Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

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TITLE 11–BANKRUPTCY

CHAPTER 9–ADJUSTMENT OF DEBTS OF A MUNICIPALITY

Sub Chapter – General Provisions

Sec. 902. Definitions for this chapter


    In this chapter--
        (1) ``property of the estate'', when used in a section that is 
    made applicable in a case under this chapter by section 103(e) or 
    901 of this title, means property of the debtor;
        (2) ``special revenues'' means--
            (A) receipts derived from the ownership, operation, or 
        disposition of projects or systems of the debtor that are 
        primarily used or intended to be used primarily to provide 
        transportation, utility, or other services, including the 
        proceeds of borrowings to finance the projects or systems;
            (B) special excise taxes imposed on particular activities or 
        transactions;
            (C) incremental tax receipts from the benefited area in the 
        case of tax-increment financing;
            (D) other revenues or receipts derived from particular 
        functions of the debtor, whether or not the debtor has other 
        functions; or
            (E) taxes specifically levied to finance one or more 
        projects or systems, excluding receipts from general property, 
        sales, or income taxes (other than tax-increment financing) 
        levied to finance the general purposes of the debtor;

        (3) ``special tax payer'' means record owner or holder of legal 
    or equitable title to real property against which a special 
    assessment or special tax has been levied the proceeds of which are 
    the sole source of payment of an obligation issued by the debtor to 
    defray the cost of an improvement relating to such real property;
        (4) ``special tax payer affected by the plan'' means special tax 
    payer with respect to whose real property the plan proposes to 
    increase the proportion of special assessments or special taxes 
    referred to in paragraph (2) of this section assessed against such 
    real property; and
        (5) ``trustee'', when used in a section that is made applicable 
    in a case under this chapter by section 103(e) or 901 of this title, 
    means debtor, except as provided in section 926 of this title.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2622; Pub. L. 98-353, title III, 
Sec. 491, July 10, 1984, 98 Stat. 383; Pub. L. 100-597, Sec. 4, Nov. 3, 
1988, 102 Stat. 3028.)


                      Historical and Revision Notes

                         legislative statements

    Section 902(2) of the Senate amendment is deleted since the 
bankruptcy court will have jurisdiction over all cases under chapter 9. 
The concept of a claim being materially and adversely affected reflected 
in section 902(1) of the Senate amendment has been deleted and replaced 
with the new concept of ``impairment'' set forth in section 1124 of the 
House amendment and incorporated by reference into chapter 9.


                        senate report no. 95-989

    There are six definitions for use in chapter 9. Paragraph (1) 
defines what claims are included in a chapter 9 case and adopts the 
definition now found in section 81(1) [section 401(1) of former title 
11]. All claims against the petitioner generally will be included, with 
one significant exception. Municipalities are authorized, under section 
103(c) of the Internal Revenue Code of 1954, as amended [title 26], to 
issue tax-exempt industrial development revenue bonds to provide for the 
financing of certain projects for privately owned companies. The bonds 
are sold on the basis of the credit of the company on whose behalf they 
are issued, and the principal, interest, and premium, if any, are 
payable solely from payments made by the company to the trustee under 
the bond indenture and do not constitute claims on the tax revenues or 
other funds of the issuing municipalities. The municipality merely acts 
as the vehicle to enable the bonds to be issued on a tax-exempt basis. 
Claims that arise by virtue of these bonds are not among the claims 
defined by this paragraph and amounts owed by private companies to the 
holders of industrial development revenue bonds are not to be included 
among the assets of the municipality that would be affected by the plan. 
See Cong. Record, 94th Cong., 1st Sess. H.R. 12073 (statement by Mr. Don 
Edwards, floor manager of the bill in the House). Paragraph (2) defines 
the court which means the federal district court or federal district 
judge before which the case is pending. Paragraph (3) [enacted as (1)] 
specifies that when the term ``property of the estate'' is used in a 
section in another chapter made applicable in chapter 9 cases, the term 
means ``property of the debtor''. Paragraphs (4) and (5) [enacted as (2) 
and (3)] adopt the definition of ``special taxpayer affected by the 
plan'' that appears in current sections 81(10) and 81(11) of the 
Bankruptcy Act [section 401(10) and (11) of former title 11]. Paragraph 
(6) [enacted as (4)] provides that ``trustee'' means ``debtor'' when 
used in conjunction with chapter 9.


                         house report no. 95-595

    There are only four definitions for use only in chapter 9. The first 
specifies that when the term ``property of the estate'' is used in a 
section in another chapter made applicable in chapter 9 cases, the term 
will mean ``property of the debtor''. Paragraphs (2) and (3) adopt the 
definition of ``special taxpayer affected by the plan'' that appears in 
current sections 81(10) and 81(11) [section 401(10) and (11) of former 
title 11]. Paragraph (4) provides for ``trustee'' the same treatment as 
provided for ``property of the estate'', specifying that it means 
``debtor'' when used in conjunction with chapter 9.


                               Amendments

    1988--Pars. (2) to (5). Pub. L. 100-597 added par. (2) and 
redesignated former pars. (2) to (4) as (3) to (5), respectively.
    1984--Par. (2). Pub. L. 98-353 substituted ``legal or equitable 
title to real property against which a special assessment or special tax 
has been levied'' for ``title, legal or equitable, to real property 
against which has been levied a special assessment or special tax''.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-597 effective Nov. 3, 1988, but not 
applicable to any case commenced under this title before that date, see 
section 12 of Pub. L. 100-597, set out as a note under section 101 of 
this title.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-353 effective with respect to cases filed 90 
days after July 10, 1984, see section 552(a) of Pub. L. 98-353, set out 
as a note under section 101 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 901 of this title.



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Legal Resource Center: United States Code TITLE 11 Filing Bankruptcy Forms Software