- 12 - from the claims of creditors under applicable State law. That is because under applicable State law such assets generally are not subject to the payment of debts. However, the third dictionary definition of the word “assets” quoted above seems to include assets exempt from the claims of creditors under applicable State law. That is because such assets are items appearing on a balance sheet showing the value of property owned. See Account- ing and Fin. Reporting for Personal Fin. Statements, Statement of Position 82-1 (AICPA 1982). We conclude that the common and ordinary meaning of the word “assets” as reflected in the dictio- nary definition of that word does not support only one construc- tion. We next turn to pertinent legislative history for guidance in interpreting what Congress intended by its use of the word “assets” in the definition of the term “insolvent” in section 108(d)(3). Congress enacted section 108(a)(1)(B) and related provisions (i.e., section 108(a)(3), (d)(3), and (e)(1)) into the Code in 1980 as part of the Bankruptcy Tax Act of 1980, Pub. L. 96-589, sec. 2(a), 94 Stat. 3389 (1980 Bankruptcy Tax Act). The stated purpose of the 1980 Bankruptcy Tax Act was to “accommodate bankruptcy policy and tax policy.” S. Rept. 96-1035 at 9-10 (1980), 1980-2 C.B. 620, 624. Such an accommodation was neces- sary after Congress made significant changes to the Federal bankruptcy laws in 1978 by passing the Bankruptcy Reform Act ofPage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
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