P.R. Laws tit. 28, § 91p
(a) The Corporation is hereby empowered to issue, from time to time, its own bonds for the principal amounts which, in the opinion of the Corporation, may be necessary or adequate to pay or to provide funds to achieve any of the corporate purposes, including the payment of interest on bonds of the Corporation for the period that the Corporation may determine, the establishment of reserves to secure such bonds, to pay the cost of, refund, redeem, purchase, attend, pay or discharge any outstanding bonds of the Corporation or the bonds, debts, other obligations or preferred stock of any company whose shares are acquired by the Corporation and to pay all other expenses of the Corporation incidental to, and necessary or convenient for, the exercise of its powers and the accomplishment of its corporate purposes.
The bonds issued by the Corporation shall be secured by the good faith and credit of the Corporation and shall be payable in whole or in part from the income received by the Corporation from its operations and from the sale or lease by the Corporation of any equipment, or from any other funds available to the Corporation, as may be provided in the trust agreement of the Corporation under which the bond issue is authorized. The principal of and interest on any bonds issued by the Corporation may be secured by the pledging of all or part of said income and other funds available to the Corporation. The trust agreement securing the bonds may contain provisions which shall form part of the contract with the holders of the bonds issued thereunder, in regard to the pledging and creation of liens on the income and assets of the Corporation, to the establishment and maintenance of sinking and reserve funds, as to limitations on the purposes to which the proceeds of the bonds may be applied, to limitations relating to the issuance of additional bonds, limitations as to amending or supplementing any such trust agreement, as to the granting of rights, powers and privileges to the trustees and the imposing on them of obligations and responsibilities under the trust agreement, as to the keeping of an insurance with respect to its facilities, the rights, powers, obligations, and responsibilities, which may arise in case of nonpayment or nonperformance of any obligation under said agreement or trust, and as to any rights, powers or privileges conferred on bondholders as security of the bonds, and as to any other matter not in conflict with the provisions of this chapter which may be necessary or convenient to secure the bonds and enhance their marketability.
(b) The bonds may be authorized by resolution or resolutions of the Board and they shall specify the series, date or dates of maturity term or terms, not exceeding fifty (50) years from their respective dates of issuance, bear interest at such rate or rates not exceeding the maximum legal rate and shall be payable at the place fixed within or outside the Commonwealth; shall be in small denominations in form of bonds, either with coupons or registered; may have registration or conversion privileges, may be executed in such manner as agreed, may be payable in usual mediums of payment, may be subject to the terms of redemption established, with or without premium, may be authenticated in such manner upon compliance with such conditions and as may be provided by said resolution or resolutions. The bonds may be sold at public or private sale preferably to Puerto Rican buyers at the price or prices that the Corporation may determine and convertible bonds may be sold or exchanged for outstanding bonds of the Corporation in accordance with the terms which the Board may deem to be in the best interest of the Corporation. Notwithstanding the form and text thereof, and in the absence of an express recital on the face of the bond that the same is not negotiable, all the bonds of the Corporation, including any coupons appertaining thereto, shall have and shall be understood to have, at all times, all the qualities, properties and characteristics (including negotiability) of negotiable instruments under the laws of the Commonwealth.
(c) The proceeds of the bonds of each issue shall be applied solely to the purposes for which such bonds have been issued and shall be disbursed in the manner and under the restrictions, if any, that the Corporation may establish in the trust agreement providing for the issuance of such bonds.
(d) Except as otherwise provided in § 91v of this title, bonds may be issued under the provisions of this chapter without the consent of any department, division, commission, board, body, bureau or agency of the Commonwealth of Puerto Rico and without any other procedure or the occurrence of any condition or thing other than those procedures, conditions or things specifically required herein and by the provisions of the resolution authorizing the issuance of such bonds or the trust agreement securing the same.
(e) The bonds of the Corporation bearing the signature or facsimiles of the signatures of the officers of the Corporation in office on the date of the signing thereof, shall be valid and shall constitute binding obligations even if before the delivery and payment of such bonds, any or all of the officials whose signature or facsimile signatures appear thereon have ceased as such officers of the Corporation. The validity of the authorization and issuance of the bonds shall in no way depend on or be affected by any procedure relating to the construction or acquisition of any facility for which the bonds are issued, nor by any contract executed in relation thereto. Any trust agreement securing the bonds may provide that such bonds may contain a recital that they are issued pursuant to the provisions of this chapter, and any bond containing such recital, under authority of such trust agreement, shall be conclusively deemed to be valid and to have been issued in conformity with the provisions of this chapter. Neither the members of the Board nor any person executing the bonds shall be personally liable therefor. The Corporation is authorized to purchase any outstanding bonds issued or assumed by it, with any funds available therefor, at a price not exceeding the principal amount or the current redemption price thereof plus accrued interest.
History —July 2, 1975, No. 145, p. 433, § 17; June 3, 1976, No. 133, p. 384.