I 
114TH CONGRESS 
1ST SESSION H. R. 4290 
To provide for certain assistance and reforms relating to the territories, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 18, 2015 
Ms. PELOSI introduced the following bill; which was referred to the Committee 
on the Judiciary 
A BILL 
To provide for certain assistance and reforms relating to 
the territories, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Puerto Rico Emergency Financial Stability Act of 
2015’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Findings and purposes. 
Sec. 3. Effective date. 
Sec. 4. Severability. 
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Sec. 5. Definitions. 
Sec. 6. Automatic stay. 
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds the following— 
(1) The Commonwealth Government is con-
fronted with a dire fiscal emergency and liquidity 
crisis that imminently threatens the welfare of the 
people of the Commonwealth, affecting the provision 
of essential public services including public safety, 
health care, and education that are needed both to 
sustain the welfare of the people and the economic 
ability of the Commonwealth to address any future 
resolution of debts and legal obligations. 
(2) A temporary stay on litigation with respect 
to debt holders for the Commonwealth is essential to 
provide breathing space to the Commonwealth, credi-
tors, and the Congress to determine an orderly proc-
ess for the Commonwealth to address any future res-
olution of legal obligations and to provide the Com-
monwealth a path to sustainable growth; and there-
by, protect the lives of more than 3.5 million Amer-
ican citizens living in the Commonwealth. 
(3) The Commonwealth is in a state of fiscal 
emergency brought on by, among other things, a 
combination of accumulated operating deficits, cash 
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shortages, management inefficiencies, and excessive 
borrowing. 
(4) The Commonwealth Government’s debt is 
unusually complex, with eighteen different but inter- 
related issuers. 
(A) There is an even larger number of 
creditor groups, each of which may have diver-
gent interests. 
(B) The debt’s unusual complexity will 
substantially complicate any potential consen-
sual restructuring in the absence of Federal leg-
islation to facilitate the negotiations. 
(5) This legislation, which includes a stay on 
litigation by debt holders, can protect essential gov-
ernment services and help the Commonwealth ad-
dress its liabilities in an orderly fashion, benefitting 
all stakeholders. 
(A) A temporary stay on litigation is es-
sential to facilitate an orderly process for stabi-
lizing, evaluating, and comprehensively resolv-
ing the Commonwealth’s fiscal crisis. 
(B) Avoiding a disorderly race to the 
courthouse will benefit creditors as well as other 
stakeholders. 
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(C) Furthermore, the stay is only tem-
porary. 
(b) PURPOSES.—The purposes of this Act are to— 
(1) provide a limited period of time to permit 
Congress to enact comprehensive relief for the Com-
monwealth, providing it the necessary tools to ad-
dress its economic and fiscal crisis; and 
(2) provide the Commonwealth Government 
with a tool it needs to address an immediate and im-
minent crisis that is unprecedented in the history of 
the United States. 
SEC. 3. EFFECTIVE DATE. 
This Act shall take effect on the date of the enact-
ment of this Act. 
SEC. 4. SEVERABILITY. 
If any provision of this Act or the application thereof 
to any person or circumstance is held invalid, the remain-
der of this Act, or the application of that provision to per-
sons or circumstances other than those as to which it is 
held invalid, is not affected thereby. 
SEC. 5. DEFINITIONS. 
In this Act: 
(1) BOND.—The term ‘‘Bond’’ means a bond, 
loan, line of credit, note, or other borrowing title, in 
physical or dematerialized form, of which— 
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(A) the issuer, borrower, or guarantor is 
the Commonwealth Government; and 
(B) the date of issuance or incurrence of 
debt precedes the date of enactment of this Act. 
(2) COMMONWEALTH.—The term ‘‘Common-
wealth’’ means the Commonwealth of Puerto Rico. 
(3) COMMONWEALTH GOVERNMENT.—The term 
‘‘Commonwealth Government’’ means the govern-
ment of the Commonwealth of Puerto Rico, includ-
ing all its political subdivisions, public agencies, in-
strumentalities, and public corporations. 
(4) COURT.—The term ‘‘court’’ means the 
United States District Court for the District of 
Puerto Rico. 
(5) OTHER
TERMS.—Any other term that is 
used in section 6 and is defined in title 11, United 
States Code, has the same meaning in section 6. 
SEC. 6. AUTOMATIC STAY. 
(a) Except as otherwise provided in this section, the 
enactment of this Act operates with respect to any claim, 
debt, or cause of action related to a Bond as a stay, appli-
cable 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-
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cial, administrative, or other action or proceeding 
against the Commonwealth Government or to re-
cover a claim against the Commonwealth Govern-
ment; 
(2) the enforcement, against the Commonwealth 
Government or against property of the Common-
wealth Government, of a judgment; 
(3) any act to obtain possession of property of 
the Commonwealth Government or of property from 
the Commonwealth Government or to exercise con-
trol over property of the Commonwealth Govern-
ment; 
(4) any act to create, perfect, or enforce any 
lien against property of the Commonwealth Govern-
ment; 
(5) any act to create, perfect, or enforce against 
property of the Commonwealth Government any lien 
to the extent that such lien secures a claim; 
(6) any act to collect, assess, or recover a claim 
against the Commonwealth Government; and 
(7) the setoff of any debt owing to the Com-
monwealth Government against any claim against 
the Commonwealth Government. 
(b) The enactment of this Act does not operate as 
a stay under subsection (a) of this section, of the continu-
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ation of, including the issuance or employment of process, 
a judicial, administrative, or other action or proceeding 
against the Commonwealth Government that was com-
menced on or before the date of enactment of this Act. 
(c) Except as provided in subsection (d), (e), or (f), 
a stay of an act under subsection (a) shall cease to have 
effect as of April 1, 2016. 
(d) On motion of a party in interest and after notice 
and a hearing, the court may grant relief from a stay 
under subsection (a)— 
(1) for cause, including the lack of adequate 
protection of a security interest in property of such 
party in interest; or 
(2) with respect to a stay of an act against 
property under subsection (a), if— 
(A) the debtor does not have an equity in 
such property; and 
(B) such property is not necessary for the 
Commonwealth to provide essential services; 
(e) Thirty days after a request under subsection (d) 
of this section for relief from the stay of any act against 
property of the Commonwealth Government under sub-
section (a) of this section, such stay is terminated with 
respect to the party in interest making such request, un-
less the court, after notice and a hearing, orders such stay 
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continued in effect pending the conclusion of, or as a re-
sult of, a final hearing and determination under subsection 
(d) of this section. A hearing under this subsection may 
be a preliminary hearing, or may be consolidated with the 
final hearing under subsection (d) of this section. The 
court shall order such stay continued in effect pending the 
conclusion of the final hearing under subsection (d) of this 
section if there is a reasonable likelihood that the party 
opposing relief from such stay will prevail at the conclu-
sion of such final hearing. If the hearing under this sub-
section is a preliminary hearing, then such final hearing 
shall be concluded not later than 30 days after the conclu-
sion of such preliminary hearing, unless the 30-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 circumstances. 
(f) Upon request of a party in interest, the court, 
with or without a hearing, shall grant such relief from the 
stay provided under subsection (a) of this section as is 
necessary to prevent irreparable damage to the secured in-
terest of an entity in property, if such interest will suffer 
such damage before there is an opportunity for notice and 
a hearing under subsection (d) or (e) of this section. 
(g) No order, judgment, or decree entered in violation 
of this section will have any force or effect. 
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