§ 45:1340 — Limitation on bankruptcy

§1340. 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 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 R.S. 13:4741 and R.S. 39:619 through
622.

Legislative History

Acts 2021, No. 293, §3, eff. June 14, 2021.