Central to any understanding of the bankruptcy filing by Orange County, Calif., and the Orange County Investment Pool are the little known workings of Chapter 9 of the U.S. Bankruptcy Code, which governs municipal bankruptcies. Chapter 9 is significantly different from Chapter 11, which governs corporate bankruptcies. The five differences discussed here will have a critical impact on the Orange County cases.

First, Chapter 9, unlike Chapter 11, requires that an entity seeking relief meet these requirements:

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