Title 11 — BankruptcyRelease 119-73not60
§928 Post Petition Effect of Security Interest
Title 11 › Chapter 9— ADJUSTMENT OF DEBTS OF A MUNICIPALITY › Subchapter II— ADMINISTRATION › § 928
Summary
After filing bankruptcy, money from a project or system stays tied to liens made before the case (not municipal betterment assessments), but those liens must allow the project's necessary operating costs to be paid first.
Full Legal Text
Title 11, §928
Bankruptcy — Source: USLM XML via OLRC
(a)Notwithstanding section 552(a) of this title and subject to subsection (b) of this section, special revenues acquired by the debtor after the commencement of the case shall remain subject to any lien resulting from any security agreement entered into by the debtor before the commencement of the case.
(b)Any such lien on special revenues, other than municipal betterment assessments, derived from a project or system shall be subject to the necessary operating expenses of such project or system, as the case may be.
Legislative History
Notes & Related Subsidiaries
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Nov. 3, 1988, but not applicable to any case commenced under this title before that date, see section 12 of Pub. L. 100–597, set out as an
Effective Date
of 1988 Amendment note under section 101 of this title.
Reference
Citations & Metadata
Citation
11 U.S.C. § 928
Title 11 — Bankruptcy
Last Updated
Apr 3, 2026
Release point: 119-73not60