P.R. Laws tit. 24, § 3359
(a) The Center for Diabetes Research, Education and Medical Services is hereby authorized to issue at a given time, or from time to time, bonds for the purposes of this chapter. The bonds of each issue shall bear the date, come due within a term or terms not to exceed forty (40) years from their respective dates and shall accrue interest in time that shall not exceed the maximum interest rate established by law for the sale of bonds of the Government of the Commonwealth of Puerto Rico, as determined by the Center, and may be redeemed before their due date, at the option of the Center, at that price or prices and under those terms and conditions that may be determined by the Center prior to the bond issue. The Center shall determine the manner and means of executing the bonds and the place or places where the principal and the interest of the same shall be paid. When a bond or coupon bears the signature or facsimile thereof, it shall however be valid and sufficient, deemed for all purposes as if the official has remained in office until said delivery. Notwithstanding any other provision of this chapter or of the language in any bonds issued pursuant to the provisions of the same, said bonds shall be deemed to be negotiable instruments under the laws of the Government of the Commonwealth of Puerto Rico. The bonds may be issued in the form of coupons or in a manner capable of being registered, or in both ways, as determined by the Center, and it may be provided for the registration of any coupon bonds as to their principal and interest. The Center may sell said bonds in such a manner, at public or private sale, and for such a price or prices of not less than the percentage of their value at par established by law for the sale of bonds of the Government of Puerto Rico, that it determines is most convenient for the best interests of the Center. The product of every bond issue shall be exclusively used for the purpose for which said bonds have been authorized and shall be disbursed in such a manner and under such restriction, if any, that the Center may provide in the resolution authorizing the issue of said bonds or in the trust contract that secures the bonds.
The resolution providing for the bond issue and any trust contract that secures the same may contain those limitations as to the issue of additional bonds that may be determined by the Center. Prior to the preparation of the definitive bonds, the Center may issue interim receipts or transitory bonds with or without coupons, exchangeable for the definitive bonds upon termination of the preparation of the same. The Center may provide for the replacement of any bonds that may be mutilated, destroyed or lost.
(b) The bonds issued pursuant to the provisions of this chapter may, at the discretion of the Center, [be] secured by a trust contract between the Center and a corporate trustee which may be any trust company or bank with the powers of a trust company, within or outside of the Government of the Commonwealth of Puerto Rico. The resolution authorizing the bond issue or the trust contract may pledge all or any part of the credits or any other revenues of the Center and may provide for the property of the Center to be mortgaged to guarantee the payment of the principal and the interest of said bonds, and may contain those provisions for the protection and exercise of the rights and remedies of bondholders and any other provisions the Center may deem to be reasonable and proper.
(c) All bonds issued pursuant to the provisions of this chapter and the interest accrued by them shall be exempted, at all times, from the levy of any type of taxes.
History —Aug. 12, 2000, No. 166, § 10, retroactive to July 1, 2000.