Page:United States Statutes at Large Volume 114 Part 1.djvu/213

 PUBLIC LAW 106-181—APR. 5, 2000 114 STAT. 177 "(2) At such time as the trustee is required under paragraph (1) to surrender and return equipment described in subsection (a)(2), any lease of such equipment, and any security agreement or conditional sale contract relating to such equipment, if such security agreement or conditional sale contract is an executory contract, shall be deemed rejected. "(d) With respect to equipment first placed in service on or prior to October 22, 1994, for purposes of this section— "(1) the term 'lease' includes any written agreement with respect to which the lessor and the debtor, as lessee, have expressed in the agreement or in a substantially contemporaneous writing that the agreement is to be treated as a lease for Federal income tax purposes; and "(2) the term 'security interest' means a purchase-money equipment security interest. "(e) With respect to equipment first placed in service after October 22, 1994, for purposes of this section, the term 'rolling stock equipment' includes rolling stock equipment that is substantially rebuilt and accessories used on such equipment.". (b) AIRCRAFT EQUIPMENT AND VESSELS.—Section 1110 of title 11, United States Code, is amended to read as follows: "§ 1110. Aircraft equipment and vessels "(a)(1) Except as provided in paragraph (2) and subject to subsection (b), the right of a secured party with a security interest in equipment described in paragraph (3), or of a lessor or conditional vendor of such equipment, to take possession of such equipment in compliance with a security agreement, lease, or conditional sale contract, and to enforce any of its other rights or remedies, under such security agreement, lease, or conditional sale contract, to sell, lease, or otherwise retain or dispose of such equipment, is not limited or otherwise affected by any other provision of this title or by any power of the court. "(2) The right to take possession and to enforce the other rights and remedies described in paragraph (1) shall be subject to section 362 if— "(A) before the date that is 60 days after the date of the order for relief under this chapter, the trustee, subject to the approval of the court, agrees to perform all obligations of the debtor under such security agreement, lease, or conditional sale contract; and "(B) any default, other than a default of a kind specified in section 365(b)(2), under such security agreement, lease, or conditional sale contract— "(i) that occurs before the date of the order is cured before the expiration of such 60-day period; "(ii) that occurs after the date of the order and before the expiration of such 60-day period is cured before the later of— "(I) the date that is 30 days after the date of the default; or "(II) the expiration of such 60-day period; and "(iii) that occurs on or after the expiration of such 60-day period is cured in compliance with the terms of such security agreement, lease, or conditional sale contract, if a cure is permitted under that agreement, lease, or contract.

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