 7#d7 ! ,bo>d2 7#e7 ! ,f$]al ,deposit ,insurance ,corporation2 7#f7 ! ,secret>y ( ! ,treasury2 7#g7 ! ,comptroll] ( ! ,curr5cy2 7#h7 ! ,securities & ,ex*ange ,commission2 7#i7 ! ,unit$ ,/ates tru/ee or bankruptcy adm9i/rator2 & 7#aj7 ea* prim>y f9ancial regulatory ag5cy 7z def9$ 9 section #b7ab7 ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecja7ab777 ) respect to any affiliate ! equity securities ( :i* are propos$ to be transf]r$ "u ?is section4 7c7 ,det]m9ation ,! c\rt may n ord] a transf] "u ?is section unless ! c\rt det]m9es1 bas$ ^u a prepond]ance ( ! evid5ce1 t-- 7#a7 ! transf] "u ?is section is necess>y to prev5t s]i\s adv]se effects on f9ancial /ability 9 ! ,unit$ ,/ates2 7#b7 ! transf] does n provide = ! assumption ( any capital /ructure debt by ! bridge company2 7#c7 ! transf] does n provide = ! transf] to ! bridge company ( any prop]ty ( ! e/ate t is subject to a li5 secur+ a debt1 executory contract1 unexpir$ lease1 or agreem5t ( ! debtor unless-- 7,a7 7i7 ! bridge company assumes su* debt1 executory contract1 unexpir$ lease1 or agreem5t1 includ+ any claims aris+ 9 respect !re( t w\ld n be all[$ secur$ claims "u section #ejf7;a77#a71 & aft] giv+ effect to su* transf]1 su* prop]ty rema9s subject to ! li5 secur+ su* debt1 executory contract1 unexpir$ lease1 or agreem5t2 & 7ii7 ! c\rt has det]m9$ t assumption ( su* debt1 executory contract1 unexpir$ lease1 or agreem5t by ! bridge company is 9 ! be/ int]e/ ( ! e/ate2 or 7,b7 su* prop]ty is be+ transf]r$ to ! bridge company 9 accordance ) ! provisions ( section #cfc2 7#d7 ! transf] does n provide = ! assumption by ! bridge company ( any debt1 executory contract1 unexpir$ lease1 or agreem5t ( ! debtor secur$ by a li5 on prop]ty 9 :i* ! e/ate has an int]e/ unless ! transf] provides = su* prop]ty to be transf]r$ to ! bridge company 9 accordance ) p>agraph 7#c77;,a7 ( ?is subsection2 7#e7 ! transf] does n provide = ! transf] ( ! equity ( ! debtor2 7#f7 ! debtor has demon/rat$ t ! bridge company is n likely to fail to meet ! obligations ( any debt1 executory contract1 qualifi$ f9ancial contract1 unexpir$ lease1 or o!r agreem5t assum$ & assign$ to ! bridge company2 7#g7 ! transf] provides = ! transf] to a special tru/ee all ( ! equity securities 9 ! bridge company & appo9tm5t ( a special tru/ee 9 accordance ) section #adjf2 7#h7 aft] giv+ effect to ! transf]1 adequate provision has be5 made = ! paym5t ( ! fees1 co/s1 & exp5ses ( ! e/ate & special tru/ee2 & 7#i7 ! bridge company w h gov]n+ docum5ts1 & initial directors & s5ior (fic]s1 t are 9 ! be/ int]e/ ( cr$itors & ! e/ate4 7d7 ,requirem5ts be=e transf] ,imm$iately be=e a transf] "u ?is section1 ! bridge company t is ! recipi5t ( ! transf] %all-- 7#a7 n h any prop]ty1 debts1 executory contracts1 unexpir$ leases1 qualifi$ f9ancial contracts1 or agreem5ts1 o!r ?an any prop]ty acquir$ or debts1 executory contracts1 unexpir$ leases1 qualifi$ f9ancial contracts1 or agreem5ts assum$ :5 act+ z a transf]ee ( a transf] "u ?is section2 & 7#b7 h equity securities t are prop]ty ( ! e/ate1 :i* may be sold or di/ribut$ 9 accordance ) ?is