CHAPTER 9 ADMINISTRATION
Sub Chapter II General Provisions
Sec. 921. Petition and proceedings relating to petition
(a) Notwithstanding sections 109(d) and 301 of this title, a case
under this chapter concerning an unincorporated tax or special
assessment district that does not have such district's own officials is
commenced by the filing under section 301 of this title of a petition
under this chapter by such district's governing authority or the board
or body having authority to levy taxes or assessments to meet the
obligations of such district.
(b) The chief judge of the court of appeals for the circuit
embracing the district in which the case is commenced shall designate
the bankruptcy judge to conduct the case.
(c) After any objection to the petition, the court, after notice and
a hearing, may dismiss the petition if the debtor did not file the
petition in good faith or if the petition does not meet the requirements
of this title.
(d) If the petition is not dismissed under subsection (c) of this
section, the court shall order relief under this chapter.
(e) The court may not, on account of an appeal from an order for
relief, delay any proceeding under this chapter in the case in which the
appeal is being taken; nor shall any court order a stay of such
proceeding pending such appeal. The reversal on appeal of a finding of
jurisdiction does not affect the validity of any debt incurred that is
authorized by the court under section 364(c) or 364(d) of this title.
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2622; Pub. L. 98-353, title III,
Sec. 494, July 10, 1984, 98 Stat. 383.)
Historical and Revision Notes
Section 905 of the Senate amendment is incorporated as section
921(b) of the House amendment with the difference that the chief judge
of the circuit embracing the district in which the case is commenced
designates a bankruptcy judge to conduct the case in lieu of a district
judge as under present law. It is intended that a municipality may
commence a case in any district in which the municipality is located, as
under present law. Section 906 of the Senate amendment has been adopted
in substance in section 109(c) of the House amendment.
senate report no. 95-989
Section 905 [enacted as section 921(b)] adopts the procedures for
selection of the judge for the chapter 9 case as found in current
section 82(d) [section 402(d) of former title 11]. It is expected that
the large chapter 9 case might take up almost all the judicial time of
the presiding judge and involve very complex legal questions. Selection
should not be left to chance or the luck of the draw. This provision
will insure that calendar demands and levels of experience can be
considered in the selection of the judge in a chapter 9 case.
house report no. 95-595
Subsection (a) is derived from section 85(a) [section 405(a) of
former title 11], second sentence, of current law. There is no
substantive change in the law. The subsection permits a municipality
that does not have its own officers to be moved into chapter 9 by the
action of the body or board that has authority to levy taxes for the
Subsection (b) permits a party in interest to object to the filing
of the petition not later than 15 days after notice. This provision
tracks the third sentence of section 85(a) [section 405(a) of former
title 11], except that the provision for publication in section 85(a) is
left to the Rules (see Rule 9-14), and therefore the determinative date
is left less definite.
Subsection (c) permits the court to dismiss a petition not filed in
good faith or not filed in compliance with the requirements of the
chapter. This provision is the fourth sentence of section 85(a) [section
405(a) of former title 11].
Subsection (d) directs the court to order relief on the petition if
it does not dismiss the case under subsection (c).
Subsection (e) contains the fifth and sixth sentences of section
85(a) [section 405(a) of former title 11].
1984--Subsec. (a). Pub. L. 98-353, Sec. 494(c), substituted
``109(d)'' for ``109(c)''.
Subsec. (c). Pub. L. 98-353, Sec. 494(a), substituted ``any'' for
``an'', and ``petition if the debtor did not file the petition in good
faith'' for ``petition, if the debtor did not file the petition in good
Subsec. (d). Pub. L. 98-353, Sec. 494(b), (d), redesignated subsec.
(e) as (d) and substituted ``subsection (c)'' for ``subsection (d)''. No
former subsec. (d) had been enacted.
Subsecs. (e), (f). Pub. L. 98-353, Sec. 494(b), redesignated subsec.
(f) as (e). Former subsec. (e) redesignated (d).
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.