NY A02102

Creates a new Article 7 in Banking Law establishing a framework for restructuring unsustainable sovereign and subnational debt through voluntary petitions filed with New York State.

Allows sovereign nations and subnational units to petition for relief if they certify the need to restructure unsustainable debt and agree to cooperate with the International Monetary Fund on a path to sustainability.

Requires states to notify creditors within 30 days of filing a petition and submit debt restructuring plans that must be approved by at least two-thirds in amount and more than one-half in number of creditors in each claim class.

Grants states the right to borrow money during restructuring with creditor approval, with new loans receiving priority repayment ahead of other claims, subordinating existing creditor claims as needed.

Applies retroactively to debts governed by New York law and overrides conflicting contractual provisions; allows creditors with claims under other jurisdictions to voluntarily opt into the restructuring framework.