Issue link: https://mbozikis.ufcontent.com/i/1422521
240 D. Applicability of Automatic Stay and Certain Other Sections of the Bankruptcy Code Only the provisions in Chapters 1 and 9 of the Bankruptcy Code apply to Chapter 9 cases, except that Section 901 makes numerous other Sections of the Bankruptcy Code applicable in a Chapter 9 case, including, most notably, the automatic stay provisions of Section 362. 143 The stay is critical to the Chapter 9 proceeding in that it operates to stop all collection actions against the debtor and affords the municipality breathing room to develop a plan. The stay protections are expanded by Section 922(a)(1) to prohibit actions against inhabitants and officers of the debtor that seek to enforce a claim against the debtor. It should be noted, however, that the stay protections do not affect the application of special pledged revenues to payment of indebtedness secured by such revenues. 11 U.S.C. § 922(d). Among the other provisions of the Bankruptcy Code made applicable in Chapter 9 proceedings are (i) Sections 364(c)–(f) concerning the obtaining of credit and the incurring of debt, (ii) Section 365 governing the assumption and rejection of executory contracts and unexpired leases, and (iii) various Sections of Chapter 11 related to the plan and plan confirmation. E. Court's Limited Power In recognition of the sovereign powers of the States, the bankruptcy court's powers in a Chapter 9 proceeding are severely limited and the bankruptcy court's involvement in the debtor's affairs and in the conduct of the case will typically be far less than in a Chapter 11 reorganization. "Principles of dual sovereignty, deeply embedded in the fabric of the nation and commemorated in the Tenth Amendment of the United States Constitution, severely curtail the power of the bankruptcy courts to compel municipalities to act once the petition is approved." N.Y.C. Off-Track Betting, 143 We refer to the text of Section 901 of the Bankruptcy Code for a full list of the other Sections of the Bankruptcy Code that are applicable in a Chapter 9 proceeding. Although only certain of these Sections are discussed in this chapter of the Guide, all of the significant Sections are discussed in the Guide.

