Page:United States Statutes at Large Volume 60 Part 1.djvu/440

 60 STAT.] 79TH CONG., 2D SESS.-CH. 532-JULY 1, 1946 thereof, on account of the securities affected by the plan, or to enforce any lien or to enforce the levy of taxes or assessments for the payment of obligations under any such securities, or any suit or process tO levy upon or enforce against any property acquired by the petitioner through foreclosure of any such tax lien or special assessment lien, except where rights have become vested, and may enter an interlocutory decree providing that the plan shall be tem- porarily operative with respect to all securities affected thereby and that the payment of the principal or interest, or both, of such secu- rities shall pe temporarily postponed or extended or otherwise read- justed in the same manner and upon the same terms as if such plan had been fipally confirmed and put into effect, and upon the entry of such decree the principal or interest, or both, of such securities which have otherwise become due, or which would otherwise become due, shall not be or become due or payable, and the payment of all such securities shall be postponed during the period in which such decree shall remain in force, but shall not, by any order or decree, in the proceeding or otherwise, interfere with (a) any of the political or governmentaf powers of the petitioner; or (b) any of the prop- erty or revenues of the petitioner necessary for essential govern- mental purl)Oses; or (c) any income-producing property, unless the plan of composition so provides. "Any agency or instrumentality referred to in section 81 of this chapter ma- file a petition for a preliminary stay with the court referred to in section 83 (a) stating (a) that the petitioner is insolvent or unable to meet its debts as they mature; (b) that it desires to effect a plan for the composition of its debts, a copy of which is filed and submitted vith the petition; (c) that a creditor of the petitioner holding a security affected by the plan or a person claiming to be such a creditor (naming him and giving his address and the name and address of his attorney of record, if any), is attempting or threatening to obtain payment of said security in preference to other creditors by means of the commencement or continuation of a suit or process of the class hereinl)efore in this section 83 (c) described; (d) that efforts are being made in good faith to the end that creditors of the petitioner owning not less than 51 per centum in amount of the securities affected by the plan (excluding, however, any such securities owned held, or controlled bY the petitioner) shall accept it in writing; (e) that there is a reasonable prospect of such acceptance within a reasonable time; (f) that upOn such acceptance the petitioner intends to file a petition under section 83 (a) of this chapter; and (g) that the petitioner prays that the judge will upon notice enjoin or stay the commencement or continuatior of said suit or process. A single petition may seek the preliminary stay of several suits or processes brought or threatened by the same or different creditors or persons claiming to be creditors. The petition shall be accompanied by the filing fee required in section 83 (a) of this chapter, unless such fee shall have been paid upon the filing of an earlier petition for a preliminary stay involving the same plan, and nO further fee shall be required upon the subsequent filing of a petitiorn under said section 83 (a). Upon such petition the judge shall fix a time and place for hearing and direct that notice thereof shall be given in such manner as he shall prescribe to said creditor or person claining to be a creditor and to any other person deemed by him to be interested. After such hearings, and upon being satisfied of the truth of the allegations of the petition, the judge may, m his discretion, except where rights have become vested, enjoin or stay the commence- ment and continuation of said suit or process until a date fixed by him in his order not exceeding sixty days from the date of entry thereof. The judge shall retain jurisdiction to vacate said injunction or stay, 413 Preliminary stay. Ante, p. 409. Ante, p. 410. Filing fee. Hearings.

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