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Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>
2026-07-06 10:51:44 -04:00

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LegalText 48 U.S.C. § 2163 Reservation of territorial power to control territory and territorial instrumentalities us united_states_code code_section 48 TERRITORIES AND INSULAR POSSESSIONS 20 PUERTO RICO OVERSIGHT, MANAGEMENT, AND ECONOMIC STABILITY 2163 48 U.S.C. § 2163 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc48@119-100.zip /us/usc/t48/s2163 data/legal/raw/us/code/title-48/usc48.xml 9a400239f74d7f02668f058f5fe09496fe813c961aa034d367d2dcc9fc178e88 2f9a72ec272e6666d7f55f52cc3186aefc6368ca4cc2b9053a531de2fb9288c2 3e0bd84301df3e91dee2b7a4212ad168cf034823fa53ffaf75dfea023da9a28c 2026-07-04 official
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48 U.S.C. § 2163 - Reservation of territorial power to control territory and territorial instrumentalities

Text

Subject to the limitations set forth in subchapters I and II of this chapter, this subchapter does not limit or impair the power of a covered territory to control, by legislation or otherwise, the territory or any territorial instrumentality thereof in the exercise of the political or governmental powers of the territory or territorial instrumentality, including expenditures for such exercise, but whether or not a case has been or can be commenced under this subchapter—

(1) a territory law prescribing a method of composition of indebtedness or a moratorium law, but solely to the extent that it prohibits the payment of principal or interest by an entity not described in section 109(b)(2) of title 11, may not bind any creditor of a covered territory or any covered territorial instrumentality thereof that does not consent to the composition or moratorium;

(2) a judgment entered under a law described in paragraph (1) may not bind a creditor that does not consent to the composition; and

(3) unlawful executive orders that alter, amend, or modify rights of holders of any debt of the territory or territorial instrumentality, or that divert funds from one territorial instrumentality to another or to the territory, shall be preempted by this chapter.

(Pub. L. 114187, title III, § 303, June 30, 2016, 130 Stat. 579.)

Notes

Editorial Notes

References in TextThis chapter, referred to in par. (3), was in the original “this Act”, meaning Pub. L. 114187, June 30, 2016, 130 Stat. 549, known as the Puerto Rico Oversight, Management, and Economic Stability Act and also as PROMESA, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 2101 of this title and Tables.