48 U.S.C. § 2149 — Termination of Oversight Board

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— Page 368 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 2150 (A) the territorial government has devel- oped its Budgets in accordance with modi- fied accrual accounting standards; and (B) the expenditures made by the terri- torial government during each fiscal year did not exceed the revenues of the territorial government during that year, as determined in accordance with modified accrual ac- counting standards. (Pub. L. 114–187, title II, § 209, June 30, 2016, 130 Stat. 576.) § 2150. No full faith and credit of the United States (a) In general The full faith and credit of the United States is not pledged for the payment of any principal of or interest on any bond, note, or other obliga- tion issued by a covered territory or covered ter- ritorial instrumentality. The United States is not responsible or liable for the payment of any principal of or interest on any bond, note, or other obligation issued by a covered territory or covered territorial instrumentality. (b) Subject to appropriations Any claim to which the United States is deter- mined to be liable under this chapter shall be subject to appropriations. (c) Funding No Federal funds shall be authorized by this chapter for the payment of any liability of the territory or territorial instrumentality. (Pub. L. 114–187, title II, § 210, June 30, 2016, 130 Stat. 576.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (b) and (c), 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 principally 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. § 2151. Analysis of pensions (a) Determination If the Oversight Board determines, in its sole discretion, that a pension system of the terri- torial government is materially underfunded, the Oversight Board shall conduct an analysis prepared by an independent actuary of such pen- sion system to assist the Oversight Board in evaluating the fiscal and economic impact of the pension cash flows. (b) Provisions of analysis An analysis conducted under subsection (a) shall include— (1) an actuarial study of the pension liabil- ities and funding strategy that includes a for- ward looking projection of payments of at least 30 years of benefit payments and funding strategy to cover such payments; (2) sources of funding to cover such pay- ments; (3) a review of the existing benefits and their sustainability; and (4) a review of the system’s legal structure and operational arrangements, and any other studies of the pension system the Oversight Board shall deem necessary. (c) Supplementary information In any case, the analysis conducted under sub- section (a) shall include information regarding the fair market value and liabilities using an ap- propriate discount rate as determined by the Oversight Board. (Pub. L. 114–187, title II, § 211, June 30, 2016, 130 Stat. 576.) § 2152. Intervention in litigation (a) Intervention The Oversight Board may intervene in any litigation filed against the territorial govern- ment. (b) Injunctive relief (1) In general If the Oversight Board intervenes in a litiga- tion under subsection (a), the Oversight Board may seek injunctive relief, including a stay of litigation. (2) No independent basis for relief This section does not create an independent basis on which injunctive relief, including a stay of litigation, may be granted. (Pub. L. 114–187, title II, § 212, June 30, 2016, 130 Stat. 577.) SUBCHAPTER III—ADJUSTMENTS OF DEBTS § 2161. Applicability of other laws; definitions (a) Sections applicable to cases under this sub- chapter Sections 101 (except as otherwise provided in this section), 102, 104, 105, 106, 107, 108, 112, 333, 344, 347(b), 349, 350(b), 351, 361, 362, 364(c), 364(d), 364(e), 364(f), 365, 366, 501, 502, 503, 504, 506, 507(a)(2), 509, 510, 524(a)(1), 524(a)(2), 544, 545, 546, 547, 548, 549(a), 549(c), 549(d), 550, 551, 552, 553, 555, 556, 557, 559, 560, 561, 562, 902 (except as otherwise provided in this section), 922, 923, 924, 925, 926, 927, 928, 942, 944, 945, 946, 1102, 1103, 1109, 1111(b), 1122, 1123(a)(1), 1123(a)(2), 1123(a)(3), 1123(a)(4), 1123(a)(5), 1123(b), 1123(d), 1124, 1125, 1126(a), 1126(b), 1126(c), 1126(e), 1126(f), 1126(g), 1127(d), 1128, 1129(a)(2), 1129(a)(3), 1129(a)(6), 1129(a)(8), 1129(a)(10), 1129(b)(1), 1129(b)(2)(A), 1129(b)(2)(B), 1142(b), 1143, 1144, 1145, and 1146(a) of title 11 apply in a case under this subchapter and sec- tion 930 of title 11 applies in a case under this subchapter; however, section 930 shall not apply in any case during the first 120 days after the date on which such case is commenced under this subchapter. (b) Meanings of terms A term used in a section of title 11, made ap- plicable in a case under this subchapter by sub- section (a), has the meaning given to the term for the purpose of the applicable section, unless the term is otherwise defined in this subchapter. (c) Definitions In this subchapter: