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Code · BILL · 114th Congress · S. 1156 (Introduced in Senate) — To amend title 11, United States Code, to improve protections for employees and retirees in business bankruptcies. · Sec. 205

Sec. 205. Payments by secured lender

118 words·~1 min read·/bill/114/s/1156/is/section-205·

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Section 506(c) of title 11, United States Code, is amended by adding at the end the following: If employees have not received wages, accrued vacation, severance, or other benefits owed under the policies and practices of the debtor, or pursuant to the terms of a collective bargaining agreement, for services rendered on and after the date of the commencement of the case, such unpaid obligations shall be deemed necessary costs and expenses of preserving, or disposing of, property securing an allowed secured claim and shall be recovered even if the trustee has otherwise waived the provisions of this subsection under an agreement with the holder of the allowed secured claim or a successor or predecessor in interest. .
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