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Web posted and Copyright © 1/12/98, American Bankruptcy Institute.

The following abstract summarizes the text of submissions made to the National Bankruptcy Review Commission. The abstract is organized by NBRC working group and topic.
The Final Report of the NBRC can be viewed on-line. To obtain a copy of any document shown below, contact the Center for Legislative Archives, Room 205, National Archives Building, Washington, D.C. 20408. The telephone number is 202/501-5350. Mr. R. Michael McReynolds, Deputy Director, will be able to assist with specific inquiries. (The NBRC documents will be housed at this location until June, 1999. Thereafter, the records will be transferred to the Center's archives in College Park, MD.)

Jurisdiction: Sovereign Immunity
Problem ReferencedProposed Solutions
Roderic L. NotzonAttorney and bankruptcy court clerk
In light of a number of cases culminating in Seminole Tribe, an issue has arisen as to whether state governments have waived their sovereign immunity.Current section 106 should be amended to combine subsections a, b and c into a new subsection a, providing for the waiver of federal soveriegn immunity. A new subsection b should be added which allows state governments to waive sovereign immunity on the same terms as the federal government under subsections a, but which also provides that any state governmental unit not waiving its sovereign immunity is estopped from making any claim against the bankrupt estate. or perhaps even gaining any benefit whatever from the estate.
Commercial Law League of AmericaCommercial Law League of America (CLLA)

The Commerical Law League of America believes that the following issue should be considered by the NBRC: how the bankruptcy system can best accomodate the constitutional constraints of sovereign immunity.The CLLA believes that this issue should receive moderate priority because while it is interesting issue, it is not an issue that is faced with any regularity by those who are not active in the practice of bankruptcy law.


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