Page:United States Statutes at Large Volume 90 Part 1.djvu/365

 PUBLIC LAW 94-260—APR. 8, 1976

90 STAT. 315

Public Law 94-260 94th Congress An Act To amend chapter IX of the Bankruptcy Act to provide by voluntary reorganization procedures for the adjustment of the debts of municipalities.

Apr. 8, 1976 [H.R. 10624]

Whereas the Congress finds and declares this Act and proceedings thereunder providing for the composition of indebtedness of, or authorized by, municipalities to be within the subject of bankruptcies under article I, section 8, clause 4 of the United States u s e prec. title 1. Constitution; and Whereas the Congress finds that the impracticability of existing Federal bankruptcy remedies for use by municipalities increases the likelihood of their default and will aggravate the adverse effects thereof; and Whereas the Congress finds that the financial disruptions and dislocations resulting from default of such municipalities without availability of a Federal procedure to restructure their indebtedness in such fashion as to avoid continuing insolvency would have a substantial adverse effect on interstate commerce within the meaning of article I, section 8, clause 3 of the United States Constitution, by reason of the commercial importance of the municipalities involved. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That chapter IX Bankruptcy Act, amendments. of the Bankruptcy Act is amended to read as follows: 11 USC 401

"CHAPTER

IX

et seq.

"ADJUSTMENT OF DEBTS OF POLITICAL SUBDIVISIONS AND PUBLIC AGENCIES. AND INSTRUMENTALITIES "SEC.

81. CHAPTER IX DEFINITIONS.—As used in this chapter the 11 USC 401,

term— "(1) 'claim' includes all claims of whatever character against the petitioner or the property of the petitioner, whether or not such claims are provable under section 63 of this Act and whether 11 USC 103. secured or unsecured, liquidated or unliquidated as to amount, fixed or contingent; "(2) 'court' means court of bankruptcy in which the case is pending, or a judge of such court; "(3) 'creditor' means holder (including the United States, a State, or political subdivision or public agency or instrumentality of a State) of a claim against the petitioner; "(4) 'claim affected by the plan' means claim as to which the rights of its holder are proposed to be materially and adversely adjusted or modified by the plan; "(5) 'debt' means claim allowable under section 88(a); "(6) 'lien' means security interest in property, lien obtained on property by levy, sequestration, or other legal or equitable process, statutory or common law lien on property, or any other variety of charge against property to secure the performance of an obligation;

