P.R. Laws tit. 13, § 62
The Commonwealth of Puerto Rico hereby guarantees the payment of principal of and interest on notes, debentures, bonds, or other obligations for money taken on loan by the Government Development Bank for Puerto Rico and those of other government instrumentalities guaranteed by the Bank in a total amount not exceeding two billion dollars ($2,000,000,000) of such notes, debentures, bonds, or other obligations or guarantees outstanding at any time, and to be issued, from time to time, for any of their authorized purposes, whose maturity date shall not be later than thirty (30) years from their date or dates of issue. The notes, debentures, bonds, or other obligations and guarantees covered under this Commonwealth guarantee shall be those specified by the Secretary of the Treasury and the Government Development Bank for Puerto Rico, and such notes, debentures, bonds, or other obligations or guarantees, shall bear on its face a statement of the Commonwealth’s guarantee. Beginning on September 1st, 2014, the guarantee of the Commonwealth shall not be extended to any note, debenture, bond, or other additional obligation that after such date is guaranteed by the Government Development Bank for Puerto Rico in favor of other government instrumentalities.
The Secretary of the Treasury, with the advice of the Government Development Bank for Puerto Rico, is hereby authorized to establish, in particular cases, special terms and conditions, whereby the holder of an obligation guaranteed under this section is entitled to make a claim under the guarantee of the Commonwealth of Puerto Rico. If the Secretary of the Treasury prescribes such special terms and conditions, the same shall be included in a guarantee executed by the Secretary of the Treasury.
Subject to the special terms and conditions, if any, negotiated by the Secretary of the Treasury in relation to the guarantee of the Commonwealth of Puerto Rico that are contained in the guarantee executed by the Secretary of the Treasury, if at any time the revenues or income and any other monies of the Bank or any public instrumentality whose notes, debentures, bonds, or other obligations are guaranteed by the Bank in accordance with this section, that are pledged to the payment of the principal of and interest on such notes or obligations, are not sufficient to pay such principal and interest as the same become due, the Secretary of the Treasury shall withdraw from any unencumbered funds in the Treasury of Puerto Rico such sums as may be necessary to cover the deficiency in the amount required for the payment of such principal and interest, and shall direct that the sums so withdrawn be applied to such payment. The full faith and credit of the Commonwealth of Puerto Rico are hereby pledged to such payment.
History —May 9, 1975, No. 12, p. 26, § 1; May 13, 1976, No. 40, p. 109, § 1; July 12, 1986, No. 127, p. 401, § 2; Feb. 13, 2014, No. 24, § 8.