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FINANCIAL OVERSIGHT AND MANAGEMENT BD. FOR 
PUERTO RICO v. AURELIUS INVESTMENT, LLC 
Opinion of the Court 

Puerto  Rico;  the  Board  must  seek  enforcement  of  its  sub-
poenas by filing in the courts of Puerto Rico.  See §104, id., 
at 558–561.  These powers are primarily local in nature.

The Board also oversees the development of Puerto Rico’s
fiscal and budgetary plans.  It receives and evaluates pro-
posals  from  the  elected  Governor  and  legislature.    It  can 
create a budget “deemed” to be that of Puerto Rico.  It can 
intervene when budgetary constraints are violated.  And it 
has  authority  over  the  issuance  of  new  debt.    §§201–207, 
id., at 563–575.  These powers, too, are quintessentially lo-
cal.  Each concerns the finances of the Commonwealth, not 
of the United States.  The Board members in this respect 
discharge duties ordinarily held by local officials. 

Last, the Board has the power to initiate bankruptcy pro-
ceedings.  But in doing so, it acts not on behalf of the United
States, but on behalf of, and in the interests of, Puerto Rico. 
The proceedings take place in federal court; but the same is 
true of all persons or entities who seek bankruptcy protec-
tion.  The Board here acts as a local government that might 
take  precisely  the  same  actions.
  See,  e.g.,  11  U. S. C. 
§§109(c),  921  (related  to  bankruptcies  of  local  govern-
ments).

Some Board actions, of course, may have nationwide con-
sequences.  But the same can be said of many actions taken 
by many Governors or other local officials.  Taking actions 
with  nationwide  consequences  does  not  automatically 
transform  a  local  official  into  an  “Officer  of  the  United 
States.”  The challengers rely most heavily on the nation-
wide effects of the bankruptcy proceedings.  E.g., Brief for 
Aurelius  et al.  31;  Brief  for  Petitioner  Unión  de  Trabaja-
dores  de  la  Industria  Eléctrica  y  Riego,  Inc.  (UTIER)  49. 
But the same might be said of any major municipal, or even 
corporate,  bankruptcy.  E.g.,  In  re  Detroit,  504  B. R.  97 
(Bkrtcy.  Ct.  ED  Mich.  2013)  (restructuring  $18  billion  in 
municipal debt).