2023 Laws of Puerto Rico › TITLE TWENTY-THREE - Public Planning and Development (§§ 1 — 11273) › PART II - Economic Development (§§ 231-241 — 695i) › Chapter 33 - Port Commission of Mayagüez (§§ 551 — 568) › § 561 - Bonds—Default; receiver

(a) In the event that the Port Commission shall default in the payment of the principal of, or interest on, any of its bonds, after the same shall become due, whether it be a default in the payment of principal and interest or of interest only at maturity or upon call for redemption, and such default shall continue for a period of thirty (30) days, or in the event that the Port Commission or the Board of Commissioners, agents or employees thereof shall default in any agreement made with the bondholders, any holder or holders of the bonds (subject to any contractual limitation as to a specific percentage of such holders), or trustee therefor, shall have the right to apply in an appropriate judicial proceeding to any court of competent jurisdiction in Puerto Rico for the appointment of a receiver of the undertakings or parts thereof, the income or revenues of which are pledged to the payment of the bonds so in default, whether or not all the bonds have been declared due and payable and whether or not such holder, or trustee therefor, is seeking or has sought to enforce any other right or to exercise any remedy in connection with such bonds. Upon such application the court may appoint a receiver of such undertaking; but if the application is made by the holders of twenty-five percent (25%) in principal amount of such bonds then outstanding, or by any trustee for holders of bonds in such principal amount, then the court shall be under the obligation to appoint a receiver of such undertakings.
(b) The receiver so appointed shall forthwith, per se or by his agents and attorneys, enter into and upon and take possession of such undertakings and each and every part thereof, and may exclude the Port Commission, its officers, agents, and employees and all persons claiming under them, wholly therefrom, and shall have, hold, use, operate, manage, and control the same and each and every part thereof, and, in the name of the Port Commission or otherwise, as the receiver may deem best, shall exercise all the rights and powers of the Port Commission with respect to such undertakings as the Port Commission itself might do. Such receiver shall maintain, restore, insure, and keep insured, such undertakings and from time to time shall make all such necessary or proper repairs as such receiver may deem expedient, and shall establish, levy, maintain, and collect such rates, fees, rentals, and other charges in connection with such undertakings as such receiver may deem necessary, proper and reasonable, and shall collect and receive all income and revenues and deposit the same in a separate account and apply the income and revenues so collected and received in such manner as the court shall direct.
(c) Whenever all that is due upon the bonds, and interest thereon, and upon any other notes, bonds, or other obligations, and interest thereon, having a charge, lien, or encumbrance on the revenues of such undertakings and under any of the terms of any covenants or agreements with bondholders shall have been paid or deposited as provided therein, and all defaults in consequence of which a receiver may be appointed shall have been cured and made good, the court may, in its discretion and after such notice and public hearing as it deems reasonable and proper, direct the receiver to surrender possession of such undertakings to the Port Commission, the same right of the holders of the bonds to obtain the appointment of a receiver to exist upon any subsequent default as hereinabove provided.
(d) Such receiver shall act, in the performance of the powers hereinabove conferred upon him, under the direction and supervision of the court and shall at all times be subject to the orders and decrees of the court and may be removed thereby. Nothing herein contained shall limit or restrict the jurisdiction of the court to enter such other and further orders and decrees as such court may deem necessary or appropriate for the exercise by the receiver of any functions specifically set forth in this chapter.
(e) Any provision to the contrary in this section notwithstanding, such receiver shall have no power to sell, assign, mortgage, or otherwise dispose of any assets of whatever kind or character belonging to the Port Commission and useful for such undertakings, but the powers of any such receiver shall be limited to the operation and maintenance of such undertakings, and the collection and application of the income and revenues therefrom, and the court shall not have jurisdiction to enter any order or decree requiring or permitting said receiver to sell, mortgage, or otherwise dispose of any such assets.
History —May 18, 1959, No. 10, p. 46, § 10.