/* The U.S.Bankruptcy Code is a monumental work; in 1981 a new, more flexible bankruptcy system replaced the 1930's era Bankruptcy Act. However, the bankruptcy code is truly a code-- that is words and symbols that have a hidden meaning. Section 101 is vital to the understanding and intelligent use of the Code. If any word, which is defined in Section 101 is used later in the code, it does not have its dictionary or common meaning-- it has the meaning provided in section 101. Therefore, frequent cross-reference is necessary.

Due to its length we have split the code in subsections. This part contains Chapter 1 of the code. */

BANKRUPTCY CODE

CHAPTER I - General Provisions

SECTION 101 (11 U.S.C. 101)

101.	Definitions. In this title-

(1)	"accountant" means accountant authorized under applicable law to practice public accounting, and includes professional accounting association, corporation, or Partnership, if so authorized;

(2)	"affiliate" means-

(A)	entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities

(i)	in a fiduciary or agency capacity without sole discretionary power to vote such securities; or

(ii)	solely to secure a debt, if such entity has not in fact exercised such power to vote;

(B)	corporation 20 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the debtor, or by an entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities

(i)	in a fiduciary or agency capacity without sole discretionary power to vote such securities; or

(ii)	solely to secure a debt, if such entity has not in fact exercised such power to vote;

(C)	person whose business is operated under a lease or operating agreement by a debtor, or person substantially all of whose property is operated under an operating agreement with the debtor; or

(I)) entity that operates the business or substantially all of the property of the debtor under a lease or operating agreement;

3) "Federal depository institutions regulatory agency" means-

(A)	with respect to an insured depository institution (as defined in section 3(c)(2) of the Federal Deposit Insurance Act) for which no conservator or receiver has been appointed, the appropriate Federal banking agency (as defined in section 3(q) of such Act);

(B)	with respect to an insured credit union (including an insured credit union for which the National Credit Union Administration has been appointed conservator or liquidating agent), the National Credit Union Administration;

(C)	with respect to any insured depository institution for which the Resolution Trust Corporation has been appointed conservator or receiver, the Resolution Trust Corporation; and

(D)	with respect to any insured depository institution for

which the Federal Deposit Insurance Corporation has been appointed conservator or receiver, the Federal Deposit Insurance Corporation;

(4)	"attorney" means attorney, professional law

association, corporation, or partnership, authorized under

applicable law to practice law;

(5)	"claim" means-

(A)	right to payment, whether or not such right is reduced

to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured; or

(B)	right to an equitable remedy for breach of performance

if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured, or unsecured;

/* One of the most important sections of the code. The Bankruptcy Code was designed to deal with all potential and actual claims; whereas the Bankruptcy Act did not deal with contingent, or in some cases, unliquidated claims. */

(6)	"commodity broker" means futures commission merchant,

foreign futures commission merchant, clearing organization,

leverage transaction merchant, or commodity options dealer,

as defined in section 761 of this title, with respect to

which there is a customer, as defined in section 761(9) of

this title;

(7)	"community claim" means claim that arose before the

commencement of the case concerning the debtor for which

property of the kind specified in section S41(a)(2) of this

title is liable, whether or not there is any such property

at the time of the commencement of the case;

(8)	"consumer debt" means debt incurred by an individual

primarily for a personal, family, or household purpose;

(9)	"corporation"

(A)	includes-

(i)	association having a power or privilege that a private corporation, but not an individual or a partnership, possesses;

(ii)	partnership association organized under a law that

makes only the capital subscribed responsible for the debts of such association;

(iii) joint-stock company;

(iv) unincorporated company or association; or

(v)	business trust; but

(B)	does not include limited partnership;

(10)	"creditor" means-

(A)	entity that has a claim against the debtor that arose

at the time of or before the order for relief concerning the debtor;

(B)	entity that has a claim against the estate of a kind

specified in section 348(d), 502(f), 502(g), 502(h) or 502(i) of this title; or

(C)	entity that has a community claim;

(11)	custodian" means-

receiver or trustee of any of the property of the debtor, appointed in a case or proceeding not under this title;

(13)	assignee under a general assignment for the benefit of

the debtor's creditors; or

(C)	trustee, receiver, or agent under applicable law, or

under a contract, that is appointed or authorized to take charge of property of the debtor for the purpose of enforcing a lien against such property, or for the purpose of general administration of such property for the benefit of the debtor's creditors;

