P.R. Laws tit. 9, § 2012a
(a) The following terms as used in this section shall have the meaning stated below:
(1) Excise tax on crude oil allocated to the Authority.— Shall have the meaning provided in subsection (b)(2)(A) of this section.
(2) BANs of the Authority.— Means the Bond Anticipation Notes 2013A of the Authority issued on August 29, 2013, as amended and supplemented.
(3) Code.— Means the Internal Revenue Code for a New Puerto Rico approved under §§ 30011 et seq. of Title 13.
(4) Effective date of the lien.— Means the date on which the following three (3) requirements are met: (A) all liens on income, taxes, and fees earmarked for the Authority, including those designated under Acts No. 30-2013 and 31-2013, to collateralize the BANs of the Authority (as a result of the payment of said BANs or with the consent of the holders of said BANs) as well as any outstanding debt of the Authority with the Government Development Bank for Puerto Rico are satisfied; (B) all outstanding loans and obligations that the Authority currently has with the Government Development Bank for Puerto Rico and the Authority’s BANs have been repaid or transferred from the Authority to the Infrastructure Financing Authority; Provided, That it shall not be necessary to transfer all of said loans and obligations if so agreed by the Authority and the holders of a majority in aggregate principal amount of outstanding senior bonds under the Resolution of 1998, and in accordance with the provisions of said resolution, and (C) the Government Development Bank for Puerto Rico has received in the aggregate at least $1 billion from one or more transactions from refinancing bonds (as said term is defined in § 1923 of Title 3). The President of the Government Development Bank for Puerto Rico shall certify the date on which these three (3) requirements are met and said certification shall be filed with the Office of the Secretary of the Senate and the Office of the Clerk of the House of Representatives and shall be published on the website of the Government Development Bank for Puerto Rico.
(5) Effective date of the transfer.— Means the date on which the following two (2) requirements are met: (A) all liens on income, taxes, and fees earmarked for the Authority, including those designated under Acts No. 30-2013 and 31-2013, to collateralize the BANs of the Authority (as a result of the payment of said BANs or with the consent of the holders of said BANs) are satisfied, as well as any outstanding debt of the Authority with the Government Development Bank for Puerto Rico; (B) all outstanding loans and obligations that the Authority currently has with the Government Development Bank for Puerto Rico and the Authority’s BANs have been repaid or transferred from the Authority to the Infrastructure Financing Authority; Provided, That it shall not be necessary to transfer all of said loans and obligations if so agreed by the Authority and the holders of a majority in aggregate principal amount of outstanding senior bonds under the Resolution of 1998, and in accordance with the provisions of said resolution. The President of the Government Development Bank for Puerto Rico shall certify the date on which these two (2) requirements are met and said certification shall be filed with the Office of the Secretary of the Senate and the Office of the Clerk of the House of Representatives and shall be published on the website of the Government Development Bank for Puerto Rico.
(6) Pledged revenues.— Means any income, taxes, and fees pledged under clauses (1), (2), and (3) of subsection (b) of this section.
(7) Revenues derived from the excise tax on crude oil allocated to the Authority.— Means the excise tax on crude oil allocated to the Authority and any other gross revenues derived from an excise tax on crude oil, partially finished and finished oil by-products, or any other hydrocarbon blend subject to the lien established in subsection (b)(3) of this section.
(8) Resolution of 1968.— Means Resolution 68-18 approved by the Authority on June 13, 1968, as supplemented and amended.
(9) Resolution of 1998.— Means Resolution 98-06 approved by the Authority on February 26, 1998, as supplemented and amended.
(b) Effective on or after the effective date of the lien, pledged revenues are hereby encumbered and pledged as collateral in favor of and for the benefit of holders of bonds issued under the Resolution of 1968 and the Resolution of 1998, as follows:
(1) In the case of the holders of bonds issued under the Resolution of 1968:
(A) The gross revenues derived from the excise tax of $0.16 per gallon of gasoline and the excise tax of $0.04 per gallon of gas oil and diesel oil imposed by the Commonwealth of Puerto Rico and allocated to the Authority (after any deduction for amounts reimbursed under §§ 31669 and 31670 of Title 13) under § 31626 of Title 13, and
(B) the gross revenues derived from annual motor vehicle license fee of $15 imposed by the Commonwealth of Puerto Rico and allocated to the Authority in accordance with Act No. 9 of August 12, 1982 of the Legislative Assembly of Puerto Rico.
(2) In the case of the holders of bonds issued under the Resolution of 1998:
(A) The gross revenues derived from the excise tax on crude oil, partially finished and finished oil by-products, or any other hydrocarbon blend, in the amount of six dollars ($6.00) per barrel or fraction imposed under § 31627 of Title 13 and allocated to the Authority under § 31751 of Title 13 (excise tax on crude oil allocated to the Authority);
(B) taxes and fees identified in clause (1) of this subsection that are available and serve as collateral for the bonds issued under the Resolution of 1998, in accordance with the terms thereof, after the application of said revenues as provided in the Resolution of 1968.
