2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter I - General Provisions (§§ 111 — 111jj) › § 111a - Definitions

The following words and terms, when used and referred to in this chapter, shall have the meaning stated below:
(1) Act.— Means this Puerto Rico Public Corporation Debt Enforcement and Recovery Act.
(2) Administrative expense.— Means an expense of a petitioner, incurred or accrued from and after the date its petition is filed up through the date a plan is confirmed in its case, in respect of new value provided or new obligations incurred, including any expenses necessary to fulfill the petitioner’s public functions.
(3) Affected creditor.— Means a creditor holding affected debt.
(4) Affected debt.— Means the debt scheduled pursuant to subsection (a)(2) of § 113a of this title.
(5) Affected debt instrument.— Means each debt instrument related to an obligation identified in a suspension period notice; Provided, That no debt instrument evidencing an obligation incurred pursuant to § 112e or § 113u of this title shall qualify as an affected debt instrument.
(6) Affiliate.— Means, with respect to an entity, another entity that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the entity first specified.
(7) Approval order.— Means an order of the court under §§ 112-112f of this title finding that:
(a) The amendments, modifications, waivers, or exchanges, as the case may be, proposed in a consensual debt relief transaction are consistent with the requirements of §§ 112-112f of this title, including the objectives stated in § 112(a) of this title and the requirements of clauses (1)-(3) of subsection (d) of § 112a of this title; and
(b) the voting procedure followed in connection with the consensual debt relief transaction was carried out in a manner consistent with the requirements of §§ 112-112f of this title.
(8) Case.— Means a case commenced under §§ 113-113nn of this title.
(9) Cash collateral.— Means a petitioner’s cash and cash equivalents to the extent encumbered by valid liens or security interests.
(10) Claim.— Means:
(a) A right to present or future payment, whether matured, unmatured, contingent, noncontingent, disputed, undisputed, liquidated, or unliquidated; or
(b) a right to an equitable remedy for which money damages are a remedy under applicable law.
(11) Commonwealth.— Means the Commonwealth of Puerto Rico.
(12) Commonwealth Constitution.— Means the Constitution of the Commonwealth of Puerto Rico, as amended.
(13) Commonwealth entity.— Means the Commonwealth and a department, agency, district, municipality, or instrumentality (including a public corporation) of the Commonwealth, including any successor entity or additional entity created or to be created to perform any function of such Commonwealth entity.
(14) Commonwealth law.— Means any law of the Commonwealth, or rule or regulation of any Commonwealth entity.
(15) Consensual debt relief transaction.— Has the meaning given to that term in § 112(b) of this title.
(16) Contract.— Means any contract or agreement, including any debt instrument or unexpired lease, any collective bargaining agreement, any retirement or post-employment benefit plan, and any other agreement or instrument providing for amounts or benefits due by the petitioner to any retiree or employee.
(17) Control.— Including the terms “controlling,” “controlled by”, and “under common control with”, means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity, whether through the ownership of voting securities, by contract, or otherwise.
(18) Court.— Means the Public Sector Debt Enforcement and Recovery Act Courtroom of the Court of First Instance, San Juan Part, described in § 111h of this title.
(19) Court of Appeals.— Means the Court of Appeals of the Commonwealth of Puerto Rico.
(20) Court of First Instance.— Means the Court of First Instance of the Commonwealth of Puerto Rico.
(21) Creditor.— Means a holder of a claim against, either or both:
(a) A public sector obligor seeking a consensual debt relief transaction under §§ 112-112f of this title; and
(b) a petitioner under §§ 113-113nn of this title.
(22) Creditors’ committee.— Means a committee appointed by the court pursuant to § 113q of this title.
(23) Critical vendor debt.— Means special trade debt owed to an entity that agrees to deliver, during the pendency of a case under §§ 113-113nn of this title and through the effective date, ongoing provision of goods and services to the petitioner:
(a) On the same or better terms for the petitioner than those in place during the one hundred and eighty (180) days preceding the filing of a petition under §§ 113-113nn of this title; and
(b) that the petitioner has designated as critical to its ability to perform public functions.
