11 U.S.C. § 1167 — Collective bargaining agreements

Page 282 TITLE 11—BANKRUPTCY § 1167 menced. However, any order that would require the ex- penditure, or the incurring of an obligation for the ex- penditure, of money is not effective under [until] ap- proved by the court. Editorial Notes REFERENCES IN TEXT Section 601(b) of the Regional Rail Reorganization Act of 1973, referred to in par. (2), is classified to sec- tion 791(b) of Title 45, Railroads. AMENDMENTS 1994—Par. (2). Pub. L. 103–394 struck out ‘‘(45 U.S.C. 791(b))’’ after ‘‘Act of 1973’’. 1984—Pub. L. 98–353 directed substitution of ‘‘subtitle IV of title 49’’ for ‘‘the Interstate Commerce Act (49 U.S.C. 1 et seq.)’’, which substitution had previously been made by Pub. L. 97–449. 1983—Pub. L. 97–449 substituted ‘‘subtitle IV of title 49’’ for ‘‘Interstate Commerce Act’’ in section catch- line, and ‘‘subtitle IV of title 49’’ for ‘‘the Interstate Commerce Act (49 U.S.C. 1 et seq.)’’ in text. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title. § 1167. Collective bargaining agreements Notwithstanding section 365 of this title, nei- ther the court nor the trustee may change the wages or working conditions of employees of the debtor established by a collective bargaining agreement that is subject to the Railway Labor Act except in accordance with section 6 of such Act. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2642; Pub. L. 103–394, title V, § 501(d)(35), Oct. 22, 1994, 108 Stat. 4146.) HISTORICAL AND REVISION NOTES SENATE REPORT NO. 95–989 Section 1176 [enacted as section 1167] is derived from present section 77(n) [section 205(n) of former title 11]. It provides that notwithstanding the general section governing the rejection of executory contracts (section 365), neither the court nor the trustee may change the wages or working conditions of employees of the debtor established by a collective bargaining agreement that is subject to the Railway Labor Act [45 U.S.C. 151 et seq.], except in accordance with section 6 of that Act [45 U.S.C. 156]. As reported by the subcommittee this section provided that wages and salaries of rail employ- ees could not be affected by the trustee, but that work rules could be rejected by the trustee. The reorganiza- tion court was given the authority to review the trust- ee’s decisions and to settle any disputes arising from the rejection. This provision was withdrawn by the full committee, and hearings will be conducted next year by the Human Resources Committee in the area of rail labor contracts and the trustee’s ability to reject them in a bankruptcy situation. HOUSE REPORT NO. 95–595 Section 1167 is derived from present section 77(n) [sec- tion 205(n) of former title 11]. It provides that notwith- standing the general section governing the rejection of executory contracts (section 365), neither the court nor the trustee may change the wages or working condi- tions of employees of the debtor established by a col- lective bargaining agreement that is subject to the Railway Labor Act [45 U.S.C. 151 et seq.], except in ac- cordance with section 6 of that Act [45 U.S.C. 156]. The subject of railway labor is too delicate and has too long a history for this code to upset established relation- ships. The balance has been struck over the years. This provision continues that balance unchanged. Editorial Notes REFERENCES IN TEXT The Railway Labor Act, referred to in text, is act May 20, 1926, ch. 347, 44 Stat. 577, which is classified principally to chapter 8 (§ 151 et seq.) of Title 45, Rail- roads. Section 6 of the Act is classified to section 156 of Title 45. For complete classification of this Act to the Code, see section 151 of Title 45 and Tables. AMENDMENTS 1994—Pub. L. 103–394 struck out ‘‘(45 U.S.C. 151 et seq.)’’ after ‘‘Railway Labor Act’’ and ‘‘(45 U.S.C. 156)’’ after ‘‘such Act’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title. § 1168. Rolling stock equipment (a)(1) The right of a secured party with a secu- rity interest in or of a lessor or conditional ven- dor of equipment described in paragraph (2) to take possession of such equipment in compli- ance with an equipment security agreement, lease, or conditional sale contract, and to en- force 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, except that right to take possession and enforce those other rights and remedies shall be subject to section 362, if— (A) before the date that is 60 days after the date of commencement of a case under this chapter, the trustee, subject to the court’s ap- proval, 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 described in section 365(b)(2), under such security agreement, lease, or conditional sale contract— (i) that occurs before the date of com- mencement of the case and is an event of de- fault therewith is cured before the expira- tion of such 60-day period; (ii) that occurs or becomes an event of de- fault after the date of commencement of the case 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 event 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 accordance with the terms of such security agreement,