(12)	"debt" means liability on a claim;

/* This section of the definitions is a compound one; debt is defined in reference to the defined term of "claim". Tricky, huh? */

(13)	"debtor" means person or municipality concerning which

a case under this title has been commenced;

(14)	"disinterested person" means person that-

(A)	is not a creditor, an equity security holder, or an

insider;

/* Again a compound definition-- insider, equity security holder and creditor are all defined terms. */

(B)	is not and was not an investment banker for any

outstanding security of the debtor;

(C)	has not been, within three years before the date of the

filing of the petition, an investment banker for a security of the debtor, or an attorney for such an investment banker in connection with the offer, sale, or issuance of a security of the debtor;

(D)	is not and was not, within two years before the date of

the filing of the petition a director, officer or employee of the debtor or of an investment banker specified in subparagraph (B) or (C) of this paragraph; and

(E)	does not have an interest materially adverse to the

interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor or an investment banker specified in subparagraph (B) or (C) of

this paragraph, or for any other reason;

(15)	"entity" includes person, estate, trust, governmental

unit, and United States trustee;

/* Contrast the term entity with the term person. */

(16)	"equity security" means-

(A)	"share in a corporation, whether or not transferable or denominated stock", or similar security;

(B)	"interest of a limited partner in a limited

partnership; or warrant or right, other than a right to convert, to purchase, sell, or subscribe to a share, security, or interest of a kind specified in subparagraph (A) or (B) of this paragraph;

(17)	"equity security holder" means holder of an equity

security of the debtor;

(15)	"family farmer" means-

(A)	individual or individual and spouse engaged in a

farming operation whose aggregate debts do not exceed $1,500,000 and not less than 80 percent of whose aggregate noncontingent, liquidated debts (excluding a debt for the principal residence of such individual or such individual and spouse unless such debt arises out of a farming operation), on the date the case is filed, arise out of a farming operation owned or operated by such individual or such individual and spouse, and such individual or such individual and spouse receive from such farming operation more than 50 percent of such individual's or such individual and spouse's gross income for the taxable year preceding the taxable year in which the case concerning such individual or such individual and spouse was filed; or

(B) corporation or partnership in which more than 50 percent of the outstanding stock or equity is held by one family, or by one family and the relatives of the members of such family, and such family or such relatives conduct the farming operation, and more than 80 percent of the value of its assets consists of assets related to the farming operation;

(ii) its aggregate debts do not exceed $1,500,000 and not

less than 80 percent of its aggregate noncontingent, liquidated

debts (excluding a debt for one dwelling which is owned by such corporation or partnership and which a shareholder or partner maintains as a principal residence, unless such debt arises out of a farming operation), on the date the case is filed, arise out of the farming operation owned or operated by such corporation or such partnership; and

(iii) if such corporation issues stock, such stock is not publicly traded;

(19) "family farmer with regular annual income" means

family farmer whose annual income is sufficiently stable and

regular to enable such family farmer to make payments under a plan under chapter 12 of this title;

(20) "farmer" means (except when such term appears in the

term "family farmer") person that received more than 80

percent of such person's gross income during the taxable

year of such person immediately preceding the taxable year

of such person during which the case under this title

concerning such person was commenced from a farming

operation owned or operated by such person;

(21) "farming operation" includes farming, tillage of the

soil, dairy farming, ranching, production or raising of

crops, poultry, or livestock, and production of poultry or

livestock products in an unmanufactured state;

(22) "financial institution" means a person that is a

commercial or savings bank, industrial savings bank, savings

and loan association, or trust company and, when any such

person is acting as agent or custodian for a customer in

connection with a securities contract, as defined in section

741(7) of this title, such customer;

/* Again, you have to simultaneously read ahead and here; "person"is also defined. */

(23) "foreign proceeding" means proceeding, whether

judicial or administrative and whether or not under

bankruptcy law, in a foreign country in which the debtor's

domicile, residence, principal place of business, or

principal assets were located at the commencement of such

proceeding, for the purpose of liquidating an estate,

adjusting debts by composition, extension, or discharge, or

effecting a reorganization;

(24) "foreign representative" means duly selected trustee, administrator, or other representative of an estate in a foreign proceeding;