title4 #adjf4 ,special tru/ee 7a7 ,9 g5]al 7#a7 ,transf] to special tru/ee ,an ord] approv+ a transf] "u section #adje %all require ! tru/ee to transf] to a special tru/ee all ( ! equity securities 9 ! bridge company t is ! recipi5t ( a transf] "u section #adje to hold 9 tru/ = ! sole b5efit ( ! e/ate subject to satisfaction ( ! special tru/ee's fees1 co/s1 & exp5ses4 ,! tru/ ( :i* ! special tru/ee is ! tru/ee %all be a newly =m$ tru/ gov]n$ by a tru/ agreem5t approv$ by ! c\rt z 9 ! be/ int]e/s ( ! e/ate1 & %all exi/ = ! sole purpose ( hold+ & adm9i/]+1 & %all be p]mitt$ to dispose (1 ! equity securities ( ! bridge company 9 accordance ) ! tru/ agreem5t4 7#b7 ,appo9tm5t ( special tru/ee 7,a7 ,9 g5]al ,a special tru/ee %all be qualifi$ & indep5d5t & %all be appo9t$ by ! c\rt4 7,b7 ,proposal by tru/ee ,9 connection ) ! he>+ to approve a transf] "u section #adje1 ! tru/ee may propose to ! c\rt a p]son to s]ve z special tru/ee1 if ! tru/ee confirms to ! c\rt t ! ,bo>d has be5 consult$ reg>d+ ! id5tity ( ! propos$ special tru/ee & advises ! c\rt ( ! results ( su* consultation4 7b7 ,tru/ agreem5t ,! tru/ agreem5t gov]n+ a tru/ =m$ "u subsection 7a77#a7 %all provide-- 7#a7 = ! paym5t ( ! fees1 co/s1 exp5ses1 & indemnities ( ! special tru/ee f ! assets ( ! debtor's e/ate2 7#b7 t ! special tru/ee provide-- 7,a7 qu>t]ly report+ to ! e/ate1 :i* %all be fil$ ) ! c\rt2 & 7,b7 in=mation ab\t ! bridge company reasonably reque/$ by a p>ty 9 int]e/ to prep>e a disclosure /atem5t = a plan provid+ = di/ribution ( any securities ( ! bridge company if su* in=mation is necess>y to prep>e su* disclosure /atem5t2 7#c7 t = z long z ! equity securities ( ! bridge company are held by ! tru/1 ! special tru/ee %all file a notice ) ! c\rt 9 connection )-- 7,a7 any *ange 9 a director or s5ior (fic] ( ! bridge company2 7,b7 any modification to ! gov]n+ docum5ts ( ! bridge company2 or 7,c7 any mat]ial corporate action ( ! bridge company1 includ+-- 7i7 recapitalization2 7ii7 a mat]ial borr[+2 7iii7 t]m9ation ( an int]company debt or gu>antee2 7iv7 a transf] ( a sub/antial portion ( ! assets ( ! bridge company2 or 7v7 ! issuance or sale ( any securities ( ! bridge company2 7#d7 t any sale ( any equity securities ( ! bridge company %all n be consummat$ until ! special tru/ee consults ) ! ,f$]al ,deposit ,insurance ,corporation & ! ,bo>d reg>d+ su* sale & discloses ! results ( su* consultation ) ! c\rt2 7#e7 t1 subject to res]ves = paym5ts p]mitt$ "u p>agraph 7#a7 provid$ = 9 ! tru/ agreem5t1 ! proce$s ( ! sale ( any equity securities ( ! bridge company by ! special tru/ee be held 9 tru/ = ! b5efit ( or transf]r$ to ! e/ate2 7#f7 ! process & guidel9es = ! replacem5t ( ! special tru/ee2 & 7#g7 t ! prop]ty held 9 tru/ by ! special tru/ee is subject to di/ribution 9 accordance ) subsection 7c74 7c7 ,di/ribution ( assets held 9 tru/ 7#a7 ,9 g5]al ,! special tru/ee %all di/ribute ! assets held 9 tru/-- 7,a7 if ! c\rt confirms a plan 9 ! case1 9 accordance ) ! plan on ! effective date ( ! plan2 or 7,b7 if ! case is conv]t$ to a case "u *apt] #g "u section #adaj4 7#b7 ,t]m9ation ,z soon z practicable aft] a f9al di/ribution "u p>agraph 7#a71 ! (fice ( ! special tru/ee %all t]m9ate1 except z may be necess>y to w9d up & conclude ! bus9ess & f9ancial affairs ( ! tru/4 7d7 ,applicability ,aft] a transf] to ! special tru/ee "u ?is section1 ! special tru/ee %all be subject only to applicable nonbankruptcy law1 & ! actions & conduct ( ! special tru/ee %all no long] be subject to approval by ! c\rt 9 ! case "u ?is *apt]4 #adjg4 ,automatic /ay2 assumption 7a7 ,automatic /ay 7#a7 ,9 g5]al ,a petition fil$ "u section #adjc op]ates z a /ay1 applicable to all entities1 ( ! accel]ation1 t]m9ation1 or modification ( any debt1 contract1 lease1 or agreem5t ( ! k9d describ$ 9 p>agraph 7#b71 or ( any "r or obligation "u any su* debt1 contract1 lease1 or agreem5t1 solely because (-- 7,a7 a default by ! debtor "u any su* debt1 contract1 lease1 or agreem5t2 or 7,b7 a provision 9 su* debt1 contract1 lease1 or agreem5t1 or 9 applicable nonbankruptcy law1 t is condition$ on-- 7i7 ! insolv5cy or f9ancial condition ( ! debtor at any "t be=e ! clos+ ( ! case2 7ii7 ! comm5cem5t ( a case "u ?is title conc]n+ ! debtor2 7iii7 ! appo9tm5t ( or tak+ possession by a tru/ee 9 a case "u ?is title conc]n+ ! debtor or by a cu/odian be=e ! comm5cem5t ( ! case2 or 7iv7 a cr$it rat+ ag5cy rat+1 or abs5ce or )drawal ( a cr$it rat+ ag5cy rat+ (-- 7,i7 ! debtor at any "t aft] ! comm5cem5t ( ! case2 7,,ii7 an affiliate dur+ ! #dh h\rs aft] ! comm5cem5t ( ! case2 7,,iii7 ! bridge company :ile ! tru/ee or ! special tru/ee is a direct or indirect b5eficial hold] ( m ?an #ej p]c5t ( ! equity securities (-- 7aa7 ! bridge company2 or 7bb7 an affiliate1 if all ( ! direct or indirect int]e/s 9 ! affiliate t are prop]ty ( ! e/ate are transf]r$ "u section #adjf2 or 7,,iv7 an affiliate :ile ! tru/ee or ! special tru/ee is a direct or indirect b5eficial hold] ( m ?an #ej p]c5t ( ! equity securities (-- 7aa7 ! bridge company2 or 7bb7 ! affiliate1 if all ( ! direct or indirect int]e/s 9 ! affiliate t are prop]ty ( ! e/ate are transf]r$ "u section #adje4 7#b7 ,debt1 contract1 lease1 or agreem5t ,a debt1 contract1 lease1 or agreem5t describ$ 9 ?is p>agraph-- 7,a7 is-- 7i7 any debt1 executory contract1 or unexpir$ lease ( ! debtor2 7ii7 any agreem5t "u :i* ! debtor issu$ or is obligat$ = debt2 7iii7 any debt1 executory contract1 or unexpir$ lease ( an affiliate2 & 7iv7 any agreem5t "u :i* an affiliate issu$ or is obligat$ = debt2 & 7,b7 does n include capital /ructure debt or qualifi$ f9ancial contracts4 7#c7 ,t]m9ation ( /ay ,a /ay "u ?is subsection t]m9ates-- 7,a7 z to ! debtor1 ^u ! e>lie/ (-- 7i7 #dh h\rs aft] ! comm5cem5t ( ! case2 7ii7 assumption ( ! debt1 contract1 lease1 or agreem5t by ! bridge company "u an ord] au?oriz+ a transf] "u section #adje2 7iii7 a f9al ord] ( ! c\rt d5y+ ! reque/ = a transf] ( ! debt1 contract1 lease1 or agreem5t "u section #adje2 or 7iv7 ! "t ! case is dismiss$2 & 7,b7 z to an affiliate1 ^u ! e>lie/ (-- 7i7 #dh h\rs aft] ! comm5cem5t ( ! case1 if ! c\rt has n ord]$ a transf] "u section #adje2 7ii7 ! entry ( an ord] au?oriz+ a transf] "u