P.R. Laws tit. 25, § 2924
At the discretion of the Board of Directors, any bonds issued under the provisions of this chapter may be secured by a trust agreement by and between the Puerto Rico National Guard Institutional Trust and a corporate trustee, which may be a trust company located within or outside of the Commonwealth of Puerto Rico.
It shall be lawful for any bank or trust company incorporated under the laws of the Commonwealth of Puerto Rico, the United States or any state of the United States, that acts as depositary of the proceeds of the bonds, income or other moneys, to grant such indemnity bonds or offer as security those assets required by the Puerto Rico National Guard Institutional Trust. In addition to the above, the trust agreement may contain all of those provisions that the Board of Directors of the Trust deems are reasonable and proper for the security of the bondholders.
Regardless of what is established in the Civil Code of Puerto Rico, the trust agreements granted between this Trust and a corporate trust, shall determine that the terms and conditions of the bond issues shall be met by granting affidavits. The trust agreements thus granted shall be lawful, valid and binding, and the funds that are deposited in said trusts shall be pignorated to the Trust at all times, and said funds shall not be attachable.
History —July 23, 1991, No. 23, § 16.