Section 1 Short title
This Act may be cited as the “Puerto Rico Financial Improvement and Bond Guarantee Act of 2015”.
Puerto Rico Financial Improvement and Bond Guarantee Act of 2015
A BILL
To authorize the Secretary of the Treasury to guarantee principal and interest payments on bonds issued by the government of the U.S. territory of Puerto Rico, including its public corporations and instrumentalities, on the condition that the government of the territory demonstrates meaningful improvement in the management of its public finances, and for other purposes.
Sec. 2 Purpose and sense of Congress
Purpose— The purpose of this Act is to empower the Secretary of the Treasury to facilitate access of the government of Puerto Rico to capital markets for—
immediate short-term financing needs,
capital expenditures, and
debt refinancing,
Sense of Congress— It is the sense of Congress that—
Puerto Rico, as a territory, is treated inequitably and inconsistently by Federal law and policy, and that such treatment has contributed significantly to the current financial distress of the government of Puerto Rico;
consequently, there exists a Federal responsibility and need to help the government of Puerto Rico gain access to the capital markets on reasonable terms;
stronger financial controls, budgeting processes, and accountability measures should be implemented by the government of Puerto Rico in order to improve its financial standing and creditworthiness; and
it is in the national interest of the United States to reduce the risk of default by the government of Puerto Rico on its bond payments, to ensure essential public services can be provided in the territory, and to promote economic growth and responsible borrowing in the territory.
Sec. 3 Definitions
For purposes of this Act:
Cost— With respect to a guarantee, the term “cost” has the meaning given such term under section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
Guarantee— The term “guarantee”—
has the meaning given the term “loan guarantee” in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a); and
includes a loan guarantee commitment (as defined in such section 502).
Instrumentality thereof— With respect to Puerto Rico, the term “instrumentality thereof” means any political subdivision, instrumentality, or instrumentality of a political subdivision of Puerto Rico.
Obligation— The term “obligation” means a bond that is guaranteed under this Act.
Secretary— The term “Secretary” means the Secretary of the Treasury.