Relief From or Composition of Debts Under Federal Statute Prohibited

  1. Law
  2. Georgia Code
  3. Local Government
  4. General Provisions
  5. Relief From or Composition of Debts Under Federal Statute Prohibited

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  1. No county, municipality, school district, authority, division, instrumentality, political subdivision, or public body corporate created under the Constitution or laws of this state shall be authorized to file a petition for relief from payment of its debts as they mature or a petition for composition of its debts under any federal statute providing for such relief or composition or otherwise to take advantage of any federal statute providing for the adjustment of debts of political subdivisions and public agencies and instrumentalities.
  2. No chief executive, mayor, board of commissioners, city council, board of trustees, or other governmental officer, governing body, or organization shall be empowered to cause or authorize the filing by or on behalf of any county, municipality, school district, authority, division, instrumentality, political subdivision, or public body corporate created under the Constitution or laws of this state of any petition for relief from payment of its debts as they mature or a petition for composition of its debts under any federal statute providing for such relief or composition or otherwise to take advantage of any federal statute providing for the adjustment of debts of political subdivisions and public agencies and instrumentalities.

(Ga. L. 1976, p. 1557, §§ 1, 2.)

Law reviews.

- For comment, "Federalism, States, and the Power to Regulate Municipal Bankruptcies: Who May be a Debtor under Section 109(c)?," see 9 Bank. Dev. J. 621 (1993).

RESEARCH REFERENCES

ALR.

- What amounts to "indebtedness" to state within constitutional or statutory provision as to release or compromise of same, 108 A.L.R. 376.

JUDICIAL DECISIONS

Bankruptcy.

- Debtor, a Georgia county hospital authority, was ineligible for Chapter 9 relief because the State of Georgia, pursuant to O.C.G.A. § 36-80-5(a), had not specifically authorized the authority to file for relief under Chapter 9. United States v. Hosp. Auth. of Charlton County (In re Hosp. Auth. of Charlton County), 56 Bankr. Ct. Dec. (LRP) 220 (Bankr. S.D. Ga. July 3, 2012).


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