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Code · BILL · 116th Congress · S. 1312 (Introduced in Senate) — To provide the option of discharging certain unsecured financial obligations of self-governing territories of the Uni... · Sec. 104

Sec. 104. Notice of discharge

453 words·~2 min read·/bill/116/s/1312/is/section-104

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

After a discharge under section 101, the qualifying territory shall promptly— notify the Secretary of the Treasury of the discharge; provide actual notice of the discharge and of the right to bring an action under section 103 to— any known holder of a financial obligation as of the date of the discharge; any known indenture trustee for a financial obligation as of the date of the discharge; any known agent bank for the loan, swap, repurchase agreement, or other derivative of the holder of a financial obligation as of the date of the discharge; and any known financial guaranty insurer of a financial obligation as of the date of the discharge; publish a general notice, in each of the governmental languages of the qualifying territory, of the discharge and of the right to bring an action under section 103 in— not less than 1 newspaper of general circulation of each governmental language published in the qualifying territory; and not less than 2 daily newspapers that each have a national circulation and a general audience; and publish the general notice described in subparagraph
(C)in the newspapers described in subparagraph
(C)not less than once each week during the 3-week period beginning on the date on which that general notice is first published. On the date on which the Secretary of the Treasury receives the notice described in paragraph (1)(A), the Secretary of the Treasury shall promptly cause to be published in the Federal Register a notice of that discharge and of the right to bring an action under section 103. A holder of a financial obligation shall be presumed to have received adequate notice of a discharge under section 101 if, during the 180-day period beginning on the date of a discharge under section 101, a qualifying territory provides actual notice of the discharge and of the right to bring an action under section 103 to— the holder of the financial obligation as of the date of the discharge; an indenture trustee for the security of the holder as of the date of the discharge; or an agent bank for the loan, swap, repurchase agreement, or other derivative of the holder of a financial obligation as of the date of the discharge. The presumption described in subparagraph
(A)may be rebutted by clear and convincing evidence that the holder of the financial obligation did not receive adequate evidence. A financial guaranty insurer shall be conclusively deemed to have received adequate notice of a discharge under section 101 if, during the 180-day period beginning on the date of a discharge under section 101, the financial guaranty insurer receives actual notice of the discharge and of the right to bring an action under section 103.
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