When Congress amended the Bankruptcy Code in 1984, Congress precluded Puerto Rico from seeking bankruptcy relief under chapter 9. The author explores the history of this exclusion, the case Puerto Rico v. Franklin California Tax-Free Trust, and § 314(b)(7) of the Puerto Rico Oversight Management and Economic Stability Act. The author then concludes that § 314(b)(7) should be removed to resolve the dysfunction it creates.
Christine J. Joh,
A Fly in the Ointment: PROMESA's Drafting Error in Section 314(b)(7),
Emory Bankr. Dev. J.
Available at: https://scholarlycommons.law.emory.edu/ebdj/vol35/iss2/10