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BANKRUPTCY · UNITED STATES CODE
USC § 106. Waiver of sovereign immunity
(a) Notwithstanding an assertion of sovereign immunity, sovereign immunity
is abrogated as to a governmental unit to the extent set forth in this section
with respect to the following:
(1) Sections 105,
of this title.
(2) The court may hear and determine any issue arising with respect to
the application of such sections to governmental units.
(3) The court may issue against a governmental unit an order, process, or
judgment under such sections or the Federal Rules of Bankruptcy Procedure,
including an order or judgment awarding a money recovery, but not including
an award of punitive damages. Such order or judgment for costs or fees under
this title or the Federal Rules of Bankruptcy Procedure against any
governmental unit shall be consistent with the provisions and limitations of
2412 (d)(2)(A) of title 28.
(4) The enforcement of any such order, process, or judgment against any
governmental unit shall be consistent with appropriate nonbankruptcy law
applicable to such governmental unit and, in the case of a money judgment
against the United States, shall be paid as if it is a judgment rendered by
a district court of the United States.
(5) Nothing in this section shall create any substantive claim for relief
or cause of action not otherwise existing under this title, the Federal
Rules of Bankruptcy Procedure, or nonbankruptcy law.
(b) A governmental unit that has filed a proof of claim in the case is
deemed to have waived sovereign immunity with respect to a claim against such
governmental unit that is property of the estate and that arose out of the
same transaction or occurrence out of which the claim of such governmental
(c) Notwithstanding any assertion of sovereign immunity by a governmental
unit, there shall be offset against a claim or interest of a governmental unit
any claim against such governmental unit that is property of the estate.