The Constitution of the United States of America: Analysis and Interpretation: Annotations of Cases Decided by the Supreme Court of the United States to June 30, 1952
History
The Constitution of the United States of America: Analysis and Interpretation: Annotations of Cases Decided by the Supreme Court of the United States to June 30, 1952
Constitutional law -- United States; Constitutions -- United States
National Bank and Trust Co. _v._ Chicago, R.I. and P.R. Co.,[1094] where
Justice Sutherland wrote, on behalf of a unanimous court: "* * * these
acts, far-reaching though they may be, have not gone beyond the limit of
Congressional power; but rather have constituted extensions into a field
whose boundaries may not yet be fully revealed."[1095]
CONSTITUTIONAL LIMITATIONS ON THE POWER
In the exercise of its bankruptcy powers Congress must not transgress
the Fifth and Tenth Amendments. It may not take from a creditor specific
property previously acquired from a debtor nor circumscribe the
creditor's right to such an unreasonable extent as to deny him due
process of law;[1096] neither may it subject the fiscal affairs of a
political subdivision of a State to the control of a federal bankruptcy
court.[1097] Since Congress may not supersede the power of a State to
determine how a corporation shall be formed, supervised and dissolved, a
corporation which has been dissolved by a decree of a State court may
not file a petition for reorganization under the Bankruptcy Acts.[1098]
But Congress may impair the obligation of a contract and may extend the
provisions of the bankruptcy laws to contracts already entered into at
the time of their passage.[1099] It may also empower courts of
bankruptcy to entertain petitions by taxing agencies or
instrumentalities for a composition of their indebtedness where the
State has consented to the proceeding and the federal court is not
authorized to interfere with the fiscal or governmental affairs of the
petitioner.[1100] Also bankruptcy legislation must be uniform, but the
uniformity required is geographic, not personal. Congress may recognize
the laws of the States relating to dower, exemption, the validity of
mortgages, priorities of payment and similar matters, even though such
recognition leads to different results from State to State.[1101]
THE POWER NOT EXCLUSIVE
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