FRBK97.ZRL Misc.

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SUPREME COURT OF THE UNITED STATES

April 11, 1997

ORDERED:

1.That the Federal Rules of Bankruptcy Procedure be, and they
hereby are, amended by including therein amendments to Bankruptcy Rules
1010, 1019, 2002, 2007.1, 3014, 3017, 3018, 3021, 8001, 8002, 9011, and 9035,
and new Rules 1020, 3017.1, 8020, and 9015.

[See infra., pp. ___ ___ ___.]

2.That the foregoing amendments to the Federal Rules of
Bankruptcy Procedure shall take effect on December 1, 1997, and shall govern
all proceedings in bankruptcy cases thereafter commenced and, insofar as just
and practicable, all proceedings in bankruptcy cases then pending.

3.That THE CHIEF JUSTICE be, and hereby is, authorized to
transmit to the Congress the foregoing amendments to the Federal Rules of
Bankruptcy Procedure in accordance with the provisions of Section 2075 of
Title 28, United States Code.

PROPOSED AMENDMENTS TO THE
FEDERAL RULES OF BANKRUPTCY PROCEDURE

Rule 1010. Service of Involuntary Petition and
Summons; Petition Commencing Ancillary Case

On the filing of an involuntary petition or a petition
commencing a case ancillary to a foreign proceeding the
clerk shall forthwith issue a summons for service. When an
involuntary petition is filed, service shall be made on the
debtor. When a petition commencing an ancillary case is
filed, service shall be made on the parties against whom
relief is sought pursuant to 304(b) of the Code and on
any other parties as the court may direct. The summons
shall be served with a copy of the petition in the manner
provided for service of a summons and complaint by Rule
7004(a) or (b). If service cannot be so made, the court may
order that the summons and petition be served by mailing
copies to the party's last known address, and by at least one
publication in a manner and form directed by the court. The
summons and petition may be served on the party
anywhere. Rule 7004(e) and Rule 4(l) F.R.Civ.P. apply
when service is made or attempted under this rule.
Rule 1019. Conversion of Chapter 11 Reorganization
Case, Chapter 12 Family Farmer's Debt Adjustment
Case, or Chapter 13 Individual's Debt Adjustment
Case to Chapter 7 Liquidation Case
When a chapter 11, chapter 12, or chapter 13 case
has been converted or reconverted to a chapter 7 case:
* * * * *
(3) CLAIMS FILED BEFORE CONVERSION.
All claims actually filed by a creditor before conversion of
the case are deemed filed in the chapter 7 case.
* * * * *
(5) FILING FINAL REPORT AND SCHEDULE
OF POSTPETITION DEBTS.
(A) Conversion of Chapter 11 or Chapter
12 Case. Unless the court directs otherwise, if a
chapter 11 or chapter 12 case is converted to
chapter 7, the debtor in possession or, if the debtor
is not a debtor in possession, the trustee serving at
the time of conversion, shall:
(i) not later than 15 days after
conversion of the case, file a schedule of
unpaid debts incurred after the filing of the
petition and before conversion of the case,
including the name and address of each
holder of a claim; and
(ii) not later than 30 days after
conversion of the case, file and transmit to
the United States trustee a final report and
account;
(B) Conversion of Chapter 13 Case. Unless
the court directs otherwise, if a chapter 13 case is
converted to chapter 7,
(i) the debtor, not later than 15 days
after conversion of the case, shall file a
schedule of unpaid debts incurred after the
filing of the petition and before conversion
of the case, including the name and address
of each holder of a claim; and
(ii) the trustee, not later than 30 days
after conversion of the case, shall file and
transmit to the United States trustee a final
report and account;
(C) Conversion After Confirmation of a
Plan. Unless the court orders otherwise, if a
chapter 11, chapter 12, or chapter 13 case is
converted to chapter 7 after confirmation of a plan,
the debtor shall file:
(i) a schedule of property not listed
in the final report and account acquired after
the filing of the petition but before
conversion, except if the case is converted
from chapter 13 to chapter 7 and 348(f)(2)
does not apply;
(ii) a schedule of unpaid debts not
listed in the final report and account incurred
after confirmation but before the conversion;
and
(iii) a schedule of executory
contracts and unexpired leases entered into
or assumed after the filing of the petition but
before conversion.
(D) Transmission to United States Trustee.
The clerk shall forthwith transmit to the United
States trustee a copy of every schedule filed
pursuant to Rule 1019(5).
* * * * *

