diff --git a/server/confpars.c b/server/confpars.c
index 15e8ec78..28d7955e 100644
--- a/server/confpars.c
+++ b/server/confpars.c
@@ -43,7 +43,7 @@
 
 #ifndef lint
 static char copyright[] =
-"$Id: confpars.c,v 1.141 2001/04/27 22:23:44 mellon Exp $ Copyright (c) 1995-2001 The Internet Software Consortium.  All rights reserved.\n";
+"$Id: confpars.c,v 1.142 2001/04/30 22:38:32 mellon Exp $ Copyright (c) 1995-2001 The Internet Software Consortium.  All rights reserved.\n";
 #endif /* not lint */
 
 #include "dhcpd.h"
@@ -2654,8 +2654,8 @@ int parse_lease_declaration (struct lease **lp, struct parse *cfile)
 					break;
 				}
 				if (lease -> billing_class)
-					unbill_class (lease,
-						      lease -> billing_class);
+				    class_dereference (&lease -> billing_class,
+						       MDL);
 				find_class (&class, val, MDL);
 				if (!class)
 					parse_warn (cfile,
@@ -2663,8 +2663,8 @@ int parse_lease_declaration (struct lease **lp, struct parse *cfile)
 				parse_semi (cfile);
 			} else if (token == SUBCLASS) {
 				if (lease -> billing_class)
-					unbill_class (lease,
-						      lease -> billing_class);
+				    class_dereference (&lease -> billing_class,
+						       MDL);
 				parse_class_declaration
 					(&class,
 					 cfile, (struct group *)0, 3);
@@ -2674,7 +2674,8 @@ int parse_lease_declaration (struct lease **lp, struct parse *cfile)
 					skip_to_semi (cfile);
 			}
 			if (class) {
-				bill_class (lease, class);
+				class_reference (&lease -> billing_class,
+						 class, MDL);
 				class_dereference (&class, MDL);
 			}
 			break;
diff --git a/server/mdb.c b/server/mdb.c
index 281d6e7b..447838c7 100644
--- a/server/mdb.c
+++ b/server/mdb.c
@@ -43,7 +43,7 @@
 
 #ifndef lint
 static char copyright[] =
-"$Id: mdb.c,v 1.65 2001/04/27 21:30:59 mellon Exp $ Copyright (c) 1996-2000 The Internet Software Consortium.  All rights reserved.\n";
+"$Id: mdb.c,v 1.66 2001/04/30 22:38:34 mellon Exp $ Copyright (c) 1996-2000 The Internet Software Consortium.  All rights reserved.\n";
 #endif /* not lint */
 
 #include "dhcpd.h"
@@ -1858,7 +1858,7 @@ int lease_enqueue (struct lease *comp)
 void lease_instantiate (const unsigned char *val, unsigned len,
 			struct lease *lease)
 {
-
+	struct class *class;
 	/* XXX If the lease doesn't have a pool at this point, it's an
 	   XXX orphan, which we *should* keep around until it expires,
 	   XXX but which right now we just forget. */
@@ -1882,6 +1882,22 @@ void lease_instantiate (const unsigned char *val, unsigned len,
 		hw_hash_add (lease);
 	}
 	
+	/* If the lease has a billing class, set up the billing. */
+	if (lease -> billing_class) {
+		class = (struct class *)0;
+		class_reference (&class, lease -> billing_class, MDL);
+		class_dereference (&lease -> billing_class, MDL);
+		/* If the lease is available for allocation, the billing
+		   is invalid, so we don't keep it. */
+		if (lease -> binding_state == FTS_ACTIVE ||
+		    lease -> binding_state == FTS_EXPIRED ||
+		    lease -> binding_state == FTS_RELEASED ||
+		    lease -> binding_state == FTS_RESET ||
+		    lease -> binding_state == FTS_RESERVED ||
+		    lease -> binding_state == FTS_BOOTP)
+			bill_class (lease, class);
+		class_dereference (&class, MDL);
+	}
 	return;
 }