§ 28211. Limitation on authority and on assisted cities to file petition for relief under Feder...
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 53 P.S. Municipal and Quasi-Municipal CorporationsEffective: February 12, 2004
Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 53 P.S. Municipal and Quasi-Municipal Corporations
Part III. Cities of the Second Class
Chapter 67. Intergovernmental Cooperation Authority Act for Cities of the Second Class (Refs & Annos)
Chapter 2. Intergovernmental Cooperation Authority for Cities of the Second Class
Effective: February 12, 2004
53 P.S. § 28211
§ 28211. Limitation on authority and on assisted cities to file petition for relief under Federal bankruptcy law
(a) Limitation on bankruptcy filing.--Notwithstanding any other provision of law, the authority and any assisted city shall not be authorized to file a petition for relief under 11 U.S.C. Ch. 9 (relating to adjustments of debts of a municipality) or any successor Federal bankruptcy law, and no government agency shall authorize the authority or such city to become a debtor under 11 U.S.C. Ch. 9 or any successor Federal bankruptcy law.
(b) Bankruptcy filing approval.--In addition to the limitation set forth in subsection (a) and notwithstanding any other provision of law, no city shall be authorized to file a petition for relief under 11 U.S.C. Ch. 9 or any successor Federal bankruptcy law unless such petition has been submitted to, and the filing thereof has been approved in writing, by the Governor. The Governor is designated in accordance with 11 U.S.C. § 109(c)(2) (relating to who may be a debtor) as the organization of the Commonwealth which shall have power to approve or disapprove the filing of any such petition of a political subdivision and to approve or disapprove any plan of readjustment of the debts of any such political subdivision prepared, filed and submitted with the petition to the court, as provided under 11 U.S.C. Ch. 9.
(1) When any such petition shall be submitted to the Governor for approval, accompanied with a proposed plan of readjustment of the debts of a city, the Governor shall make a careful and thorough investigation of the financial condition of such city, of its assets and liabilities, of its sinking fund and whether the affairs thereof are managed in a careful, prudent and economic manner in order to ascertain whether the presentation of such petition is justified or represents an unjust attempt by such city to evade payment of some of its contractual obligations and, if the Governor believes that such petition should be approved, whether the plan of readjustment submitted will be helpful to the financial condition of the city and is feasible and, at the same time, fair and equitable to all creditors.
(2) The Governor shall also, prior to giving his approval, ascertain the amount, if any, of the obligations of any such petitioning city which is held by any agency or agencies of the State government as trust funds and shall, before approving any such petition and plan of readjustment, consult with and give every such agency an opportunity to be heard and the privilege to examine the findings of the Governor resulting from the investigation required to be made under this act and shall likewise hear any other creditor of such city, whether resident in or outside this Commonwealth, who shall apply therefor.
Credits
2004, Feb. 12, P.L. 73, No. 11, § 211, imd. effective.
53 P.S. § 28211, PA ST 53 P.S. § 28211
Current through Act 13 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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