(25) "forward contract" means a contract (other than a

commodity contract) for the purchase, sale, or transfer of a

commodity, as defined in section 761(8) of this title, or any similar good, article, service, right, or interest which is presently or in the future becomes the subject of dealing in the forward contract trade, or product or byproduct thereof, with a maturity date more than two days after the date the contract is entered into, including, hut not limited to, a repurchase transaction, reverse repurchase transaction, consignment, lease, swap, hedge transaction, deposit. loan, option, allocated transaction, unallocated transaction, or any combination thereof or option thereon;

(26) "forward contract merchant" means a person whose

business consists in whole or in part of entering into

forward contracts as or with merchants in a commodity, as

defined in section 761(8) of this title, or any similar

good, article, service, right, or interest which is

presently or in the future becomes the subject of dealing in

the forward contract trade

(27) "governmental unit" means United States; State;

Commonwealth; District; Territory; municipality; foreign

state; department, agency, or instrumentality of the United

States (but not a United States trustee while serving as a

trustee in a case under this title), a State, a Commonwealth, a District, a Territory, a municipality, or a foreign state; or other foreign or domestic government;

(28) "indenture" means mortgage, deed of trust, or

indenture, under which there is outstanding a security,

other than a voting-trust certificate, constituting a claim

against the debtor, a claim secured by a lien on any of the

debtor's property, or an equity security of the debtor;

(29) "indenture trustee" means trustee under an indenture;

(30) "individual with regular income" means individual

whose income is sufficiently stable and regular to enable

such individual to make payments under a plan under chapter

13 of this title, other than a stockbroker or a commodity

broker;

(31) "insider" includes, if the debtor is an individual

(i) relative of the debtor or of a general partner of the

debtor;

(ii) partnership in which the debtor is a general partner;

(iii) general partner of the debtor; or

(iv) corporation of which the debtor is a director, officer,

or person in control;

(1) if the debtor is a corporation

(i) director of the debtor;

(ii) officer of the debtor;

(iii) person in control of the debtor;

/* This is one of the most fertile grounds in the code. Person in the control of the debtor can include other corporations, creditors [if they are exercising managerial control]; or blocks of shareholders. */

(iv)	partnership in which the debtor is a general partner;

(v)	general partner of the debtor; or

(vi) relative of a general partner, director, officer, or

person in control of the debtor;

(C) if the debtor is a partnership

(i) general partner in the debtor;

(ii) relative of a general partner in, general partner of,

or person in control of the debtor;

(iii) partnership in which the debtor is a general partner;

(iv) general partner of the debtor; or

(v) person in control of the debtor;

(D) if the debtor is a municipality, elected official

of the debtor or relative of an elected official of the debtor;

(E) affiliate, or insider of an affiliate as if such

affiliate were the debtor; and

(F) managing agent of the debtor;

(32) "insolvent" means-

(A) with reference to an entity other than a partnership

and a municipality, financial condition such that the sum of such entity's debts is greater than all of such entity's property, at a fair valuation, exclusive of-

(i) property transferred, concealed, or removed with intent

to hinder, delay, or defraud such entity's creditors; and

(ii) property that may be exempted from property of the

estate under section 522 of this title;

(B) with reference to a partnership, financial condition

such that the sum of such partnership's debts is greater than the aggregate of, at a fair valuation

(i) all of such partnership's property, exclusive of

property of the kind specified in subparagraph (A)(i) of this paragraph; and

(ii) the sum of the excess of the value of each general

partner's nonpartnership property, exclusive of property of

the kind specified in subparagraph (A) of this paragraph, over such partner's nonpartnership debts; and

(C) with reference to a municipality, financial

condition such that the municipality is-

(i) generally not paying its debts as they become due unless such debts are the subject of a bona fide dispute; or

(ii) unable to pay its debts as they become due;

(33) "institution-affiliated party"-

(A) with respect to an insured depository institution (as defined in section 3(c)(2) of the Federal Deposit Insurance Act), has the meaning given it in section 3(u) of the Federal Deposit Insurance Act (12 U.S.C. 1813(u)); and

(B) with respect to an insured credit union, has the

meaning given it in section 206(r) of the Federal Credit Union Act (12 U.S.C. 1786(r));

(34) "insured credit union" has the meaning given it in

section 101(7) of the Federal Credit Union Act (12 U.S.C.

