P.R. Laws tit. 13, § 56
The bonds, notes and other obligations to be issued by the Commonwealth of Puerto Rico, the municipalities of Puerto Rico, the political subdivisions and instrumentalities of the Commonwealth of Puerto Rico may be issued at an effective interest rate which, when computed on an actuarial base, does not exceed twelve percent (12%) per annum. The net cost of interest of any bonds, notes or other obligations shall be equal to the interest rate used to discount future payments made by the issuer in relation to such bonds, notes and other obligations, including the payment of principal and interest and any premium required in their mandatory redemption, but excluding any voluntary redemption which matches the sum of the present worth of these payments to the proceeds of such bonds, notes and other obligations to the issuer. It is presumed that the interest will be compounded semiannually. The proceeds of the issue of bonds, notes and other obligations shall be the amount received by the issuer less payments made by him for the underwriting and placement of such bonds, notes and other obligations.
Provided, That the annual amortization requirements established by Act No. 269 of May 11, 1949, which creates the Redemption Fund for the Public Improvements Debt, and by Act No. 39 of May 13, 1976, establishing the Special Fund for the Amortization and Redemption of General Obligations Evidenced by Bonds and Notes shall apply to all issues of bonds and notes of the Commonwealth of Puerto Rico issued under the provisions of this section.
History —Apr. 17, 1972, No. 14, p. 26, § 1; Dec. 10, 1974, No. 1, Part 2, p. 733, § 1; Nov. 11, 1975, No. 3, p. 925, § 1; Feb. 14, 1977, No. 1, p. 3, § 1; Mar. 21, 1978, No. 4, p. 21; June 3, 1980, No. 83, p. 232, § 1; June 8, 1981, No. 5, p. 81, § 1; Aug. 13, 1982, No. 10, p. 238, § 1; Oct. 10, 1985, No. 3, p. 855, § 1.