section #adje 9 :i* ! direct or indirect int]e/s 9 ! affiliate t are prop]ty ( ! e/ate are n transf]r$ "u section #adje2 7iii7 a f9al ord] ( ! c\rt d5y+ ! reque/ = a transf] "u section #adje2 or 7iv7 ! "t ! case is dismiss$4 7#d7 ,applicability ,sections 7d71 7e71 7f71 & 7g7 ( section #cfb apply to a /ay "u ?is subsection4 7b7 ,assumption by bridge company ,a debt1 executory contract1 unexpir$ lease ( ! debtor1 or any o!r agreem5t describ$ 9 subsection 7a77#b71 may be assum$ by a bridge company 9 a transf] "u section #adje not)/&+ any provision 9 an agreem5t or 9 applicable nonbankruptcy law t-- 7#a7 prohibits1 re/ricts1 or conditions ! assignm5t ( ! debt1 contract1 lease1 or agreem5t2 or 7#b7 accel]ates1 t]m9ates1 or modifies1 or p]mits a p>ty o!r ?an ! debtor to accel]ate1 t]m9ate1 or modify1 ! debt1 contract1 lease1 or agreem5t on acc\nt (-- 7,a7 ! assignm5t ( ! debt1 contract1 lease1 or agreem5t2 or 7,b7 a *ange 9 control ( any p>ty to ! debt1 contract1 lease1 or agreem5t4 7c7 ,no accel]ation1 t]m9ation1 or modification ( agreem5ts ( debtor 7#a7 ,9 g5]al ,a debt1 contract1 lease1 or agreem5t ( ! k9d describ$ 9 subsection 7a77#b7 may n be accel]at$1 t]m9at$1 or modifi$1 & any "r or obligation "u su* debt1 contract1 lease1 or agreem5t may n be accel]at$1 t]m9at$1 or modifi$1 z to ! bridge company solely because ( a provision 9 ! debt1 contract1 lease1 or agreem5t or 9 applicable nonbankruptcy law-- 7,a7 ( ! k9d describ$ 9 subsection 7a77#a77;,b7 z appli$ to ! debtor2 7,b7 t prohibits1 re/ricts1 or conditions ! assignm5t ( ! debt1 contract1 lease1 or agreem5t2 or 7,c7 t accel]ates1 t]m9ates1 or modifies1 or p]mits a p>ty o!r ?an ! debtor to accel]ate1 t]m9ate1 or modify1 ! debt1 contract1 lease or agreem5t1 on acc\nt (-- 7i7 ! assignm5t ( ! debt1 contract1 lease1 or agreem5t2 or 7ii7 a *ange 9 control ( any p>ty to ! debt1 contract1 lease1 or agreem5t4 7#b7 ,default ,if !re has be5 a default by ! debtor "u a provision o!r ?an ! k9d describ$ 9 p>agraph 7#a7 9 a debt1 contract1 lease1 or agreem5t ( ! k9d describ$ 9 subsection 7a77#b71 ! bridge company may assume su* debt1 contract1 lease1 or agreem5t only if ! bridge company-- 7,a7 cures1 or provides adequate assurance 9 connection ) a transf] "u section #adje t ! bridge company w promptly cure1 ! default2 7,b7 comp5sates1 or provides adequate assurance 9 connection ) a transf] "u section #adje t ! bridge company w promptly comp5sate1 a p>ty o!r ?an ! debtor to ! debt1 contract1 lease1 or agreem5t1 = any actual pecuni>y loss to ! p>ty result+ f ! default2 & 7,c7 provides adequate assurance 9 connection ) a transf] "u section #adje ( future p]=mance "u ! debt1 contract1 lease1 or agreem5t1 z det]m9$ by ! c\rt "u section #adje7;c77#d74 #adjh4 ,treatm5t ( qualifi$ f9ancial contracts & affiliate contracts 7a7 ,9 g5]al ,not)/&+ sections #cfb7;b77#f71 #cfb7;b77#g71 #cfb7;b77#ag71 #cfb7;b77#bg71 #cfb7o71 #eee1 #eef1 #eei1 #efj1 & #efa1 a petition fil$ "u section #adjc op]ates z a /ay1 dur+ ! p]iod specifi$ 9 section #adjg7;a77#c77;,a71 applicable to all entities1 ( ! ex]cise ( a contractual "r-- 7#a7 to cause ! accel]ation1 t]m9ation1 modification1 or liquidation ( a qualifi$ f9ancial contract ( ! debtor or an affiliate2 7#b7 to (fset or net out any t]m9ation value1 paym5t am\nt1 or o!r transf] obligation aris+ "u or 9 connection ) a qualifi$ f9ancial contract ( ! debtor or an affiliate2 or 7#c7 "u any security agreem5t or arrangem5t or o!r cr$it enhancem5t =m+ a "p ( or relat$ to a qualifi$ f9ancial contract ( ! debtor or an affiliate4 7b7 ,paym5t & deliv]y obligations 7#a7 ,9 g5]al ,dur+ ! p]iod specifi$ 9 section #adjg7;a77#c77;,a71 ! tru/ee or ! affiliate %all p]=m all paym5t & deliv]y obligations "u a qualifi$ f9ancial contract ( ! debtor or ! affiliate1 z ! case may be1 t become due aft] ! comm5cem5t ( ! case4 ,! /ay provid$ "u subsection 7a7 t]m9ates z to a qualifi$ f9ancial contract ( ! debtor or an affiliate imm$iately ^u ! failure ( ! tru/ee or ! affiliate1 z ! case may be1 to p]=m any su* obligation dur+ su* p]iod4 7#b7 ,failure to p]=m ,any failure by a c\nt]p>ty to any qualifi$ f9ancial contract ( ! debtor or any affiliate to p]=m any paym5t or deliv]y obligation "u su* qualifi$ f9ancial contract1 includ+ dur+ ! p5d5cy ( ! /ay provid$ "u subsection 7a71 %all con/itute a brea* ( su* qualifi$ f9ancial contract by ! c\nt]p>ty4 7c7 ,assignm5t or assumption ,not)/&+ any provision ( subsection #adjg7;b7 or applicable nonbankruptcy law1 subject to ! c\rt's approval1 a qualifi$ f9ancial contract betwe5 an entity & ! debtor may be assign$ to or assum$ by ! bridge company 9 a transf] "u section #adje only if-- 7#a7 all qualifi$ f9ancial contracts betwe5 ! entity & ! debtor are assign$ to & assum$ by ! bridge company 9 ! transf] "u section #adje2 7#b7 all claims ( ! entity aga9/ ! debtor "u any qualifi$ f9ancial contract betwe5 ! entity & ! debtor 7o!r ?an any claim t1 "u ! t]ms ( ! qualifi$ f9ancial contract1 is subord9at$ to ! claims ( g5]al unsecur$ cr$itors7 are assign$ to & assum$ by ! bridge company2 7#c7 all claims ( ! debtor aga9/ ! entity "u any qualifi$ f9ancial contract betwe5 ! entity & ! debtor are assign$ to & assum$ by ! bridge company2 & 7#d7 all prop]ty secur+ or any o!r cr$it enhancem5t furni%$ by ! debtor = any qualifi$ f9ancial contract describ$ 9 p>agraph 7#a7 or any claim describ$ 9 p>agraph 7#b7 or 7#c7 "u any qualifi$ f9ancial contract betwe5 ! entity & ! debtor is assign$ to & assum$ by ! bridge company4 7d7 ,no accel]ation1 t]m9ation1 or modification ( qualifi$ f9ancial contracts ,not)/&+ any provision ( a qualifi$ f9ancial contract or ( applicable nonbankruptcy law1 a qualifi$ f9ancial contract ( ! debtor t is assum$ by or assign$ to ! bridge company 9 a transf] "u section #adje may n be accel]at$1 t]m9at$1 modifi$1 or liquidat$ aft] ! entry ( ! ord] approv+ a transf] "u section #adje1 & any "r or obligation "u ! qualifi$ f9ancial contract may n be accel]at$1 t]m9at$1 or modifi$1 aft] ! entry ( ! ord] approv+ a transf] "u section #adje solely because ( a provision ( ! k9d describ$ 9 section #adjg7;c77#a71 o!r ?an a provision ( ! k9d describ$ 9 section #adjg7;b7 t occurs aft] prop]ty ( ! e/ate