P.R. Laws tit. 7, § 607
It is hereby required that all departments, agencies, instrumentalities and public corporations of the Commonwealth of Puerto Rico identified in column A of § 607a of this title and their successors, negotiate and execute with the Government Development Bank for Puerto Rico, the agreements, promissory notes or finance contracts necessary to establish, recognize and formalize, restructure and/or refinance the advances, repayment pledges, obligations and/or loans of said government institutions with the Government Development Bank itemized in column B of § 607a of this title. The effectiveness of said agreements, promissory notes or finance contracts shall be retroactive to July 1, 2001. Said advances, pledges, obligations and loans may be restructured and refinanced more than once, if necessary. Each of these government entities are further authorized to pay or to include as part of the principal on their advances, pledges, obligations and/or loans all expenses related to said restructuring and/or refinancing, including, but without it being understood as a limitation, the expenses incurred by said government entity or the Government Development Bank to carry out said restructuring or refinancing or when disposing of said obligations and loans, the expenses concerning any bond issue relative to the placement of said obligations and loans, including the bonds of the Puerto Rico Public Financing Corporation, the amounts that may be necessary to deposit in the reserve accounts established to assure the repayment of any of said bonds, the premiums for any financial guarantee, bond insurance or letter of credit obtained, and all interest accrued to the date of the approval of this act. Said restructured or refinanced obligations shall provide that, in addition to the payment of the principal and the interest, these government entities are under the obligation to make the payments that are necessary pursuant to the interest rates swaps related to Puerto Rico Public Financing Corporation bonds, payments for termination or breach of investment contracts or interest rates swaps related to said bonds, payments required to be deposited in any reserve account for the benefit of said bonds, payments of redemption premiums on said bonds, payments to any trustee of said bonds, payments to any provider of a letter of credit or liquidity facility for the benefit of all or part of said bonds and any other payments payable under said bonds or pursuant to the trust agreement for said bonds. The total annual payment of the principal, the interest and any other payment under said advances, pledges, obligations and loans shall not exceed two hundred twenty-five million dollars ($225,000,000).
History —Dec. 17, 2001, No. 164, § 1.