Section 85.40. Repayment plan for municipality; court approval; continuation of stay

Upon the filing of a petition pursuant  to  section  85.30  of  this title, a repayment plan may be filed by the municipality or, in the
  event  the municipality refuses to file such a plan after request by its
  emergency financial control board or, after such request, fails to  file
  a  plan within forty-five days from the filing of a petition pursuant to
  section 85.30 of this  title,  the  board  may  file  a  repayment  plan
  pursuant to this section on behalf of the municipality.  Upon the filing
  of  such  a  plan, the court shall enter an order approving the plan and
  extending any stay then in effect pursuant  to  section  85.30  of  this
  title  as  against all creditors of the municipality for such additional
  period of time as is required to carry out fully all of  the  terms  and
  provisions  of  the  plan with respect to those creditors who accept the
  plan or any benefits thereunder, if the court finds,  after  a  hearing,
  that:  (a)  the repayment plan provides for the eventual satisfaction of
  all debts and obligations of  the  municipality  affected  thereby;  (b)
  that,  giving  due regard to the financial condition of the municipality
  and to the necessity for the municipality to expend moneys for  services
  and  purposes determined to be necessary as provided in section 85.30 of
  thit title, the  repayment  plan  provides  as  prompt  payment  to  all
  creditors  affected  thereby,  on  a  fair  and  equitable  basis, as is
  practicable in the circumstances; (c) that the repayment plan  preserves
  any  applicable  priorities among creditors or classes of creditors; and
  (d) that the repayment plan was approved by the municipality's emergency
  financial control board. In the event that the court is unable  to  make
  the aforesaid findings as to the repayment plan, it shall enter an order
  disapproving  the plan and vacating the stay then in effect, which order
  shall become effective within ten days from the  entry  thereof  unless,
  prior  thereto,  an amended repayment plan is filed with the court. Upon
  the filing of the first such amended plan, the court shall  extend  and,
  in  its  discretion, upon the filing of any further amended plans it may
  extend the stay then in effect for such additional period of time as  is
  required  to  permit  the  court  to  enter an order containing findings
  pursuant to this section with respect to the amended plan.