2023 Laws of Puerto Rico › TITLE THREE - Executive (§§ 1 — 9311) › Chapter 120 - Puerto Rico Emergency Moratorium and Rehabilitation Act (§§ 9281 — 9311) › Subchapter I - General Provisions (§§ 9281 — 9288) › § 9283 - Definitions

The following words and terms, when used in Subchapters I, II and III of this chapter shall have the meaning stated below:
(a) Act.— Shall mean this Puerto Rico Emergency Moratorium and Rehabilitation Act.
(b) AFICA.— Shall mean the Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority.
(c) AMA.— Shall mean the Metropolitan Bus Authority.
(d) Authority.— Shall mean the Fiscal Agency and Financial Advisory Authority.
(e) Available resources.— Shall have the meaning given to such term for purposes of Section 8 of Article VI of the Constitution of the Commonwealth.
(f) Bank.— Shall mean either or both of:
(1) The Government Development Bank for Puerto Rico, and for the purpose of clauses (1) and (2) of subsection (b) of § 9291 of this title, it shall also include its employees, officers, directors, agents, and professional advisors; and
(2) the Economic Development Bank for Puerto Rico, and for the purpose of clauses (1) and (2) of subsection (b) of § 9291 of this title, it shall also include its employees, officers, directors, agents, and professional advisors.
(g) Board.— Shall mean the Board of Directors of each Bank and the Authority.
(h) CCDA.— Shall mean the Puerto Rico Convention Center District Authority.
(i) Children’s Trust.— Shall mean the not-for-profit entity created by the Commonwealth pursuant to the Children’s Trust Law, in §§ 3121 et seq. of Title 24.
(j) COFINA.— Shall mean the Puerto Rico Sales Tax Financing Corporation.
(k) Commonwealth.— Means the Commonwealth of Puerto Rico.
(l) Covered obligation.— Shall mean (1) any interest obligation, principal obligation or enumerated obligation of a government entity that is due or becomes due during the emergency period in respect of such government entity, (2) any obligation arising or resulting from, or related to, the guarantee by such government entity of any obligation of another entity that is due or becomes due during the emergency period, and (3) if provided for in an order issued pursuant under § 9291(d) of this title, the transfer of, or obligation to transfer, funds required to be made in advance of, or on the due date of, any obligation identified in the preceding clauses (1) and (2), if, and in each case, such government entity is declared to be in a state of emergency by an executive order of the Governor as contemplated in § 9291(a) of this title, as may be amended from time to time, but shall not include:
(1) Any obligation of an insurer to pay on any policy related to any interest obligation, principal obligation or enumerated obligation that would have come due as provided for in any law or document as if this chapter had not been enacted;
(2) any obligation (or portion thereof), unless otherwise provided in such executive order, the payment of which can be made solely from money that has been deposited with a trustee or other custodian prior to the commencement of the emergency period for such obligor, which money is pledged for the sole purpose of paying such obligation (or portion thereof) when it becomes due;
(3) any obligation of AFICA, with the exception of the Educational Facilities Revenue Bonds, 2000 Series A (Educational Plaza Project) issued pursuant to a trust agreement, dated as of December 1, 2000, as amended, by and between The Bank of New York Mellon, as trustee, and AFICA;
(4) any obligation of a bridge bank created under § 559c of Title 7, and
(5) any debt issued by a government entity after the enactment of this chapter; Provided, That the Governor certifies at the time of issuance that such debt will be irrevocably excluded from the definition of “covered obligation” under this section for the purposes of this chapter.
(m) Covered period.— Means the period beginning immediately upon the effectiveness of this act through and including January 31, 2017, which period may be extended by executive order of the Governor for not more than two months.
(n) Debt instrument.— -Shall include any document or instrument for, used in connection with, or related to:
(1) Any obligation to pay the principal of, premium of, if any, interest on, penalties, reimbursement or indemnification amounts, fees, expenses, or other amounts relating to any indebtedness, and any other liability, contingent or otherwise,
(A) For borrowed money,
(B) evidenced by bonds, debentures, indentures, notes, resolutions, credit agreements, trade finance agreements, trade finance facility agreements, securities, or similar instruments, or
(C) for any letter of credit or performance bond;
(2) any contingent obligation in respect of or related to any liability of the kind described in the preceding clause (1), including, but not limited to, any guaranty of such liability and any reimbursement agreement in respect of an insurance policy covering such liability;
(3) any obligation in respect of bankers” acceptances;
(4) any obligation in respect of a swap agreement, derivative contract or related agreement, hedge agreement, securities contract, forward contract, repurchase agreement, option, warrant, commodities contract, or similar document;
(5) any and all deferrals, renewals, extensions, and refunding of, or amendments, modifications, or supplements to, any liability of the kind described in any of the preceding clauses (1) through (4);
(6) any liability arising out of any judgment relating to any liability of the kind described in any of the preceding clauses (1) through (4); or
(7) any liability arising from an obligation of insurance relating to any liability of a kind described in this section.
Provided, That debt instrument shall not include any contract for the provision of goods or services, nor shall it include any clearing services agreement or other agreement pursuant to which a financial institution provides services to the Bank or any other government entity.
(o) Depositor.— Shall mean any person, or authorized representative thereof, who is the primary or beneficial owner of any account containing deposits held by the Bank.
(p) Deposit.— Shall mean funds held by the Bank that are classified by such Bank as deposits.
(q) Emergency period.— In respect of any government entity, shall mean the period beginning on the date designated by the Governor in an executive order, as may be amended from time to time, issued pursuant to § 9291(a) of this title, with respect to such government entity and ending on the date designated by the Governor in an executive order, which shall be no later than the last day of the covered period.
