Louisiana Revised Statutes 45:1340 – A. Prior to the date that is two years and one day after which the corporation no longer has any payment obligation outstanding to the issuer of the related bonds, a trust shall be p
Terms Used In Louisiana Revised Statutes 45:1340
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Issuer: means any Louisiana public corporation, public trust, or other entity that issues system restoration bonds approved by a financing order. See Louisiana Revised Statutes 45:1312
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Related bonds: means , with respect to a trust, the system restoration bonds that funded the net proceeds transferred by an issuer to the corporation and then contributed by the corporation to that trust. See Louisiana Revised Statutes 45:1332
- State: means the state of Louisiana. See Louisiana Revised Statutes 45:1312
- Trust: means an express special public trust created only pursuant to and in compliance with the provisions of this Subpart. See Louisiana Revised Statutes 45:1332
A. Prior to the date that is two years and one day after which the corporation no longer has any payment obligation outstanding to the issuer of the related bonds, a trust shall be prohibited from filing and shall have no authority to file a voluntary petition under the federal Bankruptcy Code, as it may, from time to time, be in effect. The provisions of this Section shall be part of any contractual obligation owed to the bondholders of the related bonds issued pursuant to this Subpart. This contractual obligation shall not subsequently be modified by state law during the period of this contractual obligation, and the state of Louisiana and the Louisiana Legislature hereby covenant with the bondholders of the related bonds that the state and the Louisiana Legislature shall not limit or alter the denial of authority pursuant to this Section during the period referred to in this Subsection.
B. A trust shall be subject to the provisions of La. Rev. Stat. 13:4741 and La. Rev. Stat. 39:619 through 622.
Acts 2021, No. 293, §3, eff. June 14, 2021.