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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 of
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