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Current as of January 01, 2026 | Updated by Findlaw Staff
(a) Conditions prior to determination.--The secretary shall issue a determination under subsection (b) within 30 days of either:
(1) the final day for filing a petition under section 432(b), 1 if judicial review under section 433 2 has not been initiated; or
(2) a final adjudication pursuant to a hearing held under section 433 finding that the municipality should continue to exist as a separate municipal corporation because of a reasonable expectation that the municipality is viable.
(b) Determination.--The secretary shall determine whether:
(1) the recovery plan for the municipality shall remain in effect subject to the limitations of Subchapter C.1 of Chapter 2 3 and, if the coordinator has previously issued a report pursuant to section 255, 4 the secretary shall direct the coordinator to prepare an exit plan according to section 256; 5
(2) the elected and appointed officials of the municipality have demonstrated a failure to adequately implement recovery measures and, if so, request a determination of a fiscal emergency in accordance with Chapter 6; 6
(3) conditions within the municipality warrant a termination in status in accordance with section 255.1; 7 or
(4) conditions as set forth in section 261 8 exist and, if so, that the governing body should initiate proceedings for Federal debt readjustment under Subchapter D of Chapter 2. 9
Cite this article: FindLaw.com - Pennsylvania Statutes Title 53 P.S. Municipal and Quasi-Municipal Corporations § 11701.433.1 § 11701.433.1. Failure to initiate disincorporation - last updated January 01, 2026 | https://codes.findlaw.com/pa/title-53-ps-municipal-and-quasimunicipal-corporations/pa-st-sect-53-11701-433-1/
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