Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

The Center For Debt Management
Center4DebtManagement.com ... Always open 24 / 7

Note: For affordable legal assistance The Center For Debt Management highly recommends Standard Legal's Do-It-Yourself Bankruptcy Forms Software Kits. For credit repair services,
the most trusted law firm in America with over 15 years of experience is Lexington Law Firm.

For more bankruptcy help and bankruptcy alternatives, go to Bankruptcy Resources



TITLE 11–BANKRUPTCY

CHAPTER 9–ADJUSTMENT OF DEBTS OF A MUNICIPALITY

Sub Chapter – General Provisions

Sec. 903. Reservation of State power to control municipalities

   This chapter does not limit or impair the power of a State to 
control, by legislation or otherwise, a municipality of or in such State 
in the exercise of the political or governmental powers of such 
municipality, including expenditures for such exercise, but--
        (1) a State law prescribing a method of composition of 
    indebtedness of such municipality may not bind any creditor that 
    does not consent to such composition; and
        (2) a judgment entered under such a law may not bind a creditor 
    that does not consent to such composition.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2622; Pub. L. 98-353, title III, 
Sec. 492, July 10, 1984, 98 Stat. 383.)


                      Historical and Revision Notes

                         legislative statements

    Section 903 of the House amendment represents a stylistic revision 
of section 903 of the Senate amendment. To the extent section 903 of the 
House bill would have changed present law, such section is rejected.


                        senate report no. 95-989

    Section 903 is derived, with stylistic changes, from section 83 of 
current Chapter IX [section 403 of former title 11]. It sets forth the 
primary authority of a State, through its constitution, laws, and other 
powers, over its municipalities. The proviso in section 83, prohibiting 
State composition procedures for municipalities, is retained. Deletion 
of the provision would ``permit all States to enact their own versions 
of Chapter IX [chapter 9 of former title 11]'', Municipal Insolvency, 50 
Am.Bankr.L.J. 55, 65, which would frustrate the constitutional mandate 
of uniform bankruptcy laws. Constitution of the United States, Art. I, 
Sec. 8.
    This section provides that the municipality can consent to the 
court's orders in regard to use of its income or property. It is 
contemplated that such consent will be required by the court for the 
issuance of certificates of indebtedness under section 364(c). Such 
consent could extend to enforcement of the conditions attached to the 
certificates or the municipal services to be provided during the 
proceedings.


                               Amendments

    1984--Par. (2). Pub. L. 98-353 struck out ``to'' before ``that does 
not consent''.


                    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.



Back Index Next

Note: For affordable legal assistance The Center For Debt Management highly recommends Standard Legal's Do-It-Yourself Bankruptcy Forms Software Kits. For credit repair services,
the most trusted law firm in America with over 15 years of experience is Lexington Law Firm.

For more bankruptcy help and bankruptcy alternatives, go to Bankruptcy Resources

Go to Index of Related Articles and Resources!

Click Below To Check Out More Financial Resources

Return to Top

The Center For Debt Management™

Helping Consumers Save Money and Reduce Debt Is Our Only Business!™

We invite you to explore the sectors listed below. We promise that you'll find exceptional values, offers and resources in which to reduce your living expenses and to enjoy life!


Debt Management and Financial Services! The Internet's oldest and most comprehensive debt management agency! Resources for debt management, consumer credit counseling, debt consolidation, debt reduction settlements, legal aid, financial aid, loans and financing, credit repair, credit reports, insurance quotes, income sources, tax assistance, and more.

Established in 1989 and serving the online community since 1992!


This site was created and designed by Daniel A. Gelinas
Disclaimer and Privacy Policy      © Copyright  2007 "The Center For Debt Management"      Contact Us
Return to Top

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