P.R. Laws tit. 25, § 2926
(a) The Puerto Rico National Guard Institutional Trust is hereby authorized to issue refinancing bonds with the purpose of refinancing those bonds that are in effect and outstanding at that time and have been issued under the provisions of this chapter, including the payment of any redemption premium related thereto, and any interest accrued or to be accrued as of the date of redemption or maturity of said bonds, and if the circumstances do so warrant it.
(b) Refinancing bonds authorized to be issued under this section may be sold or exchanged for unexpired bonds issued under this chapter, and if sold, the proceeds thereof may be destined to the purchase, redemption or payment of said outstanding bonds, in addition to any other authorized purpose. Refinancing bonds may be issued as determined by the Board of Directors, at any time on or before the date of maturity or maturities, or the date selected for the redemption of the bonds that are being refinanced. The use of the proceeds of said refinancing bonds, and any other funds available for the payment of principal and accrued interest, and any redemption premium of the bonds that are being refinanced, and, if so provided or permitted in the trust agreement securing the same, may be invested in direct obligations of, or obligations whose principal and interest is secured by the United States of America, and by any other obligation that is rated within the two highest ratings by the recognized bond rating agencies, provided that said obligations are subject to redemption by the holder thereof, at the option of said holder, no later than the respective dates that the principal and accrued interest on said principal are demanded and are sufficient, with other available funds, for the purposes to which they are destined.
History —July 23, 1991, No. 23, § 18.