P.R. Laws tit. 7, § 607g
After the effective date of this act, the Government Development Bank for Puerto Rico or any subsidiary thereof is hereby banned from granting loans to any government entity other than a Bank’s subsidiary, whose source of repayment, as determined by the Board of Directors of the Government Development Bank for Puerto Rico or the Board of Directors of any of the Bank’s subsidiaries, as applicable, are future General Fund budget appropriations, without the Legislative Assembly’s approval of such appropriations. Notwithstanding said prohibition, the Government Development Bank for Puerto Rico and the subsidiaries thereof may, from time to time, lend and collectively hold in their portfolios up to one hundred million dollars ($100,000,000) in one or more loans whose source of repayment are future General Fund budget appropriations, without these having been approved by the Legislative Assembly, provided that the Bank obtains a written authorization of the Governor and the Director of the Office of Management and Budget. Budget appropriation bills for the repayment of such loans shall be submitted for the Legislative Assembly’s consideration in the legislative session following the granting of the loan. Once the budget appropriation is approved, the amount of such loan shall be included in the one hundred million-dollar ($100,000,000) limit of the total amount of loans lacking an approved source of repayment that, from time to time, the Bank and the subsidiaries thereof may collectively hold in their portfolios. Notwithstanding the prohibition in the first sentence of this Section and the one hundred million-dollar ($100,000,000) limit provided in the third sentence of this Section, the Government Development Bank is hereby authorized, in any case, to grant loans to any government entity that is unable to honor the payment of the principal of or interest on its obligations to bondholders or financial entities, other than the Government Development Bank, and to grant any type of loan to the Secretary of the Treasury, pursuant to §§ 63 et seq. of Title 13, and §§ 57 et seq. of Title 13, and any other legislation approved to authorize the Secretary of the Department of the Treasury to borrow for similar purposes.
History —Dec. 17, 2001, No. 164, § 8; Jan. 14, 2009, No. 4, § 1; June 30, 2013, No. 45, § 1, eff. July 1, 2013; renumbered as § 11 by § 7 and amended by § 4 on Feb. 13, 2014, No. 24.