The automatic stay of section 362 of the
Bankruptcy Code is applicable in chapter 9 cases. 11 U.S.C. §§
362(a), 901(a). The stay operates to stop all collection actions
against the debtor and its property upon the filing of the
petition. Additional automatic stay provisions are applicable in
chapter 9 that prohibit actions against officers and inhabitants
of the debtor if the action seeks to enforce a claim against the
debtor. 11 U.S.C. § 922(a). Thus, the stay prohibits a creditor
from bringing a mandamus action against an officer of a
municipality on account of a prepetition debt. It also prohibits a
creditor from bringing an action against an inhabitant of the
debtor to enforce a lien on or arising out of taxes or assessments
owed to the debtor.
Section 922(d) of title 11 limits the
applicability of the stay. Under that section, a chapter 9
petition does not operate to stay application of pledged special
revenues to payment of indebtedness secured by such revenues.
Thus, an indenture trustee or other paying agent may apply pledged
funds to payments coming due or distribute the pledged funds to
bondholders without violating the automatic stay.