P.R. Laws tit. 23, § 5059

2019-02-20 00:00:00+00
§ 5059. Agreement of the Commonwealth of Puerto Rico with the bondholders

The Commonwealth of Puerto Rico hereby agrees with the holders of any bonds issued under this chapter and with the persons or entities that establish contracts with the Corporation in accordance with the provisions of this chapter, that it shall not limit or alter the rights herein conferred onto the Corporation until said bonds and the interest thereon are totally paid off and said contracts are totally complied with and executed by the Corporation; Provided, however, That none of the provisions herein shall affect or alter said limitation if adequate measures for the protection of said bondholders of the Corporation or those who have entered into such contracts with the Corporation are provided by law. The Corporation, as agent of the Commonwealth of Puerto Rico, is hereby authorized to include this agreement by the Commonwealth in the aforementioned bonds or contracts. However, nothing established in this section shall have the effect of altering what is provided in § 5039 of this title, which sets forth that the debts and obligations of the Corporation shall not be debts or obligations of the Commonwealth of Puerto Rico nor of its political subdivisions, nor shall they have the effect of encumbering the loan margin of the Commonwealth of Puerto Rico.

History —Sept. 24, 2004, No. 489, § 30.