48 U.S.C. § 2147 — Oversight Board authority related to debt

Page 367 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 2149 such term is defined in section 101 of title 11), shall determine, in its sole discretion, that— (1) the entity has made good-faith efforts to reach a consensual restructuring with credi- tors; (2) the entity has— (A) adopted procedures necessary to de- liver timely audited financial statements; and (B) made public draft financial statements and other information sufficient for any in- terested person to make an informed deci- sion with respect to a possible restructuring; (3) the entity is either a covered territory that has adopted a Fiscal Plan certified by the Oversight Board, a covered territorial instru- mentality that is subject to a Territory Fiscal Plan certified by the Oversight Board, or a covered territorial instrumentality that has adopted an Instrumentality Fiscal Plan cer- tified by the Oversight Board; and (4)(A) no order approving a Qualifying Modi- fication under section 2231 of this title has been entered with respect to such entity; or (B) if an order approving a Qualifying Modi- fication has been entered with respect to such entity, the entity is unable to make its debt payments notwithstanding the approved Qualifying Modification, in which case, all claims affected by the Qualifying Modification shall be subject to a subchapter III case. (b) Issuance of restructuring certification The issuance of a restructuring certification under this section requires a vote of no fewer than 5 members of the Oversight Board in the affirmative, which shall satisfy the requirement set forth in section 2162(2) of this title. (Pub. L. 114–187, title II, § 206, June 30, 2016, 130 Stat. 574.) § 2147. Oversight Board authority related to debt issuance For so long as the Oversight Board remains in operation, no territorial government may, with- out the prior approval of the Oversight Board, issue debt or guarantee, exchange, modify, re- purchase, redeem, or enter into similar trans- actions with respect to its debt. (Pub. L. 114–187, title II, § 207, June 30, 2016, 130 Stat. 575.) § 2148. Required reports (a) Annual report Not later than 30 days after the last day of each fiscal year, the Oversight Board shall sub- mit a report to the President, Congress, the Governor and the Legislature, describing— (1) the progress made by the territorial gov- ernment in meeting the objectives of this chapter during the fiscal year; (2) the assistance provided by the Oversight Board to the territorial government in meet- ing the purposes of this chapter during the fis- cal year; (3) recommendations to the President and Congress on changes to this chapter or other Federal laws, or other actions of the Federal Government, that would assist the territorial government in complying with any certified Fiscal Plan; (4) the precise manner in which funds allo- cated to the Oversight Board under section 2127 of this title and, as applicable, section 2124(e) of this title have been spent by the Oversight Board during the fiscal year; and (5) any other activities of the Oversight Board during the fiscal year. (b) Report on discretionary tax abatement agree- ments Within six months of the establishment of the Oversight Board, the Governor shall submit a re- port to the Oversight Board documenting all ex- isting discretionary tax abatement or similar tax relief agreements to which the territorial government, or any territorial instrumentality, is a party, provided that— (1) nothing in this chapter shall be inter- preted to limit the power of the territorial government or any territorial instrumentality to execute or modify discretionary tax abate- ment or similar tax relief agreements, or to enforce compliance with the terms and condi- tions of any discretionary tax abatement or similar tax relief agreement, to which the ter- ritorial government or any territorial instru- mentality is a party; and (2) the members and staff of the Oversight Board shall not disclose the contents of the re- port described in this subsection, and shall otherwise comply with all applicable terri- torial and Federal laws and regulations re- garding the handling of confidential taxpayer information. (c) Quarterly reports of cash flow The Oversight Board, when feasible, shall re- port on the amount of cash flow available for the payment of debt service on all notes, bonds, debentures, credit agreements, or other instru- ments for money borrowed whose enforcement is subject to a stay or moratorium hereunder, to- gether with any variance from the amount set forth in the debt sustainability analysis of the Fiscal Plan under section 2141(b)(1)(I) of this title. (Pub. L. 114–187, title II, § 208, June 30, 2016, 130 Stat. 575.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a)(1) to (3) and (b)(1), was in the original ‘‘this Act’’, meaning Pub. L. 114–187, June 30, 2016, 130 Stat. 549, known as the Puerto Rico Oversight, Management, and Economic Stability Act and also as PROMESA, which is classified prin- cipally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 2101 of this title and Tables. § 2149. Termination of Oversight Board An Oversight Board shall terminate upon cer- tification by the Oversight Board that— (1) the applicable territorial government has adequate access to short-term and long-term credit markets at reasonable interest rates to meet the borrowing needs of the territorial government; and (2) for at least 4 consecutive fiscal years—