P.R. Laws tit. 23, § 560
(a) The Port Commission is hereby authorized to issue, at one time or from time to time, revenue bonds of the Port Commission for the purpose of acquiring or constructing any undertaking. The bonds of each issue shall bear such date, shall mature at such time or times not exceeding forty (40) years from their respective dates, and shall bear interest at such rate or rates not exceeding six percent (6%) per annum, as may be determined by the Board of Commissioners and may be declared or become due at such time before the maturity date thereof, at the option of the Board of Commissioners, at such price or prices and under such terms and conditions as may be fixed by the Board of Commissioners prior to the issuance of bonds. The Board of Commissioners shall determine the form and manner of the execution of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places for the payment of principal and interest, which might be in the office of the Secretary of the Treasury or in any bank or trust company within or without the Commonwealth. Whenever a bond or coupon bears the signature or facsimile signature of any officer who has ceased in office before the delivery of said bond, such signature or facsimile shall, nevertheless, be valid and sufficient for all purposes as if such officer had remained in office until such delivery. Notwithstanding any other provision of this chapter or recital of any bonds issued pursuant to the provisions of this chapter, all these bonds shall be considered negotiable instruments under the laws of Puerto Rico. The bonds may be issued in coupon form or registered, or both, as determined by the Board of Commissioners, and provision shall be made for the registering of any coupon bonds only as regards principal, as well as for the registering thereof as regards principal and interest, and for the reconversion into coupon bonds registered as regards principal and interest. The Board of Commissioners may sell such bonds in such manner, either at public or private sale, and at such price, as it may determine most desirable to the best interests of the Port Commission, but such sale shall not be done at a price so low as to require the interest paid on the money so received [to] be at a rate higher than six percent (6%) per annum, computed in relation to the absolute maturity or maturities of the bonds according to the normal schedule of bond values, excluding, however, from such computations, the amount of any premium payable upon the redemption of any bonds before maturity.
(b) The proceeds of each bond issue shall be used exclusively for the purpose for which such bonds shall have been authorized, and shall be disbursed in such form and under such restrictions, if any, as the Board of Commissioners may provide in the resolution authorizing the issuance of such bonds or in the trust contract securing same. Unless otherwise provided in the resolution authorizing the bonds or in any trust contract securing such bonds, if the proceeds of said bonds is, by an erroneous computation or for any other cause, less than said cost, additional bonds may be issued in identical manner to provide the amount of such deficit and the same shall be considered as of the same issuance and shall be payable from the same fund without preference or priority as regards the bonds originally issued for the same purpose.
(c) The resolution providing for the issuance of revenue bonds, and any trust contract securing said bonds, may further contain such limitations on the issuance of additional revenue bonds as the Board of Commissioners may determine, and said additional bonds may be issued under such restrictions and limitations as said resolution or trust contract may specify.
(d) Before the preparation of the definitive bonds, the Port Commission may, under similar restrictions, issue interim receipts or provisional bonds with or without coupons, exchangeable for definitive bonds when said bonds have been issued and are ready for delivery. The Board of Commissioners may provide for the replacement of any bonds that may be mutilated, destroyed, or lost.
(e) The revenue bonds issued in accordance with the provisions of this chapter shall not constitute a debt of the Commonwealth nor shall pledge the good faith and credit of the Commonwealth, and said bonds shall be payable solely from the funds provided therefor, and a recital to that effect shall be included in the text of the bonds.
(f) The Board of Commissioners may fix and revise from time to time the rentals and other charges for the services or facilities to be furnished by any undertaking for which any bonds are issued pursuant to the provisions of this chapter, or for the right of use of any undertaking, or for receiving any of said services. Any rentals and other charges pledged for the payment of any such bonds shall be fixed and revised so that the revenues therefrom received by the Port Commission, jointly with any other funds available, will be at least sufficient at all times to meet the maintenance, repair and operation cost of said undertaking whose revenues are pledged in accordance with these provisions, including reserves for such purposes, and to pay the principal of and interest on the bonds for whose payment said revenues are pledged, and to provide the pertinent reserves.
