N.Y. LFN Law § 85.40

§ 85.40 Repayment plan for municipality; court approval; continuation\nof stay. Upon the filing of a petition pursuant to section 85.30 of\nthis title, a repayment plan may be filed by the municipality or, in the\nevent the municipality refuses to file such a plan after request by its\nemergency financial control board or, after such request, fails to file\na plan within forty-five days from the filing of a petition pursuant to\nsection 85.30 of this title, the board may file a repayment plan\npursuant to this section on behalf of the municipality. Upon the filing\nof such a plan, the court shall enter an order approving the plan and\nextending any stay then in effect pursuant to section 85.30 of this\ntitle as against all creditors of the municipality for such additional\nperiod of time as is required to carry out fully all of the terms and\nprovisions of the plan with respect to those creditors who accept the\nplan or any benefits thereunder, if the court finds, after a hearing,\nthat: (a) the repayment plan provides for the eventual satisfaction of\nall debts and obligations of the municipality affected thereby; (b)\nthat, giving due regard to the financial condition of the municipality\nand to the necessity for the municipality to expend moneys for services\nand purposes determined to be necessary as provided in section 85.30 of\nthit title, the repayment plan provides as prompt payment to all\ncreditors affected thereby, on a fair and equitable basis, as is\npracticable in the circumstances; (c) that the repayment plan preserves\nany applicable priorities among creditors or classes of creditors; and\n(d) that the repayment plan was approved by the municipality's emergency\nfinancial control board. In the event that the court is unable to make\nthe aforesaid findings as to the repayment plan, it shall enter an order\ndisapproving the plan and vacating the stay then in effect, which order\nshall become effective within ten days from the entry thereof unless,\nprior thereto, an amended repayment plan is filed with the court. Upon\nthe filing of the first such amended plan, the court shall extend and,\nin its discretion, upon the filing of any further amended plans it may\nextend the stay then in effect for such additional period of time as is\nrequired to permit the court to enter an order containing findings\npursuant to this section with respect to the amended plan.\n