palani
8th July 2015, 06:42 AM
No debate. Puerto Rico is a territory. In Law territories are attached to municipalities. That is why the District of Columbia was created ... to attach all territories acquired by the U.S. to some city. That city is Washington, D.C. and it currently is not able to apply bankruptcy to itself.
What this article is telling you is that bankruptcy is a benefit created by the federal constitution for the benefit of states and not the federal government.
My opinion .... this proposed Hitlery law is intended to let congress extend the bankruptcy benefit to themselves. This isn't about bailing out Puerto Rico. This is about bailing out the federal-ation. It is going to be a precursor to a general bankruptcy action at the federal level FOR the feds.
Hold onto your shorts.
http://news.yahoo.com/u-court-upholds-ruling-against-puerto-rico-bankruptcy-050123307--sector.html
A U.S. appeals court affirmed a lower court decision to strike down Puerto Rican legislation aimed at granting local municipalities the right to enter bankruptcy, but one judge in a concurring opinion said excluding the U.S. territory's public entities from federal bankruptcy law was unconstitutional.
Puerto Rico passed the so-called Recovery Act last year to give certain public corporations, with around $20 billion in debt, the ability to restructure financially in an orderly process. Puerto Rico is currently struggling with a total debt load of around $72 billion, which it says it is unable to pay.
"Besides being irrational and arbitrary, the exclusion of Puerto Rico's power to authorize its municipalities to request federal bankruptcy relief should be re-examined in light of more recent rational-basis review case law," Judge Juan Torruella said in a concurring opinion attached to the ruling. The Recovery Act was struck down by a federal court in Puerto Rico in February after bondholders in the island's power authority, including Franklin Advisers, OppenheimerFunds and Blue Mountain Capital, argued in a law suit that the legislation contravened the U.S. bankruptcy code, which expressly excludes Puerto Rico. While the 49-page ruling ostensibly vindicates the bondholders' position, the one judge's concurring opinion also makes a forceful case that Puerto Rico should be given access to Chapter 9 of the U.S. bankruptcy code, which deals with municipal bankruptcies. Bondholders have consistently opposed this view.
The in-depth opinion, steeped in legislative history, may strengthen the case for Congress to act on a bill, currently before a House committee, that seeks to change Chapter 9 to treat Puerto Rico like any other state for the purposes of bankruptcy.
What this article is telling you is that bankruptcy is a benefit created by the federal constitution for the benefit of states and not the federal government.
My opinion .... this proposed Hitlery law is intended to let congress extend the bankruptcy benefit to themselves. This isn't about bailing out Puerto Rico. This is about bailing out the federal-ation. It is going to be a precursor to a general bankruptcy action at the federal level FOR the feds.
Hold onto your shorts.
http://news.yahoo.com/u-court-upholds-ruling-against-puerto-rico-bankruptcy-050123307--sector.html
A U.S. appeals court affirmed a lower court decision to strike down Puerto Rican legislation aimed at granting local municipalities the right to enter bankruptcy, but one judge in a concurring opinion said excluding the U.S. territory's public entities from federal bankruptcy law was unconstitutional.
Puerto Rico passed the so-called Recovery Act last year to give certain public corporations, with around $20 billion in debt, the ability to restructure financially in an orderly process. Puerto Rico is currently struggling with a total debt load of around $72 billion, which it says it is unable to pay.
"Besides being irrational and arbitrary, the exclusion of Puerto Rico's power to authorize its municipalities to request federal bankruptcy relief should be re-examined in light of more recent rational-basis review case law," Judge Juan Torruella said in a concurring opinion attached to the ruling. The Recovery Act was struck down by a federal court in Puerto Rico in February after bondholders in the island's power authority, including Franklin Advisers, OppenheimerFunds and Blue Mountain Capital, argued in a law suit that the legislation contravened the U.S. bankruptcy code, which expressly excludes Puerto Rico. While the 49-page ruling ostensibly vindicates the bondholders' position, the one judge's concurring opinion also makes a forceful case that Puerto Rico should be given access to Chapter 9 of the U.S. bankruptcy code, which deals with municipal bankruptcies. Bondholders have consistently opposed this view.
The in-depth opinion, steeped in legislative history, may strengthen the case for Congress to act on a bill, currently before a House committee, that seeks to change Chapter 9 to treat Puerto Rico like any other state for the purposes of bankruptcy.