(24) Custodian.— Means:
(a) A receiver or trustee of any of the property of an entity;
(b) an assignee under a general assignment for the benefit of an entity’s creditors; or
(c) a trustee, a receiver, a conservator, or an agent under any applicable law, common law right, or under any contract, that is appointed or authorized to take charge of property of an entity for the purpose of enforcing a lien against such property, or for the purpose of general administration of such property for the benefit of some or all of the entity’s creditors.
(25) Debt.— Means liability on a claim.
(26) Debt instrument.— Includes any document or statement for, used in connection with, or related to:
(a) 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,
(i) For borrowed money,
(ii) evidenced by bonds, debentures, indentures, notes, resolutions, credit agreements, trade finance agreements, trade finance facility agreements, securities, or similar instruments, or
(iii) for any letter of credit or performance bond;
(b) any liability of, or related to, the kind described in the preceding clause (a), which has been guaranteed or insured;
(c) any obligation in respect of bankers’ acceptances;
(d) 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;
(e) 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 (a) through (d);
(f) any liability arising out of any judgment relating to any liability of the kind described in any of the preceding clauses (a) through (e); or
(g) any liability arising from an obligation of insurance relating to any liability of a kind described in this section.
(27) Effective date.— Of a plan has the meaning given to that term in subsection (l) of § 113n of this title.
(28) Eligible obligor.— Means a public sector obligor satisfying the eligibility criteria in subsection (a) of § 111l of this title, rendering it eligible to seek relief under §§ 112-112f of this title.
(29) Emergency manager.— Means a natural person appointed as emergency manager pursuant to § 111hh of this title.
(30) Employee claims against a successor employer.— Means any liability or obligation relating to the petitioner’s employees’ rights pursuant to any contract or applicable law not expressly assumed in a transfer pursuant to § 113f of this title.
(31) Entity.— Includes an individual, a person, an estate, a trust, a Commonwealth entity, a governmental unit that is not a Commonwealth entity, a corporation, a partnership, and a limited liability company.
(32) Enumerated entity.— Means the eligible obligor and the petitioner, as applicable, and each of their successors or assigns to all or part of their business; the Commonwealth; GDB; any governing body of any of the foregoing; any emergency manager; any official of an employee benefit plan to which any of the foregoing in the past contributed or now contributes and any trustee or other official of any pension fund or retirement or post-employment benefit plan for the benefit of any past or present employee of any of the foregoing; the oversight commission appointed pursuant to § 112b of this title; any member of such oversight commission; any creditors’ committee; any member of a creditors’ committee or its representative on the creditors’ committee; any elected official; any entity appointed by an elected official or any other public official; any professional retained by any of the foregoing; any past or present advisor, agent, consultant, controlling person (if any), director, employee, manager, member, officer, partner, or stockholder of any of the foregoing; and any successor, assign, and personal representative of any of the foregoing.
(33) Essential supplier contract.— Means a contract, or type of contract, for the provision of goods or services to a public sector obligor seeking relief under this chapter, which contract or type of contract is necessary for such public sector obligor to continue performing public functions, and as identified:
(a) With respect to an eligible obligor, on a schedule published on the website on the date the suspension period notice is published; and
(b) with respect to a petitioner, on the schedule specified in subsection (a)(2) of § 113 of this title.
(34) Financially self-sufficient.— Means, in respect of any public sector obligor, able to meet its projected operating expenses, capital expenditure requirements, working capital requirements, and financing costs out of its projected revenues within the period of time specified in the recovery program without the need for subsequent relief under this chapter or financial support from any Commonwealth entity.
(35) GDB.— Means the Government Development Bank for Puerto Rico, including any successor entity or additional entity created or to be created to perform any function of the Government Development Bank for Puerto Rico.
(36) General committee.— Means the committee formed pursuant to subsection (a) of § 113q of this title.
(37) Governing body.— Means:
(a) The board of directors of a public corporation; and
(b) any deliberative body by means of which an instrumentality exercises its authority, as provided in the particular instrumentality’s enabling act.
(38) Governor.— Means the person serving as the Governor of the Commonwealth pursuant to Article IV of the Commonwealth Constitution.
