The purpose of Act No. 4 (the Electric Power Authority Revitalization Act) is to revitalize the Puerto Rico Electric Power Authority (“PREPA”) so that it may continue providing excellent services to Puerto Rico and all its residents. Act 4-2016 seeks to provide PREPA with the tools it needs to put into effect the restructuring agreed with the creditors that entered into the Restructuring Support Agreement ("RSA") and to transform itself into a modern, efficient public corporation, administered by professional individuals, with dependable working conditions for the benefit of all Puerto Rico.

To this end, and as part of the restructuring and revitalization of PREPA, Act 4-2016 established the Puerto Rico Electric Power Authority Revitalization Corporation ("PREPARC"). Act 4-2016 authorized PREPARC to act as public corporation with the special purpose of issuing securitization bonds and carrying out some related actions as part of the restructuring plan agreed between PREPA and some of its creditors under the RSA; these securitization bonds are an essential part of the restructuring and revitalization plan agreed in the RSA.