11 U.S.C. § 902 — Definitions for this chapter

Page 228 TITLE 11—BANKRUPTCY § 902 1 See References in Text note below. if the acceptances were obtained in bad faith or, unlike current law, if there is a conflict of interest motivating the acceptance. § 1127(d). Modification of plan. This section governs the change of a creditor’s vote on the plan after a modifica- tion is proposed. It is derived from current section 92(e) [section 412(e) of former title 11]. § 1128. Hearing on confirmation. This section requires a hearing on the confirmation of the plan, and permits parties in interest to object. It is the same as Bank- ruptcy Act §§ 93 and 94(a) [sections 413 and 414(a) of former title 11], though the provision, comparable to section 206 of current chapter X [section 606 of former title 11], permitting a labor organization to appear and be heard on the economic soundness of the plan, has been deleted as more appropriate for the Rules. § 1129(a)(2), (3), (8), (b)(1), (2). Confirmation of plan. This section provides the boiler-plate language that the plan be proposed in good faith and that it comply with the provisions of the chapter, and also provides the fi- nancial standard for confirmation, which replaces the fair and equitable rule. See § 1124, supra. § 1142(b). Execution of plan. Derived from Bankruptcy Act § 96(b) [section 416(b) of former title 11], this section permits the court to order execution and delivery of in- struments in order to execute the plan. § 1143. Distribution. This section is the same in sub- stance as section 96(d) [section 416(d) of former title 11], which requires presentment or delivery of securities within five years, and bars creditors that do not act within that time. § 1144. Revocation of order of confirmation. This section permits the court to revoke the order of confirmation and the discharge if the confirmation of the plan was procured by fraud. There is no comparable provision in current chapter IX [chapter 9 of former title 11]. Editorial Notes REFERENCES IN TEXT Section 103(e) of this title, referred to in subsec. (b), was redesignated section 103(f) and a new section 103(e) was added by Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(5)(A)], Dec. 21, 2000, 114 Stat. 2763, 2763A–394. AMENDMENTS 2010—Subsec. (a). Pub. L. 111–327 inserted ‘‘333,’’ after ‘‘301,’’ and ‘‘351,’’ after ‘‘350(b)’’. 2005—Subsec. (a). Pub. L. 109–8, § 1502(a)(5), sub- stituted ‘‘507(a)(2)’’ for ‘‘507(a)(1)’’. Pub. L. 109–8, § 1216, inserted ‘‘1123(d),’’ after ‘‘1123(b),’’. Pub. L. 109–8, § 502, inserted ‘‘555, 556,’’ after ‘‘553,’’ and ‘‘559, 560, 561, 562,’’ after ‘‘557,’’. 1988—Subsec. (a). Pub. L. 100–597 inserted ‘‘1129(a)(6),’’ after ‘‘1129(a)(3),’’. 1984—Subsec. (a). Pub. L. 98–353 inserted ‘‘557,’’ after ‘‘553,’’ and substituted ‘‘1111(b),’’ for ‘‘1111(b)’’. 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 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. § 902. Definitions for this chapter In this chapter— (1) ‘‘property of the estate’’, when used in a section that is made applicable in a case under this chapter by section 103(e) 1 or 901 of this title, means property of the debtor; (2) ‘‘special revenues’’ means— (A) receipts derived from the ownership, operation, or disposition of projects or sys- tems of the debtor that are primarily used or intended to be used primarily to provide transportation, utility, or other services, in- cluding the proceeds of borrowings to fi- nance the projects or systems; (B) special excise taxes imposed on par- ticular activities or transactions; (C) incremental tax receipts from the ben- efited area in the case of tax-increment fi- nancing; (D) other revenues or receipts derived from particular functions of the debtor, whether or not the debtor has other functions; or (E) taxes specifically levied to finance one or more projects or systems, excluding re- ceipts from general property, sales, or in- come taxes (other than tax-increment fi- nancing) levied to finance the general pur- poses of the debtor; (3) ‘‘special tax payer’’ means record owner or holder of legal or equitable title to real property against which a special assessment or special tax has been levied the proceeds of which are the sole source of payment of an ob- ligation issued by the debtor to defray the cost of an improvement relating to such real prop- erty; (4) ‘‘special tax payer affected by the plan’’ means special tax payer with respect to whose real property the plan proposes to increase the proportion of special assessments or special taxes referred to in paragraph (2) of this sec- tion assessed against such real property; and (5) ‘‘trustee’’, when used in a section that is made applicable in a case under this chapter by section 103(e) 1 or 901 of this title, means debtor, except as provided in section 926 of this title. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2622; Pub. L. 98–353, title III, § 491, July 10, 1984, 98 Stat. 383; Pub. L. 100–597, § 4, Nov. 3, 1988, 102 Stat. 3028.) HISTORICAL AND REVISION NOTES LEGISLATIVE STATEMENTS Section 902(2) of the Senate amendment is deleted since the bankruptcy court will have jurisdiction over all cases under chapter 9. The concept of a claim being materially and adversely affected reflected in section 902(1) of the Senate amendment has been deleted and replaced with the new concept of ‘‘impairment’’ set forth in section 1124 of the House amendment and in- corporated by reference into chapter 9. SENATE REPORT NO. 95–989 There are six definitions for use in chapter 9. Para- graph (1) defines what claims are included in a chapter 9 case and adopts the definition now found in section 81(1) [section 401(1) of former title 11]. All claims against the petitioner generally will be