P.R. Laws tit. 12, § 1265
(a) The Authority is hereby authorized to issue refunding bonds of the Authority for the purpose of refunding those bonds then outstanding which shall have been issued under the provisions of this chapter, including the payment of any redemption premium thereon and any interest accrued or accruing on the date of redemption or maturity of such bonds, and, if deemed advisable by the Authority, for either or both of the following additional purposes:
(1) Constructing improvements, additions, extensions or enlargements of any project or projects in connection with which the bonds to be refunded shall have been issued, and
(2) paying the total or partial cost of any additional project or projects. The issuance of such bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the Authority regarding the same shall be governed by the provisions of this chapter which relate to the bond issue insofar as such provisions may be applicable therefor.
(b) Refunding bonds issued under this section may be sold or exchanged for outstanding bonds issued under this chapter, and, if sold, the proceeds thereof may be applied, in addition to any other authorized purpose, to the purchase, redemption or payment of such outstanding bonds. Refunding bonds may be issued, as the Authority may determine at any time, on or before the date of maturity or maturities or the date selected for the redemption of the bonds being refunded. Pending the application of the proceeds of such refunding bonds, with any other available funds, to the payment of the principal, accrued interest and any redemption premium on the bonds being refunded, and, if so provided or permitted in the trust agreement securing such refunding bonds, such proceeds may be invested in direct obligations of, or obligations of which the principal of and the interest on are intentionally guaranteed by the United States of America and which shall mature or be subject to redemption by the holder thereof, at his option, no later than the respective dates when such principal, with the interest accrued thereon will be required, and be sufficient with other available funds, for the purposes they are intended.
History —June 27, 1977, No. 121, p. 324, § 14, renumbered as § 15 and amended on June 12, 1978, No. 48, p. 162, § 15.