A bill to establish a procedure for adjustment of debts of public agencies and instrumentalities and political subdivisions.

Grants to courts of bankruptcy the authority to adjust the debts of public agencies and instrumentalities and political subdivisions upon voluntary petition setting forth the eligibility of the petition, that it is insolvent or unable to pay its debts as they mature, and that it desires to effect a plan for the composition, adjustment, or extension of its debt.

States that a petition filed pursuant to this Act shall operate to prohibit the doing of any act, and to stay the commencement or continuation of any action or special proceeding in any court in any jurisdiction, seeking to enforce against the petitioner, or any of petitioner's funds, property, receivables, or revenues, any judgment, order, lien, set-off or counterclaim relating to any contract, debt, or obligation for a period of 90 days, or for such additional period of time as may be required to permit the court to enter an order pursuant to this Act.

Provides for notice to and a hearing for creditors of the petitioner, and for a hearing on the confirmation and any modifications of the adjustment plan.