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Pennsylvania Statutes Title 53 P.S. Municipal and Quasi-Municipal Corporations § 11701.246. Preparation and action on alternate plan

Current as of January 01, 2026 | Updated by Findlaw Staff

(a) Chief executive officer's plan.--If the governing body of a municipality that operates under an optional plan form of government or a home rule charter enacts an ordinance directing implementation of the coordinator's plan and the chief executive officer refuses or fails to issue an order as provided in section 245,  1 or if the governing body refuses to enact an ordinance approving the coordinator's plan, then the chief executive officer, within 14 days of the action or refusal to act on the ordinance by the governing body, shall develop a plan, including a signed order implementing it, which shall be the subject of a public meeting no later than ten days following its completion.

(1) The chief executive officer may conduct private sessions before the public meeting with individual creditors in an effort to obtain the consent of each creditor to proposed adjustment and handling of specific claims against the municipality.  An agreement reached as a result of these private sessions shall become a matter of record and part of the proceedings of the public meeting conducted pursuant to this subsection.

(2) The chief executive officer shall be responsible for placing notice that a public meeting will be held on his plan.  Notice shall be published in the same manner as provided in section 242(c). 2  The coordinator shall attend the public meeting and furnish written and oral comments on the chief executive officer's plan.

(b) Governing body's plan.--In the case of a municipality operating under a form of government other than an optional plan form of government or a home rule charter, if the governing body by majority vote refuses to enact an ordinance approving and implementing the coordinator's plan as provided in section 245, then within 14 days of its refusal the governing body shall develop a plan which shall be the subject of a public meeting held not later than ten days following plan completion.

(1) The governing body may conduct private sessions before the public meeting with individual creditors in an effort to obtain consent of each creditor to proposed adjustment and handling of specific claims against the municipality.  An agreement reached as a result of these private sessions shall become a matter of record and part of the proceedings of the public meeting conducted pursuant to this subsection.

(2) The governing body shall be responsible for placing notice that a public meeting will be held on its plan.  Notice shall be published in the same manner as provided in section 242(c).  The coordinator shall attend the public meeting and furnish written and oral comments on the governing body's plan.

(c) Approval or rejection of plan.--Following the public meeting on the chief executive officer's plan or the governing body's plan, the governing body may enact an ordinance, including necessary related implementing ordinances or revisions to ordinances, approving the plan.

(d) Review by secretary.--

(1) If an ordinance is enacted approving a plan under this section, it shall be forwarded to the secretary for determination that the plan, when implemented, will overcome the municipality's financial distress.

(2) If the secretary is of the opinion that the plan, when implemented, will overcome the municipality's financial distress, the secretary shall so inform the municipality.

(3) If the secretary is of the opinion that the plan, when implemented, will not overcome the municipality's financial problems, the secretary shall inform the municipality of the following:

(i) The secretary's determination.

(ii) The reasons for the determination.

(iii) The applicability of sections 251 and 264   3 to the municipality.

(iv) The applicability of Chapters 6 and 7 to the municipality.   4

1  53 P.S. § 11701.245.
2  53 P.S. § 11701.242(c).
3  53 P.S. §§ 11701.251 and 11701.264.
4  53 P.S. §§ 11701.601 et seq., 11701.701 et seq.
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Cite this article: FindLaw.com - Pennsylvania Statutes Title 53 P.S. Municipal and Quasi-Municipal Corporations § 11701.246. Preparation and action on alternate plan - last updated January 01, 2026 | https://codes.findlaw.com/pa/title-53-ps-municipal-and-quasimunicipal-corporations/pa-st-sect-53-11701-246/

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