P.R. Laws tit. 24, § 342h
(a) By authority of the Government of Puerto Rico hereby executed, the Puerto Rico Medical Services Administration is by these presents authorized to issue all at once or from time to time, bonds to finance the purposes of this chapter. Each issue of bonds shall bear the date, shall mature at such time or times which shall not exceed forty (40) years from their respective dates of issue and shall bear interest at such rate or rates that do not exceed the maximum rates established by law for the sale of bonds of the Commonwealth of Puerto Rico, as determined by the Administration, and may be redeemed before their maturity at the Administration’s option, at such price or prices and under such terms and conditions as may be determined by it, prior to the bond issue. The Administration shall determine the manner and way to execute the bonds, and the place or places where the principal and interest thereof shall be paid. When a bond or coupon bears the signature or facsimile signature of an official who has ceased in office at the time of the delivery of said bonds, such signature or facsimile signature shall, nevertheless, be valid and sufficient and it shall be considered for all purposes as if the official had remained in office until such delivery. Notwithstanding any other provision in this chapter or of the language of any of the bonds issued under the provisions hereof, such bonds shall be considered negotiable instruments under the laws of the Commonwealth of Puerto Rico. Bonds may be issued in coupon or recordable form, or both, as the Administration may determine and provision shall be made to record any coupon bonds in regard to principal only, and also in regard to principal and interest, and to reconvert any registered bonds into coupon bonds, in regard to principal and interest. The Administration may sell said bonds in such form, at public or private sale, for such price or prices as it shall determine to be most convenient for its own interests, but for not less than the percentage of their par value, as established by law for the sale of bonds of the Commonwealth of Puerto Rico.
The proceeds from each bond issue shall be used solely for the purposes for which such bonds have been authorized and shall be disbursed in such manner and under such restrictions, if any, as the Administration may provide in the resolution authorizing such bond issue or in the trust agreement securing the bonds.
The resolution providing for the bond issue and any trust agreement securing them may contain such limitations as to additional bond issues as the Administration may determine. Prior to preparing the final bonds, the Administration may issue interim receipts or temporary bonds with or without coupons, exchangeable for final bonds after they have been prepared. The Administration may provide for the replacement of any bonds which may be mutilated, destroyed or lost.
(b) Bonds issued under the provisions of this chapter may be secured, in the discretion of the Administration, by a trust agreement between the latter and a corporate trustee which may be any trust company or bank having the powers of a trust company, within or outside the Commonwealth of Puerto Rico. The resolution authorizing the bond issue or the trust agreement may pledge all or any part of the proceeds or any other revenues of the Administration, and provide for the mortgage of its properties to secure payment of the principal and interest on such bonds, and it may contain such provisions for the protection and exercise of the bondholders, rights and remedies and any other provisions deemed reasonable and proper by the Administration.
(c) All bonds issued under the provisions of this chapter and the interest drawn by them shall be exempt from taxation at all times.
History —June 22, 1978, No. 66, p. 203, § 9.