(39) Insolvent.— Means:
(a) Currently unable to pay valid debts as they mature while continuing to perform public functions; or
(b) will be unable or at serious risk of being unable, without further legislative acts or without financial assistance from the Commonwealth or GDB, to pay valid debts as they mature while continuing to perform public functions
(40) Instrumentality.— Means an entity created by Commonwealth law as an entity authorized to perform public functions for the Commonwealth.
(41) Noticing agent.— Means the agent that an eligible obligor, a petitioner, or GDB (acting on behalf of the eligible obligor or petitioner) may retain at the expense of such eligible obligor or petitioner pursuant to § 111t of this title.
(42) Oversight commission.— Means a body composed of three (3) independent experts appointed by the Governor under §§ 112-112f of this title, not more than one (1) of whom may be a resident of the Commonwealth at the time of appointment.
(43) Party in interest.— Includes a public sector obligor that seeks relief under §§ 112-112f of this title or that files a petition under §§ 113-113nn of this title, the Governor, GDB, a creditor of such public sector obligor, a creditors’ committee, an indenture trustee (or entity performing comparable functions) acting in the interest of one or more of such public sector obligor’s creditors, and a party to a contract scheduled pursuant to subsection (a)(2) of § 113a of this title.
(44) Performing public functions or other similar phrase including fulfilling public functions and serving public functions.— Means serving an important government purpose-including providing goods or services important or necessary for the protection of public health, safety, or welfare (which include the promotion of the economic activity of the Commonwealth)-whether such public functions are performed directly, or indirectly by facilitating or assisting another Commonwealth entity to serve such a purpose.
(45) Petition.— Means the document filed by a petitioner to commence a case under §§ 113-113nn of this title pursuant to §113 of this title.
(46) Petitioner.— Means a public sector obligor that files a petition-or on whose behalf GDB, upon the Governor’s request, files a petition-pursuant to § 113 of this title.
(47) Plan.— Means a debt enforcement plan proposed under §§ 113-113nn of this title.
(48) Pleading.— Means any document, including any motion, filed with the court in any proceeding under §§ 112-112f of this title or §§ 113-113nn of this title.
(49) Public corporation.— Means an entity created by Commonwealth law as a public corporation.
(50) Public sector obligor.— Means a Commonwealth entity, but excluding:
(a) The Commonwealth;
(b) the seventy-eight (78) municipalities of the Commonwealth; and
(c) the Children’s Trust; the Employees Retirement System of the Government of the Commonwealth of Puerto Rico and its Instrumentalities; GDB and its subsidiaries, affiliates, and entities ascribed to GDB; the Judiciary Retirement System; the Municipal Finance Agency; the Municipal Finance Corporation; the Puerto Rico Public Finance Corporation; the Puerto Rico Industrial Development Company, the Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority; the Puerto Rico Infrastructure Financing Authority; the Puerto Rico Sales Tax Financing Corporation (COFINA); the Puerto Rico System of Annuities and Pensions for Teachers; and the University of Puerto Rico.
(51) Recovery program.— Means, consistent with § 112a of this title, for an eligible obligor, a financial and operational adjustment program.
(52) Special trade debt.— Means any claim for the provision of goods or services that
(a) Is scheduled pursuant to subsection (a)(2) of § 113a of this title, and
(b) exceeds a threshold to be determined by the petitioner in its reasonable discretion, but not to be less than $1 million;
(53) Statement of allocation, amended statement of allocation, and final statement of allocation.— Have the meanings given to those terms in § 113g of this title.
(54) Supreme Court.— Means the Supreme Court of the Commonwealth of Puerto Rico.
(55) Suspension period.— Means the period of time commencing on the date that the suspension period notice is published, and ending on the earlier of:
(a) The date that the approval order has become a final and unappealable order; and
(b) the date on which either of the conditions specified in subsection (e) of § 112d of this title has occurred.
(56) Suspension period notice.— Means the notice published pursuant to 112(d) of this title.
(57) Transfer order.— Means the order approving a transfer pursuant to § 113f of this title.
(58) United States.— Means the United States of America.
(59) U.S. Constitution.— Means the Constitution of the United States, as amended.
History —June 28, 2014, No. 71, § 102.