P.R. Laws tit. 23, § 6441
The Authority is hereby authorized to issue and sell its bonds from time to time for those amounts of principal, and under such terms and conditions that are needed, in the opinion of the Authority, to provide sufficient funds to finance the costs of the Center and the improvement projects and projects in private parcels or the District, and to promote any of its purposes and execute any of its powers. All the bonds issued by the Corporation shall be subject to the following:
(a) Terms and conditions of the bonds. — The Authority, through the adoption of a resolution or resolutions authorizing the issue of its bonds, shall determine or provide for the following: date or dates due; rate or rates of interest (that shall not exceed the maximum rate allowed by law); denominations; forms; series; conversion privileges; manner of execution; means, medium, source and place of repayment; guarantees; redemption terms, with or without premiums; acceleration; replacement of mutilated, destroyed, stolen or lost bonds; manner and terms of authentication; and all the other conditions and agreements that the Authority deems convenient with regard to the bond issue. The bonds may be sold at public or private sale for the price or prices determined by the Authority. Notwithstanding their form and tenure, and in the absence of a provision on the face of the bond indicating that the bond is non-negotiable, all the bonds of the Authority shall be negotiable instruments at all times, for all purposes.
(b) Execution and validity of bonds. — The bonds bearing the signature of the officials of the Authority in office on the date of the signing thereof, shall constitute valid and binding obligations, even when before the delivery or payment of said bonds, any or all the officials whose signature or signatures by facsimile appear thereon, have ceased in their functions as officials of the Authority. The validity of the authorization and the issue of the bonds shall not depend or shall not be affected in any way by any procedure related to the project for which the bonds were issued or by any contract executed with regard to said project. Any resolution authorizing the bonds may provide that any such bonds may have a mention to the effect that it was issued pursuant to the provisions of this subchapter, and any bond that bears said mention shall be deemed conclusively valid and issued pursuant to the provisions of this subchapter. Temporary or interim bonds, receipts or certificates may be issued pending the execution and delivery of definitive bonds, in such form and containing such provisions as stated in said resolution or resolutions.
(c) Use of the proceeds of the sale of bonds. — All proceeds from the sale of bonds shall be used for those purposes that are indicated in the resolution of the Authority authorizing their issue.
(d) Pledge of the Authority. — Any pledge of the Authority shall be binding from the moment that it was made, and any funds or property thus pledged shall be subject to the lien of the pledge without the need of its actual delivery. The lien on the pledge of the Authority shall be binding on any party that has a claim for damages, contracts or other claims against the Authority, regardless of the fact they have been duly served. No instrument that creates the pledge shall have to be recorded in a registry to be effective against third parties.
(e) Other terms and conditions. — Any resolution adopted by the Authority that authorizes the issue of bonds or a trust agreement with the holders of the bonds, may contain any of the following provisions that shall be part of the contract with the holders of the bonds:
(1) On the disposition of a portion of, or all of the present or future gross or net revenues (including the charges for benefits of the Authority and the tacit legal lien securing the payment thereof of the Authority or of the owners or leaseholders of projects in the private parcels financed under this chapter, including the pledge of all or part of said revenues to secure or guarantee the payment of the bonds;
(2) on the pledge, lien, or mortgage of all or part of the revenues, rents or properties of the Authority or of projects on private parcels financed under this chapter;
(3) on the establishing of reserves for the bonds or projects financed under this chapter and the regulation and disposal thereof;
(4) on the limitations of the purposes for which the proceeds of the sale of any bond issue may be used;
(5) on the limitations regarding the issue of additional bonds;
(6) with regard to the procedure by which the terms of any resolution that authorizes the bond issue, any trust agreement or any other contract with the holders of bonds, may be amended or revoked, and with regard to the number of bonds whose holders must consent thereto and the manner that said consent may be given;
(7) on any agreement prohibiting the pledging of all or any part of the present or future revenues or funds of the Authority;
(8) on events of noncompliance and the terms and conditions under which the bonds should or can be declared due and payable before their maturity date, and with regard to the terms and conditions under which said statement and its consequences may be waived;
(9) on the rights, remedies, liabilities, powers and obligations resulting from the breach by the Authority of any of its covenants, conditions or obligations;
(10) on conferring on one (1) or more trusts, the right to enforce any agreement made with regard to the bonds, and with regard to powers, duties and limitations of each trustee, and
(11) on any other act or condition that may be necessary or convenient to secure the bonds, or that may make them more marketable.
History —Sept. 2, 2000, No. 351, § 5.01; Oct. 4, 2001, No. 142, § 18.