Page:United States Statutes at Large Volume 119.djvu/233

 PUBLIC LAW 109–8—APR. 20, 2005

119 STAT. 215

‘‘(2) For the purposes of this subsection, a transfer includes a transfer made in anticipation of any money judgment, settlement, civil penalty, equitable order, or criminal fine incurred by, or which the debtor believed would be incurred by— ‘‘(A) any violation of the securities laws (as defined in section 3(a)(47) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(47))), any State securities laws, or any regulation or order issued under Federal securities laws or State securities laws; or ‘‘(B) fraud, deceit, or manipulation in a fiduciary capacity or in connection with the purchase or sale of any security registered under section 12 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78l and 78o(d)) or under section 6 of the Securities Act of 1933 (15 U.S.C. 77f).’’. SEC.

1403.

PAYMENT OF EMPLOYEES.

INSURANCE

BENEFITS

TO

RETIRED

Section 1114 of title 11, United States Code, is amended— (1) by redesignating subsection (l) as subsection (m), and (2) by inserting after subsection (k) the following: ‘‘(l) If the debtor, during the 180-day period ending on the date of the filing of the petition— ‘‘(1) modified retiree benefits; and ‘‘(2) was insolvent on the date such benefits were modified; the court, on motion of a party in interest, and after notice and a hearing, shall issue an order reinstating as of the date the modification was made, such benefits as in effect immediately before such date unless the court finds that the balance of the equities clearly favors such modification.’’. SEC. 1404. DEBTS NONDISCHARGEABLE IF INCURRED IN VIOLATION OF SECURITIES FRAUD LAWS.

(a) PREPETITION AND POSTPETITION EFFECT.—Section 523(a)(19)(B) of title 11, United States Code, is amended by inserting ‘‘, before, on, or after the date on which the petition was filed,’’ after ‘‘results’’. (b) EFFECTIVE DATE UPON ENACTMENT OF SARBANES-OXLEY ACT.—The amendment made by subsection (a) is effective beginning July 30, 2002.

11 USC 523 note.

SEC. 1405. APPOINTMENT OF TRUSTEE IN CASES OF SUSPECTED FRAUD.

Section 1104 of title 11, United States Code, is amended by adding at the end the following: ‘‘(e) The United States trustee shall move for the appointment of a trustee under subsection (a) if there are reasonable grounds to suspect that current members of the governing body of the debtor, the debtor’s chief executive or chief financial officer, or members of the governing body who selected the debtor’s chief executive or chief financial officer, participated in actual fraud, dishonesty, or criminal conduct in the management of the debtor or the debtor’s public financial reporting.’’. SEC. 1406. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

11 USC 507 note.

(a) EFFECTIVE DATE.—Except as provided in subsection (b), this title and the amendments made by this title shall take effect on the date of the enactment of this Act. (b) APPLICATION OF AMENDMENTS.—

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