Sec. 101. Relief through exercise of the power to regulate commerce, the bankruptcy power, and the territorial power
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Pursuant to clauses 3 and 4 of section 8 of article I and clause 2, section 3 of article IV of the Constitution of the United States, any unsecured financial obligation of a qualifying territory or an instrumentality of a qualifying territory that is outstanding is discharged on the date on which a resolution stating that the qualifying territory wishes to discharge the unsecured financial obligations of the qualifying territory and the instrumentalities of the qualifying territory— is adopted by an affirmative vote of more than 1/2 of the members of each house of the legislature of that qualifying territory and is signed by the chief executive of the qualifying territory; or is adopted by an affirmative vote of not less than 2/3 of the members of each house of the legislature of that qualifying territory.
A qualifying territory may discharge unsecured financial obligations of the qualifying territory and the instrumentalities of the qualifying territory under this title not more frequently than once during any 7-year period, and such discharge shall prohibit the qualifying territory from discharging, adjusting, or impairing, in any manner or degree including in a proceeding under title III of PROMESA ( 48 U.S.C. 2161 et seq.), a debt described in section 2(5)(B)(ii). Notwithstanding any other provision of Federal, State, or territorial law, the ability of a qualifying territory to obtain a discharge under this Act shall not be stayed, avoided, or otherwise limited by operation of any provision of law or by order of a court, oversight board, or administrative agency in any proceeding.
Except as provided in paragraphs
(1)and
(3)of section 102, nothing in subsection
(a)shall affect the validity and enforceability of any financial obligation of a qualifying territory or an instrumentality of a qualifying territory to the extent that the obligation is a secured financial obligation. Notwithstanding paragraph (1), a secured financial obligation of a qualifying territory or an instrumentality of a qualifying territory may be voidable or otherwise impaired under any other applicable law. Nothing in this Act shall be construed to operate as a stay of a pending case brought under title III of PROMESA ( 48 U.S.C. 2161 et seq.), or of any act of an oversight board appointed under that Act, or to reinstate any financial obligation discharged under this Act through any procedure under PROMESA ( 48 U.S.C. 2101 et seq.).
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Sec. 101
Relief through exercise of the power to regulate commerce, the bankruptcy power, and the territorial power
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