Title 48, Territories and Insular PossessionsRelease 119-110

§2195 Protection From Inter-debtor Transfers

Title 48 › CHAPTER 20 — PUERTO RICO OVERSIGHT, MANAGEMENT, AND ECONOMIC STABILITY › SUBCHAPTER IV — MISCELLANEOUS PROVISIONS › § 2195

Last updated Sep 22, 2026|Official source

Summary

While an Oversight Board for Puerto Rico exists, if someone takes property from a Puerto Rico government agency in a way that breaks the law and hurts a creditor who had a legal claim on that property (like a pledge, security interest, or lien), the person who got the property must pay its value. A creditor can sue in the United States District Court for the District of Puerto Rico to enforce this after any stay of section 2194 is lifted or ends, unless a stay under subchapter III is in effect.

Full Legal Text

Title 48, §2195

Territories and Insular Possessions, Source: USLM XML via OLRC

(a)Protection of creditors

While an Oversight Board for Puerto Rico is in existence, if any property of any territorial instrumentality of Puerto Rico is transferred in violation of applicable law under which any creditor has a valid pledge of, security interest in, or lien on such property, or which deprives any such territorial instrumentality of property in violation of applicable law assuring the transfer of such property to such territorial instrumentality for the benefit of its creditors, then the transferee shall be liable for the value of such property.

(b)Enforceability

A creditor may enforce rights under this section by bringing an action in the United States District Court for the District of Puerto Rico after the expiration or lifting of the stay of section 2194 of this title, unless a stay under subchapter III is in effect.

Reference

Citations & Metadata

Citation

48 U.S.C. § 2195

Title 48, Territories and Insular Possessions

Last Updated

Sep 22, 2026

Release point: 119-110