P.R. Laws tit. 18, § 822
The Council is hereby authorized to issue, at one time or from time to time, revenue bonds of the University for the purpose of acquiring or constructing any project or projects. The bonds of each issue shall bear such date, shall mature at such time or times not exceeding forty (40) years from their respective dates, and shall bear interest at such rate or rates not exceeding five percent (5%) per annum, as the Council may determine, and may be declared redeemable before maturity, at the option of the Council, at such price or prices and under such terms and conditions as may be fixed by the Council before the issuance of the bonds. The Council shall determine the form and manner of the execution of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places for the payment of principal and interest, which might be in the office of the Secretary of the Treasury of Puerto Rico or in any bank or trust company within or outside the Commonwealth of Puerto Rico. Whenever a bond or coupon bears the signature or facsimile signature of any officer who is no longer in office before the delivery of said bonds, such signature or facsimile shall, nevertheless, be valid and sufficient for all purposes as if such officer had remained in office until said delivery. Notwithstanding any other provision of this chapter or the recital of any bonds issued under the provisions of this chapter, all such bonds shall be considered negotiable instruments under the laws of Puerto Rico. The bonds may be issued in coupon form or registered, or both, as determined by the Council, and provision shall be made for registering any coupon bonds only as to principal, and also as to principal and interest and for the reconversion into coupon bonds of any bonds registered as to principal and interest. The Council may sell such bonds in such manner, either at public or private sale, and at such price, as it may consider most desirable to the best interests of the University, but such sale shall not be done at a price so low as to require that the interest be paid on the money thus received at a rate higher than five percent (5%) per annum, computed in relation to the absolute maturity or maturities of the bonds according to the normal schedule of bond values, excluding, however, from such computations, the amount of any premium payable upon the redemption of any bonds before maturity.
The proceeds of each bond issue shall be used exclusively for the purpose for which such bonds may have been authorized and shall be disbursed in such manner and under such restrictions, if any, as the Council may provide in the resolution authorizing the issuance of such bonds or in the trust contract securing them. Unless otherwise provided in the resolution authorizing the bonds or in any trust contract securing them, if by an error in computation or otherwise the proceeds of the said bonds are less than the said cost, additional bonds may be issued in the same manner to provide for the amount of such deficit, and they shall be considered as of the same issuance and shall be payable from the same fund without preference or priority for the bonds originally issued for the same purpose.
The resolution providing for the issuance of revenue bonds and any trust contract securing them may further contain such limitations on the issuance of additional revenue bonds as the Council may determine and said additional bonds may be issued under such restrictions and limitations as said resolution or trust contract may specify.
Before preparing the final bonds, the University may, under similar restrictions, issue interim receipts or provisional bonds with or without coupons, exchangeable for final bonds when these have been executed and are ready for delivery. The Council may provide for the replacement of any bonds that may be mutilated, destroyed or lost.
The revenue bonds issued under the provisions hereof shall not constitute a debt of the Commonwealth of Puerto Rico; neither shall they pledge the good faith and credit of the Commonwealth; and the said bonds shall be payable only from the funds provided therefor, and a statement to that effect shall be included in the recital of the bonds.
History —June 18, 1958, No. 50, p. 88, § 2.