(r) Enumerated obligation.— Shall mean any obligation specifically listed or identified by category in an executive order, as may be amended from time to time, issued pursuant to § 9291(a) of this title, which obligation (whether contingent or non-contingent, due or not due) may arise from any contract or agreement, including any financial instrument, debt instrument or unexpired lease, any obligation to pay the principal of, premium of, if any, penalties, reimbursement or indemnification amounts, fees, expenses, or other amounts relating to any indebtedness, any other liability, contingent or otherwise, and any other agreement on instrument provided for amounts or benefits payable by a government entity to any person, provided that an enumerated obligation shall not include any obligation that arises under a contract for the provision of goods or services to a government entity, nor shall it include any obligation arising under a clearing services agreement or other agreement pursuant to which a financial institution provides services to the Bank or any other government entity.
(s) ERS.— Shall mean the Employees Retirement System of the Government of the Commonwealth of Puerto Rico and its Instrumentalities.
(t) Government entity.— Shall mean any of the following:
(1) AFICA, AMA, each Bank and any subsidiary thereof, CCDA, COFINA, the Commonwealth, ERS, HFA, HTA, PBA, PFC, PRASA, PREPA, PRIDCO, PRIFA, the Puerto Rico Ports Authority, and UPR; and
(2) the employees, officers, directors, agents, or professionals of any government entity listed in the preceding clause (1) only when the term is used in clauses (1) and (2) of subsection (b) of § 9291 of this title.
Notwithstanding any provision of this chapter, any government entity party to an agreement with creditors shall only be considered a “government entity” prior to the consummation of the financial restructuring contemplated by an agreement with creditors (for example, without it being construed as a limitation, the initial issuance of any securitization bonds in exchange for outstanding bonds issued by such government entity in accordance with an agreement with creditors), and, in such case, only in the event that (1) the agreement with creditors is terminated or (2) any holder or beneficial owner of a debt instrument issued by such government entity has commenced an action to enforce any right or remedy against said government entity under such debt instrument. For purposes of this definition, “agreement with creditors” shall mean an agreement executed among a government entity and certain creditors of such government entity, including a consensual restructuring support agreement relating to the restructuring of its debt, as it may be amended, supplemented or reinstated from time to time, regardless of whether it is securitized or not.
(u) Governor.— Shall mean the Governor of the Commonwealth.
(v) HFA.— Shall mean the Puerto Rico Housing Finance Authority.
(w) HTA.— Shall mean the Puerto Rico Highways and Transportation Authority.
(x) Interest obligation.— Shall mean any obligation arising under or related to the payment of interest on any debt instrument but shall not include any interest obligation determined by the Governor, in his sole discretion, and identified in an executive order, as may be amended from time to time, issued pursuant to § 9291(a) of this title, as not being an interest obligation for the purposes of this chapter.
(y) Minimum public debt payment.— Shall mean, with respect to a covered obligation that is public debt and is also a principal obligation or an interest obligation:
(1) An amount determined by the Governor that is consistent with the Constitution of the Commonwealth, after consultation with the Secretary of the Treasury, which amount may be calculated as the difference between the amount of available resources projected for the applicable emergency period and the projected expenses for essential public services during such period, applied pro rata to all holders of covered obligations that are interest obligations that constitute public debt that are due and payable (or projected to become due and payable) during the applicable emergency period (excluding any deferred or accrued amounts that will be paid on the last day of such emergency period as a result of this chapter), and, if all interest obligations that constitute public debt are satisfied in full, any remaining available resources shall be applied pro rata to all holders of covered obligations that are principal obligations that constitute public debt and that are due and payable (or projected to become due and payable) during the applicable emergency period (excluding any deferred or accrued amounts that will be paid on the last day of such emergency period as a result of this chapter); Provided, That the minimum public debt payment in this clause need not be paid all at once if such amount exceeds the available resources of the Commonwealth that are available to make such payment, including those subject to an executive order or applicable law that diverts such available resources towards the payment of public debt; and
(2) the full amount of such obligation if such obligation is due prior to June 30, 2016.
(z) MFA.— Shall mean the Puerto Rico Municipal Finance Agency.
(aa) PBA.— Shall mean the Puerto Rico Public Buildings Authority.
(bb) Person.— Shall mean any natural person or legal entity, including, but not limited to, any government agency, department, instrumentality, public corporation, municipality, board, office, committee or dependency or any public or private individual, firm, partnership, stock company, limited liability company, association or corporation organized and existing under the laws of the Commonwealth, the United States of America or any of its states, or of any foreign country, or any combination of the above.
(cc) PFC.— Shall mean the Puerto Rico Public Finance Corporation.
(dd) PRASA.— Shall mean the Puerto Rico Aqueduct and Sewer Authority.
(ee) PREPA.— Shall mean the Puerto Rico Electric Power Authority.
(ff) PRIDCO.— Shall mean Puerto Rico Industrial Development Company.
(gg) PRIFA.— Shall mean the Puerto Rico Infrastructure Financing Authority.
(hh) Principal obligation.— Shall mean any obligation arising under or related to the payment of principal of any debt instrument but shall not include any principal obligation determined by the Governor, in his sole discretion, and identified in an executive order, as may be amended from time to time, issued pursuant to § 9291(a) of this title, as not being a principal obligation for the purposes of this chapter.
(ii) Public debt.— Shall mean any obligation or evidence of indebtedness of the Commonwealth, or a government entity, that is issued or guaranteed by the Commonwealth pursuant to the authority provided in Section 2 of Article VI of the Constitution of the Commonwealth, for the payment of which the good faith, credit and taxing power of the Commonwealth shall have been pledged.
(jj) UPR.— Shall mean the University of Puerto Rico.
History —Apr. 6, 2016, No. 21, § 103; July 12, 2016, No. 68, sec. 1.11.