,,ii #aadth ,,congress #ast ,session ,s4 #bdcf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #ah1 #bjae,ms4 ,warren 7for herself1 ,mr4 ,reid1 ,mr4 ,blumenthal1 and ,mr4 ,schumer7 introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to provide for certain assistance and reforms relating to the territories1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,puerto ,rico ,emergency ,financial ,stability ,act of #bjae4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,findings and purposes4,sec4 #c4 ,effective date4,sec4 #d4 ,severability4,sec4 #e4 ,definitions4,sec4 #f4 ,automatic stay4 #b4 ,findings and purposes 7a7 ,findings ,congress finds the following3 7#a7 ,the ,commonwealth ,government is confronted with a dire fiscal emergency and liquidity crisis that imminently threatens the welfare of the people of the ,commonwealth1 affecting the provision of essential public services including public safety1 health care1 and education that are needed both to sustain the welfare of the people and the economic ability of the ,commonwealth to address any future resolution of debts and legal obligations4 7#b7 ,a temporary stay on litigation with respect to debt holders for the ,commonwealth is essential to provide breathing space to the ,commonwealth1 creditors1 and the ,congress to determine an orderly process for the ,commonwealth to address any future resolution of legal obligations and to provide the ,commonwealth a path to sustainable growth2 and thereby1 protect the lives of more than #c1ejj1jjj citizens of the ,united ,states living in the ,commonwealth4 7#c7 ,the ,commonwealth is in a state of fiscal emergency brought on by1 among other things1 a combination of accumulated operating deficits1 cash shortages1 management inefficiencies1 and excessive borrowing4 7#d7 ,the ,commonwealth ,government's debt is unusually complex1 with #ah different but inter-related issuers4 7,a7 ,there is an even larger number of creditor groups1 each of which may have divergent interests4 7,b7 ,the debt's unusual complexity will substantially complicate any potential consensual restructuring in the absence of ,federal legislation to facilitate the negotiations4 7#e7 ,this legislation1 which includes a stay on litigation by debt holders1 can protect essential government services and help the ,commonwealth address its liabilities in an orderly fashion1 benefitting all stakeholders4 7,a7 ,a temporary stay on litigation is essential to facilitate an orderly process for stabilizing1 evaluating1 and comprehensively resolving the ,commonwealth's fiscal crisis4 7,b7 ,avoiding a disorderly race to the courthouse will benefit creditors as well as other stakeholders4 7,c7 ,furthermore1 the stay is only temporary4 7b7 ,purposes ,the purposes of this ,act are to-- 7#a7 provide a limited period of time to permit ,congress to enact comprehensive relief for the ,commonwealth1 providing it the necessary tools to address its economic and fiscal crisis2 and 7#b7 provide the ,commonwealth ,government with a tool it needs to address an immediate and imminent crisis that is unprecedented in the history of the ,united ,states4 #c4 ,effective date ,this ,act shall take effect on ,december #ah1 #bjae4 #d4 ,severability ,if any provision of this ,act or the application thereof to any person or circumstance is held invalid1 the remainder of this ,act1 or the application of that provision to persons or circumstances other than those as to which it is held invalid1 is not affected thereby4 #e4 ,definitions ,in this ,act3 7#a7 ,bond ,the term ,bond means a bond1 loan1 line of credit1 note1 or other borrowing title1 in physical or dematerialized form1 of which-- 7,a7 the issuer1 borrower1 or guarantor is the ,commonwealth ,government2 and 7,b7 the date of issuance or incurrence of debt precedes the date of enactment of this ,act4 7#b7 ,commonwealth ,the term ,commonwealth means the ,commonwealth of ,puerto ,rico4 7#c7 ,commonwealth government ,the term ,commonwealth ,government means the government of the ,commonwealth1 including all its political subdivisions1 public agencies1 instrumentalities1 and public corporations4 7#d7 ,court ,the term court means the ,united ,states ,district ,court for the ,district of ,puerto ,rico4 7#e7 ,other terms ,any other term that is used in section #f and is defined in title #aa1 ,united ,states ,code1 has the meaning