Rule 1020. Election to be Considered a Small Business
in a Chapter 11 Reorganization Case

In a chapter 11 reorganization case, a debtor that is
a small business may elect to be considered a small
business by filing a written statement of election not later
than 60 days after the date of the order for relief.
Rule 2002. Notices to Creditors, Equity Security
Holders, United States, and United States Trustee

(a) TWENTY-DAY NOTICES TO PARTIES IN
INTEREST. Except as provided in subdivisions (h), (i),
and (l) of this rule, the clerk, or some other person as the
court may direct, shall give the debtor, the trustee, all
creditors and indenture trustees at least 20 days' notice by
mail of:
(1) the meeting of creditors under 341 or
1104(b) of the Code;
* * * * *
(n) CAPTION. The caption of every notice given
under this rule shall comply with Rule 1005. The caption
of every notice required to be given by the debtor to a
creditor shall include the information required to be in the
notice by 342(c) of the Code.
* * * * *
Rule 2007.1. Appointment of Trustee
or Examiner in a Chapter 11 Reorganization Case

(a) ORDER TO APPOINT TRUSTEE OR
EXAMINER. In a chapter 11 reorganization case, a motion
for an order to appoint a trustee or an examiner under
1104(a) or 1104(c) of the Code shall be made in
accordance with Rule 9014.
(b) ELECTION OF TRUSTEE.
(1) Request for an Election. A request to
convene a meeting of creditors for the purpose of
electing a trustee in a chapter 11 reorganization case
shall be filed and transmitted to the United States
trustee in accordance with Rule 5005 within the
time prescribed by 1104(b) of the Code. Pending
court approval of the person elected, any person
appointed by the United States trustee under
1104(d) and approved in accordance with
subdivision (c) of this rule shall serve as trustee.
(2) Manner of Election and Notice. An
election of a trustee under 1104(b) of the Code
shall be conducted in the manner provided in Rules
2003(b)(3) and 2006. Notice of the meeting of
creditors convened under 1104(b) shall be given
as provided in Rule 2002. The United States trustee
shall preside at the meeting. A proxy for the
purpose of voting in the election may be solicited
only by a committee of creditors appointed under
1102 of the Code or by any other party entitled to
solicit a proxy pursuant to Rule 2006.
(3) Report of Election and Resolution of
Disputes.
(A) Report of Undisputed Election. If
the election is not disputed, the United States
trustee shall promptly file a report of the
election, including the name and address of
the person elected and a statement that the
election is undisputed. The United States
trustee shall file with the report an
application for approval of the appointment
in accordance with subdivision (c) of this
rule. The report constitutes appointment of
the elected person to serve as trustee, subject
to court approval, as of the date of entry of
the order approving the appointment.
(B) Disputed Election. If the election
is disputed, the United States trustee shall
promptly file a report stating that the
election is disputed, informing the court of
the nature of the dispute, and listing the
name and address of any candidate elected
under any alternative presented by the
dispute. The report shall be accompanied by
a verified statement by each candidate
elected under each alternative presented by
the dispute, setting forth the person's
connections with the debtor, creditors, any
other party in interest, their respective
attorneys and accountants, the United States
trustee, and any person employed in the
office of the United States trustee. Not later
than the date on which the report of the
disputed election is filed, the United States
trustee shall mail a copy of the report and
each verified statement to any party in
interest that has made a request to convene
a meeting under 1104(b) or to receive a
copy of the report, and to any committee
appointed under 1102 of the Code. Unless
a motion for the resolution of the dispute is
filed not later than 10 days after the United
States trustee files the report, any person
appointed by the United States trustee under
1104(d) and approved in accordance with
subdivision (c) of this rule shall serve as
trustee. If a motion for the resolution of the
dispute is timely filed, and the court
determines the result of the election and
approves the person elected, the report will
constitute appointment of the elected person
as of the date of entry of the order
approving the appointment.
(c) APPROVAL OF APPOINTMENT. An order
approving the appointment of a trustee elected under
1104(b) or appointed under 1104(d), or the appointment
of an examiner under 1104(d) of the Code, shall be made
on application of the United States trustee. The application
shall state the name of the person appointed and, to the best
of the applicant's knowledge, all the person's connections
with the debtor, creditors, any other parties in interest, their
respective attorneys and accountants, the United States
trustee, and persons employed in the office of the United
States trustee. Unless the person has been elected under
1104(b), the application shall state the names of the
parties in interest with whom the United States trustee
consulted regarding the appointment. The application shall
be accompanied by a verified statement of the person
appointed setting forth the person's connections with the
debtor, creditors, any other party in interest, their respective
attorneys and accountants, the United States trustee, and
any person employed in the office of the United States
trustee.
Rule 3014. Election Under 1111(b) by Secured Creditor
in Chapter 9 Municipality or Chapter 11 Reorganization
Case

