(b) RECEIPT OF REQUEST.—A guarantee may only 
be made under this Act if— 
(1) the Secretary first receives a request for 
such guarantee, in writing, from the Governor of 
Puerto Rico, along with the terms, including the 
purpose and amount, of the bond to be issued for 
which the guarantee is requested; and 
(2) the Secretary determines, pursuant to sec-
tion 103(b), that the government of Puerto Rico 
and, if applicable, any instrumentality thereof, has 
demonstrated meaningful improvement in the man-
agement of its finances. 
(c) OBLIGATION REQUIREMENTS.— 
(1) MATURITY.—An obligation shall require full 
repayment over a period not to exceed 30 years. 
(2) INTEREST RATE.—An obligation shall bear 
interest at a rate that does not exceed a level that 
the Secretary determines appropriate. 
(d) AGREEMENT DOCUMENT.— 
(1) MINIMUM
REQUIREMENTS.—A guarantee 
agreement shall be written and executed for any 
guarantee made under this Act in order that such 
guarantee may have legal effect, and, at a minimum, 
shall include appropriate language detailing the 
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terms and conditions set forth in this Act for such 
guarantee. 
(2) ADDITIONAL TERMS AND CONDITIONS.—A 
guarantee agreement may include such detailed 
terms and conditions in addition to those set forth 
in this section and as the Secretary determines ap-
propriate to protect the interests of the United 
States in case of default and to ensure repayment. 
(3) AUTHORITY OF THE SECRETARY.—The Sec-
retary is authorized to agree to any modification, 
amendment, or waiver or any such term or condition 
as the Secretary deems desirable to protect the in-
terests of the United States. 
(e) ADMINISTRATIVE EXPENSES.— 
(1) IN GENERAL.—The Secretary shall charge 
and collect fees for guarantees made under this Act 
in amounts the Secretary determines are sufficient 
to cover applicable administrative expenses. 
(2) AVAILABILITY.—Fees collected under this 
subsection shall be available to the Secretary, with-
out further appropriation, to pay for the administra-
tive expenses of carrying out this Act. 
(f) LIMITATION.—A guarantee may be made under 
this Act only if the Secretary determines that there is a 
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reasonable prospect of repayment of the principal and in-
terest on the bond to be guaranteed. 
SEC. 103. FINANCIAL IMPROVEMENT GUIDELINES AND DE-
TERMINATION. 
(a) EXAMINATION, GUIDELINES, AND RECOMMENDA-
TIONS.— 
(1) IN
GENERAL.—Not later than 120 days 
after the date of the enactment of this Act, the Sec-
retary shall— 
(A) examine the financial management 
practices of the government of Puerto Rico and 
instrumentalities thereof and identify specific 
areas in such practices that may need improve-
ment; and 
(B) establish guidelines and recommenda-
tions for the government of Puerto Rico and in-
strumentalities thereof to use as a basis for 
making improvements in its financial manage-
ment practices and in determining whether to 
make a guarantee requested under section 
102(b). 
(2) 
CRITERIA.—The 
guidelines 
and 
rec-
ommendations required under paragraph (1) shall 
address, at a minimum, the following criteria, where 
applicable: 
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(A) Fiscal stability and operational effi-
ciency. 
(B) Reduction in deficits and debt. 
(C) Accuracy in estimating revenues and 
expenditures. 
(D) Collection of taxes due. 
(E) Management of Federal grant monies. 
(F) Quality of financial controls, state-
ments, and reporting. 
(G) Use of information technology. 
(H) Regulations and licensing require-
ments affecting business establishment, expan-
sion, and operation. 
(3) REVISIONS.—The Secretary may revise such 
guidelines and recommendations as the Secretary de-
termines appropriate. 
