§ 85.30 Petition of municipality; temporary stay of claims. A\nvoluntary petition may be filed pursuant to this section by any\nmunicipality or, in the event a municipality refuses to file such\npetition after request by its emergency financial control board, or\nfails to do so within five days thereafter, the board may file a\npetition pursuant to this section on behalf of the municipality. The\npetition shall be filed in the supreme court in a county in which the\nmunicipality is located. The petition shall state:
(a)that the\nmunicipality is unable to pay its debts or obligations as they mature;\n(b) that the municipality or its emergency financial control board\nintends to file with the court a repayment plan in compliance with the\nrequirements of section 85.40 of this title;
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§ 85.30 Petition of municipality; temporary stay of claims. A\nvoluntary petition may be filed pursuant to this section by any\nmunicipality or, in the event a municipality refuses to file such\npetition after request by its emergency financial control board, or\nfails to do so within five days thereafter, the board may file a\npetition pursuant to this section on behalf of the municipality. The\npetition shall be filed in the supreme court in a county in which the\nmunicipality is located. The petition shall state: (a) that the\nmunicipality is unable to pay its debts or obligations as they mature;\n(b) that the municipality or its emergency financial control board\nintends to file with the court a repayment plan in compliance with the\nrequirements of section 85.40 of this title; (c) the nature of the debts\nand obligations of the municipality which may be affected by the plan\nand the approximate amount thereof; and (d) the identities and addresses\nof creditors who may be affected by the plan or, in lieu thereof, the\nreason such identification is impracticable and a listing of creditors\nin a manner that is practicable in the circumstances. A petition filed\npursuant to this section shall operate to prohibit the doing of any act,\nand to stay the commencement or continuation of any action or special\nproceeding in any court in any jurisdiction, seeking to apply or enforce\nagainst the municipality or any covered organization, or their funds,\nproperty, receivables or revenues, any order, judgment, lien, set-off or\ncounterclaim relating to any contract, debt or obligation, direct or\nindirect, of the municipality, including but not limited to any bond,\nnote or other evidence of indebtedness, or seeking the assessment, levy\nor collection of taxes by or for the municipality or the application of\nany funds, property, receivables or revenues of the municipality or any\ncovered organization, for a period of ninety days; provided, however,\nthat: (i) the stay may be vacated prior thereto if, upon motion of any\ncreditor affected thereby, the court finds, after a hearing, that the\npetition was not filed in good faith; (ii) if a repayment plan for the\nmunicipality is filed within ninety days from the filing of the\npetition, or within such additional period of time as the court may find\nafter a hearing is required to permit the preparation and filing of such\na plan, the court shall extend the stay for such additional period of\ntime as is required to permit the court to enter an order pursuant to\nsection 85.40 of this title; (iii) any applicable statute of limitations\nshall be tolled during the period of any stay or extension thereof\npursuant to this title; and (iv) during the period of any stay or\nextension thereof pursuant to this title, the municipality may expend\nmoneys to maintain and provide such services and for such purposes as\nare determined to be necessary by its emergency financial control board.\n