48 U.S.C. § 2195
Section 2195 · Protection from inter-debtor transfers
Amended 1 time on record
Applied in 2 court decisions — leading case 297 F. Supp. 3d 269 - Ambac Assurance Corp. v. Com. of Puerto Rico (In re Fin. Oversight & Mgmt. Bd. for Puerto Rico) (2018)
Most recently applied in 297 F. Supp. 3d 269 - Ambac Assurance Corp. v. Com. of Puerto Rico (In re Fin. Oversight & Mgmt. Bd. for Puerto Rico) (February 2018)
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.
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.