Reprinted from September 1999 ABI Journal
Web posted and Copyright © September 1, 1999, American Bankruptcy Institute.
- Senate Majority Leader Trent Lott has announced his intention to call up S. 625 soon after
Congress returns in September. A number of amendments are possible; Senate rules are
very generous in what can be deemed germane amendments.
- Language from two other pending bills may be considered as floor amendments. The Financial
Institutions Insolvency Improvements Act (S. 958, by Sen. Bennett) is based on
recommendations from the President's Working Group on Financial Markets and is
supported by the financial community. It would enhance the ability to "net out" or "cross
product net" certain financial contracts (such as swaps, forward contracts, contracts for
securities, commodities or repurchase agreements) in the event a party becomes insolvent.
The amendments modernize changes to the Code that were added in 1990.
- The Consumer Credit Card Protection Amendments (S. 787, by Sen. Schumer) amend the
Truth in Lending Act (TILA) to provide more complete disclosures regarding the effect of
making only minimum monthly payments. It would also require more disclosures to
consumers on Internet-based solicitations, "teaser rates" and interest rate hikes. The
amendments would forbid inactivity fees, over-the-limit fees or fees for paying balances in
full, and bar credit cards to those under 21 years of age without independent means of
financial support. TILA is under the jurisdiction of the Senate Banking Committee, and these
amendments are likely to be resisted by Sen. Phil Gramm (R-TX), who chairs that
- Join the online discussions at ABI World's Business Bankruptcy Discussion Board on
bankruptcy appellate procedure, asset-backed securitizations, reversal of the Catapult
decision and more.