P.R. Laws tit. 21, § 6754
(a) Beginning on fiscal year 2014-2015, the first municipal IVU revenues shall be deposited daily in COFIM’s Redemption Fund up to the original fixed income. During each subsequent fiscal year, the first municipal IVU revenues shall be deposited upon receipt in COFIM’s Redemption Fund or in any other special fund, including a fund under the control of the trustee as designated under the trust indentiture or other security instrument under which COFIM bonds were issued or other obligations were incurred for the purposes established in subsection (b) of § 6751 of this title, as designated by COFIM in the amounts established in § 6752 of this title.
(b) On or before August 30 of each fiscal year, the GDB, acting as fiscal agent, shall determine the “COFIM’s Deposit” applicable to the current fiscal year. An amount equal to the “COFIM’s Deposit” from the first municipal IVU revenues for such fiscal year shall be deposited in COFIM’s Redemption Fund.
(c) The Commonwealth hereby agrees and makes a commitment to any person, firm, corporation, agency, or state of the United States of America or the Commonwealth underwriting or acquiring COFIM bonds or providing sureties, sources of repayment, or liquidity for such bonds that, until said bonds and the interest thereon, regardless of their date, are paid in full and retired:
(1) It shall not limit or impair the rights and powers of Commonwealth or municipal officials to impose, maintain, charge, or collect taxes and other revenues that constitute the amounts to be deposited in COFIM’s Redemption Fund, according to the provisions of this chapter; Provided, That the foregoing shall not limit the power of the Commonwealth to amend the law in order to:
(A) Limit or restrict the nature or amount of such taxes and other revenues, or
(B) substitute similar or comparable collateral for other taxes, fees, charges, or revenues to be deposited in COFIM’s Redemption Fund if, for the following fiscal years, the revenue forecast of the Board of Directors of COFIM, after considering such limit or restriction, or of such substitute taxes, revenues, or collateral is equal to or exceeds the debt service and other fees, and any coverage requirement included in the COFIM’s bond issue authorization documents; or
(2) it shall not limit or restrict the powers hereby conferred to or the rights of COFIM to meet its obligations to bondholders until said bonds and the interest thereon, regardless of the date, are paid in full and retired. No amendment to this chapter shall impair any obligation or commitment of COFIM.
(d) If, at any time, “COFIM’s Deposit” is not sufficient to pay the principal of and interests on COFIM’s outstanding bonds, or to make any other payment with respect to other obligations incurred by COFIM, including payments under swap agreements in connection with money taken on loan or bonds issued by COFIM to pay that for which “COFIM’s Deposit” has been pledged, or in the event that COFIM’s reserve funds, if any, have been established for payment of the requirements of the debt, or if said obligations are applied to cover the deficiency in the amounts, as needed, to meet such payments, the appropriations necessary to cover such deficiencies shall be included in the Commonwealth’s budget recommended for the following fiscal year.
History —Jan. 24, 2014, No. 19, § 5.