11 U.S.C. § 921 — Petition and proceedings relating to peti-

Page 230 TITLE 11—BANKRUPTCY § 921 (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2622.) HISTORICAL AND REVISION NOTES SENATE REPORT NO. 95–989 This section adopts the policy of section 82(c) of cur- rent law [section 402(c) of former title 11]. The only change in this section from section 82(c) is to conform the section to the style and cross-references of S. 2266. HOUSE REPORT NO. 95–595 This section adopts the policy of section 82(c) of cur- rent law [section 402(c) of former title 11]. The Usery case underlines the need for this limitation on the court’s powers. The only change in this section from section 82(c) is to conform the section to the style and cross-references of H.R. 8200. This section makes clear that the court may not interfere with the choices a mu- nicipality makes as to what services and benefits it will provide to its inhabitants. SUBCHAPTER II—ADMINISTRATION Editorial Notes AMENDMENTS 1984—Pub. L. 98–353, title III, § 493, July 10, 1984, 98 Stat. 383, substituted ‘‘SUBCHAPTER’’ for ‘‘SUBCHAPER’’. § 921. Petition and proceedings relating to peti- tion (a) Notwithstanding sections 109(d) and 301 of this title, a case under this chapter concerning an unincorporated tax or special assessment dis- trict that does not have such district’s own offi- cials 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 dis- trict. (b) The chief judge of the court of appeals for the circuit embracing the district in which the case is commenced shall designate the bank- ruptcy 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 peti- tion in good faith or if the petition does not meet the requirements of this title. (d) If the petition is not dismissed under sub- section (c) of this section, the court shall order relief under this chapter notwithstanding sec- tion 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 ap- peal is being taken; nor shall any court order a stay of such proceeding pending such appeal. The reversal on appeal of a finding of jurisdic- tion does not affect the validity of any debt in- curred that is authorized by the court under sec- tion 364(c) or 364(d) of this title. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2622; Pub. L. 98–353, title III, § 494, July 10, 1984, 98 Stat. 383; Pub. L. 109–8, title V, § 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 dif- ference 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 dis- trict 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 pro- cedures 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 ques- tions. Selection should not be left to chance or the luck of the draw. This provision will insure that calendar de- mands 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 ac- tion 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 sec- tion 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 determina- tive 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]. Editorial Notes AMENDMENTS 2005—Subsec. (d). Pub. L. 109–8 inserted ‘‘notwith- standing section 301(b)’’ before period at end. 1984—Subsec. (a). Pub. L. 98–353, § 494(c), substituted ‘‘109(d)’’ for ‘‘109(c)’’. Subsec. (c). Pub. L. 98–353, § 494(a), substituted ‘‘any’’ for ‘‘an’’, and ‘‘petition if the debtor did not file the pe- tition in good faith’’ for ‘‘petition, if the debtor did not file the petition in good faith,’’. Subsec. (d). Pub. L. 98–353, § 494(b), (d), redesignated subsec. (e) as (d) and substituted ‘‘subsection (c)’’ for ‘‘subsection (d)’’. No former subsec. (d) had been en- acted. Subsecs. (e), (f). Pub. L. 98–353, § 494(b), redesignated subsec. (f) as (e). Former subsec. (e) redesignated (d). Statutory Notes and Related Subsidiaries 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 Page 231 TITLE 11—BANKRUPTCY § 924 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title. § 922. Automatic stay of enforcement of claims against the debtor (a) A petition filed under this chapter operates as a stay, in addition to the stay provided by section 362 of this title, applicable to all enti- ties, of— (1) the commencement or continuation, in- cluding the issuance or employment of proc- ess, of a judicial, administrative, or other ac- tion or proceeding against an officer or inhab- itant of the debtor that seeks to enforce a claim against the debtor; and (2) the enforcement of a lien on or arising out of taxes or assessments owed to the debt- or. (b) Subsections (c), (d), (e), (f), and (g) of sec- tion 362 of this title apply to a stay under sub- section (a) of this section the same as such sub- sections apply to a stay under section 362(a) of this title. (c) If the debtor provides, under section 