P.R. Laws tit. 7, § 607b-1
Every department, agency, instrumentality and public corporation of the Commonwealth of Puerto Rico, and their successors (hereinafter denominated as “government entities”) are hereby require to negotiate and execute with the Government Development Bank for Puerto Rico, agreements, notes or financial contracts as are necessary to establish, recognize, and execute, restructure and/or refinance any advances, repayment agreements, obligations, and/or loans of said government entities with the Government Development Bank for Puerto Rico. Said new agreements, notes, or financial contracts shall be effective on July 1st, 2016. If necessary, said advances, agreements, obligations and loans may be restructured or refinanced more than once. Furthermore, these government entities are hereby authorized to pay or include as part of the principal of their advances, agreements, obligations and/or loans, any expenses related to said restructuring and/or refinancing, including, but not limited to expenses incurred by such government entity or the Government Development Bank for Puerto Rico in carrying out said restructuring and/or refinancing, or in disposing of said obligations and loans, the expenses related to any bond issue in connection with the trading of such bonds and placement of such loans, including the bonds of the Puerto Rico Public Finance Corporation, the amounts that must be deposited in the reserve accounts to be established to ensure the repayment of any such bonds, premiums for any financial guarantee, surety bond, or letter of credit obtained and the interest accrued as of the date of approval of this act. Restructured or refinanced obligations shall provide that, in addition to the payment of the principal and interest, these government entities shall be required to make: the necessary payments under interest rate swaps in connection with the bonds of the Puerto Rico Public Finance Corporation; payments for termination or breach of interest rate swaps or investment agreements in connection with said bonds; payment required for deposit in any reserve account for the benefit of such bonds; payment of redemption premiums of such bonds; payment to any trustee of such bonds; payment to any letter of credit provider or liquidity facility for the benefit of all or part of such bonds; and any other payment to be made under the terms of said bonds or bond trust indenture agreement.
History —Dec. 17, 2001, No. 164, added as § 4 on Feb. 13, 2014, No. 24, § 1.