P.R. Laws tit. 21, § 6702
Any association duly established pursuant to the provisions of this chapter shall have to comply with the following requirements to be able to issue bonds:
(a) That, at the request of the association, the Company determines that the improvement project to be financed through the bond issue furthers or strengthens the tourist industry in Puerto Rico, and
(b) that, the Board of Directors of the Government Development Bank for Puerto Rico, or whatever committee said Board may appoint for such a purpose, approves said issue through a resolution, after considering the following factors:
(1) Whether the association, together with its bondsman, if any, is financially liable and is fully capable or willing to meet its obligations under the proposed bond issue including its obligation to make payments in the amounts and on the dates required.
(2) Whether the proper measures shall be taken to pay the principal and interest on the bonds and to create and maintain the reserves required for such a purpose.
(3) Whether, and to what degree, the bond issue of the association may adversely affect the pending issues of bonds by the Commonwealth of Puerto Rico or any of its instrumentalities.
The Board of Directors of the Government Development Bank for Puerto Rico shall establish, through regulations or resolution, all procedures and requirements it may deem necessary to grant said exemption and authorize said issue. Regardless of whether the Board of Directors or the committee designated by the latter determines after its evaluation that the association or its bondsman has the capacity to pay and approves the bond issue, this shall not constitute an obligation to grant any type of security for the payment of the bonds. Neither shall it be understood that said Board of Directors, the Bank or the Government of Puerto Rico is liable to the holders of said bonds in case the association fails to meet its payment obligations.
History —Aug. 8, 1998, No. 207, § 5.002, eff. 60 days after Aug. 8, 1998.