Municipal Insolvency
/ˌmjuː.nɪˈsɪp.əl ɪnˈsɒl.vən.si/
Definitions
- (n.) A legal condition in which a municipality cannot meet its financial obligations and seeks relief under insolvency laws.
The city declared municipal insolvency to restructure its debt under state law.
Forms
- municipal insolvency
Related terms
See also
Commentary
Municipal insolvency differs from corporate insolvency by involving public entities and may follow specialized statutes such as Chapter 9 in the U.S.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.