1752(7));

(35) "insured depository institution"-

(A) has the meaning given it in section 3(c)(2) of the

Federal Deposit Insurance Act (12 U.S.C. 1813(c)(2)); and

(B) includes an insured credit union (except in the

case of paragraphs (3) and (33)(A) of this subsection);

(36) "judicial lien" means lien obtained by judgment,

levy, sequestration, or other legal or equitable process or

proceeding;

(37) "lien" means charge against or interest in property to

secure payment of a debt or performance of an obligation;

(38) "margin payment" means, for purposes of the forward

contract provisions of this title, payment or deposit of

cash, a security or other property, that is commonly known

in the forward contract trade as original margin, initial

margin, maintenance margin, or variation margin, including

mark-to-market payments, or variation payments; and [sic]

(39) "settlement payment" means, for purposes of the

forward contract provisions of this title, a preliminary

settlement payment, a partial settlement payment, an interim

settlement payment, a settlement payment on account, a final

settlement payment, a net settlement payment, or any other

similar payment commonly used in the forward contract trade;

(40) "municipality" means political subdivision or public

agency or instrumentality of a State;

(41) "person" includes individual, partnership, and

corporation, but does not include governmental unit,

provided, however, that any governmental unit that acquires

an asset from a person as a result of operation of a loan

guarantee agreement, or as receiver or liquidating agent of

a person, will be considered a person for purposes of

section 1102 of this title;

/* The definition of "person" includes most entities. /*

(42) "petition" means petition filed under section 301,

302, 303, or 304 of this title, as the case may be,

commencing a case under this title;

(43)	"purchaser" means transferee of a voluntary transfer,

and includes immediate or mediate transferee of such a

transferee;

(44)	"railroad" means common carrier by railroad engaged

in the transportation of individuals or property, or owner

of trackage facilities leased by such a common carrier;

(45)	"relative" means individual related by affinity or

consanguinity within the third degree as determined by the

common law, or individual in a step or adoptive relationship

within such third degree;

(46) "repo participant" means an entity that, on any day

during the period beginning 90 days before the date of the

filing of the petition, has an outstanding repurchase

agreement with the debtor;

(47) "repurchase agreement" (which definition also applies

to a reverse repurchase agreement) means an agreement,

including related terms, which provides for the transfer of

certificates of deposit, eligible bankers' acceptances, or

securities that are direct obligations of, or that are fully

guaranteed as to principal and interest by, the United

States or any agency of the United States against the

transfer of funds by the transferee of such certificates of

deposit, eligible bankers' acceptances, or securities with a

simultaneous agreement by such transferee to transfer to the

transferor thereof certificates of deposit, eligible

bankers' acceptances, or securities as described above, at a

date certain not later than one year after such transfers or on demand, against the transfer of hinds;

(48) "securities clearing agency" means person that is

registered as a clearing agency under section 17A of The

Securities Exchange Act of 1934 (15 U.S.C. 78q-l), or whose

business is confined to the performance of functions of a

clearing agency with respect to exempted securities, as

defined in section 3(a)(12) of such Act (15 U.S.C. 78c(12))

for the purposes of such section 17A;

(49) "security"

(A)	includes

(i)	note;

(ii) stock;

(iii) treasury- stock;

(iv)	bond;

(v)	debenture-

(vi) collateral trust certificate;

(vii) pre-organization certificate or subscription;

(viii) transferable share;

(ix) voting-trust certificate;

(x)	certificate of deposit;

(xi) certificate of deposit for security;

(xii) investment contract or certificate of interest or

participation in a profit-sharing agreement or in an oil, gas, or mineral royalty or lease, if such contract or interest is required to be the subject of a registration statement filed with The Securities and Exchange Commission under the provisions of the Securities Act of 1933 (15 U.S.C. 77a et seq.), or is exempt under section 3(b) of such Act (15 U.S.C. 77c(b)) from

the requirement to file such a statement;

(xiii) interest of a limited partner in a limited

partnership;

(xiv) other claim or interest commonly known as "security"; and

(xv) certificate of interest or participation in, temporary

or interim certificate for, receipt for, or warrant or right to

subscribe to or purchase or sell, a security; but

(B) does not include-

(i) currency, check, draft, bill of exchange, or bank

letter of credit;

(ii) leverage transaction, as defined in section 761(13) of

this title;

(iii) commodity futures contract or forward contract;

(iv) option, warrant, or right to subscribe to or purchase

or sell a commodity futures contract;

(v) option to purchase or sell a commodity;

(vi) contract or certificate of a kind specified in

subparagraph A(xii) of this paragraph that is not required to be the subject of a registration statement filed with the Securities and Exchange Commission and is not exempt under section 3(b) of the Securities Act of 1933 (15 U.S.C. 77c(b)) from the requirement to file such a statement; or

