P.R. Laws tit. 24, § 7004b
(a) The Administration is hereby authorized to incur obligations through a revolving credit line in an amount to be determined by the Government Development Bank for Puerto Rico in accordance with and guaranteed by the amount of federal funds proceeding from the Federal Government Medicaid Program to be disbursed to Puerto Rico as certified by the Board of Directors of the Administration and the Puerto Rico Medicaid Program, or its equivalent. This certification shall never be greater than the grants in effect at the time of its issuance. The funds to repay the revolving credit line under this subsection shall proceed from transfers received by the Administration from the Federal Government Medicaid Program or its equivalent. The Government Development Bank shall be authorized to make the adjustments it deems necessary to the amount of federal funds approved and certified to ensure the payment of this credit line. The credit line herein authorized may be taken through the Bank or any private financial institution. It shall only be used for the payment of services to insurance companies or health service providers, as well as for any financing expense. The Administration shall have the obligation to use said funds primarily for the payment of any balance owed from this credit line.
(b) The approval of the Bank, in its role as fiscal agent, shall be necessary in order to establish the credit line herein authorized with a private financial entity. Furthermore, the Bank and the Office of Management and Budget shall establish the administrative mechanisms deemed necessary to ensure that said funds are used solely and exclusively for the purposes provided in this section.
(c) The Administration is hereby authorized to enter into all those contracts that may be necessary to guarantee the payment of the obligations herein established, including, but not limited to, encumbering and establishing liens over any of its properties, whether real or personal, tangible or intangible, deposit accounts, securities or investment accounts of any type, as the same may be modified from time to time, under those terms and conditions deemed necessary and convenient.
(d) The Administration is hereby authorized to execute all those public or private instruments, and any other documents necessary and/or related to the obligations authorized herein, including those documents and public instruments pertaining to any refinancing, moratorium, extension, modification, or amendment to the obligations herein authorized.
(e) If necessary, the Administration is hereby directed to use its own available funds to reduce the obligation herein authorized during the effective term thereof in accordance with the terms and conditions approved by the Board of Directors and the Bank.
(f) The Executive Director shall represent the Administration in all those acts and in the execution and/or surrendering of all those instruments and documents, whether public or private, as previously indicated in this section.
(g) In the event that there is any balance owed to the Bank from the credit line authorized in this section after applying the funds from the transfers received by the Administration from the Federal Government Medicaid Program or its equivalent, the Government of Puerto Rico shall honor the same through the budget appropriations that may be necessary. To such effects, the Director of the Office of Management and Budget is hereby directed to consign in the operating budgets of the Government of Puerto Rico, submitted annually by the Governor of Puerto Rico to the Legislative Assembly, the amount corresponding to the payment of any balance owed, as reported by the Bank. If, at any time, the federal funds transfer from the Medicaid Program or its equivalent, the budget appropriations, or other income of the Administration were insufficient to pay the obligations herein authorized and the interest accrued each year, the Secretary of the Treasury shall withdraw from any funds available in the General Fund of the Government of Puerto Rico any amount needed to cover the deficit in the amount required for the payment of said obligations and interest, and shall direct the amounts withdrawn to be applied to such payment and purpose.
(h) As used in this section, the term “bank” shall mean the Government Development Bank for Puerto Rico.
History —Sept. 7, 1993, No. 72, art. IV, added as § 2B on Oct. 18, 2011, No. 205, § 1.