(C) motor vehicle license fees in effect on the date of approval of this act imposed by the Commonwealth of Puerto Rico under §§ 5681 and 5682 of Title 9, as amended by Act No. 30-2013 of the Legislative Assembly of Puerto Rico, also known as the “Vehicles and Traffic Act”, and allocated to the Highway and Transportation Authority under Act No. 30-2013; and
(D) all excise taxes on cigarettes, up to twenty (20) million dollars per fiscal year, imposed by the Commonwealth of Puerto Rico and allocated to the Authority under Act No. 31-2013 of the Legislative Assembly of Puerto Rico.
(3) In the case of the holders of the bonds issued under the Resolution of 1968 and the Resolution of 1998, all other income, taxes, and fees allocated in the future to the Authority, if the Authority pledges such amounts as collateral for any debt or obligation, in which case a first priority security interest shall be created on said income, taxes, and fees to serve as collateral for the payment of the principal of and interest on bonds issued under (A) the Resolution of 1968, if such other income, taxes, and fees are those of the type listed in clause (1) of this subsection, be it understood that said income, taxes, and fees shall be available and serve as collateral for the bonds issued under the Resolution of 1998, in accordance with the terms thereof, after the application of said income, taxes, and fees as provided in the Resolution of 1968, and (B) under the Resolution of 1998, in the case of any other type of income, taxes, and fees. If the Authority does not create a lien on said income, taxes, and fees that are to be allocated to the Authority in the future in favor of any party, then such revenues may be used for any allowed purpose.
(c) Subject to the provisions of Section 8 of Article VI of the Constitution of the Commonwealth of Puerto Rico, the liens created in subsection (b) of this section shall constitute a first priority security interest against said pledged revenues and may be enforceable by the holders and insurers of bonds issued under the Resolution of 1968 and the Resolution of 1998, respectively. It shall be understood that the Authority has assigned and pledged its right to, title, and interest on Pledged Revenues to collateralize such bonds and, in benefit of the holders and insurers thereof, and take any necessary action to document and enforce said assignment or pledge. The assignment of a first priority security interest provided in subsection (b) of this section shall be a statutory lien (and not a property lien) effective by the operation of law and shall not require a property lien to become effective.
(d) First priority security interest created under subsection (b) of this section and other liens created by the Authority to secure any obligations thereof shall be valid and binding without the need to be filed or recorded. Pledged revenues and other pledged income shall be subjects to the liens and pledges provided in subsection (b) of this section without physical delivery of said income, taxes, and fees or further act, registration or perfection of any kind, and subject only to the provisions of Section 8 of Article VI of the Constitution of the Commonwealth of Puerto Rico, such liens shall be valid and binding as against all parties having claims of any kind in tort, in contract, or otherwise against the Authority or the Commonwealth of Puerto Rico, irrespective of whether such parties have notice thereof.
(e) Notwithstanding the provisions of any Act to the contrary, effective on or after the effective date of the lien, the rate or amount of income, taxes, and fees established to be collected on account of pledged revenues shall not be reduced or eliminated, nor such income shall be transferred to an entity other than the Authority; the Commonwealth of Puerto Rico hereby agrees, for the benefit of the holders of bonds issued under the Resolution of 1968 and the Resolution of 1998, not to reduce, eliminate, or transfer such income, taxes, or fees. For purposes of clarification, the agreement made under this section shall not apply to the excise tax imposed under § 31627a of Title 13.
(f) The Commonwealth of Puerto Rico agrees not to take any legal action that would defeat, diminish, impair or adversely affect the liens created under this chapter.
(g) Subject to the provisions of the Resolution of 1968 and the Resolution of 1998, as the case may be, the agreements of the Commonwealth of Puerto Rico provided in subsections (e) and (f) of this section are for the benefit of (1) the holders and insurers of bonds issued by the Authority under the Resolution of 1968 and may be enforceable by the holders of a majority in aggregate principal amount of such outstanding bonds under the Resolution of 1968, and in accordance with the terms thereof, and (2) the holders and insurers of bonds issued by the Authority under the Resolution of 1998 and may be enforceable by the holders of a majority in aggregate principal amount of such outstanding bonds under the Resolution of 1998, and in accordance with the terms thereof.
(h) The Secretary shall establish a payment mechanism whereby any pledged revenues (except for the revenues derived from the excise tax on crude oil allocated to the Authority, for which a payment mechanism shall be established as provided in § 31751(g) of Title 13) shall be paid, as soon as reasonably practicable after being collected by the Commonwealth of Puerto Rico and/or the Secretary or its authorized agents, directly to the trustee or the representative of the holders of the bonds issued under the Resolution of 1968 and the Resolution of 1998, and said mechanisms shall be effective on the effective date of the lien, except that to the extent that such obligation is altered under the agreement entered into between the Authority and the holders of a majority in aggregate principal amount of outstanding bonds under the Resolution of 1998 and pursuant to their own terms.
(i) Although subject to the provisions of Section 8 of Article VI of the Constitution of the Commonwealth of Puerto Rico, Pledged Revenues that collateralize the bonds issued under the Resolution of 1968 and the Resolution of 1998 are taxes imposed by the Commonwealth of Puerto Rico and allocated to the Authority to finance transportation and traffic facilities and systems.
History —June 23, 1965, No. 74, p. 158, added as § 12A on Jan. 15, 2015, No. 1, § 2.01; Mar. 13, 2015, No. 29, § 1.