An election of application of 1111(b)(2) of the
Code by a class of secured creditors in a chapter 9 or 11
case may be made at any time prior to the conclusion of the
hearing on the disclosure statement or within such later
time as the court may fix. If the disclosure statement is
conditionally approved pursuant to Rule 3017.1, and a final
hearing on the disclosure statement is not held, the election
of application of 1111(b)(2) may be made not later than
the date fixed pursuant to Rule 3017.1(a)(2) or another date
the court may fix. The election shall be in writing and
signed unless made at the hearing on the disclosure
statement. The election, if made by the majorities required
by 1111(b)(1)(A)(i), shall be binding on all members of
the class with respect to the plan.

Rule 3017. Court Consideration of Disclosure
Statement in Chapter 9 Municipality and Chapter 11
Reorganization Cases

(a) HEARING ON DISCLOSURE STATEMENT
AND OBJECTIONS. Except as provided in Rule 3017.1,
after a disclosure statement is filed in accordance with Rule
3016(b), the court shall hold a hearing on at least 25 days'
notice to the debtor, creditors, equity security holders and
other parties in interest as provided in Rule 2002 to
consider the disclosure statement and any objections or
modifications thereto. The plan and the disclosure
statement shall be mailed with the notice of the hearing
only to the debtor, any trustee or committee appointed
under the Code, the Securities and Exchange Commission,
and any party in interest who requests in writing a copy of
the statement or plan. Objections to the disclosure
statement shall be filed and served on the debtor, the
trustee, any committee appointed under the Code, and any
other entity designated by the court, at any time before the
disclosure statement is approved or by an earlier date as the
court may fix. In a chapter 11 reorganization case, every
notice, plan, disclosure statement, and objection required to
be served or mailed pursuant to this subdivision shall be
transmitted to the United States trustee within the time
provided in this subdivision.
(b) DETERMINATION ON DISCLOSURE
STATEMENT. Following the hearing the court shall
determine whether the disclosure statement should be
approved.
(c) DATES FIXED FOR VOTING ON PLAN AND
CONFIRMATION. On or before approval of the disclosure
statement, the court shall fix a time within which the
holders of claims and interests may accept or reject the plan
and may fix a date for the hearing on confirmation.
(d) TRANSMISSION AND NOTICE TO UNITED
STATES TRUSTEE, CREDITORS, AND EQUITY
SECURITY HOLDERS. Upon approval of a disclosure
statement, - except to the extent that the court orders
otherwise with respect to one or more unimpaired classes of
creditors or equity security holders - the debtor in
possession, trustee, proponent of the plan, or clerk as the
court orders shall mail to all creditors and equity security
holders, and in a chapter 11 reorganization case shall
transmit to the United States trustee,
(1)the plan or a court-approved summary of the
plan;
(2)the disclosure statement approved by the
court;
(3)notice of the time within which acceptances
and rejections of the plan may be filed;
and
(4)any other information as the court may
direct, including any court opinion approving
the disclosure statement or a court-approved
summary of the opinion.
In addition, notice of the time fixed for filing objections
and the hearing on confirmation shall be mailed to all
creditors and equity security holders in accordance with
Rule 2002(b), and a form of ballot conforming to the
appropriate Official Form shall be mailed to creditors and
equity security holders entitled to vote on the plan. If the
court opinion is not transmitted or only a summary of the
plan is transmitted, the court opinion or the plan shall be
provided on request of a party in interest at the plan
proponent's expense. If the court orders that the disclosure
statement and the plan or a summary of the plan shall not
be mailed to any unimpaired class, notice that the class is
designated in the plan as unimpaired and notice of the name
and address of the person from whom the plan or summary
of the plan and disclosure statement may be obtained upon
request and at the plan proponent's expense, shall be mailed
to members of the unimpaired class together with the notice
of the time fixed for filing objections to and the hearing on
confirmation. For the purposes of this subdivision,
creditors and equity security holders shall include holders
of stock, bonds, debentures, notes, and other securities of
record on the date the order approving the disclosure
statement is entered or another date fixed by the court, for
cause, after notice and a hearing.
(e) TRANSMISSION TO BENEFICIAL HOLDERS
OF SECURITIES. At the hearing held pursuant to
subdivision (a) of this rule, the court shall consider the
procedures for transmitting the documents and information
required by subdivision (d) of this rule to beneficial holders
of stock, bonds, debentures, notes, and other securities,
determine the adequacy of the procedures, and enter any
orders the court deems appropriate.

