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6 Cards in this Set
- Front
- Back
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Purpose of Chapter 9 |
To protect a municipality from creditors while it creates a bankruptcy plan to modify its debts |
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Discharge |
1. When the plan is approved, it will receive discharge which prevents anyone from taking actions against the municipality designed to recover debt payments outside of the plan |
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What was the municipality do in order to receive a discharge?1 |
1. The court must approve the plan 2. The municipality must make a deposit of money with the disbursing agent of the court, this is a deposit against payments the municipality has agreed to make to debtors 3. if the deposit consists of securities, the court must determine that the obligations they represent are valid |
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Creditors commitee |
Typically created to represent the unsecured creditors during the bankruptcy 1.Investigate the activities of the Muni, including examining its financial information 2. Help to form the bankruptcy plan 3. take other actions that will help the creditors it represents |
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What is included in the MD&A |
1. major events of the year 2. a discussion of the financial statements 3. a comparison of the current financial year to the provious one 4. singificant changes in the municipality 5. a discussion of the overall health of the government 6. a discussion of the budget 7. an explanation of how current circumstances are espected to affect the municipality as time passes |
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7 Requirements A bankruptcy plan must meet in order to be confirmed by the court |
1. Requirements of certain Chapter 11 sections 2. All requirements of Chapter 9 3. court approves fees that muni has arranged to pay professionals it has engaged to help with the case 4. Plan does not conflict with any laws 5. Plan provides for claim holders to be paid a determined about for their claims 6. Any necessary approval required outside the court has been received 7. the plan is both feasible and in the best interest of the claims holders |
