Page:United States Statutes at Large Volume 108 Part 5.djvu/632

 108 STAT. 4122 PUBLIC LAW 103-394—OCT. 22, 1994 (1) in subsection (c)(3)(B) by striking "10" and inserting " 20", and (2) in subsection (e)(2)(A) by inserting ", except as provided in subsection (c)(3)(B)" before the semicolon at the end. SEC. 204. CONTINUED PERFECTION. (a) AUTOMATIC STAY.—Section 362(b)(3) of title 11, United States Code, is amended by inserting ", or to maintain or continue the perfection of," after "to perfect". (b) LIMITATIONS ON AVOIDING POWERS. —Section 546(b) of title 11, United States Code, is amended to read as follows: "(b)(1) The rights and powers of a trustee under sections 544, 545, and 549 of this title are subject to any generally applicable law that— "(A) permits perfection of an interest in property to be effective against an entity that acquires rights in such property before the date of perfection; or "(B) provides for the maintenance or continuation of perfection of an interest in property to be effective against an entity that acquires rights in such property before the date on which action is taken to effect such maintenance or continuation. "(2) If— "(A) a law described in paragraph (1) requires seizure of such property or commencement of an action to accomplish such perfection, or maintenance or continuation of perfection of an interest in property; and "(B) such property has not been seized or such an action has not been commenced before the date of the filing of the petition; such interest in such property shall be perfected, or perfection of such interest shall be maintained or continued, by giving notice within the time fixed by such law for such seizure or such commencement.". SEC. 205. REJECTION OF UNEXPIRED LEASES OF REAL PROPERTY OR TIMESHARE INTERESTS. (a) AMENDMENT TO SECTION 365. —Section 365(h) of title 11, United States Code, is amended to read as follows: "(h)(1)(A) If the trustee rejects an unexpired lease of real property under which the debtor is the lessor and— "(i) if the rejection by the trustee amounts to such a breach as would entitle the lessee to treat such lease as terminated by virtue of its terms, applicable nonbankruptcy law, or any agreement made by the lessee, then the lessee under such lease may treat such lease as terminated by the rejection; or "(ii) if the term of such lease has commenced, the lessee may retain its rights under such lease (including rights such as those relating to the amount and timing of payment of rent and other amounts payable by the lessee and any right of use, possession, quiet enjoyment, subletting, assignment, or hypothecation) that are in or appurtenant to the real property for the balance of the term of such lease and for any renewal or extension of such rights to the extent that such rights are enforceable under applicable nonbankruptcy law. "(B) If the lessee retains its rights under subparagraph (A)(ii), the lessee may offset against the rent reserved under such lease for the balance of the term after the date of the rejection of such

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