903. Reservation of State power to control municipalities

Bookmarking and annotating the Code and Rules is a special benefit of ABI membership. Join ABI or take a Test Drive today, and start making the Code and Rules your own!

This chapter does not limit or impair the power of a State to control, by legislation or otherwise, a municipality of or in such State in the exercise of the political or governmental powers of such municipality, including expenditures for such exercise, but—
(1) a State law prescribing a method of composition of indebtedness of such municipality may not bind any creditor that does not consent to such composition; and
(2) a judgment entered under such a law may not bind a creditor that does not consent to such composition.

ABI Related Resources

Timely summaries of court of appeals and bankruptcy appellate panel decisions.

Bankruptcy-related opinion summaries provided by partner LexisNexis® Collier.

30-day Trial

Learn more about Law.ABI.org