§ 45:1324 — Limitation on bankruptcy

§1324. Limitation on bankruptcy
A. Prior to the date that is two years and one day after which the corporation no
longer has any payment obligation to any issuer of any system restoration bonds outstanding,
the corporation is 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, and
neither any public official nor any organization, entity, or other person shall authorize the
corporation to be or to become a debtor under the Federal Bankruptcy Code during such
period. The provisions of this Section shall be part of any contractual obligation owed to the
holders of system restoration bonds issued under this Part. Any such contractual obligation
shall not subsequently be modified by state law during the period of the contractual
obligation, and the state of Louisiana and the Louisiana Legislature hereby covenant with the
holders that the state and any public instrumentality thereof and the Louisiana Legislature
shall not limit or alter the denial of authority under this Section during the period referred to
in this Subsection.
B. The corporation is a public corporation and an instrumentality of the state and is
subject to the provisions of R.S. 13:4741 and R.S. 39:619 through 622.

Legislative History

Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.