Defendants Exhibit 3 

Case:17-03283-LTS Doc#:23438-3 Filed:01/30/23 Entered:01/30/23 18:51:43 Desc:

Exhibit 3 Page 1 of 4
DEFENDANTS EXHIBIT 3

COMPARISON OF PREPA AND HTA PROVISIONS 

- 1- 

PREPA HTA 

Granting Clause in order to secure the payment of all the bonds 

at any time issued and outstanding hereunder 

and the interest and the redemption premium, if 

any, thereon according to their tenor, purport 

and effect, and in order to secure the 

performance and observance of all the 

covenants, agreements and conditions therein 

and herein contained, the Authority has 

executed and delivered this Agreement and has 

pledged and does hereby pledge to the Trustee 

the revenues of the System, subject to the 

pledge of such revenues to the payment of the 

principal of and the interest on the 1947 

Indenture Bonds (hereinafter mentioned), and 

other moneys to the extent provided in this 

Agreement as security for the payment of the 

bonds and the interest and the redemption 

premium, if any, thereon and as security for the 

satisfaction of any other obligation assumed by 

it in connection with such bonds 

None 

Section 701 (PREPA)

Section 601 (HTA) 

Until the 1947 Indenture Bonds have been paid 

or provision has been made for their payment 

and the release of the 1947 Indenture, such 

principal, interest and premium are payable 

solely from moneys in the Renewal and 

Replacement Fund and said moneys are hereby 

pledged to the payment thereof in the manner 

and to the extent hereinabove particularly 

specified. After the 1947 Indenture Bonds have 

been paid or provision has been made for their 

payment and the release of the 1947 Indenture, 

such principal, interest and premium will be 

payable solely from the Revenues and said 

Revenues are hereby pledged to the payment 

thereof in the manner and to the extent 

hereinabove particularly specified.

1968: Except as in this Resolution otherwise 

provided, the principal, interest and premiums 

are payable solely from Revenues and from any 

funds received by the Authority for that purpose 

from the Commonwealth which Revenues and 

funds are hereby pledged to the payment thereof 

in the manner and to the extent hereinabove 

particularly specified. 

1998: Except as in this Resolution otherwise 

provided, such principal, interest and premiums 

are payable solely from Revenues and other 

moneys deposited to the credit of the Revenue 

Fund and from any funds received by the 

Authority for that purpose from the 

Commonwealth, which Revenues, moneys and 

funds are hereby pledged (with such priorities 

with respect to the use and disposition of 

Revenues as are in this Resolution specified) to 

the payment thereof in the manner and to the 

extent hereinabove particularly specified. 

Forthwith upon the repeal and cancellation of 

the 1968 Resolution, all Existing Tax and Fee 

Revenues and Existing Toll Facilities Revenues 

shall be hereby pledged to the payment of the 

principal of and premium, if any, and interest on 

the bonds issued under the provisions of this 

Resolution to the same extent and with the same 

effect as the pledge of the preceding sentence. 

Case:17-03283-LTS Doc#:23438-3 Filed:01/30/23 Entered:01/30/23 18:51:43 Desc:

Exhibit 3 Page 2 of 4
DEFENDANTS EXHIBIT 3

- 2 - 

PREPA HTA 

Section 507 (PREPA) 

Section 401 (HTA) 

The moneys in the Sinking Fund shall be 

held by the Trustee in trust, and the moneys 

in the Reserve Maintenance Fund, the Selfinsurance Fund and the Capital 

Improvement Fund shall be held by the 

Authority in trust, separate and apart from 

all other funds of the Authority, and shall be 

applied as hereinafter provided with respect 

to such Funds and, pending such 

application, shall be subject to a lien and 

charge in favor of the holders of the bonds 

issued and outstanding under this 

Agreement and for the further security of 

such holders until paid out or transferred as 

herein provided 

1968: The moneys in said Funds and 

Accounts shall be held by the Fiscal Agent in 

trust and applied as hereinafter provided with 

regard to each such Fund and Account and, 

pending such application, shall be subject to a 

lien and charge in favor of the holders of the 

bonds issued and outstanding under this 

Resolution and for the further security of such 

holders until paid out or transferred as herein 

provided. 