no long] includes a direct b5eficial int]e/ or an indirect b5eficial int]e/ ?r\gh ! special tru/ee1 9 m ?an #ej p]c5t ( ! equity securities ( ! bridge company4 7e7 ,no accel]ation1 t]m9ation1 modification1 or liquidation ( agreem5ts ( affiliates ,not)/&+ any provision 9 any agreem5t or 9 applicable nonbankruptcy law1 an agreem5t 7includ+ an executory contract1 unexpir$ lease1 qualifi$ f9ancial contract1 or an agreem5t "u :i* ! affiliate issu$ or is obligat$ = debt7 ( an affiliate t is assum$ by or assign$ to ! bridge company 9 a transf] "u section #adje1 & any "r or obligation "u su* agreem5t1 may n be accel]at$1 t]m9at$1 modifi$1 or liquidat$ aft] ! entry ( ! ord] approv+ a transf] "u section #adje solely because ( a provision ( ! k9d describ$ 9 section #adjg7;c77#a71 o!r ?an a provision ( ! k9d describ$ 9 section #adjg7;b7 t occurs aft] ! bridge company is no long] a direct or indirect b5eficial hold] ( m ?an #ej p]c5t ( ! equity securities ( ! affiliate at any "t aft] ! comm5cem5t ( ! case if-- 7#a7 all direct or indirect int]e/s 9 ! affiliate t are prop]ty ( ! e/ate are transf]r$ "u section #adje to ! bridge company )9 ! p]iod specifi$ 9 subsection 7a72 7#b7 ! bridge company assumes-- 7,a7 any gu>antee or o!r cr$it enhancem5t issu$ by ! debtor relat+ to ! agreem5t ( ! affiliate2 & 7,b7 any "r ( set(f1 nett+ arrangem5t1 or debt ( ! debtor t directly arises out ( or directly relates to ! gu>antee or cr$it enhancem5t2 & 7#c7 any prop]ty ( ! e/ate t directly s]ves z collat]al = ! gu>antee or cr$it enhancem5t is transf]r$ to ! bridge company4 #adji4 ,lic5ses1 p]mits1 & regi/rations 7a7 ,9 g5]al ,not)/&+ any o!rwise applicable nonbankruptcy law1 if a reque/ is made "u section #adje = a transf] ( prop]ty ( ! e/ate1 any ,f$]al1 ,/ate1 or local lic5se1 p]mit1 or regi/ration t ! debtor or an affiliate _h imm$iately be=e ! comm5cem5t ( ! case & t is propos$ to be transf]r$ "u section #adje may n be accel]at$1 t]m9at$1 or modifi$ at any "t aft] ! reque/ solely on acc\nt (-- 7#a7 ! insolv5cy or f9ancial condition ( ! debtor at any "t be=e ! clos+ ( ! case2 7#b7 ! comm5cem5t ( a case "u ?is title conc]n+ ! debtor2 7#c7 ! appo9tm5t ( or tak+ possession by a tru/ee 9 a case "u ?is title conc]n+ ! debtor or by a cu/odian be=e ! comm5cem5t ( ! case2 or 7#d7 a transf] "u section #adje4 7b7 ,validity ( c]ta9 lic5ses1 p]mits1 & regi/rations ,not)/&+ any o!rwise applicable nonbankruptcy law1 any ,f$]al1 ,/ate1 or local lic5se1 p]mit1 or regi/ration t ! debtor _h imm$iately be=e ! comm5cem5t ( ! case t is includ$ 9 a transf] "u section #adje %all be valid & all rights & obligations !reund] %all ve/ 9 ! bridge company4 #adaj4 ,conv]sion to *apt] #g ,not)/&+ section #aji7;b71 a c\rt may conv]t a case "u ?is *apt] to a case "u *apt] #g if-- 7#a7 a transf] describ$ 9 section #adje has tak5 place2 7#b7 ! c\rt has ord]$ ! appo9tm5t ( a special tru/ee "u section #adjf2 & 7#c7 ! c\rt f9ds1 aft] provid+ notice & conduct+ a he>+1 t ! conv]sion ( ! case is 9 ! be/ int]e/s ( ! cr$itors & ! e/ate4 #adaa4 ,exemption f securities laws ,= purposes ( section #aade1 a