Federal · Title 48 — Territories and Insular Possessions

48 U.S.C. § 2163: Reservation of territorial power to control territory and territorial instrumentalities

Civil

What this law says, in plain English

This statute defines the territorial power to control debt composition and moratorium laws, and establishes that certain executive orders affecting creditor rights or fund transfers are preempted by federal law.

Read the full statutory text

a territory law prescribing a method of composition of indebtedness or a moratorium law, but solely to the extent that it prohibits the payment of principal or interest by an entity not described in section 109(b)(2) of title 11 , may not bind any creditor of a covered territory or any covered territorial instrumentality thereof that does not consent to the composition or moratorium; a judgment entered under a law described in paragraph (1) may not bind a creditor that does not consent to the composition; and unlawful executive orders that alter, amend, or modify rights of holders of any debt of the territory or territorial instrumentality, or that divert funds from one territorial instrumentality to another or to the territory, shall be preempted by this chapter.

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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.