P.R. Laws tit. 15, § 511

2019-02-20 00:00:00+00
§ 511. Bonds

(a) By authority of the Government of Puerto Rico, which is hereby granted, the Puerto Rico National Parks Company may issue and sell its own bonds from time to time and keep them in circulation.

(b) The bonds may be authorized by resolution or resolutions of the Board of Directors approved by a majority of votes of the members thereof, and may be of such series, may bear such date or dates, may mature at such time or times not exceeding fifty (50) years from their respective dates, may bear interest at such rate or rates not exceeding six percent (6%) annually, may be in such denomination or denominations, may be in such form, either coupon or registered, may carry such registration or conversion privileges, may be executed in such manner, may be payable in such medium of payment and at such place or places, may be subject to such terms of redemption, with or without premium, may be declared or become due at such time before the maturity date thereof, may provide for the replacement of mutilated, destroyed, stolen or lost bonds, may be authenticated in such manner and upon compliance with such conditions, and may contain such other terms and covenants as such resolution or resolutions may provide. The bonds may be sold at public or private sale for such price or prices not lower than ninety-five percent (95%) of the par value thereof as the Board of Directors shall determine; Provided, That refunding bonds may be exchanged for outstanding bonds of the Company on such terms as the Board may deem to be in the best interest of the Company. Notwithstanding the form and tenor, and in the absence of an express recital on the face thereof that the bond is non-negotiable, all bonds of the Company shall at all times be and shall be understood to be negotiable instruments for all purposes.

Any resolution or resolutions authorizing any bonds or the trust contract securing such bonds may contain provisions which shall be part of the contract with the bondholders:

(1) As to the disposition of the entire gross or net revenues and present or future income of the Company, including the pledging of all or any part thereof to secure payment of the bonds.

(2) As to the rates or prices to be charged for goods sold or services rendered by the Company, and the application, use, and disposition of the amounts that may be raised by the collection of such rates and from other receipts of the Company.

(3) As to the setting aside of reserves for amortization funds, and the regulation and disposition thereof.

(4) As to limitations on the right of the Company to restrict and regulate the use of any enterprise, or property, or part thereof.

(5) As to limitations on the purposes to which may be applied the proceeds of the sale of any issue of bonds then or thereafter made.

(6) As to limitations on the issuance of additional bonds.

(7) As to the procedure by which the terms of any resolution authorizing bonds, or any other contract with the bondholders, may be amended or abrogated, and as to the amount of the bonds whose holders must consent thereto, and the manner in which such consent may be given.

(8) As to the amount and kind of insurance the Company must maintain on its undertakings, and the use and disposition of insurance moneys.

(9) Covenanting against pledging all or any part of the revenues, income or property of the Company the right to which the latter may then have or may thereafter acquire.

(10) As to events of default and terms and conditions upon which any or all of the bonds should become or may be declared due before maturity, and as to the terms and conditions upon which such declaration and its consequences may be waived.

(11) As to the rights, liabilities, powers, and duties arising upon the breach by the Company of any of its covenants, conditions, or obligations; and as to the appointment of a receiver in case of nonperformance by the Company.

(12) As to vesting in a trustee or trustees the right to enforce any covenants made in relation to, or to secure, or pay, the bonds; as to the powers and duties of such trustee or trustees, and the limitation of liabilities thereof; and as to the terms and conditions upon which the holders of the bonds or any proportion or percentage thereof may enforce any covenants made under this chapter or the duties imposed hereby.

(13) As to the manner of collecting the rates, fees, rentals, interest or other charges for the services, facilities, loans or commodities of undertakings of the Company.

(14) As to any other acts and things not inconsistent with this chapter that may be necessary or convenient for the security of the bonds, or that may tend to make the bonds more marketable.

(c) Pending the execution and delivery of definitive bonds, temporary or interim bonds, receipts or certificates may be issued in such form and with such provisions as may be provided in such resolution or resolutions.

(d) The bonds of the Company bearing the signature of the officers of the Company in office on the date of the signing thereof, shall be valid and binding obligations, notwithstanding that before the delivery thereof and payment therefor any or all of the officers of the Company whose signatures or facsimile signatures appear thereon shall have ceased to be such officers of the Company. Any resolution authorizing the bonds may provide that any such bond may contain a recital that it is issued pursuant to the provisions of this chapter, and any bond containing such recital under authority of any such resolution shall be conclusively deemed to be valid and to have been issued in conformity with the provisions of this chapter.

History —June 23, 1961, No. 114, p. 234, § 11; Jan. 8, 2004, No. 36, § 4.