P.R. Laws tit. 23, § 5020
The fees, rents, charges and any other income derived by the Company from the project related to any issue of bonds, except that portion which may be necessary to pay the Company’s costs incurred in said project and to provide those reserves, if any, that may be provided in the trust contract securing said bonds, shall be regularly deposited in a reserve fund for the payment of debt service, as provided in the trust contract, which is hereby offered as security for the payment of the principal and interest on said bonds as they mature and the redemption or purchase price of bonds withdrawn through redemption or purchase, as provided. The guaranty shall be valid and binding from the moment it is established. The fees, rents, charges and other revenues and monies offered as surety and those received subsequently by the Company shall immediately be subject to encumbrance without need of physical delivery of the same or of any other act, and said encumbrance shall be valid and binding and shall prevail against any third party with a claim of any sort against the Company on account of damages or breach of contract or for any other reason, regardless of whether said third party has been advised of this matter or not. Neither the trust contract nor the financing contract through which a collateral agreement is formalized or through which the rights of the Company to any income are conveyed, shall need to be filed or registered in order to perfect the encumbrance thereon against any third party, except in the Company files. The use and disposition of the monies to the credit of regarding the redemption fund for the payment of debt service shall be subject to the provisions of such a trust contract. The aforesaid redemption fund for the payment of debt service shall be a fund for said bonds over which neither one nor the other shall bear any distinction or priority, unless otherwise provided in the trust contract.
History —July 10, 1992, No. 20, § 21.