security ( ! bridge company %all be deem$ to be a security ( a successor to ! debtor "u a plan if ! c\rt approves ! disclosure /atem5t = ! plan z provid+ adequate in=mation 7z def9$ 9 section #aabe7;a77 ab\t ! bridge company & ! security4 #adab4 ,inapplicability ( c]ta9 avoid+ p[]s ,a transf] made or an obligation incurr$ by ! debtor to an affiliate prior to or aft] ! comm5cem5t ( ! case1 includ+ any obligation releas$ by ! debtor or ! e/ate to or = ! b5efit ( an affiliate1 9 contemplation ( or 9 connection ) a transf] "u section #adje1 is n avoidable "u section #edd1 #edg1 #edh7;a77#a77;,b71 or #edi1 or "u any simil> nonbankruptcy law4 #adac4 ,consid]ation ( f9ancial /ability ,! c\rt may consid] ! effect t any decision 9 connection ) ?is *apt] may h on f9ancial /ability 9 ! ,unit$ ,/ates4 4 7b7 ,te*nical & con=m+ am5dm5t ,! table ( *apt]s = title #aa1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ aft] ! item relat+ to *apt] #ac ! foll[+3 #ad4 ,liquidation1 reorganization1 or recapitalization ( a cov]$ f9ancial corporation#adja 4 #d4 ,am5dm5ts to title #bh1 ,unit$ ,/ates ,code 7a7 ,am5dm5t to *apt] #ac ,*apt] #ac ( title #bh1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 #bih4 ,judge = a case "u *apt] #ad ( title #aa 7a7 ,not)/&+ section #bie1 ! ,*ief ,ju/ice ( ! ,unit$ ,/ates %all designate n few] ?an #aj bankruptcy judges to be available to he> a case "u *apt] #ad ( title #aa4 ,bankruptcy judges may reque/ to be consid]$ by ! ,*ief ,ju/ice ( ! ,unit$ ,/ates = su* designation4 7b7 7#a7 ,not)/&+ section #aee1 a case "u *apt] #ad ( title #aa %all be he>d "u section #aeg by a bankruptcy judge designat$ "u subsection 7a71 :o %all be assign$ to he> su* case by ! *ief judge ( ! c\rt ( appeals = ! circuit embrac+ ! di/rict 9 :i* ! case is p5d+4 7#b7 ,if ! bankruptcy judge assign$ to he> a case "u p>agraph 7#a7 is n assign$ to ! di/rict 9 :i* ! case is p5d+1 ! bankruptcy judge %all be tempor>ily assign$ to ! di/rict4 ,to ! greate/ ext5t practicable1 ! approvals requir$ "u section #aee7;a7 %all be obta9$4 7c7 ,a case "u *apt] #ad ( title #aa1 & all proce$+s 9 ! case1 %all take place 9 ! di/rict 9 :i* ! case is p5d+4 4 7b7 ,am5dm5t to section #accd ,section #accd ( title #bh1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7f7 ,?is section does n grant jurisdiction to ! di/rict c\rt aft] a transf] pursuant to an ord] "u section #adje ( title #aa ( any proce$+ relat$ to a special tru/ee appo9t$1 or to a bridge company =m$ to accompli% a transf]1 "u section #adje ( title #aa4 4 7c7 ,te*nical & con=m+ am5dm5t ,! table ( sections = *apt] #ac ( title #bh1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 #bih4 ,judge = a case "u *apt] #ad ( title #aa4 4 #e4 ,limitation on use ( ,f$]al funds ,not)/&+ any o!r provision ( law1 no funds appropriat$ to ! ,f$]al ,gov]nm5t may be paid to a cov]$ f9ancial corporation 7z def9$ 9 section #aja7i;,a7 ( title #aa1 ,unit$ ,/ates ,code1 z am5d$ by section #b7;a7 ( ?is ,act71 or to a cr$itor ( any cov]$ f9ancial corporation1 to satisfy a claim 9 a case "u *apt] #ad ( title #aa1 ,unit$ ,/ates ,code4