P.R. Laws tit. 23, § 150
(a) By authority of the Commonwealth of Puerto Rico, hereby granted, the Corporation may issue from time to time, and sell, its own bonds, and keep them outstanding.
(b) The Corporation, by resolution or resolutions to the effect, shall determine everything in relation with the date; maturity date; rate or rates of interest; denomination or denominations; series, manner; conversion privileges; medium of payment; place or places of payment; terms of redemption, with or without premium, may be declared due at such time before their normal maturity date, replacement of mutilated, destroyed, stolen or lost bonds; and all other conditions and covenants which it may deem convenient in connection with the issuance of said bonds.
(c) The bonds may be sold at public or private sale for such price or prices not lower than ninety-five percent (95%) of the par value thereof and at an interest not greater than that authorized by law, as the Board shall determine; Provided, That this limitation shall not apply to bonds which are tax-exempt in accordance with the laws of Puerto Rico and of the United States. Refunding bonds may be exchanged for outstanding bonds of the Corporation on such terms as the Board may deem to be in the best interest of the Corporation. All bonds of the Corporation shall be understood to be negotiable instruments.
(d) The bonds of the Corporation bearing the signature of the officers of the Corporation, in office on the date of the signing thereof, shall be valid and binding obligations, notwithstanding that before the delivery thereof and payment therefor any or all officers of the Corporation whose signatures or facsimile signatures appear thereon shall have ceased to be such officers of the Corporation.
(e) Temporary or interim bonds, receipts or certificates may be issued in such form and with such provisions as may be provided in such resolution or resolutions.
(f) Any resolution or resolutions authorizing any bonds may contain provisions which shall be part of the contract with the bondholders:
(1) As to the disposition of the entire gross or net revenues and present or future income of the Corporation, including the pledging of all or any part thereof to secure payment of the bonds.
(2) As to the pledging of all or any part of the income, rents or properties of the Corporation.
(3) As to the setting aside of reserves for amortization funds, and the regulation and disposition thereof.
(4) As to limitations on the purposes to which may be applied the proceeds of the sale of any issue of bonds made.
(5) As to limitations on the issuance of additional bonds.
(6) As to the procedure by which the terms of any resolution authorizing bonds, or any other contract with the bondholders, may be amended or abrogated.
(7) As to the amount of the bonds whose holders must consent thereto, and the manner in which such consent may be given.
(8) As to events of default and terms and conditions upon which any or all of the bonds should become or may be declared due before maturity, and as to the terms and conditions upon which such declaration and its consequences may be waived.
(9) As to any other acts or conditions that may be necessary or convenient for the security of the bonds, or that may tend to make the bonds more marketable.
(g) No officer or employee of the Corporation authorized to grant and who grants bonds issued by the Corporation shall be personally responsible for said bonds.
(h) The Corporation is hereby empowered to purchase with any available funds any outstanding bonds issued or assumed by the Corporation, at a price not greater than the principal amount or of the redemption price thereof, in addition to the accumulated interest.
(i) The bonds of the Corporation shall be lawful investments, and may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority or control of the Commonwealth of Puerto Rico or any officer or employees thereof.
(j) The bonds and other obligations issued by the Corporation shall not be a debt of the Commonwealth of Puerto Rico or of any of its agencies; nor shall such bonds or other obligations be payable out of any funds other than those of the Corporation.
(k) The bonds and other debentures issued by the Corporation and its subsidiaries, and the rent, interest or income deriving therefrom, shall be exempt from all kinds of taxes or imposts of the Commonwealth of Puerto Rico, its agencies and municipalities.
(l) The Commonwealth of Puerto Rico does hereby pledge to and agree with, any of its agencies, or with any agency of the government of the United States or with a state of the Union, or with any person subscribing to or acquiring bonds or other obligations of the Corporation, that it will not encumber, limit or restrict the properties, income, rent, rights or powers hereby granted to the Corporation in any manner which may be detrimental or that may lessen the ability of the Corporation to pay or withdraw said bonds or other debentures of whatever date.
(m) Bondholders in addition to the rights to which they are entitled, subject to the restrictions arising from the contract, shall be entitled to compel the Corporation, its officers, agents or employees, through mandamus, action or procedure of law or in equity, to fulfill all and each one of the terms, agreements or provisions contained in the contract of the Corporation with or for the benefit of said bondholders, and to request that there be fulfilled any of the agreements or covenants of the Corporation or duties imposed by this chapter. They may likewise, through action or procedure of law, contest any illegal act for violation of their rights by the Corporation.
History —June 23, 1971, No. 81, p. 237, § 10.