2023 Laws of Puerto Rico › TITLE TWENTY-FOUR - Health and Sanitation (§§ 1 — 15010) › PART IX - Health Insurance (§§ 7001 — 7075) › Chapter 301 - Health Insurance Administration (§§ 7001 — 7054) › Subchapter III - Health Insurance Administration (§§ 7003 — 7014) › § 7004a - Authorization for financing

(a) The Administration is hereby authorized to incur obligations up to the principal of one hundred eighty-seven million dollars ($187,000,000) under the terms and conditions approved by the Board of Directors and the Government Development Bank, which is the fiscal agent of the Government of Puerto Rico and its instrumentalities.
(b) The moneys from the obligations authorized herein shall be deposited in a special account in the Bank and may only be used for the payment of debts with insurers and health service providers, as well as with other Administration suppliers, as determined through an agreement with the Bank. The Bank, in its role as fiscal agent, shall provide the administrative mechanisms it may deem necessary to ensure that such funds are used solely and exclusively for the purposes set forth in this section. The special account mentioned in this subsection and the funds deposited therein may not be attached, placed under receivership, frozen, encumbered, or otherwise affected by decisions, judgments, orders, or resolutions issued by the Courts of Justice or the public agencies and/or corporations of the Government of Puerto Rico during any adjudicative proceeding of an administrative or judicial nature, regardless of whether these were instituted by private persons or public institutions.
(c) The Administration is hereby authorized to pledge and constitute liens on any of its real or personal properties, whether tangible or intangible, to secure payment of the obligations authorized herein, as the same may be modified from time to time under such terms and conditions as may be deemed necessary and convenient, including, but not limited to, mortgages on real property, mortgage or collateral assignment of any lease contract, liens on deposit accounts, securities accounts, or investments of any kind, any lien on personal or real property for its fixtures, the pledging of any credit, account receivable, claim and/or cause of action, the posting of any bond, letter of credit or surety, and the pledging of any other income, asset, fee, cause of action, or revenue of the Administration.
(d) The Administration is hereby authorized to execute all such public or private instruments and any other documents as necessary for and/or pertinent to the obligations authorized herein, including public instruments and documents pertaining to any refinancing, moratorium, extension, modification, or amendment of the obligations authorized herein.
(e) The Government of Puerto Rico shall honor the payment of the obligations authorized herein, through budget appropriations made by the Legislative Assembly in the operating budgets of each fiscal year, starting in Fiscal Year 2012-2013 and ending in Fiscal Year 2023-2024. To such effect, for Fiscal Years 2012-2013 and 2013-2014, the Director of the Office of Management and Budget is hereby directed to consign the amount corresponding to the payment of interest in the operating budgets of the Government of Puerto Rico, submitted each year by the Governor of Puerto Rico to the Legislative Assembly and, as of Fiscal Year 2014-2015 and for the next nine (9) fiscal years, the sum of twenty million, six hundred sixty-six thousand, six hundred sixty-seven dollars ($20,666,667), plus any applicable interest, to amortize the obligation authorized herein and to pay the interest accrued each year. If, at any time, the budget appropriations or other income of the Administration do not suffice to pay the obligations authorized herein and the interest accrued each year, the Secretary of the Treasury shall withdraw any sums necessary to cover the deficiency in the amount required for the payment of such obligations and interest from any funds available in the General Fund of the Government of Puerto Rico, and direct that the sums thus withdrawn shall be applied to such payment and for such purpose.
(f) The Administration is hereby directed to use its own available funds to reduce the obligation authorized herein during its effective term pursuant to the terms and conditions approved by the Board of Directors and the Bank.
(g) The Executive Director shall represent the Administration in any acts and in the execution and/or delivery of all public or private instruments and documents mentioned in this section.
(h) As used in this section, the term “Bank” shall mean the Government Development Bank for Puerto Rico.
History —Sept. 7, 1993, No. 72, art. IV, added as § 2A on Nov. 23, 2010, No. 173, § 1.