P.R. Laws tit. 12, § 1264
The fees, rents, charges and all other revenues derived by the Authority from the project, related to the bonds of any issue, except such part as may be necessary to pay the costs incurred by the Authority in said project and to provide such reserves, if any, as may be provided for in the trust agreement securing such bonds, shall be set aside regularly in a reserve fund for the payment of debt service, as may be provided in the trust agreement, which is hereby pledged as security for the payment of the principal and interest on such bonds as these become due and the redemption or purchase price of bonds withdrawn by redemption or purchase, as it has been provided.
The fees, rents, charges and other revenues and monies so pledged including those monies in any account or fund created under the trust agreement and those subsequently received by the Authority shall immediately be subject to said lien without the need of the physical delivery thereof or any other act, and said lien shall be valid and binding and shall prevail against any third party having any kind of claim for damages, breach of contract or other reason, against the Authority, the debtor or user, regardless of whether such third party has been notified or not on that matter. Neither the trust agreement nor the financing agreement by which a collateral contract is executed, or by which the Authority’s rights on any revenues are assigned, shall have to be filed or recorded in order to perfect the lien therein against any third party, except in the records of the Authority. The use and disposition of monies to the credit of the sinking fund for debt service payment or any other reserve required by the Tourist Development Fund shall be subject to the provisions of such trust agreement. Except as otherwise provided in the trust agreement, such sinking fund for debt service payment shall be a fund for all such bonds without distinction or priority of one over another.
History —June 27, 1977, No. 121, p. 310, § 13, renumbered as § 14 and amended on June 12, 1978, No. 48, p. 162, § 14; Aug. 12, 1995, No. 195, § 4.