P.R. Laws tit. 5, § 981n
(a) The Company’s bonds and obligations shall be authorized by a resolution or resolutions to such effect and shall be issued according to the provisions of this chapter.
(b) They may be of such series, may bear such date or dates, may mature at such time or times not exceeding fifty (50) years from their respective dates, may bear interest at such rate or rates not exceeding six percent (6%) annually, may be in such denomination or denominations, may be in such form, either coupon or registered, may carry such registration or conversion privileges, may be executed in such manner, may be payable in such medium of payment and at such place or places, may be subject to such terms of redemption, with or without premium, may be declared or become due at such time before the maturity date thereof, may provide for the replacement of mutilated, destroyed, stolen or lost bonds, may be authenticated in such manner and upon compliance with such conditions, and may contain such other terms and covenants as such resolution or resolutions may provide.
(c) The bonds may be sold publicly or privately for the price determined by the Executive Director, which shall not be less than ninety-five percent (95%) of the par value thereof. Refunding bonds outstanding may be exchanged on such terms as the Executive Director may deem to be in the best interests of the Company.
(d) In the absence of an express provision to the contrary, all bonds or obligations of the Company shall be negotiable instruments.
(e) The bonds and any other obligations of the Company bearing the signatures of the officers of the Company 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 of the officers of the Company whose signatures or facsimile signatures appear thereon shall have ceased to be such officers of the Company.
(f) Any resolution authorizing the bonds or obligations may provide that such bonds or obligations may contain a recital that they are issued pursuant to this chapter, and any bond or obligation containing such recital under authority of any such resolution shall be conclusively deemed to be valid and to have been issued in conformity with the provisions of this chapter.
(g) Pending the execution and delivery of definitive bonds or obligations, temporary or interim bonds or obligations, receipts or certificates may be issued in such form and with such provisions as may be provided in such resolution or resolutions.
(h) Any resolution or resolutions authorizing any bonds or the trust contract securing such 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 Company, including the pledging of all or any part thereof to secure payment of the bonds.
(2) As to the rates or prices to be charged for goods or services sold or loans made by the Company, and the application, use, and disposition of the amounts that may be raised by the collection of such rates and from other receipts of the Company.
(3) As to the setting aside of reserves for amortization funds, and the regulation and disposition thereof.
(4) As to limitations on the right of the Company to restrict and regulate the use of any undertaking or property or part thereof.
(5) As to limitations on the purposes to which the proceeds of the sale of any issue of bonds or obligations then or thereafter to be issued may be applied.
(6) As to limitations on the issuance of additional bonds or obligations.
(7) As to the procedure by which the terms of any resolution authorizing bonds or obligations, or any other contract with the bondholders, may be amended or abrogated, and the amount of the bonds or obligations the holders of which must consent thereto, and the manner in which such consent may be given.
(8) As to the amount and kind of insurance to be maintained on the undertakings of the Company, and the use and disposition of insurance moneys.
(9) Covenanting against pledging all or any part of the revenues, income or property of the Company to which its right then exists or the right to which may thereafter come into existence.
(10) As to events of default and terms and conditions upon which any or all of the bonds or obligations shall 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.
(11) As to the rights, liabilities, powers, and duties arising upon the breach by the Company of any of its covenants, conditions, or obligations; and as to the appointment of a receiver in case of nonperformance by the Company.
(12) As to vesting in a trustee or trustees the right to enforce any covenants made to secure, to pay, or in relation to the bonds or obligations; as to the powers and duties of such trustee or trustees, and the limitation of liabilities thereof; and as to the terms and conditions upon which the holders of bonds or obligations or any proportion or percentage of them may enforce any covenants made under this chapter or duties imposed hereby.
(13) As to the manner of collecting the rates, fees, rentals, interest or any other charges for the services, facilities, loans or commodities of undertakings of the Company.
(14) As to any other acts and things not inconsistent with this chapter that may be necessary or convenient for the security of the bonds or obligations or as may tend to make the bonds or obligations more marketable.
(i) Neither the Administrator nor any person executing the bonds or obligations shall be liable personally on the bonds.
(j) The Company is authorized to purchase any outstanding bonds or obligations issued or assumed by it with any funds available therefor, at a price not more than the principal amount or the current redemption price thereof and the accrued interest.
History —June 21, 1966, No. 90, p. 288, § 15; Aug. 9, 1995, No. 135, § 2.