Rule 3017.1. Court Consideration of
Disclosure Statement in a Small Business Case

(a) CONDITIONAL APPROVAL OF
DISCLOSURE STATEMENT. If the debtor is a small
business and has made a timely election to be considered a
small business in a chapter 11 case, the court may, on
application of the plan proponent, conditionally approve a
disclosure statement filed in accordance with Rule 3016(b).
On or before conditional approval of the disclosure
statement, the court shall:
(1) fix a time within which the holders of
claims and interests may accept or reject the plan;
(2) fix a time for filing objections to the
disclosure statement;
(3) fix a date for the hearing on final
approval of the disclosure statement to be held if a
timely objection is filed; and
(4) fix a date for the hearing on
confirmation.
(b) APPLICATION OF RULE 3017. Rule 3017(a),
(b), (c), and (e) do not apply to a conditionally approved
disclosure statement. Rule 3017(d) applies to a
conditionally approved disclosure statement, except that
conditional approval is considered approval of the
disclosure statement for the purpose of applying Rule
3017(d).
(c) FINAL APPROVAL.
(1) Notice. Notice of the time fixed for
filing objections and the hearing to consider final
approval of the disclosure statement shall be given
in accordance with Rule 2002 and may be combined
with notice of the hearing on confirmation of the
plan.
(2) Objections. Objections to the disclosure
statement shall be filed, transmitted to the United
States trustee, and served on the debtor, the trustee,
any committee appointed under the Code and any
other entity designated by the court at any time
before final approval of the disclosure statement or
by an earlier date as the court may fix.
(3) Hearing. If a timely objection to the
disclosure statement is filed, the court shall hold a
hearing to consider final approval before or
combined with the hearing on confirmation of the
plan.
Rule 3018. Acceptance or Rejection of Plan in a
Chapter 9 Municipality or a Chapter 11
Reorganization Case

(a) ENTITIES ENTITLED TO ACCEPT OR
REJECT PLAN; TIME FOR ACCEPTANCE OR
REJECTION. A plan may be accepted or rejected in
accordance with 1126 of the Code within the time fixed
by the court pursuant to Rule 3017. Subject to subdivision
(b) of this rule, an equity security holder or creditor whose
claim is based on a security of record shall not be entitled
to accept or reject a plan unless the equity security holder
or creditor is the holder of record of the security on the
date the order approving the disclosure statement is entered
or on another date fixed by the court, for cause, after notice
and a hearing. For cause shown, the court after notice and
hearing may permit a creditor or equity security holder to
change or withdraw an acceptance or rejection.
Notwithstanding objection to a claim or interest, the court
after notice and hearing may temporarily allow the claim or
interest in an amount which the court deems proper for the
purpose of accepting or rejecting a plan.
* * * * *
Rule 3021. Distribution Under Plan
After confirmation of a plan, distribution shall be
made to creditors whose claims have been allowed, to
interest holders whose interests have not been disallowed,
and to indenture trustees who have filed claims pursuant to
Rule 3003(c)(5) that have been allowed. For the purpose
of this rule, creditors include holders of bonds, debentures,
notes, and other debt securities, and interest holders include
the holders of stock and other equity securities, of record at
the time of commencement of distribution unless a different
time is fixed by the plan or the order confirming the plan.
Rule 8001. Manner of Taking Appeal;
Voluntary Dismissal

