Bankruptcy Bill

[Douglas Laycock]

        The President today signed the Religious Liberty and Charitable
Contribution Protection Act, which amends the Bankruptcy Code to clarify
that charitable contributions are not fraudulent transfers unless made with
fraudulent intent.  The bill applies to pending cases and it pre-empts state
court litigation once a bankruptcy petition has been filed.  It protects any
organization that is tax exempt under sections 170(c)(1) or (c)(2) of the
Internal Revenue Code, without distinguishing religious and secular charities.


Douglas Laycock
University of Texas Law School
727 E. Dean Keeton St.
Austin, TX  78705
        512-232-1341 (voice)
        512-471-6988 (fax)
        dlaycock at mail.law.utexas.edu