DEFINITION OF MUNICIPALITY.

SECTION 1. DEFINITION OF MUNICIPALITY. Section 101(31) of title 11, United States Code, is amended— (1) in subparagraph (A)— (A) by inserting “and a municipality” after partnership”; and (B) in clause (ii) by striking “and” at the end; (2) in subparagraph (B)(ii) by adding “and” at the end; and (3) by adding at the end the following: “(C) with reference to a municipality, financial condition such that the municipality is— “(i) generally not paying its debts as they become due unless such debts are the subject of a bona fide dispute; or “(ii) unable to pay its debts as they become due;”.