2023 Laws of Puerto Rico › TITLE EIGHTEEN - Education (§§ 1 — 3510-3520) › PART II - University of Puerto Rico (§§ 601 — 856b) › Chapter 49 - Financing of Construction (§§ 821 — 830) › § 824 - Trust contracts; pledges of revenues; rights of bondholders

Any or each revenue bond issue authorized under the provisions of this chapter may, in the discretion of the Council, be secured by a trust contract by and between the University and a corporate trustee, which may be any trust company or bank with the powers of a trust company within or outside the Commonwealth of Puerto Rico. The resolution authorizing the issuance of the bonds or the said trust contract may pledge all or any part of the revenues to be received by any project or facilities existing upon any of the lands of the University, any student quotas fixed and collected on any of the grounds of the University, and any other funds received at any time by the University that the Council may determine are available therefor, and may contain such provisions for the protection and exercise of the rights and remedies of the bondholders as may be reasonable and proper and not in violation of the law, including stipulations setting forth the duties of the University in relation to the acquisition or construction of such project or projects and in relation to the maintenance, repair, operation and insurance of the project or projects and any existing facilities, the establishing and revising of rentals and other charges and student quotas, the custody, protection and application of all the moneys and the employment of consulting engineers and architects in relation to said acquisition, construction or operation. Such resolution or trust contract may recite the rights and remedies of the bondholders and of the trustee, if any, and may limit the individual right of action of the bondholders. Such resolution or trust contract may contain such other provisions as in addition to the foregoing the Council may consider reasonable and proper for the security of the bondholders.
The Council may provide for the payment of the proceeds of the sale of the bonds from the revenues of any project or existing facilities or part thereof, from the proceeds of any student quotas and other funds available to such official, board or depository as the Council may designate for the custody thereof, and shall set therefor the disbursement procedure with such protection and restrictions as it may deem convenient. All expenses incurred to carry out the provisions of said resolution or trust contract may be considered part of the operation cost. All pledges made of the rentals, student quotas and other funds pursuant to the provisions of this chapter shall be valid and binding right from the time such pledges are made. All such rentals, student quotas and other funds thus pledged and hereafter received by the University shall immediately be subject to the lien of such pledges without any physical delivery thereof or additional action, and the lien of said pledges shall be valid and binding against other parties having civil claims of whatever nature for damages, contractual or of any other nature, against the University or the Council, regardless of whether said parties have been notified.
History —June 18, 1958, No. 50, p. 88, § 4.