P.R. Laws tit. 21, § 691
The Agency may create and establish one or more reserve funds to be known as debt service reserve funds and may pay into such reserve funds:
(a) Any moneys appropriated and made available by the Commonwealth or by any municipality for the purposes of such funds;
(b) the proceeds of any sale of bonds to the extent provided in the resolution of the Agency authorizing the issuance thereof, and
(c) any other moneys which may be made available to the Agency for the purposes of such funds from any other source or sources.
The moneys held in or credited to any debt service reserve fund established hereunder, except as hereinafter provided, shall be used solely for the payment of the principal of bonds of the Agency secured by such reserve fund, as the same mature, the redemption of such bonds of the Agency, the payment of interest on such bonds or the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity; Provided, however, That moneys in any such fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of such fund to less than the maximum amount required to be on deposit to the credit of such fund as determined by resolution of the Agency, except for the purpose of paying principal of and interest on the bonds secured by such reserve fund maturing and becoming due and for the payment of which other moneys of the Agency are not available. Any income or interest earned by, or increment to, any such debt service reserve fund due to the investment thereof may be transferred to any other fund or account of the Agency to the extent it does not reduce the amount of such debt service reserve fund below the maximum amount required to be maintained in such fund.
The Agency shall not issue bonds at any time unless there is in the debt service reserve fund an amount equal to the reserve required for the payment of debt service on all bonds then outstanding and the bonds to be issued; unless the Agency, at the time of issuance of such bonds, shall deposit in such debt service reserve fund from the proceeds of the bonds so to be issued, or otherwise, an amount which together with the amount then in such debt service reserve fund will be not less than the reserve required for the payment of debt service.
In order to further assure the maintenance of such debt service reserve funds at the required level, there shall be annually apportioned and paid to the Agency for deposit in each debt service reserve fund such sum, if any, as shall be certified by the President of the Agency to the Secretary of the Treasury as necessary to restore such reserve funds to an amount equal to that reserve required for the payment of debt service. The President shall annually, on or before December 1, make and deliver to the Secretary of the Treasury his certification stating the sum, if any, required to restore each such debt service reserve fund to the level required for the payment of debt service, and the sum or sums so certified, if any, shall be apportioned and paid to the Agency from any available or uncommitted funds in the General Fund of the Treasury during the then current fiscal year of the Commonwealth, and if there are no such available funds, the Secretary of the Treasury shall request the amount so certified from the Director of the Office of Management and Budget, who shall proceed to include it in the General Budget of the Commonwealth for the coming fiscal year. The certificate of the President shall be based upon an evaluation made by him of investment of the money in such fund, which evaluation shall be conclusive.
History —June 30, 1972, No. 29, p. 432, § 11; June 7, 1973, No. 115, p. 467, § 6.