(g) Any or each revenue bond issue authorized in accordance with the provisions of this chapter may, in the discretion of the Board of Commissioners, be secured by a trust contract by and between the Port Commission and a corporate trustee, that may be any trust company or bank having the powers of a trust company within or without the Commonwealth. The resolution authorizing the issuance of the bonds or said trust contract may pledge all or any part of the revenues to be received by any undertaking, and any other funds at any time received by the Port Commission, which the Board of Commissioners may determine are available therefor, and may contain such provisions for the protection and exercise of the rights and remedies of the bondholders as are reasonable and proper and not in violation of the law, including stipulations setting forth the duties of the Port Commission in relation to the acquisition or construction of such undertaking, and in relation to the maintenance, repair, operation and insurance of the undertaking, the establishing and revising of rentals and other charges, the custody, protection and application of all moneys, and the employ of consulting engineers and architects in relation to said acquisition, construction or operation. Such resolution or trust contract may recite the rights and remedies of the bondholders and the trustee, if any, and may limit the individual right of action of the bondholders. Such resolution or trust contract may contain such other provisions which, in addition to the foregoing, the Board of Commissioners may consider reasonable and proper for the security of the bondholders.
(h) The Board of Commissioners is hereby authorized to dispose of the proceeds of the sale of the bonds and to provide for the manner of payment of the bonds from the revenues of any undertaking and from any other funds available to any official, board or depository that the Board of Commissioners may have designated for the custody of such funds, and shall further have authority to set the disbursement procedure, fixing such protection and restrictions as it may deem convenient. Expenses incurred to carry out the provisions of said resolution or trust contract may be considered as part of the operation cost.
(i) All pledges made on the rentals and other funds pursuant to the provisions of this chapter shall be valid and binding from the time such pledges are made. All such rentals, and other funds thus pledged and hereafter received by the Port Commission shall immediately be subject to the lien on such pledges without any physical delivery thereof or additional action, and the lien on said pledges shall be valid and binding against other parties having civil claims of whatever nature for damages, or contractual or of any other nature, against the Port Commission or the Board of Commissioners, regardless of whether said parties have been notified.
(j) All moneys received pursuant to the power conferred in this chapter shall be considered as trust funds to be withheld and applied solely as provided in this chapter. The resolution authorizing the bond issue or trust contract securing said bonds shall provide that any officer, bank, trust company or fiscal agent to whom or to which said moneys are paid shall act as trustee of said moneys and shall withhold and apply same for the purposes set forth, subject to the regulations provided by the resolution or trust contract.
(k) Any holder of revenue bonds issued pursuant to the provisions of this chapter, or of any coupons pertaining thereto, and the trustee under any trust contract, except to the extent the rights herein conferred may be limited by the resolution authorizing the issuance of said bonds or said trust contract, may, in law or equity, sue, bring action, institute a mandamus or any other proceeding to protect and enforce any and all the rights under the laws of the Commonwealth or conferred by the provisions of this chapter or according to said resolution or trust contract, and may enforce performance of all the duties required by this chapter or by said resolution or trust contract to be performed by the Port Commission or the Board of Commissioners, or by any officer thereof, including the fixing, imposition and collection of rentals and other charges.
(l) The Board of Commissioners is hereby authorized to issue from time to time conversion revenue bonds of the Port Commission for the purpose of funding any revenue bonds of the Port Commission heretofore or hereafter issued in connection with any undertaking, including the payment of any redemption premium therefor and any interest accrued or to be accrued up to the redemption date of such bonds. The Board of Commissioners is hereby further authorized to issue, from time to time, conversion revenue bonds of the Port Commission for the combined purpose of: (1) funding any revenue bonds or refinancing bonds of the Port Commission heretofore or hereafter issued in connection with any undertaking, including the payment of any redemption premium and any interest accrued or to be accrued up to the redemption date of such bonds, and (2) to pay in full or in part the cost of acquisition or construction of any additional undertaking. The issuance of such bonds, the maturity thereof and other pertinent details, the rights and remedies of bondholders, and the rights, powers, privileges, duties and obligations of the Port Commission and of the Board of Commissioners with regard thereto, shall be governed by the above-mentioned provisions of this chapter insofar as applicable.
(m) The Board of Commissioners is hereby authorized to accept, in the name of the Port Commission, grants of money or materials or property of any kind for any undertaking, from the Commonwealth of Puerto Rico or the United States of America or any agency thereof, or from any private agency, corporation or individual, under the terms and conditions that may be imposed by the Commonwealth or the United States of America or any agency thereof, or by said private agency, corporation or individual. The bonds issued pursuant to the provisions of this chapter and the income derived therefrom shall at all times be exempt from the payment of income tax.
History —May 18, 1959, No. 10, p. 46, § 9.