In the chapter 9 context, the "best interests of creditors" test has generally been interpreted to mean that the plan must be better than other Business law chap 9 available to the creditors. The Bankruptcy Rules provide that the clerk, or such other person as the court may direct, is to give notice.
Further, "[r]epresentatives of the state in which the debtor is located may intervene in a chapter 9 case.
The Bankruptcy Code permits objections to the petition. For purposes of this publication, references to United States trustees are also applicable to bankruptcy administrators. The stay operates to stop all collection actions against the debtor and its property upon the filing of the petition.
Although similar to other chapters in some respects, chapter 9 is significantly different in that there is no provision in the law for liquidation of the assets of the municipality and distribution of the proceeds to creditors.
Bondholders generally do not have to worry about the threat of preference liability with respect to any prepetition payments on account of bonds or notes, whether special revenue or general obligations.
Although Congress took care to draft the legislation so as not to interfere with the sovereign powers of the states guaranteed by the Tenth Amendment to the Constitution, the Supreme Court held the Act unconstitutional as an improper interference with the sovereignty of the states.
Notes In North Carolina and Alabama, bankruptcy administrators perform similar functions that United States trustees perform in the remaining forty-eight states. Commencement of the Case Municipalities must voluntarily seek protection under the Bankruptcy Code.
Thus, an indenture trustee or other paying agent may apply pledged funds to payments coming due or distribute the pledged funds to bondholders without violating the automatic stay.
If the petition is not dismissed upon an objection, the Bankruptcy Code requires the court to order relief, allowing the case to proceed under chapter 9. The plan must be filed with the petition or at such later time as the court fixes.
The definition is broad enough to include cities, counties, townships, school districts, and public improvement districts. The Bankruptcy Rules provide that "[t]he Secretary of the Treasury of the United States may, or if requested by the court shall, intervene in a chapter 9 case.
The municipal debtor has broad powers to use its property, raise taxes, and make expenditures as it sees fit. In the more than 60 years since Congress established a federal mechanism for the resolution of municipal debts, there have been fewer than municipal bankruptcy petitions filed.
They may file a petition only under chapter 9. If an objection to the petition is filed, the court must hold a hearing on the objection. The first is for any debt excepted from discharge by the plan or order confirming the plan.
As a practical matter, however, the municipality may consent to have the court exercise jurisdiction in many of the traditional areas of court oversight in bankruptcy, in order to obtain the protection of court orders and eliminate the need for multiple forums to decide issues.
Section a 8 requires, as a condition to confirmation, that the plan has been accepted by each class of claims or interests impaired under the plan. The court must confirm a plan if the following conditions are met: Municipalities may also reject collective bargaining agreements and retiree benefit plans without going through the usual procedures required in chapter 11 cases.
This ability is important to the survival of a municipality that has exhausted all other resources. Parties in interest may object to confirmation, including creditors whose claims are affected by the plan, an organization of employees of the debtor, and other tax payers, as well as the Securities and Exchange Commission.View Notes - Business Law- Chapter 9 Notes from BLX at St Bonaventure University.
Chapter 9: Criminal and Cyber Law 1. Civil v. Criminal Law A. Major Differences: a.
Criminal offenses are. Test over Chapter 1 in Business Law. Sources of law include constitutions, statutes, cases decided by _____, and regulations and rulings of administrative agencies.
Business Law Chapter 9: Intro to Contracts Learn with flashcards, games, and more — for free. Learn chapter 9 business law with free interactive flashcards. Choose from different sets of chapter 9 business law flashcards on Quizlet. HOUGHTON MIFFLIN COMPANY BOSTON NEW YORK Study Guide Business Law Principles and Practices SEVENTH EDITION Arnold J.
Goldman Law Firm of Goldman & Goldman William D. Sigismond Monroe Community College. Although similar to other chapters in some respects, chapter 9 is significantly different in that there is no provision in the law for liquidation of the assets of the municipality and distribution of .Download