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Code · BILL · 115th Congress · S. 3262 (Introduced in Senate) — To provide the option of discharging certain unsecured financial obligations of self-governing territories of the Uni... · Sec. 102

Sec. 102. Effect of discharge

227 words·~1 min read·/bill/115/s/3262/is/section-102

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A discharge under section 101 shall— except in regard to actions brought under section 103, operate as an permanent stay, applicable to all entities and enforceable by the qualifying territory or an instrumentality thereof in any court with jurisdiction over an action described in section 103(a), against the commencement or continuation of an action, the employment of process, or an act to collect, recover or offset any outstanding financial obligation to the extent that the financial obligation is not a secured financial obligation as of the date of the discharge, regardless of whether discharge of that unsecured financial obligation is waived by the qualifying territory; void any outstanding judgment entered on an unsecured financial obligation of the qualifying territory or instrumentality thereof to the extent that such judgment is a determination of liability of the qualifying territory or instrumentality; if prior to the date of the discharge under section 101, the qualifying territory or an instrumentality of the qualifying territory entered into a security agreement securing a financial obligation, prevent the security interest created by the security agreement from attaching to any property acquired by the qualifying territory or an instrumentality thereof after the date of the discharge under section 101, except to the extent that such property constitutes the proceeds of collateral to which the security interest had attached as of the date of the discharge.
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