A bill to amend chapter IX of the Bankruptcy Act, relating to proceedings involving certain local governments.

[AI summary unavailable — showing source text] States that courts of bankruptcy shall exercise original jurisdiction as provided in this Act for the adjustment of debts of any public agency or instrumentality or political subdivision of a State if not prohibited from filing a petition by applicable State law. Provides that, upon the filing of a petition, the court may, in addition to the jurisdiction, powers, and duties conferred and imposed upon it (1) permit the rejection of executory contracts of the petitioner, upon notice to the parties to such contracts and to such other parties in interest as the court may designate; and (2) upon such notice as the court may prescribe and for cause shown, permit the issuance of certificates of indebtedness for cash, property, or other consideration approved by the court, upon such terms and conditions and with such security and priority in payment over existing obligations, secured or unsecured, as in the particular case may be equitable. Specifies the contents of a petition to be filed under this Act. Provides for notice to and representation of creditors and other parties in interest. States that a bankruptcy petition filed under this Act shall operate as a stay of enforcement of claim…