---
kind: "section"
citation: "48 U.S.C. § 2163"
title: "48"
title_heading: "Territories and Insular Possessions"
number: "2163"
heading: "Reservation of territorial power to control territory and territorial instrumentalities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/48/2163"
units:
  - "Chapter 20 — Puerto Rico Oversight, Management, and Economic Stability"
  - "Subchapter III — Adjustments of Debts"
---

# §2163. Reservation of territorial power to control territory and territorial instrumentalities


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](/usc/48/2104.md?p=8) to control, by legislation or otherwise, the [territory](/usc/48/2104.md?p=20) or any [territorial instrumentality](/usc/48/2104.md?p=19-A) thereof in the exercise of the political or governmental powers of the [territory](/usc/48/2104.md?p=20) or [territorial instrumentality](/usc/48/2104.md?p=19-A), including expenditures for such exercise, but whether or not a case has been or can be commenced under this subchapter—

- (1) a [territory](/usc/48/2104.md?p=20) 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](/usc/11/109.md?p=b-2), may not bind any creditor of a [covered territory](/usc/48/2104.md?p=8) or any [covered territorial instrumentality](/usc/48/2104.md?p=7) thereof that does not consent to the composition or moratorium;
- (2) a judgment entered under a law described in [paragraph (1)](#1) may not bind a creditor that does not consent to the composition; and
- (3) unlawful executive orders that alter, amend, or modify rights of holders of any debt of the [territory](/usc/48/2104.md?p=20) or [territorial instrumentality](/usc/48/2104.md?p=19-A), or that divert funds from one [territorial instrumentality](/usc/48/2104.md?p=19-A) to another or to the [territory](/usc/48/2104.md?p=20), shall be preempted by this chapter.

## Source credit

(Pub. L. 114–187, title III, § 303, June 30, 2016, 130 Stat. 579.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in par. (3), was in the original “this Act”, meaning Pub. L. 114–187, June 30, 2016, 130 Stat. 549, known as the Puerto Rico Oversight, Management, and Economic Stability Act and also as PROMESA, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 2101 of this title and Tables.