P.R. Laws tit. 23, § 3063
(a) The Authority is hereby empowered to issue, from time to time, by authority of the Commonwealth, its own bonds in such principal amounts as, in the opinion of the Authority, shall be necessary or appropriate to provide funds to pay and attain any of its corporate purposes, including the payment of interest on the bonds of the Authority for such period as it shall determine; for the establishment of reserves to secure such bonds; to finance, refinance, redeem, purchase or pay any outstanding bonds of the Authority; and to pay all other expeditures of the Authority incidental to, and necessary or convenient for the exercise of its powers and the achievement of its corporate purposes.
(b) The bonds shall be authorized by resolution or resolutions of the President of the Bank, subject to the approval of the Board of Directors of the Bank as fiscal agent, and shall be of such series, bear such date or dates, shall mature at such time or times not exceeding fifty (50) years from their respective dates of issue, earn interest at such rate or rates that do not exceed the maximum legal rate, be payable in such places within or outside of [the] Commonwealth, and shall be payable through such means, be subject to such terms of redemption, with or without premium, be authenticated in such manner and upon compliance with such conditions, and contain such other terms and stipulations as provided by said resolution or resolutions. The bonds may be sold at public or private sale for such price or prices as the President of the Bank shall determine, subject to the approval of the Bank’s Board of Directors as a fiscal agent; refinancing bonds may be issued or exchanged by outstanding bonds of the Authority pursuant to the terms deemed to be in the best interests of the Authority by the President of the Bank. Notwithstanding its form and tenor, and in the lack of an express statement the face of the bond that it non-negotiable, all the bonds of the Authority, including any coupons pertaining thereto, shall at all times have, and shall be understood to have, all the qualities, properties and nature (including negotiability) of negotiable instruments under the laws of the Commonwealth.
(c) The proceeds of the bonds of each issue shall be applied solely to the purposes for which such bonds shall have been issued, and shall be disbursed in such manner and under such restrictions, if any, as the Authority may provide in the trust agreement providing for the issuance of such bonds.
(d) Bonds may be issued under the provisions of this chapter without obtaining the consent of any department, division, commission, board, body, bureau or agency of the Commonwealth of Puerto Rico, and without any other proceedings or the occurrence of any condition or thing other than those proceedings, conditions or things specifically required by this chapter and by the provisions of the resolution authorizing the issuance of such bonds or the trust agreement securing the same; Provided, however, That §§ 581—595 of Title 7 shall be applicable.
(e) The bonds of the Authority bearing the signatures or facsimiles of the signatures of the officials of the Authority in office on the date of the signing thereof, shall be valid and shall be binding obligations, even though before the delivery and payment thereof, any of all the officers whose signatures or facsimile signatures appear thereon, have ceased to be officials of the Authority. Any trust agreement securing the bonds may prove that any such bond may contain a statement that they are issued pursuant to the provisions of this chapter, and any bond containing such statement under authority of such trust agreement, shall be conclusively deemed to be valid and issued in accordance with the provisions of this chapter. The officials or other employees of the Authority, the President of the Bank, or any person who executes the bonds shall not be personally liable for the same. The Authority is hereby empowered to purchase, with any funds available to such effects, any outstanding bonds issued or assumed by it, at a price that shall not exceed the principal among or the current redemption value thereof plus any accrued interest.
History —June 10, 1974, No. 62, Part 1, p. 239, § 13, renumbered as § 10 and amended on Sept. 27, 1994, No. 112, §§ 8, 11.