Page:United States Statutes at Large Volume 90 Part 1.djvu/367

 PUBLIC LAW 94-260—APR. 8, 1976

90 STAT. 317

to control, by legislation or otherwise, any municipality or any political subdivision of or in suoh. State in the exercise of its political or governmental powers, including expenditures therefor: Provided, howeveryTh&t no State law prescribing a method of composition of indebtedness of such agencies shall be binding upon any creditor who does not consent to such composition, and no judgment shall be entered under such State law which would bind a creditor to such composition without his consent. "SEC. 84. ELIGIBILITY TOR RELIEF,—Any State's political subdivision 11 USC 404. or public agency or instrumentality, which is generally authorized to file a petition under this chapter by the legislature, or by a governmental officer or organization empowered by Stata law to authorize the filing of a petition, is eligible for relief under this chapter if it is insolvent or unable to meet its debts as they mature, and desires to effect a plan to adjust its debts. An entity is not eligible for relief under this Conditions. chapter unless— "(1) it has successfully negotiated a plan of adjustment of its debts with creditors holding at least a majority in amount of the claims of each class which are claims affected by that plan; "(2) it has negotiated in good faith with its creditors and has failed to obtain, with respect to a plan of adjustment of its debts, the agreement of creditors holding at least a majority in amount of the claims of each class which are claims affected by that plan; "(3) such negotiation is impracticable; or "(4) it has a reasonable fear that a creditor may attempt to obtain a preference. "SEC. 85. PETITION AND PROCEEDINGS RELATING TO PETITION.— 11 USC 405. "(a) PETITION,—An entity eligible under section 84 may file a petition for relief under this chapter. In the case of an unincorporated tax or special assessment district having no officials of its own, the petition may be filed by its governing authority or the board or body having authority to levy taxes or assessments to meet the obligations of the district. Any party in interest may file an answer to the petition Notice, with the court, not later than 15 days after the publication of notice publication. required by subsection (d) is completed, objecting to the filing of the petition. Upon the filing of such an answer, the court may dismiss the Notice and petition after hearing on notice if the petitioner did not file the petition hearing. in good faith, or if the petition does not meet the requirements of this chapter. The court shall not, on account of an appeal from a finding of jurisdiction, delay any proO/Ceding under this chapter in ih^ 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 shall not affect the validity of any certificate of indebtedness authorized by the court and issued in such case. " (b) LIST.—The petitioner shall file with the court a list of the petitioner's creditors, insofar as practicable. The list shall include for each known creditor, to the extent practicable, the name of the creditor, the address of the creditor so far as known to the petitioner, and a description of any claim of the creditor, showing the amount and character of the claim, the nature of any security for the claim, and whether the claim is disputed, contingent or unliquidated as to amount. If an identification of any of the petitioner's creditors is impracticable, the petitioner shall state the reason such identification is impracticable and the character of the claims of the creditors involved. The petitioner shall supplement the list afi creditors who were unknown or unidentified at the time the list was filed become known or identified to the petitioner. If the list is not filed with the petition, the petitioner shall file the list at such later time as the court, upon its own motion or upon application of the petitioner, sets.

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