P.R. Laws tit. 3, § 8162
(a) All government entities are hereby authorized to execute covered contracts, provided they comply with the requirements of this chapter.
(b) It is hereby prohibited for a government entity to execute a covered contract without obtaining the prior written approval of the Bank. To obtain such approval, the government entity must submit an application to be approved by the Bank on the form provided by the Bank in the regulations. As part of the application, the government entity shall identify the specific resources it will use to comply with the corresponding payments and it shall certify that it will use those resources to comply with such payments.
(c) Any covered contract executed by a government entity without the prior written approval of the Bank shall be voidable. This provision shall not be applicable to covered contracts that the Bank exempts from the provisions of this chapter under the regulations.
(d) All covered contracts subject to the approval of the Bank pursuant to this chapter may not be assigned, sold, or otherwise transferred without the prior written approval of the Bank. This requirement shall be part of the covered contract so that all the contracting parties and third parties may be fully aware of the same. This requirement shall not be applicable to covered contracts that the Bank exempts from the provisions of this chapter under the regulations.
(e) All assignments, sales, or other type of transfer of a covered contract subject to the provisions of this chapter and of the regulations, executed without the prior written approval of the Bank, shall be voidable. Should this provision be violated, the original covered contract with the government entity may be rescinded, at the government entity’s and the Bank’s option. In the event that the covered contract is rescinded, the monies paid by the government entity shall be returned to the latter and the personal property under said covered contract shall be returned to the lessor or financing provider.
(f) All approval applications submitted by a government entity must include a certification by the chief executive officer of the government entity and of the internal or external legal advisor of said government entity to the effect that the contractual and purchasing requisites of the pertinent government entity have been met.
(g) All covered contracts must include a clause expressly stating that, unless otherwise expressly authorized by law, said covered contract does not constitute a debt whose payment may restrict the good faith, credit, and tax-imposing authority of the Commonwealth of Puerto Rico.
(h) All covered contracts must include a certification stipulating that the Bank reviewed and approved such covered contract.
History —Sept. 3, 2003, No. 265, § 3.