Puerto Rico Oversight, Management, and Economic Stability Act

Short title— This Act may be cited as the “Puerto Rico Oversight, Management, and Economic Stability Act” or “PROMESA”.

Table of contents— The table of contents of this Act is as follows:

In general— Except as provided in subsection (b), this Act shall take effect on the date of the enactment of this Act.

In general— Except as provided in subsection (b), if any provision of this Act or the application thereof to any person or circumstance is held invalid, the remainder of this Act, or the application of that provision to persons or circumstances other than those as to which it is held invalid, is not affected thereby, provided that title III is not severable from titles I and II, and titles I and II are not severable from title III.

Uniformity— If a court holds invalid any provision of this Act or the application thereof on the ground that the provision fails to treat similarly situated territories uniformly, then the court shall, in granting a remedy, order that the provision of this Act or the application thereof be extended to any other similarly situated territory, provided that the legislature of that territory adopts a resolution signed by the territory’s governor requesting the establishment and organization of a Financial Oversight and Management Board pursuant to section 101.

Agreed accounting standards— The term “agreed accounting standards” means modified accrual accounting standards or, for any period during which the Oversight Board determines in its sole discretion that a territorial government is not reasonably capable of comprehensive reporting that complies with modified accrual accounting standards, such other accounting standards as proposed by the Oversight Board.

Bond— The term “Bond” means a bond, loan, letter of credit, other borrowing title, obligation of insurance, or other financial indebtedness for borrowed money, including rights, entitlements, or obligations whether such rights, entitlements, or obligations arise from contract, statute, or any other source of law, in any case, related to such a bond, loan, letter of credit, other borrowing title, obligation of insurance, or other financial indebtedness in physical or dematerialized form of which the issuer, obligor, or guarantor is the territorial government.

Bond Claim— The term “Bond Claim” means, as it relates to a Bond—

Budget— The term “Budget” means the Territory Budget or an Instrumentality Budget, as applicable.

Puerto Rico— The term “Puerto Rico” means the Commonwealth of Puerto Rico.

Compliant budget— The term “compliant budget” means a budget that is prepared in accordance with—

Covered territorial instrumentality— The term “covered territorial instrumentality” means a territorial instrumentality designated by the Oversight Board pursuant to section 101 to be subject to the requirements of this Act.

Covered territory— The term “covered territory” means a territory for which an Oversight Board has been established under section 101.

Executive director— The term “Executive Director” means an Executive Director appointed under section 103(a).

Fiscal Plan— The term “Fiscal Plan” means a Territory Fiscal Plan or an Instrumentality Fiscal Plan, as applicable.

Government of Puerto Rico— The term “Government of Puerto Rico” means the Commonwealth of Puerto Rico, including all its territorial instrumentalities.

Governor— The term “Governor” means the chief executive of a covered territory.

Instrumentality Budget— The term “Instrumentality Budget” means a budget for a covered territorial instrumentality, designated by the Oversight Board in accordance with section 101, submitted, approved, and certified in accordance with section 202.

Instrumentality Fiscal Plan— The term “Instrumentality Fiscal Plan” means a fiscal plan for a covered territorial instrumentality, designated by the Oversight Board in accordance with section 101, submitted, approved, and certified in accordance with section 201.

Legislature— The term “Legislature” means the legislative body responsible for enacting the laws of a covered territory.

Modified accrual accounting standards— The term “modified accrual accounting standards” means recognizing revenues as they become available and measurable and recognizing expenditures when liabilities are incurred, in each case as defined by the Governmental Accounting Standards Board, in accordance with generally accepted accounting principles.

Oversight Board— The term “Oversight Board” means a Financial Oversight and Management Board established in accordance with section 101.

Territorial government— The term “territorial government” means the government of a covered territory, including all covered territorial instrumentalities.

Territory— The term “territory” means—

Territory Budget— The term “Territory Budget” means a budget for a territorial government submitted, approved, and certified in accordance with section 202.

Territory Fiscal Plan— The term “Territory Fiscal Plan” means a fiscal plan for a territorial government submitted, approved, and certified in accordance with section 201.