(vii) debt or evidence of indebtedness for goods sold and delivered or services rendered;

(50) "security agreement" means agreement that creates or

provides for a security interest;

(51) "security interest" means lien created by an

agreement;

(52) "State" includes the District of Columbia and Puerto

Rico, except for the purpose of defining who may be a debtor

under chapter 9 of this title;

(53) "statutory lien" means lien arising solely by force

of a statute on specified circumstances or conditions, or

lien of distress for rent, whether or not statutory, but

does not include security interest or judicial lien, whether

or not such interest or lien is provided by or is dependent

on a statute and whether or not such interest or lien is

made fully effective by statute;

(54) "stockbroker" means person

(A) with respect to which there is a customer, as

defined in section 741(2) of this title; and

(B) that is engaged in the business of effecting

transactions in securities

(i) for the account of others; or

(ii) with members of the general public, from or for such

person's own account;

(55) "swap agreement" means

(A) an agreement (including terms and conditions

incorporated by reference therein) which is a rate swap agreement, basis swap, forward rate agreement, commodity swap, interest rate option, forward foreign exchange agreement, rate cap agreement, rate floor agreement, rate collar agreement, currency swap agreement, cross-currency rate swap agreement, currency option, any other similar agreement (including any option to enter into any of the foregoing);

(B) any combination of the foregoing; or a master agreement for any of the foregoing together with all supplements;

(56) "swap participant" means an entity that, at any time

before the filing of the petition, has an outstanding swap

agreement with the debtor;

(57) "timeshare plan" means and shall include that

interest purchased in any arrangement, plan, scheme, or

similar device, but not including exchange programs, whether

by membership, agreement, tenancy in common, sale, lease,

deed, rental agreement, license, right to use agreement, or

by any other means, whereby a purchaser, in exchange for

consideration, receives a right to use accommodations,

facilities, or recreational sites, whether improved or

unimproved, for a specific period of time less than a full

year during any given year, but not necessarily for

consecutive years, and which extends for a period of more

than three years. A "timeshare interest" is that interest

purchased in a timeshare plan which grants the purchaser the

right to use and occupy accommodations, facilities, or

recreational sites, whether improved or unimproved, pursuant

to a timeshare plan;

/* this is no typo, there really are two each of 54, 55, 56, and 57.*/

(54)	"transfer" means every mode, direct or indirect,

absolute or conditional, voluntary or involuntary, of

disposing of or parting with property or with an interest in

property, including retention of title as a security

interest and foreclosure of the debtor's equity of

redemption;

(55)	"United States," when used in a geographical sense,

includes all locations where the judicial jurisdiction of

the United States extends, including territories and

possessions of the United States;

(56) "intellectual property" means-

(A)	trade secret;

(B)	invention, process, design, or plant protected

under title 35;

(C)	patent application;

(D)	plant variety;

(E)	work of authorship protected under title 17; or

/* In other words, a copyright. */

(F)	mask work protected under chapter 9 of title 17; to

the extent protected by applicable nonbankruptcy law; and

/* A mask work is not part of a costume, it is a semiconductor chip. */

(57) "mask work" has the meaning given it in section

901(a)(2) of title 17.

SECTION 102 (11 U.S.C. 102)

102. Rules of construction. In this title-

(1) "after notice and a hearing", or a similar phrase-

(A) means after such notice as is appropriate in the

particular circumstances, and such opportunity for a hearing

as is appropriate in the particular circumstances; but

(B) authorizes an act without an actual hearing if such

notice is given properly and if-

(i) such a hearing is not requested timely by a party in

interest; or

/* A common procedure in cases is for those involved in litigation or other proceeding to send notice of intent to perform a particular act and for the act to go forward unless a party objects and sets a hearing. */

(ii) there is insufficient time for a hearing to be

commenced before such act must be done, and the court authorizes such act;

(2) "claim against the debtor" includes claim against

property of the debtor;

/* Accordingly a non-recourse obligation is nevertheless a claim. */

(3)	"includes" and "including" are not limiting;

(4)	"may not" is prohibitive, and not permissive;

(5)	"or" is not exclusive;

(6)	"order for relief" means entry of an order for relief;

(7)	the singular includes the plural;

(8)	a definition, contained in a section of this title

that refers to another section of this title, does not, for

the purpose of such reference, affect the meaning of a term

used in such other section; and

(9)	"United States trustee" includes a designee of the

United States trustee.

