P.R. Laws tit. 13, § 83c
In order to determine the amount that the Commonwealth may be obligated to pay under the guarantee and at the same time be able to calculate the constitutional limit of the public debt under Section 2 of Article VI of the Constitution of Puerto Rico, in case the obligations under the guarantee are included in said calculation, the following provisions are adopted.
(a) The computation of the amount of the interest payable in 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 a qualified interest rate exchange agreement of the Authority is in effect that provides for the payment of a fixed rate by the Authority, shall be based, subject to the provisions of subsection (d) of this section, only on the fixed rate payable by the Authority under said agreement, should said computation be made at the time in which said obligations are issued or after they have been issued.
(b) The computation of the amount of the interest payable in 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 a qualified interest rate exchange agreement of the Authority is in effect that provides for the payment of a non-fixed rate by the Authority, shall be based, subject to the provisions of subsection (e) of this section and, in the case of basis swap agreements, subject to the provisions of subsection (f) of this section only on the fixed rate payable by the Authority in said obligations or portion thereof, should said computation be made at the time in which said obligations are issued or after they have been issued.
(c) The computation of the amount of the interest payable in 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 of the Authority is not in effect that provides for the payment of a fixed rate by the Authority, shall be based on the maximum rate payable as established in § 56 of this title, and if it is 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 in which said obligations are issued or after they have been issued.
(d) The computation of the amount of the interest payable in any fiscal year in relation to those obligations, or any portion thereof, that provide for the payment of interest at a non-fixed rate of said obligations or portion thereof, in relation to which a qualified interest rate exchange agreement of the Authority is in effect that provides for the payment of a fixed rate by the Authority, but for which, in any fiscal year, the amount of the interest payable under said obligations or portion thereof for said fiscal year exceeds the amount received from the other party by the Authority under said agreement, said amount in excess shall be deemed, for the purpose of clause (ii) of Section 2 of Article VI of the Constitution of Puerto Rico, as a payment on account of the interest made by the Authority on bonds and notes guaranteed by the Commonwealth under said clause (ii).
(e) The computation of the amount of the interest payable in 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 of the Authority is in effect, that is not a basis swaps agreement, that provides for the payment of interest at a non-fixed rate by the Authority, but for which, in any fiscal year, the amount of the interest payable under said obligations or portions thereof exceeds the amount received from the other party by the Authority under said agreement, said amount in excess shall be deemed, for the purpose of clause (ii) of Section 2 of Article VI of the Constitution of Puerto Rico, as a payment on account of the interest made by the Authority on bonds and notes guaranteed by the Commonwealth under said clause (ii).
(f) In the case of a basis swap agreement, in relation to which, in any fiscal year, the amount paid to the other party by the Authority exceeds the amount received from the other party by the Authority under said agreement (considering as the amount received by the Authority the annual fixed payment or the portion of the annual amortization of any payment received at the beginning of the agreement, as it may apply), said amount in excess shall be deemed, for the purpose of clause (ii) of Section 2 of Article VI of the Constitution of Puerto Rico, as a payment on account of the interest made by the Authority on bonds and notes guaranteed by the Commonwealth under said clause (ii).
(g) For the purpose of the calculation of the constitutional limit of the public debt under Section 2 of Article VI of the Constitution of Puerto Rico, any amount payable or to be paid by the Commonwealth under the Guarantee with respect to any payment for the termination of a qualified interest rate exchange agreement of the Authority shall neither constitute the principal, nor the interest, nor shall it be deemed to be a component of the service of the debt of the Authority or of the Commonwealth.
History —Aug. 1, 2005, No. 39, art. 4, § 4.