P.R. Laws tit. 7, § 1335
(a) Subject to the approval of two thirds (2 / 3) of the total of the members of the Board, the Corporation is hereby authorized to borrow money from any private or public financial entity or cooperative in nature, provided said transaction is performed under terms and conditions that are consonant with and related to market conditions. Under equal conditions, preference shall be given to cooperative entities organized under the laws of the Commonwealth of Puerto Rico. The Government Development Bank and the Economic Development Bank are likewise empowered to grant loans to the Corporation under the conditions agreed among themselves, including the granting of sureties. The Secretary of the Treasury shall have the obligation to guarantee the payment of the principal and interest of the loans made or to be made by the Corporation, as well as any advance of money through a promissory note, notes, capital obligations, bonds or other debt instrument issued by the Corporation.
(b)
(1) Subject to the approval of two thirds (2 / 3) of the total of members of the Board, the Corporation may issue debt instruments or other securities with or without par value, in the series and denominations, and with the preferences and relative rights, of shares or other special, conditional, limited or restricted rights that are stated and expressed in the resolution or resolutions that provide for the issue of said instruments as approved by the Board of Directors. No instrument issued by the Corporation shall grant voting rights or participation in the assemblies of the Corporation or in the processes for the election of directors or the designation of officers of the Corporation. Instruments that impose prior conditions to the Corporation regarding decisions on the operations or the public policy of the corporation shall not be issued nor sold.
(2) The instruments issued by the corporation may be redeemable in the terms and at the prices, and may be issued with the denominations, preferences and relative rights of shares, options, or other special rights and their conditions, limitations or restrictions that are consigned in the resolution or resolutions that provide the issue of these stock and that are approved by the Board of Directors with a two thirds (2 / 3) vote of the total of its members. The instruments issued by the Corporation may be collateralized.
(3) The holders of securities of any class or series issued by the Corporation, shall be entitled to dividends or interest at the rate and under the conditions and terms that are set forth in the resolution or resolutions that provide for the issue of these shares and that are approved by the Board of Directors by a two thirds (2 / 3) vote of the total of its members. The dividends or interest accrued by the persons who acquire or hold any class of instruments issued by the Corporation shall be exempted from the payment of income tax fixed by §§ 8006 et seq. of Title 13, known as the “Puerto Rico Internal Revenue Code of 1994”, and of all types of personal property taxes.
History —Aug. 17, 2001, No. 114, § 29.