P.R. Laws tit. 22, § 152a
The Commonwealth of Puerto Rico guarantees the payment of the principal and premium, if any, of interest on the following bonds and obligations:
(a) The refinancing bonds of the Aqueduct and Sewer Authority, hereinafter the “Authority”, 1995 series; and the Revenue Bonds of the Authority, RD Issues before FmHA, series K to Z; series A, AA, BB, CC, DD, EE, FF, and GG “Special Obligations Bonds”, (U.S. Department of Agriculture, Rural Development) and all loans granted by State Revolving Funds, pursuant to the Federal Clean Water Act of 1972, as amended, and the Federal Safe Drinking Water Act of 1996, as amended (the “bonds and obligations in effect”).
(b) All bonds or other obligations that may be issued by the Authority, the U.S. Department of Agriculture, Rural Development and the loans that could be granted by the State Revolving Funds to the Authority, pursuant to the federal laws in subsection (a) of this section after the effective date of this act until June 30, 2015 the (“future bonds and obligations”)[sic]. The future bonds or obligations to be covered by this surety shall be those specified through a resolution of the Authority, and a statement of said surety shall appear on the face of said future bonds or obligations. The guarantee provided in this section shall remain in effect on those bonds covered only for such term that they are deemed in effect under the trust deed or other agreements as per the sum totals that were issued and backed.
If at any time the revenues, income or any other available funds of the Authority that are pignorated for the payment of principal, of premiums, if any, and of the interest on bonds directly guaranteed by the Commonwealth of Puerto Rico under the provisions of this section, were not sufficient for the payment of said principal, the premiums, if any, and interest at their maturity, nor to maintain a reserve for such purpose, as provided in the Trust Contract or other agreements that back said bonds, the Secretary of the Treasury shall cosign or advance, from any available funds in the Commonwealth Treasury, those sums of money that are needed to cover the deficiencies in the amount required for the payment of said principal, premiums, if any, and interest, and to maintain said reserve, and shall direct that the sums thus withdrawn be used for such purposes. In case the resources are advanced, the Secretary of the Treasury shall notify the Director of the Office of Management and Budget of the resources advanced, and the latter shall proceed to include the same in the General Budget of Expenses of the Government of Puerto Rico for the following fiscal year. In order to make said payments, the good faith and credit of the Commonwealth of Puerto Rico are hereby pledged.
Notwithstanding the provisions included in this section, the Authority, or the official, board or body which succeeds in the functions of the Authority may, from time to time, notify, in writing, and with the written approval of the Secretary of the Treasury, that the guarantee authorized herein is transferred for the payment of the principal and premiums, if any, and on the interest of any bonds issued or to be issued by any other public corporation to refinance any of the bonds mentioned in the first paragraph of this section; provided however, that said guarantee shall be kept in effect for any outstanding bond issued to date by the Authority and for refinancing bonds issued by the Authority to refinance any of the outstanding bonds indicated. The other provisions of this section shall be applicable to the bonds issued by the Authority and by that other public corporation.
History —July 28, 1994, No. 45, §§ 1, 2; Aug. 3, 2000, No. 140, §§ 1, 2; Sept. 21, 2004, No. 386, § 1; July 12, 2010, No. 75, § 1.