Puerto Rico Clauses Relating to Defaults, Default Remedies
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FAQ
Puerto Rico is a territory of the United States. Territory status limits the island's full political, economic, and social development.
President Harry Truman signed it into law on July 3, 1950. The act was enacted in order to enable the people of Puerto Rico to organize a local government pursuant to a constitution of their own, comparable to those of states and other territories of the United States.
(66 Stat. 327), signed by the President on July 3, 1952. On July 25, 1952, after final ratification by the constitutional convention to accept the constitution as approved by the Congress, the Governor of Puerto Rico proclaimed the establishment of the Commonwealth of Puerto Rico under the new constitution.
Under President Woodrow Wilson, the Jones-Shafroth Act (ch. 148, 39 Stat. 951) was enacted on March 2, 1917. This law granted U.S. citizenship to Puerto Ricans, and separated the territory's executive, judicial, and legislative offices into distinct government branches.
The Oversight Board filed a Plan of Adjustment with the U.S. District Court for the District of Puerto Rico that reduces the debt by 80% and saves Puerto Rico more than $50 billion in debt service payments.
Jones-Shafroth Act, U.S. legislation (March 2, 1917) that granted U.S. citizenship to Puerto Ricans. It also provided Puerto Rico with a bill of rights and restructured its government.
In addition to granting U.S. citizenship to Puerto Ricans, the Jones-Shafroth Act separated powers among the island's three branches of government and established a bill of rights. With the outbreak of World War I, U.S. officials viewed Puerto Rico as vital to protecting the newly-opened Panama Canal.
Puerto Ricans are American citizens who serve in the military and may reside in the United States. Puerto Rico has a constitution that provides for self-government in most local matters and includes the right to elect a governor and two-house legislature.