48 U.S.C. § 2163 — Reservation of territorial power to control territory and territorial instrumentalities
submitted 10 years ago by Pub. L. 114-187 to r/title-48-TERRITORIES-AND-INSULAR-POSSESSIONS · 205 words · no verdicts yet
This subchapter preserves a covered territory's political and governmental power, subject to specified limits. Certain territorial debt-composition laws, judgments, and unlawful executive orders cannot bind nonconsenting creditors or override this chapter.
Subject to subchapters I and II, this subchapter does not limit a covered territory's power to control itself or a territorial instrumentality* through legislation or otherwise while exercising political or governmental power, including spending for that purpose. Whether or not a case can be or has been started: (1) a territorial debt-composition or moratorium law cannot bind a creditor that does not consent, but only to the extent it bars principal or interest payments by an entity not described in section 109(b)(2) of title 11; (2) a judgment under such a law cannot bind a creditor that does not consent to the composition; and (3) unlawful executive orders changing debt holders' rights or diverting funds between instrumentalities or to the territory* are preempted by this chapter.
Subject to the limitations set forth in subchapters I and II of this chapter, this subchapter does not limit or impair the power of a covered territory* to control, by legislation or otherwise, the territory* or any territorial instrumentality* thereof in the exercise of the political or governmental powers of the territory or territorial instrumentality, including expenditures for such exercise, but whether or not a case has been or can be commenced under this subchapter—
a territory law prescribing a method of composition of indebtedness or a moratorium law, but solely to the extent that it prohibits the payment of principal or interest by an entity not described in section 109(b)(2) of title 11, may not bind any creditor of a covered territory or any covered territorial instrumentality* thereof that does not consent to the composition or moratorium;
a judgment entered under a law described in paragraph (1) may not bind a creditor that does not consent to the composition; and
unlawful executive orders that alter, amend, or modify rights of holders of any debt of the territory or territorial instrumentality, or that divert funds from one territorial instrumentality to another or to the territory, shall be preempted by this chapter.
Source credit: (Pub. L. 114–187, title III, § 303, June 30, 2016, 130 Stat. 579.)
- 2016Enacted · Pub. L. 114-187 · 130 Stat. 579
A history note hasn’t been published yet. The record shows enactment by Pub. L. 114-187 on 2016-06-30.
all 0 arguments · sorted by: best
no arguments yet — make the first case