P.R. Laws tit. 27, § 2617
(a) Authority to assign or lien.— A partnership contract shall allow for the contractor to assign, sublease, subconcede or encumber its interests under a partnership contract, or for its stockholders, partners or members to assign, pledge or encumber their shares or interests upon the contractor. The Partnership Committee shall determine and establish in the partnership contract the conditions, if any, under which the contractor may assign, sublease, subconcede or encumber its interests.
(b) Constitution of liens by the contractor.— A partnership contract may constitute or allow for the constitution of a lien on the rights held by the contractor over the partnership contract, including but not limited to: a pledge, an assignment or any other lien on the rights under the partnership contract, on any payments pledged by the Government or the partnering government entity to the contractor by virtue of the partnership contract, on the income of the contractor over any property of the contractor or on the use, enjoyment, usufruct or other rights granted to the contractor under the contract, as well as allow for bondholders, partners or members of the contractor to assign, pledge or encumber their shares or interest in the contracting entity, all of the foregoing, to secure any financing relative to the partnership contract. Furthermore, any person that has provided financing for a partnership contract and that has secured such financing through a lien on the income or the property under a partnership contract, shall be entitled, in the event of noncompliance by the contractor or its affiliate, to foreclose such lien and to designate, with the consent of the Authority, the person that shall assume the partnership contract and such person must comply with the requirements for the proponent qualified and selected under the provisions of this chapter. The person that assumes the partnership contract shall do so subject to the terms established thereunder.
(c) Constitution of liens by the partnering government entity.— The partnering government entity may secure any of its obligations by pledging or by constituting a lien on the partnership contract and all or part of the income yielded by such partnership contract.
(d) Constitution and perfection of lien.— The constitution of liens as described in subsections (b) and (c) of this section shall be valid and binding, subject to the provisions of §§ 2001 et seq. of Title 4, known as the “Puerto Rico Notary Act”, as amended, as well as §§ 2001 et seq. of Title 30, the “Mortgage and Property Registry Act”.
(e) Agreement to assignment.— The Authority, the partnering government entity or both shall enter into such agreements with the contractor and with any third party financing the applicable partnership contract as may be reasonably necessary to provide the conditions for the agreement of the Authority, the partnering government entity or both to the assignments, subleases, subconcessions or liens executed, perfected or foreclosed pursuant to the partnership contract.
(f) Exemption from requirements for government credit assignments.— All assignments and liens provided for under this section are hereby exempted from compliance with the provisions of §§ 901 and 902 of Title 3 in connection with the transfer of rights under contracts with the Government and claims against the Government.
History —June 8, 2009, No. 29, § 18.