(4) TRANSMISSION
AND
PUBLIC
NOTICE
OF 
GUIDELINES
AND
RECOMMENDATIONS.—The Sec-
retary shall, within 10 days of establishing or revis-
ing guidelines or recommendations under this sub-
section— 
(A) transmit such guidelines and rec-
ommendations to the Governor of Puerto Rico 
and the Congress; 
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(B) publish such guidelines and rec-
ommendations in the Federal Register; and 
(C) 
make 
such 
guidelines 
and 
rec-
ommendations available to the public on the 
website of the Department of the Treasury. 
(b) FINANCIAL IMPROVEMENT DETERMINATION.— 
(1) DETERMINATION.—The Secretary shall, for 
purposes of section 102(b)(2), determine whether 
the government of Puerto Rico and, if applicable, 
any instrumentality thereof, has demonstrated 
meaningful improvement in the management of its 
finances. 
(2) BASIS FOR DETERMINATION.—In making a 
determination under paragraph (1), the Secretary 
shall take into account the guidelines and rec-
ommendations established under subsection (a) and 
such other criteria as the Secretary determines ap-
propriate. 
(3) NOTIFICATION.—If, under paragraph (1), 
the Secretary determines that the government of 
Puerto Rico and, if applicable, any instrumentality 
thereof, has not demonstrated meaningful improve-
ment in the management of its finances, the Sec-
retary shall— 
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(A) notify the Governor of Puerto Rico and 
the Congress, in writing, of the Secretary’s de-
cision and the basis for such decision; 
(B) publish a notice of such determination 
in the Federal Register; 
(C) make such notice available to the pub-
lic on the website of the Department of the 
Treasury; 
(D) make recommendations to the Gov-
ernor of Puerto Rico on specific ways the gov-
ernment of Puerto Rico and, if applicable, any 
instrumentality thereof, can demonstrate mean-
ingful improvement; and 
(E) if the Secretary determines it appro-
priate, make recommendations to— 
(i) the Congress about specific legisla-
tion that can be enacted to improve the fi-
nances, financial stability, and financial 
management practices of the government 
of Puerto Rico and that would help the 
government of Puerto Rico or any instru-
mentality thereof demonstrate meaningful 
improvement and implement the rec-
ommendations in the areas identified by 
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the Secretary under subsection (a)(1)(B); 
and 
(ii) the heads of Federal departments 
and agencies other than the Department of 
the Treasury about specific administrative 
actions that could be taken to improve the 
finances, financial stability, and financial 
management practices of the government 
of Puerto Rico and that would help the 
government of Puerto Rico or any instru-
mentality thereof demonstrate meaningful 
improvement and implement the rec-
ommendations in the areas identified by 
the Secretary under subsection (a)(1)(B). 
SEC. 104. PUBLIC NOTICE. 
Upon making any guarantee under this Act, the Sec-
retary shall publish notice of such action, along with the 
results of the determination made under section 103(b), 
in the Federal Register and make such information avail-
able to the public on the website of the Department of 
the Treasury. 
SEC. 105. LOAN GUARANTEE FUNDING. 
There are appropriated to the Secretary such sums 
as may be necessary for the cost, as defined in section 
502 of the Congressional Budget Act of 1974, of bond 
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guarantees made under this title. The Secretary may make 
such bond guarantees notwithstanding subsections (b) and 
(d) of section 504 of the Federal Credit Reform Act of 
1990 (2 U.S.C. 661c). 
TITLE II—TECHNICAL 
ASSISTANCE FOR PUERTO RICO 
SEC. 201. TECHNICAL ASSISTANCE. 
The Secretary is authorized to provide advice and 
technical assistance to the government of Puerto Rico and 
instrumentalities thereof about ways and means to dem-
onstrate meaningful improvement in managing its fi-
nances (as described under section 103). 
TITLE III—PURCHASE AND SALE 
OF PUERTO RICO BONDS 
SEC. 301. AMENDMENT TO THE FEDERAL RESERVE ACT. 
Section 14(b)(1) of the Federal Reserve Act (12 
U.S.C. 355(1)) is amended by inserting after ‘‘continental 
United States’’ the following: ‘‘or Puerto Rico’’. 
Æ 
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