Section 85.30. Petition of municipality; temporary stay of claims

A
  voluntary petition  may  be  filed  pursuant  to  this  section  by  any
  municipality  or,  in  the  event  a  municipality  refuses to file such
  petition after request by its  emergency  financial  control  board,  or
  fails  to  do  so  within  five  days  thereafter,  the board may file a
  petition pursuant to this section on behalf of the  municipality.    The
  petition  shall  be  filed in the supreme court in a county in which the
  municipality  is  located.  The  petition  shall  state:  (a)  that  the
  municipality  is  unable to pay its debts or obligations as they mature;
  (b) that the municipality  or  its  emergency  financial  control  board
  intends  to  file with the court a repayment plan in compliance with the
  requirements of section 85.40 of this title; (c) the nature of the debts
  and obligations of the municipality which may be affected  by  the  plan
  and the approximate amount thereof; and (d) the identities and addresses
  of  creditors  who  may be affected by the plan or, in lieu thereof, the
  reason such identification is impracticable and a listing  of  creditors
  in  a  manner that is practicable in the circumstances. A petition filed
  pursuant to this section shall operate to prohibit the doing of any act,
  and to stay the commencement or continuation of any  action  or  special
  proceeding in any court in any jurisdiction, seeking to apply or enforce
  against  the  municipality  or any covered organization, or their funds,
  property, receivables or revenues, any order, judgment, lien, set-off or
  counterclaim relating to any contract, debt  or  obligation,  direct  or
  indirect,  of  the  municipality, including but not limited to any bond,
  note or other evidence of indebtedness, or seeking the assessment,  levy
  or  collection of taxes by or for the municipality or the application of
  any funds, property, receivables or revenues of the municipality or  any
  covered  organization,  for  a period of ninety days; provided, however,
  that: (i) the stay may be vacated prior thereto if, upon motion  of  any
  creditor  affected  thereby,  the court finds, after a hearing, that the
  petition was not filed in good faith; (ii) if a repayment plan  for  the
  municipality  is  filed  within  ninety  days  from  the  filing  of the
  petition, or within such additional period of time as the court may find
  after a hearing is required to permit the preparation and filing of such
  a plan, the court shall extend the stay for such  additional  period  of
  time  as  is  required to permit the court to enter an order pursuant to
  section 85.40 of this title; (iii) any applicable statute of limitations
  shall be tolled during the period  of  any  stay  or  extension  thereof
  pursuant  to  this  title;  and  (iv)  during  the period of any stay or
  extension thereof pursuant to this title, the  municipality  may  expend
  moneys  to  maintain  and provide such services and for such purposes as
  are determined to be necessary by its emergency financial control board.