P.R. Laws tit. 21, § 6001
The public policy of our Government and of this Legislature is to expedite the administrative and operational processes by reducing the unnecessary duplication of structures, regulations, norms and procedures, as well as those laws which hinder the efforts of the public administrations that pursue efficiency. In order to facilitate the municipal financing efforts, statutory provisions are hereby incorporated into a single law. Furthermore, the municipalities of Puerto Rico are hereby authorized to contract loans in the form of bonds and notes, as provided in this chapter. With this chapter, which shall be known as the “Puerto Rico Municipal Financing Act of 1996”, the debenture issue process is facilitated and expedited in a uniform way and updated to conform to the credit process and financing mechanisms, thus attempering this chapter to municipal reform laws. Thus is the interest of the People of Puerto Rico and the municipal administrations bolstered, in order to advance the economic and social development of the community through the needed public works and the efficient handling of municipal finances.
It is hereby declared as the public policy of the Government of Puerto Rico, that the municipalities be authorized to contract loans in advance of the basic property taxes, to contract obligations secured by the product of the income or resources derived from the municipal retail sale and use tax, and to issue general obligation bonds or notes, revenue bonds, special obligation bonds, and refinancing bonds, as provided in this chapter.
History —July 3, 1996, No. 64, § 2; Aug. 12, 1997, No. 75, § 1; July 29, 2007, No. 81, § 1.