P.R. Laws tit. 13, § 141b
(a) The refinancing bonds to be issued from time to time under the provisions of this chapter shall be authorized by a resolution or resolutions to be adopted by the Secretary of the Treasury and approved by the Governor. Said bonds shall be designated as “Public Improvement Refinancing Bonds of the Commonwealth of Puerto Rico, Series ____”, with a year, a letter or both inserted to identify the particular issue.
(b) The refinancing bonds whose issue is authorized under the provisions of this chapter shall be dated, shall mature on such date or dates not exceeding thirty (30) years from their date or dates, and shall bear interest at such rate or rates not exceeding the maximum rate permitted by law at the time of issuance, shall be redeemable before their maturity at the option of the Secretary of the Treasury at such times and prices as he may determine, shall be in such denominations, and in such form or forms, with interest coupons or registered or both, with such registration, conversion and reconversion privileges, shall be executed in such manner, shall be payable in such places inside or outside of the Commonwealth of Puerto Rico, shall be awarded in such manner, shall have such amortization requirements, and shall contain such other terms and conditions which shall be provided by the authorizing resolution or resolutions and approved by the Governor prior to the issuing of said refinancing bonds.
(c) The refinancing bonds authorized by this chapter may be sold from time to time at public or private sale for such price or prices which the Secretary of the Treasury may determine with the approval of the Governor to be in the best interest of the Commonwealth of Puerto Rico, but such price or prices shall never be lower than the price established by law at their time of issue.
(d) Whenever any official whose signature or facsimile thereof appears on any refinancing bond or coupon authorized by this chapter is no longer in office before the delivery of such bonds, such signature or such facsimile shall, nevertheless, be valid and sufficient, it being considered for all legal purposes as if such official had remained in office until such delivery; besides, any refinancing bond or coupon may bear the signature or facsimile of such persons who at the time said refinancing bond or coupon is executed are the officials designated to sign said bond, even though at the date of the bond or coupon such persons may not have held said office.
(e) The refinancing bonds issued pursuant to the provisions of this chapter shall be deemed to be negotiable instruments under the laws of the Commonwealth of Puerto Rico.
(f) Refinancing bonds may be issued subject to the following provisions:
(1) They may be issued on any date prior to the maturity of the outstanding bonds to be refinanced thereby;
(2) each issue of refinancing bonds may be issued in a sufficient amount to pay or to provide for the payment of the principal of the outstanding bonds to be refinanced at maturity or on redemption, any redemption premium and any interest accrued or to accrue as of the date of payment of such outstanding bonds, the costs of issuing the refinancing bonds and the expenses, if any, of paying the outstanding bonds, and
(3) no refinancing bonds shall be issued unless the Secretary of the Treasury shall have first determined that the present worth of the aggregate principal and interest on the refinancing bonds is less than the present worth of the aggregate principal and interest on the outstanding bonds to be refinanced; for the purposes of this limitation, present worth shall be computed using a discount rate equal to the yield on such refinancing bonds, and the yield shall be computed using an actuarial method based upon a three hundred and sixty (360)-day year with semiannual compounding on the prices paid to the Commonwealth of Puerto Rico by the initial purchasers of such refinancing bonds.
History —Oct. 10, 1985, No. 2, p. 848, § 3.