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Code · BILL · 114th Congress · S. 2676 (Introduced in Senate) — To provide for the adjustment of the debts of the Commonwealth of Puerto Rico, and for other purposes. · Sec. 232

Sec. 232. Confirmation

381 words·~2 min read·/bill/114/s/2676/is/section-232·

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A special tax payer may object to confirmation of a plan. The court shall confirm the plan if— the plan complies with the provisions of title 11, United States Code, made applicable in a case under this title by section 243(a); the plan complies with the provisions of this title; the debtor is not prohibited by law from taking any action necessary to carry out the plan; except to the extent that the holder of a particular claim has agreed to a different treatment of such claim, the plan provides that on the effective date of the plan each holder of a claim of a kind specified in section 507(a)(2) of title 11, United States Code, will receive on account of such claim cash equal to the allowed amount of such claim; any regulatory or electoral approval necessary under applicable nonbankruptcy law in order to carry out any provision of the plan has been obtained, or such provision is expressly conditioned on such approval; the plan is in the best interests of creditors and is feasible; the plan is consistent with the Fiscal Plan submitted under title II; the plan ensures that accrued pension liability in the Commonwealth Employee Retirement System and Teacher Retirement System shall be treated as senior, first priority secured debt, senior to any existing senior secured debt by statutory lien and notwithstanding any other provision of law may be satisfied by payment from the general revenues of the Commonwealth, provided that the maximum claim to be treated as secured by this senior, first priority secured statutory lien of an active annuitant shall be equal to the Pension Benefit Guaranty Corporation maximum guarantee for participants in a single-employer plan and that the maximum claim to be treated as secured by this senior, first priority secured statutory lien of an active or vested inactive participant in said pension funds shall be equal to the full benefit accrued by such active or inactive participant; and feasible and equitable the plan does not unduly impair the claims of holders of bonds that are— general obligations of the Territory to which the Territory pledged the full faith and credit and the taxing power of the Territory; and identified in an applicable nonbankruptcy law as having a first claim on available Territory resources.
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