148 
(C) with respect to a Bond Claim that is se-
cured by a lien on property and with respect to 
which the holder of such Bond Claim has rejected 
or not consented to the Qualifying Modification, 
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 Modifica-
tion, entered an order that the requirements of 
this section have been satisfied. 
(2) Upon the entry of an order under paragraph 
(1)(D), the conclusive and binding Qualifying Modi-
fication shall be valid and binding on any person or 
entity asserting claims or other rights, including a 
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149 
beneficial interest (directly or indirectly, as principal, 
agent, counterpart, subrogee, insurer or otherwise) in 
respect of Bonds subject to the Qualifying Modifica-
tion, 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 instru-
mentalities of the territorial government Issuer, and 
any creditors of such entities, and should not be sub-
ject 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, including the right to assert claims under the 
Bonds as modified following any payment under the 
insurance 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. 
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(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 application 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 Modification 
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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151 
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 solution 
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 possessions of 
the United States and the rest of the United States. 
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Union Calendar No. 468 
114TH CONGRESS 
2D SESSION 
H. R. 5278 
[Report No. 114–602, Part I] 
A BILL 
To establish an Oversight Board to assist the Gov-
ernment of Puerto Rico, including instrumental-
ities, in managing its public finances, and for 
other purposes. 
JUNE 3, 2016 
Reported from the Committee on Natural Resources with 
an amendment 
JUNE 3, 2016 
The Committees on the Judiciary, Education and the 
Workforce, and Small Business discharged; committed 
to the Committee of the Whole House on the State of 
the Union and ordered to be printed 
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