SECTION 103 (11 U.S.C. 103)

103. Applicability of chapters.

(a)	Except as provided in section 1161 of this title,

chapters 1, 3, and 5 of this title apply in a case under

chapter 7, 11, 12, or 13 of this title.

/* Chapters 7, 11, 12 and 13 use most parts of chapters 1, 3 and 5 as the law for areas not covered within those sections. */

(b)	Subchapters I and II of chapter 7 of this title apply

only in a case under such chapter.

(c)	Subchapter III of chapter 7 of this title applies

only in a case under such chapter concerning a stockbroker.

(d)	Subchapter IV of chapter 7 of this title applies only

in a case under such chapter concerning a commodity broker.

(e)	Except as provided in section 901 of this title, only

chapters 1 and 9 of this title apply in a case under such

chapter 9.

(f)	Except as provided in section 901 of this title,

subchapters I, II, and III of chapter 11 of this title apply

only in a case under such chapter.

(g)	Subchapter IV of chapter 11 of this title applies

only in a case under such chapter concerning a railroad.

(h)	Chapter 13 of this title applies only in a case under

such chapter.

(i)	Chapter 12 of this title applies only in a case under

such chapter.

SECTION 104 (11 U.S.C. 104)

104. Adjustment of dollar amounts. The Judicial Conference of the United States shall transmit to the Congress and to the President before May 1, 1985, and before May 1 of every sixth year after May 1, 1985, a recommendation for the uniform percentage adjustment of each dollar amount in this title and in section 1930 of title 28.

SECTION 105 (11 U.S.C. 105)

105. Power of court.

(a)	The court may issue any order, process, or judgment

that is necessary or appropriate to carry out the provisions

of this title. No provision of this title providing for the

raising of an issue by a party in interest shall be

construed to preclude the court from, sua sponte, taking any

action or making any determination necessary or appropriate

to enforce or implement court orders or rules, or to prevent

an abuse of process.

(b)	Notwithstanding subsection (a) of this section, a

court may not appoint a receiver in a case under this title.

/* The "all writs power" described above is central to the bankruptcy court's authority and is the basis for injunctive relief involving officers and shareholders of corporations

who are not debtors in bankruptcy.*/

(c)	The ability of any district judge or other officer or

employee of a district court to exercise any of the

authority or responsibilities conferred upon the court under

this title shall be determined by reference to the

provisions relating to such judge, officer, or employee set

forth in title 28. This subsection shall not be interpreted

to exclude bankruptcy judges and other officers or employees

appointed pursuant to chapter 6 of title 28 from its

operation.

SECTION 106 (11 U.S.C. 106)

106. Waiver of sovereign immunity.

(a)	A governmental unit is deemed to have waived sovereign

immunity with respect to any claim against such governmental

unit that is property of the estate and that arose out of

the same transaction or occurrence out of which such

governmental unit's claim arose.

(b)	There shall be offset against an allowed claim or

interest of a governmental unit any claim against such

governmental unit that is property of the estate.

(c)	Except as provided in subsections (a) and (0) of this section and notwithstanding any assertion of sovereign

immunity --

(1)	a provision of this title that contains creditor",

entity", or governmental unit" applies to governmental

units; and

(2)	a determination by the court of an issue arising

under such a provision binds governmental units.

SECTION 107 (11 U.S.C. 107)

107. Public access to papers.

(a)	Except as provided in subsection (0) of this section,

a paper filed in a case under this title and the dockets of

a bankruptcy court are public records and open to

examination by an entity at reasonable times without charge.

(b)	On request of a party in interest, the bankruptcy

court shall, and on the bankruptcy court's own motion, the

bankruptcy court may-

(1)	protect an entity with respect to a trade secret or

confidential research, development, or commercial information; or

(2)	protect a person with respect to scandalous or

defamatory matter contained in a paper filed in a case under this title.

SECTION 108 (11 U.S.C. 108)

108. Extension of time.

(a)	If applicable nonbankruptcy law, an order entered in

a nonbankruptcy proceeding, or an agreement fixes a period

within which the debtor may commence an action, and such

period has not expired before the date of the filing of the

petition, the trustee may commence such action only before

the later of-

/* Applicable non-bankruptcy law means state law, or federal law other than that of bankruptcy.*/

(1)	the end of such period, including any suspension of

such period occurring on or after the commencement of the case;

or

(2)	two years after the order for relief.

