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Full Text of this Amendment

SA 1059. Mr. WHITEHOUSE (for himself and Mr. Sanders) submitted an amendment intended to be proposed by him to the bill H.R. 627, to amend the Truth in Lending Act to establish fair and transparent practices relating to the extension of credit under an open end consumer credit plan, and for other purposes; which was ordered to lie on the table; as follows:

At the end of title I, add the following:
SEC. 112. EFFECTS OF HIGH COST CREDIT ON BANKRUPTCY PROCEEDINGS.
(a) Definitions.--Section 101 of title 11, United States Code, is amended--
(1) by redesignating paragraph (27B) as paragraph (27C); and
(2) by inserting after paragraph (27A) the following:
``(27B) The term `high cost consumer credit transaction' means an extension of credit by a `creditor' (as defined in section 103 of the Truth in Lending Act (15 U.S.C. 1602(f))), resulting in a consumer debt that has an applicable annual percentage rate (as determined in accordance with section 107(a) of the Truth in Lending Act (15 U.S.C. 1606(a)), and including costs and fees incurred in connection with the extension of such credit) that exceeds, at any time while the credit is outstanding,
the lesser of--
``(A) the sum of 15 percent and the yield on United States Treasury securities having a 30-year period of maturity; or
``(B) 36 percent.''.
(b) Disallowance of Claims.--Section 502 of title 11, United States Code, is amended by adding at the end the following:
``(l) Notwithstanding subsections (a) and (b) of this section, the court shall disallow any claim arising from a high cost consumer credit transaction for the purpose of distribution under this title.''.
(c) Exclusion.--Section 707(b) of title 11, United States Code, is amended by adding at the end the following:
``(8) Paragraph (2) shall not apply in the case of a debtor who has any debts arising from a high cost consumer credit transaction.''.


(As printed in the Congressional Record for the Senate on May 11, 2009.)