P.R. Laws tit. 21, § 6026
(a) The municipalities are authorized to borrow money from the FEPEG (Spanish acronym), through obligations evidenced by notes or other instruments. These notes or instruments shall be deemed as special obligation notes or instruments under the provisions of this chapter. The procedure for their authorization shall be governed by §§ 6005, 6006 and 6009 of this title in accordance with the type of obligation. The limitation contained in § 6008 of this title notwithstanding, the notes or instruments which evidence loans made with FEPEG may mature up to a maximum of twenty (20) years after their date of issue. The municipalities shall pay the principal and the interest on these notes or instruments from funds budgeted for regular expenses that are not expressly encumbered for other purposes and/or from the product of the issue of bonds, notes or other instruments pursuant to the provisions of this chapter for refinancing said notes or instruments.
(b) The Government Bank shall establish, through regulations, everything regarding the application, granting, disbursement, payment and supervision of the loans with FEPEG, including, but without being limited to, the procedure for application, the criteria for evaluation and approval of applications and the terms and conditions of the loans to be granted.
History —July 3, 1996, No. 64, § 27, renumbered as § 29 and amended on Aug. 12, 1997, No. 75, § 29.