(a) APPEAL AS OF RIGHT; HOW TAKEN. An
appeal from a judgment, order, or decree of a bankruptcy
judge to a district court or bankruptcy appellate panel as
permitted by 28 U.S.C. 158(a)(1) or (a)(2) shall be taken
by filing a notice of appeal with the clerk within the time
allowed by Rule 8002. An appellant's failure to take any
step other than timely filing a notice of appeal does not
affect the validity of the appeal, but is ground only for such
action as the district court or bankruptcy appellate panel
deems appropriate, which may include dismissal of the
appeal. The notice of appeal shall (1) conform substantially
to the appropriate Official Form, (2) contain the names of
all parties to the judgment, order, or decree appealed from
and the names, addresses, and telephone numbers of their
respective attorneys, and (3) be accompanied by the
prescribed fee. Each appellant shall file a sufficient number
of copies of the notice of appeal to enable the clerk to
comply promptly with Rule 8004.
(b) APPEAL BY LEAVE; HOW TAKEN. An
appeal from an interlocutory judgment, order, or decree of
a bankruptcy judge as permitted by 28 U.S.C. 158(a)(3)
shall be taken by filing a notice of appeal, as prescribed in
subdivision (a) of this rule, accompanied by a motion for
leave to appeal prepared in accordance with Rule 8003 and
with proof of service in accordance with Rule 8008.
* * * * *
(e) ELECTION TO HAVE APPEAL HEARD BY
DISTRICT COURT INSTEAD OF BANKRUPTCY
APPELLATE PANEL. An election to have an appeal heard
by the district court under 28 U.S.C. 158(c)(1) may be
made only by a statement of election contained in a
separate writing filed within the time prescribed by 28
U.S.C. 158(c)(1).
Rule 8002. Time for Filing Notice of
Appeal

* * * * *
(c) EXTENSION OF TIME FOR APPEAL.
(1) The bankruptcy judge may extend the
time for filing the notice of appeal by any party,
unless the judgment, order, or decree appealed from:
(A) grants relief from an automatic
stay under 362, 922, 1201, or 1301;
(B) authorizes the sale or lease of
property or the use of cash collateral under
363;
(C) authorizes the obtaining of credit
under 364;
(D) authorizes the assumption or
assignment of an executory contract or
unexpired lease under 365;
(E) approves a disclosure statement
under 1125; or
(F) confirms a plan under 943,
1129, 1225, or 1325 of the Code.
(2) A request to extend the time for filing a
notice of appeal must be made by written motion
filed before the time for filing a notice of appeal has
expired, except that such a motion filed not later
than 20 days after the expiration of the time for
filing a notice of appeal may be granted upon a
showing of excusable neglect. An extension of time
for filing a notice of appeal may not exceed 20 days
from the expiration of the time for filing a notice of
appeal otherwise prescribed by this rule or 10 days
from the date of entry of the order granting the
motion, whichever is later.
Rule 8020. Damages and Costs for
Frivolous Appeal

If a district court or bankruptcy appellate panel
determines that an appeal from an order, judgment, or
decree of a bankruptcy judge is frivolous, it may, after a
separately filed motion or notice from the district court or
bankruptcy appellate panel and reasonable opportunity to
respond, award just damages and single or double costs to
the appellee.
Rule 9011. Signing of Papers; Representations to the
Court; Sanctions; Verification and Copies of Papers

