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Bill115th CongressFiled Mar 22, 2017Finance and Financial Sector
H.R. 1667

Financial Institution Bankruptcy Act of 2017

Bill journey · stage 2 of 5

Under committee review

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What it doesSummary passed house amended (Apr 5, 2017)

Financial Institution Bankruptcy Act of 2017

(Sec. 2) This bill amends federal bankruptcy law to allow certain large financial institutions to elect a new "Subchapter V" bankruptcy process specific to such institutions.

(Sec. 3) Under the new process, a debtor institution may request the bankruptcy court to order the transfer of the debtor's assets to a newly formed bridge company. The trust agreement governing such an assets transfer must meet specified requirements.

The court may order such an assets transfer only if it determines, by a preponderance of the evidence, that: (1) the transfer is necessary to prevent serious adverse effects on financial stability in the United States, (2) other specified requirements are met.

The bill imposes a temporary stay on actions to terminate or modify contracts with institutions that enter the Subchapter V bankruptcy process.

Members of the institution's board of directors shall have no liability to shareholders or creditors for a good faith filing of a petition to commence a Subchapter V bankruptcy case.

The bill specifies timelines with respect to the commencement of a case and the transfer of assets.

The Securities and Exchange Commission and the Federal Deposit Insurance Corporation, among other federal regulatory agencies, shall have standing in a Subchapter V bankruptcy case.

Under specified conditions, a Subchapter V bankruptcy case may be converted into a case in Chapter 7 bankruptcy (also known as "liquidation" bankruptcy).

(Sec. 4) The bill amends the federal judicial code to require the Chief Justice of the United States to designate at least 10 bankruptcy judges to be available to hear Subchapter V bankruptcy cases.

What just happenedApr 6, 2017

Received in the Senate and Read twice and referred to the Committee on the Judiciary.

Who’s behind it

Rep. Marino, Tom [R-PA-10](R-PA)Sponsor
4 cosponsors3 D1 R
Read on Congress.gov
4cosponsors2committees16actions3related bills8subjects
  1. Apr 6, 2017IntroReferral

    Received in the Senate and Read twice and referred to the Committee on the Judiciary.

    Judiciary Committee
  2. Apr 5, 2017FloorH38310

    Motion to reconsider laid on the table Agreed to without objection.

  3. Apr 5, 2017FloorH37300

    On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2715-2718)

  4. Apr 5, 2017Floor8000

    Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H2715-2718)

  5. Apr 5, 2017FloorH8D000

    DEBATE - The House proceeded with forty minutes of debate on H.R. 1667.

  6. Apr 5, 2017FloorH30000

    Considered under suspension of the rules. (consideration: CR H2715-2720)

  7. Apr 5, 2017FloorH30300

    Mr. Goodlatte moved to suspend the rules and pass the bill, as amended.

  8. Apr 5, 2017CalendarsH12410

    Placed on the Union Calendar, Calendar No. 46.

  9. Apr 5, 2017CommitteeH12200

    Reported by the Committee on Judiciary. H. Rept. 115-80.

    Judiciary Committee
  10. Apr 5, 2017Committee5000

    Reported by the Committee on Judiciary. H. Rept. 115-80.

    Judiciary Committee
  11. Mar 29, 2017Committee

    Ordered to be Reported by Voice Vote.

    Judiciary Committee
  12. Mar 29, 2017Committee

    Committee Consideration and Mark-up Session Held.

    Judiciary Committee
  13. Mar 22, 2017Committee

    Referred to the Subcommittee on Regulatory Reform, Commercial And Antitrust Law.

    Administrative State, Regulatory Reform, and Antitrust Subcommittee
  14. Mar 22, 2017IntroReferralH11100

    Referred to the House Committee on the Judiciary.

    Judiciary Committee
  15. Mar 22, 2017IntroReferralIntro-H

    Introduced in House

  16. Mar 22, 2017IntroReferral1000

    Introduced in House

Passed House amendedApr 5, 201736

Financial Institution Bankruptcy Act of 2017

(Sec. 2) This bill amends federal bankruptcy law to allow certain large financial institutions to elect a new "Subchapter V" bankruptcy process specific to such institutions.

(Sec. 3) Under the new process, a debtor institution may request the bankruptcy court to order the transfer of the debtor's assets to a newly formed bridge company. The trust agreement governing such an assets transfer must meet specified requirements.

The court may order such an assets transfer only if it determines, by a preponderance of the evidence, that: (1) the transfer is necessary to prevent serious adverse effects on financial stability in the United States, (2) other specified requirements are met.

The bill imposes a temporary stay on actions to terminate or modify contracts with institutions that enter the Subchapter V bankruptcy process.

Members of the institution's board of directors shall have no liability to shareholders or creditors for a good faith filing of a petition to commence a Subchapter V bankruptcy case.

The bill specifies timelines with respect to the commencement of a case and the transfer of assets.

The Securities and Exchange Commission and the Federal Deposit Insurance Corporation, among other federal regulatory agencies, shall have standing in a Subchapter V bankruptcy case.

Under specified conditions, a Subchapter V bankruptcy case may be converted into a case in Chapter 7 bankruptcy (also known as "liquidation" bankruptcy).

(Sec. 4) The bill amends the federal judicial code to require the Chief Justice of the United States to designate at least 10 bankruptcy judges to be available to hear Subchapter V bankruptcy cases.

Introduced in HouseMar 22, 2017

Financial Institution Bankruptcy Act of 2017

This bill amends federal bankruptcy law to allow certain large financial institutions to elect a new "Subchapter V" bankruptcy process specific to such institutions.

Under the new process, a debtor institution may request the bankruptcy court to order the transfer of the debtor's assets to a newly formed bridge company. The trust agreement governing such an assets transfer must meet specified requirements.

The court may order such an assets transfer only if it determines, by a preponderance of the evidence, that: (1) the transfer is necessary to prevent serious adverse effects on financial stability in the United States, (2) other specified requirements are met.

The bill imposes a temporary stay on actions to terminate or modify contracts with institutions that enter the Subchapter V bankruptcy process.

Members of the institution's board of directors shall have no liability to shareholders or creditors for a good faith filing of a petition to commence a Subchapter V bankruptcy case.

The bill specifies timelines with respect to the commencement of a case and the transfer of assets.

The Securities and Exchange Commission and the Federal Deposit Insurance Corporation, among other federal regulatory agencies, shall have standing in a Subchapter V bankruptcy case.

Under specified conditions, a Subchapter V bankruptcy case may be converted into a case in Chapter 7 bankruptcy (also known as "liquidation" bankruptcy).

The bill amends the federal judicial code to require the Chief Justice of the United States to designate at least 10 bankruptcy judges to be available to hear Subchapter V bankruptcy cases.

Financial Institution Bankruptcy Act of 2017 — Informed