An Act to amend chapter IX of the Bankruptcy Act to provide by voluntary reorganization procedures for the adjustment of the debts of municipalities.

[AI summary unavailable — showing source text] Grants a court of bankruptcy, under the Bankruptcy Act, authority to exercise exclusive jurisdiction for adjusting the debts of political subdivisions and public agencies and instrumentalities. States that the court may permit such petitioner to reject executory contracts and unexpired leases. Stipulates that unless the petitioner consents or the bankruptcy plan so provides, the court shall not, by any order, decree, or otherwise, interfere with: (1) any of the political or governmental powers of the petitioner, (2) any of the property or revenues of the petitioner, or (3) any income-producing property. Reserves to the various States power to control any municipality or political subdivision of or in such State in the exercise of its political or governmental powers, including expenditures therefor. Stipulates that any State's political subdivision or public agency or instrumentality is eligible for relief if it is insolvent or unable to meet its debts as they mature, and desires to effect a plan to adjust its debts. Sets forth judicial procedures governing the filing of the petition, proceedings, venue, fees, and notice. States that a petition filed pursuant to this Act shall oper…