Sec. 103. Actions relating to the status of financial obligations
709 words·~3 min read·
/bill/116/s/1312/is/section-103A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Any financial obligation is conclusively deemed to be an unsecured financial obligation except to the extent that the holder of that obligation proves that the financial obligation is a secured financial obligation in an action for a declaratory judgment that is filed— in— an appropriate territorial court of the qualifying territory; or a district court of the United States in the qualifying territory; and not later than 180 days after the date of a discharge under section 101.
In an action described in subsection (a), the holder of an obligation shall be required to prove by clear and convincing evidence that— the obligation is a secured financial obligation; and any revenues generated after a discharge under section 101 are the proceeds of the collateral securing the secured financial obligation. Notwithstanding title 28, United States Code, a court described in subsection (a)(1) shall have exclusive jurisdiction over an action involving, arising from, or related to the status of a financial obligation as a secured or an unsecured financial obligation under subsection (a), including— any action asserting a taking under the Fifth Amendment of the Constitution of the United States; and any action for declaratory judgment.
Any appeal from an action under this section shall be heard solely in— for a case filed under subsection (a)(1)(A), the appropriate territorial court of the qualifying territory; or for a case filed under subsection (a)(1)(B), the appropriate court of appeals of the United States for the qualifying territory. All parties shall bear their own costs in an action under this section. Any party to an action under this section shall be estopped in other actions from claiming that the party has been deprived of the property of that party by virtue of— a discharge under section 101; or a final ruling in an action described in subsection
(a)that a financial obligation of a party is an unsecured financial obligation. Notwithstanding any other provision of law, a creditor of a qualifying territory or an instrumentality of a qualifying territory that has received a discharge under this title may not avoid or bring an action to avoid, directly or derivatively, any transfer of property made by the qualifying territory or instrumentality. In addition to the relief provided elsewhere in this Act, a qualifying territory or an instrumentality of a qualifying territory, in a civil action described in paragraph (2), may avoid any security interest— securing a financial obligation that would be avoidable by a trustee in a case under chapter 7 of title 11, United States Code, filed on the date of the discharge under section 101 if, notwithstanding sections 101(41) and 109(a) of title 11, United States Code, or any statute of limitations under that title, the qualifying territory or the instrumentality of the qualifying territory were deemed an eligible debtor under chapter 7 of title 11, United States Code; or securing a financial obligation to the extent that the amount owed on the financial obligation exceeds the value of any collateral, subject to restrictions under paragraph (3), securing the financial obligation. A civil action described in this paragraph shall be— brought by a qualifying territory, an instrumentality of a qualifying territory, or a relator on behalf of a qualifying territory or an instrumentality of a qualifying territory not later than 2 years after the date of a discharge under section 101; and filed in— an appropriate territorial court of the qualifying territory; or a district court of the United States in the qualifying territory. For the purpose of determining the value of collateral under paragraph (1)(B), the following shall not be included: Any proceeds, products, offspring, or profits of the collateral not in existence on the date of a discharge under section 101, regardless of whether those proceeds, products, offspring, or profits of the collateral would become collateral subject to a security interest after the date of a discharge under section 101. Any property acquired or anticipated to be acquired by a qualifying territory or an instrumentality of a qualifying territory after the date of a discharge under section 101, regardless of whether that property, when acquired, would have become collateral subject to a security interest. Any contract right to tax revenues that arise after the date of a discharge under section 101.