P.R. Laws tit. 25, § 2923
This Trust is hereby authorized to issue bonds from time to time, for such principal amounts which, in the opinion of the Board of Directors, are needed to provide sufficient funds for the total or partial payment of the cost of any project or projects, and to achieve any of its other corporate purposes, including the payment of interest on the Trust’s bonds, for such period as determined by said Board. It is also empowered to create reserves to secure such bonds and for the payment of such other necessary expenses of [t]he Trust, including incidental costs of the project that are necessary or convenient to execute its corporate purposes.
[(a)] The bonds issued by this Trust shall be payable in whole or in part from the gross or net income or other income derived by the Trust under the clauses of a financing agreement with regard to any project, as provided in the trust agreement or through which the bond issue is authorized. Principal and interest on the bonds issued by the Trust may be secured by encumbering all or part of any income of the Trust, or the assignment of any financing agreement regarding any project or part thereof. The resolution or resolutions authorizing the bond issue, or the trust agreement securing the same, may contain provisions which shall be part of the agreement with the holders of the bonds issued under said resolution or resolutions. Said resolutions and provisions may cover aspects related to the surety and creation of a lien on the income and assets of the Puerto Rico National Guard Institutional Trust; the creation and maintenance of redemption funds and reserves; limitations regarding the purposes for which the proceeds of the bonds may be used; limitations with regard to the issuing of additional bonds; limitations regarding the introduction of amendments or supplements to the resolution or resolutions or the trust agreement; the concession of rights, faculties, and privileges and the imposition of obligations and responsibilities on the trustee under any trust agreement; the operation and maintenance of projects; the fixing of fees, rents and other charges for the use and occupancy of any project; the acquisition of insurance with regard to any project or its operation; the rights, faculties, obligations and responsibilities that shall arise in the event or default of any obligation under said resolution or resolutions or the trust agreement, or with regard to any rights, faculties and privileges conferred on the holders of the bonds as security thereof to increase the bond’s market.
(b) Bonds may be authorized by a resolution or resolutions of the Board of Directors of the Trust, and may be issued in a serie [sic] or series, bear the maturity date or dates of each installment, provided such maturities do not exceed fifty (50) years from their respective dates of issue, and bear interest at rates that do not exceed the maximum rate allowed by law.
The bonds may be payable in the place or places within or outside the Commonwealth; may be of different denominations and issued as coupon or registered bonds; may have registration or conversion privileges; and may be granted, be payable and subject to redemption and payment terms as determined by the Board. Likewise, the replacement of bonds mutilated, destroyed, stolen or lost may be provided; may be authenticated in such a manner and meet those conditions; and may contain those terms and conditions that the resolution or resolutions may provide. The bonds may be sold in public or private sales, at the price or prices fixed by the Board; Provided, however, That the refinancing bonds may be sold or exchanged for outstanding Puerto Rico National Guard Institutional Trust bonds under such terms that respond to its best interests in the opinion of the Board. Nevertheless, the form and tenor thereof and in absence of an express warning on the face of the bond to the effect that it is not negotiable, all Puerto Rico National Guard Institutional Trust bonds, including any coupons belonging thereto, shall have at all times, and shall be understood to have all the characteristics and incidents (including negotiability) of negotiable instruments under the laws of the Commonwealth of Puerto Rico.
(c) Bonds may be issued under the provisions of this chapter without having to obtain the consent of any department, division, joint commission, body, bureau, or agency of the Commonwealth, and without any other procedure, condition or circumstance that is not specifically required by this chapter and by the provisions of the resolution that authorizes said bond issue, or the trust agreement that secures them; Provided, however, That the provisions of §§ 581 et seq. of Title 7, shall apply.
(d) The Puerto Rico National Guard Institutional Trust bonds that are subscribed with the signature of the Trust officials in the discharge of their duties and on the date of their signing, shall constitute valid and unavoidable obligations even when before the delivery and payment of said bonds, any or all of the officials whose signatures or the facsimiles thereof that appear thereon have ceased as such officials of the Trust. The validity of the authorization and issue of the bonds shall not depend on, or be affected in any way by any procedure related to the construction, acquisition, extension or improvement of the project for which the bonds are issued, or by any contract signed with regard to said project. Any trust agreement that secures the bonds may provide for any of said bonds to contain a mention to the effect that it was issued in accordance with the provisions of this chapter and any bond containing such mention under the authority of such trust agreement shall be deemed conclusively that it is valid and has been issued pursuant to the provisions of this chapter. Neither the members of the Board of Directors of the Puerto Rico National Guard Institutional Trust, nor any person who grants the bonds shall be personally accountable for such bonds, nor shall be subject to civil liability for their issue. The Trust is empowered to purchase any bonds issued and outstanding or assumed by it, with any funds available for such purposes.
History —July 23, 1991, No. 23, § 15.