100 
HR 5278 RFS
Survey, which is jointly administered by the Bureau 
of the Census and the Bureau of Labor Statistics, 
and which is the primary source of labor force sta-
tistics for the population of the United States; and 
(2) if necessary, the Bureau of the Census 
should request the funding required to conduct this 
feasibility study as part of its budget submission to 
Congress for fiscal year 2018. 
SEC. 405. AUTOMATIC STAY UPON ENACTMENT. 
(a) DEFINITIONS.—In this section: 
(1) LIABILITY.—The term ‘‘Liability’’ means a 
bond, loan, letter of credit, other borrowing title, ob-
ligation 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 related to such a bond, loan, letter of 
credit, other borrowing title, obligation of insurance, 
or other financial indebtedness in physical or dema-
terialized form, of which— 
(A) the issuer, obligor, or guarantor is the 
Government of Puerto Rico; and 
(B) the date of issuance or incurrence pre-
cedes the date of enactment of this Act. 
VerDate Sep 11 2014 
21:57 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00100
Fmt 6652
Sfmt 6201
E:\BILLS\H5278.RFS
H5278
asabaliauskas on DSK3SPTVN1PROD with BILLS
101 
HR 5278 RFS
(2) LIABILITY
CLAIM.—The term ‘‘Liability 
Claim’’ means, as it relates to a Liability— 
(A) right to payment, whether or not such 
right is reduced to judgment, liquidated, unliq-
uidated, fixed, contingent, matured, unmatured, 
disputed, undisputed, legal, equitable, secured, 
or unsecured; or 
(B) right to an equitable remedy for 
breach of performance if such breach gives rise 
to a right to payment, whether or not such 
right to an equitable remedy is reduced to judg-
ment, fixed, contingent, matured, unmatured, 
disputed, undisputed, secured, or unsecured. 
(b) IN GENERAL.—Except as provided in subsection 
(c) of this section, the establishment of an Oversight 
Board for Puerto Rico (i.e., the enactment of this Act) 
in accordance with section 101 operates with respect to 
a Liability as a stay, applicable to all entities (as such 
term is defined in section 101 of title 11, United States 
Code), of— 
(1) the commencement or continuation, includ-
ing the issuance or employment of process, of a judi-
cial, administrative, or other action or proceeding 
against the Government of Puerto Rico that was or 
could have been commenced before the enactment of 
VerDate Sep 11 2014 
21:57 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00101
Fmt 6652
Sfmt 6201
E:\BILLS\H5278.RFS
H5278
asabaliauskas on DSK3SPTVN1PROD with BILLS
102 
HR 5278 RFS
this Act, or to recover a Liability Claim against the 
Government of Puerto Rico that arose before the en-
actment of this Act; 
(2) the enforcement, against the Government of 
Puerto Rico or against property of the Government 
of Puerto Rico, of a judgment obtained before the 
enactment of this Act; 
(3) any act to obtain possession of property of 
the Government of Puerto Rico or of property from 
the Government of Puerto Rico or to exercise control 
over property of the Government of Puerto Rico; 
(4) any act to create, perfect, or enforce any 
lien against property of the Government of Puerto 
Rico; 
(5) any act to create, perfect, or enforce against 
property of the Government of Puerto Rico any lien 
to the extent that such lien secures a Liability Claim 
that arose before the enactment of this Act; 
(6) any act to collect, assess, or recover a Li-
ability Claim against the Government of Puerto Rico 
that arose before the enactment of this Act; and 
(7) the setoff of any debt owing to the Govern-
ment of Puerto Rico that arose before the enactment 
of this Act against any Liability Claim against the 
Government of Puerto Rico. 
VerDate Sep 11 2014 
21:57 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00102
Fmt 6652
Sfmt 6201
E:\BILLS\H5278.RFS
H5278
asabaliauskas on DSK3SPTVN1PROD with BILLS
103 
HR 5278 RFS
(c) STAY NOT OPERABLE.—The establishment of an 
Oversight Board for Puerto Rico in accordance with sec-
tion 101 does not operate as a stay— 
(1) solely under subsection (b)(1) of this sec-
tion, of the continuation of, including the issuance or 
employment of process, of a judicial, administrative, 
or other action or proceeding against the Govern-
ment of Puerto Rico that was commenced on or be-
fore December 18, 2015; or 
(2) of the commencement or continuation of an 
action or proceeding by a governmental unit to en-
force such governmental unit’s or organization’s po-
lice and regulatory power, including the enforcement 
of a judgment other than a money judgment, ob-
tained in an action or proceeding by the govern-
mental unit to enforce such governmental unit’s or 
organization’s police or regulatory power. 
