P.R. Laws tit. 23, § 11169
(a) By the power of the Commonwealth of Puerto Rico, the Authority is hereby authorized to issue, from time to time, and sell its own bonds and have outstanding bonds for any of its corporate purposes.
(b) Bonds shall be authorized by resolution or resolutions of the Authority or by a trust agreement, and may be in such a series, bear such date or dates, and mature at such time or times not exceeding fifty (50) years from the date of issue, shall bear interest at such rate or rates not exceeding those authorized by law, shall be in such denomination or denominations, and be in such form, either coupon or registered, carry such registration and conversion privileges, shall be executed in such a form, be payable in such medium or mediums of payment, at such place or places, be subject to such terms of redemption, with or without premium, may be declared or become due before the maturity date thereof, may be replaced when defaced, destroyed, stolen or lost, may be authenticated in such form once the conditions are met, and may include such terms and conditions as provided in said resolution or resolutions. Bonds may be sold at public or private sale, at such price or prices as the Authority determines; Provided, however, That refinancing bonds may be exchanged for outstanding bonds of the Authority in accordance with terms that the Authority deems beneficial and in the best interest thereof. Regardless of their form and character even if the bond does not bear a non-negotiable statement, all bonds of the Authority are and shall be deemed to be negotiable instruments for all intents and purposes.
(c) Any bond of the Authority bearing signatures of officers of the Authority in office on the date of the signing thereof, shall be valid and binding notwithstanding that before the delivery or payment date of such bonds such officer or officers whose signatures or facsimile appear thereon shall have ceased to be officers of the Authority. The validity of the bond authorization and issue shall not be contingent upon or affected in any manner whatsoever by any procedure related to the construction, acquisition, expansion, or improvement of the works for which such bonds are issued, or by any contract entered into in relation to said works. Any resolution authorizing said bonds may provide that such bonds include a statement that they were issued in accordance with the provisions of this chapter, and any bond including this statement, authorized under a resolution, shall be deemed to be conclusively valid and issued in accordance with the provisions of this chapter.
(d) Temporary bonds or interim receipts or certificates may be issued prior to the execution and delivery of definitive bonds in the manner and as provided in the authorizing resolution or resolutions.
(e) Any resolution or resolutions authorizing bonds may contain provisions that may be part of the contract entered into with bondholders:
(1) Disposing or pledging all or part of its revenues either present or future or other funds of the Authority, even pledging such funds, in whole or in part, to secure the payment of principal of and interest on such bonds as provided in § 11164(a)(11) of this title;
(2) Setting the charges to be imposed, as well as the application, use, and disposition of the sums collected on account of such charges of the Authority;
(3) Setting aside reserves for the amortization, regulation and disposition thereof.
(4) Limiting the rights of the Authority to restrict and regulate the use of any public transportation, maritime transport, and rail transport facility, or part thereof;
(5) Providing for the payment of the expenses of the bond issue from the proceeds of said bonds or limiting the purposes to which the proceeds from the present or current sale of bonds may be applied.
(6) Limiting the issuance of additional bonds;
(7) Settomg the procedure whereby the terms of any resolution authorizing bonds, or trust agreement, or any other agreement entered into with or for the benefit of bondholders may be amended or abrogated, including the proportion of bondholders which must consent thereto, and the manner in which such consent may be given;
(8) Setting the amount and the type of insurance for public transportation, maritime transport, and rail transport facilities, and the use and disposition of the insurance funds;
(9) Whether or not pledging all or part of its revenues, and any other income or funds of the Authority to the extent of the Authority’s right at that time or in the future;
(10) Establishing what may constitute default, as well as the terms and conditions under which any or all bonds shall be declared or become due before their maturity date; and the terms and conditions under which said declaration and the consequences thereof may be waived;
(11) Regarding the rights, powers, and duties to be exercised and the responsibilities to be met in the event that the Authority violates any of its agreements, conditions, or obligations;
(12) Vesting in a trustee or trustees the right to enforce any terms agreed upon to secure or pay, or in relation to said bonds; vesting in a trustee or trustees the powers and duties and limiting their responsibilities; and setting the terms and conditions under which the bondholders, or the proportion or percentage thereof, must compel compliance with an agreement entered into under this chapter, or duties herein imposed;
(13) Providing for the manner in which fees and other charges may be collected on account of the use of public transportation, maritime transport, and rail transport facilities, or for the services provided by the Authority; and
(14) Regarding other actions or matters that are not inconsistent with the provisions of this chapter which may be needed or convenient to guarantee the bonds, or intended to render bonds more negotiable.
(f) Neither the members of the Authority nor any person executing the bonds shall be liable personally thereon.
(g) The Authority is hereby empowered to purchase out of any funds available therefor, any outstanding bonds issued or held by the same at a price which shall not exceed the principal amount or the current redemption price then applicable, plus accrued interest.
(h) The Authority is hereby authorized from time to time to issue bonds in such principal amounts that, in the judgment of the Authority, are necessary to provide sufficient funds to pay all or a portion of the cost of any project for the construction, operation, and maintenance of public transportation, maritime transport, and rail transport facilities. Bonds issued by the Authority under this provision may be made payable out of the total or a portion of the revenues of the Authority or the Commonwealth of Puerto Rico represented by the Department of Transportation and Public Works pursuant to the clauses of a financing agreement in connection with such project. The bonds issued by the Authority under this provision shall not encumber the borrowing margin thereof, nor shall such bonds constitute a debt of the Commonwealth of Puerto Rico or any of its political subdivisions, which shall not be liable therefor.
History —Aug. 3, 2014, No. 123, § 10.