P.R. Laws tit. 22, § 1076
In connection with any issuance of restructuring bonds, the restructuring resolution related thereto, in addition to the other matters required to be included in such restructuring resolution by this chapter and § 1054x-1 of this title, shall contain provisions, among others: (i) specifying the maximum number of restructuring bonds authorized to be issued, including parameters or limitations for such maturities, scheduled maturities, interest rates, or interest rate determination methods and other details of the restructuring bonds as the Board deems proper; (ii) a description of the approved restructuring costs to be paid through the issuance of the restructuring bonds and recovered from transition charges; (iii) specifying the qualitative or quantitative limitations on financing costs to be recovered (not to impair the payment and service capacity of the restructuring bonds in accordance with their terms); (iv) specifying the calculation methodology for the transition charges in accordance with § 1054x-1 of this title; (v) describing of the adjustment mechanism to be applied based on the methodology for allocating transition charges approved in accordance with § 1054x-1 of this title, to reconcile actual collections with projected collections on at least a semi-annual basis to ensure that the collections of transition charges are adequate to pay the principal of and interest on the associated restructuring bonds when due, pursuant to the expected amortization schedule, to fund all debt service reserve funds or accounts to the required levels and to pay when due all ongoing financing costs; (vi) describing the expected benefits for customers and the Authority from the issuance of restructuring bonds; (vii) concluding that the calculation methodology determined pursuant to clause (iv) and the adjustment mechanism described in clause (v) are practicable and ensure full and timely payment of the restructuring bonds; (viii) authorizing the creation of the restructuring property and specifying that it shall be created and vested in the Corporation upon the issuance of the restructuring bonds and addressing such other matters as may be necessary or desirable for the marketing or servicing of the restructuring bonds or the servicing of the restructuring property; (ix) authorizing the imposition, billing, and collection of transition charges to pay debt service on the restructuring bonds and other ongoing financing costs; (x) describing the restructuring property that shall be created pursuant to the restructuring resolution and vested in the Corporation upon the issuance of the restructuring bonds and that may be used to pay and serve as collateral for the payment of the restructuring bonds; (xi) authorizing the Corporation to enter into and execute one or more servicing, billing, or collection agreements with one or more servicers and other agents, and providing for the appointment of co-servicer or subservicer upon the occurrence of such events as the Corporation, being advised by its consultants, determines enhances the marketability of the restructuring bonds; (xii) authorizing the Corporation to enter into and execute one or more depository, trust, or escrow agreements with financial institutions or other persons providing for the escrowing and allocation of the collections of customer bills between the Authority and the Corporation, as the Corporation, in consultation with such advisers as it may deem appropriate, determines enhances the marketability of the restructuring bonds; (xiii) requiring the filing of such billing and collection reports relating to the transition charges as the Corporation may require from the servicer (at least monthly); (xiv) approving and authorizing the content and the manner in which a trust agreement is entered into and executed; (xv) meeting the obligations under § 1054x-1 of this title; (xvi) describing in detail such other conclusions, determinations, and authorizations as the Corporation, with the advice of its consultants, deems appropriate.
Any restructuring resolution, restructuring property, and adjustment mechanism, and all other obligations of the Corporation set forth in such restructuring resolution shall be direct, explicit, irrevocable, and unconditional upon issuance of the restructuring bonds, and legally enforceable against the Authority and the Corporation. Except for the requirements in this section and in chapter IV of this Act, the transition charges and the adjustment mechanism shall not be subject to any other provision of law, including the provisions of §§ 261--261e of Title 27, §§ 1051 et seq. of this title, known as the “Puerto Rico Energy Transformation and RELIEF Act”, or any other provision of law requiring or providing for the review (except by the Corporation, as provided below) or approval of rates by any government entity, or the holding of public hearings (except by the Commission, as provided in subsection (b) of §1067 of this title, or notice of rate changes of any government entity, including the Legislative Assembly or the Commission. The Commission nor any other government entity shall neither adopt any regulations, rules, or procedures nor take any other action that would delay or adversely affect the implementation of the adjustment mechanism or the collection of transition charge revenues. According to the provisions of § 1054x-1 of this title, and as provided in the restructuring resolution, (1) the Corporation shall serve or direct the servicer to serve notice to the Commission of the proposed adjustment to the transition charges, within not less than thirty (30) days before the date on which each proposed adjustment takes effect, indicating that (i) without foregoing such thirty (30)-day period to meet the notification requirements, the information related to the initial transition charges shall be submitted not later than three (3) business days after listing and delivering the restructuring bonds, and said initial transition charges shall take effect on the date of issue of the restructuring bonds, (2) the Commission’s review of the initial transition charges or any adjustment to the transition charges shall be limited to the verification of the mathematical accuracy of the calculation of such initial transition charges or subsequent adjustments in the transition charges resulting from the application of an adjustment mechanism (as the case may be), and (3) if the Commission determines that the initial transition charges or any adjustment to the transition charges are mathematically inaccurate, any adjustment directed by the Commission to correct said mathematical inaccuracy shall be addressed by the Corporation not later than on the following application of the adjustment mechanism. Any over or under estimation of collections resulting from such mathematical inaccuracy shall be credited to or added in the following application of the adjustment mechanism, as the case may be, but no customer shall be entitled to a refund of transition charges or the retroactive application thereof by reason of mathematical inaccuracies in such periodic adjustments. No adjustment of transition charges pursuant to the adjustment mechanism shall in any way affect the irrevocability of the restructuring resolution related thereto. The Corporation is hereby authorized to hire one or more persons to review the calculation of transition charges prepared by the servicer, as provided in § 1067 of this title. The Authority is hereby authorized and directed to provide the Corporation and the agents thereof with any information required by the Corporation and by any calculation agent to review the calculation of all such periodic adjustments.
History —Feb. 16, 2016, No. 4, § 34.