An Act to amend chapter IX of the Bankruptcy Act to provide by voluntary reorganization procedures for the adjustment of the debts of municipalities.

Summary

Grants a court of bankruptcy, under the Bankruptcy Act, authority to exercise exclusive jurisdiction for adjusting the debts of political subdivisions and public agencies and instrumentalities. States that the court may permit such petitioner to reject executory contracts and unexpired leases. Stipulates that unless the petitioner consents or the bankruptcy plan so provides, the court shall not, by any order, decree, or otherwise, interfere with: (1) any of the political or governmental powers of the petitioner, (2) any of the property or revenues of the petitioner, or (3) any income-producing property. Reserves to the various States power to control any municipality or political subdivision of or in such State in the exercise of its political or governmental powers, including expenditures therefor. Stipulates that any State's political subdivision or public agency or instrumentality is eligible for relief if it is insolvent or unable to meet its debts as they mature, and desires to effect a plan to adjust its debts. Sets forth judicial procedures governing the filing of the petition, proceedings, venue, fees, and notice. States that a petition filed pursuant to this Act shall operate as a stay of the commencement or the continuation of a judicial or other proceeding against the petitioner. Stipulates that a provision in a contract or lease which permits modification thereof because of the insolvency of the petitioner is not enforceable if any defaults in prior performance of the petitioner are cured and adequate assurance of future performance is provided. Authorizes the Court to refer any special fact to a referee in bankruptcy for consideration if the court finds that the condition of its docket is such that it cannot take testimony without unduly delaying the dispatch of other business pending in the court. Permits reimbursement for expenses incurred in connection with the case. Sets forth priorities for payment in advance prior to the payment of any distribution to creditors under a plan. Directs the petitioner to file a plan for the adjustment of debts. States that such plan may be confirmed only if it has been accepted in writing by or on behalf of creditors holding at least two-thirds in amount of the claims of each class. Permits any creditor affected by the plan or the Securities and Exchange Commission to file a complaint with the court objecting to the confirmation of the plan. States that the court shall confirm the plan if satisfied that the plan is fair, does not discriminate unfairly against any creditors, and meets other specified criteria. Discharges the petitioner from all claims against it provided for in the plan at the time of confirmation.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

3 official files

• Public Law (PDF)

  Public Law · EN · 9 April 1976

  ViewDownloadOpen at official source

• Conference report filed in House

  summary · EN · 22 March 1976

  Open at official source

• Introduced in House

  summary · EN · 7 November 1975

  Open at official source

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.