P.R. Laws tit. 21, § 5832
The Municipal Revenue Collection Center (MRCC) is hereby empowered to procure and obtain, in representation of the municipalities that so accept pursuant to the provisions of §§ 5832–5841 of this title, a special loan in the form of a line of credit (the loan) with the Government Development Bank for Puerto Rico (the Bank) to pay in advance the amount necessary to cancel the bond issue made to transact the sale of the tax debts pending collection by the municipalities. The point forty-eight percent (0.48%) increase that results from the net increase in the General Fund subsidy to municipalities, as provided for in § 5815 of this title, shall be appropriated for the payment of interest on this loan for the first five (5) years by those municipalities participating in the financing, at the end of which term the balance owed on leveled payments of principal and interest for twenty-five (25) years until paid up in full; Provided, That any deficiency that may arise shall be paid from the operational funds of each municipality and the appropriation of the net increment in the General Fund subsidy shall take into account the appropriations made by the municipalities to pay the loan authorized by §§ 5821–5831 of this title. Those municipalities that do not participate as debtors in the loans referred to shall benefit from the raise in subsidy pursuant to the provisions of §§ 5801–5820 of this title. Provided, also, That during the first five (5) years of the loan, the recoveries of the tax debts related with the transaction of the cancelled debt, shall be applied to the principal of the loan to reduce the responsibility of each encumbered municipality.
History —Oct. 11, 2001, No. 146, § 1.