Complete Home & Office Legal Guide/Complete Home and Office Legal Guide (Chestnut) (1993).ISO/stat/fed/11usc_1.asc

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/* 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. */