I 
114TH CONGRESS 
1ST SESSION H. R. 3725 
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 mean-
ingful improvement in the management of its public finances, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 8, 2015 
Mr. PIERLUISI introduced the following bill; which was referred to the 
Committee on Financial Services 
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, includ-
ing its public corporations and instrumentalities, on the 
condition that the government of the territory dem-
onstrates meaningful improvement in the management 
of its public finances, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Puerto Rico Financial 
Improvement and Bond Guarantee Act of 2015’’. 
SEC. 2. PURPOSE AND SENSE OF CONGRESS. 
(a) PURPOSE.—The purpose of this Act is to em-
power the Secretary of the Treasury to facilitate access 
of the government of Puerto Rico to capital markets for— 
(1) immediate short-term financing needs, 
(2) capital expenditures, and 
(3) debt refinancing, 
by guaranteeing the principal and interest payments on 
bonds issued by the government of Puerto Rico upon de-
termination by the Secretary that certain conditions relat-
ing to financial accountability in Puerto Rico have been 
met. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) Puerto Rico, as a territory, is treated in-
equitably and inconsistently by Federal law and pol-
icy, and that such treatment has contributed signifi-
cantly to the current financial distress of the govern-
ment of Puerto Rico; 
(2) consequently, there exists a Federal respon-
sibility and need to help the government of Puerto 
Rico gain access to the capital markets on reason-
able terms; 
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(3) stronger financial controls, budgeting proc-
esses, and accountability measures should be imple-
mented by the government of Puerto Rico in order 
to improve its financial standing and creditworthi-
ness; and 
(4) it is in the national interest of the United 
States to reduce the risk of default by the govern-
ment of Puerto Rico on its bond payments, to en-
sure essential public services can be provided in the 
territory, and to promote economic growth and re-
sponsible borrowing in the territory. 
SEC. 3. DEFINITIONS. 
For purposes of this Act: 
(1) 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). 
(2) GUARANTEE.—The term ‘‘guarantee’’— 
(A) 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 
(B) includes a loan guarantee commitment 
(as defined in such section 502). 
(3) INSTRUMENTALITY
THEREOF.—With re-
spect to Puerto Rico, the term ‘‘instrumentality 
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thereof’’ means any political subdivision, instrumen-
tality, or instrumentality of a political subdivision of 
Puerto Rico. 
(4) 
OBLIGATION.—The 
term 
‘‘obligation’’ 
means a bond that is guaranteed under this Act. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
TITLE I—FINANCIAL IMPROVE-
MENT AND BOND GUARAN-
TEES FOR PUERTO RICO 
SEC. 101. BOND GUARANTEES. 
(a) GENERAL AUTHORITY.—The Secretary of the 
Treasury is authorized to guarantee bonds issued by the 
government of Puerto Rico or any instrumentality thereof 
that are issued solely for the purpose of financing capital 
projects or refinancing existing debt. 
(b) LIMITATION.—The authority granted under sub-
section (a) does not extend to bonds issued to finance 
operational expenses, except with respect to tax revenue 
anticipation notes. 
SEC. 102. TERMS AND CONDITIONS. 
(a) IN GENERAL.—A guarantee made under this Act 
may guarantee up to 100 percent of the principal and in-
terest of the obligation. 
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