(a) SIGNATURE. Every petition, pleading, written
motion, and other paper, except a list, schedule, or
statement, or amendments thereto, shall be signed by at
least one attorney of record in the attorney's individual
name. A party who is not represented by an attorney shall
sign all papers. Each paper shall state the signer's address
and telephone number, if any. An unsigned paper shall be
stricken unless omission of the signature is corrected
promptly after being called to the attention of the attorney
or party.
(b) REPRESENTATIONS TO THE COURT. By
presenting to the court (whether by signing, filing,
submitting, or later advocating) a petition, pleading, written
motion, or other paper, an attorney or unrepresented party
is certifying that to the best of the person's knowledge,
information, and belief, formed after an inquiry reasonable
under the circumstances, -
(1) it is not being presented for any
improper purpose, such as to harass or to cause
unnecessary delay or needless increase in the cost of
litigation;
(2) the claims, defenses, and other legal
contentions therein are warranted by existing law or
by a nonfrivolous argument for the extension,
modification, or reversal of existing law or the
establishment of new law;
(3) the allegations and other factual
contentions have evidentiary support or, if
specifically so identified, are likely to have
evidentiary support after a reasonable opportunity
for further investigation or discovery; and
(4) the denials of factual contentions are
warranted on the evidence or, if specifically so
identified, are reasonably based on a lack of
information or belief.
(c) SANCTIONS. If, after notice and a reasonable
opportunity to respond, the court determines that
subdivision (b) has been violated, the court may, subject to
the conditions stated below, impose an appropriate sanction
upon the attorneys, law firms, or parties that have violated
subdivision (b) or are responsible for the violation.
(1) How Initiated.
(A) By Motion. A motion for
sanctions under this rule shall be made
separately from other motions or requests
and shall describe the specific conduct
alleged to violate subdivision (b). It shall be
served as provided in Rule 7004. The
motion for sanctions may not be filed with
or presented to the court unless, within 21
days after service of the motion (or such
other period as the court may prescribe), the
challenged paper, claim, defense, contention,
allegation, or denial is not withdrawn or
appropriately corrected, except that this
limitation shall not apply if the conduct
alleged is the filing of a petition in violation
of subdivision (b). If warranted, the court
may award to the party prevailing on the
motion the reasonable expenses and
attorney's fees incurred in presenting or
opposing the motion. Absent exceptional
circumstances, a law firm shall be held
jointly responsible for violations committed
by its partners, associates, and employees.
(B) On Court's Initiative. On its
own initiative, the court may enter an order
describing the specific conduct that appears
to violate subdivision (b) and directing an
attorney, law firm, or party to show cause
why it has not violated subdivision (b) with
respect thereto.
(2) Nature of Sanction; Limitations. A
sanction imposed for violation of this rule shall be
limited to what is sufficient to deter repetition of
such conduct or comparable conduct by others
similarly situated. Subject to the limitations in
subparagraphs (A) and (B), the sanction may consist
of, or include, directives of a nonmonetary nature,
an order to pay a penalty into court, or, if imposed
on motion and warranted for effective deterrence, an
order directing payment to the movant of some or
all of the reasonable attorneys' fees and other
expenses incurred as a direct result of the violation.
(A) Monetary sanctions may not be
awarded against a represented party for a
violation of subdivision (b)(2).
(B) Monetary sanctions may not be
awarded on the court's initiative unless the
court issues its order to show cause before a
voluntary dismissal or settlement of the
claims made by or against the party which
is, or whose attorneys are, to be sanctioned.
(3) Order. When imposing sanctions, the
court shall describe the conduct determined to
constitute a violation of this rule and explain the
basis for the sanction imposed.
(d) INAPPLICABILITY TO DISCOVERY.
Subdivisions (a) through (c) of this rule do not apply to
disclosures and discovery requests, responses, objections,
and motions that are subject to the provisions of Rules 7026
through 7037.
(e) VERIFICATION. Except as otherwise
specifically provided by these rules, papers filed in a case
under the Code need not be verified. Whenever verification
is required by these rules, an unsworn declaration as
provided in 28 U.S.C. 1746 satisfies the requirement of
verification.
(f) COPIES OF SIGNED OR VERIFIED PAPERS.
When these rules require copies of a signed or verified
paper, it shall suffice if the original is signed or verified
and the copies are conformed to the original.
Rule 9015. Jury Trials

(a) APPLICABILITY OF CERTAIN FEDERAL
RULES OF CIVIL PROCEDURE. Rules 38, 39, and 47-51
F.R.Civ.P., and Rule 81(c) F.R.Civ.P. insofar as it applies
to jury trials, apply in cases and proceedings, except that a
demand made pursuant to Rule 38(b) F.R.Civ.P. shall be
filed in accordance with Rule 5005.
(b) CONSENT TO HAVE TRIAL CONDUCTED
BY BANKRUPTCY JUDGE. If the right to a jury trial
applies, a timely demand has been filed pursuant to Rule
38(b) F.R.Civ.P., and the bankruptcy judge has been
specially designated to conduct the jury trial, the parties
may consent to have a jury trial conducted by a bankruptcy
judge under 28 U.S.C. 157(e) by jointly or separately
filing a statement of consent within any applicable time
limits specified by local rule.
Rule 9035. Applicability of Rules in Judicial
Districts in Alabama and North Carolina

In any case under the Code that is filed in or
transferred to a district in the State of Alabama or the State
of North Carolina and in which a United States trustee is
not authorized to act, these rules apply to the extent that
they are not inconsistent with any federal statute effective
in the case.