362, 364, or 922 of this title, adequate protection of the interest of the holder of a claim secured by a lien on property of the debtor and if, notwith- standing such protection such creditor has a claim arising from the stay of action against such property under section 362 or 922 of this title or from the granting of a lien under section 364(d) of this title, then such claim shall be al- lowable as an administrative expense under sec- tion 503(b) of this title. (d) Notwithstanding section 362 of this title and subsection (a) of this section, a petition filed under this chapter does not operate as a stay of application of pledged special revenues in a manner consistent with section 927 of this title to payment of indebtedness secured by such revenues. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2623; Pub. L. 98–353, title III, § 495, July 10, 1984, 98 Stat. 384; Pub. L. 100–597, § 5, Nov. 3, 1988, 102 Stat. 3029.) HISTORICAL AND REVISION NOTES HOUSE REPORT NO. 95–595 The automatic stay provided under section 362 of title 11 is incomplete for a municipality, because there is the possibility of action by a creditor against an offi- cer or inhabitant of the municipality to collect taxes due the municipality. Section 85(e)(1) of current chap- ter IX [section 405(e)(1) of former title 11] stays such ac- tions. Section 922 carries over that protection into the proposed chapter 9. Subsection (b) applies the provi- sions for relief from the stay that apply generally in section 362 to the stay under section 922. Editorial Notes AMENDMENTS 1988—Subsecs. (c), (d). Pub. L. 100–597 added subsecs. (c) and (d). 1984—Subsec. (a)(1). Pub. L. 98–353 substituted ‘‘a ju- dicial’’ for ‘‘judicial’’, and ‘‘action or proceeding’’ for ‘‘proceeding’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–597 effective Nov. 3, 1988, but not applicable to any case commenced under this title before that date, see section 12 of Pub. L. 100–597, 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. § 923. Notice There shall be given notice of the commence- ment of a case under this chapter, notice of an order for relief under this chapter, and notice of the dismissal of a case under this chapter. Such notice shall also be published at least once a week for three successive weeks in at least one newspaper of general circulation published with- in the district in which the case is commenced, and in such other newspaper having a general circulation among bond dealers and bondholders as the court designates. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2623.) HISTORICAL AND REVISION NOTES LEGISLATIVE STATEMENTS Section 923 of the House amendment represents a compromise with respect to the notice provisions con- tained in comparable provisions of the House bill and Senate amendment. As a general matter, title 11 leaves most procedural issues to be determined by the Rules of Bankruptcy Procedure. Section 923 of the House amendment contains certain important aspects of pro- cedure that have been retained from present law. It is anticipated that the Rules of Bankruptcy Procedure will adopt rules similar to the present rules for chapter IX of the Bankruptcy Act [chapter 9 of former title 11]. HOUSE REPORT NO. 95–595 The notice provisions in section 923 are significantly more sparse than those provided under section 85(d) of chapter IX [section 405(d) of former title 11]. The exact contours of the notice to be given under chapter 9 are left to the Rules. Because the Rules deal with notice in a municipal case (Rule 9–14), and because section 405(d) of title IV of the bill continues those Rules in effect to the extent not inconsistent with the bill, the notice provisions of current law and Rules would continue to apply. § 924. List of creditors The debtor shall file a list of creditors. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2623.) HISTORICAL AND REVISION NOTES LEGISLATIVE STATEMENTS Section 924 of the House amendment is derived from section 924 of the House bill with the location of the fil- ing of the list of creditors to be determined by the rules of bankruptcy procedure. The detailed requirements of section 724 [probably should be ‘‘924’’] of the Senate bill are anticipated to be incorporated in the rules of bank- ruptcy procedure. SENATE REPORT NO. 95–989 This section adopts the provision presently contained in section 85(b) of Chapter IX [section 405(b) of former title 11]. A list of creditors, as complete and accurate as practicable, must be filed with the court. HOUSE REPORT NO. 95–595 This section directs the debtor to file a list of credi- tors with the court. A comparable provision is pres- ently contained in section 85(b) of chapter IX [section