P.R. Laws tit. 21, § 4810
The special corporation may issue bonds or financial obligations for its corporate purposes without any debt limit. Such obligations shall be subject to the conditions established by the Board of Directors in the document of approval of the transaction and to those established below:
(a) All obligations shall be approved by an absolute majority of the members of the Board of Directors.
(b) Activities to be financed through the issuing of obligations shall produce revenues for the payment of principal, interest and redemption premiums of said obligations, for the payment of the operation and conservation expenses of the project financed by such issue, and to create and maintain reserves inherent to the obligations. The means or sources of income, profits or revenues, of these projects shall be reviewed from time to time to ensure that they remain self-liquidating.
(c) The income, profits or revenue generated by the projects, as well as any related assets, may be encumbered to secure the obligations.
(d) Income, profits or revenue generated by the projects shall be deposited in special accounts or trusts under prearranged warranty terms, so that the payment of the financial obligations can be made in accordance with the balances.
(e) Financial obligations may be paid on or before maturity, by acceleration.
(f) Obligations shall be issued at an effective rate of interest that shall not exceed the legal maximum in effect in the Commonwealth of Puerto Rico at the time of issuance.
History —Aug. 30, 1991, No. 81, § 17.010.