Ley 68-2016 sec. 11 — Ley para la Revitalización de la Autoridad de Acueductos y Alcantarillados de
Puerto Rico / Ley para la Revitalización de la Autorid / Sec. 11
Sección 11. Se enmienda el Artículo 103 en el idioma de inglés de la Ley 21-2016, para que lea como sigue: “SECTION 103.-DEFINITION The following words and terms, when used in Chapters 1, 2, 6, and 7 of this Act
Status: in_force

shall have the meaning stated below: (a) ... ... (l) “Covered obligation” shall mean (1) any interest obligation, principal obligation or enumerated obligation of a government entity that is due or becomes due during the emergency period in respect of such government entity, (2) any obligation arising or resulting from, or related to, the guarantee by such government entity of any obligation of another entity that is due or becomes due during the emergency period, and (3) if provided for in an order issued pursuant under Section 201 (d) of this Act, the transfer of, or obligation to transfer, funds required to be made in advance of, or on the due date of, any obligation identified in the preceding clauses (1) and (2), if, and in each case, such government entity is declared to be in Rev. 02 de octubre de 2020 www.ogp.pr.gov Página 18 de 87 “Ley para la Revitalización de la Autoridad de Acueductos y Alcantarillados de Puerto Rico” [Ley 68-2016] a state of emergency by an executive order of the Governor as contemplated in Section 201(a) of this Act, as may be amended from time to time, but shall not include— (i) … (ii) … (iii) … (iv) … (v) any debt issued by a government entity after the enactment of this Act provided that the Governor certifies at the time of issuance that such debt will be irrevocably excluded from the definition of “covered obligation” under this Section for the purposes of this Act. (m) ... (n) “Debt instrument” shall include any document or instrument for, used in connection with, or related to: i. ... ... vii. ... Provided that “debt instrument” shall not include any contract for the provision of goods or services, nor shall it include any clearing services agreement or other agreement pursuant to which a financial institution provides services to the Bank or any other government entity. ... (q) “Emergency period”, in respect of any government entity, shall mean the period beginning on the date designated by the Governor in an executive order, as may be amended from time to time, issued pursuant to Section 201(a) of this Act, with respect to such government entity and ending on the date designated by the Governor in an executive order, which shall be no later than the last day of the covered period. (r) “Enumerated obligation” shall mean any obligation specifically listed or identified by category in an executive order, as may be amended from time to time, issued pursuant to Section 201(a) of this Act, which obligation (whether contingent or non-contingent, due or not due) may arise from any contract or agreement, including any financial instrument, debt instrument or unexpired lease, any obligation to pay the principal of, premium of, if any, penalties, reimbursement or indemnification amounts, fees, expenses, or other amounts relating to any indebtedness, any other liability, contingent or otherwise, and any other agreement on instrument provided for amounts or benefits payable by a government entity to any person, provided that an “enumerated obligation” shall not include any obligation that arises under a contract for the provision of goods or services to a government entity, nor shall it include any obligation arising under a clearing services agreement or other agreement pursuant to which a financial institution provides services to the Bank or any other government entity. (s) ... (t) “Government entity” shall mean any of the following— i. AFICA, AMA, each Bank and any subsidiary thereof, CCDA, COFINA, the Commonwealth, ERS, HFA, HTA, PBA, PFC, PRASA, PREPA, PRIDCO, PRIFA, the Puerto Rico Ports Authority, and UPR; and ii. … Rev. 02 de octubre de 2020 www.ogp.pr.gov Página 19 de 87 “Ley para la Revitalización de la Autoridad de Acueductos y Alcantarillados de Puerto Rico” [Ley 68-2016] Notwithstanding any provision of this Act, any government entity party to an Agreement with Creditors shall only be considered a “government entity” prior to the consummation of the financial restructuring contemplated by an Agreement with Creditors (for example, without it being construed as a limitation, the initial issuance of any securitization bonds in exchange for outstanding bonds issued by such government entity in accordance with an Agreement with Creditors), and, in such case, only in the event that (1) the Agreement with Creditors is terminated or (2) any holder or beneficial owner of a debt instrument issued by such government entity has commenced an action to enforce any right or remedy against said government entity under such debt instrument. For purposes of this definition, “Agreement with Creditors” shall mean an agreement executed among a government entity and certain creditors of such government entity, including a consensual restructuring support agreement relating to the restructuring of its debt, as it may be amended, supplemented or reinstated from time to time, regardless of whether it is securitized or not.” (u) ... ... (y) “Minimum public debt payment” shall mean, with respect to a covered obligation that is public debt and is also a principal obligation or an interest obligation— i. an amount determined by the Governor that is consistent with the Constitution of the Commonwealth, after consultation with the Secretary of the Treasury, which amount may be calculated as the difference between the amount of available resources projected for the applicable emergency period and the projected expenses for essential public services during such period, applied pro rata to all holders of covered obligations that are interest obligations that constitute public debt that are due and payable (or projected to become due and payable) during the applicable emergency period (excluding any deferred or accrued amounts that will be paid on the last day of such emergency period as a result of this Act), and, if all interest obligations that constitute public debt are satisfied in full, any remaining available resources shall be applied pro rata to all holders of covered obligations that are principal obligations that constitute public debt and that are due and payable (or projected to become due and payable) during the applicable emergency period (excluding any deferred or accrued amounts that will be paid on the last day of such emergency period as a result of this Act), provided that the minimum public debt payment in this clause (i) need not be paid all at once if such amount exceeds the available resources of the Commonwealth that are available to make such payment, including those subject to an executive order or applicable law that diverts such available resources towards the payment of public debt; and ii. ... (z) ...”