included, with Page 229 TITLE 11—BANKRUPTCY § 904 one significant exception. Municipalities are author- ized, under section 103(c) of the Internal Revenue Code of 1954, as amended [title 26], to issue tax-exempt indus- trial development revenue bonds to provide for the fi- nancing of certain projects for privately owned compa- nies. The bonds are sold on the basis of the credit of the company on whose behalf they are issued, and the prin- cipal, interest, and premium, if any, are payable solely from payments made by the company to the trustee under the bond indenture and do not constitute claims on the tax revenues or other funds of the issuing mu- nicipalities. The municipality merely acts as the vehi- cle to enable the bonds to be issued on a tax-exempt basis. Claims that arise by virtue of these bonds are not among the claims defined by this paragraph and amounts owed by private companies to the holders of industrial development revenue bonds are not to be in- cluded among the assets of the municipality that would be affected by the plan. See Cong. Record, 94th Cong., 1st Sess. H.R. 12073 (statement by Mr. Don Edwards, floor manager of the bill in the House). Paragraph (2) defines the court which means the federal district court or federal district judge before which the case is pend- ing. Paragraph (3) [enacted as (1)] specifies that when the term ‘‘property of the estate’’ is used in a section in another chapter made applicable in chapter 9 cases, the term means ‘‘property of the debtor’’. Paragraphs (4) and (5) [enacted as (2) and (3)] adopt the definition of ‘‘special taxpayer affected by the plan’’ that appears in current sections 81(10) and 81(11) of the Bankruptcy Act [section 401(10) and (11) of former title 11]. Para- graph (6) [enacted as (4)] provides that ‘‘trustee’’ means ‘‘debtor’’ when used in conjunction with chapter 9. HOUSE REPORT NO. 95–595 There are only four definitions for use only in chap- ter 9. The first specifies that when the term ‘‘property of the estate’’ is used in a section in another chapter made applicable in chapter 9 cases, the term will mean ‘‘property of the debtor’’. Paragraphs (2) and (3) adopt the definition of ‘‘special taxpayer affected by the plan’’ that appears in current sections 81(10) and 81(11) [section 401(10) and (11) of former title 11]. Paragraph (4) provides for ‘‘trustee’’ the same treatment as pro- vided for ‘‘property of the estate’’, specifying that it means ‘‘debtor’’ when used in conjunction with chapter 9. Editorial Notes REFERENCES IN TEXT Section 103(e) of this title, referred to in pars. (1) and (5), was redesignated section 103(f) and a new section 103(e) was added by Pub. L. 106–554, § 1(a)(5) [title I, § 112(c)(5)(A)], Dec. 21, 2000, 114 Stat. 2763, 2763A–394. AMENDMENTS 1988—Pars. (2) to (5). Pub. L. 100–597 added par. (2) and redesignated former pars. (2) to (4) as (3) to (5), respec- tively. 1984—Par. (2). Pub. L. 98–353 substituted ‘‘legal or eq- uitable title to real property against which a special assessment or special tax has been levied’’ for ‘‘title, legal or equitable, to real property against which has been levied a special assessment or special tax’’. 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. § 903. Reservation of State power to control mu- nicipalities 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 expendi- tures for such exercise, but— (1) a State law prescribing a method of com- position of indebtedness of such municipality may not bind any creditor that does not con- sent to such composition; and (2) a judgment entered under such a law may not bind a creditor that does not consent to such composition. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2622; Pub. L. 98–353, title III, § 492, July 10, 1984, 98 Stat. 383.) HISTORICAL AND REVISION NOTES LEGISLATIVE STATEMENTS Section 903 of the House amendment represents a sty- listic revision of section 903 of the Senate amendment. To the extent section 903 of the House bill would have changed present law, such section is rejected. SENATE REPORT NO. 95–989 Section 903 is derived, with stylistic changes, from section 83 of current Chapter IX [section 403 of former title 11]. It sets forth the primary authority of a State, through its constitution, laws, and other powers, over its municipalities. The proviso in section 83, prohib- iting State composition procedures for municipalities, is retained. Deletion of the provision would ‘‘permit all States to enact their own versions of Chapter IX [chap- ter 9 of former title 11]’’, Municipal Insolvency, 50 Am.Bankr.L.J. 55, 65, which would frustrate the con- stitutional mandate of uniform bankruptcy laws. Con- stitution of the United States, Art. I, Sec. 8. This section provides that the municipality can con- sent to the court’s orders in regard to use of its income or property. It is contemplated that such consent will be required by the court for the issuance of certificates of indebtedness under section 364(c). Such consent could extend to enforcement of the conditions attached to the certificates or the municipal services to be pro- vided during the proceedings. Editorial Notes AMENDMENTS 1984—Par. (2). Pub. L. 98–353 struck out ‘‘to’’ before ‘‘that does not consent’’. Statutory Notes and Related Subsidiaries 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. § 904. Limitation on jurisdiction and powers of court Notwithstanding any power of the court, un- less the debtor consents or the plan so provides, the court may not, by any stay, order, or decree, in the case or otherwise, interfere with— (1) any of the political or governmental pow- ers of the debtor; (2) any of the property or revenues of the debtor; or (3) the debtor’s use or enjoyment of any in- come-producing property.