P.R. Laws tit. 13, § 63c
(a) The Secretary of the Treasury shall specify in the resolution authorizing the issue of the notes the specific taxes or revenues in anticipation of which the notes are issued. All taxes and revenues thus specified and received after the issue of the notes and before the close of the fiscal year in which the notes were issued, except those taxes required to be deposited in the fund known as the “Special Fund for the Amortization and Redemption of General Obligations Evidenced by Bonds and Notes” and those taxes and revenues that have been assigned pursuant to existing legislation or that may be assigned under any future legislation that does not affect or include, or result in the reduction of, any of the taxes and revenues pledged for the repayment of any note issue under this Act and outstanding on the date such future legislation is enacted, shall be paid to and deposited in a special fund known as the “Special Tax and Revenue Anticipation Notes Redemption Fund” (hereinafter the “Special Fund”) on the dates specified in the authorizing resolution, until the amount so deposited in said fund is sufficient to cover the amounts required to be paid as provided in the authorizing resolution or, if such resolution does not provide otherwise, to pay the principal and redemption premium, if any, and the interest and any other obligation thereon, as they become due.
(b) All taxes and revenues as received by the Secretary on behalf of the Commonwealth of Puerto Rico, which are required to be deposited in the Special Fund in accordance to the provisions of §§ 63—63h of this title, including, but not limited to, all monies so deposited in the Special Fund, are irrevocably pledged in favor of the holders of such notes and, subject to the provisions of the authorizing resolution, devoted to the payment of the principal and redemption premium, if any, as well as the interest and any other obligations thereon until all obligations on the notes are paid in full. Such irrevocable pledge shall be valid and binding from the time the pledge is made and all taxes and revenues so pledged and received by the Secretary shall be immediately subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of the irrevocable pledge shall be valid and binding against all parties to any kind of claim, whether extra-contractual, contractual, or otherwise against the Commonwealth, whether or not such parties are notified. The irrevocable pledge created pursuant to this section shall be automatically perfected without the need for a public, recorded or notarized document or any other act and is intended to be and shall be a statutory lien. This pledge of taxes and revenues is subject to the application of such taxes and revenues in accordance with the provisions of Section 8 of Article VI of the Constitution of the Commonwealth of Puerto Rico.
(c) The Special Fund shall be a separate fund. The Secretary of the Treasury is hereby authorized to have the Special Fund held by a third party for the exclusive benefit of the holders of the notes issued in accordance with §§ 63—63h of this title, including a trustee acting in accordance with the terms of a trust established for such purposes.
(d) All the monies in the Special Fund that do not exceed the amount required for such purpose shall be used to pay the principal and redemption premium, if any, and the interest on the notes or any note issued to renew said notes, and shall not be used for any other purpose. The full faith, credit and taxing power of the Commonwealth of Puerto Rico are not pledge for the payment of notes issued under the provisions of §§ 63—63h of this title, and said notes shall only be payable from the funds required to be deposited in the Special Fund provided for in this section.
History —June 26, 1987, No. 1, p. 591, § 4; Oct. 7, 2014, No. 172, § 2.