P.R. Laws tit. 7, § 271
In addition to and as a guarantee separate from that established in § 270 of this title, the Commonwealth of Puerto Rico shall warrant the payment of the unpaid balance of the principal and interest on the mortgage loans or provisional financing secured by the Agency under the provisions of §§ 261—265, 268, and 270—271d of this title, or a part of such balance, as well as debenture bonds that may be issued by the Agency for such purposes, up to an amount which shall not exceed ninety million dollars ($90,000,000). The mortgage loans or provisional financing and the bonds with which payment shall be made of the guarantee authorized by this section shall bear a statement of such guarantee including the amount authorized in each case, on the face of such loans, financing or debenture bonds.
Said bonds shall be paid using the funds deposited to the account of the Special Reserve Fund pledged for the payment of the principal of and interest on such debenture bonds. If said funds are insufficient for the payment of such principal and interest upon maturity, the Agency shall draw on any of its unencumbered funds the necessary sums for the payment of such overdue principal and interest and shall direct that said sums be covered into the Special Reserve Fund. The Office of Management and Budget shall consign annually in the General Budget Joint Resolution any amounts needed for the payment of principal and interest on said bonds that cannot be paid as prescribed above. Furthermore, if necessary, the Secretary of the Treasury shall draw on the Redemption Fund, established by former §§ 402—404 of Title 13, or any available funds in the Treasury of Puerto Rico, such sums as may be necessary to cover the deficiency in the amount required for the payment of such principal and interest, and shall direct that the amounts so drawn be applied to such payments. The good faith and the credit of the Commonwealth of Puerto Rico are hereby pledged to such payments; Provided, That provisional financing secured under the provisions of this section shall be guaranteed by a special reserve fund to be established by the Agency, where the premiums to be charged for making mortgage loans or granting provisional financing shall be covered; And Provided, further, That the Agency shall establish through regulations the standards that will govern this program, which regulations shall have the force of law once approved by the Secretary of Housing and the Governor.
History —June 25, 1965, No. 87, p. 216, added as § 11 on Dec. 5, 1975, No. 11, p. 961, § 2; May 30, 1976, No. 72, p. 219, § 1; Sept. 30, 1986, No. 4, p. 798, § 1.