P.R. Laws tit. 13, § 82b
The following provisions shall apply to the computation of the amount of the interest payable on any fiscal year on the direct obligations of the Commonwealth on account of the amounts borrowed directly by the Commonwealth and evidenced by bonds or notes for the payment of which the good faith, credit and the power to impose taxes of the Commonwealth have been pledged according to Article VI of the Constitution of Puerto Rico:
(a) Computation of the amount of the interest payable on any fiscal year in relation to those obligations, or any portion thereof, that provide for the payment of interest at a non-fixed rate for the duration of said obligations or portion thereof, in relation to which there is in effect a qualified interest rate exchange agreement that provides for the payment of a fixed rate by the Commonwealth, shall be based, subject to the provisions of subsection (d) of this section, only on the fixed rate payable by the Commonwealth under said agreement, should said computation be made at the time said obligations are issued or after they have been issued.
(b) Computation of the amount of the interest payable on any fiscal year in relation to those obligations, or any portion thereof, that provide for the payment of interest at a fixed rate for the duration of said obligations or portion thereof, in relation to which there is in effect a qualified interest rate exchange agreement that provides for the payment of a non-fixed rate by the Commonwealth, shall be based, subject to the provisions of subsection (e) of this section; and in the case of basis exchange agreements, subject to the provisions of subsection (f) of this section only on the fixed rate payable by the Commonwealth on said obligations or portion thereof, should said computation be made at the time said obligations are issued or after they have been issued.
(c) Computation of the amount of the interest payable on any fiscal year in relation to those obligations, or any portion thereof, that provide for the payment of interest at a non-fixed rate for the term of said obligations or portion thereof, in relation to which no qualified interest rate exchange agreement that provides for the payment of a fixed rate by the Commonwealth is in effect, shall be based on the maximum payable rate as established in § 56 of this title, and if it were less than the rate established in said section, as established in the resolution or agreement authorizing said obligations, should said computation be made at the time said obligations are issued or after they have been issued.
(d) Computation of the amount of the interest payable on any fiscal year in relation to those obligations, or any portion thereof, that provide for the payment of interest at a non-fixed rate for the term of said obligations or portion thereof, in relation to which a qualified interest rate exchange agreement that provides for the payment of a fixed rate by the Commonwealth is in effect, but for which, on any fiscal year, the amount of the interest payable under said obligations or portion thereof for said fiscal years exceeds the amount received from the other party by the Commonwealth under said agreement, said amount in excess shall be deemed to be, for purposes of clause (ii) of Section 2 of Article VI of the Constitution of Puerto Rico, as payment on account of the interest made by the Commonwealth on bonds and notes guaranteed by the Commonwealth under said clause (ii).
(e) Computation of the amount of the interest payable on any fiscal year in relation to those obligations, or any portion thereof, that provide for the payment of interest at a fixed rate for the term of said obligations or portion thereof, in relation to which a qualified interest rate exchange agreement is in effect that is not a basis swaps agreement that provides for the payment of a non-fixed rate by the Commonwealth, but for which, on any fiscal year, the amount of the interest payable under said obligations or portion thereof exceeds the amount received by the other party by the Commonwealth under said agreement, said amount in excess shall be deemed to be, for purposes of clause (ii) of Section 2 of Article VI of the Constitution of Puerto Rico, as payment on account of the interest made by the Commonwealth on bonds and notes guaranteed by the Commonwealth under said clause (ii).
(f) In the case of a qualified basis swaps agreement in relation to which, on any fiscal year, the amount paid to the other party by the Commonwealth exceeds the amount received from the other party by the Commonwealth under said agreement (deemed to be the amount received by the Commonwealth of the annual fixed payment or the amount of the annual amortization of any payment received at the beginning of the agreement (equal to the present value of the annual fixed payments), as it may apply), said amount in excess shall be deemed to be, for purposes of clause (ii) of Section 2 of Article VI of the Constitution of Puerto Rico, as payment on account of the interest made by the Commonwealth on bonds and notes guaranteed by the Commonwealth under said clause (ii).
(g) In the case of a qualified basis swaps agreement, the amount paid to the other party by the Commonwealth as payment for terminating the agreement shall constitute neither interest nor principal nor shall it be deemed as a component of the service of the debt of the Commonwealth for purpose of Section 2 of Article VI of the Constitution of Puerto Rico.
History —Aug. 1, 2005, No. 39, art. 3, § 3.