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 III - Debt Enforcement (§§ 113 — 113nn) › § 113c - The automatic stay

(a) Upon the filing of the petition, the following actions by all entities, regardless of where located, automatically shall be stayed with respect to affected debt:
(1) The commencement or continuation, including the issuance or employment of process, of a judicial, arbitrative, administrative, or other action or proceeding against the petitioner or (insofar as relating to or arising from claims against the petitioner or the filing of the petition) against any enumerated entity that:
(A) Was or could have been commenced before the filing of a petition under §§ 113-113nn of this title (including the request for a custodian); or
(B) is to recover on a claim against the petitioner or (insofar as relating to or arising from claims against the petitioner or the filing of the petition) against any enumerated entity, by mandamus or otherwise, which claim arose before the filing of a petition under §§ 113-113nn of this title;
(2) the enforcement against the petitioner or (insofar as relating to or arising from claims against the petitioner or the filing of the petition) against any enumerated entity of a judgment obtained before the filing of a petition under §§ 113-113nn of this title;
(3) any act to create, perfect, or enforce any lien against the petitioner’s property;
(4) any act to collect, assess, or recover on a claim against the petitioner that arose before the filing of a petition under §§ 113-113nn of this title, including any act to obtain possession or control of property belonging to the petitioner; and
(5) the setoff of any debt owing to the petitioner that arose before the filing of a petition under §§ 113-113nn of this title against any claim against the petitioner.
(b) The stay in this section shall extend automatically to all affected debt added to the schedule described in subsection (a)(2) of § 113a of this title upon each amendment of such schedule.
(c) The petition shall not operate as a stay against the lawful exercise of police power by any Commonwealth entity, the United States, or a state. Such exercise of police power shall not include the collection of interest or principal on any debt owed to the Commonwealth or GDB.
(d) The stay shall terminate with respect to property of the petitioner when the petitioner no longer has a legal or beneficial interest in the property.
(e) Unless terminated or modified by the Court pursuant to subsection (g) of this section, the stay of any act under this section shall continue until the earlier of:
(1) The effective date of the plan; or
(2) the time the case is dismissed and the dismissal is final and unappealable.
(f) Upon request of the petitioner, the Court may issue an order regarding the applicability and scope of the stay under subsection (a) of this section, and may issue an order enforcing the stay.
(g) The Court shall grant an entity relief from the stay, whether by terminating, annulling, modifying, or conditioning such stay, to the extent that:
(1) The entity’s interest in property of the petitioner is not adequately protected against violations of the Commonwealth Constitution or the U.S. Constitution; or
(2) if:
(A) The petitioner does not have equity in such property; and
(B) no part of such property is used or intended to be used to perform public functions or otherwise foster jobs, commerce, or education.
(h) Upon objection to a motion seeking relief from the automatic stay, which objection shall be filed within fourteen (14) days of the filing of such motion, the Court shall commence a hearing no later than thirty (30) days after the motion for relief from the stay was filed unless a later date is otherwise agreed to by the petitioner and the affected creditor seeking relief from the stay. The affected creditor seeking relief from the stay shall have the burden to prove it lacks adequate protection, and the petitioner’s lack of equity in the property. The petitioner has the burden to prove the facts relevant to relief pursuant to subsection (g)(2)(B) of this section.
History —June 28, 2014, No. 71, § 304.