P.R. Laws tit. 25, § 2919
In the performance of any project under the provisions of this chapter, the Puerto Rico National Guard Institutional Trust shall be guided by, and shall observe the following criteria and requirements; Provided, That its determination with regard to compliance with said criteria and requirements shall be final and conclusive:
(a) No financing agreement shall be subscribed in regard to a project with persons or entities that are not financially accountable and are not fully qualified and ready to meet their responsibilities under the financing agreement, including the obligation to make payments in the amounts and on the dates required; to operate, repair, and maintain the project on their own account; pay the costs and expenses incurred by the Puerto Rico National Guard Institutional Trust with regard to the project; comply with the purposes of this chapter, and perform any other duties that may be imposed on them under the terms of the financing and assistance agreement.
(b) The necessary provisions shall be made for the payment of principal and interest on the bonds, and to create and maintain the reserves required therefor, if any, that the Puerto Rico National Guard Institutional Trust may determine, and to pay the costs incurred with regard to the project.
(c) The necessary provisions shall be made for the payment of educational, annuity, life and funeral insurance expenses. Life insurance and funeral expenses shall be limited to active members and persons eligible to the annuities upon attaining the age of fifty-five (55) years and until they attain the age of sixty (60) years.
(d) The benefits granted by this chapter shall only cover those active members of the Puerto Rico National Guard and retirees who have not yet attained the age of sixty (60) years. Funeral expense benefits shall be three thousand dollars ($3,000) or the cost of the funeral, whichever is less. The annuity benefits shall commence with a minimum monthly annuity of one hundred dollars ($100) at its source, and shall cover the attained age of fifty-five (55) years up to sixty (60) years of eligible National Guard retirees.
(e) The Board of Directors of the Puerto Rico National Guard Institutional Trust may increase the original benefits granted under subsection (c) of this section from time to time, to cover the effects of inflation, provided that an actuarial study is carried out and that the projected assets of the respective funds, excluding the Program’s first five (5) years of operation, [are] at least equivalent to a sum equal to the initial resources of the respective funds, in which projection, an inflation rate of three percent (3%) per annum is included.
History —July 23, 1991, No. 23, § 11.