Los Angeles Bankruptcy Attorney

TITLE 11 - BANKRUPTCY
CHAPTER 9 - ADJUSTMENT OF DEBTS OF A MUNICIPALITY
    SUBCHAPTER II - ADMINISTRATION

-HEAD-
    Sec. 921. Petition and proceedings relating to petition

-STATUTE-
      (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
    notwithstanding section 301(b).
      (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.

-SOURCE-
    (Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2622; Pub. L. 98-353, title
    III, Sec. 494, July 10, 1984, 98 Stat. 383; Pub. L. 109-8, title V,
    Sec. 501(a), Apr. 20, 2005, 119 Stat. 118.)


                       HISTORICAL AND REVISION NOTES                   

                          LEGISLATIVE STATEMENTS                      
      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 municipality.
      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].

                                AMENDMENTS                            
      2005 - Subsec. (d). Pub. L. 109-8 inserted "notwithstanding
    section 301(b)" before period at end.
      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 faith,".
      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 2005 AMENDMENT                 
      Amendment by Pub. L. 109-8 effective 180 days after Apr. 20,
    2005, and not applicable with respect to cases commenced under this
    title before such effective date, except as otherwise provided, see
    section 1501 of Pub. L. 109-8, set out as a note under section 101
    of this title.

                     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.

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