given that term under title #aa1 ,united ,states ,code4 #f4 ,automatic stay 7a7 ,except as otherwise provided in this section1 the enactment of this ,act operates with respect to any claim1 debt1 or cause of action related to a ,bond as a stay1 applicable to all entities 7as such term is defined in section #aja of title #aa1 ,united ,states ,code71 of-- 7#a7 the commencement or continuation1 including the issuance or employment of process1 of a judicial1 administrative1 or other action or proceeding against the ,commonwealth ,government or to recover a claim against the ,commonwealth ,government2 7#b7 the enforcement1 against the ,commonwealth ,government or against property of the ,commonwealth ,government1 of a judgment2 7#c7 any act to obtain possession of property of the ,commonwealth ,government or of property from the ,commonwealth ,government or to exercise control over property of the ,commonwealth ,government2 7#d7 any act to create1 perfect1 or enforce any lien against property of the ,commonwealth ,government2 7#e7 any act to create1 perfect1 or enforce against property of the ,commonwealth ,government any lien to the extent that such lien secures a claim2 7#f7 any act to collect1 assess1 or recover a claim against the ,commonwealth ,government2 and 7#g7 the setoff of any debt owing to the ,commonwealth ,government against any claim against the ,commonwealth ,government4 7b7 ,the enactment of this ,act does not operate as a stay under subsection 7a7 of this section of the continuation of1 including the issuance or employment of process1 a judicial1 administrative1 or other action or proceeding against the ,commonwealth ,government that was commenced on or before the date of enactment of this ,act4 7c7 ,except as provided in subsection 7d71 7e71 or 7f71 a stay of an act under subsection 7a7 shall cease to have effect as of ,april #a1 #bjaf4 7d7 ,on motion of a party in interest and after notice and a hearing1 the court may grant relief from a stay under subsection 7a7-- 7#a7 for cause1 including the lack of adequate protection of a security interest in property of such party in interest2 or 7#b7 with respect to a stay of an act against property under subsection 7a71 if-- 7,a7 the debtor does not have an equity in such property2 and 7,b7 such property is not necessary for the ,commonwealth to provide essential services4 7e7 ,thirty days after a request under subsection 7d7 of this section for relief from the stay of any act against property of the ,commonwealth ,government under subsection 7a7 of this section1 such stay is terminated with respect to the party in interest making such request1 unless the court1 after notice and a hearing1 orders such stay continued in effect pending the conclusion of1 or as a result of1 a final hearing and determination under subsection 7d7 of this section4 ,a hearing under this subsection may be a preliminary hearing1 or may be consolidated with the final hearing under subsection 7d7 of this section4 ,the court shall order such stay continued in effect pending the conclusion of the final hearing under subsection 7d7 of this section if there is a reasonable likelihood that the party opposing relief from such stay will prevail at the conclusion of such final hearing4 ,if the hearing under this subsection is a preliminary hearing1 then such final hearing shall be concluded not later than #cj days after the conclusion of such preliminary hearing1 unless the #cj-;day period is extended with the consent of the parties in interest or for a specific time which the court finds is required by compelling circumstances4 7f7 ,upon request of a party in interest1 the court1 with or without a hearing1 shall grant such relief from the stay provided under subsection 7a7 of this section as is necessary to prevent irreparable damage to the secured interest of an entity in property1 if such interest will suffer such damage before there is an opportunity for notice and a hearing under subsection 7d7 or 7e7 of this section4 7g7 ,no order1 judgment1 or decree entered in violation of this section shall have any force or effect4 7h7 ,in any hearing under subsection 7d7 or 7e7 concerning relief from a stay-- 7#a7 the party requesting such relief has the burden of proof on the issue of the debtor's equity in property2 and 7#b7 the party opposing such relief has the burden of proof on all other issues4