After years of wrangling, New York lawmakers have a chance to give indebted nations some breathing room — if a key bill can survive the state assembly and governor’s office. If it passes, the law would limit the ability of a handful of notorious firms to buy cheap national debt just to sue for full repayment.

New York has become the battleground because most international debt contracts are governed by New York law, giving the state’s courts enormous power over global financial disputes. That makes New York legislation uniquely powerful in curbing vulture fund behavior worldwide.

Buying distressed debt to sue for full repayment has netted so-called vulture funds billions from vulnerable nations over the years, including one infamous example where hedge fund Elliott Investment Management made over $2 billion (almost a 400 percent return on its investment) from a struggling Argentina.