1998: The moneys in said Funds and 

Accounts shall be held by the Fiscal Agent in 

trust and applied as hereinafter provided with 

regard to each such Fund and Account and, 

pending such application, shall be subject to a 

lien and charge in favor of the holders of the 

bonds issued and outstanding under this 

Resolution and for the further security of such 

holders until paid out or transferred as herein 

provided. 

Definition of 

“Revenues” 

Section 101 (PREPA) 

Section 101 (HTA) 

The word “Revenues” shall mean all 

moneys received by the Authority in 

connection with or as a result of its 

ownership or operation of the System, 

including the income derived by the 

Authority from the sale of electricity 

generated or distributed by the System, any 

proceeds of use and occupancy insurance on 

the System or any part thereof and income 

from investments made under the provisions 

of the 1947 Indenture and this Agreement, 

except income from the investment of 

moneys in the 1947 Construction Fund, the 

Construction Fund, the Capital 

Improvement Fund, the Subordinate 

Obligations Fund to the extent such income 

has been derived from the investment of 

moneys in such Fund to be used to pay 

Subordinate Obligations incurred to pay the 

cost of any work or properties which have 

not been included by the Authority as part 

of the System as provided in Section 516 

hereof and the Reserve Maintenance Fund 

which shall be deemed to be a part of said 

Funds, respectively. Except for the purpose 

of determining the amount of the Revenues 

in the covenant as to rates contained in 

Section 502 hereof, Revenues shall not 

include any amounts paid to the Authority 

by a SWAP party in connection with 

Variable Rate Bonds. 

1968: The word “Revenues” shall mean (a) 

all moneys received by the Authority on 

account of gasoline tax allocated to the 

Authority by Act No. 75, approved June 23, 

1965; (b) Toll Revenues; (c) the proceeds of 

any other taxes, fees or charges which the 

Legislature of Puerto Rico has allocated or 

may hereafter allocate to the Authority and 

expressly authorize the Authority to pledge to 

the payment of the principal of and interest on 

Bonds or other obligations of the Authority 

and which are pledged by the Authority to the 

payment of the principal and interest on 

Bonds or other obligations issued under the 

provisions of this Resolution; provided that 

written notice of such pledge has been 

delivered to Standard & Poor’s Corporation, 

Moody's Investors Service, Inc. and any other 

rating agency then rating the bonds; and (d) 

investment earnings on deposit to the credit of 

the funds and accounts established hereunder, 

except for the Construction Fund.

1998: The word “Revenues” shall mean all 

moneys received by the Authority on account 

of the crude oil tax allocated to the Authority 

by Act No. 34, approved July 16, 1997, as 

amended, all Existing Tax and Fee Revenues 

upon the repeal and cancellation of the 1968 

Resolution, any tolls or other charges imposed 

by the Authority for the use of any of the Toll 

Facilities other than Existing Toll Facilities 

Revenues received by the Authority prior to 

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Exhibit 3 Page 3 of 4
DEFENDANTS EXHIBIT 3

- 3 - 

PREPA HTA 

the repeal and cancellation of the 1968 

Resolution, the proceeds of any other taxes, 

fees or charges which the Legislature of 

Puerto Rico may hereafter allocate to the 

Authority and expressly authorize the 

Authority to pledge to the payment of the 

principal of and interest on bonds or other 

obligations of the Authority and which are 

pledged by the Authority to the payment of 

the principal of and interest on bonds or other 

obligations issued under the provisions of this 

Resolution, and investment earnings on 

deposits to the credit of funds and accounts 

established hereunder, except for the 

Construction Fund. 

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Exhibit 3 Page 4 of 4