11 U.S.C. § 903 : US Code - Section 903: Reservation of State power to control municipalities

Search 11 U.S.C. § 903 : US Code - Section 903: Reservation of State power to control municipalities

This chapter does not limit or impair the power of a State to
control, by legislation or otherwise, a municipality of or in such
State in the exercise of the political or governmental powers of
such municipality, including expenditures for such exercise, but -
(1) a State law prescribing a method of composition of
indebtedness of such municipality may not bind any creditor that
does not consent to such composition; and
(2) a judgment entered under such a law may not bind a creditor
that does not consent to such composition.