Issue link: https://mbozikis.ufcontent.com/i/1422521
241 427 B.R. 256, 264 (Bankr. S.D.N.Y. 2010). Section 903 specifically reserves to the State continued powers to control the municipality 144 and Section 904 guards against the court's interference with the operations of the debtor. In particular, Section 904 provides that, unless the debtor consents or the plan so provides, the court cannot interfere with (1) any of the political or governmental powers of the debtor; (2) any of the property or revenues of the debtor; or (3) the debtor's use or enjoyment of any income- producing property. Thus, the primary functions of the court are to (i) approve the petition (if the debtor is eligible), (ii) confirm a plan of debt adjustment, and (iii) oversee implementation of the plan. In In re City of Stockton, Cal., 486 B.R. 194 (Bankr. E.D. Cal. 2013), the Court held given the limitation on the court's powers under Section 904, municipal debtors are not subject to the requirement under Rule 9019 of the Bankruptcy Rules to seek court approval of settlements with prepetition creditors. The Court cautioned, however, that it could address such settlements in the context of confirmation of a plan of adjustment and that, if the settlements were unfair, it could jeopardize confirmation of such a plan. Id. at 199–200. The court also has the power to dismiss the petition at a time other than when it is considering whether to enter an order for 144 The U.S. Supreme Court reinforced the scope of Section 903 in Commw. of P.R. v. Franklin Cal. Tax-Free Trust, 136 S.Ct. 1938 (2016), and found that Puerto Rico was a "State" for the purpose of Section 903. Id. at 1947-48. Thus, the preemption proviso of Section 903 applied to Puerto Rico and preempted Puerto Rico's restructuring law, Puerto Rico Corporation Debt Enforcement and Recovery Act, passed in 2014. Id. at 1949.