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vote not less than a majority of the aggregate Outstanding 
Principal amount of all the Outstanding Bonds in each 
Pool have voted to approve the Qualifying Modification. 
The holder of the right to vote the Outstanding Bonds 
that are Insured Bonds shall be the monoline insurer in-
suring such Insured Bond to the extent such insurer is 
granted the right to vote Insured Bonds for purposes of 
directing remedies or consenting to proposed amendments 
or modifications as provided in the applicable documents 
pursuant to which such Insured Bond was issued and in-
sured. 
(k) CALCULATION AGENT.—For the purpose of cal-
culating the principal amount of the Bonds of any series 
eligible to participate in such a vote or consent solicitation 
and tabulating such votes or consents, the Territory Gov-
ernment Issuer may appoint a Calculation Agent for each 
Pool reasonably acceptable to the Administrative Super-
visor. 
(l) INFORMATION AGENT.—For the purpose of ad-
ministering a vote of holders of Bonds, including the hold-
ers of the right to vote such Bonds, or seeking the consent 
of holder of Bonds, including the holders of the right to 
vote such Bonds, to a written action under this section, 
the Territory Government Issuer may appoint an Informa-
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tion Agent for each Pool reasonably acceptable to the Ad-
ministrative Supervisor. 
(m) BINDING EFFECT.— 
(1) A Qualifying Modification will be conclusive 
and binding on all holders of Bonds whether or not 
they have given such consent, and on all future hold-
ers of those Bonds whether or not notation of such 
Qualifying Modification is made upon the Bonds, 
if— 
(A) the holders of the right to vote the 
Outstanding Bonds in every Pool of the Issuer 
pursuant to subsection (j) have consented to or 
approved the Qualifying Modification; 
(B) the Administrative Supervisor certifies 
that— 
(i) the voting requirements of this sec-
tion have been satisfied; 
(ii) the Qualifying Modification com-
plies with the requirements set forth in 
section 104(i)(1); and 
(iii) except for such conditions that 
have been identified in the Qualifying 
Modification as being non-waivable, any 
conditions on the effectiveness of the 
Qualifying Modification have been satisfied 
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or, in the Administrative Supervisor’s sole 
discretion, satisfaction of such conditions 
has been waived; 
(C) with respect to a Bond Claim that is 
secured by a lien on property and with respect 
to which the holder of such Bond Claim has re-
jected or not consented to the Qualifying Modi-
fication, the holder of such Bond— 
(i) retains the lien securing such Bond 
Claims; or 
(ii) receives on account of such Bond 
Claim, through deferred cash payments, 
substitute collateral, or otherwise, at least 
the equivalent value of the lesser of the 
amount of the Bond Claim or of the collat-
eral securing such Bond Claim; and 
(D) the district court for the territory or, 
for any territory that does not have a district 
court, the United States District Court for the 
District of Hawaii, has, after reviewing an ap-
plication submitted to it by the applicable 
Issuer for an order approving the Qualifying 
Modification, entered an order that the require-
ments of this section have been satisfied. 
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(2) Upon the entry of an order under para-
graph (1)(D), the conclusive and binding Qualifying 
Modification shall be valid and binding on any per-
son or entity asserting claims or other rights, includ-
ing a beneficial interest (directly or indirectly, as 
principal, agent, counterpart, subrogee, insurer or 
otherwise) in respect of Bonds subject to the Quali-
fying Modification, any trustee, any collateral agent, 
any indenture trustee, any fiscal agent, and any 
bank that receives or holds funds related to such 
Bonds. All property of an Issuer for which an order 
has been entered under paragraph (1)(D) shall vest 
in the Issuer free and clear of all claims in respect 
of any Bonds of any other Issuer. Such Qualifying 
Modification will be full, final, complete, binding, 
and conclusive as to the territorial government 
Issuer, other territorial instrumentalities of the terri-
torial government Issuer, and any creditors of such 
entities, and should not be subject to any collateral 
attack or other challenge by any such entities in any 
court or other forum. Other than as provided herein, 
the foregoing shall not prejudice the rights and 
claims of any party that insured the Bonds, includ-
ing the right to assert claims under the Bonds as 
modified following any payment under the insurance 
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policy, and no claim or right that may be asserted 
by any party in a capacity other than holder of a 
Bond affected by the Qualifying Modification shall 
be satisfied, released, discharged, or enjoined by this 
provision. 
(n) JUDICIAL REVIEW.— 
(1) The district court for the territory or, for 
any territory that does not have a district court, the 
United States District Court for the District of Ha-
waii shall have original and exclusive jurisdiction 
over civil actions arising under this section. 
(2) Notwithstanding section 106(e), there shall 
be a cause of action to challenge unlawful applica-
tion of this section. 
(3) The district court shall nullify a Modifica-
tion and any effects on the rights of the holders of 
Bonds resulting from such Modification if and only 
if the district court determines that such Modifica-
tion is manifestly inconsistent with this section. 
SEC. 602. APPLICABLE LAW. 
In any judicial proceeding regarding this title, Fed-
eral, State, or territorial laws of the United States, as ap-
plicable, shall govern and be applied without regard or ref-
erence to any law of any international or foreign jurisdic-
tion. 
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TITLE VII—SENSE OF CONGRESS 
REGARDING 
PERMANENT, 
PRO-GROWTH 
FISCAL 
RE-
FORMS 
SEC. 701. SENSE OF CONGRESS REGARDING PERMANENT, 
PRO-GROWTH FISCAL REFORMS. 
It is the sense of the Congress that any durable solu-
tion for Puerto Rico’s fiscal and economic crisis should 
include permanent, pro-growth fiscal reforms that feature, 
among other elements, a free flow of capital between pos-
sessions of the United States and the rest of the United 
States. 
Passed the House of Representatives June 9, 2016. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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