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Ashton v. Cameron County Water Improvement District No. 1, 298 U.S. 513 (1936), was a United States Supreme Court case in which the court held that an insolvent state agency cannot declare bankruptcy. More particularly, Congress's powers under the Bankruptcy Clause cannot extend to state agencies in violation of federalism principles, and bankruptcy courts cannot establish jurisdiction over the state agencies where those principles have been violated. The modern municipal bankruptcy statute, Chapter 9 of the Bankruptcy Code, is constitutional.
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