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§ 903(1)

Puerto Rico v. Franklin Cal. Tax-Free Trust U.S.

Ruling
Puerto Rico was not completely excluded from the definition of "state" under chapter 9 and was barred from enacting its own municipal bankruptcy scheme.
Issue(s)
Could Puerto Rico enact its own municipal bankruptcy law if it was not eligible to file for bankruptcy under chapter 9?

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Court : Supreme Court
Commercial opinion summary, case decided on June 13, 2016 , LexisNexis #0616-099

Franklin Cal. Tax-Free Trust v. Puerto Rico

Ruling
Puerto Rico insolvency law was preempted by § 903 (1).
Issue(s)
Whether § 903(1) of the Bankruptcy Code preempts the Puerto Rico Public Corporation Debt Enforcement and Recovery Act, preventing Puerto Rican utilities from filing an insolvency proceeding under the Puerto Rico law?

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on July 06, 2015 , LexisNexis #0715-130