(d) CONTINUATION OF STAY.—Except as provided in 
subsections (e), (f), and (g) the stay under subsection (b) 
continues until the earlier of— 
(1) the later of— 
(A) the later of— 
(i) February 15, 2017; or 
VerDate Sep 11 2014 
21:57 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00103
Fmt 6652
Sfmt 6201
E:\BILLS\H5278.RFS
H5278
asabaliauskas on DSK3SPTVN1PROD with BILLS
104 
HR 5278 RFS
(ii) six months after the establishment 
of an Oversight Board for Puerto Rico as 
established by section 101(b); 
(B) the date that is 75 days after the date 
in subparagraph (A) if the Oversight Board de-
livers a certification to the Governor that, in 
the Oversight Board’s sole discretion, an addi-
tional 75 days are needed to seek to complete 
a voluntary process under title VI of this Act 
with respect to the government of the Common-
wealth of Puerto Rico or any of its territorial 
instrumentalities; or 
(C) the date that is 60 days after the date 
in subparagraph (A) if the district court to 
which an application has been submitted under 
subparagraph 601(m)(1)(D) of this Act deter-
mines, in the exercise of the court’s equitable 
powers, that an additional 60 days are needed 
to complete a voluntary process under title VI 
of this Act with respect to the government of 
the Commonwealth of Puerto Rico or any of its 
territorial instrumentalities; or 
(2) with respect to the government of the Com-
monwealth of Puerto Rico or any of its territorial in-
strumentalities, the date on which a case is filed by 
VerDate Sep 11 2014 
21:57 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00104
Fmt 6652
Sfmt 6201
E:\BILLS\H5278.RFS
H5278
asabaliauskas on DSK3SPTVN1PROD with BILLS
105 
HR 5278 RFS
or on behalf of the government of the Common-
wealth of Puerto Rico or any of its territorial instru-
mentalities, as applicable, under title III. 
(e) JURISDICTION, RELIEF FROM STAY.— 
(1) The United States District Court for the 
District of Puerto Rico shall have original and exclu-
sive jurisdiction of any civil actions arising under or 
related to this section. 
(2) On motion of or action filed by a party in 
interest and after notice and a hearing, the United 
States District Court for the District of Puerto Rico, 
for cause shown, shall grant relief from the stay pro-
vided under subsection (b) of this section. 
(f) TERMINATION OF STAY; HEARING.—Forty-five 
days after a request under subsection (e)(2) for relief from 
the stay of any act against property of the Government 
of Puerto Rico under subsection (b), such stay is termi-
nated with respect to the party in interest making such 
request, unless the court, after notice and a hearing, or-
ders such stay continued in effect pending the conclusion 
of, or as a result of, a final hearing and determination 
under subsection (e)(2). A hearing under this subsection 
may be a preliminary hearing, or may be consolidated with 
the final hearing under subsection (e)(2). The court shall 
order such stay continued in effect pending the conclusion 
VerDate Sep 11 2014 
21:57 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00105
Fmt 6652
Sfmt 6201
E:\BILLS\H5278.RFS
H5278
asabaliauskas on DSK3SPTVN1PROD with BILLS
106 
HR 5278 RFS
of the final hearing under subsection (e)(2) if there is a 
reasonable likelihood that the party opposing relief from 
such stay will prevail at the conclusion of such final hear-
ing. If the hearing under this subsection is a preliminary 
hearing, then such final hearing shall be concluded not 
later than thirty days after the conclusion of such prelimi-
nary hearing, unless the thirty-day period is extended with 
the consent of the parties in interest or for a specific time 
which the court finds is required by compelling cir-
cumstances. 
(g) RELIEF TO PREVENT IRREPARABLE DAMAGE.— 
Upon request of a party in interest, the court, with or 
without a hearing, shall grant such relief from the stay 
provided under subsection (b) as is necessary to prevent 
irreparable damage to the interest of an entity in property, 
if such interest will suffer such damage before there is 
an opportunity for notice and a hearing under subsection 
(e) or (f). 
(h) ACT
IN VIOLATION
OF STAY IS VOID.—Any 
order, judgment, or decree entered in violation of this sec-
tion and any act taken in violation of this section is void, 
and shall have no force or effect, and any person found 
to violate this section may be liable for damages, costs, 
and attorneys’ fees incurred in defending any action taken 
in violation of this section, and the Oversight Board or 
VerDate Sep 11 2014 
21:57 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00106
Fmt 6652
Sfmt 6201
E:\BILLS\H5278.RFS
H5278
asabaliauskas on DSK3SPTVN1PROD with BILLS
107 
HR 5278 RFS
the Government of Puerto Rico may seek an order from 
the court enforcing the provisions of this section. 
(i) GOVERNMENT OF PUERTO RICO.—For purposes 
of this section, the term ‘‘Government of Puerto Rico’’, 
in addition to the definition set forth in section 5(11) of 
this Act, shall include— 
(1) the individuals, including elected and ap-
pointed officials, directors, officers of and employees 
acting in their official capacity on behalf of the Gov-
ernment of Puerto Rico; and 
(2) the Oversight Board, including the directors 
and officers of and employees acting in their official 
capacity on behalf of the Oversight Board. 
