P.R. Laws tit. 22, § 907
(a) Subject to the provisions of §§ 581 et seq. of Title 7, the bonds of the Authority may be authorized by resolution or resolutions of the members of the Board and such resolution shall determine the following: the series, the maturity date or dates, whose term or terms shall not exceed fifty (50) years from their respective dates of issue, and the interest or interests thereon; may be of such denomination or denominations, and either coupon or registered; may carry registration or conversion privileges, may be executed in such a manner, may be payable by such a means of payment and at such place or places, may be subject to such terms of redemption, with or without premium, may be declared or become due on such a date before maturity, may provide for the replacement of mutilated, destroyed, stolen, or lost bonds, may be authenticated in such a manner upon compliance with such conditions, and may contain such other terms and stipulations as such resolution or resolutions may provide. The bonds may be sold publicly or privately at such price or prices as the Authority shall determine.
(b) The bonds of the Authority bearing the signatures of the officers of the Authority and of the members of the Authority in office on the date of the signing thereof shall be valid and binding obligations, notwithstanding that before the delivery thereof and payment thereof any or all of the officers of the Authority or members of the Authority whose signature or facsimile signatures appear thereon shall have ceased to be such members of the Authority or officers of the Authority. Any resolution authorizing the bonds may provide for any such bonds to mention the fact that they are issued pursuant to §§ 901—917 of this title, and any bond containing such recital under authority of any such resolution shall be conclusively deemed to be valid and to have been issued in conformity with the provisions of §§ 901—917 of this title.
(c) Temporary or interim bonds, receipts or certificates, may be issued before the execution and delivery of definitive bonds in such form and in accordance with such provisions as may be set forth in the resolution or resolutions authorizing their issue.
(d) Any resolution or resolutions authorizing any bonds may contain provisions, which shall be a part of the contract with the bondholders as to:
(1) The disposition of the entire gross or net revenues and present or future income of the Authority, including the pledging of all or any part thereof to guarantee payment of the bonds.
(2) Setting aside reserves for amortization of funds, and the regulation and disposition thereof.
(3) The granting, if any, of any guarantee, pledge or mortgage of the total or part of the funds, income, revenues or properties of the Authority (present or future) financed under §§ 901—917 of this title to public or private entities.
(4) Limitations of the right of the Authority to restrict and regulate the use of any enterprise or property, or part thereof.
(5) Limitations with respect to the purposes for which the product of the sale of any bond issue executed at the time or in the future may be applied.
(6) Limitations relative to the [issuance of additional bonds].
(7) The procedure by which the terms of any resolution authorizing bonds, or of any other contract with the bondholders, may be amended or abrogated, and the amount of the bonds the holders of which must consent thereto, and the manner in which such consent may be given.
(8) The amount and kind of insurance to be maintained on the enterprises and properties of the Authority and the use and disposition of insurance moneys.
(9) Events of default and terms and conditions upon which any or all of the bonds become or may be declared due before the specified dates of maturity and as to the terms and conditions upon which such a declaration and its consequences may be waived.
(10) The rights, remedies, liabilities, powers and duties arising upon the breach by the Authority of any of its covenants, conditions or obligations.
(11) The vesting in one or more trustees with the right to enforce any agreements made in relation to the bonds, as to the powers and duties of each trustee, and the limitation of liabilities thereof, and as to the terms and conditions upon which the holders of the bonds or any proportion or percentage of them may enforce any agreements made pursuant to §§ 901—917 of this title, or duties imposed hereby.
(12) Other acts and things not inconsistent with §§ 901—917 of this title, that may be necessary or convenient for guaranteeing the bonds, or that may tend to make the bonds more marketable.
(e) The bonds authorized by §§ 901—917 of this title, shall be negotiable in accordance with the meaning and for all purposes of the Uniform Negotiable Instruments Act in force in Puerto Rico and may be accepted as guarantee by any trustee, trust and public fund whose investment or deposit shall be under the Authority and control of the Government of the Commonwealth of Puerto Rico or any officers thereof.
(f) Neither the members of the Board nor any person executing the bonds shall be liable personally for the bonds to the bondholders or to third persons, nor shall be subject to any civil liability by reason of the issue thereof.
The Authority is authorized to purchase any outstanding bonds issued or assumed thereby, with any funds available therefor, at a price which does not exceed the principal amount and any accrued interest assumed thereby, as of the date of repurchase or the redemption price thereof and the accrued interest. All bonds so purchased shall be cancelled.
(g) The Board of Directors may review, from time to time, the revenues and other charges for services rendered or facilities offered by the Authority (or any third party contracted by the Authority) for which any bonds are issued in accordance with the provisions of §§ 901—917 of this title, or by the right of use of any enterprise or for receiving any of such services. Any revenues and other charges committed for the payment of any of such bonds shall be fixed and reviewed in such a manner that the income received by the Authority therefrom, together with any other available funds, shall at least be sufficient at all times for the payment of the maintenance, repair and operation costs of such an enterprise whose income is committed in accordance with these provisions, including reserves for such purposes, and for the payment of the principal and interest on the bonds for the payment of which such income is committed and to provide the pertinent reserves.
History —June 19, 1958, No. 56, p. 120, § 6; May 16, 2006, No. 97, § 7; July 12, 2011, No. 128, § 2.