P.R. Laws tit. 21, § 689
In the discretion of the Agency any bonds issued under the provisions of this chapter may be secured by a trust indenture by and between the Agency and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the Commonwealth of Puerto Rico. Such trust indenture or the resolution referred to in § 687 of this title, providing for the issuance of such bonds may provide for the pledge or assignment of all or any part of the funds of the Agency available for such purpose including, but without limitation:
(1) Payment of principal of and interest on municipal bonds or municipal notes on bond anticipation;
(2) the proceeds of the sale of any such municipal bonds or municipal notes on bond anticipation, and
(3) any moneys appropriated or transferred to the Agency by the Commonwealth.
Such trust indenture or resolution providing for the issuance of such bonds may provide for the creation and maintenance of such reserves as the Agency shall determine to be proper, and may include covenants setting forth the duties of the Agency in relation to the acquisition of any municipal bonds or municipal notes on bond anticipation, the substitution of any municipal bonds or municipal notes on bond anticipation, as security for payment of the bonds of the Agency, and the collection of principal and interest on any municipal bonds or municipal notes on bond anticipation. Such trust indenture or resolution may contain provisions respecting the custody, safeguarding and application of all moneys and securities, including municipal bonds or municipal notes on bond anticipation purchased by the Agency, and may contain such other provisions dealing with the protection, rights and remedies of the bondholders as may be reasonable and proper and not in violation of law. It shall be lawful for any bank or trust company incorporated under the laws of the Commonwealth which may act as depository of the proceeds of bonds or of any other funds or obligations received on behalf of the Agency to furnish such indemnity bonds or to pledge such securities as may be required by the Agency. Any such trust indenture or resolution may contain such other provisions as the Agency may deem reasonable and proper for the security of the bondholders. Any references in this chapter to a resolution of the Agency shall include any trust indenture authorized thereby.
History —June 30, 1972, No. 29, p. 432, § 9; June 7, 1973, No. 115, p. 467, § 4.