(j) NO DEFAULT UNDER EXISTING CONTRACTS.— 
(1) Notwithstanding any contractual provision 
or applicable law to the contrary and so long as a 
stay under this section is in effect, the holder of a 
Liability Claim or any other claim (as such term is 
defined in section 101 of title 11, United States 
Code) may not exercise or continue to exercise any 
remedy under a contract or applicable law in respect 
to the Government of Puerto Rico or any of its prop-
erty— 
(A) that is conditioned upon the financial 
condition of, or the commencement of a restruc-
VerDate Sep 11 2014 
21:57 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00107
Fmt 6652
Sfmt 6201
E:\BILLS\H5278.RFS
H5278
asabaliauskas on DSK3SPTVN1PROD with BILLS
108 
HR 5278 RFS
turing, insolvency, bankruptcy, or other pro-
ceeding (or a similar or analogous process) by, 
the Government of Puerto Rico, including a de-
fault or an event of default thereunder; or 
(B) with respect to Liability Claims— 
(i) for the non-payment of principal or 
interest; or 
(ii) for the breach of any condition or 
covenant. 
(2) The term ‘‘remedy’’ as used in paragraph 
(1) shall be interpreted broadly, and shall include 
any right existing in law or contract, including any 
right to— 
(A) setoff; 
(B) apply or appropriate funds; 
(C) seek the appointment of a custodian 
(as such term is defined in section 101(11) of 
title 11, United States Code); 
(D) seek to raise rates; or 
(E) exercise control over property of the 
Government of Puerto Rico. 
(3) Notwithstanding any contractual provision 
or applicable law to the contrary and so long as a 
stay under this section is in effect, a contract to 
which the Government of Puerto Rico is a party may 
VerDate Sep 11 2014 
21:57 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00108
Fmt 6652
Sfmt 6201
E:\BILLS\H5278.RFS
H5278
asabaliauskas on DSK3SPTVN1PROD with BILLS
109 
HR 5278 RFS
not be terminated or modified, and any right or obli-
gation under such contract may not be terminated 
or modified, solely because of a provision in such 
contract is conditioned on— 
(A) the insolvency or financial condition of 
the Government of Puerto Rico at any time 
prior to the enactment of this Act; 
(B) the adoption of a resolution or estab-
lishment of an Oversight Board pursuant to 
section 101 of this Act; or 
(C) a default under a separate contract 
that is due to, triggered by, or a result of the 
occurrence of the events or matters in para-
graph (1)(B). 
(4) Notwithstanding any contractual provision 
to the contrary and so long as a stay under this sec-
tion is in effect, a counterparty to a contract with 
the Government of Puerto Rico for the provision of 
goods and services shall, unless the Government of 
Puerto Rico agrees to the contrary in writing, con-
tinue to perform all obligations under, and comply 
with the terms of, such contract, provided that the 
Government of Puerto Rico is not in default under 
such contract other than as a result of a condition 
specified in paragraph (3). 
VerDate Sep 11 2014 
21:57 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00109
Fmt 6652
Sfmt 6201
E:\BILLS\H5278.RFS
H5278
asabaliauskas on DSK3SPTVN1PROD with BILLS
110 
HR 5278 RFS
(k) EFFECT.—This section does not discharge an ob-
ligation of the Government of Puerto Rico or release, in-
validate, or impair any security interest or lien securing 
such obligation. This section does not impair or affect the 
implementation of any restructuring support agreement 
executed by the Government of Puerto Rico to be imple-
mented pursuant to Puerto Rico law specifically enacted 
for that purpose prior to the enactment of this Act or the 
obligation of the Government of Puerto Rico to proceed 
in good faith as set forth in any such agreement. 
(l) PAYMENTS ON LIABILITIES.—Nothing in this sec-
tion shall be construed to prohibit the Government of 
Puerto Rico from making any payment on any Liability 
when such payment becomes due during the term of the 
stay, and to the extent the Oversight Board, in its sole 
discretion, determines it is feasible, the Government of 
Puerto Rico shall make interest payments on outstanding 
indebtedness when such payments become due during the 
length of the stay. 
(m) FINDINGS.—Congress finds the following: 
(1) A combination of severe economic decline, 
and, at times, accumulated operating deficits, lack of 
financial transparency, management inefficiencies, 
and excessive borrowing has created a fiscal emer-
gency in Puerto Rico. 
VerDate Sep 11 2014 
21:57 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00110
Fmt 6652
Sfmt 6201
E:\BILLS\H5278.RFS
H5278
asabaliauskas on DSK3SPTVN1PROD with BILLS