(b)	Except as provided in subsection (a) of this section,

if applicable nonbankruptcy law, an order entered in a

nonbankruptcy proceeding, or an agreement fixes a period

within which the debtor or air individual protected under

section 1201 or 1301 of this title may file any pleading,

demand notice, or proof of claim or loss, cure a default, or

perform any other similar act, and such period has not

expired before the date of the filing of the petition, the

trustee may only file, cure, or perform, as the case may be

before the later of-

(1) the end of such period, including any suspension of such period occurring on or after the commencement of the case; or

(2) 60 days after the order for relief.

(c) Except as provided in section 524 of this title, if

applicable nonbankruptcy law, an order entered in a nonbankruptcy

proceeding, or an agreement fixes a period for commencing or

continuing a civil action in a court other than a bankruptcy

court on a claim against the debtor, or against an individual

with respect to which such individual is protected under section

1201 or 1301 of this title, and such period has not expired

before the date of the filing of the petition, then such period

does not expire until the later of-

(1) the end of such period, including any suspension of

such period occurring on or after the commencement of the case;

or

(2) 30 days after notice of the termination or expiration

of the stay under section 362, 722, 1201, or 1301 of this title,

as the case may be, with respect to such claim.

SECTION 109 (11 U.S.C. 109)

109. Who may be a debtor.

(a) Notwithstanding any other provision of this section,

only a person that resides or has a domicile, a place of

business, or property in the United States, or a municipality,

may be a debtor under this title.

(b) A person may be a debtor under chapter 7 of this title

only if such person is not-

(1) a railroad;

(2) a domestic insurance company, bank, savings bank,

cooperative bank, savings and loan association, building and loan

association, homestead association, credit union, or industrial

bank or similar institution which is an insured bank as defined

in section 3(h) of the Federal Deposit Insurance Act (12 U.S.C.

l3(h)); or

(3) a foreign insurance company, bank, savings bank,

cooperative bank, savings and loan association, building and loan

association, homestead association, or credit union, engaged in such business in the United States.

/* Banks, insurance comapnies and other such entites have insolvency laws outside of bankruptcy, and therefore are made ineligible for bankruptcy relief. */

(e) An entity may be a debtor under chapter 9 of this

title if and only if such entity

(1) is a municipality;

(2) is generally authorized to be a debtor under such

chapter by State law, or by a governmental officer or

organization empowered by State law to authorize such entity to

be a debtor under such chapter;

(3) is insolvent;

(4) desires to effect a plan to adjust such debts;

and

(5)(A) has obtained the agreement of creditors holding at

least a majority in amount of the claims of each class that such

entity intends to impair under a plan in a case under such

chapter;

(B) has negotiated in good faith with creditors and has

failed to obtain the agreement of creditors holding at least a

majority in amount of the claims of each class that such entity

intends to impair under a plan in a case under such chapter;

(C) is unable to negotiate with creditors because such

negotiation is impracticable; or

(D) reasonably believes that a creditor may attempt to

obtain a transfer that is avoidable under section 547 of this

title.

(d) Only a person that may be a debtor under chapter 7 of

this title, except a stockbroker or a commodity broker, and a

railroad may be a debtor under chapter 11 of this title.

(e) Only an individual with regular income that owes, on

the date of the filing of the petition, noncontingent,

liquidated, unsecured debts of less than $100,000 and

noncontingent, liquidated, secured debts of less than $350,000,

or an individual with regular income and such individual's

spouse, except a stockbroker or a commodity broker, that owe, on

the date of the filing of the petition, noncontingent,

liquidated, unsecured debts that aggregate less than $100,000 and

non-contingent, liquidated, secured debts of less than $350,000

may be a debtor under chapter 13 of this title.

(f) Only a family farmer with regular annual income may be

a debtor under chapter 12 of this title.

(g) Notwithstanding any other provision of this section,

no individual or family farmer may be a debtor under this title

who has been a debtor in a case pending under this title at any

time in the preceding 180 days if-

(1) the case was dismissed by the court for willful

failure of the debtor to abide by orders of the court, or to

appear before the court in proper prosecution of the case; or

(2) the debtor requested and obtained the voluntary

dismissal of the case following the filing of a request for

relief from the automatic stay provided by section 362 of this

title.

/* We continue the bankruptcy code in part two, which begins with Chapter 3. */