P.R. Laws tit. 23, § 5057
In addition to the powers granted to the Corporation by this chapter:
(a) The Corporation is hereby authorized to issue bonds from time to time in the amount of principal that, in the judgment of the Corporation, is necessary to provide sufficient financial resources for the total or partial payment of the cost of any project or projects; for the payment of the interest on bonds of the Corporation for term it may determine; for the creation of reserves to guarantee said bonds; and for the payment of other expenses of the Corporation, including the project costs that are incidental, necessary, or convenient to carry out its purposes or exert its corporate powers, with the exception of the regular operating expenses of the Corporation. Bonds issued by the Corporation may be payable from the total amount or part of the gross or net income and other income earned by the Corporation under the clauses of a financing contract related to any project, all as provided in the trust agreement whereby the bond issue is authorized. The principal and interest on bonds issued by the Corporation may be guaranteed by encumbering, in whole or in part, any income of the Corporation, including the use of collateral that is not exempt at source, without affecting the exempt nature of the bonds issued, and may be guaranteed by the assignment of any financing contract related to any project or part thereof. The resolution or resolutions authorizing the bond issue or the trust agreement guaranteeing the same may contain provisions that shall be part of the contract with the holders of the bonds issued under said resolution or resolutions, with regard to a guarantee and the creation of a lien on the income and assets of the Corporation; to the creation and maintenance of redemption and reserve funds; to the limitations related to the purposes for which the proceeds of the bonds may be used; to limitations regarding additional bond issues; to limitations regarding the introduction of amendments or supplements; to the resolution or resolutions or the trust agreement; to the granting of rights, powers, and privileges and to the imposition of obligations and responsibilities on the trustee under any trust agreement; to the operation and maintenance of projects; to the fixing of fees, rent, and other charges for the use and occupation of any project or its operation; to the rights, powers, obligations, and responsibilities that shall arise in the event of noncompliance with any obligation under said resolution or resolutions or trust agreement, or regarding any rights, power, and privileges conferred on the holders of the bonds as guarantee thereof to increase the salability of the bonds. The bonds issued by the Corporation and the rent, interest, or income derived therefrom shall be exempt from any tax or levy imposed by the Commonwealth of Puerto Rico, its agencies and municipalities, including, but not limited to the alternative basic tax imposed by § 30062 of Title 13.
(b) The bonds may be authorized by resolution or resolutions of the Corporation. They may be in one (1) or more series, have a date or dates, become due within a term or terms that do not exceed fifty years as of their respective dates of issue, and earn interest at a rate or rates that do not exceed the maximum rate allowed by law at that time. The bonds may be payable at a place or places, whether within or outside of the Commonwealth of Puerto Rico, of a denomination or denominations and in a form, whether coupons or registered; have register or conversion privileges; be executed in such a manner, payable by means of payment and subject to redemption terms, with or without premium; provide for the replacement of mutilated, destroyed, stolen or lost bonds; authenticated in a manner and comply with those conditions and contain those terms and conditions as the resolution or resolutions may provide. The bonds may be sold in public or private sales for the price or prices determined by the Corporation; Provided, however, That the financing bonds may be sold or exchanged for outstanding Corporation bonds under the terms that, in the opinion of the Corporation, best serve its interests. Notwithstanding the form and according thereto, and in the absence of a stated disclaimer on the face of the bond to notify that it is not negotiable, all the bonds of the Corporation, including any coupons pertaining thereto, shall have at all times, and it shall be understood that they have, all the characteristics and incidents (including negotiability) of negotiable instruments under the laws of the Commonwealth of Puerto Rico.
(c) The proceeds of the sale of the bonds of each issue shall be used for the purposes established by the Board of Directors of the Corporation at the time of authorizing such issue, among which may be defraying the cost of the project or projects, or part or parts thereof, for which the aforementioned bonds have been issued, as applicable, and shall be disbursed in the form and under the restrictions, if any, that the Corporation sets forth in the Trust Agreement that guarantees said bonds. If the proceeds of the bonds of any issue turns out to be less than the cost, due to any increase in construction costs, an error in the estimates, or any other reason, additional bonds may be issued in the same manner to cover the amount of said deficiency, and unless otherwise provided in the Trust Agreement, such bonds shall be deemed to belong to the same issue and be paid from the same funds without giving any preference or priority to the bonds originally issued.
(d) Bonds may be issued under the provisions of this chapter without obtaining consent from any department, division, commission, board, body, bureau, or public agency of the Commonwealth of Puerto Rico, with the exception of the Government Development Bank for Puerto Rico (which shall intervene in cases in which the laws in effect expressly so provide, or at the request of the Corporation or the Trust), without any other procedure or any condition or matter other than the procedures, conditions and matters specifically required by this chapter and the provisions of the resolution authorizing the issue of said bonds or the trust contract that guarantees them; Provided, however, That the provisions of §§ 581-595 of Title 7 shall apply.
(e) The bonds of the Corporation that are signed by the officers of the Corporation in the exercise of their office on the date of the signing thereof shall constitute valid and unavoidable obligations, even when prior to the delivery and payment of such bonds any or all of the officers whose signatures or facsimiles of signatures appear thereon have ceased to be officers of the Corporation. The validity of the authorization and issue of the bonds shall not depend upon or be in any way affected by any procedure concerning the construction, acquisition, extension or improvement of the project for which the bonds are issued, or by any contract entered into with respect to said project. Any trust contract that guarantees the bonds may provide for any of said bonds to include an annotation stating that it was issued pursuant to the provisions of this chapter and any bond that includes said annotation under the authority of such trust contract shall be considered to be final, valid and issued in accordance with the provisions of the law. Neither the Corporation nor any person executing the bonds shall incur personal liability for such bonds, nor shall they be subject to any civil liability for the issue of said bonds. The Corporation is hereby authorized to purchase any outstanding bonds issued or assumed by it with any funds available for such purpose.
History —Sept. 24, 2004, No. 489, § 28; renumbered as § 31 and amended on Aug. 14, 2013, No. 104, §§ 11, 20.